Abdullah, a Malaysian tax resident, is married to Siti. Abdullah is employed by Kejora Sdn Bhd as an operations manager based in Malaysia. Details of his employment income and benefit provided by the company for the year 2019 are as follows: 

i. A salary of RM144,000. 

ii. Leave pay RM 2,300

iii. Bonus for 2 months

iv. New car with fuel. Value of the car is RM 202, 000 together with driver.

v. Fully furnish bungalow.

vi. Gardener monthly salary RM 800

vii. Medical treatment for his children and wife RM1,500

viii. Two leave passages to Langkawi Malaysia  RM7,500

ix. One leave passages to Kuching Sarawak, MalaysiaRM5,000

x. One leave passages to Perak, Malaysia RM 4,000

xi. Employees’ provident fund (EPF) contributions is 11%.

Siti is physically disabled after suffering a stroke. Abdullah and Siti has a 20-year-old son, Zaki. Zaki is pursuing a full-time degree at a local Malaysian university and received a full scholarship from a multi-national company in Malaysia for his university fees. Second child, Ziana is only 3 years old. Sitihas no income. 

Details of Abdullah’s other expenditure for the year 2019 are as follows: 

i. Books purchased for his son of RM1,300. 

ii. Fees to Kindergarten RM 2,000

iii. Sport Equipment for his own RM 760

iv. Medical insurances for his own RM 3000

v. Basic supporting equipment for his wife RM 2,000

vi. Parental care RM 900

vii. Socso deduction 400

viii. Zakat RM 7,000

 

Required: 

a) Compute the income tax payable by Abdullah for the year of assessment 2019. 

b) Income derived from the exercise of an employment is chargeable t tax under Section 4(b) of ITA 1967. 

c) Identify the important of personal tax relief.

d) List THREE (3) Benefit in kind under section 13(1)(b) ITA 1967 and explain the treatment for every Benefit in kind. 

e) Mr.Haikal, an employee from Kenanga Holding was provided with a Mercedes Benz costing RM 299,000. Fuel was also provided by the company. 

i. Compute his section 13 (1) (b)  benefit if he uses the car for the whole year

ii. Compute his section 13 (1) (b)  benefit if he uses the car for 10 months

iii. Compute his section 13 (1) (b)  benefit if the company did not provided fuel for the car

iv. Compute his section 13 (1) (b)  benefit if the car is more than 7 years old

f) Mr. James, is a British citizen working with a multinational company based on Shah Alam. He entitled for residential status. The following information is regarding his leave passage in year 2019. Identify Mr. James Benefit in Kind and chargeable income from this leave passage. 

January 2019	Leave passage to Melaka	RM 2,000
May 2019	Leave passage to UK	RM 10,000
July 2019	Leave passage to Sabah	RM 4,000
July 2019	Leave passage to Kedah	RM 2,500
December 2019	Leave passage to Sarawak	RM 5,000

g) Mr. Shuhaimi served as an accountant in Dido Bhd since 1.1.2010. on 1.1.2019 he was transferred to Didi Bhd, where Dido Bhd holds 70% shares. Dido Bhd exercised control and major decisions on Didi Bhd. Mr. Shuhaimi retired on 1.1.2020 and received gratuity of RM 90,000 from Didi Bhd, Ali is aged 55 on 1.1.2010. State the gratuity status for Mr. Shuhaimi and explain the reason.