Disposal Price deemed Market Value Q3

Q.
(a) Explain five (5) situations in which the disposal price shall be deemed at Market Value in the imposition of Real Property Gains Tax. (10 marks)

(b) Daud bought a double storey terraced house on 20th August 2011 for RM400,000. One month later, the car porch leaned and Daud succeeded in recovering RM10,000 by way of damages from the developer. In September, 2013, he made a renovation to the house costing RM50,000. In November the same year, Haikal entered into an agreement to buy the property and he paid a deposit of RM30,000. However, Haikal failed to secure a bank loan and the sale was aborted and the deposit was forfeited. In June, 2014, Daud sold the property for RM700,000 and incurred the following expenses for the sale:

Valuation fee-----------------RM6,700
Cost of advertisement-------RM1,200
Agency fee--------------------RM10,000

Calculate Real Property Gains Tax payable by Daud. (15 marks)

(25 marks, 2015 Q3)

A.

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