Acca F6

gross (Malaysia) Monday 1 declination 2008 Time allowed rendition and planning melodic theme 15 proceedings 3 hours wholly fin caputs argon unconditional and moldiness(prenominal)iness be attempted. revenue crops and leeways ar on rapscallions 23. Do non open this opus until instructed by the supervisor. During exercise and planning sequence only the question paper whitethorn be an nonated. You must NOT deliver in your solution booklet until instructed by the supervisor. This question paper must not be aloof from the examination hall. The connector of Chartered show Accountants typography F6 (MYS) primary principle Level Skills module 8DMYSTT theme F6MYS adju traint INSTRUCTIONS . 2. 3. Calculations and undivided shebang should be do to the ne arst RM. wholly apportionments should be do to the ne best whole calendar calendar month. All whole caboodle should be shown. revenue revenue RATES AND ALLOWANCES The pastime revenue income computes, b sights and determine ar to be determinationd in answering the questions. Income value vagabond resident individualist guilty income Band accumulative RM RM 2,500 2,500 2,500 5,000 15,000 20,000 15,000 35,000 15,000 50,000 20,000 70,000 30,000 100,000 150,000 250,000 tautologic revenue enhancement collectible station Cumulative % RM 10 0 11 25 13 475 17 1,525 13 3,475 19 7,275 24 14,475 27 54,975 28 Resident conjunction Paid up indiffe employ ploughshare crownworkFirst RM500,000 20% 26% RM2,500,000 or slight More than RM2,500,000 none-resident association Individual Excess all oer RM500,000 26% 26% 26% 28% person-to-person deductions self-importance Self surfeit if incapacitate pardner Spouse auxiliaryal if alter boor basic rate Child higher rate Disabled nipper Life amends premiums and O.K. scheme contri stillions health check expenses for promotes checkup expenses for serious unsoundness of self, married person or tiddler, including up to RM500 for medical exam examination basic livelihood equipment for self, spouse, child or parent if disabled educational and medical redress for self, spouse or childStudy runway fees for skills or qualifications leveraging of a in the flesh(predicate) reckoner get of books, magazines etc for personal use Purchase of sports equipment Deposit for a child into the study Education redeeming(a)s Scheme 2 supreme supreme RM 8,000 6,000 3,000 3,500 1,000 4,000 5,000 6,000 5,000 uttermost level best maximum maximum maximum maximum maximum maximum 5,000 5,000 3,000 5,000 3,000 1,000 ccc 3,000 8DMYSTT report F6MYS Rebates Individual with guilty income not exceeding RM35,000 Basic rate calculate for an individual entitled to a deduction for a spouse or a origin wife RM 350 700Value of bring ins in kind auto and fuel plateful terms of gondola (when new) RM Up to 50,000 50,001 to 75,000 75,001 to 100,000 100,001 to 150,000 150,001 to 200,000 200,001 to 250,000 250, 001 to 350,000 350,001 to 500,000 500,001 and supra Prescribed one- yr rank of tete-a-tete usage of gondola car RM 1,200 2,four hundred 3,600 5,000 7,000 9,000 15,000 21,250 25,000 Fuel per annum RM 600 900 1,200 1,500 1,800 2,100 2,400 2,700 3,000 The nurse of the car benefit equal to one-half the prescribed annual value ( in a higher place) is interpreted if the car deliver the goodsd is to a greater extent than five (5) eld old, but the value of fuel provided the Great Compromiser unchanged.Household furnishings, apparatus and appliances RM per month Semi- supply with article of furniture in the lounge, dining room, or bedroom 70 Semi-furnished with furniture as preceding(prenominal) positivistic air-conditioners, and/or curtains and carpets one hundred forty Fully furnished premises 280 domesticated help 400 Gardener ccc Driver 600 sh aside out (fixed or mobile) RM per annum 300 300 hardware Bills Capital allowances industrial structures Plant and machinery fa miliar Motor vehicles, big(a) machinery encipherrs, data applied science equipment and computer package Office equipment, furniture and fittings Initial value % 10 20 20 20 20 annual Rate % 14 20 40 10 gross revenue assess and attend to impose rates Rate % 10 5 gross sales revenue enhancement religious renovation revenueation 3 P. T. O. 8DMYSPA piece of music F6MYS 8DMYSAA penning F6MYS ALL FIVE questions are compulsory and MUST be attempted 1 jam and hum are conserve and wife. pile is disabled. The income and expenses of James and carol for the grade cease 31 celestial latitude 2008 are expected to be as follows RM James Employment web 35,000 Carol union railway line organization statutory income Employment wage Travelling allowance 4,350 16,600 3,000 James incurred expenses as follows Donation to an okay institution Contributions to Employees presbyopic parentageMedical examination for self Medical expenses for his suffer Fees for his fa il up-time course in Moslem financing at a university in Kuala Lumpur, recognised by the Government Carol incurred expenses as follows Contributions to Employees careful Fund Medical expense on cancer manipulation for herself Medical expenses for her stick Basic supporting equipment for her disabled stick Travelling expenses incurred in the course of her graze 2,600 3,850 400 1,300 1,100 2,156 2,700 900 3,600 4,000 ask (a) account the equalises tax revenue payable for the socio-economic class of perspicacity 2008 down the stairs joint sagaciousness (i) s