5. Capital and industrial building allowances Initial allowance rate (%) 20 20 Annual allowance rate (%) 20 14 Type of assets Motor vehicles and heavy machinery General plant and machinery Office equipment, furniture and fittings, others Computers, information technology equipment and computer software, accelerated capital allowance Industrial building 20 10 20 40 10 3 2. Reliefs for the Year of Assessment (YA) 2020. RM 9,000 6,000 4,000 3,500 5,000 1.500 per parent 6,000 6,000 2,000 6,000 Personal relief Disabled taxpayer (additional relief) Spouse relief Disabled spouse relief (additional relief) Medical expenses for parents Parental care Medical expenses for serious diseases (including fertility treatment and medical examination expenses of up to RM500) Basic supporting equipment for disabled taxpayer, spouse, children, or parents Child relief (below 18 years old) - Each - Disabled Child relief (over 18 years old and studying in higher learning institutions) - Each - Disabled Net amount deposited into SSPN for child Premium on deferred annuity contract and private retirement scheme Employee's contribution to Employees' Provident Fund (EPF) or approved provident fund Premium on life insurance - Public servants under pension scheme - Others Premium on medical education insurance Employee's contribution to SOCSO scheme Education fees paid by taxpayer for his own self-improvement Lifestyle expenses Lifestyle expense (additional) Breastfeeding equipment Fees paid to childcare centre and kindergarten Payment for accommodation at registered premises and entrance fee to tourist attractions. 3. Rebates for the Year of Assessment (YA) 2020. 8,000 14,000 8,000 3,000 4,000 7,000 3,000 3,000 250 7,000 2,500 2,500 1,000 3,000 1,000 RM Chargeable income not exceeding RM35,000 - Individual - Additional relief when spouse relief is claimed 400 400 4. Values of benefits-in-kind. a. Car and fuel benefits Cost of car (when new) (RM) Fuel per annum (RM) Up to 50,000 50,001 - 75,000 75,001 - 100,000 100,001 - 150,000 150,001 - 200,000 200,001 - 250.000 250,001 - 350,000 350,001 - 500,000 500,001 and above Prescribed annual value of private usage of car (RM) 1,200 2,400 3,600 5,000 7,000 9,000 15,000 21,250 25,000 600 900 1.200 1,500 1,800 2,100 2,400 2,700 3,000 The value of car benefit equal to half of the above prescribed annual value is taken if the car provided is more than five years old, but the value of the fuel provided remains unchanged. Where a driver is provided by the employer, the value of the benefit per month is fixed at RM600. b. Household furnishing, equipment, and appliances Type of benefits Annual value of benefit (RM) 840 1,680 a. Semi-furnished with furniture in the lounge, dining room, or bedrooms. b. Semi-furnished with furniture as in (a) above and one or more of the following: air-conditioners, curtains and carpets. c. Fully-furnished with furniture as in (a) and (b) above and one or more of the following: kitchen equipment, crockery, utensils, and appliances. 3,360 c. Provision of the following benefits by employer Gardeners Domestic servants Guard RM3,600 per annum RM4,800 per annum RM4,800 per annum 5. Capital and industrial building allowances Initial allowance rate (%) 20 20 Annual allowance rate (%) 20 14 Type of assets Motor vehicles and heavy machinery General plant and machinery Office equipment, furniture and fittings, others Computers, information technology equipment and computer software, accelerated capital allowance Industrial building 20 10 20 40 10 3 QUESTION 1 Adelaide and Sydney are partners of AS Media Consultants, which has been providing public relation management services for the past ten years. After five years in the business, Adelaide and Sydney had revised their original partnership agreement to as follows. The revised agreement took effect from 1 January 2016. Each partner is entitled to annual salaries of RM210,000. Each partner is to be paid an interest of 5.5% per annum for their respective capital contributions of RM200,000. Any profit or loss incurred during the financial year will be split between them at the ratio of 1:1. The tax records of AS Media Consultants for the year ended 31 December 2020 showed that the partnership had recorded a provisional adjusted income of RM120,000. It was also eligible for RM9,010 in capital allowances. Meanwhile, the business accounting records showed that Adelaide and Sydney had used RM9,000 and RM7,000, respectively, of the partnerships fund for private purposes. The partnership had also donated RM1,090 in cash to the State Government's COVID-19 Disaster Fund on 19 April 2020. Besides AS Media Consultants, Adelaide and Sydney are both involved in other ventures of their own. At the end of year 2020, Adelaide had earned an adjusted income of RM14,500 from her own trading business. This trading business also recorded a loss of RM4,250 from the Year of Assessment (YA) 2019, which remained unutilised as at 31 December 2020. Meanwhile, Sydney had earned a gross rental income of RM120,000 from his condominium in Puchong for the year 2020. During the year, Sydney had spent RM13,818 to repair the leaking washroom floor of the condominium. Upon the advice of the contractor, Sydney had used higher-quality epoxy flooring in replacement of the original tiles for the washroom. Required: i Compute the divisible income of the partnership for YA2020. (5 marks) ii. Calculate the total income of the partners for YA2020. (15 marks) 