Question ta (29 marks) Mr Andy Kent is a French citizen aged 35. He commenced on a three-year employment contract as the Head of Tax with Sitizen (Singapore) Pte Ltd on 1 April 2019. A Employment income 1. Andy's annual salary was S122.400. i. The company incurred 58.600 for the airfare to relocate Andy and his family to Singapore to commence is employment. Contractual bonus of $20,400 for the year ended 31 December 2019 was credited to Andy's HSBC bank count in France on 2 January 2020. The company provided him with a new car on 1 August 2019 and also paid for the car's running expenses. ails of the car SMU7546K were as follows: Cost of the car $137,000 100 yment for the airfare to relocate Andy and his family to Singapore to commence in Contractual bonus of $20.400 for the year ended 31 December 2019 was credited to Andy's HSBC bank account in France on 2 January 2020. iv. The company provided him with a new car on 1 August 2019 and also paid for the car's running expenses. Details of the car SMU7546K were as follows: Cost of the car Apple Carplay PARF Rebate Car multimedia system Total mileage travelled in 2019 Mileage travelled between home and office during the weekdays and public holidays in 2019 $137,000 $10.640 $16,000 24,500 km 9,000 km Mileage travelled with his wife and friends in 2019 Petrol 16,000 km $1,610 Road tax (1 August 2019 - 31 July 2020) Car insurance (1 August 2019 - 31 July 2020 $1,300 24.500 km home and office the weekdays and public holidays in 2019 9.000 km Mileage travelled with his wife and friends in 2019 6.000 km Petrol $1.610 Road tax (1 August 2019 31 July 2020) $1,300 Car insurance (1 August 2019 31 July 2020) $ 1.400 Car expenses $3,690 v. Andy was given $6.000 entertainment allowance from the company in 2019 and he incurred 80% of the allowances on entertaining business clients. vi. The company gave him a cash allowance of $5,800 for his 2-month stay at a hotel in Singapore from 1 January to 28 February 2019 as part of his relocation benefit. He incurred $1,000 to stay in the hotel. For the period from 1 March to 31 December 2019, Andy was provided with a fully furnished apartment by the company. The apartment's gross annual value for 2019 was $28.000. The monthly rental paid by the company was 10,600 and Andy contributed $600 each month for the use of the apartment provided by the company. i. Andy was granted stock option by the company to purchase 5.000 shares in the Tun 2010 and he incurred 80% of the allowance of 55,800 for his 2-month stay at a hotel in Singapore from 1 28 February 2019 as part of his relocation benefit. He incurred $1,000 to stay in the hotel. For the period from 1 March to 31 December 2019. Andy was provided with a fully furnished apartment by the company The apartment's gross annual value for 2019 was $28.000. The monthly rental paid by the company was $10,600 and Andy contributed S600 each month for the use of the apartment provided by the company. vii. Andy was granted stock option by the company to purchase 5,000 shares in the company at $2 each on 30 June 2019. The market price per share then was $2.80. He exercised the stock option to purchase all the shares on 15 July 2019 and the market price per share then was $3.20. As at 31 December 2019. the market price per share rose to S4 and he sold 3,000 shares on that date. viii. Andy and his wife went on home leave back to France to visit Andy's parents in August 2019 and the total costs of the leave passages of $8,000 was fully paid by the company. The company also paid for Andy and his wife's airfares of $1,200 to Hong Kong which was a holiday trip for them in December 2019. ix. In view of his good work performance to settle a tax audit, he was awarded a handphone valued at $150. X. As part of his birthday celebration in August and Christmas celebration, Andy was given metro vouchers of $100 and $300 respectively. B. Other Income a handphone valued at $150 "hristmas celebration. Andy was given metro vouchers ely. B. Other Income xi. Singapore one-tier dividend of $31,650 was declared payable to Andy on 31 December 2019. xii. Andy also has the following interest income accrued to him in 2019: a. DBS Ltd (approved bank in Singapore) 910 b. CIMB Bank (a foreign bank in Malaysia) $1,220* *The foreign interest income was remitted to Singapore in 2019. C. Additional Information xili. Andy made the following donations in 2019: a. Cash of $2,000 to National Kidney Foundation b. $3,000 worth of Singtel's shares (listed in the Singapore exchange) to the Children Society* c. Bags with groceries worth $5,000 to the foreign workers. * Approved institution of public character ermitted to Singapore in 2019 Additional XE. Andy made the following donations in 2019 a. Cash of $2.000 to National K dney Foundation b. 53.000 worth of Singtel's shares (listed in the Singapore exchange) to the Children Society* c. Bags with groceries worth $5.000 to the foreign workers. *Appreved institution of public character xiv. Andy contributed $45.780 to his Supplementary Retirement Scheme (SRS). xv. Ms Jamie (38 years old), his wife is a housewife and stays at home to take care of Andrew, his oldest son who is 17 years old and suffers from learning disability. xvi. His 2nd son, Aaron, is 13 years old and is currently studying full time in a Singapore school. He worked as a part time waiter from 1 June to 31 December 2019 and earned a monthly salary of $590 during the period xvii. His youngest son, Alan is 11 years old. Required Compute Andy's tax liability for Y/A 2020. Please indicate in your tax computation any income that is xempted or not taxable and any expenses or donations that are not tax deductible. (29 marks)