Chapter 9 PTX1033/Personal Tax

TUTORIAL

QUESTION 1

a. List THREE (3) expenses that can be claim under life style relief.(3 points)

b. Define the meaning of ‘disable person’. (2 points)

c. Haris and his wife Hajar were resident in Malaysia for the basis year 2021. Below are the
details of Haris and his wife Hajar.

Haris

Employment Income:
Salary RM5,970 per month (net after EPF at 11%)
Bonus Equals to two months salaries

Dividend Income:
Resident Company RM2,400

Royalty Income:
1. Haris is an author of several consultation and motivation books. In year 2021, he
received RM50,000 from the books that he had written.

2. In year 2021, he has translated a book as requested by Ministry of Education. He

received RM13,500 for his work.

Hajar
Business Income: RM
Adjusted income 82,000
Balancing charge 1,900
Capital allowance 10,600
Online Business: RM
Adjusted income 11,500
Capital allowance 1,700
Balancing allowance 3,100
Unabsorbed loss brought forward from 2019 3,800

Rental Income:
House in Kinabutan, Tawau RM
Receipts
Rental for January 2021 – June 2021 10,800
Rental for July 2021 – December 2021 10,800
Rental for January 2022 – March 2022 5,400
Deposit for utilities (refundable) 1,100

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Expenditure incurred in 2021 (per annum) RM

Assessment 1,500
Repainting 1,900
Interest on loan to finance a house 2,300
Fire insurance premium 1,600

Additional information:

Haris (RM) Hajar (RM)

Premium paid on insurance policies
- Personal life - 2,500
- Medical and education (children) 3,500 2,200
Cash donation to an approved institution 2,500 3,000
Purchase of books and journals 1,200 1,000
Parents medical expenses 1,400 5,600
Personal computer - 4,000
Wheel chair for Lizah - 5,100
Sport equipment 700 250
Zakat - 2,200
Skim Simpanan Pendidikan Nasional (SSPN) 6,500 -

Haris and Hajar have four children ( Hajar elected to claim on child relief)

- Halimaton, 24 years old, who is studying in a University in United Kingdom.

- Firusha, 22 years old, married and studying in University of Malaya.
- Lizah, 15 years old,disabled, studying in SMK Kinabutan.
- Misliana, 11 years old, disabled, studying in SRK Kinabutan.

Required:
Compute the income tax payable by Haris and Hajar for year assessment 2021 assuming they
did not elect for a joint assessment. (30 points)

QUESTION 2

Syafiq Harris is a tax resident and works as a manager in a management firm. His wife Shaha a
resident in the basis year 2021. The following were the income of Syafiq Harris and his wife:

Syafiq Harris
Employment : RM128,160 per year after deducting 11% EPF
Interest : RM10,800 on 18 months fixed deposit with Bank Islam Bhd
Dividend : RM2,500 from New Venture Co. (pioneer status company)

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Shaha
Business : An audit firm in Kajang of which the details were as follows:
RM
Gross income 150,000
Allowable expenses 80,000
Balancing allowance 8,000
Balancing charge 7,000
Capital allowance 6,000
Dividend : RM7,000 from Xeron (M) Bhd (single tier)
RM5,200 from Lembaga Tabung Haji Malaysia
Royalty : RM23,000 from writing biology book published by a recognized publisher

Additional information:

1. Life insurance premium paid were as follows:

Premium paid (RM) on the life of paid by policy amount (RM)

1,500 Syafiq Harris Syafiq Harris 150,000

2,000 Shaha Syafiq Harris 230,000

2. Donations (approved institution ) and zakat paid by Syafiq Harris and his wife
Donations (RM) Zakat (RM)

Syafiq Harris 1,200 3,050

Shaha 3,100 2,800

3. Syafiq Harris and Shaha were blessed with four children :

Shamsul, age 23, was studying at University Utara Malaysia.

Syila, age 21, account clerk at an architect firm

Syaiful, age 18, student at Sekolah Menengah Sains Kajang

Syazwa, age 10, was attending primary school at Kajang.

4. Shaha spent RM1200 for a full medical examination in April 2021. The examination revealed
that she is suffering a cancer. As a result she spent additional RM4,500 in 2021 for a medical
treatment at KPJ Kajang.
5. Syafiq Harris and Shaha spent RM3,500 and 2,890 respectively on their parents medical
expenses.
6. Syafiq Harris deposited RM3,500 into Skim Simpanan Pendidikan Nasional for Syazwa in
2021.
7. During the year Syafiq Harris and Shaha spent RM 1,000 and RM1,600 respectively on
reading material
8. Both elected for separate assessment

Required:

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Compute the income tax payable by Syafiq Harris and Shaha for the year assessment 2021.