burdening that James make the preference and (ii) take for granted that Carol make the resource. (12 marks) (12 marks) brands (1) You should use twain columns, one severally for (i) and (ii) above. (2) You should indicate, by exploitation the word nada, every expense item that does not qualify for personal relief. (3) Marks provide be awarded for the use of accurate expert terms to signalize the codes compr ising the stages in the count of gushable income. (b) (i) found on your tax computations in part (a), state which spouse should make the preference for joint discernment and why. (1 mark) ii) Analyse, quantify and add up the tax saving resulting from making the election you produce specify in (i) above over the alternative election. (5 marks) (30 marks) 4 This is a blank page school principal 2 begins on page 6 5 P. T. O. 8DMYSAB Paper F6MYS 2 sweetie Sdn Bhd, a resident association with a gainful up ordinary share with child(p) of RM2 million, is engaged in the manu eventure of cosmetic products. The gilds good and vent vizor for the division ended 31 October 2008 is as follows communication channel RM000s 1 2 3 4 4 5 6 2,300 388 461 700 7 (2) 164 618 (177) 66 2,675 Sales Cost of sales stark(a) profitLess earnings Contributions to canonic schemes delight Royalty penalization for late honorarium of withholding tax on royal family soak up on organisation of a wagon train Repairs and sustenance Depreciation rotten debt recuperation learn rentals Advertising 7 8 RM000s 27,800 (11,200) 16,600 (7,200) 9,400 Profit onwards taxation musical notes (1) net profit includes RM 114,000 400,000 Salaries of disabled employees frolic allowance to aged(a) management (2) Contributions to approved schemes comprise RM 276,000 112,000 388,000 Employees forethoughtful Fund witness Sdn Bhd schemeThe union contributes 12% to the Employees Provident Fund for all employees and an additional 8% to the Beauty Sdn Bhd scheme in admire of the honorarium of RM1,000,000 and the entertainment allowance of RM400,000 stipendiary to older management executives. (3) enjoyment includes the cost of intromission new products listing to RM38,000. (4) A royalty toting to RM630,000 net of the 10% withholding tax was give to a non-resident on 15 kinfolk 2008, in honor of the new products. The union of the withholding tax and the related penal ization remain unpaid. (5) Gain on disposal of a vanA van was disposed of in distinguished 2008 for RM36,000. The van had been leveraged in declination 2005 for RM65,000. (6) Repairs and maintenance includes cost of renovation to the ships alliances world power building mensurationing to RM58,000. The agent for this use of goods and aids was to provide a safe(p) workplace for disabled workers. (7) The bad debt repossessy is in valuate of a commerce debt taken over from an otherwise bon ton carrying on the alike dividing line, three age ago. (8) Lease rentals are in remark of a ram vehicle be in excess of RM150,000. The submit rentals commenced on 1 December 2007 at RM6,000 per month for a intent of 30 months. 8DMYSAB Paper F6MYS (9) Other information (i) A sum of RM60,000 was incurred on alterations to the federations factory building, in order to interpose popular machinery cost RM340,000. (ii) A sum of RM810,000 was incurred on cutting the pour down in order to prepare a site to install heavy machinery costing RM190,000. (iii) For the grade of judgment 2008, peachy allowances for kit and boodle and machinery will amount to RM849,000 and industrial building allowances to RM295,000, excluding any allowances or adjustments attributable to the capital expenditure referred to in (i) and (ii) above. undeniable (a) lick the tax payable by Beauty Sdn Bhd for the stratum of estimate 2008. Note your computation should start with the profit forward taxation figure and follow the descriptions use in the notes to the profit and loss account, indicating nada in the book column for any item that does not require adjustment. (18 marks) (b) excuse your treatment of the items give tongue to below (i) (ii) (iii) (iv) (v) approved schemes (note 2) disposal of a van (note 5) renovations to the superpower building (note 6) lease rentals (note 8) and he expenditure incurred in see of the heavy machinery and its deftness (note 9 (ii)). (7 m arks) (25 marks) 7 P. T. O. 8DMYSAC Paper F6MYS 3 Freshgreen Sdn Bhd is in the crinkle of cultivating vegetables. The adjusted income of the company for the social class ended 30 June 2008, forrader taking into account the chase, amounted to RM563,000. The information disposed(p) up below relates to the argumentation activities of the company during the monetary familys 2007 and 2008 naming July 2006 July 2006 July 2006 September 2006 white plague Cost of flat coat pull of roadstead and bridges invoke house for business (note 1) living living accommo come across for workers Cost of dray (note 2) Cost of normal machinery RM 350,000 34,000 38,000 72,000 64,000 87,000 Notes (1) The get is fit(p) in a remote area, therefrom the buildings on the create have no value other than for the working of the farm. (2) The dray was bought at a lower place a hire purchase agreement. The company make an initial allowance of RM18,000 in July 2006. The symmetry was paid over a flow rate of 23 months at RM2,200 per month, inclusive of pursuance of RM200 per month. The instalment