Xanadu Sdn Bhd is a Malaysian resident company incorporated in Malaysia on 1 June 2005 with a paid-up capital of RM2.38 million. The company manufactures footwears which are sold locally and export markets. The company closes its accounts on 31 December annually. The following is the Statement of Profit or Loss of the company for the year ended 31 December 2021. Xanadu Sdn Bhd Statement of Profit or Loss for the year ended 31 December 2021 Note RM 1 Sales Less: Cost of sales Gross Profit Add: Other incomes RM 5,550,600 (850,600) 4,700,000 250,500 4,950,500 N Less: Expenses Administration expenses Sales and marketing expenses Sponsorships and donations Net Profit before Taxation 3 4 5 1,164,000 130,800 272,500 (1.567.300) 3,383,200 Notes: 1. RM 150,000 15,000 25,000 Cost of sales comprises: Royalty paid to Japan-based company for the use of design (Withholding tax is still outstanding for this payment) Penalty on outstanding withholding tax Depreciation of manufacturing equipment Other incomes include: Rental income from shophouses in Langkawi Foreign exchange gain (realised) on payment for raw materials from Vietnam Foreign exchange gain (unrealized) from repayment of foreign loan Dividend income remitted from investments in Japan 2. 120,000 19,500 26,000 85,000 3. 3. Administration expenses include: Salaries and bonuses of full-time employees include: Disabled employees A senior citizen aged 58 years old Other employees Contribution to Employees' Provident Fund Professional fees include: Statutory audit fees Secretarial fees Tax filing fees 38,000 29,500 780,000 847,500 175,000 11,000 5,000 8.000 24,000 15,000 Renovation of a covered walkway for disabled employees Conversion of an office area into a child care centre for employees children Repair of factory roof Expenditure for obtaining ISO certification for manufactured products Decrease in general provision for doubtful debts 45,000 5,500 40,000 (3,000) 4. 60,000 11,500 26,000 25,000 8,300 Sales and marketing expenses include: Cost of maintaining a sales office based in Manila for promotion of exports Redemption vouchers to customers with purchases above RM500 Participation fee for an approved international trade fair in KLCC for promotion of exports. RM6,000 is the cost of the exhibits Company's annual dinner with invitations for five best performing distributors Cost of refreshments during new product launching event with existing and potential distributors Sponsorships and donations include: Cash contribution to a joint community project with Jabatan Alam Sekitar Malaysia relating to the conservation of the environment [elect s 44(11C)] Donation of footwear to Rumah Anak Yatim Mesra (approved institution) Cash donation to Kedah state government for the recent flood Donation to Melaka state library (a public library) consisting of RM80,000 cash and 10 units of computers amounting to RM30,000 [elect s 34(6)(9)] Business zakat 5. 87,000 5,000 30,500 110,000 40,000 Additional Information: For the year of assessment 2021, the company has capital allowances allowance of RM60,175 and brought forward capital allowances of RM15,000. The company submitted its tax estimates for the year of assessment 2021 of RM500,000 on 20 November 2020. Required: i) ii) Compute the income tax payable for Xanadu Sdn Bhd for the year of assessment 2021. Indicate Nil or 0 (zero) where no adjustment is necessary. (20 marks) Transfer the relevant items from the computation in part (i) above into the sample tax return form (Form C) for YA 2021. Only fill in applicable items in Part A and Part B of the form. Ignore the company File Number (10 marks) iii) Determine the basis period of Xanadu Sdn Bhd for the year of assessment 2021. iv) Compute the monthly instalment of Xanadu Sdn Bhd for the year of assessment 2021. iv) Compute the penalty (if any) for underestimation of tax payable for the year of assessment 2021. (5 marks) (Total: 35 marks) Xanadu Sdn Bhd is a Malaysian resident company incorporated in Malaysia on 1 June 2005 with a paid-up capital of RM2.38 million. The company manufactures footwears which are sold locally and export markets. The company closes its accounts on 31 December annually. The following is the Statement of Profit or Loss of the company for the year ended 31 December 2021. Xanadu Sdn Bhd Statement of Profit or Loss for the year ended 31 December 2021 Note RM 1 Sales Less: Cost of sales Gross Profit Add: Other incomes RM 5,550,600 (850,600) 4,700,000 250,500 4,950,500 N Less: Expenses Administration expenses Sales and marketing expenses Sponsorships and donations Net Profit before Taxation 3 4 5 1,164,000 130,800 272,500 (1.567.300) 3,383,200 Notes: 1. RM 150,000 15,000 25,000 Cost of sales comprises: Royalty paid to Japan-based company for the use of design (Withholding tax is still outstanding for this payment) Penalty on outstanding withholding tax Depreciation of manufacturing equipment Other incomes include: Rental income from shophouses in Langkawi Foreign exchange gain (realised) on payment for raw materials from Vietnam Foreign exchange gain (unrealized) from repayment of foreign loan Dividend income remitted from investments in Japan 2. 120,000 19,500 26,000 85,000 3. 3. Administration expenses include: Salaries and bonuses of full-time employees include: Disabled employees A senior citizen aged 58 years old Other employees Contribution to Employees' Provident Fund Professional fees include: Statutory audit fees Secretarial fees Tax filing fees 38,000 29,500 780,000 847,500 175,000 11,000 5,000 8.000 24,000 15,000 Renovation of a covered walkway for disabled employees Conversion of an office area into a child care centre for employees children Repair of factory roof Expenditure for obtaining ISO certification for manufactured products Decrease in general provision for doubtful debts 45,000 5,500 40,000 (3,000) 4. 60,000 11,500 26,000 25,000 8,300 Sales and marketing expenses include: Cost of maintaining a sales office based in Manila for promotion of exports Redemption vouchers to customers with purchases above RM500 Participation fee for an approved international trade fair in KLCC for promotion of exports. RM6,000 is the cost of the exhibits Company's annual dinner with invitations for five best performing distributors Cost of refreshments during new product launching event with existing and potential distributors Sponsorships and donations include: Cash contribution to a joint community project with Jabatan Alam Sekitar Malaysia relating to the conservation of the environment [elect s 44(11C)] Donation of footwear to Rumah Anak Yatim Mesra (approved institution) Cash donation to Kedah state government for the recent flood Donation to Melaka state library (a public library) consisting of RM80,000 cash and 10 units of computers amounting to RM30,000 [elect s 34(6)(9)] Business zakat 5. 87,000 5,000 30,500 110,000 40,000 Additional Information: For the year of assessment 2021, the company has capital allowances allowance of RM60,175 and brought forward capital allowances of RM15,000. The company submitted its tax estimates for the year of assessment 2021 of RM500,000 on 20 November 2020. Required: i) ii) Compute the income tax payable for Xanadu Sdn Bhd for the year of assessment 2021. Indicate Nil or 0 (zero) where no adjustment is necessary. (20 marks) Transfer the relevant items from the computation in part (i) above into the sample tax return form (Form C) for YA 2021. Only fill in applicable items in Part A and Part B of the form. Ignore the company File Number (10 marks) iii) Determine the basis period of Xanadu Sdn Bhd for the year of assessment 2021. iv) Compute the monthly instalment of Xanadu Sdn Bhd for the year of assessment 2021. iv) Compute the penalty (if any) for underestimation of tax payable for the year of assessment 2021. (5 marks) (Total: 35 marks)