Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

i need answer asap please A Mrs. Claudia Bella, a Canadian had been employed as a Management Consultant for Enargic Malaysia Sdn Bhd since 1

i need answer asap please image text in transcribed
image text in transcribed
A Mrs. Claudia Bella, a Canadian had been employed as a Management Consultant for Enargic Malaysia Sdn Bhd since 1 April 2000. On 30 June 2020, she resigned due to her health condition. She left Malaysia and returned to Canada on 15 July 2020. During the period from 1 January 2020 to 30 June 2020, she received a salary amounting RM90,000 and RM300,000 as compensation for loss of service. Other benefits received from the company during the year were as follows: 1. She received a wrist watch worth RM15,000 for his long service in May 2020. 2. The company paid RM115,000 for her medical treatment in March 2020 at Avisena Medical Center, Selangor. 3. Travelling allowance of RM2,800 per month and parking allowance of RM300 per month 4. Annual membership fees of RM1,500 to Rich Resources Club paid by Claudia was reimbursed by Enargic Malaysia Sdn Bhd on 2 February 2020. 5. Entertainment allowance of RM3,000 per month. She incurred RM18,400 on entertaining the company's clients. 6. A car costing RM180,000 when it was new in 2017 was provided by the company together with a driver. The driver was paid a salary of RM750 per month. 7. She stayed in a fully furnished condominium with a monthly rental value of RM5,000 (inclusive of furniture of RM1,000 per month). The accommodation was provided until 31 May 2020. 8. She stayed in a hotel for the month of June 2020 and the hotel bill was RM220 per day and was settled by the company. 9. To maintain the condominium, the company provided a maid with a salary of RM800 per month. 10. On 20 May 2020, she exercised the 5,000 units share option granted by the company in 2019. The value of the option price was RM2.00 per unit and the market value at the point the option granted and exercised was RM5.00 per unit and RM7.00 per unit respectively. 11. She attended a two days seminar on financial planning in Venice in January 2020. The food and lodging bills were RM3,000 paid by the company. 12. Holidays expenses for Claudia was paid by the company as follows: Destination Air Fares (RM) Hotel (RM) Meal (RM) Pulau Tioman 700 300 300 Ireland 3,000 2,250 2,000 Poland 9,000 7,000 6,000 Required: Compute the statutory income from employment for the purpose of Malaysian taxation for Mrs. Claudia Bella for the year of assessment 2020. (25 marks) B. Ms Annie and Ms Anna, both Canadian citizens, are moderators for an international accounting professional body based in Canada. They arrived in Malaysia for the first time in August 2020 to conduct moderation work relating to the examinations conducted by the professional body in Malaysia. During the period they were in Malaysia, they exercised their employment in Malaysia but were not paid any salary in Malaysia. Their salaries were paid in Canada. Ms Annie returned to Canada after 55 days in Malaysia which included a ten-day holiday. Ms Anna returned to Canada after 65 days in Malaysia, all of which were for work. Neither Ms Annie nor Ms Anna is expected to return to Malaysia in the next two years. Required: Advise Ms Annie and Ms Anna on the Malaysian income tax implications relating to the exercise of their employment during the period of their stay in Malaysia. (5 marks) A Mrs. Claudia Bella, a Canadian had been employed as a Management Consultant for Enargic Malaysia Sdn Bhd since 1 April 2000. On 30 June 2020, she resigned due to her health condition. She left Malaysia and returned to Canada on 15 July 2020. During the period from 1 January 2020 to 30 June 2020, she received a salary amounting RM90,000 and RM300,000 as compensation for loss of service. Other benefits received from the company during the year were as follows: 1. She received a wrist watch worth RM15,000 for his long service in May 2020. 2. The company paid RM115,000 for her medical treatment in March 2020 at Avisena Medical Center, Selangor. 3. Travelling allowance of RM2,800 per month and parking allowance of RM300 per month 4. Annual membership fees of RM1,500 to Rich Resources Club paid by Claudia was reimbursed by Enargic Malaysia Sdn Bhd on 2 February 2020. 5. Entertainment allowance of RM3,000 per month. She incurred RM18,400 on entertaining the company's clients. 6. A car costing RM180,000 when it was new in 2017 was provided by the company together with a driver. The driver was paid a salary of RM750 per month. 7. She stayed in a fully furnished condominium with a monthly rental value of RM5,000 (inclusive of furniture of RM1,000 per month). The accommodation was provided until 31 May 2020. 8. She stayed in a hotel for the month of June 2020 and the hotel bill was RM220 per day and was settled by the company. 9. To maintain the condominium, the company provided a maid with a salary of RM800 per month. 10. On 20 May 2020, she exercised the 5,000 units share option granted by the company in 2019. The value of the option price was RM2.00 per unit and the market value at the point the option granted and exercised was RM5.00 per unit and RM7.00 per unit respectively. 11. She attended a two days seminar on financial planning in Venice in January 2020. The food and lodging bills were RM3,000 paid by the company. 12. Holidays expenses for Claudia was paid by the company as follows: Destination Air Fares (RM) Hotel (RM) Meal (RM) Pulau Tioman 700 300 300 Ireland 3,000 2,250 2,000 Poland 9,000 7,000 6,000 Required: Compute the statutory income from employment for the purpose of Malaysian taxation for Mrs. Claudia Bella for the year of assessment 2020. (25 marks) B. Ms Annie and Ms Anna, both Canadian citizens, are moderators for an international accounting professional body based in Canada. They arrived in Malaysia for the first time in August 2020 to conduct moderation work relating to the examinations conducted by the professional body in Malaysia. During the period they were in Malaysia, they exercised their employment in Malaysia but were not paid any salary in Malaysia. Their salaries were paid in Canada. Ms Annie returned to Canada after 55 days in Malaysia which included a ten-day holiday. Ms Anna returned to Canada after 65 days in Malaysia, all of which were for work. Neither Ms Annie nor Ms Anna is expected to return to Malaysia in the next two years. Required: Advise Ms Annie and Ms Anna on the Malaysian income tax implications relating to the exercise of their employment during the period of their stay in Malaysia

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Systems

Authors: Ronald W. Hilton, David E. Platt

10th Edition

1308172486, 978-1308172484

More Books

Students explore these related Accounting questions