QUESTION 3

Encik hafizul is a senior lecturer in UiTM, Shah Alam , whilst his wife Puan Amna is a tax consultant
in Earns and Young. Both of them are tax resident in Malaysia for YA 2021. They are blesses with
five children:
Hakim : 24 yeras old, married and a full time stdent at London School of Economic.
Alia : 21 years old, single and studying in Universiti Islam Antarabangsa
Haina : 19 years old, single and studying full-time in UiTM Melaka
Hanan : 17 years old, schooling at MRSM Jasin, Melaka
Amira : 5 years, physically disabled.
Besides deriving employment income, both Encik Hafizul and Puan Amna have their own business.
Below are the incomes received by them for the basis year 2021:
Encik Hafizul
1. Monthly salary (gross) RM8,500. No EPF is deducted from this salary. However Encik Hafizul
made zakat deduction of RM150 per month.
2. Home-stay business:
Adjusted income RM70,000
Balancing charge RM10,000
Capital allowance RM15,000
Unabsorbed loss brought forward from 2018 (RM5,600)
3. Business in Thailand. Statutory income remitted RM8,000
4. Interest income from fixed deposit in Public Bank RM1,200 and from saving account in bank
Islam RM200.
5. Encik Hafizul received royalty of RM24,000 for the translation of books approved by Dewan
Bahasa dan Pustaka.
Puan Amna
1. Monthly salary after deducting 11% EPF is RM6,675
2. Cyber-cafe business :
Adjusted loss (RM4,000)
Balancing charge RM2,000
Capital allowances RM3,000

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3. Dividend income from Suria (M) Bhd (single tier) amounting to RM2,120
4. Puan Amna has a house in Temerloh which was rented out since April 2016. The following
information is related to the house:
Monthly rental RM700
Advertisement cost RM150
Repair RM450
Fire insurance per annum RM2,400
Installation kitchen cabinet RM5,000
Additional information:

Encik Hafizul Puan Amna

i. Donations Cash donation of RM3,000 and Cash donation to Selangor
hamper worth RM200 to Rumah State Library RM1,000
Bakti Selangor (approved institution)
ii. Reading material Spent RM1,200 to buy reference Spent RM600 to
books and reading material for subscribe newspaper
his lecture
iii. Wheelchair Bought for his child , Amira costing
RM3,900 -
iv. Personal computer - Bought personal computer
of RM2,400 to replace her
old laptop
v. Medical expenses Father’s surgery: RM4,800 -
Haina complete medical examination
RM600
vi. Insurance Paid medical insurance premium of Life insurance premium paid
RM5,000 for his children RM1,000 for her life
vii. SSPN - Deposits for child into SSPN is
RM5,600
Required:
Compute the income tax payable by Encik Hafizul and Puan Amna for the year assessment 2021.

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QUESTION 4

En. Kamal and his wife Puan Zee were residents in Malaysia for tax purposes in year of
assessment 2019 and had the following sources of income.
En. Kamal
Business 1 Business 2
(RM) (RM)

Adjusted income/(loss) 158,400 (8,000)

Balancing charge 1,600 -
Capital allowance 10,820 3,150
Dividends:
Renong Bhd (Malaysia - net) RM3,450
Jurong Ltd (Singapore) - not remit to Malaysia RM4,230

Puan Zee
Monthly employment income (after EPF 11%) RM4,005
Royalty from writing books
(Requested by Ministry of Education) RM12,000
Royalty from translation books RM10,000
Interest income from Al-Rajhi Bank RM2,000
Interest income from Malayan Bank Bhd RM4,000

Additional information:
i. Adjusted losses carried forward from previous years was RM10,000. (Related to Business
1).
ii En. Kamal owns a house in Taiping and was rented out since 2007. Information on
house was as follows:
Rent (monthly) RM1,500
Quit rent RM990
Insurance on fire RM600
Installation of aircond RM4,000
Renovation RM2,540
iii. En. Kamal paid medical expense for his parent and parents in law which amounted to
RM4,500 and RM3,000 respectively.

iv. En. Kamal expended RM8,500 for his son, Khalid’s who is suffering from kidney disease.

v. Puan Zee paid the following amount for insurance:

a. Life insurance (own life) RM5,000
b. Medical insurance RM4,900

vi. The following information related to the couple’s children:

a. Aiman, 26 years old, physically disable, studying in UMP.
b. Zawia, 24 years old studing at Kolej Bestari, Terengganu
c. Nani, 19 years old studing at Ehsan College
d. Khalid, 10 years old, studying at Sekolah Agama Al- Amin

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vii. En. Kamal and Puan Zee both subscribed to magazines of theirs interest and spent
RM1,200 and RM900 respectively.

viii. En. Kamal purchased a new computer for the family’s use costing RM4,800 to replace one
that was purchased more than 4 years ago. He also paid RM1,200 and RM450 for sport
equipment and 2 pieces of jersey respectively.

ix. En. Kamal made a deposit into Nani’s SSPN account for RM1,000.

x. Puan Zee spend RM3,300 for her mother’s care.

xi. Puan Zee made the donation RM1,550 to Persatuan Bulan Sabit Merah (approved
institutions) during the year.

xii. En. Kamal and Puan Zee paid zakat RM6,800 and RM400 respectively.

Required:

a. Compute the income tax payable by En. Kamal and Puan Zee for the year of assessment
2021 assuming they did not elect for a joint assessment.(30 points)

b. State the THREE (3) situations where rebates can claimed. (3 points)

c. Define the meaning of “disabled person” under section 18. (2 points)

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