Question 6 Mr Smart is works as a manager of an international company in Kajang, Selangor. Upon attaining the ass 0535 years, Mr Smart retired on 30 September 2019, after having worked for 32 years with his one and only employer. During the year 2019, his income and benefits from this employment were: RM Salary (January - September) 72,000 Bonus 24,000 Gratuity 180,000 Entertainment allowance (January - September) at RM500 per month. He incurred RM4,800 on entertaining business clients for his employer during these four months. 2,000 Domestic servant (reimbursed from his employer) 7,200 Leave passage: Tokyo 6,700 Hong Kong 3,200 Sabah 3,000 Mobile phone 1,500 Fully furnished accommodation was rented by his employer at RM3,000 a month and provided to Mr Smart as a benefit (inclusive of furniture value of RM1,000). 27,000 In January 2019, his son was warded in a private hospital for serious illness while vacationing in Tokyo. His son medical expense amounting to RM4,100 is paid by Mr. Smart company. During the nine months prior to his retirement, Mr Smart was provided with a company car which his employer had acquired as a new car two years earlier at a price of RM85,000. Free fuel was provided to him by his employer. Required: Compute statutory income of Mr. Smart for the YA 2019. Question 7 Luqman had been working as a consultant for Tyco Bhd since April 2008. On 31 July 2019, Luqman ceased from his employment in order to start his own business in Johor Bharu. During the basis year 2019, he received gross monthly salary of RM5,000. He also received a 5-months bonus in January 2019 for his excellent performance in the previous year. Luqman travelled and entertained clients regularly. His employer gave him monthly travelling allowance of RM 500 and entertainment allowances of RM400. For the basis year 2019, he claimed RM5,000 and RM3,500 for the actual travelling and entertainment expenses, respectively. For the basis year 2019, Luqman was also provided with the followings: A 3-years old car purchased for RM90,000 (cost of the car was RM140,000 when new). Luqman used the car until 31 March 2019 as the car was damaged in a road accident. A handphone of which he used up to 30 June 2019. The company paid for the bills which amounted to RM1,000. (iii) A semi-furnished house with air-condition that was shared with another employee of Tyco Bhd. The rateable value of the house alone was RM1,000 per month. Luqman was required to pay RM700 as a rental to his employer. He stayed in the house until 30 June 2019. (iv) Two overseas leave passages costing RM2,000 and RM2,900 each. Four local leave passages to Kuantan costing RM700, Johor Baru costing RM900, Kuala Terengganu costing RM1,300 and Miri costing RM2,500. The leave passage to Kuala Terengganu included the air-ticket costing RM500 for Luqman's brother. v He made a withdrawal from an unapproved fund set up by the company of RM20,000 which he contributed 60% of the amount (v) 5 Required: Compute statutory employment income of Lugman for the year of assessment 2019. Question 8 Mr Lim, age 45, was employed as the Head of Marketing of Blue Green Sdn Bhd in Kuala Lumpur since 1 August 2000. He resigned from his job on 30 November 2019. Payments and benefits received by Mr Lim from Blue Green Sdn Bhd in 2019 were as follows: a) Gross salary of RM10,000 per month. b) Bonus equivalent to two months salary (received in July for accounting period ending 30 June 2019). c) Medical bills RM8,000 (for his wife) paid by the company. d) Entertainment allowance RM1,600 per month and traveling allowance RM1,200 per month. e) Gratuity of RM180,000 was received upon his resignation. f) Mr Lim went for a two weeks holiday in Mac 2019 to Australia. All expenses were paid by the company. Totalled up to RM18,000, in which RM10,000 for air ticket, RM3,300 for food and the balance is for hotel bills. g) A Mercedes C220 (bought on 1/8/2014 at a cost RM195,000) was provided to Mr Lim together with a driver who was paid a salary of RM700 per month by the company. h) Accommodation: Mr Lim was provided with a fully furnished condominium by his company until 31/10/2019 together with the service of maid. The maid received a salary of RM600 per month paid by the company. The condominium has an annual value of RM48, 000 (Including the value of furniture RM550 per month). i) Upon resignation, Mr Lim received from an unapproved fund (set up by the company) an amount of RM50,000 of which RM19,000 is in respect of his own contribution and RM31,000 in respect of his employer contribution. j) On 15 February 2019, Blue Green Sdn Bhd offered Mr Lim the option to purchase 10,000 shares at RM3.00 per share although the current market price was RM5.00 per share. Mr Lim accepted the option and purchased the 5,000 shares on 1 July 2019 when the market price was RM8.00 per share. k) of the entertainment allowance received, Mr Lim actually spent RM12,000 in 2019 to entertain clients. 