Izzani worked with local airlines company as an aircraft maintenance engineer. For year 2020, he was...

  

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Izzani worked with local airlines company as an aircraft maintenance engineer. For year 2020, he was paid RM25,000 monthly salary. However, due to Covid-19 pandemic, the operation of aviation industry has had significant impact, mainly because travel restrictions both locally and globally. Izzani was one of the unlucky employees that has been laid off by the company on 1 May 2020. Since then, utilising his expertise, he worked as a part time consultant with several private colleges that offered aircraft maintenance courses to their students and he earned equal to RM50,000 for year 2020. Izzani married Marina and they have two children named Amelia and Amalina. They first met at the workplace, where Marina was a newly hired stewardess during that time. They were a happy family until Marina was diagnosed with a leukaemia in early 2019. After the discovery, she applied for early retirement and it was endorsed by the Medical Board in the middle 2019. Marina was worried about Izzani's welfare if she could not survived from the leukaemia. She insisted Izzani to marry her close friend, Lily, a single mum of one child. After being persuaded by Marina, Izzani married Lily in November 2019. After married, Lily continue to stay with her 65 years old mother (whom does not have any income) in her own house. Lily's father passed away when she was a teenager. After several treatment, Marina passed away on 11 August 2020. Lily run her own business since five years ago. She started with a wedding planner business that offered services such as wedding concept, venue and catering selection, reception and photography. She also ventured into online business in early 2020 that sell imported prayer mat from Kingdom of Saudi Arabia. The following information has been provided for 2020 tax filing purposes together with original receipts: 1. 12. 3. Insurance policies: At the end of every month, Izzani paid RM400 for life insurance premium, in which the policy was subscribed under Marina's name. In addition, he also paid RM300 for monthly medical insurance premium for himself. Previously, Marina subscribed medical and education insurance policy for their children and she paid in total RM500 as monthly premium. Since she retired, the premium was waived. While for Lily, she spent RM200 monthly for her child's medical insurance policy and RM500 monthly for her life insurance premium. Lily and Izzani deposited RM10,000 and RM3,000 in their children's SSPN accounts respectively. Lily withdrew RM4,000 to pay the tuition fees for the children. Izzani paid RM8,000 for Marina's medical expenses including complete medical examination. Izzani received RM150,000 as a compensation from local insurance company for policy that he took for Marina after her death. 5. 6. 7. 8. 8. Izzani paid a total of RM7,000 for zakah and his monthly tax deduction (MTD) was RM800. On the other hand, Lily paid RM5,000 for zakah. Lily spent RM3,000 to buy artificial leg for her disabled son, Zarif. Lily purchased a smartphone worth RM1,800 for Zarif on 1 July 2020. Besides, she paid monthly internet usage of RM150 for her use and RM120 for her son, which was subscribed under his own name. Izzani spent RM1,400 for internet usage subscription under his name. He paid RM1,500 for a tablet purchased for Amalina on 15 February 2020 and paid RM200 for books purchased by Zarif. Information related to children is as follows: Amelia Amalina Zarif Aged 26 years old, works as a bank officer and married to Daniel in 2018. Her monthly salary is RM5,200. Aged 20 years old, enrolled full-time with Universiti Teknologi Malaysia, a public university located in Johor for bachelor's degree in engineering. Aged 21 years old, enrolled as a full-time ACCA student with Sunway University, a private university in Subang, Selangor. Lily's wedding planner business reported adjusted income of RM100,000. The amount of balancing charge and capital allowance were RM12,000 and RM33,000 respectively. In addition, her online prayer mat business showed adjusted income of RM55,000. Izzani's father had passed away six years ago. Since then, his mother, a housewife aged 70 years old, stayed with Izzani. Further, Izzani still had a good relationship with Marina's mother, even after the death of Marina. This is because her house is near to Izzani's house. Izzani spent RM2,500 each for medical treatment of his mother, Marina's mother and Lily's mother. REQUIRED: Compute the income tax payable for Izzani and his wife for the year of assessment 2020 by way of both separate and joint assessment. Your answer must include every item appeared in the question, indicate 'NIL' where no adjustment is necessary. Izzani