QUESTION $3$

You are an ICAEW Chartered Accountant of Asiatic Consulting in Malaysia. Recently, you received an email from Ernest. Ernest is a Malaysian who has been working in France since $2003.$ The extract from the email as follows:

Subject: Tax planning

Date: $1$ December $2023$

Good day to you!

My name is Ernest and I am Malaysian. I started to work as an engineer in Otis Ltd$.,$ a construction a company located in Paris, France since I graduated from University of Malaya in $2003.$ In November $2021,$ my employer assigned me as a site supervisor to oversee a construction project in Selangor, Malaysia under a contract. I report duty to Otis Sdn$.$ Bhd$.,$ a subsidiary of Otis Ltd$.,$ during my stay in Malaysia.

I arrived in Malaysia on $21$ October $2022$ for a short holiday in Penang before starting my supervisory work on $1$ January $2023.$ I will stay in Malaysia until $20$ February $2024,$ except for a visit to my parents$-$in$-$law in Paris starting from $19$ December $2023$ to $2$ January $2024.$ My family and I will leave Malaysia to Paris on $18$ December $2023$ and expect to return to Malaysia on $3$ January $2024.$ I am unsure whether I qualify as a Malaysian tax resident for the year of assessment $2022,2023$ and $2024.$

My aunt, who is a Malaysian resident, passed away on $30$ November $2023$ due to heart attack at Putrajaya Hospital Malaysia. According to my aunt's will, I have been appointed as the executor of the estate. However, I am unsure the way of determining the income tax liability of my late aunt's estate.

Exhibit $2$

The following are the details of my late aunt's estate for the year $2023$:

$-$ Statutory business income from the mini$-$mart business of RM$240,000.$

$-$ Adjusted business loss from the coffee house of RM$36,000.$ The business is eligible to claim a capital allowance of RM$12,800.$

$-$ Gross rental income of RM$30,000.$ The expenses incurred for the rented property in $2023$ are RM$1,050,$ RM$980,$ and RM$6,970$ for quit rent and assessment, maintenance fees, and interest on the bank loan, respectively.

$-$ Interest income of RM$3,120$ from a fixed deposit placement in OCBC Bank. The income was received in August $2023.$

$-$ Annuity payable of RM$10,000$ to the beneficiaries.

$-$ Remuneration for the executor of RM$6,000.$

Required:

$($a$)$ Determine Ernest's tax resident status in Malaysia for the years of assessment $2022,2023,$ and $2024.(10$ marks$)$

$($b$)$ Compute the chargeable income of Ernest for the year of assessment $2023.(12$ marks$)$

$($c$)$ Compute the total income of the deceased and the executor for the year of assessment $2023.$ Show all relevant workings. Indicate 'nil' or 'exempt' when necessary. $(8$ marks$)$