Patrick previously was a senior engineer at RTK factory in Nilai. During the pandemic Covid19, he was terminated as the factory unable to operate throughout the Movement Control Order (MCO). Since then, he started his own business using the compensation money he received from his employment. After one succeeded year running as sole proprietor, he gets confused when it is time to fill in the tax returns. Patrick is looking for a consultant to advise him on the tax matters.

Required: Consult Patrick on the differentiation tax treatment as a sole proprietor and as an employee previously:

i. Income liable to tax

ii. Basis period

iii. Filling the tax return

iv. Payment of tax (16 marks)