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Got new case and need to do tax analysis only based on MA given by client.

Must make sure to identify CP204 payment, if no payment need to raise query to client to confirm the peyment.

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8:30am - The first day of internship at Cheng & Co started with the welcoming speech and introduction from the Top Manager. Then, I was introduced to all three department (Accounting, Audit, Taxation) as the new intern.

10.00am - My laptop was sent to IT department to install a few software required to start my task.

12.00pm - I was assigned my first task to fill in the salary listing into excel sheet. I must key in all the staff details and their transactions throughout the year.

5.30pm - Go Home

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8:30am - create Form C a this one company in Brass Tax. Then, I continue to create Form P (partnership) for another business in SPC. For partnership business, tax computation are shouldered by each members as their personal tax, and not taxed as one whole business. Other than the tax comp, I also need to ensure that personal information including address, phone numbers, identification number are all correct as it is also a vital information for future references.

5:30pm - Go home

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8:30am - generate form C and compute tax comp for IHC (investment holding company). There are a portion of administrative expense that got permitted expense under section 60f, which was not allowed to deduct under normal company, for example: -

management fee

secretary fee / preparation of resolution

audit and accounting fee

telephone charges

printing and postage

other incidental expense to the maintenance of an office

5:30pm - Go home

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8:30am - The process of generating Form E and EA (employee salary form)

1. Create personal details and salary listing for each employee in the company. (Employer must provide the salary list so tax agent can key in the SPC)

2. Provide query for client if the information they provide was not complete.

3. key in payslip info for employee and employer

5:30pm - Go home

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8:00am - Today, I need to update the details of a few dormant company of the year 2023, and create form E for each dormant company.

2:00pm - Then, I need to fill out the expenses based on client's receipts, documents, and transaction history into Profit or Loss Statement as the first step to do before generating Form C (company/business tax computation).

4.30pm - GO Home

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8:30am - Finishing up yesterday's work on filling out the expenses.

12:30pm  - Fill up the Analysis Account (for form B/BE purposes)where I need to identify the type and taxable amount. Here, I must be able to apply my knowledge on tax computations such as the allowable expense, specific deduction and double deductions from business income.

2:00pm -  Compute Tax relief.

3:30pm - Learn how to create form B in SPC and how to treat individual tax that have business and already leaving Malaysia. Prepare formal letter to inform IRBM regarding the matter.

5:30pm - Go Home

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8:30am - Finishing up yesterday's work on filling out the expenses, and analyze each expenses account (only expense account from P&L need to be analyze)

10:00am - Preferential tax rate: tax treatment that provides special advantages or benefits to certain individuals or group, includes exemptions, reduced tax rates. (new knowledge)

11:00am - Create from C in Brass Tax (web-based software specifically use to create form C). Basically, Brass Tax extract information from the excel template uploaded and then generates form C and Tax Computation for companies. It helps to identify and analyze accounts that might have smaller friction that was not mention in the P&L.

5.00pm - Go Home

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8:30am - Continue exploring Brass Tax features. I can directly compute tax amount in Brass Tax for dormant companies since it do not have any income and only have a few expenses. However, for active companies, I must analyze every P&L components and determine its taxable amounts. Each analysis must have detailed description to track where the transaction come from and for easier classification of tax amounts.

5.00pm - Go Home

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The first of internship was intense. I learnt new knowledges and try my best to adapt myself to a new work environment. It was fascinating to discover that how different it is from what I learnt and how actually real situation works. I think that by actually doing taxation in work is easier with all the technologies and supports compared to learning it, but it sure has its own difficulties, especially when it come to communicating with clients to get their receipts or proof of transactions, the procedures to create each form, the software management and many more.

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8:30am - make amendment on a few form after reviewed by manager.

10:00am - Form E and EA preparation, fill in personal and pay slip (advances must deduct from salary and compute relief for each employee if applicable) information in SPC. Pay slip and personal information must be based on the salary listing and query given by the client.

5:30pm - Go home

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Public holiday - Hari Raya Aidilfitri

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Public holiday - Hari Raya Aidilfitri

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8:30am - Compute tax analysis for Brass Tax

Limited Liability Partnership:

1. Limited by guarantee - owned and controlled by members, who are a guarantor rather than shareholder. Liability is limited to the amount members agree to contribute upon dissolution.

