Critically explain the eligibility of the following taxpayers to claim an allowance under the Income Tax Act 1967. Support your answer with ONE (1) court case for each situation.

 i. Star Wars Sdn. Bhd. (SWSB) is in the business of investment in real properties and renting of real estate. SWSB constructed and owned a building, which was later rented to a private school approved by the Minister of Education. SWSB records the annual rental received from the school as business income under Section 4(a) of the Income Tax Act 1967, even though SWSB itself is not in the business of providing education. SWSB now wishes to claim an industrial building allowance.
 

ii. Obi-Wan Sdn. Bhd. (OWSB) is in the business of logging and construction. OWSB does not own a forest license but is contracted by a company that has such a license, to fell and extract timber logs. In doing so, OWSB incurs expenditure on building temporary roads and construction camps on the site. OWSB now seeks to claim forest allowance. 

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In Malaysia taxpayers can claim various allowances and deductions under the Income Tax Act 1967 subject to certain eligibility criteria Lets examine the eligibility of Star Wars Sdn Bhd SWSB and ObiWa... View the full answer