Business & Society - Social Performance Assignment

Business and Society - Social Performance - Assignment Example For this situation the accompanying organizations will be analyzed: Snapple, which disperses and makes natural product juices and teas; Nestle, whose auxiliary, Perrier, is a brand of mineral water; and Dole, who fabricates and disseminates different natural product juices. The Federal Sentencing Guidelines explicitly express that associations are to follow and execute a program that tends to consistence with morals programs (Federal Sentencing Guidelines  §8B2.1). In particular, this segment is worried about guaranteeing that all associations not just have a compelling moral Code of Conduct, which explicitly addresses that associations must use due ingenuity to forestall and recognize criminal direct and advance a powerful hierarchical culture that supports moral lead and law consistence, however that these associations are viable with guaranteeing that representatives know about the authoritative Code and tail it. This paper will clarify who Pured won't just actualize a powerful program however that its workers know about the Code of Conduct and will tail it. Presentation Puredâ ® is a refreshment organization which makes and circulates packaged mineral water and bundled natural product squeeze as items. It is a medium-sized open constrained organization propelled in 2009, with 68% open possession and 32% private capital of its complete worth. ... For this situation the accompanying organizations will be inspected: Snapple, which circulates and fabricates natural product juices and teas; Nestle, whose auxiliary, Perrier, is a brand of mineral water; and Dole, who makes and disseminates different natural product juices. Snapple Dr. Pepper and Snapple are a piece of the Dr. Pepper Snapple Group, Inc., and their Code of Business Conduct and Ethics is accessible at investor.drpeppersnapple.com. They have explicit precepts with respect to irreconcilable circumstances, political commitments, private data, respectability and reasonable managing, work of family, and burglary or abuse of advantages. Since Dr. Pepper and Snapple is an enormous association, the Guidelines Manual expresses that they will dedicate progressively formal tasks and more prominent assets in meeting the rule necessities (Federal Sentencing Guidelines). The rules additionally express that the organization must set up principles and methods to forestall and distin guish criminal direct; that the organization must not purposely recruit someone who has occupied with criminal operations or has recently broken consistence with morals programs; that the organization will impart the morals approaches occasionally; that the morals program will be upheld reliably; and that if there is criminal lead, the association will make move to properly react (Federal Sentencing Guidelines). On account of Dr. Pepper/Snapple, there is next to no in the Code of Business Conduct and Ethics page that would propose that they are acclimating with the Federal Guidelines. They don't address criminal lead, but to state that the representatives of the firm should keep all laws, rules and guidelines. They don't layout what steps they will take if there is a

Management of Pain in Trigeminal Neuralgia

The board of Pain in Trigeminal Neuralgia Percutaneous administration of agony in Trigeminal Neuralgia under registered tomography direction Corersponding Author Dr. Mitesh Kumar Principle Author Dr. Roy Santosham Co Authors Dr. Bhawna Dev Dr. Deepti Morais Dr. Rupesh Mandava Dr. R. Jeffrey Conceptual Trigeminal Neuralgia (TN) is a concise, unbearable and maybe the most serious torment known to man influencing the hemifacial district. It happens for the most part because of convoluted vessel packing the trigeminal nerves, however by and large, the specific etiology and pathogenesis stay dubious. The main line helpful choice for patients influenced by TN is the clinical line of the executives and patients unmanageable to the equivalent, are offered different intrusive methods like inflatable pressure, gamma blade medical procedure, radiofrequency removal, and so forth. In this paper, we present percutaneous administration of the torment by infusing neurolytic tranquilizes in the foramen ovale under Computed Tomography (CT) direction as the new and promising procedure of treatment in TN. Watchwords Trigeminal Neuralgia, percutaneous administration, CT direction, neurolytic drugs Objective To assess the viability and wellbeing of Computed Tomography guided percutaneous administration of torment in trigeminal neuralgia utilizing neurolytic drugs. Presentation Trigeminal Neuralgia is otherwise called tic douloureux, a term given to this excruciating ailment by Nicolaus Andre in 1756 [1] . TN is an agony which regularly is exceptional, brief, typically one-sided, intermittent stun like including the parts of fifth cranial nerve [2]. It very well may be chiefly ordered into two kinds. First being, the old style TN (Type I), which is expected to neurovascular pressure, the most widely recognized vessel causing the equivalent being unrivaled cerebellar corridor followed by foremost sub-par cerebellar conduit [3]. Second sort is atypical TN (Type II), auxiliary to causes like injury, tumor, different sclerosis or herpetic contaminations. The differentiation between these two sorts is primarily founded on clinical indications [4, 5] as Type I torment is long winded in nature while Type II torment is increasingly consistent. TN is regularly called by numerous individuals as â€Å"the self destruction disease† [6] as the patients who experi ence the ill effects of it would prefer to end their lives than bear the agony. The underlying line of treatment for TN is clinical administration by drugs like Carbamazepine, Gabapentin, Oxcarbazepine among others. Patients of type I TN may likewise be prompted microvascular decompression. Those patients who don't react or have contraindications to the previously mentioned medications or experience no adjustment in the force of the agony are called Refractory TN [7]. Such patients are exhorted obtrusive systems like trigeminal nerve square neurolytic square, radiofrequency removal, gamma blade medical procedure and inflatable pressure. We portray our involvement with percutaneous administration of torment by infusing neurolytic sedates in the foramen ovale under CT direction in six patients, experiencing TN. Technique and Materials utilized Pre procedural work up The pre procedural stir up included clinical assessment and exhaustive perusing of the Magnetic Resonance Imaging (MRI) sweeps of the considerable number of patients to preclude any neurovascular strife. Any patient with neurovascular strife was viewed as an avoidance basis in our examination. These patients were accounted for consuming the medications for TN for more than a quarter of a year with no improvement in the agony. The torment score assessment was finished utilizing Numeric Rating Scale [8] and Wong-Baker Faces Pain Rating Scale [9] as a pattern assessing point to be contrasted with a similar scoring framework after the technique. Routine examinations, for example, coagulation profile, liver capacity test, renal capacity test, HIV and HbsAg were done before the method. Numeric Rating Scale Patients rate torment on a number scale from 0-10, 0 being a delineation for no torment and 10 being the most noticeably terrible agony possible. Wong-Baker Faces Pain Rating Scale The Wong-Baker Faces Pain Rating Scale is a torment scale that was created by Donna Wong and Connie Baker. The scale shows a progression of appearances going from a cheerful face at 0 (No Pain) to a crying face at 10 (Worst Pain Possible). The patient must pick the face that best depicts how they are feeling. In our investigation, we utilize the Wong Bakers scale to evaluate the patients’ torment when the method. The neurolytic medications and materials utilized in the technique were 22 G spinal needle for square, 25 G needle for skin invasion, 2% xylocaine , Iohexol Non ionic differentiation medium, 100% liquor, 1ml syringe and typical saline arrangement. The patient was placed in the prostrate situation with head set backward occipitomental position (jaw up and neck broadened), went 30â ° to the contrary side of the square. The foramen ovale was recognized under CT direction and a virtual track was made beginning from a point which was 2-3cms parallel to the edge of mouth on the skin to foramen ovale (Figure 1). When the direction of the needle and the foramen ovale was affirmed on CT examine, the skin at the purpose of section was invaded by 2ml of 2% xylocaine utilizing a 25G needle. At that point, a 22G spinal needle was embedded at a similar point and pointed toward arranged direction towards the foramen ovale (Figure 2). To keep the needle from entering the oral cavity, a finger from inside the mouth can be utilized to manage the equivalent [10]. However, we didn't have any significant bearing this in any of our patients. Following this, negative yearning was endeavored to check for Cerebro Spinal Fluid (CSF) or blood suction. In the event that the suction contained CSF or blood, at that point the needle must be straightened out. At that point 0.5ml of blend produced using 1ml of iohexol and 2ml of 2% xylocaine was infused into the objective site so as to check the spread of injectant and careful needle tip position. When the tip of the needle contacts the mandibular nerve root, the patient may whine of the specific comparative agony which he/she has been enduring, subsequently affirming the exact needle tip area. This injectant goes about as an analytic square if the trigeminal ganglion is the agony generator with xylocaine giving sedation preceding liquor infusion. A blend containing 3ml of 100% liquor, 1ml of iohexol and 1 ml of saline was made. Of this 1ml of the blend was infused into the foramen ovale (Figure 3 and 4). Post system look at examine was performed to run any intricacy. Result Definite situation of the needle tip in the foramen ovale was found in all the six patients in this way making 100% specialized progress. Every one of these patients accomplished a noteworthy degree of alleviation with a normal agony score of two following the methodology. Twenty four hours after the technique, they appraised their decrease of torment at a normal agony score of one. Four out of the six patients ie Patient No. 1, 2, 4 and 6 were totally assuaged of their torment with one year follow up without taking any prescription. In Patient No. 3, the technique was surrendered as during the symptomatic square, the injectant was seen following into CSF storage and fourth ventricle. Understanding No. 5 detailed with a comparative agony of TN inside a quarter of a year with a torment score of five, minimal not exactly the pre-system torment score of six. The torment was increasingly extreme in the pterygopalatine portion, subsequently a pterygopalatine shut was done and the patient had a torment score of one twenty four hours after the methodology. Subsequently, the underlying trigeminal neurolysis was in part fruitful in this patient. No post procedural complexity was found in any of our patients. Conversation The trigeminal nerve emerges from the parallel pons at its boss to mid bit. It goes ahead in back fossa and converges with the trigeminal ganglion in the Meckels cavern. The trigeminal ganglion is found parallel to the enormous sinus. It gives three divisions ophthalmic (V1) portion which rises up out of predominant orbital crevice, maxillary (V2) from foramen rotundum and mandibular (V3) from foramen ovale. The trigeminal nerve gives sensation to the face, mouth and supplies the muscles of rumination. TN for the most part includes maxillary division and mandibular division of trigeminal nerve however it might include the ophthalmic division too. The detailed yearly rate pace of TN is about 4.5 per 100,000 people [11] however the genuine figures might be even a lot higher in light of indicative difficulties related with the ailment. TN is more typical in females than guys with a proportion of 3:2 and is normally observed following 50 years old [11]. Trigeminal nerve square is an up and coming treatment in TN patients who are obstinate to clinical line of the board. It diminishes the agony and furthermore decreases the reactions of medications which are utilized for the treatment. Prior investigations were principally done utilizing x-beam or fluoroscopic direction which had its own confinements regarding picture quality and two dimensional perspectives. As opposed to this, CT examine gives magnificent and direct representation of foramen ovale prompting right situation of needle [12] and along these lines scoring over fluoroscopy. This lessens the odds of infusing neurolytic specialists at inappropriate areas and in this manner diminishes the symptoms. In our cases, introductory check CT filter was finished by infusing 1ml of iohexol to decide if the needle is in definite area. This doubly guaranteed us about the area just as the spread of injectant. This was unique in relation to past investigations done utilizing fluoroscopy where a symptomatic square utilizing xylocaine must be provided so as to affirm the area of the needle tip. We utilized a blend of 3ml of 100% liquor, 1ml of iohexol and 1ml of saline for trigeminal neurolysis notwithstanding, Han et al expressed that trigeminal nerve obstruct with high centralization of lidocaine (10%) is equipped for accomplishing a transitional time of relief from discomfort, especially in patients with lower torment and shorter term of torment before the method [13]. Liquor spreads effectively and ought to be utilized warily. Different operators which can be utilized bu

