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Business Income - Coggle Diagram
Business Income
Derivation of biz income
S12(b)(i)
Biz that carry manufacturing, producing, growing, harvesting in Msia, GROSS INCOME from sale of such outside Msia (export) is deemed derived from Msia.
S12(b)(ii)
Biz that carry manufacturing, producing, growing, harvesting in Msia, when no sale occurs, then Market Value (MV) at time of export deemed derived from Msia.
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Definition: Includes profession(open yr own firm), vocation(own hobby) and trade, & every manufacture, concern and adventure in nature of trade, but excluding employment.
Taxable
Arising from every manufacture, concern and adventure in nature of trade
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Section 22
Arising from insurance, recovery, reimbursement is taxable
In respect of exp whereby tax deduction has been previously taken, or under contract
For eg, a co who normally pays insurance premium for the stock in transit for every YA. Then, unexpectedly robbery happens while stock in transit. So, compensation from insurance premium would be taxable in respect of robbery occurred as deduction was claimed.
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BADGES OF TRADE
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A PROFIT WINS
A - Accounting treatment
P- Profit motive
R- Repetition
O- Organisation
F- Financing
I- Improvement
T- Timing
W- Way of disposal
I- Interest in similar
nature
N- Nature of subject matter
S- Surrounding factor
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