Required: Draft a letter attaching a solution for the following issues :Part A

(a) i] Compute the income tax (if any) payable by Encik Kabali for the year of assessment 2018, clearly showing Aggregate Income/Total Income/Chargeable Income Tax Liability/Tax Payable.

All the items listed in the questions must be presented whether they are taxable or not. Including explanations for life style relief that you need to identify in the given scenario above.

     ii)  If the biological mother agrees to breast feed Zaini for YA 2018 with the help of a breast feeding equipment, provided the cost is incurred and paid by Encik Kabali. The baby will stay at the child care centre during the day time where the biological mother works.

           Explain the necessary conditions that is required to claim relief  for breast feeding equipment, child care relief and whether Encik Kabali or Puan Kabalia eligible for such relief.

iii) Encik Kabali also wish to know the circumstances in which he can receive gratuity without paying tax. Explain and advice the relevant factors.

(b)  Discuss the criteria and significance of determining the residence status of Encik Kabali for Malaysian income tax purpose.

Part B

(c) Encik Kabali due to his busy schedule did not submit his Retun Form BE (Borang BE) on time and now seeks your assistance in submitting Borang BE and wants to know due date for submission and penalty for non compliance and when to use  Return Form B (Borang B).

Your are required to fill up the return form ‘Borang BE’ for the year of assessment 2018 using all the relevant data from (a) above. If no information is given in respect of any data, you need to assume and create all the relevant data that is necessary as an input into the Borang BE.

You need to clearly and state your assumptions used in a form of a report. (For example address/I.D. number etc). Borang BE YA 2018 can be downloaded from government.