Hi sir the question is as per attached. Its a malaysian tax question class homework.

ACC60704/BAAF2334 MALAYSIAN TAXATION TUTORIAL 11 COMPANY TAXATION QUESTION 1 Duit Rite Sdn Bhd was incorporated on 1 October 2000. Its principal activities are printing and publishing books and magazines. The company's Income Statement for the year ended 31 December 2015 is as follows: Duit Rite Sdn Bhd Income Statement for the year ended 31 December 2015 Note Sales Less: Cost of sales Gross Profit RM'000 1 Add: Other income Less: Staff remuneration Directors' remuneration Freight and insurance Interest cost Donations and publicity Utilities Professional and subscription fees Training and research Entertainment Foreign exchange loss Provision for doubtful debts Miscellaneous expenses Profit before taxation 2 3 4 5 6 7 8 9 10 11 12 13 RM'000 5,900 2,860 3,040 225 1,910 280 165 85 60 65 85 75 160 80 150 45 3,160 105 Notes: 1. Cost of sales include: RM'000 390 84 36 Depreciation of fixed assets Cash stolen from petty cash Damaged books written-off 2. Other income comprises: RM'000 37 188 225 Gain from sale of fixed assets Gain from disposal of quoted shares 1 3. Staff remuneration comprise of: Medical expenses of staff and family Salaries Bonus Employee Provident Fund (EPF) 4. RM'000 45 1,250 300 315 1,910 Directors' remuneration: Directors' fees Four local leave passages for the managing director Entertainment allowance RM'000 223 32 25 280 5. Freight and insurance include an insurance amounting to RM5,000 paid to Safety Insurance Bhd, a company incorporated in Malaysia for insuring paper imported from Thailand. 6. Interest cost includes an interest subsidy of RM15,000 paid by the company in relation to housing loans taken by the employees from a local bank. 7. Donations and publicity comprise of: Advertisement - souvenir programmes and magazines (both with company logo) Cash donations to an approved institution Donation of five (5) computers to schools 8. RM'000 2 15 18 15 35 85 Training and research includes: Quality control expenses and routine product testing Cash contribution to an approved research institution 10. 20 10 60 Professional and subscription fees comprise of: Subscription to trade associations Audit and tax fees Registration of trademark Legal fees for obtaining bank overdraft facilities Legal fees on recovery of trade debts 9. RM'000 30 RM'000 18 10 Entertainment comprises of: Staff annual dinner Lunch for existing clients Entertainment allowances Staff annual vacation to Genting Highlands 2 RM'000 37 48 50 25 160 11. Foreign exchange loss: Foreign exchange gain on receipt of trade debts Foreign exchange loss on purchase of machinery Foreign exchange loss arising from translation of debts owing to foreign suppliers at year end 12. 84 80 Provision for doubtful debts: RM'000 29 100 21 150 Specific provision General provision Bad debts written-off 13. RM'000 (30) 26 Miscellaneous expenses include an amount of RM20,000 paid to Clean Printers Ltd, Australia for a professional advice on a new printing process. The withholding tax on such payment was not deducted. Additional information: Duit Rite Sdn Bhd has unabsorbed business losses and capital allowances brought forward from the year of assessment 2014 of RM86,000 and RM161,000 respectively. The capital allowances claimed for the year of assessment 2015 is RM182,000. REQUIRED: Compute the company's tax liability for the year of assessment 2015, showing all relevant tax adjustments. Note that all records and receipts are available. 3 QUESTION 2 Hi-Q Products Sdn Bhd is a manufacturing company. The company is resident in Malaysia since its incorporation. The company prepares its accounts to September 30 annually. The company's income statement for the year ended 30 September 2015 is as follows: Hi-Q Products Sdn Bhd Income Statement for the year ended 30 September 2015 Note RM'000 RM'000 1 30,000 Sales Less: Cost of sales Opening stock Cost of goods manufactured 2 Closing stock Gross profit Less: Administrative expenses Salaries and allowances Legal and professional expenses Insurance, maintenance and utilities Depreciation General expenses 3 4 5 6 Less: Selling expenses