Question

Nicky is a manager of a well-known restaurant in Gombak. In the year 2013, besides receiving the normal monthly salary, he also received the following:

a)     Free food from the restaurant valued at RM1500.

b)     3 pairs of suits worth RM6000 provided by the management. He is required to wear them on duty.

c)      Tips amounting to RM800 from customers who patronized the restaurant.

d)     A reward of RM4000 from a customer for the safe return of important documents left behind at the restaurant.

e)     A lucky draw prize in a form of a return air ticket for two to the Hawaii worth RM3000. The draw was made during the company’s annual dinner.

 

Required: Explain, with reasons, whether the above receipts are liable to tax or not.

Answer 1

The above receipts are liable is the taxation