Do question 4 for JAN 2013 and question 3 and 4 for July 2012.This module is income tax for singapore.Do it in microsoft word.

ACC213 Examination - January Semester 2013 Introduction to Income Tax Friday, 17 May 2013 10:00 am - 12:00 pm ____________________________________________________________________________________ Time allowed: 2 hours ____________________________________________________________________________________ INSTRUCTIONS TO STUDENTS: 1. This examination contains FOUR (4) questions and comprises SIX (6) printed pages (including cover page). 2. You must answer ALL questions. 3. All answers must be written in the answer book. 4. Included as an Appendix on Page 5 and 6 is a list of selected personal reliefs that you may use. At the end of the examination Please ensure that you have written your examination number on each answer book used. Failure to do so will mean that your work cannot be identified. If you have used more than one answer book, please tie them together with the string provided. THE UNIVERSITY RESERVES THE RIGHT NOT TO MARK YOUR SCRIPT IF YOU FAIL TO FOLLOW THESE INSTRUCTIONS. ACC213 Copyright 2013 SIM University Examination - January Semester 2013 Page 1 of 6 Question 1 You are the tax consultant for Mr Spook, a 40 year old American, who is an employee of a United States listed company posted to work in its Singapore subsidiary company for an expected period of 183 days per year for the next two consecutive years, with effect from 1st January 2011. Mr Spook owns a private residential property in Singapore. It is currently tenanted and its 1-year tenancy is expiring on 30th June 2011. Mr Spook intends to use this property for his personal accommodation needs during his stay in Singapore. Mr Spook is the sole proprietor of Store Madness, a business dealing with warehousing and logistics services. His proprietorship is expected to be unprofitable for the next three years. Mr Spook's personal, business, employment and expenditure details for the calendar year ended 31st December 2011 are forecasted as follows:Description S$ Remuneration 160,000 Loss for sole proprietorship 60,000 Rental income 15,000 Property tax paid 3,120 Fire insurance paid MCST maintenance paid Tenancy termination cost Refurbishment cost 1,000 Total value of stock options awarded * Dependants 3,000 Remarks Remuneration received in Singapore is solely for Mr Spook's employment in Singapore. Includes depreciation charge of S$30,000 for automated warehousing equipment. They were purchased on 1st January 2011 for S$150,000. Mr Spook learned from IRAS that his sole proprietorship can either claim 60% of S$150,000 in cash or 400% in tax deductible allowance under the IRAS PIC Program. Derived from Mr Spook's private residential property for period from 1st Jan 2011 to 31st Mar 2011. S$1,500 for period from 1st Jan 2011 to 31st Mar 2011 and S$1,620 for period from 1st Apr 2011 to 31st Dec 2011. For period from 1st Jan 2011 to 31st Dec 2011. For period from 1st Jan 2011 to 31st Dec 2011 and relates to Mr Spook's private residential property. 10,000 For vacating the tenant prematurely before 30th Jun 2011. 5,000 Incurred for Mr Spook's personal accommodation needs. Based on 100,000 stock options valued @ S$1.25 each awarded on 31st Oct 2008. Employee satisfied all vesting conditions imposed by employer as at 31st Oct 2011. 125,000 Employer does not impose selling restrictions. Employee exercised 100,000 stock options on 1st Dec 2011 when open market price of stock was S$3.75. Exercise price of stock option is S$1.75. Spouse is a homemaker. One child under the age of 4 years. n.a. All dependants are able-bodied and staying with Mr Spook. ACC213 Copyright 2013 SIM University Examination - January Semester 2013 Page 2 of 6 * Monetary value of stock options and market price of stock are originally in United States Dollar and have been expressed in their Singapore Dollar equivalent. a) You are to examine Mr Spook's personal, business, employment and expenditure details and compute his estimated tax payable for the Year of Assessment 2012 based on the two possible scenarios under the IRAS PIC program. Determine the scenario which achieves a better cash flow for Mr Spook and ascertain his net cash flow from this scenario. (30 marks) b) State two IRAS' schemes applicable to Mr Spook for minimising his tax payable for both Years of Assessment 2012 and 2013, if his employer decided to post him to Singapore for 183 days only in the second half of Year 2011 and for 91 days in the first half of Year 2012. Describe