SSM Sdn Bhd (share capital of 2.8 million) accounting year ending 30 June 2020 furnished its first estimate tax payable for the year of assessment 2020 to the Inland Revenue Board within the time prescribed by law. This was for RM120,000.

Required:

i.                   State when and what amounts SSM is required to pay the amount of tax estimated by the company for the year of assessment 2020.

ii.                 An earliest revised estimate for the year of assessment 2020 was furnished to IRB within the time prescribe by law in the amount of RM123,850. When could an earliest revised estimate be furnished and in what amounts was SSM required to pay the balance of the revised estimated tax payable?

iii.               Could SSM revise its estimate its estimate tax after the earlier revision made in (ii) above?

iv.               SSM submitted its tax return for the year of assessment 2020 to the IRB on 20 January 2021 showing tax payable of RM130,375. When is the assessment for the year of assessment 2020 be deemed to have been made on SSM?

v.                 When was SSM be deemed to have been served with the deemed notice of assessment for the year of assessment 2020?

vi.               When is the final tax of SSM for the year of assessment 2020 be due and payable?

 

   [15 marks]

b.   Henry and Honey are in partnership for many years. Nancy joined the partnership on 1 July 2020. The profit ratio of the partners are given below

 

                                                                       Henry : Honey : Nancy

Period 1/1/2008-30/6/2020                  1      :    3

Period 1/7/2020-31/12/2020                3      :    4     :    1

 

The divisible income of the partnership business in year 2020 is RM120,000. 

 

The partnership bought heavy machinery in 2019 at cost RM30,000. In 2020, the partnership acquired an additional new heavy machinery by RM25,000.

 

Nancy bought a new private car at cost RM110,000 and used it in the partnership business. 30% of the car usage is for Nancy's private purposes.

 

Compute the 2020 statutory income for Henry, Honey and Nancy. Show all workings.