QUESTION 1

Karl Syafiq was employed as an operation manager in Kuala Lumpur with Exxonmobil Production
Inc since 1 April 2014. For the 6 months’ period ended on 30 June 2021, Karl Syafiq received the
following income and benefits-in-kind from his employment:

1. Monthly salary of RM18,000 with monthly entertainment allowance of RM1,000. He incurred

RM3,200 on entertaining the company clients.
2. Bonus of RM16,000 was received on 4 April 2021, relating to the performance in year 2020.
3. A condominium in Kuala Lumpur with annual rental value RM18,000 was provided to him as
living accommodation. He is, however, required to pay RM160 per month to Exxonmobil as
rental.
4. A new car costing RM169,000 was provided to him on 1 January 2020 in carrying out the
employment duties. He was also provided with petrol allowance of RM400 per month.
5. Meal allowance of RM1,200 per month was provided on 1 March 2021 to relief the increased
cost of living in Kuala Lumpur.
6. On 3 February 2021, he was offered 15,000 Exxonmobil’s shares at a price of RM3.00 per
share, the market value then was RM4.20 per share. Karl Syafiq accepted the offer
immediately and exercised the option on 1 June 2021 when the market value was RM4.50
per share.
7. Exxonmobil incurred medical expenses of RM8,500 upon his hospitalization on 8 May 2021.
8. As part of his employment contract, Exxonmobil paid for Karl Syafiq’s holidays trips. The
following is the details of his holidays trip:
Expenses Destination
Singapore Penang
Airfare RM1,400 RM700

Accommodation RM2,400 RM1,200

9. On 30 June 2021, Karl Syafiq resigned from his employment. He was aged 40 years old on 1
January 2021.Exxonmobil paid him the following:
a) Gratuity: RM90,000 including service excellent award of RM4,000
b) He withdrew monies from his Exxonmobil’s unapproved staff retirement fund that is
made up of the following:
i. Own contribution RM30,000
ii. Interest on total contribution RM18,600
iii. Employer’s contribution RM45,000
10. After his resignation, Karl Syafiq commenced his own business on 1 October 2021, KS
Express Enterprise, providing various types of logistics services. The adjusted business
income for the 3 months, October to December 2021 amounting to RM30,000. Capital
allowances for the YA 2021 amounting to RM7,400 on assets used in the business.
11. Karl Syafiq has 3 years old daughter, Medina, with his deceased wife, Manjah goes to a
registered kindergarten for which he pays fees amounting to RM3,600 in total.
12. Karl Syafiq remarried to Mamamia in 2019. Mamamia is undergoing fertility treatment by way
of intrauterine insemination. The treatment costs RM2,500.
13. Karl Syafiq and Mamamia spent RM1,400 for annual medical check-up on complete medical
examination.
14. Karl Syafiq bought a new smartphone costing RM2,200 for his wife in December 2021. He
also spent RM800 on gym membership and RM200 for his daughter’s books.

CONFIDENTIAL
15. Karl Syafiq contributed 11% of his salary and bonus to the EPF while in employment; and
paid life insurance premium of RM3,300 to a Malaysian insurance company for himself and
RM220 monthly for Mamamia’s medical insurance premium.
16. Karl Syafiq contributed RM19.75 for SOCSO and RM7.90 for EIS each month while in
employment.
17. Karl Syafiq had made a Umrah pilgrimage to Saudi Arabia on November 2021. He paid
RM150 for the departure levy and RM560 for the Umrah visa.
18. The monthly tax deduction deducted by Exxonmobil for the 6 months’ period ended 30
June 2021 was RM41,770.10.

Required:
Compute the income tax payable by Karl Syafiq for the year of assessment 2021.

Note:
You should indicate ‘Nil” for which no adjusting entry needed.

(50 marks)

2
QUESTION 2

AstraZeneca Sdn Bhd is a company producing variety of cosmetics product. AstaZeneca Sdn
Bhd closes its accounts on 31 December every year has acquired the following assets:

1. Motor Vehicles
Toyota Vellfire for the use of the general manager was bought on hire purchase terms
as follows:
RM
Cost of Toyota Vellfire 126,000
Deposit paid on 1 October 2019 (30,000)
96,000
Hire purchase interest 11,520 i
Hire purchase amount 107,520

Term of repayment 24 months

The first installment of RM 4,480 commenced on 1 November 2019. The vehicle was
traded in May 2021 at value RM50,000.

2. Ford Ranger 2.0XLT Limited Edition

4-wheel drive for the use of delivery was bought on 1 April 2018 at cost RM120,000.
The car was disposed at RM30,000 on 1 September 2021.

3. Mixer Machine Equipment

Machine was acquired in April 2021. The cost of the machine was RM52,000 and cost
of preparing the site for the installation of the machine was RM7,000.

Required:
a. Compute the capital allowance, balancing allowances or charges (if any) for all the
assets of AstraZeneca Sdn Bhd for the relevant years of assessment up to the year
assessment 2021.
(27 marks)

b. High speed mixer machine was in use for a private purpose prior to being use for a
purpose of a business. Market value and net book value of the machine were RM20,000
and RM25,000 respectively. Determine the qualifying plant expenditure for the machine
and give reason.
(3 marks)

(Total: 30 marks)