Compute the chargeable income of Morning Glory Traders Association for the year of assessment 2021. Explain...

   

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Compute the chargeable income of Morning Glory Traders Association for the year of assessment 2021. Explain the special deduction for cooperative society under Income Tax Act 1967. QUESTION 1: B. A. Explain the special deduction for cooperative society under Income Tax Act 1967. Morning Glory Traders Association (MGTA) is a trade association established since 2016. MGTA reported the following income and expenses for the year ended on 31 December 2021: Income: Donations Entrance and subscription fees Webinar fees Expenses: Staff remuneration Audit and tax filing fees Stationery Maintenance of website Promotion for webinar Telephone, postage, and stationery Installation of curtain blind in office Audited Net Profit before Tax Notes: Note 1 2 RM 300,000 70,000 240,000 60,000 10,000 4,500 13,000 3,500 25,000 2,000 1. 30% of the donation is for the replacement of the premise roof. 2. A fee of RM50 per person was charged for 200 newly joined members. Additional information: Capital allowance for the current year was RM40,000. RM 610,000 (118,000) 492,000 REQUIRED: Compute the chargeable income of Morning Glory Traders Association for the year of assessment 2021. Compute the chargeable income of Morning Glory Traders Association for the year of assessment 2021. Explain the special deduction for cooperative society under Income Tax Act 1967. QUESTION 1: B. A. Explain the special deduction for cooperative society under Income Tax Act 1967. Morning Glory Traders Association (MGTA) is a trade association established since 2016. MGTA reported the following income and expenses for the year ended on 31 December 2021: Income: Donations Entrance and subscription fees Webinar fees Expenses: Staff remuneration Audit and tax filing fees Stationery Maintenance of website Promotion for webinar Telephone, postage, and stationery Installation of curtain blind in office Audited Net Profit before Tax Notes: Note 1 2 RM 300,000 70,000 240,000 60,000 10,000 4,500 13,000 3,500 25,000 2,000 1. 30% of the donation is for the replacement of the premise roof. 2. A fee of RM50 per person was charged for 200 newly joined members. Additional information: Capital allowance for the current year was RM40,000. RM 610,000 (118,000) 492,000 REQUIRED: Compute the chargeable income of Morning Glory Traders Association for the year of assessment 2021.

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A The special deduction for cooperative societies under the Income Tax Act 1967 is aimed at promoting the development of cooperative societies in Mala... View the full answer