En Ramli retired optionally from government service on 28 February 2019, his 58 years birthday. He commenced
Question:
En Ramli retired optionally from government service on 28 February 2019, his 58 years birthday. He commenced employment with Tanjong Sdn Bhd on 1 April 2019 at a monthly salary of RM9,000. The following information applied to En Ramli and Pn Yati, his wife.
En Ramli
The company provided him with a new company car costing RM120,000 and a driver. The car was delivered to him on 1 July 2019.
On 1 July 2019, he moved to a fully furnished house provided by the company. The annual value of the house was RM25,000. The value of the furnishings was RM280 per month as per IRB guidelines.
Other benefits provided by the company for the period 1 April to 31 December 2019 were as follows:
RM | |
Medical treatment for his children | 1,500 |
Dental treatment for his wife | 200 |
Two leave passage to Tasik Kenyir | 2,800 |
One leave passage to Melaka | 1,200 |
His income from government service for the year ended 31 December 2019 was as follows:
RM | |
Salary (January – February) | 12,000 |
Pension (March – December) | 20,000 |
Retirement gratuity | 75,000 |
En Ramli’s contributions to the EPF in 2019 were RM8,910. In January 2019 his son was warded in a private hospital for serious illness while vacationing in Kuching. He incurred personal medical expenses of RM4,100.
He donate a hamper of goods worth RM300 to an old folk home, an approved institution. He claims child relief in respect of an adopted child, age 12 whom he adopted on 5 October 2019 in accordance with the law.
Pn Yati
Her income for the year ended 31 December 2019 was as follows:
Dividend received on 30 June 2019 | RM10,000 |
Rental income (nett) | 8,000 |
Pn Yati has a son from her previous marriage. The son, age 20 and unmarried commenced his university education in Australia in November 2018. Pn Yati incurred RM6,000 for his education. She also has a daughter from her previous marriage who is aged 15 and unmarried. Pn Yati claimed child relief for her son but not for her daughter. She, however, claimed relief for insurance premium RM2,200 in respect of education for her daughter.
A donation of RM400 was made to the Cancer Foundation, an approved institution.
Required: Compute the tax payable by En Ramli and Pn Yati for the year of assessment 2019. Pn Yati did not elect for combined assessment.
Expert Answer:
Business Math
ISBN: 978-0133011203
10th edition
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
