Background

Harvey Ngiam graduated with a business administration degree. He is a marketing strategist. Ingrid Chiam graduated with an accountancy degree. She is a full-time housewife after being married to Harvey and giving birth to Jayden Ngiam, Kayden Ngiam and Layden Ngiam, all of whom are Singaporeans.

Harveys Employment Matters

Harvey was employed by ABC Private Limited (ABC), a Singapore-incorporated company specialising in meetings, incentives, conferences and exhibitions (MICE). He was promoted to senior management two years ago. Harvey was contractually entitled to the following payments as a regional marketing director:

• Bonus of $15,000 per year;
• CPF contribution according to statutory requirements;
• Entertainment allowance of $500 per month;
• Transport allowance of $6,000 per year; and
• Wages of $15,000 per month.

During the calendar year ended 31 December 2020, Harvey spent two months working overseas for ABC, and received additional wages of $2,000. ABC also paid Harvey a one-off commission of $100,000 for bringing in new clients from overseas.

On 2 January 2020, ABC provided Harvey with a new laptop worth $2,149 to be used for work, a new handphone worth $1,299 to be regarded as Harveys lucky draw prize won at ABCs family day and a new car to facilitate the discharge of Harveys employment duties.

ABC paid $61,000 for the car. Harvey found out that ABC paid another $45,000 for the cars certificate of entitlement. Hence, he agreed to pay for the cars running costs and maintenance expenses. The car dealer estimated the cars PARF rebate to be $10,000.

ABCs business was badly hit by COVID-19. Clients cancelled their projects with the company due to the closure of borders in the region. Harvey was retrenched with immediate effect on 30 June 2020 as a result. ABC compensated him with the following payments:

• Discretionary bonus of $20,000 for outstanding performance in the last financial year;
• Severance payment computed based on three months of wages; and
• Payment in lieu of notice computed based on three months of wages.

Before leaving the company, Harvey made a claim for the following expenses in accordance with the companys policies, which shall be applicable to all staff, whether they belong to the revenue centres or cost centres:

• Food and beverage (F&B) of $765 incurred for official meetings; and
• F&B of $234 incurred for Harveys private consumption only.

On 1 July 2020, Harvey joined his ex-boss marketing firm temporarily, while he looked out for new opportunities in the MICE industry. He was contractually entitled to the following payments as a marketing consultant:

• CPF contribution according to statutory requirements;
• Miscellaneous allowance of $300 per quarter; and
• Salary of $8,000 per month.

The firm provided Harvey with uniforms worth $450 as part of the firms branding efforts. During the calendar year ended 31 December 2020, Harvey incurred laundry expenses of $585 on these uniforms worn at corporate events. The firm reimbursed Harvey in full.

Harveys Personal Matters

Both ABC and the marketing firm deducted $3 from Harveys wages and salaries for onward payment to Chinese Development Assistance Council every month as Harveys donation to an institution of a public character. Harvey gifted $1,000 to his neighbour too.

On 1 January 2020, Harvey employed a foreign domestic worker (FDW) to help Ingrid with the familys household chores. Harveys retired parents, who were living in the same household, looked after the boys, who were primary school kids as at 31 December 2020.

During the calendar year ended 31 December 2020, Harvey did not perform any reservist duties due to the cancellation of trainings pursuant to COVID-19. As a non-key appointment holder in the army, Harvey was unsure when trainings for national servicemen will resume.

Compute Harveys income tax payable for the YA 2021.