Dr Sam is a service director of YTC Corporation Berhad (YTC), a multinational company with extensive operations in South East Asian countries. He joined YTC on 15 November 2018. His employment income and other relevant information for the year of assessment 2021 are as follows:

1. Dr Sam received an annual director fee of RM30,000.

2. He was paid a monthly salary of RM20,000 and an entertainment allowance of RM3,000 per

month. During the year, he spent RM30,000 on entertaining the companys clients.

3. YTCs contribution towards Dr Sams EPF is at 15% and Dr Sams contribution towards his

EPF is at 11% of his salary.

4. During the year, he made a total claim of RM25,500 on travelling expenses for his business

trips and official duties and the claim was fully reimbursed by YTC.

5. An imported reconditioned car costing RM245,000 and a driver with a monthly salary of

RM2,000 were provided to him from 1 May 2021 onwards. The car was first registered in

Malaysia on 15 April 2021.

6. An unfurnished condominium together with the weekly cleaner services were provided to him

for the whole year. YTC reimbursed Dr Sam for the monthly rental of RM3,000 for the

condominium. Throughout the year, he incurred RM15,500 for the utilities bills and paid

RM4,800 in total for the cleaner services provided. All these expenses were reimbursed by

YTC subsequently.

7. YTC offered Dr Sam a share option of 20,000 units under a conditional share scheme at an

option price of RM2.00 on 1 February 2018 when the market price was RM2.80. He is required

to serve his employer for at least 3 years. He accepted the offer and fully exercised the option

on 10 October 2021 when the market price was RM3.50.

Other income:

1. Dr Sam had invested in the quoted share market and received the dividends from the following

tax resident companies:

- Genting Berhad RM5,500

- CIMB RM2,200

2. During the year, he also received a net distribution of RM15,200 from his investment in the

Public Mutual unit trust fund. The tax deducted at the source was RM4,800.

Other information:

1. Dr Sam is married to Susan and they have three children.

Their children:

- Samuel, 20 years old, is studying for a full-time degree at the University of Malaya.

- Jane, 10 years old, is disabled and currently is studying in a special school catering for

disabled children in Kuala Lumpur.

- Josephine, 5 years old, is attending kindergarten class.

Susan is a freelancer. She has the following income for the year of assessment 2021:

- She was paid RM4,500 as the commission for editing some articles published in a local

journal.

- She also received a royalty income of RM30,000 for a book written by her three years

ago from a well-known publisher in Malaysia.

2. He spent RM9,000 on his parents medical expenses. Both of his parents are tax residents for

the year of assessment 2021.

3. He purchased a new iPhone worth RM4,800 for himself and books and magazines costing

RM500.

4. He donated an Electrocardiogram (ECG) machine costing RM25,000 to Institut Jantung

Negara (IJN). IJN is an institute approved by the Ministry of Health.

5. Dr Sam and Susan are tax residents for the year of assessment 2021. They did not elect for

joint assessment. Dr Sam will claim all the child relief.

Required:

With reference to the ITA, compute the chargeable income of Dr Sam and Susan for the year of assessment 2021. All items stated in the question are to be included in the computation. Where the item is not taxable or deductible, indicate NIL in the

computation.