7 Things That I Learned From Guy Kawasaki That You Can Implement In Blogging

7 Things That I Learned From Guy Kawasaki That You Can Implement In Blogging Make Money Online Queries? Struggling To Get Traffic To Your Blog? Sign Up On (HBB) Forum Now!7 Things That I Learned From Guy Kawasaki That You Can Implement In BloggingUpdated On 23/04/2017Author : Harneet BhallaTopic : BloggingShort URL : http://bit.ly/2ozhVCC CONNECT WITH HBB ON SOCIAL MEDIA Follow @HellBoundBlogGuy Kawasaki is a well known personality and the co-founder of Alltop.com and a partner in Garage Technology Ventures. He is a businessman, an online personality and pretty experienced person.I generally watch his videos to get some inspirations and understand how the Business online world works. A few days back I was watching a video in which Guy Kawasaki explained some myths that people have about running a business. I personally think that Blogging is not less than a business, so I tried to link the myths about the business to blogging. And guess what? I was able to do that.So, today I will be sharing with you 7 things that I learned from Guy Kawasaki, that you can implement to become successful in the online world.1. Hire People More Capable Than YourselfPeople generally hire people that are less efficient than themselves as they dont want anyone to show them down in any field. Come on guys, no one can be master in all fields. People are experts in particular things, so if you hire anyone expert in any field. It is a win-win situation for you.You should proudly say that Yes, he/she is even better than me in Social Media Marketing or in any field. It ultimately makes your team superior. Work on your team, not just on yourself. It will surely help in long term.2. Blogging Experts Are CluelessYes, its right. No one can understand your brand or your blog/website as you can do. They can just share their experiences with you but it is not necessarily that you are on the same issue, and on the same road. Problems are different and in the same way solutions are different as well.If anyone out there calls himself a guru or expert by himself, trust me, STAY AWAY FROM THAT PERSON. If a person is truly an expert in the field then silence patience would be in them automatically. You can only take advice from the experts but you cant get answers from them. Use their advice to create your answers and things would work out.3. Readers Cant Tell You What They NeedYes, its right. Readers cant explain what they are exactly looking for. The reason being the upcoming content is kind of an imaginary thing, and why people would imagine for your blog. You need to figure it out on your own. There are many ways to do so, search among comments, figure out what people are looking for in the Facebook groups etc.But on the contrary people are looking for fresh content according to their needs. So you need to spice up your content by checking out their needs as well. If you are able to do it, then your blog will get an upper side for sure.4. Design/Appearance CountsDesign matters. Trust me or not, I have personally seen in my two years of blogging, t hat most of the time a book is judged by its cover. So, if you are thinking that you have implemented a normal looking theme, and people would love that just because Content is King. Then I am sorry, you are not on the right path.READ6 Exclusive Pinterest Tips for Your BusinessTry to work on the appearance on your website, get a custom logo, with content displayed with a nice typography. And see the magic. People would love to read your content as it will be delivered in a nice plate.5. Value is Different from PriceValue and price are often taken as one. But they are a lot different. For e.g. you spend 30$ on a plugin that helps to save your content, comments and much more that must be of a lot more value. You cant say that I will not spend 30$ to protect my blog content.If you still are not concerned about your blog content then, it clearly means that the blog content is not even worth 30$. And I am sure it is more valuable?So, always think about the value and not the price. If val ue is more than the price, the deal is always profitable. Do it without even thinking about the second thought.6. Real CEOs Take ResponsibilityReal CEOs have to take responsibility. You cant skip from your responsibility; you have to be there in every good or bad situation. You have to believe in your team that is helping to take your blog to the next level. You have to give them the motivation they need to work day in and day out.You cant be the one who doubts whether the blog you are working on will be a big blog or not. Instead you should believe that yes it will be a big blog and heres the plan for that. Real CEOs take responsibility and lead, and the team follows. Owners can never be just like another team member they have to lead. Prepare yourself.7. Believe In Your BrandIf you dont believe that your blog will be a big one or top ones in the market, then I am pretty sure that no one in this world can make your blog a big one. Only you the founder has the power of imagination to make their blog a big one. You might need a help of a lot of people to do that but without you, no one can make it.So, do believe in the thing that you have created. Think about the reason for which you entered blogging, work on that same reason. Trust that reason and you will be there.Do share your views about this post? We would love to hear from you via comments.

Lack Of Education And Improper Training Is Racial Profiling

Another side effect of lack of education and improper training is racial profiling. Not only does racial profiling violate civil liberties, it also hinders the effectiveness of local law enforcement. This can be seen in the case of Yale student and son of New York Times columnist Charles M. Blow. Blow’s son was walking out of the library on campus when he was confronted by police at gun point. Blow’s son fit the description of the suspect. The suspect was described as a tall, African-American student. The officers failed to ask for identification or explain why they were detaining him before drawing their weapons. After more careful questioning, Blow’s son was released. If Blow’s son had unknowingly made a move that seemed threatening†¦show more content†¦He was shot three times and died later. Ford’s demise began at the moment that the officers laid eyes on him. They saw Ford was African-American, stereotyped him, and decided his civil rights were not worth protecting. An officer with more education and a more developed world-view would have likely handled the situation differently. Higher education is correlated to a more liberal attitude which means more tolerance for people of different races. Ford’s civil rights would have been taken into consideration and his death would have been avoided. Civilians are not the only ones endangered due to situations like these. The efficiency of law enforcement as a whole is undermined with every new incident that comes to light. People begin to lose faith in law enforcement and they see it as an adversary. The American Civil Liberties Union (ACLU) and the American Civil Liberties Union of Minneapolis conducted a study as part of a criminal law enforcement reform project. This study shows that black and native Americans were approximately 8 times more likely to be arrested (in Minneapolis) than white people. These statistics articulate what the people already know and the officers are no longer a form of protection but rather something that they need to be protected from. They fear law enforcement and are more likely to act defensively when being investigated or questioned. This defense on the civilian’s part can be mistaken for offense by law

Leadership, Engagement, Achievement, And Pride - 955 Words

There are a lot of programs and organizations at Georgia State University (GSU). None of these organizations are quite like Panther L.E.A.P. (Leadership, Engagement, Achievement, and Pride). Panther L.E.A.P. is one of the few programs at GSU that solely revolves around leadership. This program is specifically designed to help students in their leadership skills and overall development. This program focuses on student development on a personal level. After watching the interaction between the mentors and the mentees, one can conclude that they are a caring and loving community, concerned about each other. This community helps lead GSU students in the right direction towards success. Once students complete the program, they will have gained skills needed to help make them a well rounded person. For instance, each person will possess leadership skills, confidence, and self esteem. Their new skill set will give confidence and capability in handling and directing any situation that comes their way. Panther L.E.A.P. is a unique asset to Georgia State University because it aids in strengthening the student with developmental techniques, such as leadership, balance, and self-confidence that will shape the student into a personal improved version. Leaders help themselves and others to do the right things in different types of situations. Leadership is a very important developmental characteristic that Panther L.E.A.P. uses in their program and is the main asset the program wants theShow MoreRelatedMy First Year Teaching For Student Engagement1168 Words   |  5 Pageshighly engaged in learning. They also made the most learning gains out of the 12-second grade classes for the 2013-2014 school year. Subsequent, there are a variety of strategies that teachers are able to use throughout lessons to assist in student engagement. One strategy is whole brain teaching or power teaching. Whole brain teaching consists of highly disciplined and tightly organized teaching practices that are delivered through fun, games and humor. Marzano (2012) shared that four ways to get andRead MorePoor Schools Obtained High Achievement808 Words   |  4 PagesIn this case study the researchers examined how poor schools obtained high achievement. The questions asked were: what were some things that leadership did that made them good leaders, what was the school culture like and what other outside components attributed to academic success for the students? The questions were important because they allowed researchers to look at data that contributed to academic success for children living in poverty. 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The premise of the program is that a profitable organization will show growth as a result of satisfied customers, an engaged workforce and a leadership team that fosters a culture of empowerment. The program attacks employee engagement at the individual level. Each person that participates in GGOL is challenged to drive organizational change by first driving their own individual change. It encourages a team approach to complete physicalRead MoreThe School Leaders By Arthur Lawrence And James Smith781 Words   |  4 Pagesexistence of what we are calling â€Å"straddlers.† Straddlers are school leaders in our sample whose understanding of the gap fell between the abstract and technical and opportunity disposition. On the one hand, these school leaders initially defined the achievement gap using the technical langu age. On the other hand, these school leaders during further interview discussions also demonstrated a semblance of an alternative interpretation on gap. 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Theories of Max Weber and Karl Marx Applied to the Case of...