how these schemes are applicable to Mr Spook and illustrate how Mr Spook can benefit from the aforementioned schemes. (10 marks) All relevant supporting computations, schedules or assumptions must be shown for marks to be awarded. Question 2 Beyonce is a celebrity who will be coming to Singapore in 2013 for 5 days to host the next edition of Supermodel Singapore. She will be paid $200,000 for five nights of hosting. She will also be accorded accommodation at St. Regis for seven nights worth $14,000 and first class return air tickets worth $18,000. She will incur expenses of $80,000 which are wholly and exclusively for the generation of her income. Of which, she expects $20,000 to be reimbursed. Describe and explain her tax liability in Singapore. (10 marks) Question 3 A business is considered to be GST registered once it receives the approval letter for GST registration from the Comptroller of GST. Discuss the compliance obligations of a GST registered business and list all the conditions that must be satisfied for a GST registered business to claim input tax, (15 marks) Question 4 For the quarter ended 31 December 2012, Precious Pte Ltd (\"PPL\"), a goods and service tax (\"GST\") registered trader, recorded the following transactions from trading in precious stones: ACC213 Copyright 2013 SIM University Examination - January Semester 2013 Page 3 of 6 - Sold $8,000,000 worth of goods to customers; 40% were exported overseas, 45% were sold to GST-registered companies in Singapore, 5% were sold to non GST-registered companies in Singapore, and 10% were sold in Free Trade Zones. - Absorbed the GST on a sale to a local, non GST-registered customer. This sale amounted to 5% of PPL's total sales. - Transferred a vault worth $40,000 to a subsidiary at no charge. - Purchased $1,200,000 worth of goods, two-thirds of which were from GSTregistered businesses. - Imported goods worth $3,500,000 from three overseas suppliers who have no permanent establishments in Singapore. - Purchased $700,000 worth of goods from an overseas supplier who has no permanent establishment in Singapore and these goods were shipped from the supplier's country to another overseas country, other than Singapore. - Leased a condominium apartment it owns with an annual value of $60,000 to an expatriate at a monthly rental of $6,500. - Recovered $90,000 from a bad debtor, of whom, bad debt relief of $120,000 has been claimed from the Comptroller of GST in the prior reporting quarters. - Collected a deposit of $500,000, from a local customer, which is related to the supply of goods amounting to $750,000 on 18 September 2012. Tax invoice for this supply of goods was issued on 18 January 2013. PPL also incurred the following expenditures in the quarter, all of which were paid to GST-registered businesses, except for the donation to a local charitable organisation. Safe deposit boxes and office rental Shipping charges for exports Bank charges Donation to a foreign charitable organisation Four identical gift hampers were given to a high-value client $ 120,000 18,000 2,200 2,000 4,000 All figures are exclusive of GST. Required: Examine the case and illustrate the computation of the amount of GST payable by or refundable to PPL for the quarter ended 31 December 2012. For each item identified, clearly state the type of supply and amount of output/input tax chargeable/payable. All relevant computations and assumptions must be shown for marks to be awarded. (35 marks) ----- END OF PAPER ----ACC213 Copyright 2013 SIM University Examination - January Semester 2013 Page 4 of 6 Supplementary Information The following information on personal reliefs and tax rebates can be used when answering the questions. Selected Personal Reliefs, Tax Rebates & Tax Rates for Year of Assessment 2012 1. Earned income relief: Age Below 55 years 55 to 59 years 60 years and above Normal $1,000 $3,000 $4,000 Normal $2,000 2. Spouse relief: Wife or husband 3. Parent/Handicapped Parent relief: Staying with Parent NOT staying with Parent Handicapped $2,000 $5,000 $6,000 Handicapped $3,500 Normal $7,000 $4,500 Handicapped $11,000 $8,000 4. Married/Divorced/Widowed Woman Foreign Maid relief: Twice the amount of foreign maid levy paid in 2011 up to a maximum of $6,360 5. NSman relief: Key Appointment Holders Non-key Appointment Holders Active NSman $5,000 $3,000 Non-active NSman $3,500 $1,500 Key or Non-key Appointment Holders Spouse of operationally ready NSman $750 Each parent of operationally ready NSman $750 6. CPF relief: Period 1 Jan 2011 - 28 Feb 2011 1 Mar 2011 - 31 Aug 2011 1 Sep 2011 and thenafter CPF Contribution Rates Employee Employer 20% 15% 20% 15.5% 20% 16% Maximum monthly ordinary wages (OW) attracting CPF Before 1 Sep 2011 From 1 Sep 2011 From 1 Jan 2011 - 31 Dec 2011: Maximum annual OW attracting CPF Maximum annual AW* attracting CPF * additional wages ACC213 Copyright 2013 SIM University Examination - January Semester 2013 $4,500 $5,000 $56,000 $79,333 Page 5 of 6 7. Life Insurance relief: Premiums paid on own life and wife's life insurance policies restricted to 7% of capital sum insured. No relief given if total employee's CPF contributions > $5,000. 