Solution for QID #30326: Ibrahim Edogan is a 55 year old Turkish citizen settled in t | StudyHelpMe

Ibrahim Edogan is a 55 year old Turkish citizen settled in the island of Penang under the 'Malaysia: My Second Home' programme since 2012. Ibrahim is a well-known author who likes the Malaysian food and climate. His wife, Azlina Hameed is a Malaysian citizen and she is currently a homemaker. She opted for early retirement from the government service due to ill-health and receives a pension of RM2,300 a month. On 12 February 2012, Ibrahim brought his savings into Malaysia which was equivalent to RM5 million. He bought a condominium in Gurney Drive, Penang for RM1.2 million. He also purchased shares in public-listed companies and unit trusts in Malaysia, United Kingdom and Singapore. He purchased an exclusive office unit in Gelugor, Penang with an existing tenant. The office unit cost him RM980,000. Ibrahim declared the following income to the Inland Revenue Board of Malaysia (IRBM) for the basis year 2016: i. Business Income Ibrahim is in a partnership, sharing equally the profits and losses with a Malaysian in a Turkish restaurant business in Penang. His statutory income from the partnership business is RM122,000. ii. Dividend income ? Single tier dividend from Nestle Bhd. of RM22,000 was declared in December 2015 but received on 6 January 2016. ? Dividend income equivalent to RM125,000 from share investments in the United Kingdom remitted to Malaysia during the year. iii. Income from unit trust A sum of RM39,000 distributed from BLH Premier Unit Trust, Singapore was received during the year. The income was remitted to Malaysia from Singapore on 5 December 2016. iv. Royalty income Royalty income of RM110,000 was received in respect of writing a novel, it was paid by a local publisher. He incurred RM12,000 on research and he paid RM14,000 for editing his manuscript during the year 2016. v. Rental income Rental income was received from an office unit in Penang which was rented out at RM5,000 per month for the last three years to a travel agent. It became vacant on 30 April 2016. It was rented to a new tenant after repairs on 1 September 2016 for RM6,000 per month. For the basis year 2016, Ibrahim incurred the following expenses towards the office unit. RM Interest on bank loan of RM350,000 12,000 Quit rent and assessment 2,800 Fire insurance 3,200 Repairs 5,000 Installation of burglar alarm 2,500 Advertisement cost to find a new tenant 1,400 Service charges for building maintenance 4,800 vi. Ibrahim has four children. The first child Zalik, aged 22, is pursuing an engineering degree at the Multimedia University. The second child, Faridah, aged 19, is pursuing medicine at Glasgow University. Her father spent RM140,000 towards her fees and accommodation. She received RM50,000 per annum from a trust fund set up by her grandfather. The third child Rosmah, aged 15, is studying at a government secondary school. A fourth child, named Normah was born during the year. 5 vii. Ibrahim pursued a post-graduate Masters degree in Business Administration on a part time basis at University Science Malaysia and he incurred fees amounting to RM13,000 in 2016. viii. Azlina, suffering from cancer, underwent surgery and chemotherapy at a private medical centre in October 2016. Ibrahim incurred medical expenses of RM74,000 during the year. ix. He paid life assurance premiums of RM15,000. x. Ibrahim bought a laptop computer for himself for RM3,300 and a treadmill for the family amounting to RM3,200. He bought books and magazines for the family for RM870. Ibrahim has the necessary supporting documentation for these expenditure. xi. His mother, who is 80 years old, lives with him and she has no independent income of her own. xii. He contributed RM1,200 in Zakat to fulfil his religious duty. Required: Compute the total income, chargeable income and tax payable of Ibrahim Edogan for the year of assessment 2016 under joint assessment, assuming Azlina is the one who elected to be assessed with her husband's income.