1. Wing Sdn.Bhd is responsibility to pay royalties of RM70,000 to Way Pte Ltd for the financial year ended 31 December 2018. Wing Sdn.Bhd paid RM63,000, net of tax to Way Pte Ltd on 30 December 2018.

The company claimed the entire RM70,000 as a tax deduction to arrive at the chargeable income of RM800,000 for Y/A 2018.

Wing Sdn.Bhd submits its tax return Form C for Y/A 2018 on 31 July 2019, showing a tax charge of RM192,000 (24% of RM800,000). As at 31 August 2019, Wing Sdn Bhd did not yet submit the Withholding tax to IRB.

Required:

1. Compute the amount of penalty that the Director General can impose on Wing Sdn.Bhd for Y/A 2018.

(7 marks)

2. Compute the amount due to IRB as at 31 August 2019.

(5 marks)

2. Would your answer be the same in (b) if Wing Sdn Bhd is a pioneer company enjoying full income tax exemption under the Promotion of Investment Act 1986?

(5 marks)