Simon Lee is a Malaysian tax resident, worked as a General Manager in a private hospital in Kuala Lumpur. He was attached to this hospital for more than 15 years. On 30 April 2021, he retired from his service after he reached the compulsory age of retirement. He is married to Monica, who is disabled person, and they have three children. Monica has no source of income. Below are the details of Simon Lee's income and benefits for the duration of his employment in the private hospital in 2021: RM Monthly salary 10,000 per month 20,000 Two months bonus for year 2020 and received in 2021 Parking allowance 200 per month Fully Furnished Apartment paid by employer 2,000 per month (including RM300 for furniture) 4,000 Leave Passage to Langkawi (travelled in January 2021) Gratuity upon retirement 120,000 Entertainment allowance 2,000 per month Entertainment expenses incurred for official duties 12,000 2,500 per month Salary of servant paid by Simon Lee and reimbursed by employer A new company car costing RM210,000 with free petrol was given to Simon Lee from 1 January 2021 to 30 April 2021 On 14 February 2021, a RM25,000 excellent service award was given to Simon Lee in recognising his contribution in supporting the expansion of the company for the last few years. Simon Lee also won a branded watch worth RM12,000 during a company's lucky draw event. Other Income received by Simon Lee in 2021: RM Dividend from Malaysia resident company 6,200 Dividend received from a Labuan registered company 7,000 16,000 Royalty received for translating of books as requested by Ministry of Higher Education 6,000 Commission for recommending a patient to a specialist (friend of Simon Lee) Dividend from a company in Singapore (remitted to Malaysia) Interest income from a fixed deposit (Maybank) 6,500 8,200 Simon Lee owns a condominium in Kuala Lumpur. He received rental from his tenant amounting to RM2,000 every month. In 2020, he spent RM500 for plumbing works in this condominium due to water leakage from the main washroom. He also spent an additional RM300 to install two brand new water heaters, RM2,000 to install one brand new air-conditioner and RM10,000 to extend the kitchen. In the year 2021, he paid RM150 for quit rent and RM250 for flood and fire insurance premium. After his retirement, Simon Lee set up his own pharmacy, "Simon Parma-care under his sole proprietorship. Given below details of his Income Statement for the year 2021. Note RM Sales 200,000 Less: Cost of Sales 1 90,000 Gross Profit 110,000 Less: Expenses 24,000 Staff salary (one staff) Utility 2,400 Running expenses of van 2 16,400 Leave passage 3 900 Rental 24,000 24,000 Salary to own-self (8 month x RM3,000) Net Profit 18,300 (1) The cost of sales included the cost of products consumed by Simon Lee and his family amounted to RM10,800. The market price of these products was RM14,000. (2) Simon Lee leased a van which is used partly for private purposes. The Inland Revenue Board agreed that one-quarter of the expenses incurred for the van are related to these private purposes. (3) The leave passage expenses were in connection with a trip made by Simon Lee and his family to visit his relatives in Sabah. Given below are information pertaining to the expenses incurred by Simon Lee for the year 2021 and details of his children. RM Cash donation to an orphanage (approved institution) 2,000 Simon Lee donated toys and books to a primary school in Ipoh 2,500 Basic supporting equipment (for Simon Lee wife, Monica) 7,000 Basic supporting equipment (for Simon Lee's sister) 4,000 1,000 Medical costs for his mother (only the total of RM600 is supported with receipts) Monthly broadband subscription 200 Monthly life insurance premium for self 400 Complete medical examination for himself, his wife and children 3,000 Monthly medical insurance premium for his children 200 Buy books for his children 1,200 Contribution to Socso 79 Childcare expenses for his child per month 1,200 Details of Simon Lee's children are as below: 1st Child: 13 years old. Study in International School. 