TAXATION

(REFER TO IRB WEBSITE WHEN TEACHING)

En. Remy is an engineer and his wife, Pn. Mira, is a senior lecturer in a public university.
They are preparing their tax returns for 2019. The couple have three (3) children. The first
child is married and pursuing a Bachelor’s degree in Universiti Sains Malaysia. The second
child is doing her Bachelor’s degree in accountancy in Universiti Kebangsaan, while their
younger child is in a private secondary school. Both of them agreed that En Remy will claim
the relief for all their children. Pn Mira give RM300 monthly to her parents and has decided
to claim for parents’ relief. Below is other information that they have gathered in preparing for
their 2019 tax returns.

En Remy (RM) Pn Mira (RM)

Salary per month 15,000 9,000
Bonus 30,000 4,500
Tabung Haji dividend 15,000 6,550
EPF per month 1,650 -
Life insurance 4,200 2,400
Medical insurance 2,400 2,400
Books and magazines 1,000 1,500
SSPN deposits for 2019 7,500 4,200
Investment in Private Retirement 6,000 -
Scheme (PRS)
Medical expenses for parents 5,500 -
Bought a basic supporting equipment 3,000 -
for his disabled sibling
Purchased a notebook 3,500 -
Zakat paid in 2019 5,000 3,000
Annual tax 5,400 4,450
Donations to an approved institution 3,600 -

Based on the information above, prepare the tax returns for both of them under separate
assessment.
(20 marks)
 TAX RETURNS 2019 for En Remy and Pn Mira /
Remy Mira
Income: RM RM
Salary 180,000 / 108,000 /
Add:
Bonus 30,000 / 4,500 /
Total Aggregate Income 210,000 / 112,500 /
Less:
Donation 3,600 / -
Aggregate of Total Income 206,400 / 112,500 /

Tax Relief:
Individual 9,000 / 9,000 /
Parents 3,000 /
Children:
2nd Child 8,000 /
3rd Child 2,000 /
EPF 4,000 / - /
Life insurance 3,000 / 2,400 /
Education & Med Insurance 2,400 / 2,400 /
Lifestyle (Text books + notebook) 2,500 // 1,500 /
SSPN 7,500 / 4,200 /
PRS 3,000 / -
Parents Med Expenses 5,000 /

Total Tax Relief (46400) 46,400 // 22,500 //

Chargeable Income 160,000 // 90,000 //
Income tax computation:
Tax Rate:
1st RM100,000/1st 70,000 10,900 / 4,600 /
Next RM60,000 @ 24%/next 14,400 / 4,200 /
RM20,000 @ 21%
Total Income Tax 25,300 / 8,800 /

LESS: Tax Rebate:

Individual Rebate - -
Zakat 5,000 / 3,000 /

Tax Payable 20,300 / 5,800 /

Less: Tax deduction (MTD) 5,400 / 4,450 /
Balance of Tax Payable 14,900 // 1,350 //
50 ticks x 0.40=20 marks