Mr. Jerome is a managing director of Tiboru System Sdn Bhd. He had contribute RM77,500 to start his own business – book shop business on 1.9.2019. His wife, Ms Joselyne, teaches at a kindergarten and during her spare time, she does translation of literary work for the Ministry of Education and annual income of it is RM20,000. They have two children, Ann (20 years old) who is studying accountancy degree programme with Murdoch University on a scholarship basis, whereby the University agrees to pay all of her tuition fees and living expenses; and Joe (16 years old) who is studying at a secondary school in Singapore.

 

Mr. Jerome has provided the following additional information of the year ended 31.12.2019.

	Mr. Jerome RM	Ms. Joselyne RM
Salary	42,000	40,000
Gross dividend income - Malaysia	20,000	-
EPF Employer’s portion Employee’s portion	5,040 4,620	4,800 4,400
SOCSO	70	70
Life Insurance Capital sum assured Premium paid	50,000 1,200	20,000 2,000
Children’s maintenance expenses Ann Joe	15,000 11,600	- -
Donation to approved institutions Cash Television set	200 1,000	600 -
Medical expenses (serious disease) incurred in respect of: Mr. Jerome and his family Mr. Jerome’s parents Ms. Joselyne’s parents	1,250 800 -	- - 2,000
Purchase of books / magazines for children	700	900
The parents and parents-in-law of Mr. Jerome are still alive (all are above 60 years old).

 

 

Mr. Jerome further informed you that he has receipt for purchasing the books / magazines for only RM600.   The profit and loss account of Mr. Jerome’s book shop business for the period from 1.9.2019 to 31.12.2019 is as follows:

	RM	RM
Sales of books and stationery	15,000 5,000 ----------   18,000 1,200 750 4,100 100 50 700 -------
Cash terms
Credit terms		20,000
Less: Expenses:
Cost of sales
Salary
Depreciation
Rental of shop
Fine for late registration of business
Entertainment – to book distributors (related to sales)
Other general expenses (all allowable)		(24,800)
Loss for the period		----------- (4,800)
		=====
Capital allowances on qualifying expenditure		1,200

 

Required:

Based on the information above, compute the tax computation of Mr. Jerome and Ms. Joselyne for Year of Assessment 2019, on the basis of:

separate assessment

joint assessment in the name of Mr. Jerome

Answer rating: 100% (QA)

We will compute the tax computation for Mr Jerome and Ms Joselyne for Year of Assessment 2019 based ... View the full answer