Donna is a Malaysian tax resident, working as a manager in the human resource department of a telecommunication company. Her remuneration yearly salary amounted to RM82,860. Her husband, Don service is terminated after 10 years of service and he was paid gratuity amounted to RM150,000. Other details regarding the expenditure incurred by Donna and her Husband, Mr Don for the year ended 31 December 2020 are as follows:

	Donna	Don
	(RM)	(RM)
Contributions to the Employees Provident Fund	9,115	274
Cost of a wheelchair for disabled mother	-	1,300
Medical Expenses for his mother	-	1,400
Donation of clothes	-	500
Medical insurance premium for himself	-	1,870
Childcare fees		1,100
Purchase of sports equipment and gym memberships	900
Purchase of smart phones	-	2,350
Life Insurance premium	4,000	1,800
Consultancy costs for his business plan	-	2,400

Note: Donna and Don have not yet been blessed with a child. On 6 May 2020, Donna has legally adopted her eight-year-old nephew who was a disabled orphan. In 2020, she paid premium on education policy amounted to RM1,200 and a wheelchair at a cost of RM1,140 for the child.

Based on the above information you are required to compute the tax payable/repayable by Donna and Don for the year of assessment 2020 under a joint assessment (Assume that Donna elects to be assessed with his husband income).

Answer rating: 100% (QA)

Ms Donna and MrDon Total Income RM82860 RM150000 10RM10... View the full answer