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Question - Luxury Leather Sdn Bhd (LLSB), located in Subang Jaya is a distributor of leather car seats. It obtained its leather from various suppliers in Europe. In the year 2019, the company purchased a key-man endowment policy on the life of the managing director, Mr Alberto, with the company as the beneficiary. The annual premium payable is RM60,000 and the sum assured is RM600,000. Under the direction of the managing director, the company's profit has increased by 20% each year for the last five years.
REQUIRED - Discuss whether the annual premium RM60,000 is tax deductible.
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