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Week 8 Tutorial 7

1. The document contains information on the income and tax calculations for beneficiaries of two deceased estates, Thomas Lee and Khartiga, for the periods of 1 January to 30 June and 1 July to 31 December. 2. It also includes details on the disposal of properties by the executor of Khartiga's estate and one of the beneficiaries, Arjun. 3. The executor of Khartiga's estate is subject to capital gains tax on the disposal of a coconut plantation. Arjun would be subject to real property gains tax for the disposal of land he received from the estate.

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30 views

Week 8 Tutorial 7

1. The document contains information on the income and tax calculations for beneficiaries of two deceased estates, Thomas Lee and Khartiga, for the periods of 1 January to 30 June and 1 July to 31 December. 2. It also includes details on the disposal of properties by the executor of Khartiga's estate and one of the beneficiaries, Arjun. 3. The executor of Khartiga's estate is subject to capital gains tax on the disposal of a coconut plantation. Arjun would be subject to real property gains tax for the disposal of land he received from the estate.

Uploaded by

umstudy
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

RM’000 RM’000
Thomas Lee Deceased Lilian Lee Executer
(1/1-30/6) (1/7-31/12)
Business I 70x6/12=35 35
Business II - -
Business III Exempted Exempted
Rental 7 7
Dividend (single tier system) Exempted Exempted
Interest (fixed deposit Exempted Exempted
exempted)
Aggregate income 42 42
Less: Current year business (25) -
loss
Annuity payable - (3)
Total income 17 39
Personal relief (9) (9)
Chargeable income 8 30

Total income of beneficiaries:


Jason Lee
Annuity received [S4(e)] RM3,000
Amanda Lee
Total income RM0
* The RM2,000 distribution to Amanda Lee is
not taxable as it is not calculated as income to
Amanda Lee.
2.

RM’000 RM’000
Khartiga Deceased Samuel Executer
(1/1-30/6) (1/7-31/12)
Business I 25 25
Business II - -
Rental 3 3
Dividend (single tier system) Exempted Exempted
Interest - 6
Aggregate income 28 34
Less: Current year business (10) (10)
loss
Annuity payable - (2.5)
(-) Approved donation (1.5)
Total income 18 20
Personal relief (9) (9)
Chargeable income 9 11

Total income of beneficiaries:


Cynthia
Annuity received [S4(e)] RM2,000
Kavitha
Total income RM0
* The RM2,000 distribution to Kavithais not
taxable as it is not calculated as income to
Kavitha.
3.

Executer
Disposal price 480,000
(-) Acquisition price (400,000)
Chargeable gain 80,000
(-) Exemption: (10,000)
10% x 80000; or RM10,000 ; whichever is higher
70,000
Arjun
Disposal price 340,000
(-) Acquisition price (250,000)
Chargeable gain 90,000
(-) Exemption: (10,000)
10% x 90000; or RM10,000 ; whichever is higher
80,000

(a) Transfer of land by executor to Arjun

It is a no gain no loss transaction under Para 3(a), devolution assets on death.

Arjun has acquired the land on 1/5/2020 for a consideration of RM280,000. (Market value at the
time of transfer)

(b) Disposal of coconut plantation by executor to 3rd party:

Disposal price (1/6/2020) 480,000

Acquisition price (1/2/2018) (400,000)

Chargeable gain 80,000

Less: Sch 4 Exemption -

(executer cannot enjoy this exemption)

80,000

RPGT rate 30%

RPGT payable 24,000

(c) Disposal of land by Arjun to 3rd party:

Disposal price (1/4/2021) 340,000

Acquisition price (1/5/2020) (280,000)

Chargeable gain 60,000

Less: Sch 4 exemption (10,000)

10% x 60,000 or 10,000 whichever is higher


50,000

RPGT rate 30%

RPGT payable 15,000

if Arjun received a compensation of RM42,000 for damage to the land:

Disposal price (1/4/2021) 340,000

Acquisition price (1/5/2020) 280,000

(-) Compensation received (42,000) (238,000)

Chargeable gain 102,000

Less: Sch 4 exemption (10,200)

10% x 102,000 or 10,000 whichever is higher

91,800

RPGT rate 30%

RPGT payable 27,540

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