QUESTION 2

Amir is an accounting graduate from Multimedia University. Upon completing his study

in March 2016, he joined Phuad, Viknesh and Chuah (PVC), a medium-sized firm in

Damansara Utama offering accounting, auditing, and taxation services. After three years

of working there, Amir had been promoted to the permanent audit associate position with

effect from 1st January 2019.

Amir had recently celebrated the birth of his son on 19th June 2019 after two years of

marriage. His wife, Intan, is a full-time Master of Business Administration (MBA)

student in the University of Malaya. Her tuition fees and living allowances are fully

sponsored by a public scholarship, allowing her to not seek employment.

Amir, Intan, and their new-born son have been living in an apartment in Taman Tun Dr.

Ismail. They also have been taking care of Intan's sixty-two-year-old mother, Hajah Ina.

Hajah Ina has always been a housewife with no income of her own. In return for the

couple's care, she has been looking after their son when Intan attends her classes.

The following information details Amir's income and expenses throughout the year 2019.

Employment Income and Benefits

i. A gross monthly salary of RM4,000.

ii. A performance bonus of 1.25-month salary paid in March 2019.

iii. Amir had taken a one-month study leave in October 2019 to focus on his

ICAEW's professional examinations. PVC had paid his salary in full for this

month.

iv. The gross monthly salaries, performance bonus, and salary paid during the study

leave had been subjected to 11% deduction for Employees' Provident Fund (EPF)

contribution.

v. Contribution for SOCSO of RM19.75 per month had also been deducted from his

gross monthly salaries and salary paid during the study leave.

vi. Travelling allowance amounting to RM250 per month to assist Amir's field audit

assignments.

vii. A family medical benefit package that had covered RM1,800 for the whole year.

Out of that amount, RM1,750 was for Intan's maternity expenses.

viii. In February 2019, PVC had sent Amir to Sarawak to perform audit works on

several clients located in that state. PVC had provided Amir with hotel

accommodation throughout the entire month. The room costed RM120 per night.

Other income

i. On 15th January 2019, Amir had received a dividend of USD300 from his

investment in an American bio-tech start-up. The exchange rate applicable on that

date was USD1:RM4.10.

ii. Interest amounting to RM325 had been credited into his Maybank savings account

on 15th June 2019. It was derived from his fixed deposit savings in that bank.

Expenditure

i. Purchase of laptop and printer by Amir for Intan's study. The laptop and printer

costed RM1,899 and RM367 respectively.

ii. Payment of RM350 annual subscription fee to the Malaysian Institute of

Accountant under Amir's name.

iii. Purchase of books and references totalling RM725 by Amir and Intan for their

respective studies.

iv. Amir paid RM1,800 for his ICAEW tuition fees.

v. Medical expense paid by Amir for Hajah Ina's clinic visit amounting to RM100.

vi. Broadband subscription registered under Amir's name for the family use. The bill

was RM130 per month throughout the year.

vii. A yearly premium on medical insurance for Amir, Intan, and their baby

amounting to RM4,000.

viii. Zakat payment of RM29.60 had been made on 31st May 2019.

Required:

Calculate Amir's income tax payable for the Year of Assessment 2019. Give me ALL

relevant workings. Also provide me your answer for income tax payable to the nearest TWO

(2) decimal points.

Note: You should indicate by the use of word "nil" for any item referred to in the

question which no adjusting entry needs to be made or no reliefs or rebates to be given in

the tax computation.