Please read the scenario carefully. Identify the main concern of the directors and top management. Then, as the tax agent, explain to them the process involved. Explain your responsibilities and what will happen if you do not follow the laws. You need to include the relevant sections, public rulings (if any), as well as the 2 Budget 2022 components in your argument. Finally, state whether you agree with the directors' and top management's opinion.

It has been a tradition in Sarah & Loring Tax Consultants to conduct a meeting with its clients after the submission of their tax returns to brief them on their tax positions and discuss any potential tax impacts and engagement issues that they may face in the coming YA. A similar meeting has been called with the directors and top management of Coronation Colours Sdn. Bhd. (CCSB) with Ms. Sarah, Mr. Loring, and your group. A questionnaire has been sent to each A of the directors and top management to get an early picture of their main tax concerns before the meeting takes place. The result of the questionnaire demonstrated that a majority of the directors and top management members are concerned with the need for the company to pay substantial amount of cash as income tax instalments every month. They felt that the cash could be used to further expand their production, both for local and international markets. They were also of the opinion that since CCSB would still have to file its Form C every year, they could accordingly minimise the monthly instalment amounts and simply remit the unpaid balance along with the Form C submission. In view of this concern, Ms. Sarah had asked your group to prepare the relevant materials with regard to the above issue to be presented to CCSB's directors and top management during the meeting. Required: Discuss the issue raised by the directors and top management of CCSB within the ambit of applicable tax laws in this country with regard to the company's next Year of Assessment. Your discussion must also include applicable Sections from the Income Tax Act 1967, your professional responsibility as tax agent, and any potential consequence arising from non- compliance. You are also to include in your discussion the following tax proposals made in Budget 2022: deferment of corporate income tax instalment payments; and Page 11 of 12 special revision of corporate income tax estimates. It has been a tradition in Sarah & Loring Tax Consultants to conduct a meeting with its clients after the submission of their tax returns to brief them on their tax positions and discuss any potential tax impacts and engagement issues that they may face in the coming YA. A similar meeting has been called with the directors and top management of Coronation Colours Sdn. Bhd. (CCSB) with Ms. Sarah, Mr. Loring, and your group. A questionnaire has been sent to each A of the directors and top management to get an early picture of their main tax concerns before the meeting takes place. The result of the questionnaire demonstrated that a majority of the directors and top management members are concerned with the need for the company to pay substantial amount of cash as income tax instalments every month. They felt that the cash could be used to further expand their production, both for local and international markets. They were also of the opinion that since CCSB would still have to file its Form C every year, they could accordingly minimise the monthly instalment amounts and simply remit the unpaid balance along with the Form C submission. In view of this concern, Ms. Sarah had asked your group to prepare the relevant materials with regard to the above issue to be presented to CCSB's directors and top management during the meeting. Required: Discuss the issue raised by the directors and top management of CCSB within the ambit of applicable tax laws in this country with regard to the company's next Year of Assessment. Your discussion must also include applicable Sections from the Income Tax Act 1967, your professional responsibility as tax agent, and any potential consequence arising from non- compliance. You are also to include in your discussion the following tax proposals made in Budget 2022: deferment of corporate income tax instalment payments; and Page 11 of 12 special revision of corporate income tax estimates