Case Study Kevin Edward, an Australias citizen, was employed as a technical consultant for IGM Sdn Bhd in the year 2015 IGM Sdn Bhd is a company located within Malaysia During his employment with IGM Sdn Bhd, Kevin was the consultant in charge of the Kedah Johor high speed rail development whereby he was in charge of the project from Kedah to Johor His employment with IGM Sdn Bhd ended on 15 2 2017 His period of stay in Malaysia was as follow Project Period of Stay Kedah to Kuala Lumpur 1 7 2015 28 10 2015 Kuala Lumpur to Johor 1 6 2016 15 2 2017, except from 29 12 2016 10 1 2017 whereby Kevin back to London to visit his brother Kevin back to Malaysia on 1 5 2018 and joined TWG Sdn Bhd as a technical consultant for a short project that lasted until 13 08 2018 During the year 2019, Kevin was contacted by TopFlow Sdn Bhd to help analyses and reviews the operation system workflow of the factory in Malaysia Kevin accepted the project and back to Malaysia on 1 3 2019 After the completion of the project, Kevin left Malaysia on 27 05 2019 Kevin returned to Malaysia again on 1 3 2020 and joined IBMG Bhd as the head technician Due to the work nature, Kevin was requested to review the consistency of the operation system workflow of the branch in Singapore from 11 4 2020 to 10 5 2020 Kevin rushed back to Australia on 1 7 2020 upon receiving news that his daughter was seriously ill due to a car accident and he returned to Malaysia on 1 9 2020 Kevin had been given one month pay leave during his stay in Australia After considering his daughters condition, Kevin had decided to resign and back to Australia on 13 1 2021 Kevin had operated two sole proprietor businesses, i e online seafood business and a sundry shop for years 2018 and 2019 respectively The statement of profit and loss account of both businesses for the year ended 31 December 2020 is as follow Business 1 Online seafood business RM Net loss after charging the following expenses (35,000) Petrol and toll charges 3,500 Fine from late filing of tax return 4,500 Loss on disposal of office equipment 2,000 Donation to school library approved by IRB 1,000 Staff salary and wages (included salary to Kevin of RM1,000 per month) 19,000 The company had disposed of one office equipment for RM 6,000 and its related residual expenditure is RM10,000 Unabsorbed business loss b f 3,750 Kevin had purchased one new unit of air conditioner on 18 11 2018 2,200 Business 2 Sundry Shop RM Adjusted income 25,000 Balancing charge 2,500 Balancing allowance 1,250 Capital allowance b f 4,000 Capital allowance for the year 6,500 Other information The salary of Kevins employment with IBMG Bhd is RM7,000 per month The company has paid him a bonus of one and a half months He also had received a single tier dividend income of RM22,500 during the year He also involved in translating books or literary work at the request of the Ministry of Education and earned a royalty income of RM35,000 for the year He had loaned out RM50,000 to his friends on 1st July 2020 and earned an interest income of 10 p a in the year 2020 He had rented out a condominium to his friend on 1st January 2020 at RM3,000 per month He also had incurred the following expenditure for the condominium for 2020 as follows RM Quite rent 300 Assessment 60 Loan interest expense 12,000 Repair of grill door 600 6 He had two children, the eldest son is 22 years old, studying a degree programme in an Australian university His youngest daughter is 20 years old, disabled and studying diploma programme at a private university Both childrens living costs are maintained by Kevin 7 He had incurred the following medical expenses for the year ended 31st December 2020 Medical expense incurred for his father is RM1,600 Medical expense incurred for his mother in law is RM1,000 Purchase treadmill for RM5,500 Purchase computer for RM3,500 SOCSO contribution is RM25 Required a) Assess Mr Kevins tax residence status from Year of Assessment 2015 to 2020, with reasons clearly stated and section quoted b) Based on the information above, compute the total income of Mr Kevin for the year of assessment 2020 (Note Round up the amount into the nearest dollar)

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Case Study: Kevin Edward, an Australias citizen, was employed as a technical consultant for IGM Sdn Bhd in the year 2015. IGM Sdn Bhd is

Case Study:

