Badges of trade are used to determine whether an income derived is a business trading income....

 

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Badges of trade are used to determine whether an income derived is a business trading income. (a) A Sdn Bhd, a plantation company, has a land bank of 500 acres, acquired in 2008 at RM5,000 per acre. The 500 acres were reflected as a non-current asset of the company. By referring to the badges of trade, infer your opinion about land acquired by A Sdn Bhd. (10) (b) Discuss the principal tests used to determine whether sums of money received by a company are capital or revenue receipts. Badges of trade are used to determine whether an income derived is a business trading income. (a) A Sdn Bhd, a plantation company, has a land bank of 500 acres, acquired in 2008 at RM5,000 per acre. The 500 acres were reflected as a non-current asset of the company. By referring to the badges of trade, infer your opinion about land acquired by A Sdn Bhd. (10) (b) Discuss the principal tests used to determine whether sums of money received by a company are capital or revenue receipts.

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a Badges of Trade for Land Acquired by A Sdn Bhd The badges of trade refer to a set of indicators used to determine whether a transaction is a trading activity and thus subject to taxation as business ... View the full answer