2. Limited by share - liability is limited to the unpaid amount of shares.

5:30pm - Go home

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Not much going on for the second week. I usually do repetitive task, however since I manage few different companies, it still give me a difficult times to complete the task. I also still not used to the new system (Brass Tax and SPC), I often seek advices and guidance from my seniors. Thankfully, they are so helpful and patients while explaining the solutions for me.

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8:30am - create form E and EA for another company

2:00pm - create form B. Form B is for personal taxpayer who has business income, while form BE is for taxpayer who does not have business income.

5:30pm - Go home

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8:30am - Basically today all I did is amending form E and EA, as well as form C reviewed by manager, or if clients request changes to those forms.

5:30pm - Go home

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8:30am - final amendment on Form E and EA for company A,B and C. Finally finished the task today.

5:30pm - Go home

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8:30 am - generates form E and EA for a few dormant companies (company that do not generates incomes or was doing any business operation for the current year)

10:30am - Meeting between Mr. Albert and tax department regarding the issues of approved donation receipts, whether to increase or remain the price for tax service this year, and how procedures to take if clients not replying company's email or WhatsApp to conduct tax service.

2:00pm - receive task to create form C and tax comp in Brass Tax (company taxation).

5:30pm - Go home

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As of this moment, I still had a feeling of doubt with my competencies to handles tax work. I felt that I need to do more improvement if I want to continue pursuing my interest in this field. Most of my previous task that was reviewed by manager was sent back for amendment and improvement. What I aspect from my training at Cheng&Co is to do my task perfectly, and not doing any careless mistake anymore.

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8:30am - continue yesterday's work of computing form C and tax comp for IHC company.

11:00am - got new task to generate form BE (personal tax that not have business income). However, this client got income from rental, which is quite a new experience for me in term of its computation process, and how to get its information (rental agreement)

5:30pm - Go home

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Public holiday - Labour day

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8:30am - Create form BE in SPC for individual who does not have business income. Rental agreement is use to determine rental income for the current year.

2:00pm - Make amendment on the previous case for Form C and Tax Comp.

5:30pm - Go home.

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8:30am - Investment holding Company (IHC)

Permitted expense in 60(f) of Income Tax Act for IHC

1. Direct expense - incurred to earn investment income and deductible against sources of investment income.

2. statutory /regulatory expense - incurred for statutory and regulatory provision like Companies Act (Accounting fee, Annual listing fee, Audit fee, secretarial fee, income tax service fee)

3. Other allowable expense - administrative and management fees, office rental, Office telephone charges, staff salaries and allowance)

5:30pm - Go home.

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Managing IHC income tax is a new experience for me, I remember learning about IHC in my tax classes. However, I noticed that it was quite different from tutorials I did in class compared to the actual income tax computation for IHC company. For example, in the actual situation everything must have proof/evidence/invoice (especially when I do not have the audited report), and I would found terms that I'm not familiar with.

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8:30am - My task to day is to call/chat with LHDN Penang branch officer regarding the closure status for E and C number for several company. E number is employer tax number while C is company tax number.

10:00am - Create form B in SPC ( individual tax computation for an insurance agent whose also have business).

5:30pm - Go home

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8:30am - Continue yesterday's work. This case also got CP500 which is a prepayment of income tax by installment.

5:30pm - Go home

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8:30am - This case also come with a set of invoice/proof of transaction/supporting documents, which I need to manually count and analyze. Then, I need to prepare individua income statement for tax purpose. This is the first case where I was given hardcopies invoices, and I need to create my own income statement.

5:30pm - Go home

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8:30am - Continue yesterday's work. This case got invoices for preschool monthly fee paid for this year. So, I need to register to E-Prasekolah website to check whether it is registered as approved preschool or private preschool (Approved preschool can claim for tax deduction).

12:00am - Create form C. This case does not have audited report/draft audited report yet, hence I need to refer to the management account (MA) as well as last year tax comp.

5:30pm - Go home

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8:30am - Still working on yesterday's task. Proceed to complete the financial information and analysis account.

