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5. Travelling expenses: RM to indicate 'nil' in your computation for every item that does not require any tax adjustment. Raymond works as a real property agent. In the year 2015 , he had planned to retire and reside in his hometown, Taiping, Perak. Before his retirement, he had purchased 5 acres of land at RM240,000 to start his durian plantation and fish ponds. In the year 2023, he was diagnosed with stage 3 colon cancer and needs money for medical treatment of his disease in overseas. He sold 3 acres of the land to his friend, Azlan for RM190,000 and the remaining balance to his brother, Ryan for RM150,000. He has never disposed of any real property previously. Required: State, and explain, concerning ANY FOUR (4) relevant badges of trade, whether the gain from the sale of the land by Raymond will be subjected to income tax. (9 marks) Fresh Frozen Sdn. Bhd. (FFSB), a frozen food distributor in Segamat, Johor was incorporated on 1 May 2019 and commenced its operations on the same day. The issued and paid-up ordinary share capital of the company at the beginning of the year is RM2.4 million and the management and control are exercised in Malaysia since its commencement. The company's statement of profit or loss for the year ended 31 December 2022 is as follows: Notes: 1. The company received compensation of RM38,200 from an insurance company due to an inventory loss. 2. Royalty of RM26,000 was paid to a non-resident company and the related withholding tax was paid to Inland Revenue Board within 30 days after the royalty was paid. - I ne company nad disposed of a treezer at KMs4,UU while the residual value of the treezer was RM19,600. 4. The employer's contribution to the Employees Provident Fund (EPF) every month is 15% of the remuneration received by the employees. The company has hired a disabled employee with an annual salary of RM36,000. Lee Furniture Sdn. Bhd. (LFSB) is a resident company in Malaysia since its registration on 1 January 2020. Its accounts are made up to 31 December annually. The following information relates to the noncurrent assets of LFSB: (i) Toyota - Harrier (new passenger car) (ii) Cutting machine (general machine) (iii) Factory building The following are the expenditures incurred in the construction of the factory building: Required: (a) State ANY THREE (3) conditions to be fulfilled by Lee Furniture Sdn. Bhd. in order to claim capital allowances. (6 marks) (b) Compute the capital allowance, industrial building allowance and balancing adjustment (if any) for all three assets for the years of assessment 2021 and 2022 . (19 marks) Green Lantern Sdn. Bhd. (GLSB) had commenced its business in 2020 and made up its accounts to 30 April annually. GLSB has submitted the estimated tax payable for the year of assessment 2023 of RM156,000 on 29 March 2022. However, the actual tax payable was RM231,000. Required: (a) Explain whether there is late submission of the estimated tax payable by GLSB for the year of assessment 2023 and its penalty (if any). (5 marks) (b) Compute the penalties (if any) for underestimation of the estimated tax payable by GLSB for the year of assessment 2023. (4 marks) (c) Explain the alternative provided by the Inland Revenue Board (IRB) to avoid the underestimation of estimated tax payable by GLSB for the year of assessment 2023. (5 marks) (d) State the type of tax return and its due date for submission for the year of assessment 2023 for GLSB. (2 marks) 5. Travelling expenses: RM to indicate 'nil' in your computation for every item that does not require any tax adjustment. Raymond works as a real property agent. In the year 2015 , he had planned to retire and reside in his hometown, Taiping, Perak. Before his retirement, he had purchased 5 acres of land at RM240,000 to start his durian plantation and fish ponds. In the year 2023, he was diagnosed with stage 3 colon cancer and needs money for medical treatment of his disease in overseas. He sold 3 acres of the land to his friend, Azlan for RM190,000 and the remaining balance to his brother, Ryan for RM150,000. He has never disposed of any real property previously. Required: State, and explain, concerning ANY FOUR (4) relevant badges of trade, whether the gain from the sale of the land by Raymond will be subjected to income tax. (9 marks) Fresh Frozen Sdn. Bhd. (FFSB), a frozen food distributor in Segamat, Johor was incorporated on 1 May 2019 and commenced its operations on the same day. The issued and paid-up ordinary share capital of the company at the beginning of the year is RM2.4 million and the management and control are exercised in Malaysia since its commencement. The company's statement of profit or loss for the year ended 31 December 2022 is as follows: Notes: 1. The company received compensation of RM38,200 from an insurance company due to an inventory loss. 2. Royalty of RM26,000 was paid to a non-resident company and the related withholding tax was paid to Inland Revenue Board within 30 days after the royalty was paid. - I ne company nad disposed of a treezer at KMs4,UU while the residual value of the treezer was RM19,600. 4. The employer's contribution to the Employees Provident Fund (EPF) every month is 15% of the remuneration received by the employees. The company has hired a disabled employee with an annual salary of RM36,000. Lee Furniture Sdn. Bhd. (LFSB) is a resident company in Malaysia since its registration on 1 January 2020. Its accounts are made up to 31 December annually. The following information relates to the noncurrent assets of LFSB: (i) Toyota - Harrier (new passenger car) (ii) Cutting machine (general machine) (iii) Factory building The following are the expenditures incurred in the construction of the factory building: Required: (a) State ANY THREE (3) conditions to be fulfilled by Lee Furniture Sdn. Bhd. in order to claim capital allowances. (6 marks) (b) Compute the capital allowance, industrial building allowance and balancing adjustment (if any) for all three assets for the years of assessment 2021 and 2022 . (19 marks) Green Lantern Sdn. Bhd. (GLSB) had commenced its business in 2020 and made up its accounts to 30 April annually. GLSB has submitted the estimated tax payable for the year of assessment 2023 of RM156,000 on 29 March 2022. However, the actual tax payable was RM231,000. Required: (a) Explain whether there is late submission of the estimated tax payable by GLSB for the year of assessment 2023 and its penalty (if any). (5 marks) (b) Compute the penalties (if any) for underestimation of the estimated tax payable by GLSB for the year of assessment 2023. (4 marks) (c) Explain the alternative provided by the Inland Revenue Board (IRB) to avoid the underestimation of estimated tax payable by GLSB for the year of assessment 2023. (5 marks) (d) State the type of tax return and its due date for submission for the year of assessment 2023 for GLSB. (2 marks)

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