Amri works as a production manager at a multinational company in Shah Alam, Selangor. He is married to Lana, a staff nurse at a private hospital in Shah Alam, on 1st December 2017. On 5th September 2019, Lana gave birth to a baby girl named Alana. Prior to this marriage, Amri was married to Zurnia. However, Zurnia passed away in 2016 after suffering from cancer. Amri has 4 children with Zurnia, namely Ahlam, Aiman, Aini and Ahmad.

Since January 2018, Amri runs a small business, Damri Bundle Shop, in Shah Alam. Amri and Lana reported their income and expenses for 2019 tax filing purposes as follows:

1. 1. Amri and Lana earned a monthly gross salary of RM13,000 and RM4,000 respectively. Their contribution to EPF is at 11 percent.

2. 2. Lana received a total of RM8,000 from selling cakes and cookies during her free time.

3. 3. Damri Bundle Shop had an adjusted loss of RM10,000.

4. 4. Expenses related to children:

   1. a. Ahlam, 20, is pursuing his degree at Universiti Malaya. Amri incurred RM15,000 for his expenses in 2019 including RM1,000 for books and RM600 for gymnasium membership.

   2. b. Aiman and Aini, 18 and 17 respectively, are pursuing their study at a secondary school. Amri spent RM5,000 for their expenses in 2019. Amri also spent RM800 for the purchase of their reference books.

   3. c. Ahmad, 13, is a disabled child and schooling at a controlled private school. In 2019, Amri spent RM10,000 for his school fees, RM6,000 for medical treatment including RM600 for a thorough medical examination and RM7,000 for his supporting equipment.

5. d. Lana spent RM1,500 for breastfeeding equipment and RM4,200 for sending her baby to a registered child care centre during her working hours.

6. e. Amri spent RM2,000 for his parents’ medical treatment while Lana incurred RM4,700 for her mother’s medical expenses. Her father had passed away in 2014.

7. 5. Insurance premium:

   1. a. Amri paid RM500 per month on a life insurance policy for himself and Lana.

   2. b. Lana paid an annual premium of RM5,000 on a life insurance policy of her mother.

   3. c. Amri also paid an annual premium of RM4,000 on medical insurance for his children.

   4. d. Lana paid a monthly premium of RM200 on education and medical insurance for Alana with a coverage period of 23 years from 1st October 2019.

8. e. Amri and Lana incurred RM1,080 each for their internet subscription. In addition, Lana spent RM1,000 for her new tablet.

9. f. Amri contributed cash of RM2,000 to a charity run (approved) and RM3,000 to an approved institution while Lana donated her preloved items with a value of RM1,500 to an approved orphanage home.

10. g. Amri deposited RM1,000 each for all his children in National Education Saving Scheme

    (SSPN).

6. Amri and Lana paid zakah on their income amounting to RM3,900 and RM1,200 respectively for the year.

7. Lana claimed child relief on Alana while Amri claimed for the remaining children. All relevant expenses were supported by the original receipts.

REQUIRED:

Compute tax liability for Amri and Lana for the year of assessment 2019.

Answer rating: 100% (QA)

ANS WER 1 Am ri s tax liability G ross income RM 13 000 RM 4 000 RM 8 000 RM 10 000 R... View the full answer