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1. What is Unit Trust?

2. Why we invest in Unit Trust?

3. Disadvantages in Unit Trust?

4. Is there a variety of Unit Trust in the market?

5. If market going down, should I sell Unit Trust?

6. How long should we hold Unit Trust?

GST : Pressure?

Comes into GST calculation again,

For example, for Pemborong calculation, Cost RM30, Selling Price RM40, Profit RM10.00
Assuming no additional cost and no changes of selling price, Pemborong is able to make a profit of RM10.00, this profit is a Value Added differences, which subject to 6% X RM10.00= RM0.60.
Probably the answer is GP profit x 6% = RM0.60 out from your GP profit.

However, mind twisting calculation, GST has to be done through in accounting as for the following
a) Paid to the vendor   (RM31.80) : RM30 x 6%
b) Received from Customer RM42.40  : RM40 x 6%
c) Pay to GST Custom (RM0.60) : Contra

You are actually getting the same RM10.00 profit without increase price with same profit margin, which is not from your GP Profit. Custom getting RM0.60

However if ignoring input tax pay for vendor, it would be
a) Paid to the vendor   (RM31.80)
b) Received from Customer RM42.40
c) Pay to GST Custom (RM2.40)

You are getting the same RM8.20 profit only. Custom getting RM2.40.

With the threshold of yearly revenue RM500,000 would put a lot of SME into the GST registration. I have attended few seminars talk on GST, and I am experiencing the crowd or the audience are becoming more alert and aware to the GST. They started to ask questions and surround the GST officer during Tea Break. The audience was basically coming from different background and industries.

I noticed some of the questions given unanswered while some of the questions answer was rather ridiculous, which change the way how business should operates.

One of the example which suggest if the normal operating business receive part payment for the goods, with no intention of refunding, the deposit or the part payment is considered to have GST, when first payment received even though the completion order is to be taken place for about 3 months. I might notice that the "deposit" or "advance payment" or "part payment" or "progressive payment" into GST calculation.

During the seminar, the crowd pops up so many questions at once if the topics left unanswered or with an unsatisfied answer.Well, this is not the end, GST is progressing itself into coming months, such as corporatize the Royal Malaysian Customs Department? For either to further enhance the process or to have a person to be blamed on if unsuccessful implementation instead? or how the funds comes and go, and how people is going to audit this kind of process? and how people are going to feel the benefit from GST within 6 months or after 2 years? or increase GST rate more than 6% rather than ever thought of decrease GST rate in coming years?

As usual, there won't be any measurement or ratings to this such as quality of life is degrading or upgrading as compare to Singapore, just like how Malaysia university ranking.
 
So how would the reaction of the people in SME in general which left uncertainty but with promises from the government that always put other GST countries on the table as a proof for it.

Some of my friend would start to rethink about the business, whether
a) continue the business
b) to shut down the business
c) to divide the whole business
d) to slow down the business
e) to improve the business

What I do is to advise them is to improve the business, because to divide the business would incur more expenses due to the resources is not meant to be sharing such as shop, factory, finance, staff and top management people. SME has to be start thinking about the Customer and Suppliers which might in the other way round

a) continue their business
b) to shut down their business
c) to divide their whole business
d) to slow down their business
e) to improve their business

There would be less cashflow with the monthly approx 6% over gross profit given to the custom, the concept is a more alike
a) 6% monthly sales commission
b) franchise business

However the twisted calculation is a proof that you are getting the profit back, how come?
Therefore, to show impact on timeframe, cashflow is outflow faster than inflow although the profit is exactly the same. That's why customer and inventories level need to be structured right now.

Please do plan well to soften the impact.


Title 1

Title 2

GST : Impact

GST is meant to replace the current consumption tax i.e. the sales tax and service tax (SST), to enhance the efficiency and effectiveness of the existing taxation system in Malaysia which is more effective, efficient, transparent and business friendly.

