Announcement

Collapse
No announcement yet.

Singapore Concept of Income & Tax Deductions

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

  • Singapore Concept of Income & Tax Deductions

    Everblue Pte Ltd (EPL) is a manufacturing company incorporated and tax resident in Singapore. For the year ended 30 September 2008, it achieves a net profit before tax of $1,678,000 after taking into account the following relevant income:-

    1.1 Recovery of a non-trade bad debts written off previously in 2007 $20,000
    1.2 Compensation received from customer for cancelling trade contract 15,800
    1.3 Sundry income from forgiveness of shareholder loan made in 2006 25,000
    1.4 (a) Interest income from $300,000 fixed deposit placed with OCBC 8,000
    - $6,000 matured on 31 December 2007
    - $3,750 matured on 30 June 2008
    - $2,700 matured on 31 December 2008

    The company placed the $300,000 on 6-month fixed deposit with OCBC on 1 Jul 2007 which is renewable every 6 months. The amount of interest accrued as at 30 September 2008 was $1,800.

    (b) Interest on deposit with HSBC in Hong Kong - not remitted 12,000
    (c) Interest on an outstanding trade debt not remitted 37,450

    1.5 Dividend income
    - 1-tier dividend received from Singapore resident company 7,680
    - Malaysia dividend from Amir Sdn Bhd (net of 26% tax) remitted 3,700

    1.6 Profit on sale of Van 15,000
    The van (under 3 tonnes) with a tax life of 6 years was purchased in March 2004 for
    $50,000 and sold for $18,000.

    1.7 A capital gain of $80,000 was made from the disposal of an investment in the equity
    of a Mauritian company.

    1.8 Unrealised gain of $50,000 from fair valuation of trading in the shares of the
    Singapore resident company. The company has opted to remain in pre-FRS 39 tax treatment.

    Discuss the taxability of each of the above sources of income for the Year of Assessment
    2009.
Previously entered content was automatically saved. Restore or Discard.
Auto-Saved
Smile :) Stick Out Tongue :p Wink ;) Mad :mad: Big Grin :D Frown :( Embarrassment :o Confused :confused: Roll Eyes (Sarcastic) :rolleyes: Cool :cool: EEK! :eek:
x
Insert: Thumbnail Small Medium Large Fullsize Remove  
x

the color of snow is... (write the answer twice with an "@" between the words)

widgetinstance 213 (Related Topics) skipped due to lack of content & hide_module_if_empty option.
Working...
X