Hello I M Having Problem Here With Taxation Question This Question Paper Consist

Profit before taxation = 3,216,600


(1) Cost of sales including of:

Export credit msurance premiums of RM15, 000 paid to Teguh Insurance Berhad, a Malaysian incorporated company.

Trading inventories of RM85, 000 been written off due to some defect. Research and development expenses as follows:

Marketing research 30,000

Quality control testing 120,000

Undertaking approved in house research and development project 80,200

(2) Compensation received from one of the company’s customer due to termination of sale contract

(3) Interest income received from short term placement with financial institution.

(4) Realised gain on foreign exchange is from:

 (i) a payment received from oversea customer 13,000

(ii) payment to supplier for purchase of production machinery 5,600

(5) Entertainment expenses are as follows:

 i.    Annual general meeting expenses including of distributing of annual report 26,700

ii.    Expenses incurred to entertain potential investor 5,300

iii.    Entertaining existing suppliers and customers 32,900

(6) Interest paid for machinery purchased under hire purchase

(7) Marketing expenses include:

 i.    Participate in approved international trade fair 86,800

ii.    Advertised its products in Malaysian’s magazines and newspapers 23,000

(8) Penalty paid for late delivery of product to customers

(9) Professional fees comprise:

 i.    Consultancy fee paid to a supplier in Germany who sent two of their engineers from Germany to assists in installation of machinery. – 505000

Penalty for late payment of withho1ding tax 600′

iii.    Tax agent fees for filing of tax returns and tax computations – 15,500

iv.    Investor relationship consultancy fee 8,000

 v.    Audit fees 15,000

(10) Salaries and wages include:

(i) Annual dinner to emponees 56,800

(ii) Leave package to director 32,000 –

(iii) Staff birthday paity 28,000

(iv) Family day for staff to Sunway Lagoon 25,800

(11) Bad and doubtful debts (trade) comprise:

 (i) Specific Provision during the year 15,000 ‘

(ii) Specific Provision no longer required (12,000)

(12) Bad debt written off 15 in respect of a waiver of long overdue non trade debt from the company ‘3 related company

(13) Travelling and accommodation expenses include:

(i) Airfare and hotel accommodation for important overseas customers who were interested in the companys products. 23,000

Sales were concluded with these customers

(ii) Cost incurred by sales personnel visiting the customers 135,000

(14)Upkeep and maintenance are:

 (1) Repair and spare pans for plant and machinery 10,500

(ii) Renovation ofdamaged office toilet 28,400

(15) Loss on fixed assets written off

Written off of damaged machine with tax written down value of RM 12, 000

The machine has been used for production for 6 years 1

(l6) Other information:

(i) The capital allowances and industrial building allowance for Y/A2017

amounted to RM113,000 and 100,500 respectively.

(ii) Unabsorbed loss and capital allowance brought forward is RM12,300

and RM527,000 respectively ‘


Compute the chargeable income and income tax payable by PHSB for the year of

assessment 2017.

Note: You are required to start with the profit before taxation figure. Every item

mentioned in the notes to the accounts must be listed in your computation irrespective of whether an adjustment is necessary, Where no adjustment is required, indicate ‘Nil’

 (35 marks)

[Total: 3 5 marks]

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