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Actual Information Puan Rozana is a lecturer in Tuanku Sultanah Bahiyah Polytechnic.

Pn Rozana and her husband, Encik Faud are Malaysian citizen. a) The following are the details of their source of income: Pn. Rozana i. ii. iii. iv. v. Gross salary Bonus Allowances living Allowances home Allowances government services Per Year (RM) 43,200 750 2,400 3,000 3,600

b) Pn. Rozana paid RM 500, RM 300 and RM 400 for her fathers, sons and personals medical bills respectively. c) She paid RM 80 per month for her broadband fee. d) Pn. Rozana and En. Faud have three child all study at primary school. e) Pn. Rozana paid RM 2,400 for personal life insurance. Additional Information En. Faud Encik Faud age 45, an accountant of Por Ooi Management (SP) Sdn. Bhd. He start work at 15 March 1990, he was retired on 31 December 2010. He was paid gratutity amounted RM 160,000 for the retirement. a) Detail of his income received in the basis year 2010 are as follows: RM i. ii. iii. iv. v. Net salary Servant (company paid) Driver (company paid) Entertainment allowance Dividend (from Amanah Saham Malaysia) 44,856 450 (per month) 550 (per month) 3,500 (per month) 4,000

b) En. Faud claimed that 2/3 of the entertainment allowance had been spent on entertainment had been spent on entertaining the companys client. c) He make a donation to approved institutions with cash RM 3,000. d) Received from unapproved fund RM 18,000, include 25% his contribution and 5% interest. e) He paid zakat of RM 600. f) He purchased news paper of RM 450 for whole year.

g) He bought three bicycle for his children of RM 110 each.

h) He paid RM 500 for his membership fees to Malaysia Institute of Certified Public Account, regarding to his duty.

Pn. Rozana a) Pn. Rozana received the following from Polytechnic during the basis year 2010: RM Travelling tickets : i. Leave passage : Australia 3,500 4,000 1,000 500 300 8,500 (inclusive of 500 for furniture)

ii. Office purpose : Pulau Penang Melaka Kuantan iii. Food allowance iv. Rental of fully furnished

b) Dental expenses for Pn. Rozana and her family at RM 2,300. c) Pn. Rozana purchased a laptop for personal use at year 2008 and also purchased a computer for her elder son used at this year. d) Pn. Rozana elected to claim wholly for child relief. e) Taxable dividend (net) from a company in kulim at cost RM 18,000. f) The employer was paid RM 1,000 in respect of water electricity.


EMPLOYEMNT INCOME Section 4(b) Section 13(1)(a) Gross Salary Gratuity Bonus Living allowance Home allowance Government services allowance Entertainment allowance Section 13(1)(b) Dental expenses Food allowance Travelling : Australia Pulau Penang Melaka Kuantan Servant Driver Furniture Water and electricity Section 13(1)(c) Define value (RM8000x12 = RM96,000) @ 3% x RM 52,950 = 1588.50 Section 13(1)(d) Employee's contribution Employer's contribution Interest Gross income Adjusted : Entertainment Member fee Adjusted income Section 4(c) Dividend Statutory Income AGREGATE INCOME

43,200 750 2,400 3,000 3,600 52,950 Exempted Exempted Exempted Exempted Exempted Exempted 3,360 1,200 4,560

50,400 32,000 42,000 124,400 4,800 6,600 11,400

43,200 750 2,400 3,000 3,600 52,950 Exempted Exempted Exempted Exempted Exempted Exempted 3,360 1,200 4,560

1,589 59,099 59,099 24,000 24,000 83,099

Exempted 12,600 900 149,300 (28,000) (500) 120,800 Exempted 120,800 -



59,099 24,000 24,000 83,099

AGREGATE INCOME Donation ( RM 95,600 x 7% = RM 6,692) TOTAL INCOME En Faud's total income aggregated with Pn Rozana AGGREGATE TOTAL INCOME RELIEF: Personal Spouse Medical expenses for parents Medical expenses for personal and child EPF Life Insurance premium - wife Expenses on a complete medical examination Broadband subscription Computer News paper Sport equipment - bicycle Child CHARGEABLE INCOME Tax on first RM50,000.00 Tax on first RM 100,000.00 Tax on balance of RM 18,783.00 at 19% Tax on balance of RM 2,956.00 at 26% Tax on balance of RM 77,739.00 at 26% Total Income Tax

83,099 83,099

120,800 (3,000) 117,800

83,099 83,099 117,800 200,899

(9,000) (500) (700) (456) (160) (500) (3,000) 68,783.00 3,325.00

(9,000) (5,544) Exempted Exempted (300) 102,956.00

(9,000) (3,000) (500) (700) (5,544) (456) (160) (500) Exempted Exempted (300) (3,000) 177,739.00

14,325.00 3,568.77 768.56


20,212.14 6,893.77 15,093.56 34,537.14

Total Tax Charged Dividend taxable (section 110) Zakat Total Payable / (Tax Repayable)

6,893.77 (6,000.00) 893.77

15,093.56 (600.00) 14,493.56

34,537.14 (6,000.00) (600.00) 27,937.14

Conclusion Join Assessment Or Separate Assessment

a) Separate assessment does not always result in minimum tax. This is

because in a joint assessment, wife/ husband relief is available to the husband/ wife to offset the wifes/ husband's income.
b) Where the husband's income is substantially less due to lower taxable

income or business losses, it would be advisable for wife to elect joint assessment to maximise the claim of relief. The election for joint assessment is not perpetual but on a year to year basis.
c) Based on question Puan Rozana should elect Separate assessment.

The separate assessment would result in a lower income tax total payable (RM 15,387.33) as compared to separate assessment with net tax payable of RM 21,073.14.