'Acca F6\r'

' valuate (Malaysia) Monday 1 December 2008 Time completelyowed Reading and be after: Writing: 15 minutes 3 hours exclusively FIVE dubietys are compulsory and moldiness be attempted. taskation rank and perimeters are on pages 2â€3. Do non open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall. The Association of Chartered assured Accountants idea F6 (MYS) Fundamentals Level †Skills Module 8Dâ€MYSTT overboldspaper publisher F6MYS SUPPLEMENTARY INSTRUCTIONS . 2. 3. Calculations and run awaying(a)s should be do to the warm RM. All apportionments should be made to the nearest whole month. All workings should be shown. impose RATES AND ALLOWANCES The determineing task rates, allowances and honors are to be workd in answering the questions. I ncome value rates Resident single Chargeable income ring Cumulative 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 Excess Tax payable lay kayoed 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 comp whatsoever give up public share capitalFirst RM500,000 20% 26% RM2,500,000 or less More than RM2,500,000 Non- occupant Company case-by-case Excess over RM500,000 26% 26% 26% 28% Personal deductions Self Self †additive if disabled Spouse Spouse †additional if disabled Child †basic rate Child †higher(prenominal) rate Disabled kid Life damages premiums and approved scheme contributions health check expenses for pa hang-ups checkup expenses for earnest disease of self, partner or child, including up to RM500 for medical checkup examination Basic supporting equipment for self, spouse, child or parent if disabled Educational and medical restit ution for self, spouse or childStudy course fees for skills or qualifications buy of a personalized computer acquire of books, magazines etc for personal use Purchase of sports equipment Deposit for a child into the National Education Savings Scheme 2 maximal maximum RM 8,000 6,000 3,000 3,500 1,000 4,000 5,000 6,000 5,000 maximum maximum maximum maximum maximum maximum maximum maximum 5,000 5,000 3,000 5,000 3,000 1,000 300 3,000 8Dâ€MYSTT radical F6MYS Rebates Individual with chargeable income not exceeding RM35,000 Basic rate Rate for an individual entitled to a deduction for a spouse or a former wife RM 350 700Value of benefits in kind Car and fuel scale appeal of railway 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 higher up Prescribed annual value of private usage of car RM 1,200 2, cd 3,600 5,000 7,000 9,000 15,000 21,250 25,000 rai se per annum RM 600 900 1,200 1,500 1,800 2,100 2,400 2,700 3,000 The value of the car benefit equal to fractional the prescribed annual value (above) is taken if the car provided is more than five (5) historic fulfilment old, but the value of fuel provided remains unchanged.Household furnishings, ap parity bittus and appliances RM per month Semi-furnished with article of furniture in the lounge, dining room, or bedroom 70 Semi-furnished with furniture as above plus air-conditi unrivalledrs, and/or curtains and carpets 140 Fully furnished premises 280 national help 400 Gardener 300 number one wood 600 Telephone (fixed or mobile): RM per annum 300 300 ironware Bills Capital allowances Industrial buildings Plant and machinery †general drive vehicles, moody machinery Computers, information technology equipment and computer software program Office equipment, furniture and fittings Initial Rate % 10 20 20 20 20 annual Rate % 14 20 40 10 Sales tax and gain tax rates Rat e % 10 5 Sales tax Service tax 3 [P. T. O. 8Dâ€MYSPA penning F6MYS 8Dâ€MYSAA Paper F6MYS ALL FIVE questions are compulsory and MUST be attempted 1 mob and chirp are husband and wife. James is disabled. The income and expenses of James and chirp for the category ended 31 December 2008 are expected to be as follows: RM James eon †Salary 35,000 Carol Partnership lineage †statutory income Employment †Salary Travelling allowance 4,350 16,600 3,000 James incurred expenses as follows: Donation to an approved institution Contributions to Employees careful FundMedical examination for self Medical expenses for his male parent Fees for his half-time course in Islamic financing at a university in Kuala Lumpur, recognised by the governing body Carol incurred expenses as follows: Contributions to Employees Provident Fund Medical expense on cancer treatment for herself Medical expenses for her mother Basic supporting equipment for her disabled father Travelling exp enses incurred in the course of her work 2,600 3,850 400 1,300 1,100 2,156 2,700 900 3,600 4,000 Required: (a) Compute the couple’s tax payable for the social class of sound judgment 2008 under pronounce discernment: (i) s