â€Å"Truth is anything society deems it to be† is considerable right when our society believes that the only method of determining the â€Å"truth† is through laws and ideologies, which have been administered by the upper class Europeans. Our laws have been constructed to support the interest of the majority population, which supports their interest rather, then the general citizens. That being said, who created the legislation and administers laws, and who has the resources and inclination to challenge these laws? (Branch, 129). This question will be answered through the theories of Max Weber and Karl Marx who will be compared in regards to the construction of the legal knowledge, how law has become the truth in societies with the help of the†¦show more content†¦Viola Desmond was a wealthy and well-educated black woman. Despite her efforts of achieving social mobility in her race, she still fall victim to discrimination. Desmond was violently removed from t he Rosedale theatre in Nova Scotia for allergy infracting the Nova Scotia theatres, cinematographs and Amusement Act of 1915. This wide ranging act sought to provided penalties for those individuals who did not pay an amusement tax but nowhere did it mention race specifically. (Britch, 128) Since she insisted on sitting downstairs, she was one cent short on tax. (Brench, 128) When Desmond refused to relocate to the upper level that was reserved for blacks, she was forcibly removed from the theatre by a police offices causing injury to her knee and hip. Desmond proceeded to take legal action of the court this matter, hoping to obtain justice and create awareness of discrimination within her community. Instead, the courts were able to manipulate the law ** refused to view this case as an act of discrimination and continued to find Desmond guilty. In applying the Marx conflict theory to the Viola Desmond, reiterates that deviance and power belongs together. Viola refused to be relocate d to the upper level of the theater, has categories her as being labeled as deviant because she hadn’t compelled to the rule of law. Even though she was in a reasonable class and had significant amount of power because she owned

The Bond of Friendship free essay sample

THE BOND OF FRIENDSHIP I NEVER REALIZED THE NEED OF FRIENDS UNTIL I WAS THIRTEEN AND REACHED SEVENTH STANDARD.BEFORE THET, A FRIEND WAS REQUIRED ONLY TO HELP IN COMPLEING THE WORK WHILE WAS AWAY AND TO HAVE TIFFIN WITH ME AND SIT WITH ME. MY FATHER WAS POSTED TO VARANASI, A CITY IN INDIA IN THE YEAR 1998 AND I WAS SENT TO ONE OF THE KNOWN SCHOOL OF THE SOCIETY. BUT DUE TO SOME PROBLEMS, WE SHIFTED TO A NEW HOUSE, A NEW LOCALITY AND WITH ALL THIS, A NEW SCHOOL.IT WAS THE YEAR 2004 AND I WAS PROMOTED TO SEVENTH STANDARD. THERE I MET THOSE SEVEN STUDENTS WHOM NOW I CAN PROUDLY RESEMBLE AS MY FRIENDS.THEY TAUGHT, MADE ME REALIZE THAT FRIENDSHIP NOT ONLY MEANS TO SIT TOGETHER AND HAVE LUNCH, IT IS A BOND THAT KEEPS US TOGETHER. OUR FRIENDSHIP WAS NOT LIKE THAT OF OTHERS, IT WAS DIFFERENT. We will write a custom essay sample on The Bond of Friendship or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page THERE WERE SEVEN OF US – I, KAUSHIKI, SHUBHI, SHIVAM, KANWAL, PUNEET AND ABHISHEK.LIKE THE SEVEN COLOURS OF RAINBOW WE ALWAYS REMAINED TOGETHER AND PROMISED THAT WE WILL REMAIN TOGETHER. OUR BOND OF FRIENDSHIP WAS GROWING STRONGER WHEN MY FATHER’S TRANSFER LETTER CAME AS A SHOCK TO ME, TO US. I WAS FORCED TO RETURN TO MY HOMETOWN BAREILLY ANDWITH TEARS IN MY EYES, LEFT MY BELOVED SCHOOL, MY BELOVED FRIENDS. IT WAS THE FIRST TIME IN MY LIFE THAT I FELT LONELY. I NEVER MADE SUCH FRIENDS IN MY NEW SCHOOL. I MISSED MY FRIENDS AND THEIR FRIENDSHIP. NOW, AFTER TWO YEARS OF OUR SEPERATION WE STILL CALL EACH OTHER, TAKE CARE OF EACH OTHER AND HELP EACH OTHER A LOT IN OUR STUDIES. NOW, WE HAVE GIVEN OUR BOARD EXAMINATIONS OF CLASS TENTH AND HOPING THE BEST RESULTS FOR EACH OTHER , STRENGTHNING OUR BOND OF FRIENDSHIP.

Touro University International Essays (1331 words) - Economy

Touro University International ETH 501 Module 1, Case Assignment Dr. Steven J. Gold INTRODUCTION The purpose of this report is to research information about Martha Stewart and explain if, as a CEO, did Martha Stewart handle the indictment responsibly. By discussing these topics, I hope to offer some knowledge on Martha Stewart, her company and the indictment. I will conclude this report with a brief summary of the entire analysis, highlighting some of the most significant parts that the report contains. Martha Stewart Born Martha Kostyra, Martha Stewart as a child was a Straight "A" student. Martha Stewart won a partial scholarship to Barnard College in New York City and to help pay expenses she worked as a model. She began her college career studying chemistry, but later switched to art, European history and architectural history. After Martha's sophomore year she married Andrew Stewart after college she continued modeling and started doing television commercials. She quit modeling after her daughter was born and two years later started a career, as a stockbroker. She eventually left the stockbroker career and her and her husband moved to Westport, Connecticut were they renovated her famous house now seen in her television show. She eventually started a catering company and a retail store selling specialty foods and supplies for entertaining. Martha Stewart wrote articles for the New York Times and was an editor and columnist for the magazine House Beautiful. She also published the first of many lavishly illustrated books. She eventually started producing dinner- music, videotapes, CDs, television specials and dozens of books on food, weddings, Christmas, gardening and restoring old houses. Martha signed a contract with Kmart doing advertising and consulting, she became a contributing editor to Family Circle magazine, and started her own magazine, Martha Stewart Living, which she eventually turned into a half hour television show. Martha Stewart became a household name but in 2003 she would have charges brought against her and went to trial in 2004. Her charges included "Obstruction of Justice: Alleges that Stewart tried to hamper the SEC investigation into her stock sale by providing misleading information, Securities Fraud: Alleges that Stewart made false statements about her stock sale to deceive the investors in her company, Martha Stewart OmniMedia, Conspiracy: Alleges that Stewart and her broker Peter Bacanovic willingly worked together to obstruct justice and issue false statements, and False Statement: Alleges that Stewart lied when she said that she had an arrangement to sell her stock when it dipped below $60, and when she stated she did not know the Waksal family was selling their stock"(The Cheating Culture, 2006). THE CASE Martha Steward had this to say to her fans " Dear Friends: I am obviously distressed by the jury's verdict but I continue to take comfort in knowing that I have done nothing wrong and that I have the enduring support of my family and friends. I will appeal the verdict and continue to fight to clear my name. I believe in the fairness of the judicial system and remain confident that I will ultimately prevail." She was accused of engaging in illegal insider trading. Stewart sold stock in a biopharmaceutical company called ImClone Systems, Inc on December 27, 2001 after receiving nonpublic information from Peter Bacanovic her broker working at Merrill Lynch, Pierce, Fenner & Smith Incorporated. Martha Stewart's trade occurred just before the release of a decision from the Food and Drug Administration (FDA) about an important cancer drug "Erbitux" that was being developed by ImClone. On December 27, 2001, Peter Bacanovic learned that two of his other clients, ImClone CEO Samuel Waksal and his daughter Aliza Waksal, were selling of the ImClone stock they held at Merrill Lynch. In violation of Merrill Lynch policies governing the confidentiality of client transactions, Peter Bacanovic instructed his assistant, Douglas Faneuil, to tell Martha Stewart about the Waksals' action, which was not public information. Information that the Waksals' were selling would have been important to the reasonable investor because, among other things, those sell orders signaled insider doubt about the anticipated FDA decision, the prospects for Erbitux, and the future of ImClone. Martha Stewart placed an order to sell all 3,928 shares of her ImClone stock, which saved her $45,673. The Securities and Exchange Commission then filed charges. MARTHA'S ACTION As CEO of her company I believe Martha Stewart's conduct was unethical. It most closely identifies with an ethical egoist. She only thought about how her action would affect her and not the rest of her stockholders. During many interviews she explained that she was mostly sorry for how this

