Determine the amount of donations which can be claimed against statutory income for YIA 2021 pursuant...

 

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Determine the amount of donations which can be claimed against statutory income for YIA 2021 pursuant to Section 14 of Singapore Income Tax Act (SITA). Question 2a The following donations made by Franco Pte Ltd for the year ended 31 December 2020. The company closes its account on 30 November every year. Date Institutions Amount 1/1/20 30/1/20 4/4/20 30/6/20 3/8/20 Date 1/4/20 15/5/20 9/8/20 31/10/20 12/11/20 National Kidney Foundation* NUS library* St. John's Home for the Aged* Children Aid Society* Singapore Polytechnic Institutions $ 12,000 8,000 Boy's Town* Temple People's Action Party Salvation Army* 600 4000 1200 25,800 Amount $ Community Chest of Singapore* 3,000 3,500 500 4500 3,552 ➖➖➖➖➖➖ 15,052 Remarks Cash Books Beds Cash Cash Remarks Cash Computer Cash Cash Cash *approved institutions of public character Required: Determine the amount of donations which can be claimed against statutory income for Y/A 2021 pursuant to Section 14 of Singapore Income Tax Act (SITA). (12 marks) Question 2b Franco Ptd Ltd has an unabsorbed losses of $12,400 from previous years which it wanted to claim in YA 2021. But it was advised that it must pass the 50% shareholding test. The director of the company is not aware of this requirement. Advise the director of Franco Pte Ltd on the requirements of passing the shareholding test for the unabsorbed losses b/f. Cite a relevant example of your own. Determine the amount of donations which can be claimed against statutory income for YIA 2021 pursuant to Section 14 of Singapore Income Tax Act (SITA). Question 2a The following donations made by Franco Pte Ltd for the year ended 31 December 2020. The company closes its account on 30 November every year. Date Institutions Amount 1/1/20 30/1/20 4/4/20 30/6/20 3/8/20 Date 1/4/20 15/5/20 9/8/20 31/10/20 12/11/20 National Kidney Foundation* NUS library* St. John's Home for the Aged* Children Aid Society* Singapore Polytechnic Institutions $ 12,000 8,000 Boy's Town* Temple People's Action Party Salvation Army* 600 4000 1200 25,800 Amount $ Community Chest of Singapore* 3,000 3,500 500 4500 3,552 ➖➖➖➖➖➖ 15,052 Remarks Cash Books Beds Cash Cash Remarks Cash Computer Cash Cash Cash *approved institutions of public character Required: Determine the amount of donations which can be claimed against statutory income for Y/A 2021 pursuant to Section 14 of Singapore Income Tax Act (SITA). (12 marks) Question 2b Franco Ptd Ltd has an unabsorbed losses of $12,400 from previous years which it wanted to claim in YA 2021. But it was advised that it must pass the 50% shareholding test. The director of the company is not aware of this requirement. Advise the director of Franco Pte Ltd on the requirements of passing the shareholding test for the unabsorbed losses b/f. Cite a relevant example of your own.

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ANSWER Question 2a To determine the amount of donations that can be claimed against statutory income for YA 2021 we need to consider the requirements ... View the full answer