Answer all question (Taxation in Business Income Malaysia) 1. Explain with reasons whether the profits...
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Answer all question (Taxation in Business Income Malaysia)
1. Explain with reasons whether the profits arising from the following transactions are liable to tax:
a. Yanni, an employee of a textile company and Shaza a director of a canned food manufacturing concern made some profits on the purchase and sale of 8 units of cotton spinning plant. This is the only time Yanni and Shaza dealt in a transaction of this nature. The units were sold to different purchasers. Expenses such as commission, advertising, insurance, repair travelling andentertainment were incurred in facilitating the sale.
b. Lou has varied business interests. While on a business trip overseas, he purchased a piece of jewellery for his personal use. He expected the value of jewellery to appreciate over the years. The purchase was made through a broker and was financed by borrowing. 3 years later, he sold the jewellery making a substantial profit. Lou has not disposed of any jewellery previously.
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