PaTriCKLiM Diary

(a) Personal = RM5,000 (a further relief of RM5,000 if the taxpayer is a disabled person) (b) Wife = RM3,000 (a further relief of RM2,500 if the wife is a disabled person) (c) Medical expenses of parents up to a maximum of RM5,000. Medical expenses for serious illnesses for individual, wife or child up to a maximum of RM5,000. (d) Expenditure for purchase of basic support equipment for the individual, his wife, child or parent who is disabled the up to a maximum of RM5,000 (e) Unmarried children below the age of 18 = RM800 per child The maximum relief for unmarried children (regardless of age) receiving full-time education in universities and institutions of higher education in Malaysia is four times the normal relief. (f) Incapacitated children RM5,000 per child (g) Contributions to the Employees Provident Fund and insurance or takaful premiums for life policies are allowed a maximum total tax relief of RM5,000. A further tax relief of RM2,000 is given for insurance or takaful premiums with respect to medical and educational purposes.

A married woman whose income is separately assessed generally has her overall tax liability reduced,although this may not always be the case. The separate assessment covers all her income sources. She may, however, elect for joint assessment, in which case, the husband is given a wife relief of RM3,000.

According Malaysia income  tax act 1967, foreigner is entitled to any personal relief in tax payment .Non resident is liable to 30% direct tax .However , Non-resident employee who work in malaysia for less then 60days in calender year are exempted for tax . Beside this, those non-resident are entitle to claim tax rebate for selected item as show below :

(a)			Special classes of income  - use of moveable property  - technical advice, assistance  or services  - installation services on the  supply of plant, machinery, etc.  - personal services associated  with the use of intangible  property	10%
(b)			Services of a public entertainer	15%
(c)			Interest	15%

For the following types of income, nonresident individuals are subject to a withholding tax which is a final tax.

Mr.Siau is a business man and he is Malaysian citizen .Mr.Siau have business in both country , which is Malaysia and Indonesia . He receive income form both country which is Malaysia and Indonesia. Discuss Whether a not Mr.Siau entitle to the income from both country .

In the case whether Mr.Siau entitil to the tax for source from both county.According to the Income Tax Act 1967.Foreign source remitted into Malaysia or income derive from foreign county are exempted from tax under para 28 schedule 6 of the income tax Act 1967 .But income derive from Malaysia are taxable .

Mr tong insures his shop against fire for Rm1000,000 in 1 may year 2010 with ING insurance berhad .During the time Mr tong purchase the insurance, the insurer ask for the purpose of the shop, Mr tong said the shop is for selling flower . In fact the behind the shop is rent for the used of car workshop. On 3 Oct 2010 the Mr Tong  shop is on fire . In this incident , whether a not Mr tong still entitle for the compensation under fire insurance ?

In this case , Mr tong is fail to disclose the fact which is  material that the part of the shop is used for repair services . This case is similar to the case" Goh choi leng v public life co" which is not disclose information that is material.  As your knowledge workshop usually keep many engine oil which is easily  cause  fire . Due to failure to  disclosed fact which is material , the contract is voidable by ING insurance company . Mr tong Might not entire to this  compensation against fire insurance .

Mr Chan buy life  insurance on April 2008, during the time he buy the insurance , insurer ask Mr Chan whether he is health and he is non smoker and non- alcoholic ? He answer he is non-smoker and non-alcoholic .In 2 month later  , Mr Chan become a smoker and after he bought the insurance due to the failure in business . After  4 month Mr Chan involve  in car accident and dead  . In this case ,whether a not  Mr Chan family  entire to the  compensation for the life insurance ?

In this case, Mr Chan family not fraud from no to provide disclose information which is material  , this because Mr.tong involve in smoking and drinking after  he buy the insurance . According to rules of insurance  , Mr.tong have 6 month period to updated he personal info to the insurance company . so in this case, Mr tong no fraud  for  non-disclose information which is consider material or late update he personal information . So M r Chan family still entitle for this compensation under life insurance .

The word Uberrimae fidei is souce from latin  , it carry the same meaning as " utmost good faith" . Principle of  Uberrimae fidei always apply under the law of contract (especially in insurance) in the case  of one party is under a fundamental duty to disclose all the material fact and surrounding circumstances that could influence the decision of the other party to enter into the agreement .This because insurance contract is based dupon mutual trust and confident between the insurer and insured. Non-disclose or partial-disclose information which is material fact will cause the agreement to be voidable.

But non-disclose information which is not material will not cause the fracture  of  the contract .