Question 4 (25 Marks)

a) Pavlova Sdn Bhd is a company with a paid-up capital of RM2.4 million. The company was incorporated on 15 October 2018 as a Malaysian resident company based in Terengganu. The company commenced its business on 10 November2018 and closed its first account on 31 January 2019

Required:

i. Briefly discuss the requirement for submission of estimate tax payable for Pavlova Sdn Bhd for the year of assessment 2019. (3 marks)

ii. Illustrate the computation of penalty for underestimation of tax payable in the year of assessment 2019, assuming Pavlova Sdn Bhd is a non-SME company and has submitted the estimate tax payable and actual tax payable amounted to RM1.2 million and RM2. million respectively for the year of assessment 2019. (5 Marks)

b) As a student, discuss THREE (3) action can be taken if Malaysia want to have 100% tax compliances by the taxpayer in Malaysia. (9 Marks)

c) Identify TWO (2) advantages of tax compliance among public in Malaysia. (4 Marks)

d) Identify TWO (2) reason why people refuse to comply with tax rules and regulations. (4 Marks)