Malaysia Taxation Assignment Help | YA 2025 Solution

Question 1

Encik Isma is the owner of Indah Bumi Enterprise (IBE), makes up its accounts annually to 31 December. IBE manufactures and supplies agricultural inputs for the Malaysian market. The following is the Statement of Profit or Loss for the financial year ended 31 December 2025:

Indah Bumi Enterprise Statement of Profit or Loss for the year ended 31 December 2025

Notes:

1. Cost of sales includes provision of stock obsolescence of RM35,000 and damaged stock written off RM12,000.

2. Other income consists of:

3. Advertising cost of RM5,000 for placing advertisement in magazine was not recorded.

4. Professional fees consist of:

5. Remunerations consist of:

6. Entertainment consists of:

7. Fees and donations consist of:

8. Bad debts consist of:

9. Lease rental

A brand-new Toyota Camry costing RM189,900 was leased from Car Mart Sdn Bhd since January 2023 for RM1,600 per month and this car is not for commercial purposes.

10. Insurance premiums consist of:

11. This is an amount embezzled by an employee and a police report has been lodged.

The unabsorbed capital allowance from year assessment 2024 was RM13,400. Meanwhile, balancing charge for current year assessment 2025 was RM9,800, whilst the capital allowance for the current year assessment 2025 is to be claimed based on the information provided as follow:

i. Due to the expansion of its business, on 10 January 2024, the business purchased a new building for RM1,100,000. The business used 7/8 of the built-up areas as a factory and the balance is used as an office.

ii. On 12 February 2024, the business acquired a lorry (which was licensed for commercial vehicle) under hire purchase for business purpose. The cash price was RM147,600. The business traded its old non-commercial vehicle for RM36,000 and agreed to pay a monthly installment of RM3,500 for 36 months commencing on 28 March 2025.

iii. In June 2025, the business rented an adjacent building with a monthly rental of RM4,000 per month to be used as a storage of goods for export. The business also incurred RM55,000 to renovate the building.

iv. On 8 July 2025, the business purchased a computer costing RM3,200. The computer was completely damaged by lightning and the business decided to dispose the computer on 20 December 2025. The Inland Revenue Board of Malaysia (IRBM) accepted the reason for the disposal.

Additional information:

The following details relate to Encik Isma’s other income:

i. Dividend income RM22,550 from Amanah Saham Bumiputera (ASB).

ii. Interest income RM2,300 on fixed deposit with AmBank Berhad.

iii. Rental income and expenditure from a house at Scientex Durian Tunggal, Melaka throughout the year 2025:

Encik Isma married with his first wife Puan Ainon since 1 January 2001. Currently, Puan Ainon working as Digital Manager (Southern Area) at Telekom Malaysia Berhad (TMB) based at Melaka. Details of income and benefit enjoyed by Puan Ainon for the year assessment 2025 were as follows:

i. Monthly net salary of RM25,200 after deducting EPF at the rate of 11% and RM1,000 under the Schedular Tax Deduction (STD) and monthly zakat payment RM500.

ii. Bonus equivalent to one month salary was received on 31 October 2025.

iii. Entertainment allowance of RM3,000 per month.

iv. Travelling allowance of RM900 per month for official duties.

v. Childcare allowance of RM200 per month.

vi. A car with the cost price RM140,000 with a driver was provided since July 2024.

vii. In the year 2025, she incurred RM9,600 on travelling expenses while performing her official duties.

Besides employment income, Puan Ainon also obtained the following income for the year of assessment 2025:

i. Interest income of RM3,800 received from saving in fixed deposit at Public Bank Berhad.

ii. She received RM22,000 as royalty on publication of e-book on digital marketing strategy.

iii. She received honorarium RM3,500 for series of talks webinar on digital marketing.

iv. She also received a rental income from her terrace house at Johor Bahru. Below is the information relating to the house which was rented out starting on 1 October 2025:

Encik Isma and Puan Ainon are blessing with five (5) children as follows:

• Irshad – 25 years old, married and studying Degree in Logistics at Universiti Kuala Lumpur (UniKL).
• Aina Aisyah – 20 years old and studying Diploma in Accountancy at Kolej Professional MARA, Melaka.
• Irfan – 17 years old and studying at SMK Gajah Empat, Melaka.
• Aida Mursyida – 12 years old, adopted and disabled and studying at Sekolah Pendidikan Khas Durian Tunggal, Melaka.
• Ainul – 6 years old, Arif Murni Kindergarten, Melaka.

Note: Puan Ainon elected to claim child reliefs on Aida Mursyida while the remainder will be claimed by Encik Isma.

Meanwhile, on 11 November 2025, Encik Isma married with his second wife Puan Salbiah, a widow with no children. The marriage was approached and arranged by his first wife Puan Ainon due to personal reasons. Upon the marriage, Encik Isma purchased a new house valued at RM230,000 under Puan Salbiah’s name. The Sales and Purchase Agreement (SPA) was signed and effectively due for installment payment on 20 December 2025. The house is financed by bank loan with the interest charge RM450 per month. Encik Isma also installed compose machine at the new house with the cost RM2,000.

In addition, Puan Ainon presented Puan Salbiah with an electric vehicle eMAS-5, as well as a charging port to be installed in the new home. For the time being throughout the year 2025, Puan Salbiah was not working as she was taking care of her mother who suffer stroke. Her exhusband paid her RM500 in alimony each month until December 2025.