8. Child relief: Qualifying child relief (QCR): each qualifying child Handicapped child relief (HCR): each qualifying child Working mother's child relief (WMCR): 1st child 2nd child 3rd child and beyond Maximum per child (QCR/HCR + WMCR) Total WMCR capped at $4,000 $5,500 15% of mother's earned income 20% of mother's earned income 25% of mother's earned income $50,000 100% of mother's earned income 9. Course Fees relief: Up to $5,500 for eligible fees incurred on courses studies or seminars and conferences attended 10. One-off Personal Tax rebate: N.A. 11. Parenthood Tax rebate (may be shared with spouse): 1st child 2nd child 3rd child and beyond 12. Individual Income Tax rates: First $20,000 Next $10,000 First $30,000 Next $10,000 First $40,000 Next $40,000 First $80,000 Next $40,000 First $120,000 Next $40,000 First $160,000 Next $40,000 First $200,000 Next $120,000 First $320,000 Above $320,000 Rate (%) 0 2.0 3.5 7.0 11.5 15 17 18 20 $5,000 $10,000 $20,000 per child Gross Tax Payable ($) 0 200 200 350 550 2,800 3,350 4,600 7,950 6,000 13,950 6,800 20,750 21,600 42,350 - ----- END OF SUPPLEMENTARY INFORMATION ----- ACC213 Copyright 2013 SIM University Examination - January Semester 2013 Page 6 of 6 ACC213 Examination - July Semester 2012 Introduction to Income Tax Friday, 16 November 2012 10:00 am - 12:00 pm ____________________________________________________________________________________ Time allowed: 2 hours ____________________________________________________________________________________ INSTRUCTIONS TO STUDENTS: 1. This examination contains FOUR (4) questions and comprises EIGHT (8) printed pages (including cover page). 2. You must answer ALL questions. 3. All answers must be written in the answer book. 4. Included as an Appendix on Page 7 and 8 is a list of selected personal reliefs that you may use. At the end of the examination Please ensure that you have written your examination number on each answer book used. Failure to do so will mean that your work cannot be identified. If you have used more than one answer book, please tie them together with the string provided. THE UNIVERSITY RESERVES THE RIGHT NOT TO MARK YOUR SCRIPT IF YOU FAIL TO FOLLOW THESE INSTRUCTIONS. ACC213 Copyright 2012 SIM University Examination - July Semester 2012 Page 1 of 8 Question 1 a) Inland Revenue Authority of Singapore (IRAS) requires that the Estimated Chargeable Income of a Company be filed within 3 months from its accounting year end in order to benefit from the IRAS instalment plan for income tax payment. Explain the rationale for this policy. Suggest an improvement for tax revenue collection. (7 marks) b) Section 10 of the Singapore Income Tax Act (ITA) lays the rules and scope of Singapore's modified-territorial tax system. As such, tax is generally imposed on foreign income which has been received in or remitted into Singapore. Read the below-mentioned case carefully and assess the tax liabilities of Mr X. Case Mr X is a citizen of a socialist country who receives various types of income from his country. Mr X does not declare any of his income and hence is not taxed by his country. Mr X is not a tax resident of Singapore. Mr X uses his income to buy raw materials through an affiliated company in his country and ships them to Singapore to be sold at a total cost of S$100,000 to three of his wholly-owned companies. These companies were set up purely for the purpose of benefiting from the IRAS' full tax exemption scheme. Mr X's three companies in Singapore then resell the raw materials to third parties in Singapore for profits. As a result of the above operations, each of Mr X's three companies had to pay tax of S$17,000 for the year of assessment (YA) 2011. Mr X resident rate in his country is 20%. Corporate income tax is 17% for YA 2011. Explain the implications of Mr X's actions with respect to IRAS, paying particular attention to Sections 10, 33, 96 and 96A of the ITA. Estimate the