Question: Reinvestment allowance (RA) is an incentive given to companies under Schedule 7A of the [TA for certain qualifying projects. The MIalaysian income tax authorities closely scrutinise RA claims made by businesses during tax audits. In respect ofthe above statements, provide appropriate answers to the following: (a) How dam a company qualify for a RA and state the types of conditions required for its eligibility? [it marks) (b) Explain the rationale for a company in choosing the RAincentive over other tax incentives available under the Malaysian tax legislation. (4 marks) (c) Premium Glove Sdn Bhd (PG) is a leading manufacturer of disposable rubber gloves. PG located in Peralr and is planning to expand its production lines to meet the extensive demand for its products in Itialaysia. PG's budgeted prots and capital expenditure in 2020 and 2021 are shown below: 2020 2021 RLI'000 RLI'000 Adjusted income Capital allowance Rental income (net) Approved donations Projected capital expenditure: Land in Perak 1,600 Nil Factory 3,000 1,500 Plant & machinenr 1,300 400 PG is entitled to 60% of the qualifying expenditure to be offset against 70% of the company's statutory income. Required: Calculate the reinvestment allowance claim and compute the chargeable income ofPG incorporating reinvestment allowance for years of assessment 2020 and 2021. (12 marks]