Q.
Calculate the stamp duty and real property gains tax that need to be paid for the following transactions and explain who are responsible to settle the payment.
a) Mr Hadi purchased a bungalow located at Puncak Alam through public auction at final bidding price of RM400,000 on 1 April, 2008. Market value for similar property as of the date of purchase is RM600,000. On 1 November, 2008, Mr Hadi spent RM150,000 for renovation works. He intended to sell his house. Mr Chin offered him to purchase the house at RM850,000. However, Mr Hadi is not agreeable to Mr Chin's offer and sold the house to Mr Gopal for RM900,000 on 1 March, 2011. (10 marks)
b) Adi Putra purchased a parcel of agricultural land encompassing an area of one (1) acre on 1 Jun, 2009 at RM100,000. He submitted an application for conversion to change the category of land use to building and paid an additional land premium of RM70,000. Adi Putra obtained planning permission to subdivide his lot into four (4) lots measuring 10,000 square feet each. He sold two (2) lots to his sons Daniel and Darry at a price of RM100,000 each, one (1) to his wife Aminah for love and affection and the other lot to his business partner, Mr Salim for RM250,000. All the transactions were made on 1 February, 2011. Market value for bungalow plot in the vicinity is at RM25,000 per square foot. (15 marks)
(25 marks, 2011 Q2)
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