QUESTION 3Daniel, an electrical engineer, resigned from Tenaga Nasional Berhad to start his owntrading in electrical goods. He required the following assets:Furniture and fittingsA computerA cash registerA vanAlthough he has sufficient savings to pay by cash he has been told that leasing is abetter way to pay for the assets.The estimates of his annual income from other sources are as follows:RMAdjusted rental income from a condominium in Kuala LumpurGross dividends from companies listed on Bursa Malaysia47,0003,000Daniel has come to you for advice as how to commence business as sole-proprietorfrom the tax perspective.3(i)Explain to Daniel how the date of commencement of his business is determined andwhat tax implications that this might have on him.3(ii) Illustrate, with examples, how the period chosen for Daniel's first accounting periodaffects the determination of his tax basis periods. He will close his accounts on 31December.3(iii) Explain to Daniel why leasing is sometimes better than other method of financingfrom the tax viewpoint5

Here given the details of commencement of business which can be influence in taxation affairs and…

Explain to Daniel how the date of commencement of his business is determined and what tax implications that this might have on him. i) Illustrate, with examples, how the period chosen for Daniel's first accounting period affects the determination of his tax basis periods. He will close his accounts on 31 December.

Explain to Daniel how the date of commencement of his business is determined and what tax implications that this might have on him. i) Illustrate, with examples, how the period chosen for Daniel's first accounting period affects the determination of his tax basis periods. He will close his accounts on 31 December.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 21P: Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home...

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