TAX467 Taxation 1 Assessment Group Project 2026 | UiTM Malaysia

TAX467 Assessment Group Project

Question 

Azim has been managing daily operations and business finances of his business, Triple-H Cafe in Georgetown, Penang since 2020. He is married to Cempaka, a Manager Hotel in D’Ocean Resort Penang. Both Azim and Cempaka are tax residents of Malaysia.

The following is the Statement of Profit or Loss for the year ended 31 December 2024 for TripleH Cafe:

Notes:

1. Cost of sales:

During the year, Azim has conducted a birthday party for his daughter using services provided by Triple-H Cafe worth RM3,000 and the transaction has not been recorded. The market price of the services was RM3,500.

2. Other income comprise:

3. Azim monthly salary was RM4,500 and his EPF contribution was RM500 per month. Haiqal, Siti, and Samuel (who is disabled) are his three (3) permanent employees at the cafe. Haiqal and Siti each received a monthly pay of RM1,800, while Samuel received a salary per month of RM1,500. Monthly fixed contributions of RM400 and RM350, respectively, were also made to their EPF. Azim and all of his employees also earned year-end bonuses equal to one month’s salary.

4. Bad debts comprise:

5. Entertainment comprise:

6. Donations and contributions comprise:

7. Fees comprise:

8. Rent expenses:

The monthly rent for the motor vehicle and the motorcycle owned by Azim was RM1,200 and RM850, respectively.

9. Repair and maintenance comprise:

Additional information:

The capital allowances for the year of assessment 2024 were RM24,050.

Additionally, Azim received income from the following sources:

i. Fixed deposit interest income from Hong Leong Bank amounted to RM8,000.

ii. Dividend income RM12,500 from Amanah Saham Nasional Berhad

iii. Rental income and expenditure for an apartment at Kedah. Below is the information relating to the house which was rented out starting on 1 July 2024:

The details of incomes and benefits of his wife, Cempaka the year assessment 2024 are as follows:

i. Monthly net salary of RM12,150 after deducting EPF at the rate of 11% and RM950 under the Schedular Tax Deduction (STD) system and monthly zakat payment RM250.

ii. A bonus equivalent to one month salary was received on 31 August 2024.

iii. Travelling allowance of RM950 per month for official duties.

iv. Entertainment allowance of RM2,100 per month.

v. Childcare allowance of RM250 per month.

vi. She incurred dental and medical expenses of RM3,500.

vii. She was provided with a new Honda WRV costing RM135,000 together with a driver provided in September 2023.

viii. In the year 2024, he incurred RM7,800 on travelling expenses while performing his official duties.

Besides employment income, Cempaka also obtained the following income for the year of assessment 2024:

i. Interest income of RM2,500 received from savings in Alliance Bank Berhad.

ii. Cempaka also inherited two houses from her late mother, which she has been renting out since January 2018, earning RM1,700 per month from the property in Bayan Lepas and RM2,000 per month from the one in Teluk Bahang.

iii. She also received a royalty amounting to RM15,000 for the right to use her artistic works from Art Studio.

1. Azim and Cempaka were blessed with four children:

• Aiman – 24 years old, married but divorce in August 2024 and studying Degree in Chemical Engineering at Universiti Teknologi Malaysia
• Dahlia – 19 years old and studying A-level program at Intec Education College.
• Orkid – 10 years old and disabled.
• Lily – 5 years old and went to Q-dees Kindergarten, Penang.

Note: Cempaka elected to claim child relief on Lily while the rest to be claimed by Azim.

2. The following are expenses incurred by Azim and Cempaka for the year assessment 2024:

Both Azim and Cempaka are tax residents of Malaysia. The following are personal information and background details of both Azim and Cempaka:

 Required

Part A: Computation of Personal Tax Liability

 Prepare the following computation:

a. Statutory Business Income of Triple-H Cafe for the year assessment 2024;

(10 marks)

b. Total income of Azim and Cempaka for the year of assessment 2024 and;

(10 marks)

c. Income tax payable / tax refund in respect of Azim and Cempaka under separate assessments for the year of assessment 2024.

(10 marks)

Part B: Filing in Tax Return  

Complete the 2024 Form e-B and e-BE in respect of Azim and Cempaka.

(20 marks)

(Total: 50 marks)
Notes: Show all necessary workings.

Part C: Prepare a video infographic 

Hafiz and his wife, Alia, are both working professionals in Malaysia. Hafiz works as a marketing manager with an annual income of RM85,000. Meanwhile, Alia is a part-time lecturer earning RM36,000 annually. The couple has two children and is considering electing for joint assessment for the year of assessment 2024. However, they are unsure how the tax payable would be computed under joint assessment and whether it would offer any tax savings compared to separate assessment. They are also uncertain about the tax reliefs and rebates they may be eligible for as a married couple with children.

Design a video infographic explaining the computation of tax payable for joint assessment in Malaysia. Your explanation must cover the following:

1. What is joint assessment and how it works
2. Steps in computing tax payable for joint assessment
3. Tax reliefs and rebates applicable to married couples with children
4. Comparison between joint and separate assessment 

(50 marks)