Question 5

(a)James Lee, a member of the Chartered Tax Institute of Malaysia (CTIM), is an approved tax agent, licensed under section 153 of the Income Tax Act, 1967. James Lee who is being employed as an in-house tax consultant of Super Sdn Bhd is also being instructed by the management to advise and assist George Ong, the Marketing Manager in preparing and filing the George's personal tax returns.

Required:

Discuss James Lee's professional relationship with George Ong and briefly comment on matters pertaining to the latter's (George) tax affairs.

(5 marks)

(b)Johnny, a taxpayer approaches you in your capacity as an approved tax agent to advise him on his tax affairs. Preliminary discussions with Johnny revealed that he is not satisfied with his existing tax agent, and that being the main case, he wishes to replace his tax agent.

Required:

Discuss the course of action that the new tax agent should consider before agreeing to act for Johnny.

(7 marks)

[Total: 12 marks]

Question

a)Joe a resident of Malaysia received RM11,000 for translating a Mandarin book into Bahasa Malaysia requested by the Ministry of Education.

b)Suzan a resident non Malaysian citizen who is living in Malaysia since the last 3 years received a royalty payment of RM 9,000 for her literary work.

Required:

Discuss whether the income received by Joe and Suzan is chargeable to tax in Malaysia. Support your answer with the relevant tax provision.

[Total : 7 marks]

Question

(a) In 2Q12, Niko, a Japanese, but a Malaysian tax resident took a loan from a bank in Japan to acquire a shop lot in Kuala Lumpur. Niko uses the shop lot to operate her restaurant business in Kuala Lumpur. In 2014, for convenience, Niko used her financial resources in Japan to pay the interest on the loan, which amounted to RM5.000, instead of remitting the amount from Malaysia.

Required:

Discuss whether the interest of RM5,000 received by the bank in Japan should be chargeable to tax in Malaysia. Give reasons for your answers.

(5 marks)