taxation
Amri is a freelance halal consultant since 1 March 2020. Previously, he worked as halal executive in a well-known food processing company in Selayang, Selangor for about 64 months. During his employment, he was paid a monthly gross salary of RM8,500 besides travelling allowance of RM2,500 for exercising his official duties. After quitting his job, he earned 80% more than monthly remuneration paid by his employer. On 19 April 1995, Amri married Aina who was a bank teller in Port Dickson, Negeri Sembilan. They have three (3) children named Adibah, Saiful and Shukri. Saiful and Shukri are twin brothers. On 1 April 2020, Amri attended his primary school reunion dinner and met an old friend, Suri. They fell in love and got married two (2) months after the gathering. After married, Suri remained to stay with her mother (aged 70 years old) at her own house. Suri was a single mother with two (2) children named Shafiu and Rasol (disabled). She owned a bakery shop since July 2016. In the middle of 2020, Suri ventured into a dropship business. Aina suffered from cervix cancer and was endorsed by the Medical Board to retire since mid-2019. On 15 November 2020, she passed away before her fourth chemotherapy treatment cycle. Amri received compensation of RM100,000 from a local insurance company for Takaful policy taken for Aina. The following information has been provided for 2020 tax filing purposes together with original receipts: 1. Suri's bakery reported adjusted income of RM86,000. The amount of balancing charge and capital allowance were RM14,000 and RM35,000 respectively. In addition, her dropship business showed adjusted income of RM78,000. 2. Aina's parents stay near to Amri's house. Amri's father had passed away a few years ago. Thus, his mother (aged 75 years old) moved in to stay with Amri and Aina. Amri's mother is a housewife. Suri's father had passed away when she was in secondary school. Amri spent RM2,000 each for medical treatment of his mother and mothers' in-law. 3. Suri spent RM2,800 to purchase a wheel chair for her son, Rasol, who is disabled. 4. Amri paid RM9,000 for Aina's medical expenses including complete medical examination. 5. Suri purchased a smartphone worth RM1,100 for Shafiu. She also paid RM400 for his annual gym membership fees. Besides, she also paid monthly internet usage of RM80 and RM120 for herself and children which was subscribed under their own names. 6. Amri spent RM1,320 for internet usage subscription under his name and RM1,180 for books purchased by his children (including RM300 of books purchased by his step children). 7. Information related to children is as follows: Adibah Aged 25 years old, works as a teacher and married to Arman in 2019. Her monthly salary is M4,800. Saiful Aged 20 years old, taking Bachelor's degree (part time) at Open University Malaysia. He works as an account assistant in a merchandising company and earned RM2,000 per month. Shukri Aged 20 years old, taking Bachelor's degree (full time) at Universiti Utara Malaysia. Shafiu Aged 20 years old, taking Bachelor's degree (full time) at a well- known private college in Subang Jaya, Selangor. Aged 19 years old, a full time diploma student at one of the polytechnics in Malaysia. Rasol 8. Amri and Suri deposited RM9,000 and RM8,500 in their children's SSPN accounts. Amri withdrew RM3,000 to fund the children's education needs. 9. Insurance policies: Amri paid RM500 for life insurance premium at the end of every month. The policy was subscribed under Aina's name. He also paid RM450 for monthly medical insurance premium for himself. As for the children, Aina subscribed medical and education insurance policy for each of them, and she paid in total RM600 as monthly premium. Since her retirement, the premium was waived. Suri spent RM650 for her life insurance premium and RM150 each for her children's medical insurance policies. 10. Amri and Suri paid zakah for RM10,000 and RM8,000 respectively. REQUIRED: Compute the tax payable for Amri and Suri for the year of assessment 2020 by way of both separate assessment and joint assessment. Indicate Nil' where there is no adjustment to be made in the tax computation. Amri is a freelance halal consultant since 1 March 2020. Previously, he worked as halal executive in a well-known food processing company in Selayang, Selangor for about 64 months. During his employment, he was paid a monthly gross salary of RM8,500 besides travelling allowance of RM2,500 for exercising his official duties. After quitting his job, he earned 80% more than monthly remuneration paid by his employer. On 19 April 1995, Amri married Aina who was a bank teller in Port Dickson, Negeri Sembilan. They have three (3) children named Adibah, Saiful and Shukri. Saiful and Shukri are twin brothers. On 1 April 2020, Amri attended his primary school reunion dinner and met an old friend, Suri. They fell in love and got married two (2) months after the gathering. After married, Suri remained to stay with her mother (aged 70 years old) at her own house. Suri was a single mother with two (2) children named Shafiu and Rasol (disabled). She owned a bakery shop since July 2016. In the middle of 2020, Suri ventured into a dropship business. Aina suffered from cervix cancer and was endorsed by the Medical Board to retire since mid-2019. On 15 November 2020, she passed away before her fourth chemotherapy treatment cycle. Amri received compensation of RM100,000 from a local insurance company for Takaful policy taken for Aina. The following information has been provided for 2020 tax filing purposes together with original receipts: 1. Suri's bakery reported adjusted income of RM86,000. The amount of balancing charge and capital allowance were RM14,000 and RM35,000 respectively. In addition, her dropship business showed adjusted income of RM78,000. 2. Aina's parents stay near to Amri's house. Amri's father had passed away a few years ago. Thus, his mother (aged 75 years old) moved in to stay with Amri and Aina. Amri's mother is a housewife. Suri's father had passed away when she was in secondary school. Amri spent RM2,000 each for medical treatment of his mother and mothers' in-law. 3. Suri spent RM2,800 to purchase a wheel chair for her son, Rasol, who is disabled. 4. Amri paid RM9,000 for Aina's medical expenses including complete medical examination. 5. Suri purchased a smartphone worth RM1,100 for Shafiu. She also paid RM400 for his annual gym membership fees. Besides, she also paid monthly internet usage of RM80 and RM120 for herself and children which was subscribed under their own names. 6. Amri spent RM1,320 for internet usage subscription under his name and RM1,180 for books purchased by his children (including RM300 of books purchased by his step children). 7. Information related to children is as follows: Adibah Aged 25 years old, works as a teacher and married to Arman in 2019. Her monthly salary is M4,800. Saiful Aged 20 years old, taking Bachelor's degree (part time) at Open University Malaysia. He works as an account assistant in a merchandising company and earned RM2,000 per month. Shukri Aged 20 years old, taking Bachelor's degree (full time) at Universiti Utara Malaysia. Shafiu Aged 20 years old, taking Bachelor's degree (full time) at a well- known private college in Subang Jaya, Selangor. Aged 19 years old, a full time diploma student at one of the polytechnics in Malaysia. Rasol 8. Amri and Suri deposited RM9,000 and RM8,500 in their children's SSPN accounts. Amri withdrew RM3,000 to fund the children's education needs. 9. Insurance policies: Amri paid RM500 for life insurance premium at the end of every month. The policy was subscribed under Aina's name. He also paid RM450 for monthly medical insurance premium for himself. As for the children, Aina subscribed medical and education insurance policy for each of them, and she paid in total RM600 as monthly premium. Since her retirement, the premium was waived. Suri spent RM650 for her life insurance premium and RM150 each for her children's medical insurance policies. 10. Amri and Suri paid zakah for RM10,000 and RM8,000 respectively. REQUIRED: Compute the tax payable for Amri and Suri for the year of assessment 2020 by way of both separate assessment and joint assessment. Indicate Nil' where there is no adjustment to be made in the tax computation
