TAX267 Taxation 1 Assignment Group Project 2026 | UiTM Malaysia

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.

(10 marks)

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

(20 marks)

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.

(10 marks)

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.

(20 marks)

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)

(20 marks)

(Total: 80 marks)

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).

(4 marks)

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.

(2 marks)

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

(4 marks)
(Total: 20 marks)

(Total: 100 Marks)

End Of Question Paper