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QUESTION 3 You are an ICAEW Chartered Accountant of Asiatic Consulting in Malaysia. Recently, you received an email from Ernest. Ernest is a Malaysian who
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You are an ICAEW Chartered Accountant of Asiatic Consulting in Malaysia. Recently, you received an email from Ernest. Ernest is a Malaysian who has been working in France since The extract from the email as follows:
Subject: Tax planning
Date: December
Good day to you!
My name is Ernest and I am Malaysian. I started to work as an engineer in Otis Ltd a construction a company located in Paris, France since I graduated from University of Malaya in In November my employer assigned me as a site supervisor to oversee a construction project in Selangor, Malaysia under a contract. I report duty to Otis Sdn Bhd a subsidiary of Otis Ltd during my stay in Malaysia.
I arrived in Malaysia on October for a short holiday in Penang before starting my supervisory work on January I will stay in Malaysia until February except for a visit to my parentsinlaw in Paris starting from December to January My family and I will leave Malaysia to Paris on December and expect to return to Malaysia on January I am unsure whether I qualify as a Malaysian tax resident for the year of assessment and
My aunt, who is a Malaysian resident, passed away on November due to heart attack at Putrajaya Hospital Malaysia. According to my aunt's will, I have been appointed as the executor of the estate. However, I am unsure the way of determining the income tax liability of my late aunt's estate.
Exhibit
The following are the details of my late aunt's estate for the year :
Statutory business income from the minimart business of RM
Adjusted business loss from the coffee house of RM The business is eligible to claim a capital allowance of RM
Gross rental income of RM The expenses incurred for the rented property in are RM RM and RM for quit rent and assessment, maintenance fees, and interest on the bank loan, respectively.
Interest income of RM from a fixed deposit placement in OCBC Bank. The income was received in August
Annuity payable of RM to the beneficiaries.
Remuneration for the executor of RM
Required:
a Determine Ernest's tax resident status in Malaysia for the years of assessment and marks
b Compute the chargeable income of Ernest for the year of assessment marks
c Compute the total income of the deceased and the executor for the year of assessment Show all relevant workings. Indicate 'nil' or 'exempt' when necessary. marks
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