Tax payer No. 1 - Amin Bin Adam (Self: Husband) A) EMPLOYMENT INCOME . He is a Chartered accountant working in Starcom Malaysia Sdn Bhd He Has been employed by the company since 1 January 2000 Received a salary of RM8,000 per month after 11% EPF deduction Received a bonus of RM15,000 for the year 2019. The company bought new fleets of cars in 2019 and offered to sell their old cars to the employees. Amin was offered a Proton Saga 2010 model @ 5,000 RM. Market value of the car as at that time was 15,000 RM Benefit-in-kind (BIK) a) Accommodation Amin was provided with a furnished Apartment in Alor Star by the Company. The rental was RM5,000 per month (including RM1,000 per month for the furnishings). The house was too big so he was required to entertain clients of the Company with some portion of the house. Amin estimates that his family only utilized about 50% of the house. b) Other BIK Driver Gardener Domestic Servant Utilities bills Child care benefits RM 1000 per month RM500 per month RM700 per month RM3,000 per year RM4,000 per year c) Tax relief: - Amin contributed 11% on his salary to EPF - paid zakat RM2,000 on 3 Feb 2019 (Cheque No. PBB001100 & Receipt no. IBG 44003LM) - A life policy premium of RM2,000 was payable in 2019, he only paid RM1,000 in 2019 e) Amin also got additional incomes for the year ended 2019 from the following sources:- RM 18,000 - Detailed incomes Malaysian dividend (net) Payment date: 31 October 2019 Warrant No. 999 Company Name: ABC Sdn Bhd Interest from CIMB Bank Berhad for 1 year Fixed Deposit 3,000 12,000 Amin owned a shop and received RM1,000 rental income for each month Address: 10, Jalan Sungai, 20000 Alor Star Date of Rental: 1 January 2019 until 31 December 2019 Direct expenses incurred during the year: Assessment Quit rent Insurance Maintenance 200 150 850 500 B) BUSINESS INCOME Amin owned a mini mart, called Amin Minimart. Attached herewith is its profit and loss for the year ended 31 December 2019, Balance Sheet as at 31 December 2019 and Notes to Accounts (Appendix A and B). C) PARTNERSHIP INCOME Based on Form P computed: AP Management Services, Amin has an adjusted Partnership income of RM65,000 for year of Assessment 2019. Children Reliefs: Amin will claim the children's reliefs under his account:- The following are the details of his children: Name Syabil Bin Amin Date of Birth 24 May 1997 Age 23 Farihah Binti Amin Zulaihah Binti Amin 30 January 1999 17 January 2000 20 19 Education details / Remarks University - New Zealand RM6,000 paid for study fee disabled Vocational School Paid RM2,000 school fee per year Singapore secondary institute National school in Malaysia Handicapped Mahmud Bin Amin 12 February 2003 16 Azlina Binti Amin Fadzil Bin Amin 25 July 2008 11 November 2016 11 3 Appendix A Amin Minimart Profit and Loss for the year ended 31 December 2019 RM RM 260,030 Sales Less: Cost of Goods Sold Opening stock + Purchases + Direct Production cost Closing Stock 34,160 78,200 21,800 (19,580) Gross Profit (114,580) 145,450 (Note a) Expenses Salary Rental of Business premises Depreciation Loss on disposal of fixed assets Leave passage Donation Subscription (Cars Magazine) Other deductible expenses 7,000 4,900 56,300 31,900 520 300 190 5950 (Noteb) (Notec) Net Profit during the year 107,060 38,390 Additional information Unabsorbed business loss brought forward: RM300 Note (a) Rental paid Recipient: Ibrahim IC No. 123456-07-8901 Address: 99, Jalan Tenaga, 10200 Alor Star Note (b) Leave passage paid to 2 part time workers trip to KL Note (c) No supporting document Additional Information: 1. Monthly Tax Deduction by employer for the period amounted to RM22,000 2. Total tax instalment made under CP500 (business) is RM35,500 Appendix B Amin Minimart Balance Sheet as at 31 December 2019 Note RM RM 1 39,000 2 Fixed Assets (NBV) Plant & Machinery Less : accumulated Depreciation Motor vehicle Less : Accumulated Depreciation Furniture and Fittings Less: Accumulated Depreciation Total Fixed Assets 49,500 (10,500) 96,000 (38,400) 85,800 (16,860) 57,600 3 68,940 165,540 Current Assets Stock Other Debtors Cash Bank 1,600 32,700 10,500 19,500 64,300 Current Liability Borrowing Trade Creditor Other Creditor Other Current Liability 2,400 21,350 10,300 13,960 48,010 16,290 181,830 Net Current Assets Capital Capital Contribution Retained Profit Less: Drawing 147,000 40,070 (7,620) 179,450 Long Term Liability Loan to shareholder 2,380 181,830 Note: Plant and machinery Date/Year of Purchase 1st Mar 2017 1st Mar 2017 Cost (RM) 49,500 96,000 1 2 Plant and machinery Motor vehicle Other Fixed Assets Furniture and fitting 3 15th Oct 2017 85,800 Tax payer No.2 - Nelysa Nelysa is Amin's first wife. She works as a marketer and her job requires her to meet the company's clients. The following are her employment income details: 1. Monthly salary of RM6,000 after EPF deduction 2. Allowances received from employer with the following portion: - (0) Monthly travelling RM3,000 (self: RM1,000; clients: RM2,000) Cash allowance for the year RM2,000 3. A bonus of RM5,000 for excellent performance was paid to Nelysa. 4. Nelysa contributed 11% of her salary to EPF. 5. Paid life policy premium of RM1,000 in 2019 6. Paid medical insurance premium of RM3,500 in 2019 7. Purchase of Educational books in 2019 for RM1,000 and original receipt provided. 8. Paid medical check-up bill for her mother in 2019 of RM2,000 9. Donated wheel chair RM2000 to General Hospital for care of disabled patients. Others incomes derived in 2019. Dividend incomes both dated 8 Sept 2019 No. Warrant/ Serial No. Company Name Net Dividend RM 300 120 1 2 SC00453 SC00454 Starcom Malaysia Sdn Bhd Starcom Resources Sdn Bhd Income from Rent: RM12,500.00 Type of Property / Asset: Apartment Address: 20, Jalan Lapangan, Alor Star Date of Rental: 1 January 2019 to 31 December 2019 The income is assessed under Section 4(d) ITA 1967. RM Direct expenses: Interest Assessment Quit Rent Insurance Upkeep Renewal of tenancy agreement Other direct expenses Total Expenses 2,200 1,500 1,200 1,200 900 250 800 8,050 10. Monthly Tax Deduction made in 2019 of RM2,400. Tax payer No. 3-Asmaa Asmaa runs a grocery business in 2019. Attached herewith the detailed profit and Loss for the year, Balance Sheet as at 31 December 2019 and Notes to Accounts. Asmaa Groceries Profit and Loss for the year ended 31 December 2019 RM RM 110,388 Nil 69,330 800 (9,142) (60,988) 49,400 Sales Less : Cost of goods sold Opening stock + Purchases + Other allowable direct expenses Closing stock Gross Profit Expenses Staff salary Depreciation Entertainment to staff Donation to school (without receipt) Salary to sole proprietor Net Profit during the year 10,000 13,400 2,000 1,000 6,000 (32,400) 17,000 Asmaa Groceries Balance Sheet as at 31 December 2019 Note RM RM 1 100,000.00 (10,000.00) 90,000.00 2 Fixed Assets (NBV) Building Less : Accumulated Depreciation Furniture and Fittings Table and chairs Less : Accumulated Depreciation Movable partitions Less : Accumulated Depreciation Computer Less: Accumulated Depreciation 9,000.00 3 10,000.00 (1,000.00) 20,000 (2,000.00) 2,000.00 (400.00) 18,000.00 4 1,600.00 118,600.00 Current Assets Stock Cash Bank Other Current Assets 9,142.00 2,123.00 1,000.00 3,558.00 15,823.00 Current Liability Loan Trade Creditor Other Current Liability 400.00 3,500.00 10,000.00 13,900.00 1,923.00 120,523.00 Net Current Assets Financed by : Capital Contribution Current Year Profit 103,523.00 17,000.00 120,523.00 NBV - Net Book Value Note: Date of purchase Cost (RM) 1. Land & Building 12nd Jan 2017 100,000 2. Table and chairs 15th Mac 2019 10,000 3. Movable partitions 15th Mac 2018 20,000 130,000 Additional info: In 2019, Asmaa paid zakat 1000RM and receipt was provided. REQUIRED: A. Compute, using Excel, the lowest final tax liability and print the following for Amin bin Adam and his two wives for Year of Assessment 2019. 