Marina Industries (M) Sdn. Bhd. (MISB) is incorporated in Malaysia on 7th of May 2010 with an authorised share capital of RM5,000,000. Its registered head office address is in Lot 10 , Jalan Industry 1/1, Industrial Area Phase 2, 41200 Shah Alam, Selangor. On its commencement day, the company secretary of MISB recorded paid-up capital of RM2,750,000. MISB is in the business of manufacturing environmental-friendly agriculture products for local and overseas markets. The company purchased a factory complex for its production in Industrial Area Phase 2, Shah Alam for RM1,200,000 by way of bank loan with the acquisition being finalised on 13th September 2010 . The complex was made of a 8,500 square-foot factory building, a 600 squarefoot of the building for cafeteria, prayer room and rest rooms for employees (R\&R), a 500 squarefoot of a warehouse to store inventories and a 400 square-feet of office and showroom. A certified valuer attached to the bank appraised the factory building at RM800,000, the employees' R&R at RM160,000, the warehouse at RM140,000 and the office of RM100,000. MISB has appointed Khoo \& Khairul Tax Consultants (Malaysia) as its tax agent beginning for the year of assessment 2021. The contract between these parties was signed and certified on 11 th November 2021 in Khoo \& Khairul Tax Consultants' office in Klang, Selangor. The tax consultants had duly advised the directors of MISB that the estimated income tax payable for the company was to be at RM520,000 for the year of assessment 2022 . MISB closes its accounts to 31 st December annually. The Statement of Comprehensive Income along with the Notes to the Accounts prepared by the company's accounts manager are as follows: Marina Industries (M) Sdn Bhd Statement of Comprehensive Income for the year ended 31 December 2022 \begin{tabular}{lcrr} Finance costs & 8 & 126,000 & \\ Legal \& professional fees & 9 & 49,623 & \\ Provision for doubtful debts & 10 & 41,062 & \\ Donations & 11 & 23,791 & \\ Research and development & 12 & 112,500 & \\ Entertainment expense & 13 & 250,000 & \\ Other expenses & & 130,039 & 2,154,915 \\ \cline { 2 - 3 } before tax & & 2.562,000 \end{tabular} Less: Tax expense 1,947,120614,880 Notes to the accounts: 1. The amount includes RM2,500,610 of sales made to the European markets. 2. Cost of sales include a) Write off raw material in storage of RM10,197 b) Depreciation of production machineries and equipment of RM120,000 c) A loss of RM6,800 which is yet to be realised, on raw material purchase from Indonesia. 3. Interest income are made up of: a) Interest charged on trade debtors who exceeded their credit terms of RM5,435 b) Interest received from fixed deposit accounts in FMD Bank, Singapore of RM4,000. c) Interest received from Hola Sdn, Bhd. for the loan it borrowed from MISB in May 2021 of RM2,000. 4. The foreign exchange gain represents realised gain on trade payables paid on 26th December 2022. 5. Employee-related expenses include of the following costs: a) Employees remuneration for the year of RM850,000. This remuneration includes gross salary of RM1,000 per month paid to a full-time senior clerk, who is sixty-one years Malaysian resident. b) Contribution to the Employees' Provident Fund during the year of RM93,500. c) Corporate annual dinner for the directors, management and entire staffs held on 21st December 2022 of RM100,000. d) Medical and dental benefits for employees of RM156,500 6. Marketing expense include: a) Trademark registration fees of RM3,900 b) Flyers to promote company's product of RM1,500 7. Travelling and vehicle expense include: a) Fuel, parking and tolls for business of RM58,000 b) Repairs and maintenance of business vehicles, factory machines and equipment of RM87,000 c) Annual fire and flood insurance premium for factory complex of RM20,000 d) Yearly premium on the keyman insurance policy for MISB's CEO. The insurance policy states that it's a term-life policy for five years of RM5,000. 8. Finance costs include interest for the loan repayment of the acquisition of the factory complex of RM66,000 and lease rental payments for 2 lorries used to transport finished goods of RM60,000. 9. Legal and professional fees include: a) Fees charged by the company's secretary during the financial year 2022 of RM25,000 b) Payment made Khoo \& Khairul Tax Consultants for tax consultation services of RM9.800 c) Statutory audit fee for the year of RM4,392. 10. Provision for doubtful debts consists of: a) Specific provision for doubtful debts of RM11,000 b) General provision for doubtful debts of RM20,000 c) Bad debts written of RM10,062 11. Donations consists of cash donations made to approved institutions in Malacca of RM5,000 and donations of agriculture products to 50 farmers in Pendang, Kedah of RM18,791. 12. The research and development were conducted after obtaining approval from the Ministry of Communication and Information Technology of Malaysia to embark on green technology. 13. Entertainment expense include: a) Staffs family day of RM30,200. b) Entertaining suppliers of RM21,700 c) Gift vouchers to customers during launching of new company's products RM28,800 d) Gifts of umbrella with company's logo to visitors at Halal Exhibition 2023 of RM13,000 e) Purchase of water dispense for office pantry of RM7,000. Additional information: For the year of assessment 2022, MISB has an unabsorbed business loss brought forward from previous year of RM18,900 and unabsorbed capital allowance brought forward from previous year of RM25,000. Other details of MISB's qualifying expenditure for the year ended 31 December 2022 are as follows: Additional information: For the year of assessment 2022, MISB has an unabsorbed business loss brought forward from previous year of RM18,900 and unabsorbed capital allowance brought forward from previous year of RM25,000. Other details of MISB's qualifying expenditure for the year ended 31 December 2022 are as follows: On 2 January 2021, the company purchased new multi-purpose vehicle under hire purchase agreement. The vehicle was registered as commercial vehicle. The cash price of the vehicle was RM85,000. A deposit of RM7,000 was paid with monthly principal instalment of RM1,625 (without interest) for 48 months. The instalment payment started a month after the purchase. On 3nd April 2022, the company disposed part of its office equipment at disposal price of RM21,000. The assets were acquired at the cost of RM34,620 and the residual expenditure of the assets at the end of basis period 2021 was RM17,310. i) Prepare the schedule of income tax instalments for MISB's current year of assessment 2022. ii) Compute income tax payable of MISB for the year of assessment 2022. Show all the workings. Note: Indicate 'Nil' for any item referred to in the question for which no adjusting entry required to be made in the tax computation. iii) Download Form C (sample copy/refernce copy) for 2022 from the Inland Revenue website. Complete Basic Particulars, Part A until Part C only (whichever is relevant) of Form C using the answersin (ii) above. iv) Tax summary to reconcile the instalments paid with the actual payable amount. Explain the potential threat of penalty to the directors of MISB. v) MISB received a notice from Inland Revenue Board of Malaysia (IRBM) of tax audit that will be conducted in July 2023. Explain to MISB the tax audit and identify possible documents the IRBM may require for the company to submit