Sendayan Sdn. Bhd. is considering the following corporate exercises. Explain the impact on the tax liability of the company for every exercise. You may provide evidence with calculations.

a. Increase paid-up capital from RM2 million to Rm5 million

b. Changes on the composition of the Board of Directors. The company plans to have 65% female directors.

c. Cash purchase of a car for Director – either Proton Perdana RM130,000 or a BMW RM270,000

d. Purchasing (cash) a lorry for commercial use RM145,000

e. Increase Employee Provident Fund (employer contribution) from 13% to 17%

f. Increase Employee Provident Fund (employer contribution) from 13% to 23%

g. Employ five new disabled staff with monthly salary RM3,000 each.

h. Disposal of a machine on 30 December 2020. The machine was purchased cash on 3 February 2019 at RM230,000. The company closes its account on 31 December every year. The disposal price is RM220,000.

i. Disposal of a machine on 31 December 2020. The machine was purchased cash on 3 February 2018 at RM40,000. The company closes its account on 31 December every year. The disposal price is RM30,000.