Puan Allysa, (aged 40 years old) has been with Macadamis Industries as an accountant since 1 July 1999. Her service was terminated on 31 July 2020. She received RM45,000 as compensation for loss of employment and a gratuity of RM25,000. She withdrew RM50,000 from an unapproved fund (70% of the fund was contributed by Macadamis Industries).

The details of her remuneration and benefits from Macadamis Industries in the year 2016 were as follows:

a. Monthly salary of RM4,500 (gross)

b. Monthly entertainment allowance of RM500 9

c. A six-year old Volvo which cost RM175,000 when new.

d. A semi-furnished apartment with air condition, carpet and curtain. Macadamis Industries rented the apartment at RM1,500 per month, excluding the rental of furniture of RM200.

On 1 August 2016, Puan Allysa commenced employment with Cadbury Sdn Bhd as a Finance Manager for which she was given the following remuneration and benefits for the year 2020:

a. Salary RM4,005 per month (after deducting employee's EPF contribution of 11%)

b. Bonus of RM6,000

c. A fully furnished bungalow. Cadbury Sdn Bhd paid a monthly rental of RM5,500 inclusive of furniture value at RM2,500.

d. A brand new Mercedes Benz (costing RM278,000) and a driver were also provided. The company paid RM650 per month for the driver and RM4,000 for fuel,

e. Entertainment allowance of RM300 per month,

f. A servant with a salary of RM500 per month, paid by the employer.

g. Leave passages to Tioman Island and New Zealand (with her husband and a daughter). Costs of air tickets paid by Cadbury Sdn Bhd were RM3,500 and RM11,750 respectively.

Other information:

1. Puan Allysa incurred entertainment expenses of RM2,000 from August 2016 until December 2020.

2. Puan Allysa paid an annual membership fee to Malaysian Institute of Accountants of RM250

Required:

Compute the statutory income from employment for Puan Allysa for the year of assessment 2020

Answer rating: 100% (QA)

Puan Allysas taxable income is computed as follows Monthly salary monthly entertain... View the full answer