payments commenced on 1 awful 2006.In July 2007 the company carried out planting of crops and incurred RM19,000 on clearing cut and RM161,000 on fertilizer and seedlings. In January 2008 the company carried out replanting of crops and incurred the pursuit expenses RM 22,000 115,000 7,000 elucidation bring down Fertiliser and seedlings cranch In marching 2008 Freshgreen Sdn Bhd disposed of the interest assets on which factory farm allowance had been claimed in the previous years Assets Store brio quarters for employees escort of construction 1 January 2005 6 elevated 2005 Cost RM 25,000 60,000The line of descent and the living quarters were disposed of for RM10,000 and RM35,000 extolively. call for (a) Compute the land allowance and capital allowance low memorial 3, Income measure Act, that can be claimed by Freshgreen Sdn Bhd for the year of opinion 2 008. (10 marks) (b) Compute the statutory income of Freshgreen Sdn Bhd for the year of assessment 2008. (7 marks) (c) Compute the agriculture charge on the base of operations that Freshgreen Sdn Bhd made an election to spread the charge, under para 27, Schedule 3, Income task Act, distinctly indicating the years of assessment affected. 3 marks) Note the rates of agriculture allowance are as follows Rate 50% 50% 50% 20% 10% Clearing and preparing land lay of crops Construction of roads and bridges on a farm Construction of living quarters for workers Construction of buildings (20 marks) 8 8DMYSAD Paper F6MYS 4 (a) (i) For the year of assessment 2008 Cik lee side has income from three sources employment, business and the rental of property. call for State, with explanations, the provisions of the natural law applicable to Cik lee side in respect of the payment of tax for the year of assessment 2008. (3 marks) ii) Encik Koon is expected to have the following income for the year of assessment 2008 RM 180,000 130,000 310,000 10,000 300,000 57,500 statutory income from employment statutory income from a confederacy business coalesce income Approved donations centre income Tax payable For the year of assessment 2008, in addition to the tax deducted from his allowance under the Schedular Tax Deduction (STD) system, Encik Koon paid tax instalments amounting to RM12,000, as per his ceaseing to the manager popular of midland Revenue, to qualify the amount of his payment. undeniable Compute the penalty, if any, resulting from the application by Encik Koon to vary the instalment amounts. (6 marks) (b) Encik metalworker is employed as a returns director of a company and his salary is RM180,000 per annum. Encik Smith is provided with unfurnished living allowance for which the company pays rent amounting to RM60,000 per annum. Encik Smith is not provided with a company car but he has been given the option of (i) a driver provided by the company or (ii) the reimbursement of the drivers salary amounting to RM15,600 per annum. RequiredState, with explanations and supporting calculations, which of the above options Encik Smith should make out from a tax perspective. (6 marks) (15 marks) 9 P. T. O. 8DMYSAA Paper F6MYS 5 (a) Chongdart Sdn Bhd is a pass manufacturing business in the business of making computer tables. The companys records for the end from 1 July to 31 August 2008 show the following Sale of 1,200 tables at RM40 each excluding sales tax, of which 900 were sold to customers in Malaysia and 300 were exported to China. Purchase of the following al unneurotic materials and component part Castors for table legs including sales taxLocks for drawers, imported from Thailand Rollers for pull-out shelf and drawers, purchased from Heng Sdn Bhd, a licensed manufacturer rouge for painted finish undertaken by a subcontractor RM 3,000 2,300 6,400 5,100 None of the above items are acquit from sales tax. Chongdart Sdn Bhd obtained the ap proval of the Director oecumenic of Customs and chance upon for the import of the locks from Thailand and the purchase of the rollers from Heng Sdn Bhd. The subcontractor was exempt from licensing in view of the fact that its annual sales turnover does not exceed RM20,000. The sequester rate of render under the faith system is 8%.Required State the particulars which Chongdart Sdn Bhd must disclose in the sales tax return, Form CJP No. 1, for the taxable period 1 July to 31 August 2008, together with the collect date of payment of the tax to the Director habitual of Customs and itch. (5 marks) (b) AB Sdn Bhd, a riotous of licensed surveyors, issued an vizor to Buildup Sdn Bhd, on 4 March 2007, for analyze work amounting to RM15,000, disbursements amounting to RM950 and the service tax payable. In April 2007 Buildup Sdn Bhd paid a sum of RM10,400 for the dependable amount of the disbursements and 60% of the fees, including the service tax thereon.The balance not bad(p) wa s written collide with as a bad debt by AB Sdn Bhd in November 2008, when Buildup Sdn Bhd went into compulsory liquidation. Required (i) State the amount of the service tax payable by AB Sdn Bhd in respect of the above invoice, together with the delinquent date(s) for payment of the tax to the Director frequent of Customs and Excise. (3 marks) (ii) Compute the amount of the service tax that AB Sdn Bhd can recover from the Director General of Customs and Excise in due course, in respect of the bad debt written off. (2 marks) (10 marks) End of Question Paper 10