Question 4 (a) Mr Lim, a director of a Japanese company in Tokyo has been seconded...

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Question 4 (a) Mr Lim, a director of a Japanese company in Tokyo has been seconded to the company's Malaysia subsidiary as a Regional Director for 3 years since June 2020. He is a Malaysian tax resident. His monthly salary was RM11,200. He also received a contractual bonus equivalent to 2 months salary. Mr Lim furnished the following information for the year of assessment 2021: The Malaysian subsidiary would pay his salary, provide him with a fully furnished accommodation of RM24,000 per annum and a 3-year used car with petrol subsidy up to RM6,000 per annum. The cost of car when new was RM150,000. His bonus was paid by the company's HQ in Tokyo. In December 2021, besides the 2-month contractual bonus, Mr Lim was paid an additional one month bonus by the company's HQ. He took care of his mother in-law, who is a cancer patient. The mother in-law followed the couple who came to Malaysia and continued her medical treatment in Malaysia. His wife spent RM10,000 for her mother's medical expenses. They have 2 unmarried children. The eldest child is 26 years old and disabled. He discontinued to study A-level in year 2020. The second child is 19 years old and is studying degree programme in a Japanese university. Mr Lim received interest from a fixed deposit in CIMB amounting to RM2,000 and his wife, Mrs Lim received single tier dividend income of RM1,000 from a listed company in Malaysia and interest of RM500 from a bank in Japan. He purchased a personal laptop amounting to RM5,400 during that year of assessment and he kept the original receipt. He had not purchased any laptop since 2010. He purchased books and newspapers for himself and his children amounting to RM2,700. Required: (i) Compute the income tax payable by Mr Lim for the year of assessment 2021. (ii) a. (10 marks) Distinguish the meaning of separate assessment vs joint assessment. In your explanation, include the taxability of income. b. State and explain examples of exempt employment income. Explain the meaning of single tier dividends. (2 marks) (1.5 marks) (1.5 marks) Question 4 (a) Mr Lim, a director of a Japanese company in Tokyo has been seconded to the company's Malaysia subsidiary as a Regional Director for 3 years since June 2020. He is a Malaysian tax resident. His monthly salary was RM11,200. He also received a contractual bonus equivalent to 2 months salary. Mr Lim furnished the following information for the year of assessment 2021: The Malaysian subsidiary would pay his salary, provide him with a fully furnished accommodation of RM24,000 per annum and a 3-year used car with petrol subsidy up to RM6,000 per annum. The cost of car when new was RM150,000. His bonus was paid by the company's HQ in Tokyo. In December 2021, besides the 2-month contractual bonus, Mr Lim was paid an additional one month bonus by the company's HQ. He took care of his mother in-law, who is a cancer patient. The mother in-law followed the couple who came to Malaysia and continued her medical treatment in Malaysia. His wife spent RM10,000 for her mother's medical expenses. They have 2 unmarried children. The eldest child is 26 years old and disabled. He discontinued to study A-level in year 2020. The second child is 19 years old and is studying degree programme in a Japanese university. Mr Lim received interest from a fixed deposit in CIMB amounting to RM2,000 and his wife, Mrs Lim received single tier dividend income of RM1,000 from a listed company in Malaysia and interest of RM500 from a bank in Japan. He purchased a personal laptop amounting to RM5,400 during that year of assessment and he kept the original receipt. He had not purchased any laptop since 2010. He purchased books and newspapers for himself and his children amounting to RM2,700. Required: (i) Compute the income tax payable by Mr Lim for the year of assessment 2021. (ii) a. (10 marks) Distinguish the meaning of separate assessment vs joint assessment. In your explanation, include the taxability of income. b. State and explain examples of exempt employment income. Explain the meaning of single tier dividends. (2 marks) (1.5 marks) (1.5 marks)