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15 Business Income, Commencement of biz, Business Exp, Basis Period (BP),…

- - - - S12(1)(b)(i)
        gross Y from sale of such articles OUTSIDE M'SIA is deemed derived from M'sia
      - S12(1)(b)(ii)
        when there are no sales, MV at the time of export is deemed derived from M'sia
        ie. Head office transfer to Branch which has no sale
        
        tax comp based on Co
        
        sale from HO = purchase for Branch, no sale
  - - - biz Y from services derived from M'sia
    - - Core services in M'sia plus some services carried out outside M'sia
        
        overseas services: incidental to core services in M'sia, also derived from M'sia
- - - - Insurance, recovery, reimbursement: TAXABLE
        for exp which a tax deduction has been previously taken or under a contract or indemnity
        
        ie. insurance premium get deduction,
        compensation from insurance is taxable
        
        DEDUCTIBLE -> TAXABLE
        
        NOT DEDUCTIBLE -> NOT TAXABLE
      - Compensation for loss of Y: TAXABLE
        
        ie. vessel sent for 1 mth overhaul promised by contractor, however vessel was only returned in the 2nd mth.
        Compensation by contractor is taxable as loss of profit Co suffered when the vessel was unavailable
    - - Amt of debt waived where tax deduction has been claimed
        or
        
        any CA claimed on ori exp
        
        deem as gross biz, S30(4)
        
        ie. Co claim tax dedn on raw mat acq on credit
        plus supplier waived debt of Co,
        dedn=debt waived,
        is taxable in the YA debt was waived
        
        incurred the exp wholly and exclusively
        for the pdt of biz Y (ie. raw mat) on credit, can claim dedn
        
        ie. Co bought P+M on credit and claimed CA,
        seller decided to waived the debt owning
        debt waived=CA,
        is taxable up to CA claimed in the YA debt is waived
        
        incurred QA (ie. P+M cost) deal for payment,
        can claim CA
    - - Grant and subsidies
        received from federal/state gov
        are exempt from tax
        at the gross Y level
        
        is exempt in the earlier of BP which
        
        grant/subsidy is received
        
        relevant exp
        (which financed by the grant/subsidy) is incurred
        
        revenue exp financed by grant/subsidy: NOT DEDUCTIBLE
        
        CAPEX financed by grant/subsidy: X claim CA
      - GRANT:
        money received w/out a need to repay back, includes a loan w/out repayment terms
      - Grant NOT received from federal/state gov
        ie. H Co
        
        revenue grant/subsidy
        to finance revenue exp
        
        IF revenue expenditure is DEDUCTIBLE, grant/subsidy is TAXABLE
        
        IF revenue expenditure is NOT DEDUCTIBLE, grant/subsidy is NOT TAXABLE
        
        capital grant/subsidy
        to finance CAPEX
        
        IF CAPEX qualify for CA, grant/subsidy is TAXABLE, up to amt CA claimed
        
        IF CAPEX does NOT qualify for CA, grant/subsidy is NOT TAXABLE
- - - - new a/c will form the BP for the YA of failure yr
    - - new a/c plus following's a/c will form BP for the YA of failure yr
  - - - new a/c will form the BP for the YA of failure yr
    - - new a/c divided equally to form 2 BP.
      - each BP will be:
        
        the BP for YA of failure yr and
        
        the BP for YA following the failure yr respectively
  - - - 30 days b4 the end of NEW accounting period
    - - 30 days b4 the end of OLD accounting period
- - - - consider as deemed to be incurred on the commencement date
      - acc: date of incorporation
        BP: date of commencement