Question 3 [23 marks] a) Keith Tan is in New Zealand since the beginning of last...

 

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Question 3 [23 marks] a) Keith Tan is in New Zealand since the beginning of last year. He has not filed any tax return to Inland Revenue of Singapore (IRAS) since then. He has the following income for the calendar year 2019: 1) Net rentals of $43,000 after deducting interest expense of $12,000 from a unit at Normanton Park. This unit was given to Keith by his uncle as a gift. Keith has pledged the unit as a collateral to buy a property at Auckland, New Zealand. 2) A property at Palm Grove in Singapore was sold last year for a profit of $1 million which was inherited from his late grandfather. He has never sold any property in Singapore before. 3) Employment income of $75,000 paid to an approved bank of Singapore account by his New Zealander employer. The interest derived from this account was $1,100. Required: i) For each of the receipts (1) to (3), advise Keith Tan of the Singapore tax implications; Advise him, with regards to filing of tax return in Singapore; [3 marks] [12 marks] ii) iii) State, giving reasons, if Keith will be regarded as a tax resident or non- resident of Singapore. [3 marks] b) The basis period for a year of assessment is always based on the calendar year. Explain whether you agree or disagree with the statement and why. [5 marks] Question 3 [23 marks] a) Keith Tan is in New Zealand since the beginning of last year. He has not filed any tax return to Inland Revenue of Singapore (IRAS) since then. He has the following income for the calendar year 2019: 1) Net rentals of $43,000 after deducting interest expense of $12,000 from a unit at Normanton Park. This unit was given to Keith by his uncle as a gift. Keith has pledged the unit as a collateral to buy a property at Auckland, New Zealand. 2) A property at Palm Grove in Singapore was sold last year for a profit of $1 million which was inherited from his late grandfather. He has never sold any property in Singapore before. 3) Employment income of $75,000 paid to an approved bank of Singapore account by his New Zealander employer. The interest derived from this account was $1,100. Required: i) For each of the receipts (1) to (3), advise Keith Tan of the Singapore tax implications; Advise him, with regards to filing of tax return in Singapore; [3 marks] [12 marks] ii) iii) State, giving reasons, if Keith will be regarded as a tax resident or non- resident of Singapore. [3 marks] b) The basis period for a year of assessment is always based on the calendar year. Explain whether you agree or disagree with the statement and why. [5 marks]

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3a i 1 Net rentals of 43000 after deducting interest expense of 12000 from a unit at Normanton Park ... View the full answer