5:30pm - Go home

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New experience of working with raw, unadjusted documents from clients. I still need to refer to audited report (once its complete), to see whether there's an adjustment to make.

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8:30am - Help generate form E for a few companies. The difficult part of generating form E is that I need to make sure exactly how many employees that still working for the assessment year, it becomes more difficult when clients do not gives enough information and are difficult to reach. I cannot proceed with the next step before I get enough information from clients, which usually drag the process of completing Form E.

9:00am - online training on the Tax Return Form 2024

2:00pm - Make amendment for Form C and Tax Comp in Brass Tax after reviewed by manager.

5:30pm - Go home

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8:30am - Generates Form E/EA. Today's company is actually a single company (company A) that decided to break into two separate company (company B and C). Thus, I really need to determine when is the begin and end date for the 3 companies, as well as how many employees in each company. I spent a few days to complete this task.

5:30pm - Go home

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8:30am - Still on the process of generating form E and EA. Create query for clients to answer and complete employee's personal details. Then, can proceed to Form E and EA.

11:00am - Make some amendment for another form (different company) after reviewed by manager.

2:30pm - Got a new task which is to Compute Tax Comp and Form C for one strike off case, and generate form BE (personal tax form for individual who does not have a business) for two client.

1. Employee Provident Funds (EPF) = KWSP

2. Social Security Organization (SOCSO) = Pertubuhan Keselamatan Sosial (PERKESO)

3. Potongan Cukai Bulanan (PCB) = Schedular Tax Deduction (STD)

4. Employment Insurance System (EIS) = Sistem Insuran Pekerjaan (SIP)

5:30pm - Go home

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8:30am -

Form BE (personal tax computation)

Amendment made for Form C in Brass Tax after received the reviewed paper from manager.

5:30pm - Go home

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8:30am - I have finally completed the pending task of form C and Tax Comp in Brass Tax.

10:00am - Make amendment in SPC for A,B,C company

5:30pm - Go home

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I think this is the most challenging week so far. A lot of things to do and follow up. I still need to memorize each task even after completing it in case being asked by my manager or senior (they need to follow up the status of those form in order to proceed with next step, which I am not eligible to perform). However, it is exciting to gain new knowledge and experience such workload.

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8:30am - New intern friend coming. Today, I will be analyzing another another S/B company for Form C and Tax Computation, based on management account.

From CP204 - income tax payment on installment basis.

Special deduction component - expense related to audit, professional, secretarial and tax filing.

5:30pm - Go home

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8:30am - Completing yesterday's work. However, the analysis cannot be imported into Brass Tax yet and need to wait for the audited report.

11:00am - Create for E for another company

5:30pm - Go home

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8:30am -Assist one of my senior to create a draft of income statement in Excel based on Management Account (MA). Then, I started to draft out the analysis for that company.

For first year company, I must identify pre-commence expenses as these expense are not deductible for tax purpose.

Small value asset - SVA under hire purchase that is not exceeding than RM2,000 each are eligible for 100% capital allowance and capped at Rm20,000 except for SME.

5:30pm - Go home

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8:30am - Received a full box of supporting document from yesterday's company. So, I need to identify each item in these documents to match it value with the value from GL.

5:30pm - Go home

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8:30am - Still drafting out analysis for the same company.

for advertisement, software and other expenses - determine whether payment made to resident or non-resident company:

resident - exempted from tax

non-resident - must determine withholding tax payment ( WHT paid - exempted from tax) ( WHT not paid - add back / taxable expense)

5:30pm - Go home

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8:30am - Another box of supporting document from another company came in today. As usual, I will create form B and do the tax analysis.

5:30pm - Go home

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8:30am - Continue yesterday's work.

10:00am - Join webinar for E-invoicing.

Notes from webinar:

transmission mechanism for "MyInvoice System":

MyInvoice Portal

Application Programming Infrastructure (API)

Consumer is not subject to e-invoice, but can request for tax relief purpose.

Benefits of e-invoice (long-term):

reduces human errors

standardization of a single invoicing system in M'sia

help keeping proper records

5:30pm - Go home

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Public holiday - Wesak Day

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8:30am - Continue yesterdays' work of analyzing account for tax purpose.

