Pre-challenge - Deloitte Tax Challenge 2019

The statement that "The disposal of a property located outside Malaysia, by a Malaysian citizen, is not subject to RPGT" is true. RPGT is a tax imposed on the gains from the disposal of real property in Malaysia. Therefore, if a Malaysian citizen sells a property located outside of Malaysia, they would not be subject to RPGT.

The income tax payable by the company in Malaysia for the year of assessment 2018 is RM132,000. This can be calculated by applying the corporate tax rate of 24% to the chargeable income of RM550,000. Therefore, 24% of RM550,000 is equal to RM132,000.

If C was 10 years old 4 years back, currently C would be 10 + 4 = 14 years old. B is 3 times as old as C, so B would be 14 * 3 = 42 years old. A is 5 years younger than B, so A would be 42 - 5 = 37 years old currently. After 6 years, A would be 37 + 6 = 43 years old. Therefore, the correct answer is 43.

Option 2 correctly describes indirect taxation as taxes charged by businesses on the supplies they make to consumers and other businesses. Option 4 also correctly describes indirect taxation as duties and taxes payable by an importer at the time of importation of goods. Therefore, the correct answer is 2 and 4.

The antonym of "provocation" is "pacification" because provocation refers to the act of inciting or irritating someone, while pacification refers to the act of calming or soothing someone. These two words have opposite meanings as provocation involves stirring up conflict or anger, whereas pacification involves promoting peace and tranquility.

Buildings (1), (2), and (3) all qualify for industrial building allowance. Building (1) is used to store finished goods within the same curtilage as the factory that produces the finished goods, making it eligible for the allowance. Building (2) is used to store raw materials within the same curtilage as the factory that uses the raw materials, also making it eligible. Building (3) is used to store imported products that are to be processed and distributed, which meets the criteria for industrial building allowance. Therefore, all three buildings qualify for the allowance.

To sell the article at the original price after a 20% discount, the discounted price must be increased by the same percentage. Since the discounted price is 80% of the original price (100% - 20% = 80%), the discounted price needs to be increased by 25% (100% - 80% = 20%, and 20% / 80% = 25%) to reach the original price. Therefore, the correct answer is 25%.

Candy's statutory income from royalties for the year of assessment 2018 is RM10,000. This is because the question states that Candy derived royalties from Malaysia, indicating that the royalties are subject to Malaysian taxation. In Malaysia, the statutory income from royalties is calculated by adding together the royalties from musical composition and published literary books, which in this case equals RM24,000 + RM26,000 = RM50,000. However, as a non-resident individual, Candy is entitled to a 50% exemption on her statutory income from royalties. Therefore, Candy's taxable statutory income from royalties is RM50,000 * 50% = RM25,000. However, since the question asks for the statutory income, the correct answer is RM10,000, which is the amount after applying the exemption.

ABC Sdn Bhd's first year of assessment is 2018 because it commenced trading on 1 November 2016 and closed its first set of accounts on 31 January 2018. The first basis period is from 1 November 2016 to 31 January 2018, which aligns with the company's trading period. The due date of the tax estimate for this basis period is within three months of commencement to trade, indicating that the company is required to submit its tax estimate within three months of starting its business operations.

Albert and Catherine sold a jointly owned Malaysian property, which they had purchased four and a half years ago for a total of RM2 million. The property was sold for RM3 million on 30 June 2018. Since they are Malaysian citizens, they are subject to real property gains tax (RPGT) on the disposal of the property. The RPGT rate for individuals who are Malaysian citizens and have owned the property for more than 3 years but less than 4 years is 15%. Therefore, the total RPGT payable in this case would be 15% of the gain, which is RM1 million (RM3 million - RM2 million), resulting in RM135,000.

The total amount of withholding tax levied on the payments made by XYZ Sdn Bhd in the financial year ended 31 October 2018 is RM10,100. This is because the withholding tax is applicable to payments made to non-resident companies, such as Qatar Corporation, for maintenance services and out of pocket expenses. The fee for maintenance services (RM100,000) and the out of pocket expenses (RM1,000) are subject to withholding tax. However, the payment made to Movers Sdn Bhd, a resident company, is not subject to withholding tax. Therefore, the total withholding tax levied is RM10,100.

An employer takes into account the tax residence status of the employee and the number of children when determining the amount of monthly tax deduction from an employee's remuneration. The tax residence status of the employee is important because it determines the tax laws and rates that apply to the employee. The number of children is also considered as it can affect the employee's eligibility for certain tax deductions or credits. The spouse's tax residence status, however, is not relevant in this determination.

The correct answer is that the annuity is deemed derived from Malaysia. This means that regardless of where the individual died, the annuity income is considered to have originated from Malaysia for tax purposes.

If 15 men take 21 days of 8 hours each to do a piece of work, it means that the total work requires 15 men * 21 days * 8 hours = 2520 man-hours.

Given that 3 women do as much work as 2 men, we can assume that the work done by 1 woman is equivalent to 2/3 of the work done by 1 man.

To find out how many days of 6 hours each 21 women would take, we can calculate the total woman-hours required.

Since 1 woman-hour is equivalent to 2/3 of a man-hour, the total woman-hours required would be 2520 man-hours * (3/2) * (3/2) = 5670 woman-hours.

Dividing the total woman-hours by the number of woman-hours worked per day (6 hours), we get 5670 woman-hours / 6 hours = 945 days.

Therefore, 21 women would take 945 days of 6 hours each to complete the work, which is equivalent to 30 days.

The correct answer is "None of the above." This is because all of the given options describe used buildings that are being used for different purposes, but none of them are specifically industrial buildings. The first option mentions a used building purchased in Cyberjaya and rented to an approved MSC status company, which does not necessarily make it an industrial building. The other options mention a building used as an old folks care center and a kindergarten, which are not considered industrial buildings either. Therefore, none of the given options are considered industrial buildings.

The correct answer is "All of the above." This means that all of the statements mentioned in the options are correct. In order for a company to receive an incentive for providing private healthcare services in a new private healthcare facility, the project must be approved by the Minister of Health, registered with the Malaysia Healthcare Travel Council, and have at least 5% of the number of patients as health travelers.

Karim's total income for the year of assessment 2018 is RM53,000. This can be calculated by adding up his salary from employment (RM48,000) and his rental receipts for letting the apartment (RM6,000). The other expenses, such as employment allowance, work-related travel expenses, quit rent, assessment, and repairs, are not considered as income and should not be included in the calculation. Therefore, the correct answer is RM53,000.

The correct answer is "Statutory income of a Malaysian Branch of a non-resident bank will include all income wherever accruing or derived." This statement is incorrect because the statutory income of a Malaysian Branch of a non-resident bank will only include income derived from sources within Malaysia, not all income wherever accruing or derived.

James is considered a tax resident in Malaysia in 2017 only because he arrived in Malaysia on 1 August 2017 and was physically present in the country until 10 July 2018. However, his 20-day absence in February 2018, when he was in Singapore meeting with his employer's clients, does not disqualify him from being a tax resident in Malaysia for the year 2017.

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