T4X301 (August 2021 Semester, Online Examination) Page Question 2 (20 marks) Rathika, a Malaysian resident, is a widow, with a one-year-old child. She is employed as a research scientist in a local university. Details of Rathika's employment income, other income and expenditure for the year 2020 are as follows: Employment income, perquisites and benefits-in-kind (BIK): A salary of RM8,000 per month of which 11% was contributed to the employees' provident fund (EPF). One month's bonus based on her performance in 2020, which was received on 8 February 2021. One local leave passage of RM2,300 and RM800 for meals and accommodation for her and her child A fully furnished living accommodation, rented by her employer at a monthly rent of RM4,000, inclusive of RM1,000 for furniture. A domestic maid with a monthly salary of RM800 paid for by Rathika and reimbursed by her employer. A new car purchased by the university in 2019 for RM190,000. No fuel was provided by her employer. During the university's annual dinner in 2020, an award of RM2,400 for being the most innovative employee of the year. Her parents are staying with her She is contributing to a private retirement fund of RM4800 per year She has also taken a personal insurance policy of $4500 per year Other income: Rathika received interest income of RM2,000 on fixed deposits from a local bank. Expenditure in the year 2020: Rathika has original receipts for the payments made for the following: purchase of sports equipment of RM300; - purchase of a smartphone of RM3,200; purchase of breast feeding equipment of RM1,200; and a cash donation of RM50,000 made to an approved healthcare facility assisting kidney patients on 17 July2020. Rathika paid child care fees totalling RM2,700 to her neighbour who helps take care of her child during working hours on weekdays. Required: Compute the income tax payable by Rathika for the year of assessment 2020. Note: You should indicate by the use of the word 'nil'any item referred to in the question for which no adjusting entry needs to be made, including any relief or rebate, in the tax computation. (20 marks) T4X301 (August 2021 Semester, Online Examination) Page Question 2 (20 marks) Rathika, a Malaysian resident, is a widow, with a one-year-old child. She is employed as a research scientist in a local university. Details of Rathika's employment income, other income and expenditure for the year 2020 are as follows: Employment income, perquisites and benefits-in-kind (BIK): A salary of RM8,000 per month of which 11% was contributed to the employees' provident fund (EPF). One month's bonus based on her performance in 2020, which was received on 8 February 2021. One local leave passage of RM2,300 and RM800 for meals and accommodation for her and her child A fully furnished living accommodation, rented by her employer at a monthly rent of RM4,000, inclusive of RM1,000 for furniture. A domestic maid with a monthly salary of RM800 paid for by Rathika and reimbursed by her employer. A new car purchased by the university in 2019 for RM190,000. No fuel was provided by her employer. During the university's annual dinner in 2020, an award of RM2,400 for being the most innovative employee of the year. Her parents are staying with her She is contributing to a private retirement fund of RM4800 per year She has also taken a personal insurance policy of $4500 per year Other income: Rathika received interest income of RM2,000 on fixed deposits from a local bank. Expenditure in the year 2020: Rathika has original receipts for the payments made for the following: purchase of sports equipment of RM300; - purchase of a smartphone of RM3,200; purchase of breast feeding equipment of RM1,200; and a cash donation of RM50,000 made to an approved healthcare facility assisting kidney patients on 17 July2020. Rathika paid child care fees totalling RM2,700 to her neighbour who helps take care of her child during working hours on weekdays. Required: Compute the income tax payable by Rathika for the year of assessment 2020. Note: You should indicate by the use of the word 'nil'any item referred to in the question for which no adjusting entry needs to be made, including any relief or rebate, in the tax computation. (20 marks)