3:00pm - Make amendment for form B after being reviewed by Manager

5:30pm - Go home

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8:30am - Received another task for Form C and tax Computation for S/B company.

level of reference by tax agent for tax computation purpose:

audited report

draft audited report

management account

5:30pm - Go home

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8:30am - Continue last week's task of analyzing account

2:30pm - Online training "Unlock A World of Learning with ProB KMS+!"

Training Management System (KMS)

5:30pm - Go home

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8:30am - Continue yesterday's work.

Professional fee

service fee + SST = DD

printing and stationery + SST = Add Back

Double Deduction / Special claim / incentives

Section 132 - Audit fee + SST + printing and stationery

Section 157 - Professional / Secretary / Taxation fee + SST

5:30pm - Go home

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8:30am -Continue yesterday's work.

Received one case back from manager and need to amend a little because client amend in PnL, BS and GL.

5:30pm - Go home

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8:30am - Continue previous work

When do analysis on repair and maintenance, upkeep of office - must separate / identify capital (addback) and revenue (exempt) expenses

5:30pm - Go home

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8:30am - Continue previous work

5:30pm - Go home

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I notice the increase in level of difficulty on my recent tasks. Thus, I required more time and often seek advice from my seniors for their understanding on unfamiliar transaction/ account. I am glad to be given an opportunity to learn new things and receives continuous support from my team.

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Public holiday - Agong's Birthday

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8:30am - Continue doing income tax analysis for another company

5:30pm - Go home

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8:30am - Tax analysis for other company.

Payment to non-resident company are subject to withholding tax.

CP204 - Tax installment estimate

Form CP55 - declaration form a taxpayer gives authority to tax agent.

Form CP600B - change of address application form.

5:30pm - Go home

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8:30am - Continue yesterday's task.

5:30pm - Go home

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8:30am - Continue yesterday's task.

5:30pm - Go home

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8:30am - Continue previous work

5:30pm - Go home

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8:30am - Continue previous work.

5:30pm - Go home

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8:30am - Capital Gain Tax (CGT)

CGT is a gain from disposal of fixed asset which are subject to tax starting from 1st January 2024.

Example :

fixed asset dispose at 01/10/2023

gain on disposal received on 15/01/2024

Thus, not taxable because dispose before 01/01/2024

I spent my time today by double checking the CP204 tax installment payment for a few cases that I am working on.

5:30pm - Go home

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8:30am - Raises tax query to client. Usually this query is used by tax agent to determine tax treatment based on client's answer.

5:30pm - Go home

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8:30am - Continue yesterday's work

5:30pm - Go home

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Public holiday - Hari Raya Aidiladha

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8:30am - I am still working on last week task because for this case, the client got false general ledger information and I need to wait for the amended version.

Hire purchase for Motor vehicle (qualifying expenditure)

New + cost RM150,000 below = QE RM100,000

2nd hand + cost RM150,000 above = QE RM50,000

5:30pm - Go home

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8:30am - Today, I finally got a response for a query that i raised for two client. Then, I started to amend tax analysis based on those response.

5:30pm - Go home

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8:30am - Today, I continue working on yesterday's analysis. After finished those analysis, I helped raise tax query for my senior.

5:30pm - Go home

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8:30am - Today I just received back the analysis that I made which had been reviewed by my senior. Then, I start to amend accordingly.

5:30pm - Go home

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Attend UUM Career Fair day 1

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Attend UUM Career Fair Day 2

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I keep continuing my repetitive task on yet another company which is tax computation and draft out the tax analysis. However, each company were in different business nature and some might requires different tax treatment. Thus, I still learning new knowledge everyday.

Small Value Assets (SVA) = A qualifying assets below RM2,000 each (excluding renovation and electrical installation to premises), which qualify for 100% capital allowances(CA) claim under SVA.

As the company in a tax payable position, we did not separately disclose CA claims.

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Finished amend another draft tax analysis after receives query reply form client.

Received draft audited report and start making an adjustment to tax analysis before upload into Brass Tax.

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Finished tax computation for the case from yesterday. Handed to senior for review.

