b) James, a sole trader, carries on a food catering business since 2015. On 10 February 2020, the IRB issued James a notice of instalment payment of RM1,000,000 under s107B of the Income Tax Act. On 1 June 2020, James applied for variation of instalment payment to RM500,000 and the application was approved by the IRB. The final tax charged of James for YA 2020 was RM930,000 Required:
Question 2
(a) Ravi arrived in Malaysia on 10 October 2020 and commenced his employment as an accountant on 1 November 2020 with Brambles Bhd.
Required:
(i) Discuss Ravi when he should inform to Inland Revenue Board (IRB) for his chargeability to tax. State the time limit, if any.
(ii) Explain the responsibility of Brambles Bhd as an employer with regard to Ravi's commencement of employment. State the time limit, if any.
(b) James, a sole trader, carries on a food catering business since 2015. On 10 February 2020, the IRB issued James a notice of instalment payment of RM1,000,000 under s107B of the Income Tax Act. On 1 June 2020, James applied for variation of instalment payment to RM500,000 and the application was approved by the IRB. The final tax charged of James for YA 2020 was RM930,000
Required:
(i) Calculate the penalty payable by James for the excessive difference between revised instalment payment and final tax charged.
(ii) Advise James when he should pay his tax instalments on his business income for YA 2020.
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