Reference no: EM132650585

Peter, a consultant holds several real properties in Malaysia for investment purposes. On 8 August 2016, he disposed of an abandoned house in Negeri Sembilan which he acquired on 1 June 2012 for RM256,000. The disposal price was RM192,000.

On 21 November 2016, he disposed of a piece of vacant land for RM3,500,000 (inclusive of a platinum ring with an agreed price of RM200,000) to his cousin sister. The similar ring could be purchased at Habib Jewel at RM240,000. He purchased the land on 15 June 2012 for RM2,400,000. He spent RM50,000 for bushes clearing of the vacant land prior to the sale.

Compute Peter's liability to real property gain tax (RPGT) for the year of assessment 2016.

Proshop Sdn Bhd is a property investment company. It does not trade in properties. The disposal of properties are as follows:

            Date of                 Date of             Chargeable

             Acquisition          Disposal             Gains/Loss

Shop A   21 Jul 2008      05 June 2012          (100,000)

Shop B    31 Nov 2010       17 Nov 2013       (300,000)

Shop C        08 May 2011     03 Aug 2014.          800,000

Required:

Question 1: Calculate the real property gains tax payable by Proshop Sdn Bhd in respect of YA 2014.