Question 2 Kami Wong, born 1969, is a Singapore citizen and the Chief Executive Officer of a Singapore listed company. Her husband, John Chan, a Singapore citizen born in 1968, is an equity partner of the Singapore office of an international law firm. Kami and John have two children - Jacob (son aged 15) and Isabella (daughter aged 10) and both are Singapore citizens, studying full-time in Singapore schools. During the year ended 31 December 2019, Kami and John derived the following income: Kami John $ S Share of income from the partnership 350,000 Salaries and bonuses 190,000 Dividend income from Singapore companies 50,000 30,000 Dividend income from Australian companies (received in Singapore 10,000 40,000 in 2019) Interest income on fixed deposits from Singapore banks 10,000 5,000 Rental income from a Singapore residential property (net of deductible 30,000 30,000 expenses) Further points to note: The couples have to maintain Kami's handicapped sister who lives in Singapore and they spent $3,000 in 2019 for such purposes. Kami's monthly salary was $10,000 and in 2019, she was awarded a non-contractual bonus of $70,000. At times, John's mother who stays in her own residence at Bedok will go to the couples residence to look after their children especially when the couples travel overseas. In 2018. John made a voluntary CPF contribution of $30,000 to his CPF account. Required: Analyse and advise Kami and John of their Singapore income tax liabilities for Year of Assessment 2020 through the income tax computations demonstrating the maximum tax saving opportunities available to them State your basis and show all workings. Make any relevant assumptions if the facts are not clear or you may require additional information before you are in the position to advise Kami and John. (25 marks) Question 2 Kami Wong, born 1969, is a Singapore citizen and the Chief Executive Officer of a Singapore listed company. Her husband, John Chan, a Singapore citizen born in 1968, is an equity partner of the Singapore office of an international law firm. Kami and John have two children - Jacob (son aged 15) and Isabella (daughter aged 10) and both are Singapore citizens, studying full-time in Singapore schools. During the year ended 31 December 2019, Kami and John derived the following income: Kami John $ S Share of income from the partnership 350,000 Salaries and bonuses 190,000 Dividend income from Singapore companies 50,000 30,000 Dividend income from Australian companies (received in Singapore 10,000 40,000 in 2019) Interest income on fixed deposits from Singapore banks 10,000 5,000 Rental income from a Singapore residential property (net of deductible 30,000 30,000 expenses) Further points to note: The couples have to maintain Kami's handicapped sister who lives in Singapore and they spent $3,000 in 2019 for such purposes. Kami's monthly salary was $10,000 and in 2019, she was awarded a non-contractual bonus of $70,000. At times, John's mother who stays in her own residence at Bedok will go to the couples residence to look after their children especially when the couples travel overseas. In 2018. John made a voluntary CPF contribution of $30,000 to his CPF account. Required: Analyse and advise Kami and John of their Singapore income tax liabilities for Year of Assessment 2020 through the income tax computations demonstrating the maximum tax saving opportunities available to them State your basis and show all workings. Make any relevant assumptions if the facts are not clear or you may require additional information before you are in the position to advise Kami and John. (25 marks)
