Atok worked as a waiter in Hotel Happiness. He was very pleasant, kind and helpful to customers in recommending dishes to customers. Thus, he usually receives tips and souvenirs from them.

In the year 2019, Atok received tips and souvenirs amounting to RM8,000. Atok later got married on 8.8.2019 and the employer gave him a cash present of RM20,000.

Explain with reasons, the tax treatment of the receipts of tips and cash present of RM20,000. (4 marks)

(Note: You are encouraged to quote relevant sections and case laws where appropriate.)

(b) Briefly explain THREE (3) characteristics of perquisites. (3 marks)

(c) Guan Si Sdn. Bhd., which closes its accounts to 31 August decided to change its year-end to 31 March in 2009. The accounts are prepared as follows:

Year ended 31 August 2008

1 September 2008 to 31 March 2009

Year ended 31 March 2010

Required:

Determine the basis periods for the years of assessment 2008 to 2010 for Guan Si Sdn. Bhd. (3 marks)

(Total: 10 marks)