Finances and Accounting

Finances and Accounting The Philosophy of Public Finance Mason Gaffney is one of the philosophers in the economic world who has created the philosophy of public finance. One of the principles of this philosophy is that a person does not pay taxes from the land, this is the land gives money for payment. Therefore, Gaffney draws a line between an owner and a land.Advertising We will write a custom coursework sample on Finances and Accounting specifically for you for only $16.05 $11/page Learn More Then, Gaffney refers to the ways when taxes should be either reduced or eliminated, these are the cases when money are gained for public purposes, when the owner uses the land to serve others and when he/she has to hire labor. The finances presupposed for taxes should be spend on other issues. Gaffney is also sure that people who possess land should pay more in comparison with those who do not possess it as it is obvious that those who have land have more income and can pat taxes in compari son with those who do not have land as additional indirect income. The â€Å"ability-to-pay† idea seems rather attractive to many philosophers of public finances. This point of view is interesting as it preserves incentives. The core idea of this philosophic idea is â€Å"a logical extension of the productivity theory of distribution where people are to be rewarded according to their contribution to the joint products of the economy† (Gaffney, 1998, p. 177). Considering the building on the new houses, the landowners in this case should be reduced from the taxation as new buildings promote the development of the city and land, in this case, is considered as public value. Additionally, the flourishing of a city increases the land taxation and the income for public needs. Governmental Accounting and Nongovernmental Accounting According to Governmental GAAP Guide 2009, governmental accounting deals with public corporations and the bodies which work with politics. Additiona lly, the entities may be considered as the government if they meet the following requirements, the elections to one or more states takes place, â€Å"the potential for unilateral dissolution by a government with net assets reverting to a government† (in Crawford Loyd, 2008, p.1-24) and an entity possess the power to enact a tax levy. Nongovernment accounting deals with the entities which do not possess any of these characteristics. Therefore, it may be said that the main difference between governmental accounting and nongovernmental accounting is the details of payment. If the financial operations are directed at elections and other supportive aspects, the accounting is governmental. If payment is directed at other particular purposes, the accounting is governmental. The Relationship between Budgeting and Financial Reporting in Government Reposting has become one of the most essential aspects of budgeting and governmental accounting. The information resented in reports is ai med at helping control budget expenses and follow the violation if it takes place. In most cases the information is delivered every 45 days after the end of a fiscal year, however, there are situations when reports are to be completed within a month or for special demand. The reports are created by the audits which work in and auditory companies.Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Audits work in accordance with the particular rules and they bare responsibility for the reports they complete. Audits may give the company several days to eliminate the violations where they took place and present the report without those violations however with the mentioning that they were. Audit report is an important document which shows the current state of affairs in finances of the company. Crawford, M. A. Loyd, D. S. (2008). Governmental GAAP Guide 2009. New York: CCH. Gaffne y, M. (1998). The Philosophy of Public Finance. In F. Harrison (Ed.), The Losses of Nations: Deadweight Politics versus Public Rent Dividends (175-206). London: Othila Press.

Telecommuting Essay Example | Topics and Well Written Essays - 1250 words

Telecommuting - Essay Example There are various benefits that have been attained by firms that have adopted this method as part of their human resources management strategy. While some have had success other firms have experienced a negative effect with their bid to try and adopt telecommuting policies. A recent incidence may have brought the issues that are raised by telecommuting to the fore and this was with the recently appointed chief executive (CEO) of Yahoo banning the telecommuting policy of the company. Discussions have been raised on whether this was a good move or not? What may have called for her action? How does this affect the future productivity of Yahoo as a company? There are a number of advantages that a company may stand to gain from adopting a telecommuting policy. The positives To begin with are the environmental advantages that are to be gained by this policy. The increase in the number of people who are telecommuting means that there are fewer people on the roads driving. This reduces the amount of emissions that are released into the atmosphere and that contribute to green house gases. The other advantage that is provided by telecommuting is that of a social nature and this is as concerns the family unit. Telecommuting is beneficial to parents especially mothers who are accorded the ability to juggle taking care of their young ones while still being able to attend to their office duties. This makes for a stronger family unit and also there is the provision of the needed amount of care given to the children. All this though point to the individual advantage of telecommuting. The idea though is to look at the whole picture from the perspective of the company and how beneficial or otherwise this will be to the company. Though it should be mentioned at the e arliest that there exists different schools of thought on whether telecommuting is beneficial to a company or not but the overall opinion infers to it being more of beneficial. Improving performance Various different studies have been conducted that have looked at the improvements that a firm may get from having a section of its workers telecommuting to work. Some of these studies have found that telecommuting helps boost the performance of the workers and this has been attributed to a number of factors. One of these factors is the amount of time that is saved by workers who do not have to commute to work every day. Each day there is an increasing number of hours that workers spend on the road on their way to and from work. These hours can be better spent working on their various tasks if they telecommute. This savings are also in the fact that a large percentage of the workers are now not forced to endure traffic jams that also consume a lot of the time which limits the workers pro ductivity. If this time is spent doing company related tasks and assignments they can help improve greatly on the output of the company (Johnson, 2001, 169). The other idea is in the fact that those who telecommute to work have been found to have an increased amount of productivity as compared to their colleagues who do not telecommute. One of these studies was done by Staples of which 93% of the surveyed employee agreed to the fact that telecommuting does a good job as far as improving productivity is concerned. This point was supported by over half of the decision makers in the company (Nina, 2013). This has been attributed to there being improved employee morale, lower employee absenteeism and reduced employee stress. All these factors worked to improve the performance o

Communication technology and Westernization Essay

Communication technology and Westernization - Essay Example Although the democratic value of the internet has been cherished, on the contrary, the cyber culture is breaking the boundaries of ethical parameters in many aspects. Initially, it affects the moral perception of the new generation as they are exposed to uncensored websites. They are likely to be influenced by various misanthropic ideologies and racism (Clichà © & Bonilla, 2004, pp.32-33). Education is another notable area that has been affected by internet. In fact, the positive effects of communication technology have opened new opportunities in the field of education and employment. On the other hand, the technology has been widely used for academic misconduct which will have adverse effects on our education system as a whole. Another argument against the technology is that it has a westernizing effect on other cultures. As stated in Forbes & Mahan, (Eds.) (2005, p.135), since the primary language of the internet is English, it would transmit the elements of Western values including emphasis on material goods, entertainment, sex and romance. The other side of the argument is that though internet has a cultural and social influence, it does not necessarily eliminate the values of indigenous cultures. As Nakamura L (2007) states, internet has the potential for challenging western influence; and moreover, it can turn to be an effective device for non-western users. The author points out the example of New Media Center Sarai New Delhi which has developed software for indigenous non-literates. However, the so called potentiality of the technology needs to be further utilized. Obviously, a cyber society that has deep root in Western culture has emerged globally. People participate in the cyberspace social networks and interact with others who have similar interests and tastes. They express their feelings and ideas (whether right or wrong) without the fear of legal restrictions. The effect is that the more

Review Questions for Business Management Essay Example for Free

Review Questions for Business Management Essay 1) What is resource overallocation? Resource leveling is the project management function of resolving project resource over-allocation. By definition over-allocation means that a resource has been assigned more work than can be accomplished in the available time as dictated by the resources calendar definition. In most scenarios, over-allocations can be remedied manually by extending tasks or moving them to accommodate the resources availability 2) What is resource leveling? When performing project planning activities, the manager will attempt to schedule certain tasks simultaneously. When more resources such as machines or people are needed than are available, or perhaps a specific person is needed in both tasks, the tasks will have to be rescheduled concurrently or even sequentially to manage the constraint. Project planning resource leveling is the process of resolving these conflicts. It can also be used to balance the workload of primary resources over the course of the project[s], usually at the expense of one of the traditional triple constraints (time, cost, scope). 3) Under what circumstances would you want to manually resolve conflicts? You can resolve resource conflicts or overallocations by using the resource-leveling feature in Microsoft Office Project. Leveling works by splitting tasks or by adding delay to tasks until the resources that are assigned to those tasks are no longer overloaded. Because of these changes to the tasks, leveling can delay the finish date of some tasks and consequently also the projects finish date. When it is leveling, Project does not change who is assigned to each task 4) What would be the caution of adding more resources to a task to resolve resource conflicts? As you assign resources to tasks, Project checks the resource’s calendar to make sure that the resource is working. However, Project doesn’t assess whether the resource is already obligated when you assign the resource to a new task; Project enables you to make the assignment. Be aware, though, that the additional assignment may lead to overallocating the resource. Overallocation occurs when you assign more work to a resource than the resource can accomplish in the time that you’ve allotted for the work to be completed. 5) What would be the caution of rescheduling a task to resolve a resource conflict? To get the best performance and results from resources (resources: The people, equipment, and material that are used to complete tasks in a project.), you must manage resource workloads to avoid overallocations (overallocation: The result of assigning more tasks to a resource than the resource can accomplish in the working time available.) and underallocations (underallocation: Assigning a resource to work fewer hours than the resource has available.). If you change resource assignments (assignment: A specific resource that is assigned to a particular task.), check the effects of your changes on the overall schedule (schedule: The timing and sequence of tasks within a project. A schedule consists mainly of tasks, task dependencies, durations, constraints, and time-oriented project information.) to make sure that the results meet your project goals.

European Politics :: Essays on Politics

Throughout Europe, a complex political structure of government has emerged from the once simple Monarchial rule. These new systems of Government, with respect to specific nation-states, have developed domestic policies that people depend on for daily life. Of these many dependencies is the health care system. The nation-states of Europe are entitled to bring forth and confront these issues, in order to ensure a sense of safety and well being into the lives of everyday citizens. The significance of the health care system is that it is an issue people are always trying to reform and build upon. Working alongside this idea, is the notion that other countries will develop intellectual health care systems from understanding those system already put into effect. This was the case with the German system of insured care, and the subsequent formation of the Hungarian health insurance system. In laying out the design of both systems, it is evident that the Hungarian health care system was bas ed upon the founding principles of the German health care system. Established by Otto von Bismarck in 1883, the German system has been continually extended to reflect the changing assortment of diseases and technological progress. Germany may be the only country in which most beneficiaries of its long-term care system and related expenditures are in community-based rather than institutional settings, according to the authors of the German study. (Moran 77) Germany's attempt to improve coverage for long-term care reached a fever pitch in the early 1990s, when West German policymakers sought to bring means-tested, state-administered long-term care services into its universal health insurance fold. In 1994 the country enacted a universal-coverage social insurance program for long-term care, called Soziale Pflegeversicherung, which was administered by "sickness funds," quasi-public and quasi-private insurers regulated by the national government. Under this program, premiums are uniform-a straight 1.7 percent of salary, split between employers and employees. (Knox 13) Benefits include extensive institutional and home care services. Informal caregivers receive up to four weeks of respite care each year, as well as a pension credit for providing high levels of unpaid services. In 1998 alone, some 550,000 people received pension contributions as caregivers. Germany's program has succeeded in increasing the availability of nursing home and home care services, as well as the number of home care providers, the study authors report. Program costs stayed well below original estimates and led to surpluses of nearly $5 billion.