tax penalties imposed on Mr X, if applicable. (18 marks) Question 2 You are the tax consultant for Mr Wu, a 40 year old Chinese National. He is an employee of a Chinese listed company posted to work in Singapore for a period of 180 days per year for the next consecutive three years, with effect from 1st January 2010. He owns two private residential properties in Singapore which have similar annual values. Both properties are currently tenanted and their 3-year tenure tenancies are expiring on 31st December 2010. He has renewed one of the two tenancies with the same terms and conditions as before. He intends to use one of the properties for his personal accommodation needs during his stay in Singapore. ACC213 Copyright 2012 SIM University Examination - July Semester 2012 Page 2 of 8 His personal, employment and expenditure details for the calendar year ended 31st December 2010 are forecasted as follows: Employment & Personal Details Description S$ Remarks Total remuneration 180,000 To remain unchanged till Year of Assessment 2015. Employer pays employee a fixed sum of S$5,000 per Total transport and month to cover all of employee's personal transport and accommodation 60,000 accommodation needs. All other travel, transport and allowances accommodation expenses incurred in the course of employment are fully reimbursed by the employer. Total rental income 240,000 Rental income derived from two identical properties. Fire insurance paid 5,000 For two identical private properties. MCST maintenance 20,000 For two identical private properties. paid Cost of tenancy 10,000 For one private property. renewal Cost of refurbishment 25,000 Incurred for his personal accommodation needs. Based on 400,000 stock options valued @ S$2 each awarded on 31st October 2006. Employee satisfied all vesting conditions imposed by employer as at 31st October 2009. Total value of stock 800,000 options awarded Employer does not impose selling restrictions. Employee exercised 200,000 stock options on 1st December 2010 when open market price of stock was S$6. Exercise price of stock option is S$2. Dependants n.a. No dependants a) Categorise Mr Wu's income into that which is taxable and that which is exempt. Estimate his tax payable for the Years of Assessment 2011 to 2014. (23 marks) b) Identify how he can reduce his overall tax liabilities for the Years of Assessment 2012 to 2014 without breaching the provisions of the Singapore Income Tax Act. (2 marks) All relevant supporting computations, schedules or assumptions must be shown for marks to be awarded. ACC213 Copyright 2012 SIM University Examination - July Semester 2012 Page 3 of 8 Question 3 To attract and retain foreign talent in Singapore, IRAS has implemented three schemes to assist them in reducing their overall tax liability while working in Singapore. These three schemes are the Area Representative Scheme, Dual Employment Scheme and Not Ordinary Resident Scheme. Jane is a 45 year old employee of a US multi-national corporation (\"the corporation\") listed on the New York Stock Exchange. She is the Head of Marketing for the corporation's Asia Pacific Region (\"Apac\"). She was posted to Singapore on 1st January 2010 to set up the corporation's regional headquarters. As such, she had spent more than 183 days in Singapore for the Year 2010. However, she is unsure if she would spend more than 183 days in Singapore for the subsequent year. You are the tax consultant for Jane. Her personal and employment details for the calendar year ended 31st December 2010 were as follows: Employment & Personal Details Description US$ Total remuneration Total hardship allowances Dependants Remarks Remuneration is credited into Jane's Citibank N.A. 240,000 account in New York, USA. Allowances are credited into Jane's Citibank N.A. account in New York, USA. Jane uses the allowances mainly for rent of a private 72,000 apartment and finance lease payments for a private car. All other expenditures incurred in the course of employment are fully reimbursed by the employer. Spouse is not a dependant. Sister is a dependant and is not employed. n.a. Two children: first child is 18 years old & married and second child is 5 years old. All dependants are able-bodied and staying together. Additional information: 1) She spent 100 days outside Singapore in YA2011 for business reasons and is expected to do so for YA2012. 2) Her posting to Singapore is expected to stretch beyond YA2016. 