subject Taxation 1

Topic - employment income

Question 1 (10 marks) JR, a marketing manager of Kaya-Raya Sdn.Bhd, was transferred from Johor Bharu to Kuala Lumpur on 1 January 2020. During the first four months in Kuala Lumpur, he was provided with accommodation in the Garden Hotel and for the next eight months, he was provided with a bungalow rented by the company. His remuneration in 2020 was as follows: Gross salary Bonus 2019 petrol allowance for official duties leave passage in thailand ACCA subscription Employer's contribution to an approved provident fund Hotel accommodation (paid by employer) Rental of bungalow (fully furnished) RM 72,000 15,000 5,000 5,000 1,250 10,440 4,800 per month 2,100 per month *the rental that relates to the furnishing in the bungalow was RM500 per month JR was granted an option on 1 May 2019 to acquire 20.000 of the company's shares at RMO 50 not later than 30 April 2021. The market value of the shares at 1 may 2019 was RM1.50 per share. On 6 May 2020, JR exercised the option when the market price is RM3.50 per shares Required: Compute the employment income assessed to income tax for the YA 2020