2nd Child: 9 years old. Disabled. Attending primary school 3rd Child: 5 years old. Simon Lee sent this child to a care center. The childcare center is registered with Department of Social Welfare. Simon Lee approached you to assist him in computing his tax payable for the year of Assessment 2021. (a) You are required to compute his income tax payable, assuming they have elected for a joint assessment, clearly indicating all relevant sections, exemptions and relief for the Year of Assessment 2021 based on the information given above. Simon Lee is a Malaysian tax resident, worked as a General Manager in a private hospital in Kuala Lumpur. He was attached to this hospital for more than 15 years. On 30 April 2021, he retired from his service after he reached the compulsory age of retirement. He is married to Monica, who is disabled person, and they have three children. Monica has no source of income. Below are the details of Simon Lee's income and benefits for the duration of his employment in the private hospital in 2021: RM Monthly salary 10,000 per month 20,000 Two months bonus for year 2020 and received in 2021 Parking allowance 200 per month Fully Furnished Apartment paid by employer 2,000 per month (including RM300 for furniture) 4,000 Leave Passage to Langkawi (travelled in January 2021) Gratuity upon retirement 120,000 Entertainment allowance 2,000 per month Entertainment expenses incurred for official duties 12,000 2,500 per month Salary of servant paid by Simon Lee and reimbursed by employer A new company car costing RM210,000 with free petrol was given to Simon Lee from 1 January 2021 to 30 April 2021 On 14 February 2021, a RM25,000 excellent service award was given to Simon Lee in recognising his contribution in supporting the expansion of the company for the last few years. Simon Lee also won a branded watch worth RM12,000 during a company's lucky draw event. Other Income received by Simon Lee in 2021: RM Dividend from Malaysia resident company 6,200 Dividend received from a Labuan registered company 7,000 16,000 Royalty received for translating of books as requested by Ministry of Higher Education 6,000 Commission for recommending a patient to a specialist (friend of Simon Lee) Dividend from a company in Singapore (remitted to Malaysia) Interest income from a fixed deposit (Maybank) 6,500 8,200 Simon Lee owns a condominium in Kuala Lumpur. He received rental from his tenant amounting to RM2,000 every month. In 2020, he spent RM500 for plumbing works in this condominium due to water leakage from the main washroom. He also spent an additional RM300 to install two brand new water heaters, RM2,000 to install one brand new air-conditioner and RM10,000 to extend the kitchen. In the year 2021, he paid RM150 for quit rent and RM250 for flood and fire insurance premium. After his retirement, Simon Lee set up his own pharmacy, "Simon Parma-care under his sole proprietorship. Given below details of his Income Statement for the year 2021. Note RM Sales 200,000 Less: Cost of Sales 1 90,000 Gross Profit 110,000 Less: Expenses 24,000 Staff salary (one staff) Utility 2,400 Running expenses of van 2 16,400 Leave passage 3 900 Rental 24,000 24,000 Salary to own-self (8 month x RM3,000) Net Profit 18,300 (1) The cost of sales included the cost of products consumed by Simon Lee and his family amounted to RM10,800. The market price of these products was RM14,000. (2) Simon Lee leased a van which is used partly for private purposes. The Inland Revenue Board agreed that one-quarter of the expenses incurred for the van are related to these private purposes. (3) The leave passage expenses were in connection with a trip made by Simon Lee and his family to visit his relatives in Sabah. Given below are information pertaining to the expenses incurred by Simon Lee for the year 2021 and details of his children. RM Cash donation to an orphanage (approved institution) 2,000 Simon Lee donated toys and books to a primary school in Ipoh 2,500 Basic supporting equipment (for Simon Lee wife, Monica) 7,000 Basic supporting equipment (for Simon Lee's sister) 4,000 1,000 Medical costs for his mother (only the total of RM600 is supported with receipts) Monthly broadband subscription 200 Monthly life insurance premium for self 400 Complete medical examination for himself, his wife and children 3,000 Monthly medical insurance premium for his children 200 Buy books for his children 1,200 Contribution to Socso 79 Childcare expenses for his child per month 1,200 Details of Simon Lee's children are as below: 1st Child: 13 years old. Study in International School. 2nd Child: 9 years old. Disabled. Attending primary school 3rd Child: 5 years old. Simon Lee sent this child to a care center. The childcare center is registered with Department of Social Welfare. Simon Lee approached you to assist him in computing his tax payable for the year of Assessment 2021. (a) You are required to compute his income tax payable, assuming they have elected for a joint assessment, clearly indicating all relevant sections, exemptions and relief for the Year of Assessment 2021 based on the information given above