3) Average USD/SGD used by IRAS for Year 2010 is 1.2556. a) Demonstrate the calculation of Jane's income tax by: (i) Explaining which of the three schemes implemented by IRAS would she be under? Give a reason for your answer. (2 marks) (ii) If she qualifies for the scheme mentioned under part (i) in the year of assessment (YA) 2011 and subsequently fulfils the IRAS Administrative ACC213 Copyright 2012 SIM University Examination - July Semester 2012 Page 4 of 8 Concession, which is to be taxed at resident rate for YA2012 and YA2013, how would her income be taxed for YA2014 to YA2017 if she continues to work in Singapore for less than 183 days a year for YA2014 to YA2017? (2 marks) (iii) Estimate her tax payable for the Year of Assessment 2011. (11 marks) b) Alexandra is a freelance tax advisory who speaks at many tax forums and seminars. He was recently invited to Singapore to speak at a tax forum organised by the Singapore Tax Academy. He will be paid fees for speaking at the forum and per-diem allowances. On top of that, hotel accommodation for a week and airfare to Singapore will be provided. Demonstrate the calculation of his tax liability in Singapore, clearly stating what will be taxed and what tax benefits and concessions he can enjoy. (10 marks) All relevant supporting computations, schedules or assumptions must be shown for marks to be awarded. ACC213 Copyright 2012 SIM University Examination - July Semester 2012 Page 5 of 8 Question 4 Sally and Tammy started a retail business outlet together in the form of a partnership. Profits and losses are shared equally between them but Tammy does not draw a salary. Instead of taking a bank loan, capital was raised by borrowing from friends. In 2009, their business incurred a loss. Upon finalisation by the Comptroller, each partner's share of the business loss and unabsorbed capital allowances for YA 2010 was $5,200 and $4,500, respectively. Business improved in 2010, reflecting its performance in the following profit and loss account for the year ended 31 December 2010:$ Sales Less: COGS Gross profit Less: Expenses Depreciation Salary - Sally Telecom Postage Bad debts written off Interest - Borrowings Transport $ 45,000 (12,500) 32,500 5,200 4,500 400 230 340 1,200 750 12,620 Net profit 19,880 Separately, Sally also received other income from providing freelance business consultancy services of $6,500 during the year. Capital allowances for the year 2010 were calculated to be $12,500. Compute the allocation of profits to the partners in 2010 and the assessable income of Sally and Tammy. (25 marks) ----- END OF PAPER ----- ACC213 Copyright 2012 SIM University Examination - July Semester 2012 Page 6 of 8 Supplementary instructions The following information on personal reliefs and tax rebates can be used when answering the questions. Selected Personal Reliefs, Tax Rebates & Tax Rates for Year of Assessment 2011 1. Earned income relief: Age Below 55 years 55 to 59 years 60 years and above Normal $1,000 $3,000 $4,000 Handicapped $2,000 $5,000 $6,000 Normal $2,000 Handicapped $3,500 Normal $7,000 $4,500 Handicapped $11,000 $8,000 2. Spouse relief: Wife or husband 3. Parent/Handicapped Parent relief: Staying with Parent NOT staying with Parent 4. Married/Divorced/Widowed Woman Foreign Maid relief: Twice the amount of foreign maid levy paid in 2010 up to a maximum of $6,360 5. NSman relief: Key Appointment Holders Active NSman Non-active NSman $5,000 $3,500 Non-key Appointment Holders $3,000 $1,500 Key or Non-key Appointment Holders Spouse of operationally ready NSman Each parent of operationally ready NSman $750 $750 6. CPF relief: Employee Contribution Capped at $15,300 Employer Contribution $11,093 7. Life Insurance relief: Premiums paid on own life and wife's life insurance policies restricted to 7% of capital sum insured. No relief given if total employee's CPF contributions > $5,000. 8. Child relief: Qualifying child relief (QCR): each qualifying child Handicapped child relief (HCR): each qualifying child Working mother's child relief (WMCR): ACC213 Copyright 2012 SIM University Examination - July Semester 2012 $4,000 $5,500 Page 7 of 8 1st child 2nd child 3rd child and beyond Maximum per child (QCR/HCR + WMCR) Total WMCR capped at 15% of mother's earned income 20% of mother's earned income 25% of mother's earned income $50,000 100% of mother's earned income 9. Course Fees relief: Up to $5,500 for eligible fees incurred on courses studies or seminars and conferences attended 10. One-off Personal Tax rebate: All tax residents are granted an income tax rebate of 20%, capped at $2,000. This tax rebate is computed based on the tax payable after double taxation relief (DTR) and other credits, but before set-off of the Parenthood Tax Rebate. 