REQUIRED: 1. Compute the chargeable income and income tax liability of the trust body for the year of assessment 2023. Please indicate "NIL" where no adjustment is required. 2. Compute the statutory income of all the beneficiaries for the year of assessment 2023.
REQUIRED: 1. Compute the chargeable income and income tax liability of the trust body for the year of assessment 2023. Please indicate "NIL" where no adjustment is required. 2. Compute the statutory income of all the beneficiaries for the year of assessment 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION 1
Mahmud passed away on 31 December 2022 and upon his death, Mahmud Trust was created under
the terms of his will for his four children and his widow, Marina. The trust body and all the
beneficiaries are resident for tax purpose in the basis year 2023.
Below is the information pertaining to the trust:
2.
1. The trust's distributable income (before accumulation) for the basis year 2023 is RM80,000.
One quarter (1/4) of the trust body's income is to be distributed to his first child and the
balance is to be distributed between his second and third child at the discretion of the trustees.
An amount of RM500 per month is to be accumulated for his fourth child until the child
reaches the age of 21 in 2025.
An annuity of RM625 per month is payable to his widow, Marina.
Relevant information of the trust body for the year ended 31 December 2023 is as follows:
3.
4.
Item
Retail business:
Gross income
Allowable expenses
Capital allowances for year 2023
Balancing charges
Balancing allowances
Restaurant business:
Gross income
Allowable expenses
Capital allowances for year 2023
Business loss brought forward from last year
Capital allowances brought forward from last year
Other Income:
Rental from a property in Jitra
Interest from Mapa Sdn Bhd
Dividend from Abrahim Bhd, a Malaysian company
Payments made by the trust body during the year 2023 are as follows:
Item
Annuity to Marina
Trustee fees
Cash donation to an approved institution
Donation of a computer to a secondary school in Jitra
Sums paid to:
First child
Second child
Third child
RM
175,000
75,000
15,000
5,000
7,500
25,000
29,000
3,000
5,000
2,500
5,000
1,500
2,250
RM
7,500
6,000
1,000
1,250
15,000
25,000
30,000
REQUIRED:
1.
Compute the chargeable income and income tax liability of the trust body for the year of
assessment 2023. Please indicate "NIL" where no adjustment is required.
2. Compute the statutory income of all the beneficiaries for the year of assessment 2023.
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