Galway Sdn Bhd manufactures electrical products for domestic and industrial usage since 2018. The company is...

 

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Galway Sdn Bhd manufactures electrical products for domestic and industrial usage since 2018. The company is a Malaysian resident company located in Segamat, Johor. The company closes its accounts on 30 June annually. The company is planning to apply for tax incentive as one of the two business activities falls under the category of promoted activity. The directors of the company seek your advice regarding the the tax implication on the investment incentives option. The following is the forecasted information of both activities. 2022 2023 RM'000 RM'000 (10,000) 100,000 Promoted activity Adjusted income/(loss) Balancing allowance Balancing charge Capital allowance 5,000 15,000 21,000 30,000 Qualifying expenditures: Land 100,000 Machinery 50,000 70,000 (50,000) 200,000 Non-promoted activity Adjusted income/(loss) Prior year business loss Capital allowance 7,000 40,000 37,000 Rental income (Malaysia) 12,000 16,000 Cash donation to Majlis Perbandaran Segamat 3,000 2,000 a. Calculate the chargeable income and exempt income account available to Galway Sdn Bhd for the year of assessment 2022 to 2023 under the following incentives: i. Pioneer Status ii. Investment Tax Allowance (18 marks) b. Evaluate the best tax incentive for Galway Sdn Bhd from the calculation in (a). (2 marks) Galway Sdn Bhd manufactures electrical products for domestic and industrial usage since 2018. The company is a Malaysian resident company located in Segamat, Johor. The company closes its accounts on 30 June annually. The company is planning to apply for tax incentive as one of the two business activities falls under the category of promoted activity. The directors of the company seek your advice regarding the the tax implication on the investment incentives option. The following is the forecasted information of both activities. 2022 2023 RM'000 RM'000 (10,000) 100,000 Promoted activity Adjusted income/(loss) Balancing allowance Balancing charge Capital allowance 5,000 15,000 21,000 30,000 Qualifying expenditures: Land 100,000 Machinery 50,000 70,000 (50,000) 200,000 Non-promoted activity Adjusted income/(loss) Prior year business loss Capital allowance 7,000 40,000 37,000 Rental income (Malaysia) 12,000 16,000 Cash donation to Majlis Perbandaran Segamat 3,000 2,000 a. Calculate the chargeable income and exempt income account available to Galway Sdn Bhd for the year of assessment 2022 to 2023 under the following incentives: i. Pioneer Status ii. Investment Tax Allowance (18 marks) b. Evaluate the best tax incentive for Galway Sdn Bhd from the calculation in (a). (2 marks)

Answer rating: 100% (QA)

PIONEER STATUS Chargeable income Adjusted incomeloss Balancing charge Capital allowance RM100... View the full answer