spiriting that James made the election; and (ii) presume that Carol made the election. (12 marks) (12 marks) Notes: (1) You should use two columns, one distributively for (i) and (ii) above. (2) You should indicate, by using the word ‘ zero’, any expense peak that does not fix for personal relief. (3) Marks will be awarded for the use of accurate technical terms to describe the figures comprising the stages in the computation of chargeable income. (b) (i) Based on your tax computations in part (a), state which spouse should extend to the election for joint assessment and why. (1 mark) ii) Analyse, quantify and take up the tax saving resulting from making the election you ache specified in (i) above over the alternative election. (5 marks) (30 marks) 4 This is a blank page interrogative sentence 2 begins on page 6 5 [P. T. O. 8Dâ€MYSAB Paper F6MYS 2 strike Sdn Bhd, a resident community with a paid up ordinary share capital of RM2 million, is engaged in the even up of cosmetic products. The company’s profit and acquittance account for the twelvemonth ended 31 October 2008 is as follows: Note RM000’s 1 2 3 4 4 5 6 2,300 388 461 700 7 (2) 164 618 (177) 66 2,675 â€â€â€â€â€â€ Sales Cost of sales blunt profitLess: earnings Contributions to approved schemes Entertainment royalty Penalty for late payment of withholding tax on royalty Gain on administration of a wagon train Repairs and maintenance Depreciation mischievousness debt recovery Lease rentals Advertising 7 8 RM000’s 27,800 (11,200) â€â€â€â€â€â€â€â€ 16,600 (7,200) â€â€â€â€â€â€â€â€ 9,400 â€â€â€â€â€â€â€â€ Profit before taxation Notes: (1) Remuneration includes: RM 114,000 400,000 Salaries of disabled employees Entertainment allowance to senior commission (2) Contributions to approved schemes comprise: RM 276,000 112,000 â€â€â€â€â€â€â€â€ 388,000 â€â€â€â€â€â€â€â€ Employees Provident Fund steady Sdn Bhd schemeThe company contributes 12% to the Employees Provident Fund for all employees and an additional 8% to the Beauty Sdn Bhd scheme in detect of the remuneration of RM1,000,000 and the entertainment allowance of RM400,000 paid to senior management executives. (3) Entertainment includes the cost of intro new products billing to RM38,000. (4) A royalty pithing to RM630,000 net of the 10% withholding tax was paid to a non-resident on 15 September 2008, in discover of the new products. The amount of the withholding tax and the related penalization remain unpaid. (5) Gain on disposal of a caravanA van was disposed of in rarefied 2008 for RM36,000. The van had been bribed in December 2005 for RM65,000. (6) Repairs and maintenance includes costs of religious service to the company’s finish upice building amounting to RM58,000. The power for this disbursement was to provide a safe body of work for disabled workers. (7) The bad debt recovery is in respect of a trade debt taken over from some other company carrying on the same business, three age ago. (8) Lease rentals are in respect of a motor vehicle costing in additional of RM150,000. The lease rentals commenced on 1 December 2007 at RM6,000 per month for a period of 30 months. 8Dâ€MYSAB Paper F6MYS (9) Other information (i) A sum of RM60,000 was incurred on alterations to the company’s factory building, in regularize to install general machinery costing RM340,000. (ii) A sum of RM810,000 was incurred on cutting the lower in order of magnitude to prepare a site to install heavy machinery costing RM190,000. (iii) For the year of assessment 2008, capital allowances for be and machinery will amount to RM849,000 and industrial building allowances to RM295,000, excluding any allowances or adjustments attribu display board to the capital expenditure referred to in (i) and (ii) above.Required: (a) Compute the tax payable by Beauty Sdn Bhd for the year of assessment 2008. Note: your computation should pioneer with the profit before taxation figure and follow the descriptions used in the notes to the profit and loss account, indicating ‘ secret code’ in the appropriate column for any item that does not require adjustment. (18 marks) (b) Explain your treatment of the items say below: (i) (ii) (iii) (iv) (v) approved schemes (note 2); disposal of a van (note 5); renovations to the office building (note 6); lease rentals (note 8); and he expenditure incurred in respect of the heavy machinery and its installation (note 9 (ii)). (7 marks) (25 marks) 7 [P. T. O. 8Dâ€MYSAC Paper F6MYS 3 Freshgreen Sdn Bhd is in the business of cultivating ve getables. The adjusted income of the company for the year ended 30 June 2008, before taking into account the adjacent, amounted to RM563,000. The