Kevin Edward, an Australias citizen, was employed as a technical consultant for IGM Sdn Bhd in the year 2015. IGM Sdn Bhd is a company located within Malaysia. During his employment with IGM Sdn Bhd, Kevin was the consultant in charge of the Kedah-Johor high-speed rail development whereby he was in charge of the project from Kedah to Johor. His employment with IGM Sdn Bhd ended on 15.2.2017. His period of stay in Malaysia was as follow:

Project

Period of Stay

Kedah to Kuala Lumpur

1.7.2015 28.10.2015

Kuala Lumpur to Johor

1.6.2016 15.2.2017, except from 29.12.2016

10.1.2017 whereby Kevin back to London to visit his brother.

Kevin back to Malaysia on 1.5.2018 and joined TWG Sdn Bhd as a technical consultant for a short project that lasted until 13.08.2018.

During the year 2019, Kevin was contacted by TopFlow Sdn Bhd to help analyses and reviews the operation system workflow of the factory in Malaysia. Kevin accepted the project and back to Malaysia on 1.3.2019. After the completion of the project, Kevin left Malaysia on 27.05.2019.

Kevin returned to Malaysia again on 1.3.2020 and joined IBMG Bhd as the head technician. Due to the work nature, Kevin was requested to review the consistency of the operation system workflow of the branch in Singapore from 11.4.2020 to 10.5.2020. Kevin rushed back to Australia on 1.7.2020 upon receiving news that his daughter was seriously ill due to a car accident and he returned to Malaysia on 1.9.2020. Kevin had been given one-month pay leave during his stay in Australia. After considering his daughters condition, Kevin had decided to resign and back to Australia on 13.1.2021

Kevin had operated two sole proprietor businesses, i.e. online seafood business and a sundry shop for years 2018 and 2019 respectively. The statement of profit and loss account of both businesses for the year ended 31 December 2020 is as follow:

Business 1: Online seafood business	RM
Net loss after charging the following expenses:	(35,000)
Petrol and toll charges	3,500
Fine from late filing of tax return	4,500
Loss on disposal of office equipment.	2,000
Donation to school library approved by IRB	1,000
Staff salary and wages (included salary to Kevin of RM1,000 per month)	19,000
The company had disposed of one office equipment for RM 6,000 and its related residual expenditure is RM10,000
Unabsorbed business loss b/f	3,750
Kevin had purchased one new unit of air-conditioner on 18.11.2018.	2,200

Business 2: Sundry Shop	RM
Adjusted income	25,000
Balancing charge	2,500
Balancing allowance	1,250
Capital allowance b/f	4,000
Capital allowance for the year	6,500

Other information:

The salary of Kevins employment with IBMG Bhd is RM7,000 per month. The company has paid him a bonus of one and a half months.
He also had received a single-tier dividend income of RM22,500 during the year.
He also involved in translating books or literary work at the request of the Ministry of Education and earned a royalty income of RM35,000 for the year.
He had loaned out RM50,000 to his friends on 1st July 2020 and earned an interest income of 10% p.a. in the year 2020.
He had rented out a condominium to his friend on 1st January 2020 at RM3,000 per month. He also had incurred the following expenditure for the condominium for 2020 as follows:

	RM
Quite rent	300
Assessment	60
Loan interest expense	12,000
Repair of grill door	600

6. He had two children, the eldest son is 22 years old, studying a degree programme in an Australian university. His youngest daughter is 20 years old, disabled and studying diploma programme at a private university. Both childrens living costs are maintained by Kevin.

7. He had incurred the following medical expenses for the year ended 31st December 2020:

-Medical expense incurred for his father is RM1,600.
-Medical expense incurred for his mother-in-law is RM1,000.
-Purchase treadmill for RM5,500.
-Purchase computer for RM3,500
-SOCSO contribution is RM25.

Required:

a). Assess Mr. Kevins tax residence status from Year of Assessment 2015 to 2020, with reasons clearly stated and section quoted.

b) Based on the information above, compute the total income of Mr Kevin for the year of assessment 2020. (Note: Round up the amount into the nearest dollar).