Question

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

Computation of Total Employment Income of Mr Aaron for the Assessment Year 2020
					Currency: RM
Director Salary					120,430.00
Car and Petrol
Car	1 Jan to 30 April	(RM 5000*50%*4/12)	833.33
Car	1 May to 31 Dec	(RM 9000 * 8/12)	6,000.00
				6,833.33
Fuel	1 Jan to 30 April	(RM 1500*4/12)	500
	1 May to 31 Dec	(RM 2100*8/12)	1400
				1,900.00
Driver	1 May to 31 Dec	(RM 1500*8)		12,000.00
					20,733.33
Accomodation	Semi-furnished with furniture in the lounge, dining room or bedrooms				840.00
Gardener					3,600.00
Domestic Servent					4,800.00
leave Passage
Pulau Tionam	Domestic in Malaysia- Exempt			0
Pulau Redang	Domestic in Malaysia- Exempt			0
Istanbul	Overseas subject to max 3000	(RM 8310-RM3000)		5310
					5,310.00
Utility, Telephone and Medical Bills		Exempt			-
Entertainment Allowance
Allowance Received	6,600.00
Amount spent	7,200.00
		Exempt as acual expense is more than allowance received)			-
		Total Employment Income (in RM)			155,713.33