i) Prepare the familys taxable income (10 marks)

ii) Determine the familys total tax payable (7 marks)

Jafri and Hazel are married with five children. Jafri is working in construction, while Hazel is part time tuition teacher. Hazel has discussed with Jafri that she is planning to go back to work, but the job requires her to have an MBA. Hazel has already enrolled in an MBA class which will start next month. Their first child is 25 and currently working. Their second son is furthering his degree in a university in Australia. They have adopted twins who are furthering their foundation in a local college. The last child is still in secondary school. The company that Jafri works at deducts RM500 for PCB every month. In two months time, the youngest child will undergo an operation for an serious disease and will require Jafri to purchase a wheelchair at a value of RM2,500. As part of saving for education, the couple have managed to save maintain a savings of RM4,400 for each children kept in Skim Simpanan Pendidikan Nasional and have never withdrawn the money. Annually the family would pay RM4,000 for zakat. Below are additional information for them to do their tax and the tax rate. Salary Jafri Allowance Hazel EPF Contribution - Henry Children Life Insurance Medical Insurance Donation to MAKNA Hazel's MBA fees Children's textbooks Purchase laptop Daughter's operation cost School fees 1st son - working (annual salary) 2nd daughter- degree in Australia 3rd and 4th sons - Foundation 5th daughters - international school RM165,000 per annum RM1,200 per month RM3,163 per month RM1,000 each child RM4,100 RM1950 RM18,960 RM1,500 RM4,700 RM29,000 RM 26,000 USD 7,640 per semester RM8,200 each RM 6,500 (3 semester in a year) Tax(RM) Malaysia Personal Income Tax Rate 2020 Chargeable income Calculation (RM) Tax rate (RM) (%) 0 - 5,000 On the first 5,000 0 5,001 - 20,000 On the first 5,000 0 Next 15,000 1 20,001 - 35,000 On the first 20,000 Next 15,000 3 35,001 - 50,000 On the first 35,000 Next 15,000 8 50,001 - 70,000 On the first 50,000 Next 20,000 14 70,001 - 100,000 On the first 70,000 Next 30,000 21 100,001 - 250,000 On the first 100,000 Next 150,000 24 250,001 - 400,000 On the first 250,000 Next 150,000 24.5 400,001 - 600,000 On the first 400,000 Next 200,000 25 600,001 - 1,000,000 On the first 600,000 Next 400,000 26 1,000,001 -2,000,000 On the first 1,000,000 28 Next 1,000,000 Above 2,000,001 On the first 2,000,000 30 Next ringgit 0 0 150 150 450 600 1,200 1,800 2,800 4,600 6,300 10,900 36,000 46,900 36,750 83,650 50,000 133,650 104,000 237,650 280,000 517,650 Jafri and Hazel are married with five children. Jafri is working in construction, while Hazel is part time tuition teacher. Hazel has discussed with Jafri that she is planning to go back to work, but the job requires her to have an MBA. Hazel has already enrolled in an MBA class which will start next month. Their first child is 25 and currently working. Their second son is furthering his degree in a university in Australia. They have adopted twins who are furthering their foundation in a local college. The last child is still in secondary school. The company that Jafri works at deducts RM500 for PCB every month. In two months time, the youngest child will undergo an operation for an serious disease and will require Jafri to purchase a wheelchair at a value of RM2,500. As part of saving for education, the couple have managed to save maintain a savings of RM4,400 for each children kept in Skim Simpanan Pendidikan Nasional and have never withdrawn the money. Annually the family would pay RM4,000 for zakat. Below are additional information for them to do their tax and the tax rate. Salary Jafri Allowance Hazel EPF Contribution - Henry Children Life Insurance Medical Insurance Donation to MAKNA Hazel's MBA fees Children's textbooks Purchase laptop Daughter's operation cost School fees 1st son - working (annual salary) 2nd daughter- degree in Australia 3rd and 4th sons - Foundation 5th daughters - international school RM165,000 per annum RM1,200 per month RM3,163 per month RM1,000 each child RM4,100 RM1950 RM18,960 RM1,500 RM4,700 RM29,000 RM 26,000 USD 7,640 per semester RM8,200 each RM 6,500 (3 semester in a year) Tax(RM) Malaysia Personal Income Tax Rate 2020 Chargeable income Calculation (RM) Tax rate (RM) (%) 0 - 5,000 On the first 5,000 0 5,001 - 20,000 On the first 5,000 0 Next 15,000 1 20,001 - 35,000 On the first 20,000 Next 15,000 3 35,001 - 50,000 On the first 35,000 Next 15,000 8 50,001 - 70,000 On the first 50,000 Next 20,000 14 70,001 - 100,000 On the first 70,000 Next 30,000 21 100,001 - 250,000 On the first 100,000 Next 150,000 24 250,001 - 400,000 On the first 250,000 Next 150,000 24.5 400,001 - 600,000 On the first 400,000 Next 200,000 25 600,001 - 1,000,000 On the first 600,000 Next 400,000 26 1,000,001 -2,000,000 On the first 1,000,000 28 Next 1,000,000 Above 2,000,001 On the first 2,000,000 30 Next ringgit 0 0 150 150 450 600 1,200 1,800 2,800 4,600 6,300 10,900 36,000 46,900 36,750 83,650 50,000 133,650 104,000 237,650 280,000 517,650