Question

Puan Bella has been working with UITM as a Senior Lecturer since 1 October 2006.

Beginning 1 January 2019, she receives salary and allowances of RM10,500 and RM1,500 per month respectively. On 30 April 2019, she reaches her retirement age of 56 years old. Effective from 1 May 2019 she will receive a monthly pension of RM5,750. Upon retirement, she received a payment of 150 days replacement leave amounting to RM45,000. She also received an RM200,000 gratuity payment.

On 1 June 2019, Puan Bella joined TWIS Sdn Bhd as a Senior Manager. Details of her employment remuneration benefits from TWIS Sdn Bhd for 2019 are as follows:

RM

	RM
Salary (net, after deducting EPF contribution of 11%)	4,450 per month
Bonus	1/2 month salary
Medical bills paid by the employer	950
Entertainment allowance	700 per month
Personal computer for business use	6,000
Gardener (hired and paid by the company) – 1 July 2019	350 per month
SOCSO contribution by employer	1,200

Other information:

i) For the first month of her employment, Puan Bella was put up in a hotel. The room

rate is RM150 per night. Puan Bella then moved into a bungalow (unfurnished)

provided by the company on 1 July 2019. The rateable value of this accommodation is

RM2,500 per month. Rental of RM1,000 per month was paid by Puan Bella to the

company.

ii) A motor car was acquired by the company at a cost of RM105,000 about six years ago. This car was provided to Puan Bella together with a driver who was paid RM400 per month. The company also provided a fuel card to Puan Bella.

iii) In December 2019, as a reward for successfully securing a big project, the company

granted a 15 days trip to Bandung to Puan Bella and her family (husband and 2 sons).

All expenses amounting to RM3,200 per head (inclusive of air ticket RM1099) was borne

by the company.

iv) Reimbursement of expenses in relation to:

    (a) Servant’s salary of RM3,600

    (b) Business trips visiting customers and suppliers RM8,000

iv) Puan Bella produced entertainment bills totaling RM11,300 which were fully

expended in carrying out her duties as a Senior Manager of the company.

Required:

Calculate the adjusted employment income of Puan Bella for the year of assessment 2019.