Determination of “Person” in S 2 ITA 1967 is includes a company, a body of persons, a limited liability partnership and a corporation sole. However, the word of ‘includes’ means the categories of person are not limited to what is defined in the Act. Cooperative Societies, Trade Associations and Clubs also includes in the person. Discuss the exemptions available for the cooperative societies, trade association and clubsFollowing is the information of Malaysia Farmer Co-operative Society (‘the society’) which have been registered under the Co-operative Societies Act 1993 for more than 15 years. Malaysia Farmer Co-operative SocietyStatement of Profit and Loss for the year ended 31 December 2019 RM RMGross Sales 106,000Add: Other income Rental Income 99,000 205,000Less: Operating Expenses Revenue expenditure under s3320,000 Depreciation2,000 Donation to local government10,000 (32,000)Net Profit 173,000 Contribution in the basis period: Statutory reserve fund166,000 Education Trust Fund230,000 Development Trust Fund123,000 519,000 Members’ funds as at 1.1.20192,700,000 Capital allowance5,000 Required:Calculate the chargeable income of the Malaysia Farmer Co-operative Society for the year of assessment 2019

Chargeable Income which is also known as taxable income over which the tax liability is charged. The…

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Determination of “Person” in S 2 ITA 1967 is includes a company, a body of persons, a limited liability partnership and a corporation sole. However, the word of ‘includes’ means the categories of person are not limited to what is defined in the Act. Cooperative Societies, Trade Associations and Clubs also includes in the person.

Discuss the exemptions available for the cooperative societies, trade association and clubs
Following is the information of Malaysia Farmer Co-operative Society (‘the society’) which have been registered under the Co-operative Societies Act 1993 for more than 15 years.

Malaysia Farmer Co-operative Society
Statement of Profit and Loss for the year ended 31 December 2019
	RM	RM
Gross Sales		106,000
Add: Other income
Rental Income		99,000
		205,000
Less: Operating Expenses
Revenue expenditure under s33	20,000
Depreciation	2,000
Donation to local government	10,000
		(32,000)
Net Profit		173,000

Contribution in the basis period:
Statutory reserve fund	166,000
Education Trust Fund	230,000
Development Trust Fund	123,000
	519,000

Members’ funds as at 1.1.2019	2,700,000

Capital allowance	5,000

Required:

Calculate the chargeable income of the Malaysia Farmer Co-operative Society for the year of assessment 2019

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