QUESTION 3 (25 MARKS) (a) RPGT is a tax on capital gains imposed on the disposal of a chargeable asset and this includes real property. It is governed by the Real Property Gains Tax Act (RPGTA) 1976. Defines land Under Section 2 RPGTA. (9 Marks) (b) Garuda Sdn Bhd acquired two office units for a total of RM660, 000. There was no written agreement but the full consideration was paid to the disposer on 24 July 2016 and the ownership was transferred to Garuda on 15 August 2016. Garuda paid stamp duty of RM10, 800 and legal fees of RM12, 200 on the acquisition and renovated both office units at a cost of RM60,000 In 2018, Garuda received RM22,000 as compensation for damage caused to both office units by a leakage in the piping system from a neighbouring unit and also paid quit rent and assessment totalling RM4,000. Garuda was interested in acquiring the neighbouring office unit and paid RM80,000 as a deposit but subsequently decided not to pursue the acquisition due to difficulty in obtaining bank borrowings and the deposit was forfeited. Garuda signed a sale and purchase agreement with Zahar Associate on 16 June 2020 for the disposal of one of the office units for a total price of RM320,000, comprising cash of RM9,000 and a property valued at RM311,000. The cash consideration was received by Garuda and the ownership of both assets was transferred (i.e. the office unit to Zahar and the property to Garuda) on 3 August 2016. Garuda paid its real estate agent commission of 2% of the total consideration. Required: Compute the real property gain tax payable by Garuda Sdn Bhd on the disposal of the office unit, clearly identifying the acquisition date and disposal date. (16 Marks) ADDITIONAL INFORMATION Resident company Paid up ordinary share capital First RM500,000 19% Excess over RM500,000 24% RM2,500,000 or less More than RM2,500,000 Non-residents 24% 24% Rate 24% Company Individual Capital allowances 28% Initial Allowances Annual Allowances (AA) (IA) Rate % Rate % 10 3 20 14 20 20 Industrial buildings Plant and machinery - general Motor vehicles and heavy machinery Office equipment, furniture and fittings Agriculture allowance Real Property Gain Tax (RPGT) Category of disposal 20 10 NIL 20 Companies Individuals All others Rate Rate Rate % % % 30 30 30 20 30 20 Disposal within three years after the date of acquisition Disposal in the fourth year after the date of acquisition Disposal in the fifth year after the date of acquisition Disposal in the sixth year after the date of acquisition or thereafter 15 30 15 5 5 5 0