MALAYSIAN TAX

Damien is an interior designer by profession and has great enthusiasm for cars. While he was attending an auction conducted by a bank in the year 2017 to seek a house as his home, he saw a confiscated car that was auctioned by the bank. He bid for the car and was successful, as a hobby, he later modified and improved the car. During the year 2020, he was having financial difficulties and decided to dispose of the car to obtain some cash, surprisingly the car was sold at a profit. This was the only transaction of purchase and sale of car he has ever made. Required: Discuss, from the perspective of the badges of trade, whether profit from the sale of the car is liable to income tax. (9 marks)