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6. A client has enquired on the availability of reinvestment allowance (RA) incentive for MSB, a tax resident company has been operating its business of

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6. A client has enquired on the availability of reinvestment allowance (RA) incentive for MSB, a tax resident company has been operating its business of manufacturing cat food products in Petaling Jaya, Selangor since 2015. its financial year end is 31 December. It planned to expand its business by automating its production lines starting from 2020. Required: Discuss the reinvestment allowance (RA) incentive for M SB with effect from the year of assessment 2020. your advice should include the following matters: i. The conditions to be fulfilled by M SB to qualify for RA incentive. (2 marks) ii. The mechanism of the RA incentive. (4 marks) iii Period of incentive (4 marks) (Total: 10 marks) 6. A client has enquired on the availability of reinvestment allowance (RA) incentive for MSB, a tax resident company has been operating its business of manufacturing cat food products in Petaling Jaya, Selangor since 2015. its financial year end is 31 December. It planned to expand its business by automating its production lines starting from 2020. Required: Discuss the reinvestment allowance (RA) incentive for M SB with effect from the year of assessment 2020. your advice should include the following matters: i. The conditions to be fulfilled by M SB to qualify for RA incentive. (2 marks) ii. The mechanism of the RA incentive. (4 marks) iii Period of incentive (4 marks) (Total: 10 marks)

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