Soon Seng Berhad (SSB) has a beginning balance of deferred liability amount of RM 500,000 in its financial statement as of 31 December 2023. Income tax is at 25%. The tax expenses for the year (before adjustments) stood at RM 500,000. The following transactions took place during the year 2023:
1. On 1 January 2023, SSB bought a production machine for RM 600,000 and SSB expects to use it for five years. The capital allowance for the first year is 40%.
2. Development expenditure of RM 200,000 was capitalized in accordance with MFRS 138 but is deducted for tax purposes. Amortization of 20% per annum was charged for the year.
3. Penalty expenses of RM 50,000 were recognized for the year 2023 as unclaimable expenses.
4. SSB has recognized income receivable of RM 500,000, but none has been received.
5. For the year, SSB also provides a provision for a warranty of RM 100,000.
6. SSB provides a general provision for doubtful debts of 2% per annum. Trade receivables at the end of the year were RM 5 million.
7. Interest expenses of RM 600,000 have not been paid.
8. SSB bought financial assets for RM 150,000. At the end of the year, these financial assets’ value stood at RM 100,000. SSB classified these financial assets as Fair Value through Profit or Loss.
9. During the year SSB’s plant was revalued, the surplus was RM 1 million. At the end of the year, the carrying amount of the plant was RM 5 million, and tax-based was RM 4 million. Gains on revaluation are taxable on sale at 5%. SSB has no intention to dispose of the plant within the next 5 years.

Required: Differentiate between Temporary and Permanent Differences. Illustrate your answers through examples.