Sara, a resident in Malaysia bought a semi-detached house in Darul Aman Hills, Jitra on 1 March
Question:
Sara, a resident in Malaysia bought a semi-detached house in Darul Aman Hills, Jitra on 1 March 2017. In December 2018, her property was damaged due to landslide as her house was near the hill. As a result, she received insurance compensation amounting RM50,000. In the year 2020, she was transferred to Langkawi and decided to sell the house. She appointed a property agent and managed to sell the house on 31 May 2020. The relevant data of the house are as follows:
Acquisition RM Disposal RM
Purchase price 300,000
Sale price 500,000
Legal fees 5,000
Advertisement 2,700
Stamp duty 3,200
Deposit forfeited 4,600
Valuation fees 6,000
REQUIRED:
(a) Compute the Real Property Gain Tax payable by Sara under the Real Property Gain Tax Act 1976 (amended) on the disposal of the house.
(12 Marks)
(b) Compute the Real Property Gain Tax payable by Sara if she disposed her house on 7 December 2020 under the Real Property Gain Tax Act 1976 (amended).
(2 Marks)
B. To ensure that Islamic transactions are not subject to adverse stamp duty implications, various stamp duty exemption orders have been issued over the year. Briefly discuss THREE (3) stamp duty exemption orders with regards to Islamic Based Transaction.
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller-nobles, Brenda L. Mattison, Ella Mae Matsumura