CIA 2005 Individual Income Tax

Tutorial 1 & Tutorial 2

1.What is tax? Explain the characteristics of tax.

2.How do tax payments differ from other payments that people or organisation make to governmental agencies?

3.Wai Lai worked in the United Kingdom as an employee of Amber China Ltd. With her income from employment, she bought a car, which she sent over to Malaysia in 2018. Wai Lai was not in Malaysia for the year 2017 and was in Malaysia from March to June 2018. Is she liable to tax on the income represented by the car?

4.State 4 situations where an individual can be regarded as tax residents in Malaysia.

5.State the circumstances under which an individual outside Malaysia may be deemed to be a resident of Malaysia for a basis year by virtue of the fact that he is a Malaysian citizen.

6.Alibaba first arrived in Malaysia on 9 September 2014. An analysis of his passport shows the following:

Basis year

Period in Malaysia

Number of days

2014

09.09.15 - 31.12.14

114

2015

01.01.15 - 31.05.15

151

01.06.15 - 15.06.15

Out of Malaysia on business trips

16.06.15 - 03.07.15

18

04.07.15 - 20.12.15

Out of Malaysia on business trips

21.12.15 - 29.12.15

9

30.12.15 - 31.12.15

Out of Malaysia on holiday

2016

01.01.16 - 31.05.16

152

01.06.16 - 30.06.16

Out of Malaysia on business trips

01.07.16 - 31.07.16

Out of Malaysia on holiday

01.08.16 - 31.12.16

153

2017

01.01.17 - 30.04.17

120

He left Malaysia permanently on 30 April 2017.

Required: Determine Alibaba's tax residence status for YA 2014 to 2017, with reasons.

7.Mr Sin Chan first came to Malaysia on 1^st Nov 2010. His pattern of stay in Malaysia was as follows:

DurationPlaceNumber of days

01/11/10 - 31/01/11Malaysia92

01/02/11 - 30/06/11China150

01/07/11 - 31/07/11Malaysia31

01/08/11 - 30/11/11Indonesia122

01/12/11 - 31/03/12Malaysia121

01/04/12 - 15/04/12Hong Kong15

16/04/12 - 31/07/12Malaysia107

01/08/12 - 30/11/13Singapore488

01/12/13 - 31/03/14Malaysia121

01/04/14 - 14/04/14Business matters in Korea14

15/04/14 - 15/07/14Malaysia92

16/07/14 - 30/04/15Japan289

01/05/15 - 31/07/15Malaysia92

01/08/15 - 31/01/17Vietnam1 year and 184 days

01/02/17 - 15/08/17Malaysia196

He returned to China on 16 August 2017.

Required: Determine the tax resident status of Mr Sin Chan for the relevant YAs. Give reasons for your answer.