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QUESTION 1 Juliana is the owner of a business restaurant named as Little Bidor Cafe since 2012. She has been married with Amirul who works

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QUESTION 1 Juliana is the owner of a business restaurant named as Little Bidor Cafe since 2012. She has been married with Amirul who works as a bank manager in Public Bank Berhad. The following is the Statement of Profit or Loss of Little Bidor Cafe for the year ended 31 December 2020. Little Bidor Cafe Statement of Profit or Loss for the year ended 31 December 2020 Note RM RM Sales 640,000 Less : Cost of goods sold (300,000) Gross Profit 340,000 Add: Other income Interest received 2 4,000 Gain on disposal of furniture 1,500 5,500 345,500 Less : Expenses Remunerations 152,000 Lease rental 18,000 Utilities 17,000 Bad debts 10,200 Donations & fees 11,500 & mainte 12,250 Entertainment expenses 8,500 Finance charge 10 6,800 Insurance expenses 11 15,440 Miscellaneous expenses 12 4,600 Depreciation 9,300 (265,590) Net profit 79,910 Notes to the account are as follows: 1. During the year, goods worth RM2,000 was taken by Juliana for personal use. The market value of these goods was RM3,000. However, this transaction was not recorded yet. 2. Interest received was related to the late payment of account receivables. 3. Remunerations consist of the following: Salaries Allowance EPF RN RM RM Juliana 36,000 1 1,000 5,500 Normal employees 54,000 18,000 7,30 Disabled employee 12,000 6,000 2,200 4. Lease rental comprises: RM Business van (RM1,000 per month starting from April 2013) 12,000 Second hand Perodua Myvi (RM500 per month starting from May 2012) 6,000 Note: The cost of second-hand Perodua Myvi when purchased was RM54,000 (not registered under commercial vehicle) 5. 30% of the utilities incurred was for personal use while the remaining balance was for business use 6. Bad debts comprise: RM Loan given to ex-employees written off 3,000 Specific provision of doubtful debts 2.200 Trade debt taken over 5.000 7. Donation & fees comprise: RM Donation of books to public library (apply s 34(6)(9)) 8,00 Cash contribution to charity project (not approved by the Ministry) 2,500 Tax filing fees 1,000 8. Repair & maintenance include: RM Renovation of business premise for enabling disabled employee to work 7,000 Repainting the premise wall 3,250 Maintenance of the Juliana's vehicle 2,000 9. Entertainment expenses comprise: RM Birthday gifts for staff 3,000 Discount voucher given to the potential customers 3.500 Promotional gifts given to the customer (without business logo) 2,000 10. Finance charge is related to the loan amounting RM60,000 taken by Juliana during the year. Half of the loan was used for the business purpose. 11. Insurance expenses include: RM Medical insurance for Juliana and her family 12,000 Life insurance for employees 3,440 12. Miscellaneous expenses consist of: RM Stock loss due to defalcation by employee 1,000 Maintenance of childcare centre provided to employees (registered with the Department of Social Welfare) 3,600 13. The capital allowances for the year of assessment 2020 was RM7,000.The followings are the relevant information related to Juliana and her husband, Amirul as well as her business for the year of assessment 2020: Taxpayers information: Full Name Juliana Binti Rejab Amirul Mukminin Bin Mansor I/C Number 791114-29-5005 711123-03-5067 Resident Status Resident Resident Tax Reference Number OG 56405121212 SG 78010124871 Telephone Number 013-7472810 019-5473970 Bank Account Number Maybank - 567891204444 Public Bank - 7775510890 Email address Juliana79@gmail.com Amirul77@yahoo.com Business information: Name of Business Little Bidor Cafe Business Code 75300 Type of Business Restaurant Business Premise No 37, Jalan Bidor Harmoni 5, Taman Bidor Harmoni, 35500 Bidor, Perak. Employer Ref. No E 6780914325 Premise Tel. No 05-4678999 Premise Email littlebidorcafe@gmail.com Bank and Acc. No. Bank Islam - 3421188000 Amirul has been working with Public Bank since 5 March 2020. Previously, he worked as an Assistant Branch Manager in CIMB Bank for ten years until end of February 2020. His job in CIMB Bank started on 