QUESTION 1

There are two certainties in life of which one is taxation. Tax plays a vital role in any country and the economy. Please deliver a 5-minute speech in English to the students of your university, convincing them on what taxation can do for the nation – the people, the government and the economy.
(20 marks)

QUESTION 2

Hanson Him, an established film producer has recently retired from his hectic film production job at the age of 50. He has always regarded you as his trusted tax advisor and recently engaged your firm to look into his family’s business affairs. He has requested for your expert advice on the relevant ideas to optimize his family’s tax position. You have gathered the following information during your recent discussion with Hanson and his family.
Hanson Him
As a gratitude for the excellent service during his tenure with the film production company, he received a lump sum gratuity payment of RM200,000 upon his early retirement at the age of 50 in January 2012.
Since young, Hanson has always been fascinated with magic and has often tested out his tricks with his children and friends at parties and casual gathering. Since retirement and having lots of spare time, he started performing at children charity functions and private business gatherings for small fee of RM 200 per performance as he do not regard himself as an expert magician.
He has no fix business but would gladly take up any offer for his amateur magician services. He feels he is doing this on a voluntary basis instead as a profession. In the last few months he has invested in a few magic tools and materials. His wife or daughter would often assist him in some of his bigger shows
Over the last 2 years, he has invested in several properties as follows:
A studio apartment in Mont Kiara
2 shoplots in Ara Damansara
A semi-detached house in Setia Alam
All the properties fetch good rentals and provide a steady stream of return for his retirement years . When the price is…