Quick Quiz 1 SS 2021 B (Que)

Jun.
Sem, 2021 Quick Quiz I ACCT3513 Taxation II
Time Allowed : 20 minutes Total Marks : 20 marks
Name :
Question 1
Retailco Sdn Bhd incurs RM250,000 for developing website in the year of assessment 2020.
What is Power Sdn Bhd’s total tax deductible amount in respect of the developing website for
the year of assessment 2020?
Answer : RM250,000 x 20% =RM50,000
Question 2
Toys’ World Sdn Bhd is a Malaysian resident company manufactures various types of electronic
toys for the local and overseas market makes up its account to 31 October each year.
Royalty was paid to a Japanese company for the manufacture of a special toy. On 20 June 2020
the company was liable to pay a royalty of RM100,000. A sum of RM90,000 being the royalty
net of withholding tax of RM10,000 was paid to the Japanese company and the withholding tax,
inclusive of the late payment increase, was paid to the IRB on 18 June 2021.
In computing the adjusted income from its business for tax purposes, what adjustment must be
made to the tax computation in respect of the royalty expenses for the year of assessment 2020?
Answer : +RM100,000
Question 3
Rejang Sdn Bhd has paid lease rental of RM60,000 in the year ended 31 October 2020 for a new
van that had cost the lessor RM150,000. The company commenced paying lease rentals in
January 2019 and the total lease rentals paid in year of assessment 2019 and 2020 is RM50,000
and RM60,000 respectively.
What is the maximum amount of lease rentals paid by Rejang Sdn Bhd that can be claimed and
will be disallowed for tax purposes for the year of assessment 2019 and 2020?
Answer :
Van-commercial vehicle
2019- max RM50,000
2020- max RM60,000
No disallowed for tax purpose , RM0
Page 1 of 3
Jun. Sem, 2021 Quick Quiz I ACCT3513 Taxation II
Question 4
Covid Sdn Bhd writes off:
(a) trade debt amounting to RM80,000 as the directors of CCY Foods Sdn Bhd are not
traceable.
(b) waived RM30,000 owing by a related company, ZZB Sdn Bhd.
In computing the adjusted income from its business for tax purposes, what is the maximum
amount of allowance for receivables that can be claimed and will be disallowed for the for tax
purposes for the year of assessment 2020?
Answer : allowed RM80,000, disallowed RM30,000
Question 5
ANZ Sdn Bhd, a manufacturing company, incurred entertainment expenses for entertaining
suppliers lucky draw prizes given to purchasers of goods as part of a sales promotion campaign
amounting to RM20,000, gifts of company products with logo for a customer’s annual dinner
amounting to RM8,000, public sporting event used for a brand launch RM10,000 and travelling
expenses to Kuching for a business meeting for RM2,200 during the year of assessment 2020.
What is the total amount of expenses which will be disallowed when calculating ANZ Sdn Bhd’s
adjusted business income for the year of assessment 2020?
Answer : disallowed suppliers RM20,000x 50% =RM10,000.
Question 6
Ozone Sdn Bhd, a manufacturing company, incurred entertainment expenditure wholly relates to
sales as follows:
(a) Company’s annual dinner for staff RM50,000
(b) Disbursement of the promotion team’s entertainment expenses RM100,000
(c) Company’s family day in Singapore on 15 December 2020
made up of fare (RM30,000), food, drinks and accommodation
(RM50,000) for the staff and their immediate family members. RM80,000
What is the total amount of entertainment expenses which will not be deductible for tax purposes
for the year of assessment 2020?
Answer : RM80,000
Page 2 of 3
Jun. Sem, 2021 Quick Quiz I ACCT3513 Taxation II
Question 7
A manufacturing company incurred legal fees as follows:
(a) Renewal of loan agreement RM20,000
(b) Compensation paid to an employee for a restrictive covenant
not to take-up a similar employment RM15,000
(c) Retrenchment payments for downsizing/rightsizing the
furniture division as part of the exercise to achieve efficiency in
its manufacturing operations RM30,000
What is the total amount of legal expenses which will NOT be deductible for tax purposes?
Answer : RM20,000+RM15,000=RM35,000
Question 8
ANZ Sdn Bhd incurred the following expenses during the year of assessment 2020:
(a) Leave passage for employees for a local trip RM10,000
(b) Sponsorship of arts and cultural activity (approved) performed
by foreign artistes RM1,300,000
What is the total amount of expense which will be disallowed when calculating Bottleyard Sdn
Bhd’s adjusted income for the year of assessment 2020?
Answer : RM10,000+RM1,000,000=RM1,010,000
Question 9
On 1 January 2020, ABC Sdn Bhd entered into a three-year rental agreement for a factory
premise for RM10,000 per month and it was agreed that ABC Sdn Bhd would pay the total
rental for the three-year period of RM180,000 to the landlord in advance.
What is the total amount of rental expenses which will not be deductible for tax purposes?
Answer : RM180,000
Question 10
Zero Sdn Bhd donated
(a) computers to approved charitable institutions RM120,000
(b) books to National Library RM12,000
(c) cash to the Furniture Trade Association’s annual dinner RM20,000
The aggregate income of the company for the year of assessment 2020 is RM150,000.
Assuming that the company does not apply S44(8) for the donation to National library, what is
the maximum amount of donation that can be claimed against aggregate income in computing
the total income from its business for the year of assessment 2020?
Answer : RM132,000
Page 3 of 3

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Jun.

Sem, 2021 Quick Quiz I ACCT3513 Taxation II

Time Allowed : 20 minutes Total Marks : 20 marks

Answer : RM250,000 x 20% =RM50,000

No disallowed for tax purpose , RM0

(b) waived RM30,000 owing by a related company, ZZB Sdn Bhd.

Answer : allowed RM80,000, disallowed RM30,000

Answer : disallowed suppliers RM20,000x 50% =RM10,000.

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