Mr Patel first arrived in Malaysia from India in August 2012 to work for a Malay

ID: 2813582 • Letter: M

Question

Mr Patel first arrived in Malaysia from India in August 2012 to work for a Malaysian company. His wife, Nisha, is employed as a kindergarten teacher in Malaysia. Their twenty-year-old daughter is an undergraduate at a Curtin University in Perth, Australia and their twelve year- old son attends the Sri KDU International School in Kota Damansara. The son’s annual school fees of RM20,000 are borne by Mr Patel’s employer. Nisha gave birth to a baby girl on 1 February 2017.

Throughout the year 2017, Mr Patel was provided with a car (which cost RM180,000 when new), free petrol and a driver. His employer also provided him with free accommodation in a fully furnished apartment which his employer rented for RM5,500 per month (RM500 of this was in respect of the furnishings).

Mr Patel receives rental income in respect of a property he owns in Ipoh.

Information relating to Mr Patel and Nisha’s income and expenditure, including in respect of the property in Ipoh, for the year ended 31 December 2017 is expected to be as follows:

Mr Patel

Nisha

Income

Salary

120,000

36,000

Overtime pay

4,150

Tesco plc United Kingdom dividend received (converted to Ringgits)

9,250

Malaysian dividend (single tier)

936

Interest on fixed deposits in Affin Bank

1,156

Rent from the Ipoh property (gross)

20,000

Expenditure

Medical insurance

5,900

Books and magazines

100

450

Full medical check-up

820

Approved donation in cash

1,360

Donation of art supplies to an approved musuem

800

Mortgage interest on rental property

15,600

Repair and maintenance of rental property

4,800

Quit rent and assessment for rental property

5,000

Nisha does not elect for combined assessment or child relief. Mr Patel claims all the child relief under his name.

The Statutory Tax Deductions for Mr Patel is RM38,000 and Nisha is RM750.

Required:

Compute the tax liability for the year of assessment 2017 of:

Mr Patel[28 marks]

Nisha [10 marks]

Test of Skills at Work Fill up the BE form for the year of assessment 2017 for

Mr Patel [8 marks]

Nisha.[8 marks]