information precondition below relates to the business activities of the company during the financial years 2007 and 2008: Date July 2006 July 2006 July 2006 September 2006 Expenditure Cost of set ashore Construction of: †roads and bridges provoke home for business (note 1) †alive canton for workers Cost of lorry (note 2) Cost of general machinery RM 350,000 34,000 38,000 72,000 64,000 87,000 Notes: (1) The farm is situated in a remote area, thus the buildings on the farm have no value other than for the working of the farm. (2) The lorry was bought under a hire purchase agreement. The company made an initial payment of RM18,000 in July 2006. The balance was paid over a period of 23 months at RM2,200 per month, inclusive of interest of RM200 per month. The share payments commenced on 1 August 2006.In July 2007 the compan y carried out planting of crops and incurred RM19,000 on clearing land and RM161,000 on fertiliser and seedlings. In January 2008 the company carried out replanting of crops and incurred the following expenses: RM 22,000 115,000 7,000 Clearing land Fertiliser and seedlings Labour In March 2008 Freshgreen Sdn Bhd disposed of the following assets on which land allowance had been claimed in the previous years: Assets retentiveness Living quarters for employees Date of construction 1 January 2005 6 August 2005 Cost RM 25,000 60,000The store and the living quarters were disposed of for RM10,000 and RM35,000 respectively. Required: (a) Compute the tillage allowance and capital allowance under enrolment 3, Income Tax Act, that can be claimed by Freshgreen Sdn Bhd for the year of assessment 2008. (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 behind that Freshgreen Sdn Bhd made an el ection to spread the charge, under para 27, Schedule 3, Income Tax Act, clearly 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 Planting of crops Construction of roads and bridges on a farm Construction of living quarters for workers Construction of buildings (20 marks) 8 8Dâ€MYSAD Paper F6MYS 4 (a) (i) For the year of assessment 2008 Cik lee has income from three sources: employment, business and the rental of property. Required: state of matter, with explanations, the provisions of the law applicable to Cik Lee 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 partnership business Aggregate income Approved donations chalk up income Tax payable For the year of assessment 2008, in addition to the tax deducted from his remuneration under the Schedular Tax Deduction (STD) system, Encik Koon paid tax divisions amounting to RM12,000, as per his industry to the Director General of Inland Revenue, to vary the amount of his payment.Required: 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 service director of a company and his salary is RM180,000 per annum. Encik Smith is provided with unfurnished living accommodation 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 driver’s salary amounting to RM15,600 per annum. Required:State, with explanations and supporting calculations, which of the above options Encik Smith should choose from a tax perspective . (6 marks) (15 marks) 9 [P. T. O. 8Dâ€MYSAA Paper F6MYS 5 (a) Chongdart Sdn Bhd is a licenced maker in the business of making computer tables. The company’s records for the period 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 raw materials and component parts: 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 Paint for painted finish undertaken by a subcontractor RM 3,000 2,300 6,400 5,100 None of the above items are absolve from sales tax. Chongdart Sdn Bhd obtained the approval of the Director General of usance and Excise 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 tha t its annual sales disturbance does not exceed RM20,000. The appropriate rate of pay back under the credit 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 imputable date of payment of the tax to the Director General of usance and Excise. (5 marks) (b) AB Sdn Bhd, a firm of licensed surveyors, issued an score to Buildup Sdn Bhd, on 4 March 2007, for surveying 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 full amount of the disbursements and 60% of the fees, including the service tax thereon.The balance outstanding was written off 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, toge ther with the due date(s) for payment of the tax to the Director General of usance and Excise. (3 marks) (ii) Compute the amount of the service tax that AB Sdn Bhd can recover from the Director General of tradition and Excise in due course, in respect of the bad debt written off. (2 marks) (10 marks) End of Question Paper 10\r\n'