Public Ruling

INLAND REVENUE BOARD MALAYSIA INCOME FROM LETTING OF REAL PROPERTY PUBLIC RULING NO. 4/2011 Translation from the original Bahasa Malaysia text DATE OF ISSUE: 10 MARCH 2011 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 11. 14.Introduction Related provisions Interpretation Letting of real property as a business source Letting of real property as a non-business source Commencement date of letting of property All real properties grouped as a single source Expense relating to income of letting of real property Rental income received in advance Capital allowance Industrial building allowance Replacement cost of furnishings Letting of part of building used in the business Effective Date Page 1 1 1 1-4 4-5 5-7 7 – 13 13 – 19 19 – 22 22 – 25 26 26 26 26DIRECTOR GENERAL'S PUBLIC RULING A Public Ruling as provided for under section 138A of the In come Tax Act 1967 is issued for the purpose of providing guidance for the public and officers of the Inland Revenue Board Malaysia. It sets out the interpretation of the Director General of Inland Revenue in respect of the particular tax law, and the policy and procedure that are to be applied. A Public Ruling may be withdrawn, either wholly or in part, by notice of withdrawal or by publication of a new ruling which is inconsistent with it.Director General of Inland Revenue, Inland Revenue Board Malaysia. INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 1. This Ruling explains: (a) (b) Letting of real property as a business source under paragraph 4(a) of the Income Tax Act 1967 (ITA); and Letting of real property as a non-business source under paragraph 4(d) of the ITA. 2. The provisions of the ITA related to this Ruling are paragraphs 4(a) and 4(d), subsections 33(1) and 39(1). The words used in this Ruling hav e the following meaning: 3. â€Å"Arm's length basis† refers to the circumstances, decisions or outcomes that would have been arrived at if unrelated or unconnected persons were to deal with each other wholly independently and out of reach of personal influence . â€Å"Real property† includes any land and any interest, option or other right in or over such land and includes any building on land. â€Å"Person† includes a company, a co-operative society, a partnership, a club, an association, a Hindu joint family, a trust, an estate under administration and an individual, but excludes a unit trust. Letting of real property† means granting the use of a real property or occupation of a real property under an agreement or a term of contract and includes the letting out of part of the real property that is owned or rented. â€Å"Management corporation† means a management corporation established under the Strata Titles Act 1985 (Act 318), the Land (Subsidi ary Title) Enactment 1972 (Sabah No. 9 of 1972) or the Strata Titles Ordinance 1995 (Laws of Sarawak, Chapter 18). Rent† or â€Å"rental income† or â€Å"income from letting† includes any amount received for the use or occupation of any real property or part thereof including premiums and other receipt in connection with the use or occupation of the real property. â€Å"Related company† means the situation where one company holds not less than 20% of the ordinary shares or preference shares of the other. 3. 3. 2 3. 3 3. 4 3. 5 3. 6 3. 7 4. Letting of real property as a business source 4. 1 Letting of real property is deemed as a business source and the income received from it is charged to tax under paragraph 4(a) of the ITA ifIssue: B Page 1 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA maintenance services or support services are provided in relation to the real property. 4. 2 Maintenance services or support services should be comprehensively and actively provided. 4. 2. 1 Maintenance services or support services comprehensively provided means services which include: (a) doing generally all things necessary (eg. leaning services or repairs) for the maintenance and management of the real property such as the structural elements of the building, stairways, fire escapes, entrances and exits, lobbies, corridors, lifts/escalators, compounds, drains, water tanks, sewers, pipes, wires, cables or other fixtures and fittings; and doing generally all things necessary for the maintenance and management of the exterior parts of the real property such as playing fields, recreational areas, driveways, car parks, open spaces, landscape areas, walls and fences, exterior lighting or other external fixtures and fittings; or b) If a person only provides security services or other facilities, that person is not providing maintenance services or support services comprehens ively. 4. 2. 2 Services actively provided means the person who owns or lets out the real property: (a) (b) provides himself; or hires another person or another firm to provide the maintenance services or support services as mentioned under paragraph 4. 2. 1 of this Ruling. Example 1: Suai Sdn Bhd owns three blocks of condominium consisting of 324 units and lets out those units to tenants.Suai Sdn Bhd provides maintenance services of lift, cleaning services, security services, centralized air conditioner and maintenance services of playing fields and car parks. The letting of the condominium units is treated as a business source of Suai Sdn Bhd since maintenance services and support services are comprehensively and actively provided by Suai Sdn Bhd. Issue: B Page 2 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Example 2: Wahida owns a 4-storey building consisting of 32 units that can be used as offices a nd shop lots.All the units are let out to several tenants. Wahida hires Ali Enterprise to provide maintenance services of the structure of the building, maintenance of lift and cleaning services of the building and area outside the building. The letting of the units in the building is treated as a business source of Wahida since maintenance services and support services are comprehensively and actively provided by Wahida. Example 3: Yes Property Sdn Bhd rents one block of office building consisting of 42 units from Zura Sdn Bhd. All the units are let out to a few tenants.Yes Property Sdn Bhd provides cleaning services of the building and area outside the building, centralized air conditioner, maintenance of car park and security services. The letting of the office units is treated as a business source of Yes Property Sdn Bhd since maintenance services and support services are comprehensively and actively provided by Yes Property Sdn Bhd. 4. 3 As long as maintenance services or suppo rt services are comprehensively and actively provided in relation to the real property which is let out, the letting is a business source under paragraph 4(a) of the ITA even though the letting is between related parties.However, if rental charged to the tenant is not at arm’s length basis, the Inland Revenue Board Malaysia would adjust the rental payment accordingly. For the purpose of this Ruling, â€Å"related parties† in relation to: (a) (b) (c) individuals, mean both individuals are related; companies, mean both companies are related companies; a company and an individual, mean one of the parties is in a position to influence or be influenced by the other party, or to control or be controlled by the other party. . 4 Special treatment for letting of a building to an approved Multimedia Super Corridor (MSC) status company Under the Income Tax (Industrial Building Allowance) (Approved Multimedia Super Corridor (MSC) Status Company) Rules 2006 [P. U. (A) 202/2006], ef fective from the year of assessment 2006, the letting of building in the Issue: B Page 3 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIACyberjaya Flagship Zone to an approved MSC status company is regarded as carrying on a business and the income received from it is charged to tax under paragraph 4(a) of the ITA. The building let out: has to be a new building that provides a world-class physical and information infrastructure as determined by the Multimedia Development Corporation Sdn Bhd; must not have been occupied by any company prior to the year of assessment 2006; and does not include building for the purpose of living accommodation. 5. Letting of real property as a non-business source 5. The letting of real property is treated as a non-business source and income received from it is charged to tax under paragraph 4(d) of the ITA if a person lets out the real property without providing maintenance ser vices or support services comprehensively and actively. Example 4: Unggas Property Sdn Bhd lets out one block of office building to a company. Unggas Property Sdn Bhd only provides security services. The letting of the office building is treated as non-business source since Unggas Property only provides security services.Unggas Property Sdn Bhd does not provide maintenance services or support services comprehensively. Example 5: Azran Sdn Bhd lets out a 5-storey building to Aloy Sdn Bhd without providing any maintenance services or support services. The letting of the building is a non-business source since there are no maintenance services or support services provided by Azran Sdn Bhd. Income received from the letting is charged to tax as rental income under paragraph 4(d) of the ITA. Example 6: Facts are the same as in example 3 but maintenance services and support services are provided by Zura Property Sdn Bhd.The letting of the office units is treated as a non-business source of Yes Property Sdn Bhd since maintenance services and support services are not provided by Yes Property Sdn Bhd but are provided by Zura Sdn Bhd. Issue: B Page 4 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 5. 2 The letting of real property is also treated as a non-business source if a person lets out the real property and maintenance services or support services are passively derived from the ownership of the real property.Income received from the letting of the real property is charged to tax as rental income under paragraph 4(d) of the ITA. Example 7: Azrie owns 2 units of apartment and lets out those units to 2 tenants. The tenants are entitled to use the swimming pool, tennis court and other facilities that are provided in the apartment. All the facilities are provided and maintained by the management corporation of the apartment. Azrie only pays maintenance fees to the management corporation of th e apartment. Services enjoyed by the tenants are merely an extension of Azrie’s right as proprietor of the apartment units and are not actively provided by Azrie.Therefore, the letting of the apartment units is a non-business source and the income received from it is charged to tax as rental income under paragraph 4(d) of the ITA. 6. Commencement date of letting of real property 6. 1 The date of commencement of letting of real property treated as a source of rental income under paragraph 4(d) of the ITA is on the date the real property is rented out for the first time. Example 8: Nora buys one unit of apartment on 1. 10. 2009. She renovates and advertises the letting of the apartment on 1. 1. 2010. The apartment is only let out on 1. . 2010. The letting of the apartment commences on 1. 7. 2010 i. e on the date it is rented out for the first time. 6. 2 The date of commencement of letting of real property treated as a business source under paragraph 4(a) of the ITA is on the da te the real property is made available for letting. A real property is made available for letting when the real property is ready to be occupied by tenants and steps to let out the real property have been taken such as advertising the real property for letting or appointing a real property agent to facilitate the letting.Example 9: Muhibbah Sdn Bhd purchases a 12-storey office building on 1. 1. 2010. The company advertises the letting of that building on 1. 4. 2010. The Company provides maintenance services of lift, cleaning services of the building and Issue: B Page 5 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA area outside the building, maintenance services of car park for that building and centralized air conditioner. The building is made available for letting on 1. 