Q.
As an estate agent you are invited to give an opinion in a discussion regarding legislations that give an impact to property owners. Discuss the followings:-
a) Development Charge under the Town and Country Planning Act, 1976. (10 marks)
b) Ratings under the Local Government Act 1976. (15 marks)
(25 marks, 2011 Q1)
Showing posts with label 2011 D04 Tax. Show all posts
Showing posts with label 2011 D04 Tax. Show all posts
Monday, February 2, 2015
Stamp Duty & RPGT Calculation Q2
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)
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)
Capital Allowance 1 Q3
Q.
a. Capital allowance is an allowance allowed by the Inland Revenue Board to replace the fixed asset depreciation from the gross business income. Explain two (2) following components of capital allowances.
i. Initial allowance
ii. Yearly allowance
(10 marks)
b. Income arising from property, movable or immovable, situated in Malaysia is taxable under section 4(d) of the Income Tax Act 1967. Rental income has always been considered as a non-business source.
Using appropriate examples, explain what the deductible expenses from rental income are.
(15 marks)
(25 marks, 2011 Q3)
a. Capital allowance is an allowance allowed by the Inland Revenue Board to replace the fixed asset depreciation from the gross business income. Explain two (2) following components of capital allowances.
i. Initial allowance
ii. Yearly allowance
(10 marks)
b. Income arising from property, movable or immovable, situated in Malaysia is taxable under section 4(d) of the Income Tax Act 1967. Rental income has always been considered as a non-business source.
Using appropriate examples, explain what the deductible expenses from rental income are.
(15 marks)
(25 marks, 2011 Q3)
RPGT and Appeal Q4
Q.
Mrs Suria purchased a double storey terrace house at Subang Perdana from Mrs Asiah on 30 April, 2008 at a purchase price of 20% higher than the market value. Mrs Asiah was awarded the house by the State of Selangor as an appreciation for her achievement in obtaining gold medal in the national sport event.
Mrs Suria then sold the house to Mr Wong on 30 November, 2010. The market value of similar properties is at RM550,000. However, Mrs Suria only sold the house for RM450,000 because she needed the money urgently to cover her medial expenses.
a) Explain the property tax involved in the above case. (15 marks)
b) If Mr Wong is not satisfied with the amount of duty to be paid, explain the actions than can be taken by him. (10 marks)
(25 marks, 2011 Q4)
Mrs Suria purchased a double storey terrace house at Subang Perdana from Mrs Asiah on 30 April, 2008 at a purchase price of 20% higher than the market value. Mrs Asiah was awarded the house by the State of Selangor as an appreciation for her achievement in obtaining gold medal in the national sport event.
Mrs Suria then sold the house to Mr Wong on 30 November, 2010. The market value of similar properties is at RM550,000. However, Mrs Suria only sold the house for RM450,000 because she needed the money urgently to cover her medial expenses.
a) Explain the property tax involved in the above case. (15 marks)
b) If Mr Wong is not satisfied with the amount of duty to be paid, explain the actions than can be taken by him. (10 marks)
(25 marks, 2011 Q4)
Allowable grounds on Objection to Assessment Tax Q5
Q.
Any person aggrieved on any of the allowable grounds provided in the Local Government Act 171 (1976) may make objection in writing to the local authority at any time not less than fourteen (14) days before the time fixed for the revision of the Valuation List. (cukai assessmen (kadaran)
Using appropriate examples, explain five (5) grounds of objections that can be taken.
(25 marks, 2011 Q5)
Any person aggrieved on any of the allowable grounds provided in the Local Government Act 171 (1976) may make objection in writing to the local authority at any time not less than fourteen (14) days before the time fixed for the revision of the Valuation List. (cukai assessmen (kadaran)
Using appropriate examples, explain five (5) grounds of objections that can be taken.
(25 marks, 2011 Q5)
Stamp Duty 2 Q6
Q.
In general, stamp duty is payable on instruments executed in Malaysia or if executed outside Malaysia, when bought into Malaysia. Duty is payable at varying rates.
Using appropriate examples, explain the following stamp duty:
a) Fixed duty (10 marks)
b) Ad Valorem duty (15 marks)
(25 marks, 2011 Q6)
In general, stamp duty is payable on instruments executed in Malaysia or if executed outside Malaysia, when bought into Malaysia. Duty is payable at varying rates.
Using appropriate examples, explain the following stamp duty:
a) Fixed duty (10 marks)
b) Ad Valorem duty (15 marks)
(25 marks, 2011 Q6)
Calculation of Premium on Land Q7
Q.
a) Land alienation premium is determined by the State Authority upon approval of land alienation to either individual or body. The calculation of premium depends on five (5) main factors.
Using appropriate examples, explain the above factors. (10 marks)
b) Additional premium will be imposed if the State Authority approved a number of categories of application. Clarify the meaning of additional premium and explain the situations where additional premium is imposed. (15 marks)
(25 marks, 2011 Q7)
a) Land alienation premium is determined by the State Authority upon approval of land alienation to either individual or body. The calculation of premium depends on five (5) main factors.
Using appropriate examples, explain the above factors. (10 marks)
b) Additional premium will be imposed if the State Authority approved a number of categories of application. Clarify the meaning of additional premium and explain the situations where additional premium is imposed. (15 marks)
(25 marks, 2011 Q7)
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