In PJSB's annual general meeting on 15th May 2021, the shareholders had passed a resolution approving the appointment of Albert, Charles \& Laurence Tax Consultancy Services (ACLT) Sdn. Bhd. in replacement of the outgoing Messrs. Chai, Cheah, \& Chua, which has been the company's tax agent since 2017. ACLT will be acting as PJSB's tax agent for the next three years of assessment (YAs), effective from YA2022. PJSB closes its accounts to 31R December annually. The latest audited Statement of Comprehensive Income along with the Notes to the Accounts are presented below. Platina Jubilee Sdn. Bhd. (PJSB) Statement of Comprehensive Income For the Year Ended 31" December 2022 PART A Platina Jubilee Sdn. Bhd. (PJSB) (Registration No: 201701119xox) was incorporated in Malaysia on 5th May 2017 with an authorised ordinary share capital of RM3,000,000. Its registered head office address is in Lot 88, Air Keroh Industrial Estate, 75450 Air Keroh, Melaka. The compary is in the business of manufacturing steel pilings and rebars from metal ores and its products are mainly used in construction projects. All its activities, from daily operations to firm-wide policy formulation and implementation have been conducted from its head office. As at 1 January 2022, the company secretary's records showed that PJSB's issued and paid-up ordinary share capital was RM2,500,010. As part of its expansion exercise, PJSB had purchased a newly built factory complex at Lot 89, which is next to its current factory building, for RM987,000. The acquisition, which was fully financed by a five-year bank loan, was finalised on 11th January 2022 . The complex was made up of a 2,200 square-foot factory building, 300 square-foot building housing cafeterias, prayer rooms, rest rooms, and recreational rooms for employees, as well as a 1,000 square-foot warehouse to store inventories. As part of its financing requirement, the bank had appointed an independent valuer to appraise the complex. The valuer reported that the factory building was worth RM875,000, the employees' R\&R building RM52,000, and the warehouse RM60,000. Based on the PISB's expansion plan, 91% of the factory building was to be utilised for the production process. The administration office would occupy the balance of the factory's floor space, In this regard, the company had spent RM46,000 in cash to renovate the factory building, which involved adding additional structures in the building. PJSB also incurred a further RM4,750 to install wheelchair ramps and other relevant facilities for its disabled administrative staff. All the spendings on renovation and installation of disabled-friendly facilities were capitalised along with the factory buildings as non-current assets in the company's Statement of Financial Position for the financial year 2022. The renovation was completed at the end of January 2022. The installation process of new production machineries and equipment was subsequently completed on 21tt February 2022. The manufacturing process in the new factory complex started on 1st March 2022 at 85% capacity. Page 3 of 18 1. Sales revenue of the company consists of: 2. Costs of sales include: 3. Other business incomes are comprised of: 5. Employee-related expenses comprise of the following: 7. Factory operation expenses are made up of: 6. Marketing and advertising expenses included the following expenditures: by the secretary to attend all PJSB's directors' meetings in Melaka from Kuala Lumpur. 707.1 9. Finance costs are made up of: 10. 1/ of the amount pertained to specific provisions whereby the trade accounts with high potential to be problematic have been identified. The remaining is of general provision. 11. Bad debt expense included the following items: 4. Investment incomes are made up of the following: 8. 3. Capital allowance claimable by the PJSB- Pitzen Heavy Engineering Sdn. Bhd. partnership for YA2022 Category Capital allowance (RM'000) Plant and machinery (heavy) 345 Plant and machinery (general) 207 ICT equipment 160 Office equipment 89 Furniture and fittings 1.7 Page 14 of 18 3. Capital allowance claimable by the PJSB- Pitzen Heavy Engineering Sdn. Bhd. partnership for YA2022 Category Capital allowance (RM'000) Plant and machinery (heavy) 345 Plant and machinery (general) 207 ICT equipment 160 Office equipment 89 Furniture and fittings 1.7 Page 14 of 18 Additional Information ACLT has identified the allowances and charges applicable for PJSB in the YA2022, which are tabulated below. "excluding the non-current assets disposed of during the year. Page 13 of 18 Required: As junior tax associates at ACLT, you have been assigned to the team servicing PJSB. In your capacity, assist your Senior Tax Associate in-Charge to prepare the followings: 1. Schedule of income tax instalments for PJSB's current Year of Assessment using the format prescribed below: CP204 FORM PREPARATION SCHEDULE OF INCOME TAX INSTALMENTS FOR YA 20 Client Name: Registered Address: Company Registration No.: Income Tax Reference No:: C148907xxos Tax Residence Status: Basis Period: Year of Assessment: Form CP204 Submission Due Date: Explain the threats of potential non-compliance with regard to the submission of Form CP204 and the monthly instalment payments. You are to quote relevant applicable laws in your discussion. 