Salaries and commissions Advertising, promotions and entertainment Travelling expenses 7 8 Less: Financial expenses Foreign exchange differences Interest cost 9 10 Add: Other income Dividend income Interest income Loss on sale of fixed assets Profit before taxation Less: Provisions for taxes Profit after tax 11 12 4 6,000 15,000 21,000 9,000 12,000 18,000 3,968 175 100 155 252 4,650 4,800 2,000 200 7,000 1,800 600 2,400 400 180 (30) 14,050 3,950 550 4,500 1,260 3,240 Notes 1. Local sales constitute 60% of total sales. The gross profit in relation to local sales is RM11,700,000 whilst export sales generated a gross profit of RM6,300,000. 2. Cost of goods manufactured includes: i. Provision for stock obsolescence RM500,000 ii. A royalty due to a British company, calculated at the rate of 1% of sales. The relevant withholding tax has been paid to the Inland Revenue Board. iii. Research and development expenses: Quality control and testing of products Salary cost of research personnel for an approved research Raw materials used in an approved research Transportation cost of materials used in an approved research RM'000 25 300 250 40 615 Application for approved research was made and approval was given for all qualifying expenditure. 3. Salaries and allowances comprise: RM'000 3,000 200 618 150 3,968 The rate of EPF contribution and basis of bonus entitlement are the same for all employees within the administration department. Salaries Bonus EPF Provision for retirement gratuity 4. Legal and professional fees comprise: Audit and taxation fees Legal fees on preparing loan agreement Legal fees incurred on trade debt recovery Legal fees incurred in preparing tenders for export sales of brand new local product RM'000 60 55 20 40 175 5. The insurance, maintenance and utilities include RM40,000 fire insurance premium for insuring the company's factory building for the calendar year ended 31 December 2015. 6. General expenses include: Entrance fee paid to the Electrical Products Trade Association An amount of cash loss due to negligence of a cashier Cash donations to an approved institutions 5 RM'000 8 10 40 58 7. Advertising, promotions and entertainment include: Cost of maintaining sales office in Pakistan Family day expenses for company employees Participation in approved trade fairs Entertainment for potential clients Staff annual dinner RM'000 800 100 30 70 140 8. Traveling expenses include one overseas leave passage for the research director costing RM25,000. 9. Foreign exchange differences comprise of: Loss arising from the translation of the loan at financial year-end Loss arising from payment to foreign supplier of plant and machinery Loss arising for payment to foreign supplier of raw materials RM'000 600 300 900 1,800 10. Interest cost includes interest expenses on a loan of RM4,000,000 taken from a foreign bank on 1 October 2014. Sixty-percent (60%) of the loan was used to finance the company's investment in Oak Furniture Ltd, a Borneo company whilst the balance of forty-percent (40%) was used to finance the company's working capital. The loan carries an interest rate of 10% per annum. Under the terms of the loan agreement, there is no capital repayment during the first three years but interest payments are to be made at the end of each financial year. 11. Dividend income represents dividend income received from Oak Furniture Ltd. 12. Interest income comprises: Fixed deposit interest from a licensed bank in Malaysia Interest from a licensed offshore bank in Labuan Interest charged for late payment of trade debts RM'000 60 40 80 Additional information: i. The balances in the provision for retirement gratuity account as at 30 September 2015 and 30 September 2014 are RM530,000 and RM650,000 respectively. ii. The company has unabsorbed business losses brought forward from the year of assessment 2014 of RM300,000. iii. The capital allowances and balancing allowances claims for the year of assessment 2015 are RM200,000 and RM50,000 respectively. REQUIRED: Compute the company's tax liability for the year of assessment 2015, showing all relevant tax adjustments. Note that all relevant records and receipts are available. 6