1) Capital allowance detailed report 2) Tax liability report for each taxpayer, including: A. Adjusted Income B. Partnership Income C. Employment Income D. Other Source Income Tax payer No. 1 - Amin Bin Adam (Self: Husband) A) EMPLOYMENT INCOME . He is a Chartered accountant working in Starcom Malaysia Sdn Bhd He Has been employed by the company since 1 January 2000 Received a salary of RM8,000 per month after 11% EPF deduction Received a bonus of RM15,000 for the year 2019. The company bought new fleets of cars in 2019 and offered to sell their old cars to the employees. Amin was offered a Proton Saga 2010 model @ 5,000 RM. Market value of the car as at that time was 15,000 RM Benefit-in-kind (BIK) a) Accommodation Amin was provided with a furnished Apartment in Alor Star by the Company. The rental was RM5,000 per month (including RM1,000 per month for the furnishings). The house was too big so he was required to entertain clients of the Company with some portion of the house. Amin estimates that his family only utilized about 50% of the house. b) Other BIK Driver Gardener Domestic Servant Utilities bills Child care benefits RM 1000 per month RM500 per month RM700 per month RM3,000 per year RM4,000 per year c) Tax relief: - Amin contributed 11% on his salary to EPF - paid zakat RM2,000 on 3 Feb 2019 (Cheque No. PBB001100 & Receipt no. IBG 44003LM) - A life policy premium of RM2,000 was payable in 2019, he only paid RM1,000 in 2019 e) Amin also got additional incomes for the year ended 2019 from the following sources:- RM 18,000 - Detailed incomes Malaysian dividend (net) Payment date: 31 October 2019 Warrant No. 999 Company Name: ABC Sdn Bhd Interest from CIMB Bank Berhad for 1 year Fixed Deposit 3,000 12,000 Amin owned a shop and received RM1,000 rental income for each month Address: 10, Jalan Sungai, 20000 Alor Star Date of Rental: 1 January 2019 until 31 December 2019 Direct expenses incurred during the year: Assessment Quit rent Insurance Maintenance 200 150 850 500 B) BUSINESS INCOME Amin owned a mini mart, called Amin Minimart. Attached herewith is its profit and loss for the year ended 31 December 2019, Balance Sheet as at 31 December 2019 and Notes to Accounts (Appendix A and B). C) PARTNERSHIP INCOME Based on Form P computed: AP Management Services, Amin has an adjusted Partnership income of RM65,000 for year of Assessment 2019. Children Reliefs: Amin will claim the children's reliefs under his account:- The following are the details of his children: Name Syabil Bin Amin Date of Birth 24 May 1997 Age 23 Farihah Binti Amin Zulaihah Binti Amin 30 January 1999 17 January 2000 20 19 Education details / Remarks University - New Zealand RM6,000 paid for study fee disabled Vocational School Paid RM2,000 school fee per year Singapore secondary institute National school in Malaysia Handicapped Mahmud Bin Amin 12 February 2003 16 Azlina Binti Amin Fadzil Bin Amin 25 July 2008 11 November 2016 11 3 Appendix A Amin Minimart Profit and Loss for the year ended 31 December 2019 RM RM 260,030 Sales Less: Cost of Goods Sold Opening stock + Purchases + Direct Production cost Closing Stock 34,160 78,200 21,800 (19,580) Gross Profit (114,580) 145,450 (Note a) Expenses Salary Rental of Business premises Depreciation Loss on disposal of fixed assets Leave passage Donation Subscription (Cars Magazine) Other deductible expenses 7,000 4,900 56,300 31,900 520 300 190 5950 (Noteb) (Notec) Net Profit during the year 107,060 38,390 Additional information Unabsorbed business loss brought forward: RM300 Note (a) Rental paid Recipient: Ibrahim IC No. 123456-07-8901 Address: 99, Jalan Tenaga, 10200 Alor Star Note (b) Leave passage paid to 2 part time workers trip to KL Note (c) No supporting document Additional Information: 1. Monthly Tax Deduction by employer for the period amounted to RM22,000 2. Total tax instalment made under CP500 (business) is RM35,500 Appendix B Amin Minimart Balance Sheet as at 31 December 2019 Note RM RM 1 39,000 2 Fixed Assets (NBV) Plant & Machinery Less : accumulated Depreciation Motor vehicle Less : Accumulated Depreciation Furniture and Fittings Less: Accumulated Depreciation Total Fixed Assets 49,500 (10,500) 96,000 (38,400) 85,800 (16,860) 57,600 3 68,940 165,540 Current Assets Stock Other Debtors Cash Bank 1,600 32,700 10,500 19,500 64,300 Current Liability Borrowing Trade Creditor Other Creditor Other Current Liability 2,400 21,350 10,300 13,960 48,010 16,290 181,830 Net Current Assets Capital Capital Contribution Retained Profit Less: Drawing 147,000 40,070 (7,620) 179,450 Long Term Liability Loan to shareholder 2,380 181,830 Note: Plant and machinery Date/Year of Purchase 1st Mar 2017 1st Mar 2017 Cost (RM) 49,500 96,000 1 2 Plant and machinery Motor vehicle Other Fixed Assets Furniture and fitting 3 15th Oct 2017 85,800 Tax payer No.2 - Nelysa Nelysa is Amin's first wife. She works as a marketer and her job requires her to meet the company's clients. The following are her employment income details: 1. Monthly salary of RM6,000 after EPF deduction 2. Allowances received from employer with the following portion: - (0) Monthly travelling RM3,000 (self: RM1,000; clients: RM2,000) Cash allowance for the year RM2,000 3. A bonus of RM5,000 for excellent performance was paid to Nelysa. 4. Nelysa contributed 11% of her salary to EPF. 5. Paid life policy premium of RM1,000 in 2019 6. Paid medical insurance premium of RM3,500 in 2019 7. Purchase of Educational books in 2019 for RM1,000 and original receipt provided. 8. Paid medical check-up bill for her mother in 2019 of RM2,000 9. Donated wheel chair RM2000 to General Hospital for care of disabled patients. Others incomes derived in 2019. Dividend incomes both dated 8 Sept 2019 No. Warrant/ Serial No. Company Name Net Dividend RM 300 120 1 2 SC00453 SC00454 Starcom Malaysia Sdn Bhd Starcom Resources Sdn Bhd Income from Rent: RM12,500.00 Type of Property / Asset: Apartment Address: 20, Jalan Lapangan, Alor Star Date of Rental: 1 January 2019 to 31 December 2019 The income is assessed under Section 4(d) ITA 1967. RM Direct expenses: Interest Assessment Quit Rent Insurance Upkeep Renewal of tenancy agreement Other direct expenses Total Expenses 2,200 1,500 1,200 1,200 900 250 800 8,050 10. Monthly Tax Deduction made in 2019 of RM2,400. Tax payer No. 3-Asmaa Asmaa runs a grocery business in 2019. Attached herewith the detailed profit and Loss for the year, Balance Sheet as at 31 December 2019 and Notes to Accounts. Asmaa Groceries Profit and Loss for the year ended 31 December 2019 RM RM 110,388 Nil 69,330 800 (9,142) (60,988) 49,400 Sales Less : Cost of goods sold Opening stock + Purchases + Other allowable direct expenses Closing stock Gross Profit Expenses Staff salary Depreciation Entertainment to staff Donation to school (without receipt) Salary to sole proprietor Net Profit during the year 10,000 13,400 2,000 1,000 6,000 (32,400) 17,000 Asmaa Groceries Balance Sheet as at 31 December 2019 Note RM RM 1 100,000.00 (10,000.00) 90,000.00 2 Fixed Assets (NBV) Building Less : Accumulated Depreciation Furniture and Fittings Table and chairs Less : Accumulated Depreciation Movable partitions Less : Accumulated Depreciation Computer Less: Accumulated Depreciation 9,000.00 3 10,000.00 (1,000.00) 20,000 (2,000.00) 2,000.00 (400.00) 18,000.00 4 1,600.00 118,600.00 Current Assets Stock Cash Bank Other Current Assets 9,142.00 2,123.00 1,000.00 3,558.00 15,823.00 Current Liability Loan Trade Creditor Other Current Liability 400.00 3,500.00 10,000.00 13,900.00 1,923.00 120,523.00 Net Current Assets Financed by : Capital Contribution Current Year Profit 103,523.00 17,000.00 120,523.00 NBV - Net Book Value Note: Date of purchase Cost (RM) 1. Land & Building 12nd Jan 2017 100,000 2. Table and chairs 15th Mac 2019 10,000 3. Movable partitions 15th Mac 2018 20,000 130,000 Additional info: In 2019, Asmaa paid zakat 1000RM and receipt was provided. REQUIRED: A. Compute, using Excel, the lowest final tax liability and print the following for Amin bin Adam and his two wives for Year of Assessment 2019. 1) Capital allowance detailed report 2) Tax liability report for each taxpayer, including: A. Adjusted Income B. Partnership Income C. Employment Income D. Other Source Income