Question 1
Ms Anita, (non-Malaysian citizen) an oil and gas engineering executive, bought a bungalow
in Cyberjaya from Mr. Kassim, for a consideration of RM 450,000. The Sales and Purchase
Agreement was signed on 1 December 2018. The bungalow was effectively transferred to her
on 1 March 2019 when the loan from the bank to finance the purchase was released to Mr.
Kassim.
Ms. Anita incurred the following expenses to acquire the bungalow:
Stamp duty
Expenditure
Legal fees for obtaining a bank loan
Legal fees to transfer the bungalow
Agency fees to secure the acquisition
Total
Amount
(RM)
9,000
10,000
12,000
15,000
46,000
In May 2020, she spent RM 100,000 renovating the bungalow. In September 2020, the
bungalow was flooded causing severe damage. A civil suit was filed against the developer
whose nearby project was identified as the cause of the flood. The developer however settled
the matter out of court by making a cash payment of RM 120,000 to Ms. Anita. An insurance
company paid Ms. Anita RM 150,000 for the flood damages under a contract of insurance.
Owing to the fear of another flood, Ms. Anita decided to dispose of the property. She
engaged an agent for this purpose. A prospective buyer, Mr Tan agreed to buy the bungalow
for RM 500,000. He paid a deposit of RM 50,000 and proceeded to arrange for a loan with a
bank. He was however not successful in his loan application and called off the deal.
Then, Ms. Anita sold the bungalow for RM 600,000 to Ahmad. Ms. Anita's cost related to
the sale was as follows:
Agency fees
Valuation fee
Expenditure
Legal fee for transfer of property
Amount
(RM)
18,000
60,000
22,000
Total
100,000
The legal documents were signed on 15 June 2023 and the property was duly transferred to
the buyer on 15 August 2023. As at the date of the transfer Ms Anita has paid the bank
interest of RM 180,000 on the loan taken to acquire the bungalow.
Required:
Compute the tax payable by Ms. Anita under the Real Property Gains Tax Act 1976 (as
amended).
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