GME Sdn Bhd, a fashion retailer with a share capital of RM3.000.000 as of 1 January 2019. The statement of profit or loss for the financial year ended 31 December 2019 is as follow: GME Sdn Bhd Note RM'000 RM'000 Sales 7.780 Less: COGS 1 (2.233) Gross Profit 5,547 Add: other income Training grant from government 2 1 Interest income 3 27 28 5.575 Less: Expenses Bad and doubtful debts 4 32 Consultancy fees & Legal Fees 5 16 Donations / sponsorships 6 50 Foreign exchange loss 7 34 Interest expense 8 14 Miscellaneous expenses 9 20 Repairs and maintenance expenses 10 260 Staff costs 11 1.205 (1.631) Profit before tax 3.944 * Additional notes: RM 000 30 124 1 (1) The cost of sales include, Obsolete inventories written off Depreciation (2) A grant received from the government related to human capital development for special skills training. (3) Interest income: (1) Interest income from trade debtor (ii) Interest income eamed from the fixed deposit placed in Singapore 12 15 32 (4) Bad and doubtful debt Bad debt recovered specific provision b/d general provision b/d bad debt written off specific provision cd general provision cd Total -7 -7 -9 10 18 27 32 3 6 3 4 . 10 17 10 13 (5) Legal fees were breakdown as below: Collection of trade debt A secretarial fee paid in a related company registered under Malaysia Companies act 2016. Tax fees for acquisition for a new business Income Tax Appeal (6) Donation Donation contributions made a purpose for fundraising organized by the supplier of the Company. Donation to an approved institution. Cash handed to old folks (RM500 per person) approved institution. Providing to Library facilities which are accessible to the public. (7) Entertainment includes: Business entertainment A gift without business logo for customer's annual dinner Entertainment wholly related to sales (8) Interest expense 75% was related to financing the company's working capital. 25% in related to the oversea loan as the funds are deposited under fixed deposit, the funds were placed in Singapore (as in note 3 above). No withholding tax was deducted from this interest to Inland Revenue Broad (9) Miscellaneous expenses include the especial skills training programme undertaken as part of the government's human capital development programme (as in note 2 above). 15 5 8 14 1 1 . . . (10) Renovation cost to provide a conducive place for disabled workers. 20 Maintenance expenses include cost of purchasing center air conditioner, refrigerator and oven kitchen package. 30 Cost of development a website. 100 Export credit insurance (approved by Minister Finance) is provided 10 by a company (11) Salary paid to a disabled staff member (duly certificate submitted to 30 relevant authorities) Bonus paid to disabled staff 10 (12) Capital allowances have been computed for the year of assessment 120 2019. Required: Compute the chargeable income and income tax payable by GME Sdn Bhd for the year of assessment 2019. (starting with the profit before taxation) (25 marks) [Total: 25 marks] . GME Sdn Bhd, a fashion retailer with a share capital of RM3.000.000 as of 1 January 2019. The statement of profit or loss for the financial year ended 31 December 2019 is as follow: GME Sdn Bhd Note RM'000 RM'000 Sales 7.780 Less: COGS 1 (2.233) Gross Profit 5,547 Add: other income Training grant from government 2 1 Interest income 3 27 28 5.575 Less: Expenses Bad and doubtful debts 4 32 Consultancy fees & Legal Fees 5 16 Donations / sponsorships 6 50 Foreign exchange loss 7 34 Interest expense 8 14 Miscellaneous expenses 9 20 Repairs and maintenance expenses 10 260 Staff costs 11 1.205 (1.631) Profit before tax 3.944 * Additional notes: RM 000 30 124 1 (1) The cost of sales include, Obsolete inventories written off Depreciation (2) A grant received from the government related to human capital development for special skills training. (3) Interest income: (1) Interest income from trade debtor (ii) Interest income eamed from the fixed deposit placed in Singapore 12 15 32 (4) Bad and doubtful debt Bad debt recovered specific provision b/d general provision b/d bad debt written off specific provision cd general provision cd Total -7 -7 -9 10 18 27 32 3 6 3 4 . 10 17 10 13 (5) Legal fees were breakdown as below: Collection of trade debt A secretarial fee paid in a related company registered under Malaysia Companies act 2016. Tax fees for acquisition for a new business Income Tax Appeal (6) Donation Donation contributions made a purpose for fundraising organized by the supplier of the Company. Donation to an approved institution. Cash handed to old folks (RM500 per person) approved institution. Providing to Library facilities which are accessible to the public. (7) Entertainment includes: Business entertainment A gift without business logo for customer's annual dinner Entertainment wholly related to sales (8) Interest expense 75% was related to financing the company's working capital. 25% in related to the oversea loan as the funds are deposited under fixed deposit, the funds were placed in Singapore (as in note 3 above). No withholding tax was deducted from this interest to Inland Revenue Broad (9) Miscellaneous expenses include the especial skills training programme undertaken as part of the government's human capital development programme (as in note 2 above). 15 5 8 14 1 1 . . . (10) Renovation cost to provide a conducive place for disabled workers. 20 Maintenance expenses include cost of purchasing center air conditioner, refrigerator and oven kitchen package. 30 Cost of development a website. 100 Export credit insurance (approved by Minister Finance) is provided 10 by a company (11) Salary paid to a disabled staff member (duly certificate submitted to 30 relevant authorities) Bonus paid to disabled staff 10 (12) Capital allowances have been computed for the year of assessment 120 2019. Required: Compute the chargeable income and income tax payable by GME Sdn Bhd for the year of assessment 2019. (starting with the profit before taxation) (25 marks) [Total: 25 marks]