Question $4$

Encik Razali commenced employment with Glory Days Sdn Bhd$.$ on $1\mathrm{.}11\mathrm{.}2001.$ Upon his retirement

on $1\mathrm{.}2\mathrm{.}2021$ at the compulsory retirement age of $55$ years, he received a gratuity. Thereafter, he

commenced his book rental business call $$My Buku Corner$.$

On $30\mathrm{.}4\mathrm{.}2021,$ En$.$Razali$$s wife, Puan Juliana, was retrenched by MQ Sdn Bhd$.$ where she was

employed since $1\mathrm{.}7\mathrm{.}2019.$ She was paid compensation for loss of employment. She then joined her

husband $$s sole proprietorship as the cashier cum clerk.

En$.$ Razali and his wife have three children. The eldest $($born on $3\mathrm{.}8\mathrm{.}2000)$ is disabled. The second

child $($born $1\mathrm{.}5\mathrm{.}2001)$ studying in University Malaya in $2021$ and married in the same year. The third

child $($born $17\mathrm{.}3\mathrm{.}2002)$ studying in University of London in $2021.$

On $3\mathrm{.}9\mathrm{.}2021,$ the Society for Disabled Children, an approved organisation for purposes of s $44(6),$ held

its annual Food and Fun Fair. Puan Juliana donated some clothing and toys worth RM$500($market

value$)$ while Encik Razali gave a cash donation of RM$250.$

Other information pertaining to the year ended $31\mathrm{.}12\mathrm{.}2021$ are as follows:

Encik Razali Puan Juliana

Glory Days Sdn$.$ Bhd$.$ RM RM

Salary $15,000-$

Retirement gratuity $50,000-$

MQ Sdn$.$ Bhd$.$

Salary $-26,600$

Compensation $-24,000$

My Buku Corner

Salary $10,0004,200$

Malaysian dividend $($single tier$)10,000-$

Interest income of fixed deposit with a bank in

Malaysia $-800$

Expenditure on children's education

First child $--$

Second child $4,000-$

Third child $24,000-$

Life insurance policies

Capital sum insured $100,00020,000$

Premium paid $3,2001,200$

Employees Provident Fund contribution $1,6503,388$

Taxation $1($BAAB$1043)$ CONFIDENTIAL

Assignment $25\%$

$6$

The accounts for the $$My Buku Corner$$ for the period $1\mathrm{.}3\mathrm{.}2021$ to $31\mathrm{.}12\mathrm{.}2021$ indicate the

following:

RM RM

Income:

Book rental $76,000$

Charges for late return books $3,00079,000$

Expenditure:

Salary $46,000$

Salary to wife $4,200$

Salary to proprietor $10,000$

Office rental $28,000$

Utilities $4,000$

Depreciation $8,200$

Entertainment for customers $($related to sales$)3,400$

Travelling $7,050(110,850)$

Net loss $(31,850)$

The capital allowances for YA $2021$ amounted to RM$10,500.$

Required:

Assuming that Puan Juliana did not elect for joint assessment but elects to claim child relief,

compute the tax payable by Encik Razali and Puan Juliana for YA $2021.$

$($Total: $40$ Marks$)$