(a) Labuan, Pulau Langkawi, Pulau Tioman and Pulau Pangkor have been gazetted as Duty-Free Islands by the government. Indicate the tax implication of the Duty-Free Island status and address FOUR (4) benefits that could be generated from the status. (6 marks) 

(b) Justify the type of tax applicable to the following situation, identify its relevant tax authority and state sources of reference for the tax law/Act. Joey makes an income of RM80,000 from his employment as a sales representative. Kian paid RM1,200 for a two-night staycation at Penang Royal Hotel. (5 marks) 

(c) The following is employment income received by the individual. For each of them, you are required to identify the scope of charge and justify the reason that the income is taxable in Malaysia. Support with the relevant section on income derivation as stated by the relevant Act. 

1) Khan works as an account executive for Johor Port Corporation. 

2) Kim works as a stewardess on the international flight for Malindo Berhad. 

3) Kent serves as manager in business consultant department of Nestle Berhad. His roles require to provide business consultancy to many Nestle branches in Asia as well as attend training and meetings with the head office in Switzerland.

Answer rating: 100% (QA)

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