Question 3 (20 Marks)

Ronaldo is a chartered accountant and employed as chief financial analyst of Pride Bhd since 1 March 2017. Ronaldo contract of employment with the company is ended on 31 December 2022 as stipulated in the employment contract.

The following are the payments and benefits received from his employment for the in the year 2022:

i. Monthly salary after EPF deduction at 11% amounted to RM22,250.

ii. Two- month bonus for the year 2021 but was paid on June 2022.

iii. Gratuity upon expiration of contract at RM220,000

iv. Travelling allowance of RM1,000, entertainment allowance of RM500 and parking allowance of RM100 were provided for each month.

v. Credit card to be used for employment and private purpose. He used RM15,000 in which 30% is related to his private expense.

vi. Leave passage as per following details:

a. Four local to travel within Malaysia. A total of RM2,500 was allocated for each destination inclusive of air fare, hotel bills and meals.

b. Trip to Bangkok with total cost of RM5,000 for him and his family. The air fare was for RM3,500 whereas the balance was for meals, accommodation and insurance.

vii. On January 2022, Ronaldo was provided with a new car and a driver by the company. The cost of the car was at RM95,000. When Ronaldo is leaving, the company sold the car to him at RM60,000 instead the market price of RM76,000.

viii. The driver was paid for RM1,200 per month by the company.

ix. Ronaldo hired a servant with monthly salary of RM1,200. The amount paid is reimbursed by the company.

x. A fully-furnished house was provided by the company until 31 December 2022. The company rented the house for RM3,000 per month including the furniture at RM1,000 each month. Ronaldo was required to pay 30% as nominal rent for the house.

xi. Ronaldos wife, Julia is suffered with mild depression and she is on medical treatment. While his younger son was diagnosed with kidney problem and undergo an operation with cost of RM55,000. The medical costs were fully sponsored by the company in the year 2022.

xii. The company also paid RM2,150 for Ronaldos utilities bills in the year 2022 (bills are under Ronaldos name). 4

xiii. Ronaldo is an individual member of ABC Golf Club. In year 2022, he paid RM1,500 for the membership fee and claimed the amount from the company.

xiv. Ronaldo made a claim of RM8,200 which was incurred on entertaining the companys clients in the year 2022

Required: Calculate the statutory employment income of Ronaldo for the year of assessment 2022. (16 marks) (CLO2:PLO7:C5) .Assume Ronaldo was assigned to London from the month of September 2022 to December 2022. Discuss whether his income earned is still subject to Malaysian tax or not. (2 marks) (CLO2:PLO7:C4) .Explain the tax treatment for the bonus of year 2021 but received in the year 2022. (2 marks) (CLO2:PLO7:C4)