Series D04 Tax 1/5 - Question 1; Development charge

Q.
Can you predict what question is going to come out on Development Charge and Appeal this year 2015?
(Series D04 Tax 1/5 - Question 1; Development charge)

A.
Based on the past 4 years:

2011 Q1 impact of development charge for property owners
2012 Q2 why developer has to pay development charge
2103 Q4 landowner serves a notice to the local authority to acquire his land
2014 Q7 part on impact of development charge for property owners

Town and Country Planning Act (TCP) will be asked a question. Very likely it is about development charge.

1. In today's increase land cost, development charge is going to add on the cost to build affordable housing for the Rakyat. Comment.

2. Development charge is levied on land development by virtue of Town and Country Planning Act, 1976. Explain this to your friend who is new in housing development.

Ref:

Earlier posts in past year question bank.

Series D04 Tax 2/5 - Question 2; Stamp Duty Calculation

Q.
Can you predict what question is going to come out on Stamp Duty Calculation this year 2015?
(Series D04 Tax 2/5 - Question 2; Stamp Duty Calculation)

A.
Based on the past 4 years:

2011 Q4 Suria, scenario property transactions, RPGT mixed with stamp duty calculation, objection
2012 Q1 stamp duty appeal and objection
2103 Q7 Kurunathan, scenario property transactions, RPGT mixed with stamp duty calculation, objection
2014 Q2 Ahmad, scenario property transactions, RPGT mixed with stamp duty calculation, objection

This question is typically a scenario question with a series of transactions. There will be both Stamp Duty and RPGT involved. The question will include a smaller part on appeal. This part is usually on the excessive stamp duty unpaid.

1. Ahmad recently bought a new bungalow from Kunasegaran, which is below market price. He got it at 20% less of RM550,000 because Kunasegaran needed the cash to pay off his other debts. Calculate the stamp duty due and if Ahmad is to pay the complete sum, he is unable to come out with the money as he needs to budget for legal fee and bank loan fees. Help Ahmad to seek other avenue to reduce his stamp duty due.

Ref:

Earlier posts in past year question bank.

Series D04 Tax 3/5 - Question 3; Stamp Duty

Q.
Can you predict what question is going to come out on Stamp Act this year 2015?
(Series D04 Tax 3/5 - Question 3; Stamp Act)

A.
Based on the past 4 years:

2011 Q6 ad valorem and fixed stamp duty
2012 Q3 2 types of stamp duties and date of stamping for property transaction
2103 Q - none
2014 Q4 timing to register a transaction, penalty if late stamping

This is a standard question on Stamp Act 1949. Usually it is about ad valorem and fixed duty and their differences. I would predict the old question of ad valorem and fixed will still be asked in small part, and something new on Stamp Duty will be added.

1. Briefly explain ad valorem and fixed stamp duties. As ad valorem duty is calculated based on market value or actual consideration paid whichever is the greater, many a time market value is enormously high and speculative. How can a dissatisfied party appeal to High Court for an objection to such conditions?

Ref:

Earlier posts in past year question bank.

Series D04 Tax 4/5 - Question 4; Annual value

Q.
Can you predict what question is going to come out on Annual Value, Improved Value, Objection and Appeal this year 2015?
(Series D04 Tax 4/5 - Question 4; Annual value)

A.
Based on the past 4 years:

2011 Q5 5 ground for objections to rates by local authority (valuation list)
2012 Q4 annual value and improved value, 3 examples
2103 Q2 what is 'annual value'
2014 Q1 object to proposed annual value, matters excluded from rating

Annual Value is a definite question, and together with it are the procedures of appeal and objection.

1. What are the grounds that a holding can appeal for revaluation or reassessment? Can annual payment of rates be waived or refunded?

Ref:

Earlier posts in past year question bank.

Series D04 Tax 5/5 - Question 5; RPGT

Q.
Can you predict what question is going to come out on RPGT this year 2015?
(Series D04 Tax 5/5 - Question 5; RPGT)

A.
Based on the past 4 years:

2011 Q2 calculation on RPGT, disposable price, acquisition price, renovation, conversion of title
2012 Q7 chargeable gains and allowable losses, tax relief for allowable losses
2103 Q - none
2014 Q5 conditional contract and 'no gain no loss' RPGT treatment

Question with scenario of property transaction in Stamp Duty Calculation usually combine RPGT with Stamp Duty. It has not been specific question on purely RPGT (theory) apart from 2014. Hence, I suspect there will be trend towards a dedicated question on RPGT.

1. Explain what are the taxes involved in a Sale and Purchase Agreement. In the case when the tax is viewed as unfair, how can the transferee object and appeal to the tax levied?

2. What are the available expenses that can be used to reduce RPGT so that chargeable gains can be lowered?

3. What are the ways government curb property speculation using taxes?

4. What are the exemptions available for RPGT? Specify the schedules and paragraphs which are involved.

5. Calculate the RPGT due for a scenario with transfer of property from 3 parties, A to B as Grandparent to Grandchild, then sold to a third party buyer C, calculate the RPGT payable with the rate at the year of disposal at 20%.

Ref:

Earlier posts in past year question bank.

Series D04 Tax 6/5 - Question 6; Capital allowance

Q.
Can you predict what question is going to come out on Capital Allowance this year 2015?
(Series D04 Tax 6/5 - Question 6; Capital allowance)

A.
Based on the past 4 years:

2011 Q3 initial allowance, yearly allowance, deductible expenses in rental
2012 Q5 industrial building allowance (IBA), what expenditure allowable for IBA, deductible expenses in rental
2103 Q6 initial allowance, yearly allowance, deductible expenses in rental
2014 Q7 capital allowance, initial and annual

By taking the sample above, it is 100% that capital allowance and deductible expenses from rental income will be repeated this year 2015.

1. Explain with reasons what is capital allowance in the context of property tax and why is it not available for individuals? How is it different from depreciation?

2. When Section 4 (d) rental income is calculated in arriving at the total chargeable income for an individual, what are the available deductible expenses for a new house recently been issued occupation certificate and subsequently rented?

Ref:

Earlier posts in past year question bank.

Series D04 Tax 7/5 - Question 7; Land alienation

Q.
Can you predict what question is going to come out on Land Alienation and Premium Calculations this year 2015?
(Series D04 Tax 7/5 - Question 7; Land alienation)

A.
Based on the past 4 years:

2011 Q7 5 main factors for land premium calculation & additional premium on land alienation
2012 Q - none
2103 Q5 5 main factors affecting premium calculation & additional premium
2014 Q - none

As you can see, if there were a question on land premium calculation, it may as well repeat 2011 and 2013.

1. List down the available factors that land office would consider when determining the premium of land during alienation. Upon appeal to the premium set, what are the possible reasons to ask for a lower premium?

Ref:

Earlier posts in past year question bank.