Gross salary Bonus Wages to a staff aged 64 years old 18,000 1,500 14,400 10. RM 4,100 5. Other expenses include: Sponsoring food and beverages for a golf tournament that was opened to members of UUM Golf Club only Donation of Personal Protective Equipment (PPE) for hospitals (receipts with hospitals' stamps are attached) Traffic offences by the company's staff RM 8,700 9,000 7.000 11.000 4,000 100.000 1.500 Additional information: : 1 Coronano Herbs Sdo Bhd. Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 September 2020 Note RM RM Sales 2,800,000 1 Less: Cost of sales 1 (1.270,000) Gross profit 1,630.000 Dividend income 2 127,000 Other income 3 83.300 1,740.300 Less: Expenses Salaries and wages 4 313,000 Legal and professional fees 5 44 200 Depreciation of property, plaot and machinery 120,000 Entertainment expenses 6 70.000 Repair and maintenance 7 39.900 Provision for bad debts (general) 28.000 Research and development expenditure 8 65,000 Selling and distribution expenses 9 64,000 Other expenses 10 28.800 (772.900) Profit before tax 967,400 ii 6. Legal and professional fees include: Audit fees Secretarial fees Income tax filing Income tax planning Renewal of tenancy agreement for the rented shop lot in Mergong Entertainment expenses include: A dinner at to entertain suppliers (Some of the company's employees were also present) Provision of food and drinks during launching of a new product Repair and maintenance include: Renovation of the business premise (expenses incurred in June 2020) Installation of new five units of air-conditioners that is more energy efficient for business premise RM 50.000 Balancing charge Capital allowances for the year (excluding the new air-conditioners) Business loss brought forward Payment of business zakat in December 2019 RM 80.000 40.000 60.000 50.000 iv. 16.000 7. REQUIRED: RM 25,000 1.500/unit A Using Microsoft Excel your group is required to calculate the tax liability for COTrang Herbs Sdo Bhd for the year of assessment 2020. B. Suggest at least FIVE (5) tax planning strategies on how the company could reduce its tax liability, 8. Notes to the accounts: 1. 9. Cost of sales include: Withdrawal of company's products as a hamper gift to an agent who was admitted to a hospital. The withdrawal was recorded at cost of RM800 and the selling price is RM1,800.00 Research and development (R&D) expenditure is related to in-house R&D which comprise of researchers' salaries, travelling allowance and rental of R&D equipment. An application for R&D project approval has been submitted to the Inland Revenue Board of Malaysia but the result is still pending. Selling and distribution expenses include: RM Social media advertisement cost to advertise a congratulatory message to Kedah Dewulaman football team on winning Piala TM. This is also to promote the company's name and its health and 18.000 beauty products range. The company's logo and products were displayed in the advertisement. 2. Dividend income received from: Investment in a local public listed company Investment in a Brunei company, which was remitted to Malaysia RM 50,000 77.000 3. Other incomes comprise of Gross rental income from a shop lot in Mergong Gain on disposal of a company's car RM 48.000 35.300 A treasure hunt contest expenditure. The contest was held to celebrate the company's first birthday on 1 March 2020 and was opened to the public. Costs involved: T-shirts with the company's logo Cash prize to the winners of the contest Free gifts to customers for purchases above RM500 Cost of developing company's website to enable e-commerce 3,000 5,000 4. RM 5,000 28.000 Salaries and wages include: Payment to company's managing director as follows: Gross salary EPF contribution One free local leave passage to Labuan Payment to a disabled employee as follows: 60.000 12,000 4,500 5 Gross salary Bonus Wages to a staff aged 64 years old 18,000 1,500 14,400 10. RM 4,100 5. Other expenses include: Sponsoring food and beverages for a golf tournament that was opened to members of UUM Golf Club only Donation of Personal Protective Equipment (PPE) for hospitals (receipts with hospitals' stamps are attached) Traffic offences by the company's staff RM 8,700 9,000 7.000 11.000 4,000 100.000 1.500 Additional information: : 1 Coronano Herbs Sdo Bhd. Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 September 2020 Note RM RM Sales 2,800,000 1 Less: Cost of sales 1 (1.270,000) Gross profit 1,630.000 Dividend income 2 127,000 Other income 3 83.300 1,740.300 Less: Expenses Salaries and wages 4 313,000 Legal and professional fees 5 44 200 Depreciation of property, plaot and machinery 120,000 Entertainment expenses 6 70.000 Repair and maintenance 7 39.900 Provision for bad debts (general) 28.000 Research and development expenditure 8 65,000 Selling and distribution expenses 9 64,000 Other expenses 10 28.800 (772.900) Profit before tax 967,400 ii 6. Legal and professional fees include: Audit fees Secretarial fees Income tax filing Income tax planning Renewal of tenancy agreement for the rented shop lot in Mergong Entertainment expenses include: A dinner at to entertain suppliers (Some of the company's employees were also present) Provision of food and drinks during launching of a new product Repair and maintenance include: Renovation of the business premise (expenses incurred in June 2020) Installation of new five units of air-conditioners that is more energy efficient for business premise RM 50.000 Balancing charge Capital allowances for the year (excluding the new air-conditioners) Business loss brought forward Payment of business zakat in December 2019 RM 80.000 40.000 60.000 50.000 iv. 16.000 7. REQUIRED: RM 25,000 1.500/unit A Using Microsoft Excel your group is required to calculate the tax liability for COTrang Herbs Sdo Bhd for the year of assessment 2020. B. Suggest at least FIVE (5) tax planning strategies on how the company could reduce its tax liability, 8. Notes to the accounts: 1. 9. Cost of sales include: Withdrawal of company's products as a hamper gift to an agent who was admitted to a hospital. The withdrawal was recorded at cost of RM800 and the selling price is RM1,800.00 Research and development (R&D) expenditure is related to in-house R&D which comprise of researchers' salaries, travelling allowance and rental of R&D equipment. An application for R&D project approval has been submitted to the Inland Revenue Board of Malaysia but the result is still pending. Selling and distribution expenses include: RM Social media advertisement cost to advertise a congratulatory message to Kedah Dewulaman football team on winning Piala TM. This is also to promote the company's name and its health and 18.000 beauty products range. The company's logo and products were displayed in the advertisement. 2. Dividend income received from: Investment in a local public listed company Investment in a Brunei company, which was remitted to Malaysia RM 50,000 77.000 3. Other incomes comprise of Gross rental income from a shop lot in Mergong Gain on disposal of a company's car RM 48.000 35.300 A treasure hunt contest expenditure. The contest was held to celebrate the company's first birthday on 1 March 2020 and was opened to the public. Costs involved: T-shirts with the company's logo Cash prize to the winners of the contest Free gifts to customers for purchases above RM500 Cost of developing company's website to enable e-commerce 3,000 5,000 4. RM 5,000 28.000 Salaries and wages include: Payment to company's managing director as follows: Gross salary EPF contribution One free local leave passage to Labuan Payment to a disabled employee as follows: 60.000 12,000 4,500 5