Q.
You are required to advise the owners of the following holdings in relation to the properties' assessment:-
a) Madam Aminah, the owner of a factory building located at Mukim of Kapar, Selangor has received a notice on a proposed Annual Value for her premise. She intends to object the proposed Annual Value. Explain the basis of objection that she can give. (10 marks)
b) The Persatuan Ibu Tunggal Melati has received a notice on the imposition of rates on their premise under the current re-valuation work of the local authority in their area. The association wishes to make an appeal so that their premise is excluded from being imposed the rates. Discuss this case and elaborate the matters that can be excluded from rates imposition. (15 marks)
(25 marks, 2014 Q1)
Showing posts with label 2014 D04 Tax. Show all posts
Showing posts with label 2014 D04 Tax. Show all posts
Wednesday, February 4, 2015
RPGT and Appeal Ahmad & Salamah Q2
Q.
Mr Ahmad sold his double-storey terrace house located at Kota Damansara to Madam Salamah on 30 August, 2013. The market price for similar properties at the subject locality is RM650,000 per unit. However, Mr Ahmad sold his property at lower price of RM550,000 due to urgent needs to cover the medical costs required for his child's treatment.
The house was purchased in 2010 at a higher price of 10% above the current market price for that year but he purchased the property because he wanted to stay near to his sister's house.
a) Explain the taxes involved and the basis to determine the taxes in the above case. (10 marks)
b) If Madam Salamah is not satisfied with the amount of tax that she has to pay, explain the action that need to be taken by her. (15 marks)
(25 marks, 2014 Q2)
Mr Ahmad sold his double-storey terrace house located at Kota Damansara to Madam Salamah on 30 August, 2013. The market price for similar properties at the subject locality is RM650,000 per unit. However, Mr Ahmad sold his property at lower price of RM550,000 due to urgent needs to cover the medical costs required for his child's treatment.
The house was purchased in 2010 at a higher price of 10% above the current market price for that year but he purchased the property because he wanted to stay near to his sister's house.
a) Explain the taxes involved and the basis to determine the taxes in the above case. (10 marks)
b) If Madam Salamah is not satisfied with the amount of tax that she has to pay, explain the action that need to be taken by her. (15 marks)
(25 marks, 2014 Q2)
Duties for SPA, Rental etc Q3
Q.
Determine the duty payable in the following cases:
a) Mrs Tan sold a parcel of residential land measuring 2.5 acres to Mr Deen in February 2013 for RM5 per sq foot. The private valuer engaged by Mr Deen prepared a valuation report valuing the property at RM6.50 per sq foot. However, the report submitted by the government valuer indicated a market value of RM7.00 per sq foot. (8 marks)
b) Mr Gan owned a parcel of agricultural land encompassing an area of 1.5 acres with potential to be developed as a single storey bungalow. The land is sold to Mr Kurrusamy for RM380,000 in Mac, 2013. The market value by the government valuer is RM280,000. The land was purchased by Mr Gan in January 2010 for RM250,000. The legal fees incurred is RM2,200 and he also paid an amount of 2% of the purchase price to an estate agent. (10 marks)
c) An apartment is leased to Mrs Namie for RM1,800 per month for a period of 5 years effective from February 2012. The tenant is responsible to pay the assessment rate of RM1,200 to local authority apart form maintenance fee of RM80 per month. (7 marks)
(25 marks, 2014 Q3)
Determine the duty payable in the following cases:
a) Mrs Tan sold a parcel of residential land measuring 2.5 acres to Mr Deen in February 2013 for RM5 per sq foot. The private valuer engaged by Mr Deen prepared a valuation report valuing the property at RM6.50 per sq foot. However, the report submitted by the government valuer indicated a market value of RM7.00 per sq foot. (8 marks)
b) Mr Gan owned a parcel of agricultural land encompassing an area of 1.5 acres with potential to be developed as a single storey bungalow. The land is sold to Mr Kurrusamy for RM380,000 in Mac, 2013. The market value by the government valuer is RM280,000. The land was purchased by Mr Gan in January 2010 for RM250,000. The legal fees incurred is RM2,200 and he also paid an amount of 2% of the purchase price to an estate agent. (10 marks)
c) An apartment is leased to Mrs Namie for RM1,800 per month for a period of 5 years effective from February 2012. The tenant is responsible to pay the assessment rate of RM1,200 to local authority apart form maintenance fee of RM80 per month. (7 marks)
(25 marks, 2014 Q3)
Stamp Duty Execution of Transfer Q4
Q.
