Q1.

Cherry is employed as an accountant and incurred the following expenses during the year 2021:

New laptop for office use $2,500

Private car maintenance costs. The car was used solely for business meetings $6,000

Annual membership subscription to a professional accountancy body $500

Under the terms of Cherrys employment contract, she is entitled to a transport allowance of $12,000 per annum.

What is the total deductible amount Cherry can claim against her employment income in respect of these expenses for the year of assessment 2022?

Q2.

Chrome Pte Ltd (CPL) recognised the following expenses in its statement of profit or loss for the year of assessment 2021: $

Employee remuneration 2,200,000

Air tickets for expatriate employees 8,000

Medical expenses 24,000

During the year, CPL received $29,000 in respect of government paid childcare and maternity leave. CPL does not implement any portable medical benefit scheme for its employees.

What is the amount of medical expenses which will NOT be allowable as a deduction, for Chrome Pte Ltd in the year of assessment 2022?

GST 7%