Tutorial 10: Unit Trusts (b) The tax payable by Gold Dust Fund

Question 1 Gold Dust Fund

Gold Dust Fund Tax computation for the year of assessment 20
Computation of statutory rental income for the year of assessment 2016 RM Section 4 (c )
Rental income 55,000 Divident income (single tier)
Less: Expenses Interest (bonds issued by Bank Negara Malays
Rates and assessments on properties -15,000 (Exemption under para 35, Sch 6)
Adjusted / Statutory rental income 40,000 Interest income from Maybank**
(a) The fraction of permitted expenses UT IHC (Exemption under para 35A, Sch 6)
Permitted expenses Section 4 (d)
Fund management expenses (Remuneration) 13,000 Section 4 (d) - Rental income 55,000 Statutory of rental income
Rates and assessments on properties NIL Gross income (B) 55,000 Aggregate income (AI)
Directors' remuneration NIL Less: Fraction of permitted expenses
Employees' salaries NIL Section 4 (C ) A x / 43,500 x 55,000/
Accounting and secretarial fee 10,000 Dividend income (single tier) 18,000 (4 ((4 191,000))
5,000 Interest (bonds issued by Bank Negara Malaysia) 15,000
Audit fee ) OR
Managers' remuneration 8,000 Interest income from Maybank 25,000 10% of A 10% X
Trustees' remuneration(not deductible) NIL Whichever is the HIGHER
Printing and stationery 1,500 Gain on sale of quoted shares 78,000 Approved donation (restricted to 7% of AI)
Food and beverage for employees NIL (C ) 191,000 7% X
Rental and maintenance fees (for office) NIL Total / Chargeable income
Share registration expenses 6,000 Tax payable
Depreciation NIL Tax on 32,850 X
Approved donation NIL
(A) 43,500

Note:
* Exemption on interest or discount income (para 35, Sch 6)
In order to promote investment in private debt securities and bonds, interest or discount paid or credited to unit trusts in respect of the
following will be tax exempt:
YA 2006 and subsequent Yas
(a) securities or bonds issued or guaranteed by the Government;
(b) debentures, other than convertible loan stock, approved by the Securities Commission;
(c ) Bon Simpanan Malaysia issued by Bank Negara Malaysia.

** Exemption on interest income from financial institution (para 35A, Sch 6)

W.e.f YA 1999, interest income derived from Malaysia by a unit trust and paid or credited by bank or financial institution licensed under
the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983 would be exempted.
e by Gold Dust Fund

the year of assessment 2016

RM RM RM
Exempted
ed by Bank Negara Malaysia)*
ara 35, Sch 6) Exempted
m Maybank**
ara 35A, Sch 6) Exempted

40,000
40,000
ermitted expenses
0 x 55,000/
191,000)) 3,132

43,500 4,350
4,350
(restricted to 7% of AI)
40,000 2,800 -7,150
32,850

0.24 7,884