Notes:

1. Amzar made a claim of RM13,000 which was incurred on entertaining the companys clients (receipt provided).

2. The life insurance premium is paid by the company and his daughter, Kesha, is the beneficiary of the life insurance.

3. The cash was given because Amzar was very hardworking and always exceed his work target.

4. The company provided credit card for employment and private purpose. The company paid the expenses of the credit card for the year 2020.

5. Five (5) leave passages were provided by the company for Amzars holiday in Sarawak, Pahang, Selangor, Johor and Brunei. The air fare and the hotel bills (accommodation and foods) amounted to RM10,000 (RM2,500 for each trip) was paid for holidays within Malaysia. Whereas, RM3,500 and RM4,000 were paid respectively for air fare and the hotel bills (accommodation and foods) for holiday in Brunei.

6. On 1 January 2019, the company provided a car which Amzar used for his personal activities and the cost of the car when it was new was RM80,000 (prescribed value according to Inland Revenue Board Malaysia is RM3,600). When Amzar was leaving, the company sold the car to him at RM50,000 instead of the market price of RM60,000.

7. The company appointed and paid a driver with a salary of RM1,000 monthly.

8. A gardener was employed by the company at a salary of RM750 every month.

9. A house with furniture (including air conditioner) was provided by the company until 31 December 2020. The company rented the house for RM2,500 per month including the rental of furniture at RM1,000 each month. Amzar was required to provide half of the house for company use. He was also required to pay a nominal rent of RM500 per month, inclusive of RM100 for furniture.

REQUIRED:

Compute the adjusted employment income of Amzar for the year of assessment 2020. Indicate NIL where necessary.

QUESTION 1 Amzar, from Singapore, is a chartered accountant who was engaged as a finance manager of Plus Bhd since 1 March 2014 in Malaysia. His employment will be terminated on 31 March 2021 but he will continue to receive leave pay from 1 January 2021 after leaving Malaysia permanently on 31 December 2020. The following are the payments and benefits received from his employment with Plus Bhd from 1 January to 31 December 2020: Notes RM 35,600 1 1 Income Monthly salary after 11% EPF deduction Bonus (3/4 of one month salary) Gratuity Monthly traveling allowance Monthly entertainment allowance Monthly parking allowance Monthly life insurance premium Cash received for productivity award Credit card - Employment expenses Personal expenses Leave passage Car Driver Gardener House 200,000 6,000 1,000 200 800 1,000 2 3 4 5 6 7 8 9 13,000 NIL 17,500 provided 12,000ate Window 7,500 ettings to acti Provided