Part A (8 marks)

Advise Ms Lim on her Singapore tax residence status for YA 2021. Explain the basis of your answer using either the qualitative or quantitative test. In your answer, please explain the basis of determining an individuals tax residence status under the respective test used. If using the qualitative test, give at least two reasons to support that Singapore is the normal place of residence.

Part B (24 marks)

Using the badges of trade, advise Ms Lim on the taxability and amount of profit (if applicable) made from the sale of the necklaces. In your answer, please explain the applicability of each badge of trade to Ms Lim.

Part C (68 marks)

Prepare the YA 2021 tax computation for Ms Lim in the suggested format below. You may make relevant adjustments to the format as required. Where an item of receipt is not brought to tax (or conversely an item of expense / relief is not claimed for deduction), please insert 0 (zero) in the tax computation and state the reasons e.g. not taxable as capital in nature or not deductible as capital in nature. Ms Lim would like to maximize any claims in order to achieve an overall lower tax liability.

All workings must be shown.

	Amount (S$)	Reason why receipt not taxable / expense or personal relief not deductible
Salary
Bonus
Entertainment Allowance
Motor car benefit
Share option benefit
Long service award
Accommodation benefit
Less: Employment expenses
Net employment income
Trade income
Total Earned Income (Net employment income and trade income)
Dividend
Interest income (OCBC bank)
Interest from loan to company
Remittance of interest income
Gain from sale of shares
Net rental income (show workings separately)
TOTAL INCOME
Less: Approved Donations
ASSESSABLE INCOME
Less: Personal Reliefs
- Earned income relief
- Spouse relief
- CPF relief
- Qualifying child relief
- Working mothers child relief
- Foreign Maid levy relief
- Parent relief
- Grandparent caregiver relief
Total Personal Reliefs
CHARGEABLE INCOME
Tax payable on 1st $XXX
Tax on next $XXX
Net tax payable

Note: For rental income derived by Ms Lim, please show workings separately and consider any applicable concession.

15% Deemed Expenses basis

	Property 1	Property 2	Reasons why expense not deductible
Gross rental income
Less: 15% Deemed Rental Expenses
Less: Capital repayment of mortgage loan
Less: Interest on mortgage loan
Net rental income/ (loss)			Not applicable
Net taxable rental, after applicable concession			Not applicable

Actual Expenses incurred basis

	Property 1	Property 2	Reasons why expense not deductible
Gross rental income
Less: Expenses incurred
- Fire insurance and property tax
- Maintenance fee
- Replacement of refrigerator
- Minor repairs
- Capital repayment of mortgage loan
- Interest on mortgage loan
Net rental income/ (loss)			Not applicable
Net taxable rental, after concession			Not applicable

**i only need you to do Part C( you don't have to do Part A and B), i've copied the whole question already but it said insufficient information. So i put in Part A and B question to hope that can support to answer my Part C. And for the Part C question also provide the format so you just need to do the calculating. Thanks a lot, i really appreciated. (btw i dont know what you meant by 'less time'

Ms Amanda Lim, aged 45, is a Singaporean married with 2 children, aged 10 and 8 years old as of 31 December 2020. The children are looked after by a foreign maid with a monthly salary and levy of $850 and $60 respectively. Ms Lim's mother, a 65-year-old physically handicapped homemaker with no income of her own lives with Ms Lim and helps to look after her children. Ms Lim made a cash donation of $1,000 to the Singapore Cancer Society, an approved institution of public character as well as donation of toys and clothes worth $2,000 to the Singapore Children's Society, also an approved institution of public character in 2020. Both her children and mother are Singaporeans. Ms Lim's husband is an Australian and he had a total employment income of $200,000 for the year 2020. Ms Lim received the following employment income and benefits in 2020: (1) Monthly salary of $12,000 and contractual bonus of $50,000. (i) Company share option on 20 May 2020 to acquire 3000 shares with an exercise price of $15 per share. Ms Lim exercised the option on 10 June 2020 and acquired 2000 shares when the share price was $18 per share. She sold 500 shares at $19.50 per share on 17 August 2020 and 1500 shares at $20.50 per share on 30 October 2020. (iii) Entertainment allowance of $1,000 per month, of which 65% is for business purposes. (iv) Cash of $2,000 for long service award in recognition of her 20 years of service with the company. (v) Car with a cost of $150,000 and a PARF value of $35,000. The running expenses of $20,000 are paid by the company. (vi) Fully furnished accommodation with monthly rent of $6,000. Ms Lim contributed a total rent of $12,000 in the year 2020, with the rest paid for by the company. Ms Lim also has the following income for year 2020: Singapore one-tier dividend of S5,500. Interest income from OCBC Singapore, an approved bank of $1,000 Interest income of $500 from a loan to a private company, held by her relative. Rental income from two properties in Singapore wholly owned by Ms Lim. The properties have been rented out since 2016. During the year ended 31/12/2020, the income and expenses from the apartment are as follows: Property 1 Property 2 Gross monthly rental $5,000 $2,000 $3,500 Annual fire insurance and $5,500 property tax Monthly maintenance fee $600 Replacement of refrigerator $1.500 Minor repairs for the year $500 Monthly mortgage Capital repayment - $5,500 repayment Interest repayment - $1,200 $280 Nil Capital repayment - $3,500 Interest repayment - $1,600 In addition, Ms Lim remitted interest income of $5,000 from her savings accounts in Australia to Singapore on 30 November 2020. During one of her overseas trips in 2020, Ms Lim bought 500 pieces of pearl necklaces and brought them back to Singapore. She actively sought for potential buyers through social media and sold 400 pieces to buyers both in Singapore and overseas. She made a profit of $10,000. However, due to the economic downturn, she had difficulties selling the remaining 100 pieces. She decided to sell them below cost and incurred a loss of $1,000. All the sales were made within three months from her purchase