Fernandez, an expatriate was employed as the CEO of Forever Gain Bhd at a monthly salary of RM20,000, employment ceased on 30$30$ November 2022.

 

He did elect to contribute to EPF and SOCSO at the stipulated rate.

 

 From 1$1$ January 2022$2022$ to 30$30$ November 2022, the company provided following benefits to Fernandez: 

 

 −$-$ Entertainment allowances RM85,000

 

 −$-$ Car and fuel benefits: 

 

 Cost of fuel provided RM9,000

 

 Cost of new car RM220,000

 

 Driver employed by Fernandez with monthly salary of RM1,000 reimbursed by the company. 

 

 −$-$ A domestic servant employed by the company at a monthly salary of RM800. 

 

 −$-$ Living accommodation provided by the company: 

 

 Monthly rental RM 15,000 for the house; and 

 

 Monthly rental of RM3,000 for furniture, air conditioner and kitchen equipment. 

 

 −$-$ Other benefits provided by the company: 

 

 School fee RM18,500 for his adopted child aged ten. 

 

 Corporate membership with entrance fees of RM20,000 and subscription fees RM3,000 during the 

 

year.

 

 Fernandez, who is not married, made the following claims in his tax return for the year of assessment 2022 

 

 −$-$ RM95,030$0$ incurred on entertaining companys clients. 

 

 −$-$ RM6,900 incurred on maintaining a child ($($below 18 years old)$)$ legally adopted by him 

 

 −$-$ RM6,395 insurance premiums on his medical insurance policy 

 

 −$-$ RM30,000$\mathrm{}\mathrm{}\mathrm{}\mathrm{}\mathrm{}$ on approved cash donation; and 

 

 −$-$ RM5,000$\mathrm{}\mathrm{}\mathrm{}\mathrm{}$ incurred on buying a new computer. 

 

Required:

Compute the chargeable income and tax payable of Fernandez for year of assessment 2022$\mathrm{}\mathrm{}\mathrm{}\mathrm{}.$ 

Answer rating: 100% (QA)

To compute the chargeable income and tax payable for Fernandez for the year of assessment 2022 we ne... View the full answer