ABC sole proprietor business found that the marketing manager had

misappropriated RM100,000 for the year ended 31 December 2018. The company has taken the relevant actions and the sum was allowed as a tax deduction for

YA2018. The company filed an insurance claim where the insurance company

agreed to pay for the claim of RM50,000 on 23 December 2019. The amount was paid by the insurance company on 4 January 2020.

Required:

a) State whether the sum claimed by the company is taxable

b) If it is taxable, which year of assessment would it be treated as a taxable

receipt?