Please enable JavaScript.
Coggle requires JavaScript to display documents.
Business Income - Coggle Diagram
Business Income
Badges of Trade
Alterations to property
Circumstances responsible for realization
Frequency of transactions
Motivate/intention of taxpayer
Formation of a company
Methods employed in disposing a property
Period of ownership
Financing arrangements
Subject matter of transactions
Accounting evidence
Gross income from a business
Trading debts
Deposit on services
Scope of compensation for loss of income
General provision
Derivation of business income
(i) the existence of a business source
(iii) such business income is deemed derived form Malaysia
(ii) the business transaction is 'income' in nature - revenue profit
Profession
not defined in the Act.
Profession can be carried out either by a company or an individual.
Cessation of business
Temporary cessation
Permanent cessation
The taximplication woude be:
(ii) unabsorbed capital allowance would be permanently lost
(iii) any distribution of asset (including undistributed profit) would be capital receipt in the hand of recipient
(i) revenue expense would not be deductible and such expense is a permanent loss to the taxpayer
Single or separate businesses
Case law decisions
Malaysian experience
Introduction
Business income is assessed in s 4(a) of the Act
(b) able to claim capital allowance on plant, machinery, industrial building used in business
(c) accord current year business loss in the event the revenue expenditure exceeds gross income
(a) utilisation of unabsorbed business loss b/f from any business source
(d) unabsorbed capital allowance (D>C) to be c/f to the following YAs and be deducted from the same business souce.
Business defination
not exhaustive, it may expand depending on the circumstances around it.
Vocation
Not defined in the Act
Commencement of business
The acid test
adventure or concern in the nature of trade
manufacturing
trade