Question $4$

Mr$.$ Lee, $45$ years old was working as a producer with Media Utama Sdn Bhd since $7$ July $2007.$ He then resigned from his employment on $28$ February $2020$ to focus on his own business, Tree House Production that produce animation videos for children. He received a gross salary of RM$8,000(11\%$ EPF contribution$)$ per month from his employment and upon resignation, he was granted with a gratuity of RM$90,000.$ Meanwhile, listed below is the information of his business for the year ended $31$ December $2020.$

Adjusted Loss $($RM$55,000)$

Capital allowance RM$4,000$

Balancing Charge RM$5,000$

Tree House Production is operating at a shop house in Kuantan. Mr$.$ Lee occupied the first floor, while the second floor is rented out to a tenant for RM$780$ per month. In $2020,$ Mr$.$ Lee incurred RM$500$ to repair the second floor. He also has paid RM$400$ quit rent and assessment for the shop house, where $50\%$ is for the second floor. Mr$.$ Lee also invested in shares of various Malaysian companies, where he received dividends amounted to RM$4,000$ in $2020.$

Mr$.$ Lees wife, Dr Ji Soon Woo, a Korean citizen is a pediatrician cum assistant managing director at Kuantan Specialist Hospital. She was paid a salary of RM$27,000$ per month. She was provided with a fully furnished house at Kota SAS Kuantan with a define value of RM$4,000$ per month $($inclusive of RM$1,000$ for furniture$).$ Dr Ji is a member of Malaysian Medical Association $($MMA$)$ and paid annual subscription of RM$500$ to the association in $2020.$ Other benefits received from her employment in $2020$ was as follows:

$1.$ Medical benefits for herself and children amounted to RM$4,200.$

$2.$ Paid vacation to Australia amounted to RM$15,000($flight ticket$).$

$3.$ Dr Ji was offered an option to purchase $4,000$ shares of the company on $5$ January $2020$ at RM$3$ per share although the current market price was RM$5$ per shares. Dr Ji accepted the option and exercised $3,000$ shares on $2$ October $2020$ when the price was RM$7$ per share.

The couple only have one son, Joon Young $(17)$ who is studying at an International School in Kuantan. Dr Ji paid RM$5,000$ per month as the tuition fees, but RM$4,000$ is reimbursed by her employer. However, in $2019,$ the couple adopted a disabled child, Jenny, $5$ years old. Jenny was sent to a special care centre $($approved institution$),$ where the fees of the centre is RM$500$ per month $($paid by Dr Ji$).$ In $2020,$ Dr Ji has donated RM$5,000$ in cash to the centre. Dr Ji also purchased a wheelchair amounted to RM$1,500$ for Jenny in $2020.$ Other information related to the couple in $2020$ are as follow:

$9.$ Mr$.$ Lee paid medical expenses amounted to RM$4,000$ for her mothers medical treatment.

$10.$ Mr$.$ Lee obtained life insurance for himself and education insurance for Jenny. The premium contributed for his life insurance is RM$300$ per month, while contribution of education insurance for Jenny is RM$170$ per month. Meanwhile, Dr Ji purchased life insurance policy for herself amounted to RM$250$ per month and both medical insurance and education insurance for their son amounted to RM$150$ per month and RM$160$ per month respectively.

$11.$ Dr Ji has conducted a complete medical examination for herself amounted to RM$400$ in $2020.$

$12.$ Dr Ji helps the Ministry of Education to translate Korean medical books into English and received a royalty of RM$40,000$ in $2020.$

$13.$ Both Mr$.$ Lee and Dr Ji incurred RM$5,000$ and RM$6,000$ respectively on allowable lifestyle expenses $($receipts provided$)$ in $2020.$

$14.$ Both Mr$.$ Lee and Dr Ji contributed RM$57$ and RM$180$ to Social Security Organisation $($SOCSO$)$ respectively in $2020.$

Required:

$($a$)$ Assuming Dr Ji did not elect for a combined assessment, determine the tax payable$/$repayable of Mr$.$ Lee and Dr Ji for the year of assessment $2020.$ Dr Ji elected to claim all child reliefs and was a resident in Malaysia in $2020.$