QUESTION 3 (RPGT CHAPTER)

Khairi transfered a 6 acre land to his wife Dilla for RM300,000 on 26 July 2015. Khairi incurred RM20,000 on land improvement. The market value of the house at the time of transfer was RM410,000. Khairi bought the land on 18 February 2014 for RM180,000. He incurred stamp duty of RM3,000 in connection with the purchase.

Dilla disposed the land on 23 October 2019 for RM620,000. Prior to disposal of the land, she incurred capital expenditure amounting of RM50,000 in order to enhance the value of the land. She also incurred RM5,000 on legal fees to defend the title of the land.

Required:

(i) State the RPGT position of Khairi on the disposal of his land to his wife, Dilla.(5 marks)

(ii) Compute the RPGT payable by Dilla on the disposal of the land in October 2019.(8 marks)