Reference no: EM132590794
Question - SuburUtara Sdn Bhd is an investment holding company not listed on the Bursa Malaysia. Information related to investments, gross incomes and expenses for the year of assessment 2019 for the business is presented below:
Item RM Incomes
Gross dividend from RaisingShine Bhd 150,000
Gross dividend from CocoMata Ltd. (Australian company) 130,000
Gross dividend from Andaman Bhd 80,000
Distribution of income from Cahaya Real Estate Investment Trust (REIT) 60,000
Distribution of income from Majujaya Unit Trust 45,000
Interest income from investment in bond 30,000
Rental income 140,000
Gains from realisation of investments 250,000
Management services fees 52,000
Expenses
Directors' fees 30,000
Salaries, wages and allowances 25,000
Office rent and maintenance fee 28,000
Audit fee 6,000
Secretarial and accounting fees 5,000
Taxation fee 4,000
Telephone bill 10,000
Printing, stationery and postage costs 6,300
Quit rent and assessment (property for rental) 1,500
Interests expense on dividend 250,000
REQUIRED:
(a) Compute the total income for SuburUtara Sdn Bhd for the year of assessment 2019.
(b) If SuburUtara Sdn Bhd is listed on Bursa Malaysia, briefly explain the tax treatment for:
(i) income derived from the holding of investments, and
(ii) direct and common expenses related to the income source.