Question 2 Tracy is a Malaysian citizen who has been working in London for the past...
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Question 2 Tracy is a Malaysian citizen who has been working in London for the past ten (10) years with her German husband, Hugo. Hugo was attracted to Malaysia My Second Home (MM2H) program and upon his retirement in March 2022, he and his wife moved to Malaysia. Tracy started her work on 1 June 2022 with Global Multinational Berhad, a multinational company in Malaysia, as a regional partner. On 8 August 2022, Tracy was appointed as an independent director for Elite Berhad, a public listed company on Bursa Malaysia. Tracy's remuneration for the year ended 31 December 2022: Global Multinational Berhad 1. A monthly salary of RM80,000 with her contribution to the Employees' Provident Fund at 11% of her salary. 2. A monthly travelling allowance of RM4,000. Her total travelling expenses incurred for official duties and business trips amounted to RM20,000. 3. 4. 5. A new company car costing RM260,000, fuel and a driver were provided effective from 1 June 2022. A rented fully-furnished bungalow in Bangsar was provided by her employer from 1 June 2022. The monthly rental of RM10,000 which included RM2,000 for the rental of furniture and fittings were paid by Global Multinational Berhad. A maid was paid a monthly salary of RM2,400 by her employer. 6. One leave passage was provided to her (with her husband) to Paris of RM30,000 on 1 December 2022. Elite Berhad Director's fee of RM50,000 for 2022 paid on 20 January 2023. 1. 2. Total travelling allowance of RM10,000 for 2022. vestment income received by Tracy and Hugo in Malaysia for the year ended 31 December 2022: Details Dividends income from resident companies listed with Bursa Malaysia Interest from bonds and bank interest from overseas remitted to Malaysia Rental income (Adjusted) from an apartment in Bangsar, Kuala Lumpur Gains from the disposal of foreign investment remitted to Malaysia Required: Tracy Hugo (RM) (RM) 80,000 1,000 800 500 - 200,000 (a) Compute the chargeable income of Tracy (where Hugo elects for joint assessment with her) for the year of assessment 2022 by virtue of the Income Tax Act (ITA) 1967. All items stated in the question are to be included in the computation. Where any item is not taxable or deductible, indicate 'NIL' in the computation. (18 marks) (b) Explain the tax benefits resulting from Hugo's election for the joint assessment with his wife, Tracy for the year of assessment 2022. (5 marks) (c) Explain the tax exemption provided by Schedule 6 of the ITA 1967 with regards to the dividends received by Tracy and Hugo from resident companies in Malaysia for the year of assessment 2022. (2 marks) [Total: 25 marks] Question 2 Tracy is a Malaysian citizen who has been working in London for the past ten (10) years with her German husband, Hugo. Hugo was attracted to Malaysia My Second Home (MM2H) program and upon his retirement in March 2022, he and his wife moved to Malaysia. Tracy started her work on 1 June 2022 with Global Multinational Berhad, a multinational company in Malaysia, as a regional partner. On 8 August 2022, Tracy was appointed as an independent director for Elite Berhad, a public listed company on Bursa Malaysia. Tracy's remuneration for the year ended 31 December 2022: Global Multinational Berhad 1. A monthly salary of RM80,000 with her contribution to the Employees' Provident Fund at 11% of her salary. 2. A monthly travelling allowance of RM4,000. Her total travelling expenses incurred for official duties and business trips amounted to RM20,000. 3. 4. 5. A new company car costing RM260,000, fuel and a driver were provided effective from 1 June 2022. A rented fully-furnished bungalow in Bangsar was provided by her employer from 1 June 2022. The monthly rental of RM10,000 which included RM2,000 for the rental of furniture and fittings were paid by Global Multinational Berhad. A maid was paid a monthly salary of RM2,400 by her employer. 6. One leave passage was provided to her (with her husband) to Paris of RM30,000 on 1 December 2022. Elite Berhad Director's fee of RM50,000 for 2022 paid on 20 January 2023. 1. 2. Total travelling allowance of RM10,000 for 2022. vestment income received by Tracy and Hugo in Malaysia for the year ended 31 December 2022: Details Dividends income from resident companies listed with Bursa Malaysia Interest from bonds and bank interest from overseas remitted to Malaysia Rental income (Adjusted) from an apartment in Bangsar, Kuala Lumpur Gains from the disposal of foreign investment remitted to Malaysia Required: Tracy Hugo (RM) (RM) 80,000 1,000 800 500 - 200,000 (a) Compute the chargeable income of Tracy (where Hugo elects for joint assessment with her) for the year of assessment 2022 by virtue of the Income Tax Act (ITA) 1967. All items stated in the question are to be included in the computation. Where any item is not taxable or deductible, indicate 'NIL' in the computation. (18 marks) (b) Explain the tax benefits resulting from Hugo's election for the joint assessment with his wife, Tracy for the year of assessment 2022. (5 marks) (c) Explain the tax exemption provided by Schedule 6 of the ITA 1967 with regards to the dividends received by Tracy and Hugo from resident companies in Malaysia for the year of assessment 2022. (2 marks) [Total: 25 marks]
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Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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