1) Two-thirds of the travelling expenses were spent for business purposes. Required: Compute the statutory income from employment for Mr Lim for the year of assessment 2019. Question 6 Mr Smart is works as a manager of an international company in Kajang, Selangor. Upon attaining the age of 55 years, Mr Smart retired on 30 September 2019, after having worked for 32 years with his one and only employer. During the year 2019, his income and benefits from this employment were: Salary (January - September) Bonus Gratuity RM 72,000 24,000 180,000 4 Entertainment allowance (January - September) at RM500 per month. He incurred RM4,800 on entertaining business clients for his employer during these four months. 2,000 Domestic servant (reimbursed from his employer) 7,200 Leave passage: Tokyo 6,700 Hong Kong 3,200 Sabah 3,000 Mobile phone 1,500 Fully furnished accommodation was rented by his employer at RM3,000 a month and provided to Mr Smart as a benefit (inclusive of furniture value of RM1,000). 27,000 In January 2019, his son was warded in a private hospital for serious illness while vacationing in Tokyo. His son medical expense amounting to RM4,100 is paid by Mr. Smart company. During the nine months prior to his retirement, Mr Smart was provided with a company car which his employer had acquired as a new car two years earlier at a price of RM85,000. Free fuel was provided to him by his employer. Required: Compute statutory income of Mr. Smart for the YA 2019. Question 7 Lugman had been working as a consultant for Tyco Bhd since April 2008. On 31 July 2019, Luqman ceased from his employment in order to start his own business in Johor Bharu. During the basis year 2019, he received gross monthly salary of RM5,000. He also received a 5-months bonus in January 2019 for his excellent performance in the previous year. Luqman travelled and entertained clients regularly. His employer gave him monthly travelling allowance of RM 500 and entertainment allowances of RM400. For the basis year 2019, he claimed RM5,000 and RM3,500 for the actual travelling and entertainment expenses, respectively. For the basis year 2019, Luqman was also provided with the followings: A 3-years old car purchased for RM90,000 (cost of the car was RM140,000 when new). Luqman used the car until 31 March 2019 as the car was damaged in a road accident. (ii) A handphone of which he used up to 30 June 2019. The company paid for the bills which amounted to RM1,000 A semi-furnished house with air-condition that was shared with another employee of Tyco Bhd. The rateable value of the house alone was RM1,000 per month. Luqman was required to pay RM700 as a rental to his employer. He stayed in the house until 30 June 2019. (iv) Two overseas leave passages costing RM2,000 and RM2,900 each. Four local leave passages to Kuantan costing RM700, Johor Baru costing RM900, Kuala Terengganu costing RM1,300 and Miri costing RM2,500. The leave passage to Kuala Terengganu included the air-ticket costing RM500 for Luqman's brother. (v) He made a withdrawal from an unapproved fund set up by the company of RM20,000 which he contributed 60% of the amount. 5 Required: Compute statutory employment income of Luqman for the year of assessment 2019. Question 8 Mr Lim, age 45, was employed as the Head of Marketing of Blue Green Sdn Bhd in Kuala Lumpur since 1 August 2000. He resigned from his job on 30 November 2019. Payments and benefits received by Mr Lim from Blue Green Sdn Bhd in 2019 were as follows: a) Gross salary of RM10,000 per month. b) Bonus equivalent to two months salary (received in July for accounting period ending 30 June 2019) c) Medical bills RM8,000 (for his wife) paid by the company. d) Entertainment allowance RM1,600 per month and traveling allowance RM1,200 per month. e) Gratuity of RM180,000 was received upon his resignation. f) Mr Lim went for a two weeks holiday in Mac 2019 to Australia. All expenses were paid by the company. Totalled up to RM18,000, in which RM10,000 for air ticket, RM3,300 for food and the balance is for hotel bills. g) A Mercedes C220 (bought on 1/8/2014 at a cost RM195,000) was provided to Mr Lim together with a driver who was paid a salary of RM700 per month by the company. h) Accommodation: Mr Lim was provided with a fully furnished condominium by his company until 31/10/2019 together with the service of maid. The maid received a salary of RM600 per month paid by the company. The condominium has an annual value of RM48,000 (including the value of furniture RM550 per month). 1) Upon resignation, Mr Lim received from an unapproved fund (set up by the company) an amount of RM50,000 of which RM19,000 is in respect of his own contribution and RM31,000 in respect of his employer contribution i) On 15 February 2019, Blue Green Sdn Bhd offered Mr Lim the option to purchase 10,000 shares at RM3.00 per share although the current market price was RM5.00 per share. Mr Lim accepted the option and purchased the 5,000 shares on 1 July 2019 when the market price was RM8.00 per share. k) of the entertainment allowance received, Mr Lim actually spent RM 12,000 in 2019 to entertain clients. 1) Two-thirds of the travelling expenses were spent for business purposes. Required: Compute the statutory income from employment for Mr Lim for the year of assessment 2019