Question 9 Mr. Ronnie, aged 56, retired on 30 April 2019 from Palazzo Bhd. He had worked in the company since 1 November 2005. Upon retirement, he received gratuity of RM70,000 and compensation for loss of employment of RM100,000. He also withdrew RM60,000 from the company's unapproved retirement fund of which RM 18,000 represents his contributions and RM6,000 represents interest income earned on total contributions (employer's and employee's contribution). Payments and benefits received by Mr. Ronnie from Pallazzo Bhd in 2019 were as follows:- a. Net monthly salary of RM4,300 after deducting EPF contribution of 11% and tax of RM150. 6 b. A watch costing RM3,000 for serving the company for 15 years at the company annual dinner held on 28 February 2019. c. On 15 January 2019, he had a heart surgery. The surgical and medical expenses incurred amounted to RM20,000 was paid by the company. d. A semi-furnished house was provided by the company until 31 March 2019. The monthly rent of RM600 (excluding furniture of RM150) was paid by the company. On 1 July 2019, he and his close friend set up a company, Terrazzo Sdn Bhd, each owning half of the shares of the company. As the owner of the company, Mr. Ronnie was given the following remuneration and benefits: a. Monthly director fees of RM5,000 b. Entertainment allowance of RM800 per month. c. Mr. Ronnie was provided with a mobile phone. All business calls and phone rental amounted to RM1,800 for the month of July until December 2019 was paid by the company. d. A new company car costing RM120,000 was purchased and provided to Mr. Ronnie together with a driver from 1 September 2016 e. For the month of July 2019, Mr. Ronnie was provided with accommodation in a hotel with daily room rate of RM200. On 1 August 2019, he moved into a house provided by the company with a monthly rental of RM3,000. Mr. Ronnie used his own furniture for the house. f. The company also provided him with a servant and a gardener with a monthly salary of RM600 and RM300 respectively, effective from 1 August 2019. 8. During Christmas, Mr. Ronnie and his wife went for a holiday to Perth, Australia where the following expenses were paid by Terrazzo Sdn Bhd: RM Airfares including insurance 12.500 Hotel accommodation 7.100 Required: Compute the statutory employment income of Mr. Ronnie for the year of assessment 2019. Question 10 Puan Allysa, (aged 40 years old) has been with Macadamis Industries as an accountant since 1 July 1999. Her service was terminated on 31 July 2019. She received RM45,000 as compensation for loss of employment and a gratuity of RM25,000. She withdrew RM50,000 from an unapproved fund (70% of the fund was contributed by Macadamis Industries). The details of her remuneration and benefits from Macadamis Industries in the year 2016 were as follows: Monthly salary of RM4,500 (gross) Monthly entertainment allowance of RM500 A six-year old Volvo which cost RM175,000 when new. A semi-furnished apartment with air condition, carpet and curtain Macadamis Industries rented the apartment at RM1,500 per month, excluding the rental of furniture of RM200. a b c. d. 7 a b. C On 1 August 2016, Puan Allysa commenced employment with Cadbury Sdn Bhd as a Finance Manager for which she was given the following remuneration and benefits for the year 2019: Salary RM4,005 per month (after deducting employee's EPF contribution of 11%) Bonus of RM6,000 A fully furnished bungalow. Cadbury Sdn Bhd paid a monthly rental of RM5,500 inclusive of furniture value at RM2,500. A brand new Mercedes Benz (costing RM278,000) and a driver were also provided. The company paid RM650 per month for the driver and RM4,000 for fuel. Entertainment allowance of RM300 per month, f. A servant with a salary of RM500 per month, paid by the employer. Leave passages to Tioman Island and New Zealand (with her husband and a daughter). Costs of air tickets paid by Cadbury Sdn Bhd were RM3,500 and RM11,750 respectively d. e. 8 Other information: 1. Puan Allysa incurred entertainment expenses of RM2,000 from August 2016 until December 2019 Puan Allysa paid an annual membership fee to Malaysian Institute of Accountants of RM250 2 Required: Compute the statutory income from employment for Puan Allysa for the year of assessment 