5. Capital and industrial building allowances Initial allowance rate (%) 20 20 Annual allowance rate (%) 20 14 Type of assets Motor vehicles and heavy machinery General plant and machinery Office equipment, furniture and fittings, others Computers, information technology equipment and computer software, accelerated capital allowance Industrial building 20 10 20 40 10 3 2. Reliefs for the Year of Assessment (YA) 2020. RM 9,000 6,000 4,000 3,500 5,000 1.500 per parent 6,000 6,000 2,000 6,000 Personal relief Disabled taxpayer (additional relief) Spouse relief Disabled spouse relief (additional relief) Medical expenses for parents Parental care Medical expenses for serious diseases (including fertility treatment and medical examination expenses of up to RM500) Basic supporting equipment for disabled taxpayer, spouse, children, or parents Child relief (below 18 years old) - Each - Disabled Child relief (over 18 years old and studying in higher learning institutions) - Each - Disabled Net amount deposited into SSPN for child Premium on deferred annuity contract and private retirement scheme Employee's contribution to Employees' Provident Fund (EPF) or approved provident fund Premium on life insurance - Public servants under pension scheme - Others Premium on medical education insurance Employee's contribution to SOCSO scheme Education fees paid by taxpayer for his own self-improvement Lifestyle expenses Lifestyle expense (additional) Breastfeeding equipment Fees paid to childcare centre and kindergarten Payment for accommodation at registered premises and entrance fee to tourist attractions. 3. Rebates for the Year of Assessment (YA) 2020. 8,000 14,000 8,000 3,000 4,000 7,000 3,000 3,000 250 7,000 2,500 2,500 1,000 3,000 1,000 RM Chargeable income not exceeding RM35,000 - Individual - Additional relief when spouse relief is claimed 400 400 4. Values of benefits-in-kind. a. Car and fuel benefits Cost of car (when new) (RM) Fuel per annum (RM) Up to 50,000 50,001 - 75,000 75,001 - 100,000 100,001 - 150,000 150,001 - 200,000 200,001 - 250.000 250,001 - 350,000 350,001 - 500,000 500,001 and above Prescribed annual value of private usage of car (RM) 1,200 2,400 3,600 5,000 7,000 9,000 15,000 21,250 25,000 600 900 1.200 1,500 1,800 2,100 2,400 2,700 3,000 The value of car benefit equal to half of the above prescribed annual value is taken if the car provided is more than five years old, but the value of the fuel provided remains unchanged. Where a driver is provided by the employer, the value of the benefit per month is fixed at RM600. b. Household furnishing, equipment, and appliances Type of benefits Annual value of benefit (RM) 840 1,680 a. Semi-furnished with furniture in the lounge, dining room, or bedrooms. b. Semi-furnished with furniture as in (a) above and one or more of the following: air-conditioners, curtains and carpets. c. Fully-furnished with furniture as in (a) and (b) above and one or more of the following: kitchen equipment, crockery, utensils, and appliances. 3,360 c. Provision of the following benefits by employer Gardeners Domestic servants Guard RM3,600 per annum RM4,800 per annum RM4,800 per annum 5. Capital and industrial building allowances Initial allowance rate (%) 20 20 Annual allowance rate (%) 20 14 Type of assets Motor vehicles and heavy machinery General plant and machinery Office equipment, furniture and fittings, others Computers, information technology equipment and computer software, accelerated capital allowance Industrial building 20 10 20 40 10 3 QUESTION 1 Adelaide and Sydney are partners of AS Media Consultants, which has been providing public relation management services for the past ten years. After five years in the business, Adelaide and Sydney had revised their original partnership agreement to as follows. The revised agreement took effect from 1 January 2016. Each partner is entitled to annual salaries of RM210,000. Each partner is to be paid an interest of 5.5% per annum for their respective capital contributions of RM200,000. Any profit or loss incurred during the financial year will be split between them at the ratio of 1:1. The tax records of AS Media Consultants for the year ended 31 December 2020 showed that the partnership had recorded a provisional adjusted income of RM120,000. It was also eligible for RM9,010 in capital allowances. Meanwhile, the business accounting records showed that Adelaide and Sydney had used RM9,000 and RM7,000, respectively, of the partnerships fund for private purposes. The partnership had also donated RM1,090 in cash to the State Government's COVID-19 Disaster Fund on 19 April 2020. Besides AS Media Consultants, Adelaide and Sydney are both involved in other ventures of their own. At the end of year 2020, Adelaide had earned an adjusted income of RM14,500 from her own trading business. This trading business also recorded a loss of RM4,250 from the Year of Assessment (YA) 2019, which remained unutilised as at 31 December 2020. Meanwhile, Sydney had earned a gross rental income of RM120,000 from his condominium in Puchong for the year 2020. During the year, Sydney had spent RM13,818 to repair the leaking washroom floor of the condominium. Upon the advice of the contractor, Sydney had used higher-quality epoxy flooring in replacement of the original tiles for the washroom. Required: i Compute the divisible income of the partnership for YA2020. (5 marks) ii. Calculate the total income of the partners for YA2020. (15 marks)