James, an Australian national, is a tax resident in Malaysia for the year of assessment 2021.

He has been employed as a marketing manager by Cooper Sdn. Bhd. since 2019. His

remuneration details for the year 2021 are as follows:

Salary of RM12,000 per month.

Entertainment allowance of RM2,500 per month.

Travelling allowance of RM2,000 per month.

James is provided with a used car which was purchased by the company in 2015 for

RM130,000. The cost of the car when new was RM180,000.

An overseas leave passage to Bali was paid for him, his wife and his mother. The

company paid RM1,400 per person for their holiday trip in Bali.

A fully furnished house was provided to him where the company paid a monthly rental

of RM3,800 including rental for furnishings of RM300 commencing from 1 August

2021.

Reimbursement of salary in respect of a domestic maid hired by James at a monthly

salary of RM1,500 commencing from 1 October 2021.

While performing his duty in the year 2021, he spent RM33,000 in entertaining clients and

incurred RM20,000 for travelling expenses.

Other relevant information on income and expenditure incurred during the year 2021 are as

follows:

1. Interest income of RM2,000 from a fixed deposit with Maybank Berhad.

2. Royalty income of RM18,000 from the sale of CDs recorded by him as a part time

musician.

3. Net rental income of RM25,000 from a property located in Australia. James remitted

RM10,000 to Malaysia.

4. Professional subscription fee of RM1,500 to the Chartered Institute of Marketing.

Required:

(a) Calculate the aggregate income of James for the year of assessment 2021.

(b) James has approached you regarding his salary if it is paid in Australia is subject to

Malaysian income tax.