6. 2010 after renovation is completed. The building is only let out on 1. 8. 010. The company closes its account on 31 December every year. The letting of the building commences on 1. 6. 2010 i. e on the date the building is made available for letting. Example 10: Facts are the same as in example 9 but the building is only let out on 1. 1. 2011. The letting of the building commences on 1. 6. 2010 that is on the date the building is available for letting. Therefore expenses incurred in the production of rental income for the year of assessment 2010 are allowable and can be carried forward to the year of assessment 2011 (assuming that the company only has this rental business income).However advertisement expenses incurred on 1. 4. 2010 are not allowable since the expenses are incurred to obtain the first tenant. Example 11: Syazril Property Sdn Bhd owns a complex consisting of an office building in Block A and a shopping centre in Block B. The company provides comprehensively and actively maintenance services and support services in relation to the complex. The company advertises the letting of that complex on 1. 6 . 2010. The office building in Block A is made available for letting and is let out on the same date i. 1. 7. 2010. Whereas the shopping centre in Block B is made available for letting on 1. 1. 2011 but is only let out on 1. 2. 2011. The company closes its account on 31 December every year. The letting of the office building commences on 1. 7. 2010. Whereas the letting of the shopping complex commences on 1. 1. 2011 i. e on the date it is made available for letting. Example 12: Kengo Sdn Bhd purchases a 10-storey office building in Kuala Lumpur, a shopping complex in Johor Bahru and 5 units of shop house in Kota Bharu in the year 2010.Both buildings in Kuala Lumpur and Johor Bahru are let out and maintenance services and support services are comprehensively and actively provided in relation to those buildings. Whereas the shop houses are let out without maintenance services and support services. The date of advertisement, the date the real properties are made available for letting a nd the real properties are let out are as follows: Issue: B Page 6 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 Advertisement date 1. . 2010 1. 8. 2010 1. 9. 2010 Date available for letting 1. 9. 2010 1. 11. 2010 1. 11. 2010 Date of letting 1. 12. 2010 1. 1. 2011 1. 2. 2011 INLAND REVENUE BOARD MALAYSIA Real property Building in Kuala Lumpur Building in Johor Bahru Shop houses in Kota Bharu The commencement date of letting of the building is as follows: Real properties Rental business [paragraph 4(a)] Building in Kuala Lumpur Building in Johor Bahru Rental [paragraph 4(d)] Shop houses in Kota Bharu 7. All real properties grouped as a single source 7. Several real properties which are let out can be grouped as one source whether as a business source under paragraph 4(a) of the ITA or a nonbusiness source under paragraph 4(d) of the ITA. If a person lets out several real properties in a year of assessment and the letting of (a) (b) a ll real properties is a business source, all the real properties can be grouped as one business source under paragraph 4(a) of the ITA. all real properties is a non-business source, all the real properties can be grouped as one non-business source under paragraph 4(d) of the ITA. ome of the real properties is a business source and some is a nonbusiness source, income from both sources shall be assessed separately. The income from the business source and the nonbusiness source is assessed under paragraphs 4(a) and 4(d) of the ITA respectively. 1. 2. 2011 1. 9. 2010 1. 11. 2010 Date of commencement of letting (c) Issue: B Page 7 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Example 13: AJ Sdn Bhd owns a 4-storey building in Damansara and a 6-storey building in Bangsar.Both buildings are let out since 2008 and the letting of the buildings is treated as a business source under paragraph 4(a) of the ITA. The gross income, allowable expenses and capital allowances on the furniture in each building for the year of assessment 2010 are as follows: Real property Gross income (RM) 60,000 10,000 70,000 Allowable expenses (RM) 14,000 12,000 26,000 Capital allowances (furniture) (RM) 7,000 3,000 10,000 Building in Damansara Building in Bangsar Total The letting of both real properties is a business source.Therefore, both real properties can be grouped as one business source under paragraph 4(a) of the ITA. The statutory income of AJ Sdn Bhd from the business of letting of real property for the year of assessment 2010 is calculated as follows: (RM) Gross income from rental Less: Allowable expenses Adjusted income Less: Capital allowances (furniture) Statutory income from rental Example 14: Margaret owns several real properties which are let out since 2008 and the letting of the real properties is a non-business source under paragraph 4(d) of the ITA.The gross income and allowable expenses for ea ch real property for the year of assessment 2010 are as follows: 70,000 26,000 44,000 10,000 34,000 Issue: B Page 8 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 Gross income (RM) 12,000 9,000 24,000 1,500 46,500 Allowable expenses (RM) 3,000 11,000 8,000 1,800 23,800 INLAND REVENUE BOARD MALAYSIA Real property Terrace house Apartment Shop house Vacant land TotalStatutory income of Margaret from the letting of real property for the year of assessment 2010 is calculated as follows: (RM) Gross income from rental Less: Allowable expenses Statutory income from rental Example 15: Theodore Lim buys an office building and a business building in Taman Anggerik, Ampang in August 2009. The purchases of both buildings are financed by a bank loan. The office building is rented out commencing from 1. 1. 2010 whereas the business building is only rented out on 1. 2. 2011. Income from the letting of both buildings is assessed as a business source under paragraph 4(a) of the ITA.The gross income and interest expense on loan for each building for the years of assessment 2010 and 2011 are as follows: Gross income (RM) Year of assessment 2010 Office building Business building 120,000 Year of assessment 2011 120,000 165,000 Interest expense (RM) Year of assessment 2010 45,000 55,000 Year of assessment 2011 40,000 50,000 46,500 23,800 22,700 Real property Issue: B Page 9 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIAIn the year of assessment 2010, the business building has not commenced as a source because no income has been generated yet. As such, the business building and office building cannot be aggregated as one source. Interest expense in relation to the business building amounting to RM55,000 is not allowed a deduction against the gross income from the letting of office building. The statutory income from rent for the year of assessment 2010 is computed as follows: (RM) Gross income from rental [paragraph 4(a)] Less: Interest expense Statutory income from rental 120,000 45,000 75,000Note: If rental income from office building and business building is assessed as a non-business source under paragraph 4(d) of the ITA, the same tax treatment applies. In the year of assessment 2011, the business building can be grouped with the office building as one source as the business building constitutes a source once it has generated income. Although the business building is only rented out on 1. 2. 2011, the whole interest expense amounting to RM50,000 is allowed a deduction since the rental business source for the year of assessment 2011 exists from 1. . 2011. The statutory income from rent for the year of assessment 2011 is computed as follows: (RM) Gross income from rental (paragraph 4(a)) Less: Interest expense Statutory income from rental 285,000 90,000 195,000 Note: If rental income from office building and business building is a ssessed as a non-business source under paragraph 4(d) of the ITA, interest expenses in respect of the business building has to be adjusted according to the period the building is let out. Therefore interest expense in respect of the period from 1. 1. 011 to 31. 1. 2011 is not allowable. Example 16: Facts are the same as in example 13 with an additional information i. e AJ Sdn Bhd owns and lets out a residential house and one unit of apartment. The Issue: B Page 10 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA letting of the residential house and the apartment unit is a non-business source since maintenance services or support services are not provided. The company is not an investment holding company.The gross income, allowable expenses and capital allowances on the furniture in each building for the year of assessment 2010 are as follows: Real property – paragraph 4(a) source Gross income (RM) 6 0,000 10,000 70,000 Gross income (RM) 8,000 6,000 14,000 Allowable expenses (RM) 14,000 12,000 26,000 Allowable expenses (RM) 11,000 4,000 15,000 Capital allowances (furniture) (RM) 7,000 3,000 10,000 Capital allowances (RM) – Building in Damansara Building in Bangsar Total Real property – paragraph 4(d) source Residential house Apartment Total The letting of buildings in Damansara and Bangsar is a business source.Therefore, those buildings can be grouped as one business source under paragraph 4(a) of the ITA. Whereas the letting of residential house and apartment is a non-business source and can be grouped as one non-business source under paragraph 4(d) of the ITA. The total income of AJ Sdn Bhd for the year of assessment 2010 is computed as follows: (RM) (i) Statutory income from rental – paragraph 4(a) [70,000 – 26,000 – 10,000] (ii) Statutory income from rental – paragraph 4(d) [14,000 – 15,000] Aggregate income/Total income Issue : B Nil 34,000 Page 11 of 26 34,000INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA The adjusted loss from non-business source amounting to RM1,000 cannot be deducted against statutory income from business of letting and is not allowed to be carried forward to subsequent years of assessment. 7. 2 If a person has a business source of letting of real property under paragraph 4(a) of the ITA and a business source from other businesses in the same year of assessment, the business source of letting of real property has to be separated from the other business sources.Example 17: Syarikat MJ Sdn Bhd (SMSB) is carrying on a business of hardware wholesaler. SMSB owns a 4-storey building which is let out and provides maintenance services and support services comprehensively and actively. SMSB also owns a terrace house which is let out without providing maintenance services and support services. Income from letting of the 4storey building qualifies to be assessed as a business source (paragraph 4(a) of the ITA) whereas rental income from the terrace house is assessed as a non-business source (paragraph 4(d) of the ITA) for the year of assessment 2010.The gross income, allowable expenses and capital allowances on plant and machinery for each source of income of SMSB for the year of assessment 2010 are as follows: Source of income Adjusted income (RM) Adjusted loss (RM) Capital allowances (plant and machinery) (RM) Business of wholesale Letting of 4-storey building (paragraph 4(a) of the ITA) Letting of terrace house (paragraph 4(d) of the ITA) 100,000 – 10,000 15,000 5,000 – 3,000 – Issue: B Page 12 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIAThe total income of SMSB for the year of assessment 2010 is computed as follows: (RM) (RM) (i) Business of wholesale (paragraph 4(a) of the ITA) Adjusted income Less: Capital allowances (plant and machinery) Statutory income (ii) Letting of real property (paragraph 4(a) of the ITA) Adjusted loss Capital allowances (plant and machinery) Statutory income (iii) Letting of real property (paragraph 4(d) of the ITA) Adjusted loss Statutory income Aggregate income Less: Current year loss Total income (3,000) Nil 85,000 10,000 75,000 (10,000) 5,000 Nil 100,000 15,000 85,000Capital Allowances of RM5,000 in relation to the letting of real property under paragraph 4(a) of the ITA which cannot be absorbed in the year of assessment 2010 is carried forward to subsequent years of assessment. Adjusted loss from the letting of real property under paragraph 4(d) of the ITA amounting to RM3,000 cannot be deducted against the aggregate income and cannot be carried forward to subsequent years of assessment. 