T9 Q1

(a)
(i) & (ii) PA Trust Distributable
income
RM
Business income 450,000
Capital allowance -
Interest (remitted to M'sia) 9,000
Dividend (M'sia) 80,000
539,000
less: Trustee's remuneration (20,000)
519,000
Tax rate @ 24%
(iii) Statutory income
1) James: 3/4 x RM400,000= 300,000
2) janice: 1/4 x RM400,000= 100,000

(iv) Tax payable for YA 2016 James (R)

RM
S4(e) Trust income 300,000
less: Personal relief (9,000)
291,000

Tax on the first RM250,000 47,900

Tax on the balance RM91,000 @24.5% 10,045
Flat rate for non resident @28% -
Tax chargeable/payable 57,945
less: S110 set off 300/400*96k (72,000)
Net tax payable (14,055)

(b) Proviso S 61(2)

-Beneficiary will not be given S110 set off
-No effect on total income tax payable

PA Trust RM
Total income 400,000
less: Distribution to James (200,000)
200,000
Tax payable @24% 48,000

James RM
S4( e) Trust income 200,000
less: Personal relief (9,000)
191,000
Tax on the first RM100,000 11,900
Tax on the balance RM91,000 @24% 21,840
33,740
less: S110 set off -
Net tax payable 33,740
 Notes
Total income
RM
450,000
(50,000)
exempt -Para 28, Sch 6
exempt -Single-tier dividend is exempted
400,000
-
400,000 -Total income for trust
96,000

Janice (NR)
RM
100,000
-
100,000

-
-
28,000
28,000
(24,000) 100/400*96k
4,000