1)Rara Ismail is a Malaysian citizen and tax resident and divorced for a year with no kids. On 2 January 2018, she accepted a job offer in Kometik Dr Diva. Details of the income, benefits and expenses incurred by Rara in 2018 are shown below:

a).A salary for the year of RM160,000.

b).A contribution of RM23,400 paid by her employer towards her employees provident fund.

c).During the year, Rara purchased company-own products such as toiletries and soaps worth RM5,000.

d).Traditional Chinese medical treatment at Hospital Ee Lam Wah, an approved hospital costing RM650, paid for by her employer.

e).Hotel accommodation provided by her employer for the month of January 2018 at a cost of RM200 per day for 30 days.

f).A personal computer worth RM3,000 for her personal use as a gift from her employer.

g). A reimbursement claimed from her employer of RM9,000 to cover the cost of part of the wages of a maid employed by Rara .

h). RM14,000 earned from her blog during the year. She blogs in her spare time.

i).Rara bought books costing RM5,010 from Playhotguys.com. She did not realise that 2 books worth RM500 are banned in Malaysia and have been confiscated by the customs. Rara has the original receipts for all these purchases.

j).A payment of RM2,000 for her UNIFI subscription.

k). Zakat contributions made of RM12,000.

l). She donated RM5,000 worth of can food to Penang Homeless Shelter, an approved charitable institution in Malaysia. Payments of RM7,000 towards a deferred annuity scheme, which was approved by the relevant authorities, as part of her retirement plan.

Required: Compute the income tax payable by Rara for the year of assessment 2018. [22 marks]

2). Compensation through the Voluntary Separation Scheme (VSS) is normally taxable, Describe instances whereby the VSS compensation can be exempted from income tax. [8 marks]