3. Schedules of relevant allowances claimable by PJSB for the Year of Assessment. (9marks) Page 16 of 18 4. Tax summary to reconcile the instalments paid with the actual payable amount. Explain the results of the tax summary (i.e. how much, if any, is the balance income tax payable that PJSB must pay IRBM for YA2022? What should PJSB do now?). Explain the potential threat of penalty regarding any discrepancy between the instalment and actual tax payable amounts to the directors of PJSB. In PJSB's annual general meeting on 15th May 2021, the shareholders had passed a resolution approving the appointment of Albert, Charles \& Laurence Tax Consultancy Services (ACLT) Sdn. Bhd. in replacement of the outgoing Messrs. Chai, Cheah, \& Chua, which has been the company's tax agent since 2017. ACLT will be acting as PJSB's tax agent for the next three years of assessment (YAs), effective from YA2022. PJSB closes its accounts to 31R December annually. The latest audited Statement of Comprehensive Income along with the Notes to the Accounts are presented below. Platina Jubilee Sdn. Bhd. (PJSB) Statement of Comprehensive Income For the Year Ended 31" December 2022 PART A Platina Jubilee Sdn. Bhd. (PJSB) (Registration No: 201701119xox) was incorporated in Malaysia on 5th May 2017 with an authorised ordinary share capital of RM3,000,000. Its registered head office address is in Lot 88, Air Keroh Industrial Estate, 75450 Air Keroh, Melaka. The compary is in the business of manufacturing steel pilings and rebars from metal ores and its products are mainly used in construction projects. All its activities, from daily operations to firm-wide policy formulation and implementation have been conducted from its head office. As at 1 January 2022, the company secretary's records showed that PJSB's issued and paid-up ordinary share capital was RM2,500,010. As part of its expansion exercise, PJSB had purchased a newly built factory complex at Lot 89, which is next to its current factory building, for RM987,000. The acquisition, which was fully financed by a five-year bank loan, was finalised on 11th January 2022 . The complex was made up of a 2,200 square-foot factory building, 300 square-foot building housing cafeterias, prayer rooms, rest rooms, and recreational rooms for employees, as well as a 1,000 square-foot warehouse to store inventories. As part of its financing requirement, the bank had appointed an independent valuer to appraise the complex. The valuer reported that the factory building was worth RM875,000, the employees' R\&R building RM52,000, and the warehouse RM60,000. Based on the PISB's expansion plan, 91% of the factory building was to be utilised for the production process. The administration office would occupy the balance of the factory's floor space, In this regard, the company had spent RM46,000 in cash to renovate the factory building, which involved adding additional structures in the building. PJSB also incurred a further RM4,750 to install wheelchair ramps and other relevant facilities for its disabled administrative staff. All the spendings on renovation and installation of disabled-friendly facilities were capitalised along with the factory buildings as non-current assets in the company's Statement of Financial Position for the financial year 2022. The renovation was completed at the end of January 2022. The installation process of new production machineries and equipment was subsequently completed on 21tt February 2022. The manufacturing process in the new factory complex started on 1st March 2022 at 85% capacity. Page 3 of 18 1. Sales revenue of the company consists of: 2. Costs of sales include: 3. Other business incomes are comprised of: 5. Employee-related expenses comprise of the following: 7. Factory operation expenses are made up of: 6. Marketing and advertising expenses included the following expenditures: by the secretary to attend all PJSB's directors' meetings in Melaka from Kuala Lumpur. 707.1 9. Finance costs are made up of: 10. 1/ of the amount pertained to specific provisions whereby the trade accounts with high potential to be problematic have been identified. The remaining is of general provision. 11. Bad debt expense included the following items: 4. Investment incomes are made up of the following: 8. 3. Capital allowance claimable by the PJSB- Pitzen Heavy Engineering Sdn. Bhd. partnership for YA2022 Category Capital allowance (RM'000) Plant and machinery (heavy) 345 Plant and machinery (general) 207 ICT equipment 160 Office equipment 89 Furniture and fittings 1.7 Page 14 of 18 3. Capital allowance claimable by the PJSB- Pitzen Heavy Engineering Sdn. Bhd. partnership for YA2022 Category Capital allowance (RM'000) Plant and machinery (heavy) 345 Plant and machinery (general) 207 ICT equipment 160 Office equipment 89 Furniture and fittings 1.7 Page 14 of 18 Additional Information ACLT has identified the allowances and charges applicable for PJSB in the YA2022, which are tabulated below. "excluding the non-current assets disposed of during the year. Page 13 of 18 Required: As junior tax associates at ACLT, you have been assigned to the team servicing PJSB. In your capacity, assist your Senior Tax Associate in-Charge to prepare the followings: 1. Schedule of income tax instalments for PJSB's current Year of Assessment using the format prescribed below: CP204 FORM PREPARATION SCHEDULE OF INCOME TAX INSTALMENTS FOR YA 20 Client Name: Registered Address: Company Registration No.: Income Tax Reference No:: C148907xxos Tax Residence Status: Basis Period: Year of Assessment: Form CP204 Submission Due Date: Explain the threats of potential non-compliance with regard to the submission of Form CP204 and the monthly instalment payments. You are to quote relevant applicable laws in your discussion. 3. Schedules of relevant allowances claimable by PJSB for the Year of Assessment. (9marks) Page 16 of 18 4. Tax summary to reconcile the instalments paid with the actual payable amount. Explain the results of the tax summary (i.e. how much, if any, is the balance income tax payable that PJSB must pay IRBM for YA2022? What should PJSB do now?). Explain the potential threat of penalty regarding any discrepancy between the instalment and actual tax payable amounts to the directors of PJSB