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PART A: STRUCTURED QUESTIONS (60 MARKS)

Answer SEVEN (7) questions Question 1 Briefly explain FOUR (4) differences between a resident and a-nonresident individual for tax purposes are as follows. (8 marks)

Question 2 Discuss FOUR (4) situations when the assessments become final and conclusive. (8 marks)

Question 3 Explain the FOUR (4) commencement of an audit. (8 marks) Question 4 Give definition of FOUR (4) types of income. (8 marks) Question 5 Define the term incapacitated persons- section 69 of the Income Tax Act (8 marks)

Question 6 Explain the Five (5) procedures of appeal under the Income Tax Act. (10 marks)

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Question 7

Define FIVE (5) types of assessments. (10 marks)

PART B: ESSAY QUESTIONS (40 MARKS) Answer any TWO questions ONLY Question 1 George, an American national, arrived in Malaysia on 11 March 2003 and left Malaysia permanently on 30 September 2008. Details of his stay in Malaysia are as follows:Year 2003 2004 2005 2006 2007 2008 Date Days

11 March to 6 September 180 1 July 31 December 184 1 January to 5 January 5 3 June to 21 August 80 1 September to 10 October 40 1 April to 10 April 10 21 March to 19 May 60 1 June to 29 September 121 Left Malaysia permanently on 30 September at noon.

Required a. State each year which you consider George to be a resident in Malaysia, in each case give reason or quote the relevant sub-section of the Income Tax Act, 1967 (10 marks) b. State the circumstance s in which temporary absence from Malaysia would be accepted as part of the period of at last 182 consecutive days for propose of determining the residence status of an individual. (10 marks)

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Question 2 Malvern Sdn Bhd makes up its accounts each year to December 31. For the year 31 December 2009 it had the following:Business 1 RM000 Business Income Gross Income Expenditure (Note) Capital allowances Balancing Charge Capital Allowances brought forward Loss brought forward Other income Rental Note: Included in expenditure for the year were the following: Business 1 Rm 000 100 25 Business 11 Rm 000 180 45 2000 2,400 70 100 20 Business 11 RM000 3000 2,400 310 125 RM000 130 70

Non deductible Expenditure Approved Donation Required:

In accordance with section 5 of the Act which provides for the manner in which chargeable income is to be ascertained, you are required to compute chargeable income of Malvern Sdn Bhd in respect of the year of assessment 2009. (20 marks)

Question 3 Explain the responsibility and chargeability of an agent under the Income Tax Act. (20 marks)

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End of Exam Questions Paper