Mr Sunny, a Malaysian citizen purchased a double storey bungalow located at an elite area of Bukit Damansara for RM3.5million in 2013. The owner, also a Malaysian citizen however, currently lived in Dundee, Scotland, United Kingdom and requested Mr Sunny to bring all the necessary documents to UK for the execution of the relevant document.
The Sales and Purchase Agreement (SPA) was duly signed on 21st April, 2013 but Mr Sunny decided to stay in Dundee for two (2) months before going back to Kuala Lumpur. He kept the documents with him and forgot to contact his lawyer to proceed to undertake the transfer of the property.
When he returned to Malaysia after the holiday, he contacted his lawyer to proceed with the transfer and was advised that he has to pay penalty for not duly adhere to the provisions stipulated under the Stamp Duty Act 1949.
Advise Mr Sunny as to what are the actions that he is supposed to undertake once he has executed the document of transfer. Your advice should include until the payment of stamp duty upon hearing by relevant court.
(25 marks, 2014 Q4)
Mr Sunny, a Malaysian citizen purchased a double storey bungalow located at an elite area of Bukit Damansara for RM3.5million in 2013. The owner, also a Malaysian citizen however, currently lived in Dundee, Scotland, United Kingdom and requested Mr Sunny to bring all the necessary documents to UK for the execution of the relevant document.
The Sales and Purchase Agreement (SPA) was duly signed on 21st April, 2013 but Mr Sunny decided to stay in Dundee for two (2) months before going back to Kuala Lumpur. He kept the documents with him and forgot to contact his lawyer to proceed to undertake the transfer of the property.
When he returned to Malaysia after the holiday, he contacted his lawyer to proceed with the transfer and was advised that he has to pay penalty for not duly adhere to the provisions stipulated under the Stamp Duty Act 1949.
Advise Mr Sunny as to what are the actions that he is supposed to undertake once he has executed the document of transfer. Your advice should include until the payment of stamp duty upon hearing by relevant court.
(25 marks, 2014 Q4)
Conditional Contract & No Gain No Loss Q5
Q.
a) Real Property Gains Tax is imposed on conditional contract. Explain:-
The meaning of conditional contract. (5 marks)
How acquisition and disposal of asset is determined under conditional contract. (8 marks)
b) Mr Dollah intends to give a single storey bungalow located at Rawang as a present to his grand daughter Mona who has just competed her study at University of Sunderland, UK. Explain to Mr Dollah the situations where gifts are not subjected to tax whereby the scenario of "no gain no loss" is applicable. (12 marks)
(25 marks, 2014 Q5)
a) Real Property Gains Tax is imposed on conditional contract. Explain:-
The meaning of conditional contract. (5 marks)
How acquisition and disposal of asset is determined under conditional contract. (8 marks)
b) Mr Dollah intends to give a single storey bungalow located at Rawang as a present to his grand daughter Mona who has just competed her study at University of Sunderland, UK. Explain to Mr Dollah the situations where gifts are not subjected to tax whereby the scenario of "no gain no loss" is applicable. (12 marks)
(25 marks, 2014 Q5)
Arrears due to Local Authority Q6
Q.
Section 147(2) of Local Government Act 1976 provides that:
"If any such sum or any part thereof remains due and unpaid by the end of February or by the end of August in each year, as the case may be, it shall be deemed to be an arrear and may be recovered as provided in Section 148"
Explain the process that can be undertaken by Local Authority to recover arrears in assessment.
(25 marks, 2014 Q6)
Section 147(2) of Local Government Act 1976 provides that:
"If any such sum or any part thereof remains due and unpaid by the end of February or by the end of August in each year, as the case may be, it shall be deemed to be an arrear and may be recovered as provided in Section 148"
Explain the process that can be undertaken by Local Authority to recover arrears in assessment.
(25 marks, 2014 Q6)
Development Charge & Capital Allowance Q7
Q.
a) As an estate agent you are invited to give an opinion in a discussion regarding legislation that give an impact to property owners. Discuss development charge under the Town and Country Planning Act, 1976. (15 marks)
b) Capital allowance is an allowance allowed by the Inland Revenue Board to replace the fixed asset depreciation deductible from the gross business income.
Explain two (2) following components of capital allowance:
(25 marks, 2014 Q7)
a) As an estate agent you are invited to give an opinion in a discussion regarding legislation that give an impact to property owners. Discuss development charge under the Town and Country Planning Act, 1976. (15 marks)
b) Capital allowance is an allowance allowed by the Inland Revenue Board to replace the fixed asset depreciation deductible from the gross business income.
Explain two (2) following components of capital allowance:
- Initial allowance
- Yearly allowance (10 marks)
(25 marks, 2014 Q7)
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