Tutorial – Employment Income

1. Sonia Gupta works for Andersons & Associates for the whole year of
2018.Her salary was $15,000 per month. She is provided with an
accommodation by the employer from 1/1/2018 to 31/12/2018.

The employer rented the accommodation for $5,000 each month, including
the value of furniture of $750 per month. The place is semi-furnished.

You are required to compute the gross income from the employment for YA
2018.

2. TA Camel works from 1/1/2019 to 31/12/2019 in Marine Sand Bhd at a

salary of $4,500 per month. Accommodation was provided by the employer
(unfurnished) from 1/4/2019-31/12/2019 at $700 per month.

Compute the value of living accommodation provided under S13 (1) (c).
3. Mr. Vicky was appointed as director of human resources for of Taneka Bhd
(the company) on 1.1.2018. He did not own any shares in the company. In
2018, he received the following remuneration/benefits.

Details RM(per month)

Salary 15,000

Entertainment allowance 3,000

Travelling allowance 2,000

a. A contractual bonus equivalent to two month’s salary.

b. A fully furnished bungalow for which the company paid monthly
rental of RM6, 000 which included RM500 in respect of furniture and
fittings.
c. A new car costing RM160,000 ( A driver employed by the company
was assigned to drive the car)
d. Reimbursement of RM600 per month being monthly salary of servant
employed by Mr. Vicky.
e. Free medical and dental benefits for him and his immediately family
amounting to RM2, 800.
Mr. Vicky incurred the following expenses in 2018:
 RM 30,000 for entertaining the company’s suppliers and
customers
 RM 6,000 on petrol and toll charges for travelling between his
house and office
 RM 16,960 on travelling to meet company’s clients
Required: Compute the gross income/ adjust income from Mr. Vicky’s
employment for YA2018.