Question 1)

COVID-19 pandemic that has disrupted the economic activities of the nation and the prolonged fighting of pandemic has increased the Government spending considerably. Discusses TWO (2) areas that Malaysia may consider in reforming its existing tax system with a view to achieving its goal as a high income and developed economy.

Question 2)

Encik Ameen is working as an engineer and received annual salary of RM180,000 for the year ended 31 December 2021. His wife, Puan Zurin is a clerk with an annual salary of RM50,000. Being a senior management team, Encik Ameen received an entertainment allowance of RM1,000 a month, medical and dental care for the whole family worth RM20,000 a year and a house to reside with a rental of RM5,000 a month. For the year 2021, he also received 2 months bonus for his excellent services to the company.

The couple has five children. Two of them are doing bachelor program and another three others are under 18 years old. They decided tax reliefs for their children will be divided equally. En Ameen sent his youngest son in kindergarten with a monthly fee of RM400 a month.

Encik Ameen paid RM18,000 for zakat on income and he saved RM8,000 in the SSPN scheme for his children. He also contributed RM18,000 in EPF and paid educational takaful premium RM12,000 a year. He also paid medical takaful of RM2,000 a month for his children.

As the only child, Encik Ameen also taking care of his parents and paid RM9,000 for their medical expenses. In 2021, he bought books and journals worth RM800, a personal computer worth RM3,000 in September 2020 and he paid internet subscription of RM100 per month. He bought a golf set last year worth RM4,000. He also contributed RM400 for SOCSO. Every month, his tax deduction amounted to RM3,000 of his salary. Puan Zurin is also the only child with both parents passed away. She contributed RM13,000 in EPF for the year 2021. They went to Langkawi in December 2021 and spent RM1,200 for hotel accommodation.

Required:

Calculate the tax payable for the year of assessment 2021 for Encik Ameen on the assumption that they file for separate assessment.