Patrick previously was a senior engineer at the RTK factory in Nilai. During the pandemic Covid19, he was terminated as the factory was 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 successful year running as a 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 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