CTEA 2220 BUSINESS AND CORPORATE TAXATION

TUTORIAL 2

1. Distinguish the difference between classical tax system and single tier system.
2. Why do you think full integration system is not suitable for corporate but works well with sole
proprietorship and partnership business?
3. Ascertain the basis periods for each company below for the relevant years of assessment.
a) Neville Sdn Bhd, a cloth manufacturing company closes its accounts on 31 August each year.
Besides deriving business income, the company also received dividend income and interest
income during the year ended 31 August 2013.
b) Hermione Sdn Bhd normally makes up its accounts to 30 June. On November 2011,it become
wholly-owned subsidiary of Ronald Sdn Bhd which has its financial year-end on September.
Hermione Sdn Bhd changed its financial year-end to 30 September to conform to statutory
requirements. The accounts were prepaid for the following periods:
1 July 2010 - 30 June 2011
1 July 2011 - 30 September 2012
1 October 2012 - 30 September 2013

c) Gryffindor Sdn Bhd normally closes its accounts on 30 June. The company decided to change
its accounting date to close its account on 31 December. Accounts were prepared as follow :
1.7.2010 30.6.2011
1.7.2011 31.12.2011 (new accounting date)
1.1.2012 31.12.2012
1.1.2013 31.12.2013

d) Harry Sdn Bhd which normally makes up accounts to 31 August, changes its year end to 31
May for convenience. The accounts were prepared for the following periods:
Year ended August 31, 2011
01.09.2011 31.05.2012
Year ended 31 May 2013

4. Ginny Sdn. Bhd., a telecommunication services provider prepared the following sets of accounts.
Accounting date
Year ended 31 December 2011
1 January to 31 March 2012
Year ended 31 March 2013

Adjusted income (RM)

13,500
2,900
15,000

Determine the basis periods and the adjusted income for the years of assessment 2011, 2012
and 2013 in respect of the above business.

5. Hupplepuff Sdn Bhd which had been preparing its accounts to year-end 31 December changed its
accounting to year-end 31 June as follows:
Accounting date
Year ended 31.12.2009
6 months ended 30.6.2010
Year ended 30.6.2011

Adjusted Income / Loss (RM)

( 5,000 )
8,000
10,800

On 1 October 2011, the company was acquired by Hill Berhad. In line with its new holding
companys financial year-end of 30 April, Hupplepuff Sdn Bhd closed its accounts as follows:
Accounting date
1.7.11 to 30.4.2012
Year ended 30.4.2013

Adjusted Income / Loss (RM)

( 1,000 )
13,200

a) Determine the basis periods and adjusted income/loss of Hupplepuff Sdn Bhd for the years of
assessment 2009 to 2013.
b) Explain what it meant by failure year and state which years are the failure years in the
above scenario.