8. Expense relating to income of letting of real property 8. An expense wholly and exclusively incurred in the production of income under subsection 33(1) of the ITA and which does not fall under subsection 39(1) of the ITA is allowed as a deduction from income of business of letting of real property charged to tax under paragraph 4(a) of the ITA. Issue: B Page 13 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 8. 2Expense which is allowed a deduction from income of letting of real property charged to tax under paragraph 4(d) of the ITA is the direct expense that is wholly and exclusively incurred in the production of income under subsection 33(1) of the ITA. Examples of direct expenses which are deductible from gross income of letting of real property are as follows: (a) Assessment and quit rent Annual assessment paid to the local authority and quit rent paid to the land office. b) Interest on loan Interest paid on loan taken to finance the purchase of real property which is rented out. (c) Fire insurance premium Fire insurance premium paid in relation to fire insurance policy taken on the real property which is rented out. (d) Expense on rent collection Rent collection fee and legal expense incurred to enforce rent collection. (e) Expense on rent renewal Expense incurred to renew tenancy or to change tenant. (f) Expense on repair Expense on ordinary repair to maintain the real property in its existing state. 8. Initial expense Initial expense is not allowed a deduction from income of letting of real property assessed under paragraph 4(a) or paragraph 4(d) of the ITA since that expense is incurred to create a source of rental income and not incurred in the production of rental income. Examples of such expense are cost to obtain the first tenant such as advertising cost, legal cost to prepare rental agreement, stamp duty and commission for real property agent. Example 18: Sarah Property Sdn Bhd buys an office building on 1. 9. 2009 to be let out.The company incurs RM600 to advertise the letting of the building on 1. 1. 2010 and legal cost amounting to RM1,800 paid to Reganathan & Co on 12. 2. 2010 for preparing rental agreement. The building is let out commencing from Issue: B Page 14 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 1. 3. 2010 without providing maintenance services or support services. The letting of the office building is a non-business source and the rental income is taxable under paragraph 4(d) of the ITA.The advertising cost amounting to RM600 and the legal cost of RM1,800 are not allowed a deduction from income of letting of office building for the year of assessment 2010 as the expenses are incurred to obtain the first tenant. Example 19: Facts are the same as in example 18 except the building is made available for letting on 1. 2. 2010 and Sarah Property Sdn Bhd provides maintenance services of lift, security services, cleaning services and maintenance of centralized air conditioner.The letting of the office bui lding is a business source and the rental income is taxable under paragraph 4(a) of the ITA. The advertising cost amounting to RM600 and the legal cost of RM1,800 are not allowed a deduction from income of letting of office building for the year of assessment 2010 as the expenses are incurred to obtain the first tenant. 8. 4 Expenses during a period the real property is not rented out 8. 4. 1 Expenses incurred in relation to a real property during a period it is not rented out are not allowable in calculating the adjusted income from the letting of the real property.However, if the period the real property is not rented out occurs after it has been let out and it is clear that it is ready to be let out, then expenses during that period are allowable subject to subsections 33(1) and 39(1) of the ITA. Example 20: Farhan lets out a double-storey terrace house on 1. 1. 2010 for RM1,000 a month. On 1. 9. 2010 the tenant moves out and the house is let out to another tenant on 1. 12. 2010 for the same amount of rental. Assessment for a year is RM500 while quit rent is RM50 a year.The letting of the house is a non-business source and the rental income is taxable under paragraph 4(d) of the ITA. The adjusted income from rent for the year of assessment 2010 is computed as follows: (RM) Rental income (gross) Period of 1. 1. 2010 – 31. 8. 2010 (8 x RM1,000) Period of 1. 12. 2010 – 31. 12. 2010 8,000 1,000 9,000 (RM) Issue: B Page 15 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Less: Assessment Quit rent Adjusted income from rent 00 50 550 8,450 As a concession, assessment and quit rent expenses are allowable in full even though the house is not rented out for the period of 1. 9. 2010 to 30. 11. 2010. 8. 4. 2 If the letting ceases temporarily due to the following circumstances: (a) (b) (c) (d) repair or renovation of the building; absence of tenants for a period of 2 years after termination of tenancy; legal injuction or other official sanction; or other circumstances beyond the control of the person who lets out the real property; xpenses for the period the real property is not let out are allowable provided that the real property is maintained in good condition and is ready to be let out. Example 21: Sinar Ria Sdn Bhd owns a 4-storey building which is let out to Deena Holding Bhd since 2008. The letting of the real property is treated as a business source. Sinar Ria Sdn Bhd closes its account on 31 December every year. On 31. 12. 2010, the letting of the building ends. The company makes an effort to obtain a new tenant but only manages to let out the building to another company on 1. 4. 013 (absence of tenants for a period of 27 months). Expenses during the absence of tenants deductible. Therefore the expenses for 31. 12. 2012 are allowable. However the 1. 1. 2013 to 31. 3. 2013 are not allowed a exceeds the specified period of 2 years. for a period of 2 years are the period of 1. 1. 2011 to expenses for the period of deduction since that period Issue: B Page 16 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Example 22: Syarafina owns 2 houses which are let out since 2009.The rental income is assessed as a non-business source under paragraph 4(d) of the ITA. The gross income and allowable expenses for each real property for the years of assessment 2010 and 2011 are as follows: Gross income (RM) Assessment , quit rent and interest expense (RM) Year of assessment 2010 3,550 2,500 Year of assessment 2011 3,550 2,500 Real property Year of assessment 2010 House I House II 1 Year of assessment 2011 12,000 -1 12,000 9,600 House II was not rented out as the local authorities had given an instruction to vacate the house from 1. 1. 2011 to 31. 12. 011 so that the hill slopes could be monitored after a landslide had occurred at a nearby area. The house was rented out again on 1. 1. 2012. The statutory income from rent for the year of assessment 2010 is computed as follows: (RM) Rental income (paragraph 4(d)) Less: Allowable expenses Statutory income from rental 21,600 6,050 15,550 The statutory income from rent for the year of assessment 2011 is computed as follows: (RM) Rental income (paragraph 4(d)) Less: Allowable expenses Statutory income from rental Issue: B 12,000 6,050 5,950 Page 17 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. /2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 8. 5 Expenses before real property is let out Expenses in respect of a period before the real property is let out is not deductible and have to be adjusted proportionately. Example 23: Michael lets out a shop house commencing from 1. 5. 2010 for RM2,500 a month. He pays annual assessment amounting to RM1,200, annual quit rent amounting to RM120 and fire insurance premium of RM600 for year 2010. The letting of the shop house is a non -business source and the rental income is taxable under paragraph 4(d) of the ITA.The adjusted income from rent for the year of assessment 2010 is computed as follows: (RM) Rental income (gross) Period of 1. 5. 2010 – 31. 12. 2010 (8 x RM2,500) Less: Expenses for period of 1. 5. 2010 – 31. 12. 2010 Assessment (8/12 x RM1,200) Quit rent (8/12 x RM120) Fire insurance premium (8/12 x RM600) Adjusted income from rent 8. 6 Restriction on interest expense If a person takes a loan for business purposes and to finance the purchase of real property that is let out, interest expense allowable against the business source has to be restricted under subsection 33(2) of the ITA.Interest expense on loan to finance the purchase of real property that is let out is deductible from rental income. Example 24: Azalea Property Sdn Bhd, a property development company closes its account on 31 December every year. On 9. 6. 2009 the company takes a loan of RM2 million from a bank for business p urposes and to finance the purchase of a bungalow costing RM450,000. The company claims an interest expense of RM120,000 in the profit and loss account for the year assessment 800 80 400 1,280 18,720 20,000 Issue: B Page 18 of 26INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 2010. The bungalow is let out commencing from 1. 1. 2010 and income from letting of the bungalow is taxable under paragraph 4(d) of the ITA. Interest restriction is computed as follow: RM450,000 ——————- x RM 120,000 RM2,000,000 = RM27,000 The amount of RM27,000 is added back in arriving at the adjusted income from business of the company. However the company can claim interest expense of RM27,000 against income from the letting of the bungalow.Note: Since the cost of the bungalow does not exceed RM500,000, interest restriction under subsection 33(2) of the ITA is calculated based on the end-of-year balance in the balance sheets. 9. Rental income received in advance 9. 1 9. 2 Rental received in advance is treated as gross income for the basis period in which it is received. Where rental income received in advance is assessed in the basis period in which it is received, any expense incurred in relation to that rental income after that basis period is allowable in the basis period in which the income is assessed.Therefore amendment has to be done to the assessment for the year of assessment concerned. Example 25: Kelvin Ong lets out a double-storey terrace house for the period of 1. 1. 2010 to 31. 12. 2012. Rental for the three years amounting to RM36,000 is received in the year 2010. Expenses incurred on that house are as follows: Year ended Income/expenses 31. 12. 2010 (RM) Rental income Expenses 36,000 4,000 31. 12. 2011 (RM) 5,000 31. 12. 2012 (RM) 3,000 Issue: B Page 19 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND R EVENUE BOARD MALAYSIAThe adjusted income from rent for the year of assessment 2010 is computed as follows: Year of Assessment 2010 (RM) Rental income Less: Expenses Adjusted income Less: Expenses for a period ending 31. 12. 2011 Amended adjusted income Less: Expenses for a period ending 31. 12. 2012 Amended adjusted income 36,000 4,000 32,000 5,000 27,000 3,000 24,000 Expenses incurred in 2011 and 2012 are allowable against the rental income which is assessed in the year of assessment 2010. Therefore the assessment for the year of assessment 2010 has to be amended when the expenses are incurred in 2011 and 2012. . 3 In the case where there is more than one real property and rental income from one or several real properties is received in advance, expenses related to that source is deductible from other rental income in the basis period in which the expenses are incurred. This treatment is only applicable to rental income from real properties which are assessed as one source. Example 26: Fortune Sdn Bhd lets out 2 buildings commencing from 1. 