Mr. Aathif Khan, an accountant, aged 38 commenced employments with Sanyo Berhad on 1 August 2013. He left the employment of Sanyo Berhad on 30 June 2019 and commenced employment with Khind Berhad on 1 August 2019. His income from the two companies are as follows:

Sanyo Berhad	RM
Salary	12,000 per month
Leave Pay	a month’s salary – for month of July 2019
Gratuity	48,000
Travelling allowance	2,000 per month

A condominium was made available to Mr. Aathif up to 31 July 2019. The condominium could be rented out for RM3,000 a month. From 1 March to 31 July 2019. Mr. Aathif had a colleague staying with him. The condominium is returned to employer on 1 August 2019.

Khind Berhad	RM
Salary	18,000 per month
Bonus	48,000
Travelling allowance	2,000 per month

A fully furnished bungalow was provided by the company from 1 September 2019 and also the services of a maid. The maid has a 2 years contract with the company and received salary of RM2,000 per month. The value of furniture was estimated at RM2,400 a month (fully furnished) and the commercial rate for an unfurnished bungalow was RM6,000 a month. For this bungalow provided by Khind Berhad, Mr. Aathif was required to pay RM300 per month to his employer.

Mr. Aathif was also provided with a BMW (car) cost RM450,000 and fuel with driver on 1 August 2019. He wishes to follow prescribed method.

Mr. Aathif was also entitled to 40,000 shares in the company at a price of RM1.60 per share. The market value of the shares at the it was offered was RM2.30. Mr. Aathif accepted the offer and purchased the shares of Khind Berhad.

Mr. Aathif makes an annual subscription of RM1,200 to his Accountant’s Association. He spent RM26,000 in 2019 for travelling expenses.

Required:

Compute the statutory employment income of Mr. Aathif Khan from his employment for the year of assessment 2019.

Notes:

• You should indicate by the use of the word ‘exempted’, where appropriate, any item referred to in the question for which no adjusting entry needs to be made in the tax computation.
• Use the prescribed value method for benefits in kind.
• use Malaysian taxation

Answer rating: 100% (QA)

Statutory employment income RM Salary 12000 per month Leave pay ... View the full answer