The following are expenses incurred by Encik Isma, Puan Ainon and Puan Salbiah for the year assessment 2025:

Required:

a. Compute the capital allowance of IBE for all the relevant years of assessment up to the year assessment 2025.

b. Calculate the statutory business income of IBE for the year of assessment 2025. Indicate ‘NIL’ for items that do not require any adjustment.

c. Compute the total income of Encik Isma, Puan Ainon and Puan Salbiah for the year of assessment 2025. Round off your answers to the nearest RM.

d. Encik Isma and his wives, Puan Ainon and Puan Salbiah, are Malaysian tax residents for the basis year 2025. For the year of assessment 2025, Puan Salbiah elected for joint assessment under her husband’s name, while Puan Ainon choose to be assessed separately. Compute the income tax payable / (tax refund) in respect of Encik Isma and Puan Ainon for the YA 2025. Round off your answers to the nearest RM.

e. Complete the following sections of the 2025 Form e-B and e-BE in respect of Encik Isma and Puan Ainon:

i. Basic Particulars

ii. Type of Assessment

iii. Spouse Information

iv. Statutory Income and Total Income

v. Reliefs

vi. Tax Payable

vii. Individual Financial Information (Main business only)

Notes: Show all necessary workings and round off your answers to the nearest RM.

Question 2

Encik Muniandy is a resident individual taxpayer in Malaysia who works as a freelance software consultant (classified as a sole proprietorship business). He submitted his Form B for the YA 2024 on time. In his tax return, he claimed a deduction of RM40,000 for “business traveling and entertainment expenses”.

On 15 December 2025, the IRBM raised a Notice of Additional Assessment (Form JA) for YA 2024 against Encik Muniandy. The tax auditor disallowed the entire RM40,000 deduction because Encik Muniandy failed to provide any valid invoices, logbooks, or business receipts to substantiate the claim. Encik Muniandy strongly disagrees with the IRBM’s decision, claiming the officer was “too strict”.

To make matters worse, the audit also revealed that Encik Muniandy had completely hidden an offshore consultancy fee of RM30,000 that he received in a foreign bank account, falsely believing that the IRBM would never find out about it.

Required:

Design an infographic video on the above scenario related to Encik Muniandy, by providing the information below:

a. Determine the legal course of action available to Encik Muniandy if he wishes to dispute the Notice of Additional Assessment (Form JA) issued on 15 December 2025 (State the specific form he must use, the statutory deadline for submission, and to whom the appeal should be addressed under the Income Tax Act 1967).

b. Assume Encik Muniandy misses the official deadline to file his appeal due to being hospitalized. Identify the legal avenue available under the Income Tax Act 1967 that allows him to apply for an extension of time to file his appeal.

c. Analyse the legal implications of Encik Muniandy deliberately hiding the RM30,000 consultancy fee in an offshore account.

Experts Answer on Above Taxation Accounting Assignment

Inah Bumi Enterprise : Capital allowance schedule (YA 2024 & YA 2025)

As the capital allowance rates are missing, it is assumed that the factory building initial allowance is 10% while annual allowance is 3%, commercial lorry @20% initial allowance and 20% annual allowance. Renovation of rented warehouse @20% initial allowance and 3% annual allowance. Computer initial allowance is 20% and annual allowance is also 20%.

Factory building

The cost of factory building is RM1100000, and it is utilised as factory use amounting to 7/8. The qualifying expenditure is therefore RM1100000*7/8 = RM 962500.
The initial allowance is 10% which is 96250 and annual allowance is 3% amounting to 28875, and the total YA2024 is 125125. Tax written down value is 962500-125125 = 837475.
For YA2025, annual allowance is 3% which is 28875 and tax written down value c/f is 837375-28875 = 808500.

Commercial Lorry

The cash price is RM147600 and it is a commercial vehicle with employees that is fully qualified for expenditure allowance.
YA2024 initial allowance is 20% which is 29520 and annual allowance is also 20% which is 29250, totalling to 59040. The TWDV is 147600-59040 = 88560
YA2025 – annual allowance of 20% is 29520 and TWDV is 88560-29520 = 59040.

Renovation of rented warehouse

The renovation amount is RM 55000, and it is assumed to be qualified as renovation expenditure.
YA2025 initial allowance is 20% which is 11000 and annual allowance is 3% amounting to 1650. The total is 12650. TWDV is 55000-12650 = 42350.

Computer

It was purchased at RM3200, and destroyed by lighting, IRBM accepted disposal.
YA2025 initial allowance is 20% amounting to 640, and annual allowance is also 20% which is 640, totalling to 1280. Remaining TWDV is 3200-1280 = 1920.

The capital allowance claim

The capital allowance claim for the current year is 74245, unabsorbed capital allowance b/f 13400, and it is reduced by a balancing charge of (9800). The total capital allowance claim is therefore = 77845.

Legal course of action to Dispute Form JA

The Appeal form is Form Q, and the deadline is 30 days from the date of the notice of additional assessment. It needs to be submitted to the director general of indian revenue.

Missed appeal deadline

In case of missing the 30 day deadline by Encik Muniandy because of hospitalization, it is possible to apply for an extension of time under section 100 of the Income Tax Act 1967. This is possible by submitting form N to the director general of inland revenue, by clearly providing details of the reasons for the delay.

Legal implication of concealing offshore consultancy income

It will be considered as tax evasion under the income tax 1967, IRBM is likely to issue an additional assessment in order to recover any kind of tax that is not paid. Encik Muniandy will also face penalties and prosecution for filing incorrect tax returns, and the fine and imprisonment are both applicable in case if it is a deliberate concealment of income.

Want Detailed Answers with References?

Our tax accounting experts in Malaysia are highly qualified to provide detailed step by step calculations of taxation assignments, along with ensuring the proper use of taxation regulations and acts. You can get a detailed explanation and answers to all the above taxation questions. Simply hire our expert assignment helper in Malaysia to get your taxation assignment done correctly with all calculations and steps explained. Not only this, you can also explore solved assignments from Universiti Teknologi Mara (UiTM) to know more about how our experts approach taxation and other assignments.