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PLEASE I HELP ME WITH THIS MALAYSIAN TAXATION QUESTION PLEASE. Question 3 Alif works as a production manager at a multinational company in Shah Alam,
PLEASE I HELP ME WITH THIS MALAYSIAN TAXATION QUESTION PLEASE.
Question 3 Alif works as a production manager at a multinational company in Shah Alam, Selangor. He married Lubnah, a staff nurse at a private hospital in Shah Alam, on 1 December 2019. On 5 November 2020, a. c. Lubnah gave birth to a baby girl named Aliyah. Prior to this marriage, Alif was married to Zubaidah; however, she passed away in 2017 from cancer. Alif and Zubaidah have four children, Azmi, Azlan, Azimah and Aziz. Since January 2020, Alif has been running a small business, Baidah Bundle Shop, in Shah Alam. Both Alif and Lubnah were tax residents in Malaysia for the 2021 year of basis. They reported their incomes and expenses for 2021 tax filing purposes as follows: Alif and Lubnah earned a monthly gross salary of RM13,000 and RM4,000, respectively. Their contribution to the approved EPF is at 11% a month. b. Lubnah received a total of RM8,000 from selling cakes and cookies during her free time. Baidah Bundle Shop experienced an adjusted loss of RM10,000 and reported capital allowance of RM2,500. d. Expenses related to children: i. Azmi, 20 years old, is pursuing a degree at Universiti Malaya. Alif incurred RM15,000 for his expenses in 2021, including RM1,000 for purchasing books and RM600 for gymnasium membership. ii. Azlan and Azimah, 18 and 17 years old respectively, are pursuing their studies at a secondary school. Alif spent RM5,000 for their expenses in 2021. Alif also spent RM800 for the purchase of their reference books. iii. Aziz, 13 years old, is disabled and schooling at a special private school. In 2021, Alif spent RM10,000 for his school fees, RM6,000 for medical treatment including RM600 for thorough medical examination and RM7,000 for his supporting equipment. Lubnah spent RM1,500 for breastfeeding equipment and RM4,200 for sending her baby to a registered child care centre during her working hours. f. Alif spent RM2,000 for his parents' medical treatment, while Lubnah incurred RM4,700 for her mother's medical expenses. Her father had passed away in 2015. g. Insurance premium: e. 177 i. a h. i. Alif paid RM500 a month on a life insurance policy for himself and Lubnah. ii. Lubnah paid an annual premium of RM5,000 on a life insurance policy of her mother. iii. Alif also paid an annual premium of RM4,000 on medical insurance for his children. iv. Lubnah paid a monthly premium of RM200 on education and medical insurance for Aliyah. Alif and Lubnah incurred RM1,080 each for their internet subscription. In addition, Lubnah spent RM1,000 for her new tablet in July 2020. Alif contributed cash of RM2,000 to a charity run (approved) and RM3,000 to an approved institution, while Lubnah donated her preloved items (used items) worth RM1,500 to an orphanage (approved). Alif deposited RM1,000 each for all his children in the SSPN. Alif and Lubnah paid zakah on their incomes amounting to RM3,900 and RM1,200, respectively, for the year. The monthly tax deduction for Alif and Lubnah were RM300 and RM160, respectively. Lubnah claimed child relief on Aliyah, while Alif claimed for the other children. All relevant expenses were supported by original receipts. j. k. 1. REQUIRED: a. Compute the income tax payable by Alif and Lubnah for the year of assessment 2021. (Note: In your answer, you must list every item stated in the question; indicate 'NIL'where no adjustment is necessary). Differentiate between adjusted income and total income. b. Question 3 Alif works as a production manager at a multinational company in Shah Alam, Selangor. He married Lubnah, a staff nurse at a private hospital in Shah Alam, on 1 December 2019. On 5 November 2020, a. c. Lubnah gave birth to a baby girl named Aliyah. Prior to this marriage, Alif was married to Zubaidah; however, she passed away in 2017 from cancer. Alif and Zubaidah have four children, Azmi, Azlan, Azimah and Aziz. Since January 2020, Alif has been running a small business, Baidah Bundle Shop, in Shah Alam. Both Alif and Lubnah were tax residents in Malaysia for the 2021 year of basis. They reported their incomes and expenses for 2021 tax filing purposes as follows: Alif and Lubnah earned a monthly gross salary of RM13,000 and RM4,000, respectively. Their contribution to the approved EPF is at 11% a month. b. Lubnah received a total of RM8,000 from selling cakes and cookies during her free time. Baidah Bundle Shop experienced an adjusted loss of RM10,000 and reported capital allowance of RM2,500. d. Expenses related to children: i. Azmi, 20 years old, is pursuing a degree at Universiti Malaya. Alif incurred RM15,000 for his expenses in 2021, including RM1,000 for purchasing books and RM600 for gymnasium membership. ii. Azlan and Azimah, 18 and 17 years old respectively, are pursuing their studies at a secondary school. Alif spent RM5,000 for their expenses in 2021. Alif also spent RM800 for the purchase of their reference books. iii. Aziz, 13 years old, is disabled and schooling at a special private school. In 2021, Alif spent RM10,000 for his school fees, RM6,000 for medical treatment including RM600 for thorough medical examination and RM7,000 for his supporting equipment. Lubnah spent RM1,500 for breastfeeding equipment and RM4,200 for sending her baby to a registered child care centre during her working hours. f. Alif spent RM2,000 for his parents' medical treatment, while Lubnah incurred RM4,700 for her mother's medical expenses. Her father had passed away in 2015. g. Insurance premium: e. 177 i. a h. i. Alif paid RM500 a month on a life insurance policy for himself and Lubnah. ii. Lubnah paid an annual premium of RM5,000 on a life insurance policy of her mother. iii. Alif also paid an annual premium of RM4,000 on medical insurance for his children. iv. Lubnah paid a monthly premium of RM200 on education and medical insurance for Aliyah. Alif and Lubnah incurred RM1,080 each for their internet subscription. In addition, Lubnah spent RM1,000 for her new tablet in July 2020. Alif contributed cash of RM2,000 to a charity run (approved) and RM3,000 to an approved institution, while Lubnah donated her preloved items (used items) worth RM1,500 to an orphanage (approved). Alif deposited RM1,000 each for all his children in the SSPN. Alif and Lubnah paid zakah on their incomes amounting to RM3,900 and RM1,200, respectively, for the year. The monthly tax deduction for Alif and Lubnah were RM300 and RM160, respectively. Lubnah claimed child relief on Aliyah, while Alif claimed for the other children. All relevant expenses were supported by original receipts. j. k. 1. REQUIRED: a. Compute the income tax payable by Alif and Lubnah for the year of assessment 2021. (Note: In your answer, you must list every item stated in the question; indicate 'NIL'where no adjustment is necessary). Differentiate between adjusted income and total income. bStep by Step Solution
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