Taxation

Question 41 (2 points) Katy, a Filipino, arrived in Singapore on 1 August 2019 and commenced work immediately until 31 January 2021. Adopting the relevant administrative concession, which of the following statement is TRUE? 1) Katy will be treated as a Singapore tax resident for the Years of Assessment ("YA") 2020 to 2022 under the 3-year administrative concession. 2) Katy will not be treated as a Singapore tax resident for all the relevant YA as she is not a Singaporean. 3) Katy will be treated as a non-resident of Singapore for YA 2020 and 2022 as she did not exercise employment in Singapore for at least 183 days in the relevant basis period. 4) Katy is tax resident in Singapore only for YA 2021 as she exercised employment in Singapore for at least 183 days. Question 42 (2 points) Amoeba Pte Ltd incurred staff costs of $750,000, which comprise staff salaries of $550,000, entertainment allowances of $90,000, directors' fees of $60,000 and medical expenses of $50,000. The company has not implemented the portable or transferable medical scheme. What is the amount of deductible medical expenses for Amoeba Pte Ltd? 1) $7,500 2) $500 3) $7,000 $6,400 Question 43 (2 points) XYZ (S) Pte Ltd charged the following expenses to the Profit and Loss Account. (i) Low value assets expensed off (ii) Transport allowance given to sales staff to cover expenses incurred on the use of their personal cars for business purposes. (iii) Depreciation Which of the expenses is/are tax deductible? 1) (i) only. 2) (i) and (ii). 3) (ii) only. 4) None of the options Question 44 (2 points) ABC Pte Ltd incurred Section 14Q compliant renovation expenses of $120,000 and $60,000 in financial years 2017 and 2019, respectively. The company did not incur any Section 14Q compliant renovation expenses in any other years. What is the deductible Section 14Q renovation expenses for Year of Assessment 2022? 1) $20,000 2) $60,000 3) $40,000 4) $0 Question 45 (2 points) Creative Pte Ltd has unabsorbed capital allowances of $50,000 from Year of Assessment (YA) 2016 and adjusted profits of $150,000 from YA 2022. Creative's accounting year ends on 30 June. What are the comparison dates on which the common shareholders are to be determined to satisfy the shareholdings test? 1) 30 June 2015 and 1 January 2022. 2) 30 June 2016 and 1 January 2022. 3) 31 December 2015 and 1 January 2022. 4) 31 December 2016 and 1 January 2022. Question 46 (2 points) Comparative Pte Ltd ("CPL") has unabsorbed trade loss of $70,000 and donations of $30,000 for the accounting year ended 30 June 2021 and assessable income of $150,000 for the year ended 30 June 2018. The company's shareholders and their percentage of shareholdings are as follows: 1 Jan 2021 onwards A B D E Up to 29 June 2020 30 40 30 30 June 2020 to 31 Dec 2020 10 30 30 30 20 60 20 Who are the common shareholders on the relevant comparison dates to determine if the unabsorbed trade losses can be utilised in YA 2019 under the enhanced carry back provisions? 1) A and B. 2) A, B and C. 3) A, B, C and D. 4) Conly Question 47 (2 points) Creative Pte Ltd has unabsorbed capital allowances of $35,000 from Year of Assessment (YA) 2022 and assessable income of $100,000 from YA 2020. Creative's accounting year ends on 31 March. What are the comparison dates on which the common shareholders are to be determined to satisfy the shareholdings test to carry back the capital allowances under the enhanced carry back provisions? 1) 1 April 2021 and 31 December 2020. 2) 1 April 2022 and 31 December 2020. 3) 1 January 2021 and 31 December 2020. 4) 1 January 2022 and 31 December 2020. Question 48 (2 points) Devue Pte Ltd has unabsorbed trade losses of $40,000 from Year of Assessment (YA) 2018 and statutory income of $200,000 from YA 2022. Devue's accounting year ends on 31 August. What are the comparison dates on which the common shareholders are to be determined in order to satisfy the shareholdings test? 1) 31 August 2017 and 1 January 2022. 2) 31 August 2018 and 1 January 2022. 3) 31 December 2017 and 1 January 2022. 4) 31 December 2018 and 1 January 2022. Question 49 (2 points) ABC Pte Ltd has unabsorbed capital allowances of $50,000 arising from Year of Assessment 2018 and adjusted trade profits of $200,000 for the year ended 30 June 2021. The company's shareholders and their percentage of shareholdings are as follows: 20 30 June 31 Dec 30 June 31 Dec 2017 2017 to 30 2020 2020 June 2019 onwards A 30 50 30 30 B 30 10 10 40 40 10 D 40 60 Who are the common shareholders on the relevant comparison dates to determine if the unabsorbed capital allowances can be utilised in YA 2022? 1) A only. 2) A and B. 3) A, B and C. 4) A, B, C and D. Question 50 (2 points) Best Electric Pte Ltd has unabsorbed capital allowances, trade losses and donations of $45,000, $30,000 and $10,000 respectively, all arising from Year of Assessment (YA) 2022 and assessable income of $80,000 from YA 2021. The amount of qualifying deduction that can be carried back is 1) $100,000 2) $75,000. 3) $80,000. 4) $85,000 Appendix 1 Y/A 2017 onwards Rate 0 2 3.5 7 11.5 Chargeable Income (CI) On the first 20,000 On the next 10,000 On the first 30,000 On the next 10,000 On the first 40,000 On the next 40,000 On the first 80,000 On the next 40,000 On the first 120,000 On the next 40,000 On the first 160,000 On the next 40,000 On the first 200,000 On the next 40,000 On the first 240,000 On the next 40,000 On the first 280,000 On the next 40,000 On the first 320,000 In excess of 320,000 Gross Tax 0 200 200 350 550 2,800 3,350 4,600 7,950 6,000 13,950 7,200 21,150 7,600 28,750 7,800 36,550 8,000 44,550 15 18 19 19.5 20 22