Brass Tax main code references:

A - tax computation

A(i) - tax installment payment

D - income statement

E - analyse of account

FA.1 - fixed asset addition

CA - computation of capital allowance

FD - disclosure of income statement in form C

FE - disclosure of balance sheet in form C

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Everything is great so far, I feel like I am getting good at my job scope especially at analysing tax treatment.

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Continue yesterday's work.

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Finished analysed the accounts.

Help senior with other stuff.

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Amending tax analysis after reviewed by senior.

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Continue yesterday's work.

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Help senior do analysis and amend her case.

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Continue and finished yesterday's work.

Received new case and start by draft out tax analysis.

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Continue yesterday's work

Amend case after receives response from client.

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Continue yesterday's work

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Continue yesterday's work

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Received new case to do tax analysis.

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Continue yesterday's work.

Amend director's details such as name, I/C number, income tax number, address, phone number.

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One of the case have problem in director's account (loan from director)

So, I need to refer to audit adjustment and audit working to trace the amount.

Interest restriction : The maximum amount of interest expense referred to in section 140C of the Act shall be an amount equal to 20% of the total amount of the Tax-EBITDA of that person consisting of a business source for the basis period for a year of assessment.

Interest restriction formula : (Total investment / Total loan) X interest amount

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Finalize tax computation for one case

Amend another case based on the supporting document received from client.

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Interest restriction section 33(2) of ITA.

Deduction of interest payable on borrowed money used for business, investment and loans is determined by:

if total investment/ loans >= total borrowed money, then the whole interest expense is disallowed (add back)

if total investment/ loans < total borrowed money, then only a portion of interest expense is disallowed (add back)

Portion of interest restricted:

(Cost of investment and loans financed by interest bearing borrowed money / Outstanding balance of interest bearing borrowed money at month or year end) X Average interest payable, monthly or annually

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Foreign Exchange

Realised Trade (revenue nature) = taxable/deductible

Realised Trade (capital nature) = non-taxable/non-deductible

Unrealised/Realised Trade (capital nature) = non-taxable/non-deductible

Realised/Unrealised Non-trade (revenue/capital nature) = non-taxable/non-deductible

Fixed assets capital allowance rate:

Computer / Software = IA(20%) n AA(20%)

Computer / Office / Equipment / Furniture = IA(20%) n AA(10%)

SVA = IA(0%) n AA(100%)

Motor vehicle = IA(20%) n AA(20%)

Plant / Machinery = IA(20%) n AA(14%)

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Continue to upload yesterday's work into Brass tax, compute CA, Key in directors and shareholders info, Tax installment and etc.

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Finished tax computation and draft Form C. Continue submit for review.

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Received new case. Start by draft tax analysis and raise query to cient.

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Upload tax computation into Brass Tax for previous case because draft audited report just finished.

Received new case to do tax analysis

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The main task of the week is either to draft out tax analysis or finalize tax computation in Brass Tax. I also get a chance to do some back log case.

Back log case = A buildup of work that needs to be completed.

The main challenge of backlog case is that I need to follow the acts or rules for that particular year that might differ from current year tax treatment, due to the changes in The ITA.

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This week is the last week for business income tax submission for December year end 2023. Thus, tax department are rushing to complete tax computation and submit form C to LHDN. I am thrilled to be a supporting hands in overcoming this challenge. By the way, today I overtime until 10pm.

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Our workload increase as we received a load of cases from HQ which also need to be settled within this week. However, form my point of view, I think we are still keeping a good pace at solving each case due to a good work distributions by our manager. Today, I overtime until 9.30pm.

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There are a few more cases need to be settled and everyone is doing their best. Today I overtime until 11pm.

Public Ruling :

YA'2020 to YA'2021 - expenses incurred and paid is treated as double deduction and expenses incurred is treated as add back.

YA'2022 and above - expenses incurred is treated as double deduction.

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Today, I keep on doing my best in assisting my seniors to complete all the case. At the end of the day, we are left with around 17 cases to be settled by tomorrow. I overtime until 12am.

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This is the last day of the said submission. We are almost done. I overtime until 1am.

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This is the most hectic month in my entire internship program. I assisted my seniors to complete the cases as best as I can, and I definitely overwhelmed with works especially in the last week on this month.

However, this experience enhanced my skills in analysis and tax computation. It also deepen my understanding in tax field.