TAX301 Tutorial

Q4.

Junaidah, a Malaysian tax resident, has been working as an accounting director of Streamlast Bhd for many years. She is married to Ahmad, who runs a small grocery business. They have a 24yr old daughter who is studying for her masters degree in a local university.

Junaidah has provided the following information for the year of assessment 2020:

1. Monthly salary for the year of RM30,000.
2. Bonus of two month.
3. Interest subsidy of her housing loan of RM480,000 amounting to RM15,000.
4. A six year old car (that costed RM240,000) was provided with petrol and driver from February 2020.
5. Withdrawal from an unapproved private retirement fund of RM97,000 (of which the company has contributed RM52,000).
6. Both the employer and Junaidah have contributed towards the EPF the statutory required amounts.
7. Both Junaidah and her husbands parents are staying with Junaidah.
8. Junaidah has incurred RM7,180 medical expenses for her parents.
9. She also paid her father-in-laws medical expenses of RM9,600
10. She has bought supporting equipment worth RM8500 for her mother-in law. She has kept the supporting documents for the purchase.
11. She has paid the Zakat for the current year amounting to RM7,500.
12. She has also bought herself life insurance from Takaful Insurance and paid the premium that amounted To RM11,500.
13. To enhance her career, she is currently registered for her Phd programme. She has paid RM13,000 for the program in the current year.
14. She replaced her laptop that was bought several years ago for RM5,500.
15. She also subscribed to internet facilities and paid RM100 per month.
16. Her employer has provided her with a handphone that costs RM4,000 and also pays her phone bill that is registered in her name. The bill for the current year came to RM7,700.
17. In recognition of her services, she was provided with a fully furnished house, with a gardener and servant from Sept 2020. The rental that was paid monthly for the house amounted to RM4,500 inclusive of RM400 for furniture.

Required:

Assuming that Junaidah elect for separate assessment, compute the income tax payable by Junaidah for the year of assessment 2020. (29 marks)

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 or reliefs or rebates given in the tax computation.