QUESTION 3

Mr. Toller is a Canadian citizen. He possesses a permanent residence status in Malaysia since the year 2009. On 6 January 2016, Mr. Toller signed an agreement with Madam Lim for a piece of 5.5-acre land in Mukim Kuala Selangor for RM604,460. Mr. Toller had paid RM45,330 as deposit and would be financing the balance by way of a bank loan. Madam Lim transferred the property to him on 4 April 2016 after receiving the full payment on 25 March 2016. Throughout the acquisition process, Mr. Toller had incurred legal fees of RM7,908 and stamp duty of RM6,302.

In the year 2017, Mr. Toller had spent RM19,450 to level the land. He also incurred another RM11,220 to install a drainage system and fencing around the property. During 2018, Mr. Toller faced a legal challenge over the title of his property from the son of late Madam Lim Mr. Toller had to engage a lawyer to defend his right, which costed him RM8,340. In September 2019, his land was inundated by flood due to the high tide phenomenon. He received an insurance compensation of RM13,125 for the resultant damages. Five months later, a landslide damaged Mr. Toller's property due to an improper land reclamation project adjacent to his plot. The project developer decided to settle the matter out-of-court and compensated Mr. Toller RM35,945.

In May 2020, Mr. Toller decided to sell off the land and advertised his intention accordingly. Mr. Melvin Teoh from Sabak Bernam responded and agreed to pay a deposit of RM50,750. However, Mr. Melvin's loan application was unsuccessful and he had to forfeit his deposit. Another prospective buyer, Puan Nurlina had agreed to buy the land from Mr. Toller for RM729,500 in cash. Both Mr. Toller and Puan Nurlina signed the agreement on 15 August 2020 and the payment was made in the same day. The title was then transferred to Puan Nurlina on 1 September 2020.

The entire sales process had costed Mr. Toller RM4,909 for valuation fee, RM1,350 for advertising expense, RM6,001 for real estate agent fee, and RM5,920 for legal fees. Also, up to the time of land sale, Mr. Toller had incurred a total interest charge of RM81,975 on the loan he took upon its acquisition

Required: Compute the real property gains tax payable by Mr. Toller upon the disposal of his land.

APPENDIX