2019. Question 9 Mr. Ronnie, aged 56, retired on 30 April 2019 from Pallazzo Bhd. He had worked in the company since 1 November 2005. Upon retirement, he received gratuity of RM70,000 and compensation for less of employment of RM100,000, He also withdrew RM60,000 from the company's unapproved retirement fund of which RM 18,000 represents his contributions and RM6,000 represents interest income earned on total contributions (employer's and employee's contribution). Payments and benefits received by Mr. Ronnie from Pallazzo Bhd in 2019 were as follows: a Net monthly salary of RM4,300 after deducting EPF contribution of 11% and tax of RM150. b. A watch costing RM3,000 for serving the company for 15 years at the company annual dinner held on 28 February 2019. c. On 15 January 2019, he had a heart surgery. The surgical and medical expenses incurred amounted to RM20,000 was paid by the company. d. A semi-furnished house was provided by the company until 31 March 2019. The monthly rent of RM600 (excluding furniture of RM150) was paid by the company. On 1 July 2019, he and his close friend set up a company, Terrazzo Sdn Bhd, each owning half of the shares of the company. As the owner of the company, Mr. Ronnie was given the following remuneration and benefits: a. Monthly director fees of RM5,000. b. Entertainment allowance of RM800 per month. c. Mr. Ronnie was provided with a mobile phone. All business calls and phone rental amounted to RM1,800 for the month of July until December 2019 was paid by the company d. A new company car costing RM120,000 was purchased and provided to Mr. Ronnie together with a driver from 1 September 2016 e. For the month of July 2019, Mr. Ronnie was provided with accommodation in a hotel with daily room rate of RM200. On 1 August 2019, he moved into a house provided by the company with a monthly rental of RM3,000. Mr. Ronnie used his own furniture for the house. f. The company also provided him with a servant and a gardener with a monthly salary of RM600 and RM300 respectively, effective from 1 August 2019, 8. During Christmas, Mr. Ronnie and his wife went for a holiday to Perth, Australia where the following expenses were paid by Terrazzo Sdn Bhd:- RM Airfares including insurance 12,500 Hotel accommodation 7,100 Required: Compute the statutory employment income of Mr. Ronnie for the year of assessment 2019, Question 10 Puan Allysa, (aged 40 years old) has been with Macadamnis Industries as an accountant since 1 July 1999. Her service was terminated on 31 July 2019. She received RM45,000 as compensation for loss of employment and a gratuity of RM25,000. She withdrew RM50,000 from an unapproved fund (70% of the fund was contributed by Macadamis Industries). The details of her remuneration and benefits from Macadamis Industries in the year 2016 were as follows: Monthly salary of RM4,500 (grass) Monthly entertainment allowance of RM500 A six-year old Volvo which cost RM175,000 when new. A semi-furnished apartment with air condition, carpet and curtain. Macadamis Industries rented the apartment at RM1,500 per month, excluding the rental of furniture of RM200 a b. c. d. 7 b. C On 1 August 2016, Puan Allysa commenced employment with Cadbury Sdn Bhd as a Finance Manager for which she was given the following remuneration and benefits for the year 2019: Salary RM4,00 per month (after deducting employee's EPF contribution of 11%) Bonus of RM6,000 A fully furnished bungalow. Cadbury Sdn Bhd paid a monthly rental of RM5,500 inclusive of furniture value at RM2,500. A brand new Mercedes Benz (costing RM278,000) and a driver were also provided The company paid RM650 per month for the driver and RM4,000 for fuel, Entertainment allowance of RM300 per month f. A servant with a salary of RM500 per month, paid by the employer. B Leave passages to Tioman Island and New Zealand (with her husband and a daughter). Costs of air tickets paid by Cadbury Sdn Bhd were RM3,500 and RM11.750 respectively. d. 1. Other information: Puan Allysa incurred entertainment expenses of RM2,000 from August 2016 until December 2019 2. Puan Allysa paid an annual membership fee to Malaysian Institute of Accountants of RM250 Required: Compute the statutory income from employment for Puan Allysa for the year of assessment 2019