d a. Question 3: b. "Utility Expenses" of RM50,000 provided by Redup Sdn Bhd clearly indicated that a donation of RM15,000 was included therein. Chau made an immediate request in writing for the receipt, advising the company that only donations made to approved bodies or institutions under section 44(6) would be eligible for deduction. Redup Sdn Bhd confirmed in a letter that the donation had been made to an approved body and that it was in the process of obtaining the receipt for it. In view of the impending due date for the submission of the return and relying on that confirmation, Chau made the relevant adjustments for the donation in the tax computation. It was discovered during a tax audit that there had been an understatement of the company's tax liability as the donation had been made to a non-approved body, about which the company had neglected to inform Chau as the tax agent subsequently. C. Fong, a graduate of Lim Kok Wing University, founded a startup business in Negeri Sembilan after he graduated. He has been earning a steady income from his business venture in 2021. However, he did not declare any of his income to the Inland Revenue Board of Malaysia by filing Income Tax Return Form, as he was afraid of not getting any government assistance thereafter as his income exceeded the limit stipulated. 369 Tax audit aims to encourage voluntary compliance with the tax laws and regulations. Distinguish two types of tax audits carried out by the IRBM. The Director General of the IRBM can exercise his discretion to issue an additional assessment to a taxpayer under three circumstances. State any two circumstances that give rise to the issuance of additional assessment. PR 5/2000 states that an individual carrying on a business as a sole proprietorship or partnership is required under the ITA 1967 to keep and retain in safe custody sufficient records. Briefly explain two types of documents or records that need to be maintained.
d a. Question 3: b. "Utility Expenses" of RM50,000 provided by Redup Sdn Bhd clearly indicated that a donation of RM15,000 was included therein. Chau made an immediate request in writing for the receipt, advising the company that only donations made to approved bodies or institutions under section 44(6) would be eligible for deduction. Redup Sdn Bhd confirmed in a letter that the donation had been made to an approved body and that it was in the process of obtaining the receipt for it. In view of the impending due date for the submission of the return and relying on that confirmation, Chau made the relevant adjustments for the donation in the tax computation. It was discovered during a tax audit that there had been an understatement of the company's tax liability as the donation had been made to a non-approved body, about which the company had neglected to inform Chau as the tax agent subsequently. C. Fong, a graduate of Lim Kok Wing University, founded a startup business in Negeri Sembilan after he graduated. He has been earning a steady income from his business venture in 2021. However, he did not declare any of his income to the Inland Revenue Board of Malaysia by filing Income Tax Return Form, as he was afraid of not getting any government assistance thereafter as his income exceeded the limit stipulated. 369 Tax audit aims to encourage voluntary compliance with the tax laws and regulations. Distinguish two types of tax audits carried out by the IRBM. The Director General of the IRBM can exercise his discretion to issue an additional assessment to a taxpayer under three circumstances. State any two circumstances that give rise to the issuance of additional assessment. PR 5/2000 states that an individual carrying on a business as a sole proprietorship or partnership is required under the ITA 1967 to keep and retain in safe custody sufficient records. Briefly explain two types of documents or records that need to be maintained.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.5P
Related questions
Question
Transcribed Image Text:d
a.
Question 3:
b.
"Utility Expenses" of RM50,000 provided by Redup Sdn Bhd
clearly indicated that a donation of RM15,000 was included
therein. Chau made an immediate request in writing for the
receipt, advising the company that only donations made to
approved bodies or institutions under section 44(6) would be
eligible for deduction. Redup Sdn Bhd confirmed in a letter
that the donation had been made to an approved body and that it
was in the process of obtaining the receipt for it. In view of the
impending due date for the submission of the return and relying
on that confirmation, Chau made the relevant adjustments for
the donation in the tax computation. It was discovered during a
tax audit that there had been an understatement of the company's
tax liability as the donation had been made to a non-approved
body, about which the company had neglected to inform Chau
as the tax agent subsequently.
C.
Fong, a graduate of Lim Kok Wing University, founded a
startup business in Negeri Sembilan after he graduated. He has
been earning a steady income from his business venture in
2021. However, he did not declare any of his income to the
Inland Revenue Board of Malaysia by filing Income Tax Return
Form, as he was afraid of not getting any government assistance
thereafter as his income exceeded the limit stipulated.
369
Tax audit aims to encourage voluntary compliance with the tax
laws and regulations. Distinguish two types of tax audits carried
out by the IRBM.
The Director General of the IRBM can exercise his discretion
to issue an additional assessment to a taxpayer under three
circumstances. State
any two circumstances that give rise to the
issuance of additional assessment.
PR 5/2000 states that an individual carrying on a business as
a sole proprietorship or partnership is required under the ITA
1967 to keep and retain in safe custody sufficient records.
Briefly explain two types of documents or records that need to
be maintained.
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