Emma, a resident in Malaysia, is a popular actress in the local filming industry. She has recently been crowned as the Asian Movie Queen for the year 2021 in the Asian Film Festival. Since then, she has been receiving several attractive offers to play the lead roles in several movies from film producers. Required:

a) Give three (3) reasons why the distinction between Section 4(a) and Section 4(b) under the Income Tax Act 1967 is important to Emma as a taxpayer. (3 marks)

b) Discuss whether Emma is being employed or self-employed. Give two (2) reasons. (2 marks)