worked with local airlines company as an aircraft maintenance engineer. For year 2020, he was paid RM25,000 monthly salary. However, due to Covid-19 pandemic, the operation of aviation industry has had significant impact, mainly because travel restrictions both locally and globally. Izzani was one of the unlucky employees that has been laid off by the company on 1 May 2020. Since then, utilising his expertise, he worked as a part time consultant with several private colleges that offered aircraft maintenance courses to their students and he earned equal to RM50,000 for year 2020. Izzani married Marina and they have two children named Amelia and Amalina. They first met at the workplace, where Marina was a newly hired stewardess during that time. They were a happy family until Marina was diagnosed with a leukaemia in early 2019. After the discovery, she applied for early retirement and it was endorsed by the Medical Board in the middle 2019. Marina was worried about Izzani's welfare if she could not survived from the leukaemia. She insisted Izzani to marry her close friend, Lily, a single mum of one child. After being persuaded by Marina, Izzani married Lily in November 2019. After married, Lily continue to stay with her 65 years old mother (whom does not have any income) in her own house. Lily's father passed away when she was a teenager. After several treatment, Marina passed away on 11 August 2020. Lily run her own business since five years ago. She started with a wedding planner business that offered services such as wedding concept, venue and catering selection, reception and photography. She also ventured into online business in early 2020 that sell imported prayer mat from Kingdom of Saudi Arabia. The following information has been provided for 2020 tax filing purposes together with original receipts: 1. 12. 3. Insurance policies: At the end of every month, Izzani paid RM400 for life insurance premium, in which the policy was subscribed under Marina's name. In addition, he also paid RM300 for monthly medical insurance premium for himself. Previously, Marina subscribed medical and education insurance policy for their children and she paid in total RM500 as monthly premium. Since she retired, the premium was waived. While for Lily, she spent RM200 monthly for her child's medical insurance policy and RM500 monthly for her life insurance premium. Lily and Izzani deposited RM10,000 and RM3,000 in their children's SSPN accounts respectively. Lily withdrew RM4,000 to pay the tuition fees for the children. Izzani paid RM8,000 for Marina's medical expenses including complete medical examination. Izzani received RM150,000 as a compensation from local insurance company for policy that he took for Marina after her death. 5. 6. 7. 8. 8. Izzani paid a total of RM7,000 for zakah and his monthly tax deduction (MTD) was RM800. On the other hand, Lily paid RM5,000 for zakah. Lily spent RM3,000 to buy artificial leg for her disabled son, Zarif. Lily purchased a smartphone worth RM1,800 for Zarif on 1 July 2020. Besides, she paid monthly internet usage of RM150 for her use and RM120 for her son, which was subscribed under his own name. Izzani spent RM1,400 for internet usage subscription under his name. He paid RM1,500 for a tablet purchased for Amalina on 15 February 2020 and paid RM200 for books purchased by Zarif. Information related to children is as follows: Amelia Amalina Zarif Aged 26 years old, works as a bank officer and married to Daniel in 2018. Her monthly salary is RM5,200. Aged 20 years old, enrolled full-time with Universiti Teknologi Malaysia, a public university located in Johor for bachelor's degree in engineering. Aged 21 years old, enrolled as a full-time ACCA student with Sunway University, a private university in Subang, Selangor. Lily's wedding planner business reported adjusted income of RM100,000. The amount of balancing charge and capital allowance were RM12,000 and RM33,000 respectively. In addition, her online prayer mat business showed adjusted income of RM55,000. Izzani's father had passed away six years ago. Since then, his mother, a housewife aged 70 years old, stayed with Izzani. Further, Izzani still had a good relationship with Marina's mother, even after the death of Marina. This is because her house is near to Izzani's house. Izzani spent RM2,500 each for medical treatment of his mother, Marina's mother and Lily's mother. REQUIRED: Compute the income tax payable for Izzani and his wife for the year of assessment 2020 by way of both separate and joint assessment. Your answer must include every item appeared in the question, indicate 'NIL' where no adjustment is necessary.

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Answer Izzanis income tax payable for the year of assessment 2020 Income from employment RM25000 ... View the full answer