GST comes with comprehensive tools and steps to safeguard its purpose. Let's see

a) GST compliance software 
is making the wave inside every taxpayer business system and dig every piece of information from the daily transaction and ledgers to be submitted online shown as GAF below stated in "GUIDE TO ENCHANCE YOUR ACCOUNTING SOFTWARE TO BE GST COMPLIANCE"

b) Speed up Income Tax Audit
Cross checking by Income Tax department would be much easier and faster since documentation is properly done for custom tax.

c) Eight (8) types of audit 
to ready to challenge tough taxpayer.
i) Desk audit - checking and verifying information on GST return
ii) Refund audit - verifying refund claim
iii) Transaction audit - verify transaction exist and correctly complied and reported
iv) Advisory audit - provide advisory GST education encourage voluntary compliance
v) Compliance audit - comprehensive audit conduct on all transaction
vi) Cancellation audit - comprehensive audit all transaction before any cancel GST registration
vii) Special audit - determined by DG
viii) Large Taxpayer Unit (LTU) Audit - ensure their full compliance to GST legislations.

d) Penalty for late GST registration and late submission
which provide extra collection for tax

e) Making Business people care about their monthly accounts or quarterly accounts
Accounts records need to updated as frequent as possible and finalized

f) Bill Tax Invoices within 21 days
No delay or excuse for negotiating pricing

g) Clear information on Credit Note
Putting Tax Invoice No, with reason

h) To maintain profit and stay competitive, please do claim input tax
Without claiming or lazy to claim input tax, business would earn less profit. Please calculate.

i) To maintain competitive, cashflow planning on Debtors, Creditors and Inventories
This is a tricky part, quarterly submission would require more planning than monthly submission due to its accumulate 3 months GST payment and especially import transaction. Keeping non common inventories would drag business cashflow for quite some time, while payment made to custom is prompt payment.

j) Straight forward estimation of 6% Gross Profit Margin from Income Statement, but the profit is remain in the business.

Cost RM 30, Selling RM40, Profit RM10.00, Custom Get RM0.00 for those business without SST

with GST 6% inclusive, without changing cost and selling price.

Purchase RM31.80, Selling RM42.40, Profit RM10.00, Custom Get RM0.60
Here is the workout :
a) Paid to the vendor   (RM31.80) : RM30 x 6%
b) Received from Customer RM42.40  : RM40 x 6%
c) Pay to GST Custom (RM0.60) : RM2.40 (pay output tax) - RM1.80 (claim input tax)

k) 100% Directors or Business Owner responsibility 
Getting Directors and Business owners to really really manage their business well. Any outstanding issue such as payment to custom or income tax, would put overseas travel on hold.

l) Provide job for quality staff and how to maintain them
Provide better job and salary for those qualified and ICT industries here to assist custom.

m) Single Taxable Person
This specific term used in GST to avoid artificially separate their business activities for the purpose of tax avoidance, perhaps it also meant for avoiding GST registration. Kindly consult your Tax person for more information.

n) Strict rules to those increase Pricing
There are to believe that there are slightly price increase in goods generally, however strict rules would be applied to those increase price higher than the shopping list that would be given on January 2015. This list definitely draw a line between able to make a profit or not and for withdrawing out some of the product on shelf if the price is incompatible to the market. Or else consumer has right to report their dissatisfaction.


All of the above is provided as a guideline only. Those who care about GST would work and sit down together with those who care about their business.

GST : Registration Particular

Everybody become more aware that registration actually starts on 1st June 2014. So far not many people have attended the GST talks, which might cost above RM500 per person which is claimable under HRDF.

For a smaller business, it could be a high price for a seminar, considered it as an expensive talk. Anyhow, registration has started. There is an urgency for saying "must register before 31 December 2014", which I might suspect, there would be a delay on processing due to many unforeseen and foreseen circumstances which delay company to obtain a GST ID number.

To avoid such unnecessary delay, 6 months is quite a sufficient time to get things ready, especially GST ID to appear in the Tax invoices and to appoint authorized person to handle GST beside own boss him/herself.  

GST registration form can be found with the link below. http://gst.customs.gov.my/en/rg/Pages/rg_fm.aspx  

GST registration online can be found with the link below. https://gst.customs.gov.my/TAP/_/

Form involved for initially is GST-01. GST-01 would tell what are the appropriate form needed while filling the form. Due to the advances of Information Technologies, email address is needed from the Business Owner or Directors or Person in charge. GST also request particulars of authorised person or person(s) to be registered in the form, which indicates who are the person in charge of GST for future GST audit or GST issue if arise. Particulars such as, name, I/C, email, telephone, fax, residential address, designation, appointed date, and signature are requested.


