A, who was a director and secretary of R’s co-operative society, bought land at the price of RM900,000 on behalf of R. A knew that the vendor had earlier paid RM450,000 for it but did not inform R accordingly. It turned out that A had received RM150,000 as a benefit from the vendor. Advise R.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter12: Nonrecognition Transactions
Section: Chapter Questions
Problem 24P
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A, who was a director and secretary of R’s co-operative society, bought land at the price of RM900,000 on behalf of R. A knew that the vendor had earlier paid RM450,000 for it but did not inform R accordingly. It turned out that A had received RM150,000 as a benefit from the vendor. Advise R. 

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