Question

Income Tax

Employment Income - Computation

Mr. Aaron is a director of Geo Bhd, a controlled company, from which he received director's fees of RM120.430 for the year ended 31 December 2020. The following benefits were also provided by the company to Aaron for the year of assessment 2020: a. A free use of a six-year-old car that cost RM133,000 when new, together with fuel for the period 01 January 2020 to 30 April 2020. From 1 May, 2020 he was provided with a company car costing RM199,000 with fuel and a driver who is paid RM1,500 per month. b. Accommodation in a semi-furnished apartment with furniture in the lounge, the rental which was RM4,000 per month (including the rental of furnishing ammounted to RM900) paid by the employer. Utility expenses for the accommodation of RM2,500 is also paid by the employer. c. A part time gardener who is paid RM450 per month and a domestic servant who is paid RM600 per month. d. Three leave passage to Pulau Tioman, Pulau Redang, and Istanbul costing RM1,340, RM3,100, and RM8,310 for each trip, respectively, e. Utility bills, telephone bills and medical benefits amounted to RM2,640, RM240 and RM940, respectively. f. Entertainment allowance amounted to RM6,600 and Aaron spent RM7,200 to entertain clients. Based on the above information you are required to compute the total employment income of Mr. Aaron under Section 4(b) of ITA 1967 for the year of assessment 2020.

Answer 1

Calculation of Total Employment Incomeof Mr Aaron

Fee of the Year.   

calculation of Total Employment Income of Mr. Aaron. RM 1,20,430 • Fee for the year 9) Car 1. Car Perks cost (133,000 RM) a) car (.5000 4 2 ) b) Fuel Cisoox 42 ) 1667 500 2. Car cont (1,99,000 RM) a) Car (7000 4,667 b) Fuel () Driver 1,200 (18000 & (ISO008) 12,000 RM 20,034 11s = 19,055 RM 10,800 RM 29,855 b) Reut Free Accommodation Value of unfurnished RFA + Reut of furnishing w.e. C Actual Reut or isy of employees se Actual Reut (3100812 ) whichever isy of salary ( Salary + Allowane 1st of (1, 20,630 + 6600) 19,05s Lexx Add: Reut of furnishing utility Cusoxta) Gardner C 450x12) Domestic seruaut (Good12) Utility Bills Telephone Bill medical benifite Entertainment Allowances - Leave Partage (13,40 t 3100+ 3,310) RM 2,500 5,400 7,200 2,640 २५० guo 6,600 неи с Employment Income of Mr. Aaron on = 2,08,589 -