Mr. Sam is a Malaysia resident employed as a general manager by Lotus Sdn Bhd for...

 

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Mr. Sam is a Malaysia resident employed as a general manager by Lotus Sdn Bhd for the last three years. For the years ended 31 December 2020 he received the following employment income and benefits from the company: RM Salary per month Bonus equivalent to three months' salary Entertainment allowance per month Parking allowance 15,000 45,000 3,000 3,600 Mr. Sam was provided a new car worth RM180,000. The employer provided medical and dental care amounting to RM12,000 for him family. He was given a fully furnished bungalow house was to reside. The rental of the bungalow house was RM5,000 (of which RM1,000) was for the furniture. He incurred official entertainment expenditure of RM 7200 on behalf of the company. Mr. Sam was given the option to buy 3000 units of the company's shares at the price of RM3 per share on 10 March 2020. The market value of the share was RM4.50 per share. He exercised his option on 28 August 2020 when the market value of the share was RM5 per share. Mr. Sam owns a house in Penang, and he rented it out for RM1,500 per month. The tenant vacated the house at the end of April and a new tenant came for the same rent in July. The total amounts shown in the rental receipts for the following months are as follows. Months January 2019 to April 2019 May 2018 to June 2018 July 2019 to December 2019 RM 6,000 Nil 9,000 The house vacant for two months during which Mr. Sam spent RM 3,000 for painting and repair works. He also spent RM12,000 extending the kitchen. The assessment and quit rent cost RM720 (including RM20 for late payment of quit rent). Mr. Sam paid housing installments of RM20,000 of which half went towards interest. He pays fire insurance of RM 1200 per annum. Mr. Sam has a wide portfolio of investments and he received: RM Single tier dividends Interest from fixed deposits in Public Bank 3,600 3,000 Mr. Sam contributed 11% of his salary to the EPF. He signed up to pursue a Master in Business Administration degree at Monash University Sunway Campus and paid RM15,000 for his first semester fees. Mr. Sam is married to Grace who is home maker. They have three children aged 23, 19 and 14. His eldest daughter Deborah got married in July 2018. His elder son John is pursuing a medical degree in Monash University Sunway Campus and is fully supported by Mr. Sam. Mr. Sam bought a and purchased books for RM1,200 during the year which substantiated by receipts. He wants to practice a healthy lifestyle and hence purchased a treadmill machine for the family for RM3,999. Required: Compute the chargeable income of Mr. Sam for YA 2020. (TOTAL 25 MARKS) Mr. Sam is a Malaysia resident employed as a general manager by Lotus Sdn Bhd for the last three years. For the years ended 31 December 2020 he received the following employment income and benefits from the company: RM Salary per month Bonus equivalent to three months' salary Entertainment allowance per month Parking allowance 15,000 45,000 3,000 3,600 Mr. Sam was provided a new car worth RM180,000. The employer provided medical and dental care amounting to RM12,000 for him family. He was given a fully furnished bungalow house was to reside. The rental of the bungalow house was RM5,000 (of which RM1,000) was for the furniture. He incurred official entertainment expenditure of RM 7200 on behalf of the company. Mr. Sam was given the option to buy 3000 units of the company's shares at the price of RM3 per share on 10 March 2020. The market value of the share was RM4.50 per share. He exercised his option on 28 August 2020 when the market value of the share was RM5 per share. Mr. Sam owns a house in Penang, and he rented it out for RM1,500 per month. The tenant vacated the house at the end of April and a new tenant came for the same rent in July. The total amounts shown in the rental receipts for the following months are as follows. Months January 2019 to April 2019 May 2018 to June 2018 July 2019 to December 2019 RM 6,000 Nil 9,000 The house vacant for two months during which Mr. Sam spent RM 3,000 for painting and repair works. He also spent RM12,000 extending the kitchen. The assessment and quit rent cost RM720 (including RM20 for late payment of quit rent). Mr. Sam paid housing installments of RM20,000 of which half went towards interest. He pays fire insurance of RM 1200 per annum. Mr. Sam has a wide portfolio of investments and he received: RM Single tier dividends Interest from fixed deposits in Public Bank 3,600 3,000 Mr. Sam contributed 11% of his salary to the EPF. He signed up to pursue a Master in Business Administration degree at Monash University Sunway Campus and paid RM15,000 for his first semester fees. Mr. Sam is married to Grace who is home maker. They have three children aged 23, 19 and 14. His eldest daughter Deborah got married in July 2018. His elder son John is pursuing a medical degree in Monash University Sunway Campus and is fully supported by Mr. Sam. Mr. Sam bought a and purchased books for RM1,200 during the year which substantiated by receipts. He wants to practice a healthy lifestyle and hence purchased a treadmill machine for the family for RM3,999. Required: Compute the chargeable income of Mr. Sam for YA 2020. (TOTAL 25 MARKS)

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