1. 2010. The company receives rental for 3 years amounting to RM300,000 in 2010 in relation to the first building.The second building is let out for RM10,000 a month. The letting of both buildings is treated as a rental source under paragraph 4(d) of the ITA. Income received and the allowable expenses for the building are as follows: Issue: B Page 20 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Year ended First building Income (RM) Expenses (RM) 20,000 15,000 18,000 Second building Income (RM) 120,000 120,000 120,000 Expenses (RM) 30,000 30,000 30,000 31. 12. 2010 31. 12. 011 31. 12. 2012 300,000 – The adjusted income from rental for the years of assessment 2010 to 2012 is computed as follows: Year of assessment 2010 (RM) Rental income Less: Expenses Adjusted Income 420,000 50,000 370,000 2011 (RM) 120,000 45,000 75,000 2012 (RM) 120,0 00 48,000 72,000 Example 27: Facts are the same as in example 26 but the letting of the first building is treated as a business source under paragraph 4(a) of the ITA whereas the letting of the second building is treated as non-business source under paragraph 4(d) of the ITA.The adjusted income from rental for the years of assessment 2010 to 2012 is computed as follows: Issue: B Page 21 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA Rental source under paragraph 4(a) of the ITA Year of assessment 2010 (RM) Rental income Less: Expenses Adjusted income Less: Expenses for a period ending 31. 12. 2011 Amended adjusted income Less: Expenses for a period ending 31. 12. 2012 Amended adjusted income 300,000 20,000 280,000 15,000 265,000 18,000 247,000Expenses incurred in the years of assessment 2011 and 2012 are allowed a deduction from rental income which is assessed in the year of assessment 2010. Therefore th e assessment for the year of assessment 2010 has to be amended when the expenses are incurred in 2011 and 2012. Rental source under paragraph 4(d) of the ITA Year of assessment 2010 (RM) Rental income Less: Expenses Adjusted income 120,000 30,000 90,000 2011 (RM) 120,000 30,000 90,000 2012 (RM) 120,000 30,000 90,000 10. Capital allowances 10. If the letting of real property is treated as a business source, capital allowances can be claimed on capital expenditure incurred on plant and machinery. The provisions in Schedule 3 of the ITA relating to capital allowances shall apply to the business of letting of real property. Issue: B Page 22 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 10. 2 If the letting of real property is treated as a business source and the letting of real property ceases temporarily due to the circumstances mentioned in paragraph 8. . 2 of this Ruling, capital allowances can still be claimed in respect of the period the real property is not let out provided the real property is maintained in good condition and is made available for letting. Example 28: Saravanan Sdn Bhd let out a shop lots building since 2008. The letting is treated as business source. On 1. 4. 2010 the building is repaired and cannot be occupied until 31. 5. 2010. The building is only let out again on 1. 6. 2010. Capital allowances claimed for the year of assessment 2010 is RM30,000. Even though the letting of shop lot building ceases from 1. . 2010 to 31. 5. 2010, the whole amount of capital allowances of RM30,000 can be claimed in the year of assessment 2010 since the letting ceases temporarily due to the repair of the building. Example 29: Harris Property Sdn Bhd owns a 5-storey building which is let out to Fetty Holding Bhd since 2007. The letting of the real property is treated as business source. Harris Property Sdn Bhd closes its account on 31 December every year. On 1. 3. 2010, the tena ncy of the building ceases and Fetty Holding Bhd does not renew the tenancy. The building is left vacant until 31. 2. 2011 despite the efforts of the company to find a new tenant (including advertising the letting in several newspapers). Harris Property Sdn Bhd only manages to let out the building to another company on 1. 1. 2012 (absence of tenants for a period of 22 months). Capital allowances have been claimed since 2007. Even though the letting of building ceases from 1. 3. 2010 to 31. 12. 2011, capital allowances can be claimed in the years of assessment 2010 and 2011 since the letting ceases temporarily due to the absence of tenants for a period of less than 2 years.Example 30: Facts are the same as in example 29 except that the building is not let out until 31. 3. 2012. Harris Property Sdn Bhd only manages to let out the building to another company on 1. 4. 2012 (absence of tenants for a period of 25 months). Harris Property Sdn Bhd is eligible to claim capital allowances for the years of assessment 2010 and 2011. Harris Property Sdn Bhd is also eligible to claim capital allowance for the year of assessment 2012 if the letting of the building is treated as a business source for that year of assessment.Issue: B Page 23 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 10. 3 If there is a change in tax treatment of the letting of a real property from a business source under paragraph 4(a) of the ITA to a non-business source under paragraph 4(d) of the ITA in the basis period for a year of assessment, the person who lets out the real property has two sources of income from the same real property in that basis period, i. a business source under paragraph 4(a) of the ITA and a non-business source under paragraph 4(d) of the ITA. If as a result of the change: 10. 3. 1 a company becomes an investment holding company (IHC), the rental income (business source) would be assessed as incom e under paragraph 4(d) of the ITA. Therefore, the company is not entitled to claim for capital allowances on plant and machinery since they are not used for the purpose of a business at the end of the basis period for that year of assessment. 0. 3. 2 a company does not become an IHC, the company still derives rental income under paragraph 4(a) and 4(d) of the ITA in respect of the real property. Even though the company is not an IHC, the company would not be entitled to claim for capital allowances on plant and machinery since they are not used for the purpose of a business at the end of the basis period for that year of assessment. Note: The determination of whether a company is an IHC or not is explained in the Public Ruling No. /2011 (Investment Holding Company). 10. 4 If a company has a business source and a rental source (not necessary to determine whether an IHC or not since its main activity is not the holding of investments) and there is a change in tax treatment of the lett ing of a real property from a business source under paragraph 4(a) of the ITA to a nonbusiness source under paragraph 4(d) of the ITA in the basis period for a year of assessment, the company still derives rental income under paragraph 4(a) and 4(d) of the ITA.The company would not be entitled to claim for capital allowances on plant and machinery since they are not used for the purpose of a business at the end of the basis period for that year of assessment. Note: In the case where capital allowances cannot be claimed, the residual expenditure of the plant and machinery will be reduced by notional allowances for that year of assessment and subsequent years of assessment. Example 31: Menara Sdn Bhd owns an office building consisting of 20 units and lets out all the units fully furnished since 2006.The letting is treated as a business source since maintenance services and support services are comprehensively and actively provided by Menara Sdn Bhd. Capital allowance have been claimed on the furnitures in the office building. Issue: B Page 24 of 26 INCOME FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA However from June 2010, Menara Sdn Bhd did not provide maintenance services and support services.Menara Sdn Bhd closes its account on 31 December every year. Menara Sdn Bhd is not entitled to claim capital allowances on the furnitures in the office building for the year of assessment 2010 since the furnitures are not used for the purpose of a business at the end of the basis period for that year of assessment. Notional allowances will be deducted to arrive at the residual expenditure of the furnitures for the year of assessment 2010 and subsequent years of assessment. 0. 5 If more than one real property is let out and there is a change in tax treatment of any of the real properties from a business source under paragraph 4(a) of the ITA to a non-business source under paragraph 4(d) of the ITA in the basis period for a year of assessment, capital allowances can be claimed on plant and machinery for the real property which remains as a business source under paragraph 4(a) of the ITA.If there is a change in tax treatment of the letting of a real property from a non-business source under paragraph 4(d) of the ITA to a business source under paragraph 4(a) of the ITA in the basis period for a year of assessment, the person who lets out the real property has two sources of income from the same real property in that basis period, i. e a non-business source under paragraph 4(d) of the ITA and a business source under paragraph 4(a) of the ITA.Capital allowances can be claimed on plant and machinery in the real property since they are used for the purpose of a business at the end of the basis period for that year of assessment. For the purpose of computing capital allowances, the qualifying expenditure for the plant and machinery is the market value on the first day they are used in the b usiness. Example 32: Teguh Sdn Bhd closes its account on 31 December every year and its main activity is the holding of investments. The company owns and lets out a fullyfurnished 10-storey office building.The letting is treated as a rental source under paragraph 4(d) of the ITA. From 1. 3. 2010 the company provides maintenance services and support services comprehensively and actively. The company is not an IHC in the year of assessment 2010 since the income from holding of investment is less than 80% of its gross income. Teguh Sdn Bhd is entitled to claim capital allowances on the furnitures in the office building for the year of assessment 2010 since they are used for the purpose of a business at the end of the basis period for that year of assessment.For the purpose of computing capital allowances for the year of assessment 2010, the qualifying expenditure for the furnitures is the market value on 1. 3. 2010. No initial allowance will be given. Issue: B Page 25 of 26 10. 6 INCOM E FROM LETTING OF REAL PROPERTY Public Ruling No. 4/2011 Date of Issue: 10 March 2011 INLAND REVENUE BOARD MALAYSIA 11. Industrial building allowance 11. 1 If a person owns a building lets out the building and the building is in used as an industrial building, industrial building allowance can be claimed by the owner of the building even though the letting is a non-business source.If the letting of real property is given a special treatment as explained in paragraph 4. 4 of this Ruling, the owner of the building is eligible to claim industrial building allowances on the qualifying building expenditure incurred. 11. 2 12. Replacement cost of furnishings If the letting of a furnished real property is treated as non-business source, cost of replacing furnishings such as furniture and air conditioner can be claimed as a deduction from gross income from that letting. 13.Letting of part of building used in the business If a building, whether owned or rented, is used for business purposes and part of the building is let out, the rent arising from the letting is treated as part of income from the existing business source. 14. Effective date This Ruling is effective for the year of assessment 2011 and subsequent years of assessment. This Ruling supersedes Public Ruling No. 1/2004 issued on 30 June 2004. Director General of Inland Revenue, Inland Revenue Board Malaysia. Issue: B Page 26 of 26