Question

(1) Sally, an employee of infotech Sdn bhd was granted an option on 1 January 2019 to
buy 1,000 shares of the company at RM1 per share not later than 30 June 2020. The
market value of the shares at 1 January 2019 was RM5 per share On 1 March 2020,
Sally exercised the option The market price at 1 March 2020 was RM10 per share.
Required:
Compute the perquisite value to Sally for share option.

(2)State the items would not constitute employment income

(3) State FIVE (5) characteristics of bonus which makes it can be assessed under S13 (1)(a)

According to Malaysian Tax Act 1967​

Answer 1

(1) Sally, an employee of infotech Sdn bhd was granted an option on 1 January 2019 to
buy 1,000 shares of the company at RM1 per share not later than 30 June 2020. The
market value of the shares at 1 January 2019 was RM5 per share On 1 March 2020,
Sally exercised the option The market price at 1 March 2020 was RM10 per share.
Required:
Compute the perquisite value to Sally for share option.

(2)State the items would not constitute employment income

(3) State FIVE (5) characteristics of bonus which makes it can be assessed under S13 (1)(a)

According to Malaysian Tax Act 1967

Answer 2

Answer:

Transcribed image text:

(1) Sally, an employee of infotech Sdn bhd was granted an option on 1 January 2019 to buy 1,000 shares of the company at RM1 per share Inot later than 30 June 2020. The market value of the shares at 1 January 2019 was RM5 per share. On 1 March 2020, Sally exercised the option. The market price at 1 March 2020 was RM10 per share. Required: Compute the perquisite value to Sally for share option. ( )/10 marks

(ii) State the items would not constitute employment income. ( )/3 marks

(iii) State FIVE (5) characteristics of bonus which makes it can be assessed under S13 (1) (a). ( )/5 marks

Explanation:

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