2. (a) Botty John, who is not resident in Malaysia, is the sales and marketing representative for John Publications Limited, a United Kingdom resident company. John Publications Limited is owned and controlled by Botty John and his brother, Patty John, who has not so far been actively involved with the company. John Publications Limited does not have a permanent establishment in Malaysia. Patty John is about to retire from his present employment in the United Kingdom and intends to relocate from the United Kingdom to live in Malaysia in his retirement. Botty John sees this as an opportunity to get some help in his sales and marketing activities in Malaysia. Thus, he appoints Patty John as a director and grant him with the authority to conclude contracts on behalf of John Publications Limited, in Malaysia. Required: Explain if an action to appoint Patty John as a director may result in Bright Publications Limited being deemed to have a permanent establishment in Malaysia. (5 marks) (b) Fly Bhd., a Malaysian resident has been operating in air transportation industry for several years. Apart from Malaysian business income, the company also received income from domestic and foreign investments. The information on the company's income for year of assessment 2021 is as follows: Income from Malaysia: Adjusted business income RM 7,510,000 Unabsorbed losses from 2020 222,000 Dividend from Schati, Cooperative Income from 169,000 Korea: Dividend Rental Income from Thailand: Interest from fixed deposit Rental 2 220,000 98,000 300,000 640,000 Additional information: (i) Malaysia has a double taxation agreement with Korea and Thailand. (ii) The foreign income was fully remitted. (iii) Tax paid on the income from Korea and Thailand was RM47,700 and RM188,000 respectively. (iv) Fly Bhd. made donation to Ministry of Tourism, Arts and Culture amounting RM25,000 on 31 January 2021. Required: Calculate the tax liability for Fly Bbd for the year of assessment 2021. (9 marks)