1 March 2010.Due to COVID-19 outbreak, his former employer reduced the workforce and granted him with a redundancy payment. He received the following income from the employment for the year of assessment 2020: Public Bank RM Net Monthly salary after deducted Scheduler tax deduction (STD) and zakat 6.540 STD 563 Monthly zakat deduction 200 Bonus received in year 2020 7,200 Monthly phone allowance 200 Monthly travelling allowance 350 CIMB Bank RM Monthly salary (gross) 5,500 Corporate membership at Royal Golf Club with monthly subscription (entitled until end of February 2020) 280 Redundancy payment 26,500 Other income: Amirul Juliana RM RM Dividends - Public Mutual unit trust 3,400 Dividends - Co-operative Society 1,820 Honorarium received for giving talk on Financial Planning 400 Rental income and expenditures: Monthly rental income - an apartment in Kuala Lumpur 760 Repainting 3,500 Quit rent (per annum) 240 Repair - plumbing works 340 * The apartment was rented since 1 February 2020. Additional Information 1. Before Amirul married with Juliana in 2012, he was married to a part-time tailor named Laila and blessed with one child. The child was named Khairi. He is 18 years old in 2020 and he is currently pursuing study at Matriculation College in Johor. Even though Amirul and Laila already divorced, Amirul still incurred expenses on Khairi's maintenance. 2. Meanwhile, Amirul and Juliana were blessed with two children: . Khalida - 7 years old, attending a primary school in Bidor. Kamal - 3 years old, being diagnosed with leukemia at Stage 2. Juliana has elected to claim relief for Khalida while Amirul claimed for Kamal. 3. Due to Kamal's illness, Amirul incurred RM8,540 for his child's medical treatment. However, he only managed to provide official receipts amounted to RM7,660. Amirul also spent RM890 for the complete medical checkup for himself in November 2020. 4. Juliana paid RM2,800 for purchasing a hearing aid for his father who is suffering hearing impairment since five years ago. His father was certified by Department of Social Welfare as a disabled person. 5. In July 2020, Amirul also brought his family for vacation in Grand Lexis Port Dickson (registered with the Commissioner of Tourism). He kept the invoice amounted RM1,120 for two night stays at the hotel. 6. Juliana purchased a laptop in March 2020 for her own use worth RM2,200. Later on 15 June 2020, she purchased a tablet to be used by Khalida for her home-based teaching and learning (PdPR) online classes worth RM1,570. 7. Amirul hired a private nurse to take care of his sick father aged 71 years old. Currently, his father stays alone in Penang since her mother passed away in 2015 The carer who was appointed by Amirul has a written certification of a qualified carer. The total wages paid to the carer in the year 2020 was RM21,600. Juliana was taking care of her parents even though they were not staying together. She purchased food stocks, necessities and she also gave them monthly allowances. Both her parents aged 63 years old and retired from private sectors with the yearly income of less than RM20,000. 9. Juliana joined an entrepreneurship course that conducted via a webinar. She was charged RM250 for the two-day course.10. In 2020, Juliana contributed to Social Security Organisation (SOCSO) worth RM300. 11. Amirul contributed to Employees Provident Fund (EPF) amounting to RM10,831 in the year of assessment 2020 meanwhile Juliana paid a premium of RM2,500 on a life insurance policy insuring her life. However, the total premium payable for year 2020 was RM3,000. The capital sum insured amounting to RM500,000. 12. Amirul purchased a treadmill worth RM2,499 from Shopee platform in order to promote healthy lifestyle during the pandemic. 13. Amirul donated RM1,000 cash to Rumah Jagaan Orang Tua Pelangi (unapproved institution) while Juliana donated RM2,000 cash for Persatuan Bantuan Khas Perubatan Perak (approved institution under s 44(6) of Income Tax Act 1967). 14. For the year of assessment 2020, Amirul paid zakat fitrah amounting to RM105 for his family. He also deducted zakat on his employment income. Juliana also paid zakat for RM2,640

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