Question 2 Mr. Ratna, a Malaysian tax resident, is 52 years old. Ratna is the chief executive officer of Sunbeam Sdn Bhd (SSB) since 1 April 2007. He is paid a salary of RM15,000 per month. He received a bonus of RM30,000 which was paid on 28 February 2019. He was given an entertainment allowance of RM3,000 per month of which he spent RM12,000 on official entertainment in 2019. In addition, he was given the use of a new car costing RM170,000 since 2017. Petrol expenses were borne by 558. He was given leave passage by the company to Bangkok in February 2019 costing RM8,500. He had spinal injury in March 2019 and the employer paid for his medical expenses amounting to RM42,000. In January 2019, S5s offered Ratna the option to acquire 20,000 ordinary shares in the company at a nominal sum of RM1.00 per share. The shares had a market value of RM4.00 at the time of option. Ratna accepted the option in April and sold the shares at RM5.20 per share in October 2019 He received from 556 an iPhone worth RM5,500 as a gift for excellence service award. Further personal details are provided by Mr Ratna for 2019: Ratna is married to Sonia, a Malaysian tax resident and retired teacher who is physically handicapped after a car accident. She is 51 years old. In 2019, Sonia earned casual income of RM23,000 by contributing newspaper articles. (ii) Ratna bought a motorized wheel-chair for his wife for RM8,500. (iii) Ratna and Sonia have three children. Their first-born daughter, Rania aged 23, got married during the year. The second daughter, Sandya, 20 years is pursuing a medical degree in Australia while the younger son, Rohan, 19 years, is pursuing a hotel management degree at a local college. Rohan is physically disabled. (iv) Ratna contributes to Employees Provident Fund at 11% and paid life insurance premium of RM2,900. w He deposited RM7,000 into the National Education Savings Scheme for Rohan's education. (vi) He spent RM970 on books and purchased a smartphone for RM2,300 for which he was able to produce receipts. (vii) Ratna's 84-year old father who lives with him, is resident and has no means of income for the year. (viii) Ratna donated RM5,000 cash to an approved charitable organisation. Sonia also received RM3,000 per onth as government pension and made a cash donation of RM500 to a Government approved social organisation. Public Ruling 3/2013 stipulates that the annual value for new car worth RM170,000 is RM7,000 and the prescribed benefit for petrol is RM1,800. Required: In respect of year of assessment 2019, compute the income tax payable by Ratna and Sonia respectively, assuming Sonia did not elect for combined assessment under sec. 45(2) ITA 1967. Mr. Ratna has made a claim for child relief Note: Indicate "Exempt in your answer where appropriate. 127 marks Question 2 Mr. Ratna, a Malaysian tax resident, is 52 years old. Ratna is the chief executive officer of Sunbeam Sdn Bhd (SSB) since 1 April 2007. He is paid a salary of RM15,000 per month. He received a bonus of RM30,000 which was paid on 28 February 2019. He was given an entertainment allowance of RM3,000 per month of which he spent RM12,000 on official entertainment in 2019. In addition, he was given the use of a new car costing RM170,000 since 2017. Petrol expenses were borne by 558. He was given leave passage by the company to Bangkok in February 2019 costing RM8,500. He had spinal injury in March 2019 and the employer paid for his medical expenses amounting to RM42,000. In January 2019, S5s offered Ratna the option to acquire 20,000 ordinary shares in the company at a nominal sum of RM1.00 per share. The shares had a market value of RM4.00 at the time of option. Ratna accepted the option in April and sold the shares at RM5.20 per share in October 2019 He received from 556 an iPhone worth RM5,500 as a gift for excellence service award. Further personal details are provided by Mr Ratna for 2019: Ratna is married to Sonia, a Malaysian tax resident and retired teacher who is physically handicapped after a car accident. She is 51 years old. In 2019, Sonia earned casual income of RM23,000 by contributing newspaper articles. (ii) Ratna bought a motorized wheel-chair for his wife for RM8,500. (iii) Ratna and Sonia have three children. Their first-born daughter, Rania aged 23, got married during the year. The second daughter, Sandya, 20 years is pursuing a medical degree in Australia while the younger son, Rohan, 19 years, is pursuing a hotel management degree at a local college. Rohan is physically disabled. (iv) Ratna contributes to Employees Provident Fund at 11% and paid life insurance premium of RM2,900. w He deposited RM7,000 into the National Education Savings Scheme for Rohan's education. (vi) He spent RM970 on books and purchased a smartphone for RM2,300 for which he was able to produce receipts. (vii) Ratna's 84-year old father who lives with him, is resident and has no means of income for the year. (viii) Ratna donated RM5,000 cash to an approved charitable organisation. Sonia also received RM3,000 per onth as government pension and made a cash donation of RM500 to a Government approved social organisation. Public Ruling 3/2013 stipulates that the annual value for new car worth RM170,000 is RM7,000 and the prescribed benefit for petrol is RM1,800. Required: In respect of year of assessment 2019, compute the income tax payable by Ratna and Sonia respectively, assuming Sonia did not elect for combined assessment under sec. 45(2) ITA 1967. Mr. Ratna has made a claim for child relief Note: Indicate "Exempt in your answer where appropriate. 127 marks