Of course, those who handle full set of accounts might fit in into this category because handling GST matters at the same time. Are we all ready for it? Below is the Industry Codes (Piawaian Klasifikasi Perindustrian Malaysia 2008) for your findings on industry code in the Part D GST-01 form.

GST : Tax Avoidance Clause?

As usual, if there is any fraud happening, the magistrates would issue a warrant, or search without a warrant, to the business entities. While running through the Guideline from custom, below is one definition on "SINGLE TAXABLE PERSON". Quite interesting is that, the Custom and the Act is giving solution on that by combining all business entities into one single taxable person regardless different business nature but sharing same kind of resources such as finance, economy and have closed relationship as an organisation in the business nature.

Let's have a look :-

Single Taxable Person : In General Guide from Custom

43. A single taxable person means two or more business entities which have been directed by the Director General to be registered under one registration number. Two or more business entities can be classified as a single taxable person when they artificially separate their business activities for the purpose of tax avoidance. All persons named in the direction by the Director General will be registered under one registration number and they may jointly nominate the name to be used for the registration of the single taxable person within fourteen (14) days from the date of the direction. Failing which, registration will be named as specified in the direction. The liability date for a single taxable person registration is the date specified in the direction.

Rang Undang-Undang CBP (GST) 2014
Arahan untuk mengira orang sebagai orang kena cukai tunggal

23. (1) Tanpa menjejaskan seksyen 20, jika Ketua Pengarah berpuas hati bahawa apa-apa perasingan aktiviti perniagaan adalah dibuat-buat yang menyebabkan pengelakan cukai, dia boleh membuat suatu arahan mengarahkan supaya orang yang dinamakan dalam arahan itu dikira sebagai orang kena cukai tunggal yang menjalankan aktiviti perniagaan yang diperihalkan dalam arahan itu dan bahawa orang kena cukai tunggal itu hendaklah bertanggungan untuk berdaftar berkuat kuasa dari tarikh yang ditentukan dalam arahan itu.

(2) Bagi maksud subseksyen (1), dalam menentukan sama ada apa-apa perasingan aktiviti perniagaan adalah dibuat-buat, hendaklah diambil kira setakat manakah orang yang berlainan yang menjalankan aktiviti perniagaan itu berkait rapat antara satu sama lain melalui hubungan kewangan, ekonomi dan organisasi.

For further explanation found from the General Guide GST,

Financial link refers to:

i. financial support given by one party to another;

ii. one party not financially viable without the support from another party; or

iii.common financial interest in the proceeds of the business

Economic link refers to :

i.seeking to achieve the same economic objectives;

ii.activities of one party benefit the other party; or

iii.supplying to the same circle of customers

Organisational link refers to:

i.common management;

ii.common employees;

iii.common premises; or

iv.common equipments

Example 1

X runs a restaurant business and sells food only whereas Y sells beverages. Both businesses share the same premise, employ the same employees and serve common customers. The total sales of food per year is RM 400,000 and that of beverages is RM150,000.

In this example, both businesses are not liable to be registered since their annual taxable turnover is below the prescribed threshold. However, it is obvious that the business activities of X and Y are intentionally separated in order to avoid from the requirement to be registered.

Both businesses fulfill the requirement to be registered as a single taxable person because of financial, economic and organisational links such as sharing thesame premise, having common customers, employing the same workers and utilizing common facilities such as chairs, tables, telephone and utilities.

As such, Customs will direct X and Y to be registered under one registration number.

Example 2

Encik Samy dan Encik Muthu own two partnership businesses providing legal services.

Legal firm A has a taxable turnover of RM300,000 and legal firm B has a taxable turnover of RM250,000. In this example, if it is proven that there are financial, economic and organisational links between the two legal firms, then these two partnership businesses will be directed to be registered as a single taxable person since the combined turnover of RM550,000 has exceeded the prescribed threshold.