TAR UC (FAFB) – RAC Year 3 (ACADEMIC YEAR 2022/2023)

BBFT3014/BBFT3013 ADVANCED TAXATION

Tutorial 12: Deceased individual & Estate

Suggested answer to Q1

(a) Tax Computation for the Year of Assessment 2022

Alan (deceased) Executors, Estate of Alan
1.1.2022 to 30.9.2022 1.10.2022 to 31.12.2022
RM RM
Employment (Malaysia)
Salary 80,000
Bonus 30,000
Gratuity (due to illness, Para. 25 of Sch. 6) Exempt
Compensation (due to illness, Para. 15 of Sch. 6) Exempt
110,000
Dividend (Malaysia)
Single tier dividend rec'd on 10.1.22 Exempt
- (Para. 12B of Sch. 6)

Interest (Malaysia)
Interest received on 1.4.2022 Exempt Interest (Malaysia) received on 10.10.2022 50,000
- IT (Exemption) No. 7 Order 2008
Aggregate income 110,000 50,000
Less: Donation in cash to M'sian Govt. 10,000 Annuity (RM10,000 x 2) 20,000
Cash distribution to his 2 sons (note 1 below) 0
Total income 100,000 30,000
Less: Personal reliefs
Self 9,000 Special relief 9,000
EPF (Max) 4,000 (Alan died domiciled in Malaysia)
Child relief (Alvin) 8,000
Chargeable income 79,000 21,000

Tax payable
Tax on RM70,000 4,400.00 Tax on RM20,000 150.00
Next on RM9,000 @ 21% 1,890.00 Next on RM1,000 @ 3% 30.00
6,290.00 180.00
Notes:
1 There is no deduction for the distributions of totalled RM200,000 (RM100,000 x 2) to both his sons,
Albert and Alivin which are capital in nature.
Both the receipients, Albert and Alivn will not be subject to tax as it was capital in nature.

2 The tax rebate of RM400 is given to a resident individual with a chargeable income not exceeding RM35,000 and
an executor is not an individual, hence the tax rebate of RM400 is not given.