Luqman had been working as a consultant for Tyco Bhd since April 2008. On 31 July 2020, Luqman ceased from his employment in order to start his own business in Johor Bharu. During the basis year 2020, he received gross monthly salary of RM5,000. He also received a 5-months bonus in January 2020 for his excellent performance in the previous year.

Luqman travelled and entertained clients regularly. His employer gave him monthly travelling allowance of RM 500 and entertainment allowances of RM400. For the basis year 2020, he claimed RM5,000 and RM3,500 for the actual travelling and entertainment expenses, respectively.

For the basis year 2020, Luqman was also provided with the followings:

(i) A 3-years old car purchased for RM90,000 (cost of the car was RM140,000 when new). Luqman used the car until 31 March 2020 as the car was damaged in a road accident.

(ii) A handphone of which he used up to 30 June 2020. The company paid for the bills which amounted to RM1,000. (iii) A semi-furnished house with air-condition that was shared with another employee of Tyco Bhd. The rateable value of the house alone was RM1,000 per month. Luqman was required to pay RM700 as a rental to his employer. He stayed in the house until 30 June 2020.

(iv) Two overseas leave passages costing RM2,000 and RM2,900 each. Four local leave passages to Kuantan costing RM700, Johor Baru costing RM900, Kuala Terengganu costing RM1,300 and Miri costing RM2,500. The leave passage to Kuala Terengganu included the air-ticket costing RM500 for Luqman's brother.

(v) He made a withdrawal from an unapproved fund set up by the company of RM20,000 which he contributed 60% of the amount.

Required:

Compute statutory employment income of Luqman for the year of assessment 2020.

Answer rating: 100% (QA)

Luqmans statutory employment income for the year of assessment 2020 is RM174700 This compris... View the full answer