Question 3 (a) Mah Chong is employed for many years as a supervisor with Poo Chung Berhad, a company selling furniture His contract also provides that, when there is an overseas assignment he is required to serve the overseas centre, for which he will be paid RMIO,OOO separately for each overseas assignment During the year 2017 he went twice to Dubai at the request of his employer The payment for this service was paid into his Dubai bank account and is not remitted to Malaysia Income and Benefits RM Salary per annum (Net of 11 EPF contribution) 80,100 Bonus (2 months gross salary based on local work) of which RM3,000 was expected to be paid in January 2018, the balance was paid during 2017 To be computed Gross commission income 5,500 The use of a new car (Honda City) costing (no petrol benefit is provided) 78,000 Mah Chong was offered 12,500 company shares at RM2 per share, he accepted the offer and subscribed for 10,000 shares when the market rice was RM8 per share Market price at offer date 5 00 Paid by employer to stay in Poo Inn Hotel in Malaysia between 1 January 2017 to 31 December 2017 3,000 Travelling allowance 7,000 Child care allowance 3,400 Poo Chung Berhad subsidised 3 pa of the interest paid by Mah Chong on a bank loan RM250,000 taken to acquire his principal private residence Official interest 10 pa Reimbursement paid to Mah Chong by his employer to hire a domestic help 20,000 Dental expense aid for Mah Chong by his employer 6,000 Medical expenses for Mah Chong (non serious disease) paid by his employer 5,000 Fully furnished accommodation (house), rental paid by Poo Chung Berhad (inclusive rental of furniture at RM2,000 pa) The house was not Available until 1 April 2017 26,000 pa Entertainment allowance 10,000 Food and drinks provided free of charge by the employer to Mah Chong 2,400 Gift of companys products 5,000 Expenditure incurred by Mah Chong Entertainment expenses incurred on companys clients 11,000 REQUIRED Computes the statutory employment income of Mah Chong for the year of assessment 2017 Notes Where relevant , your computation should state an item of income expenditure as NIL Marks will be awarded for the use of accurate technical terms to describe the figure calculated at various stages of your tax computation

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Question 3 (a) Mah Chong is employed for many years as a supervisor with Poo Chung Berhad, a company selling furniture. His contract also provides

Question 3

(a) Mah Chong is employed for many years as a supervisor with Poo Chung Berhad, a company selling furniture. His contract also provides that, when there is an overseas assignment he is required to serve the overseas centre, for which he will be paid RMIO,OOO separately for each overseas assignment. During the year 2017 he went twice to Dubai at the request of his employer. The payment for this service was paid into his Dubai bank account and is not remitted to Malaysia.

Income and Benefits:	RM
Salary per annum (Net of 11% EPF contribution)	80,100
Bonus (2 months gross salary based on local work) of which RM3,000 was expected to be paid in January 2018, the balance was paid during 2017	To be computed
Gross commission income	5,500
The use of a new car (Honda City) costing (no petrol benefit is provided)	78,000
Mah Chong was offered 12,500 company shares at RM2 per share, he accepted the offer and subscribed for 10,000 shares when the market rice was RM8 per share	Market price at offer date 5.00
Paid by employer to stay in Poo Inn Hotel in Malaysia between 1 January 2017 to 31 December 2017	3,000
Travelling allowance	7,000
Child care allowance	3,400
Poo Chung Berhad subsidised 3% pa of the interest paid by Mah Chong on a bank loan RM250,000 taken to acquire his principal private residence	Official interest 10% pa
Reimbursement paid to Mah Chong by his employer to hire a domestic help	20,000
Dental expense aid for Mah Chong by his employer	6,000
Medical expenses for Mah Chong (non-serious disease) paid by his employer	5,000
Fully furnished accommodation (house), rental paid by Poo Chung Berhad (inclusive rental of furniture at RM2,000 pa) The house was not Available until 1 April 2017 .	26,000 pa
Entertainment allowance	10,000
Food and drinks provided free of charge by the employer to Mah Chong	2,400
Gift of companys products .	5,000
Expenditure incurred by Mah Chong: Entertainment expenses incurred on companys clients	11,000

REQUIRED :

Computes the statutory employment income of Mah Chong for the year of assessment 2017 .

Notes :

Where relevant , your computation should state an item of income/expenditure as NIL .
Marks will be awarded for the use of accurate technical terms to describe the figure calculated at various stages of your tax computation .