11. Parenthood Tax rebate: 1st child 2nd child 3rd child and beyond $5,000 $10,000 $20,000 per child 12. Individual Income Tax rates: First $20,000 Next $10,000 First $30,000 Next $10,000 First $40,000 Next $40,000 First $80,000 Next $80,000 First $160,000 Next $160,000 First $320,000 Above $320,000 Rate (%) 0 3.5 5.5 8.5 14 17 20 Gross Tax Payable ($) 0 350 350 550 900 3,400 4,300 11,200 15,500 27,200 42,700 - ----- END OF SUPPLEMENTARY INSTRUCTIONS ----- ACC213 Copyright 2012 SIM University Examination - July Semester 2012 Page 8 of 8 Introduction Tutor name Contact details (e.g. email) - Self introduction - ACC213 Introduction to Income Tax and Goods & Services Tax January Semester 2013 Objective To provide an overview of Singapore's tax system To introduce Singapore's tax concepts and policies To develop skills for computing income tax for individuals and sole proprietorships To develop skills for accounting and computing goods & services tax To introduce other taxes imposed in Singapore Seminar Flow Study Unit 1 2 3 4 5 6 Topic Singapore's Tax System & Policy Legislative Framework for Taxation Tax Compliance in Singapore Key Income Tax Concepts Taxation of Individuals Taxation of Foreign Employees & Non-Resident Individuals Key Goods & Services Tax (\"GST\") Concept and Rules Assessment Process & Compliance Issues for GST GST Supplies & Output Tax Payable GST Credits & Reliefs and Input Tax Recoverable Other GST Issues Stamp Duty & Estate Duty Course Delivery Course material E-course guide Recommended text The course will follow closely to the relevant chapters of : \"Singapore Master Tax Guide Handbook 31st Edition\" Course presentation Self-study via online learning (Online or CD) 6 face-to-face seminars Working on an individual & group-based assignment Course Assessment Assessment TMA01 TMA02 Examination TOTAL Description Weight Allocation Individual-based assignment Group-based assignment Computations & short-answer questions 20% 30% 50% 100% Examination Students will be tested on all the topics covered in the seminars and e-Learning materials Students are advised to gain understanding of the subject progressively to avoid cramping at the eleventh hour Students are advised to put in the necessary effort in their individual and group-based assignments, and participate in discussions The examination is a 2-hour paper and all questions are compulsory Students are advised to refer to Blackboard for the examination format Grouping L01 Contains course material and instructions for individual & group-based assignments T01 For submission of all assignments and online discussion Communication All questions related to the course are to be posted in the general forum Students are to engage in the topical discussion forum Email (relating to the course but confidential matter) TMAs - Individual & Group-based These are tutor-marked assignments and not tutorassisted assignments Each individual and group must attempt the assignments and produce original content for their maximum benefit Tutor will not review the assignment in class with students nor entertain questions leading to required answers Tutor will only clarify questions if necessary Group-based Assignment Students are to form into groups consisting of 3 members All members of the group must be from the same T-group Groups must be formed immediately and nominate a group leader Group leaders must submit the names of all group members to the seminar instructor before the end of the second week Free Rider Any group member who contributes little or nothing to the group assignment is a free-rider There are rules which define acceptable behaviour amongst group members Group members are to alert the seminar instructor of free-riding incidence of any group member Presentation of Assignment Cover page Proper headings & titles Use of commas, numerical separators, currency units, etc. (e.g. S$1,000,000 and not 1000000) Proper formatting & indentation Referencing of all information sources Submission of Assignment Submitted in Word document format To include appropriate cover page, headings & titles for each answered question Excel, html, jpeg, etc. files are not to be inserted into the assignment Only \"black\" or \"blue\" font is allowed Referencing must be observed Warning! 10% of total marks are deducted for violations of the above Turn-it-in Turn-it-in is a tool for checking plagiarism or collusion All assignments and coursework by students must be submitted to Turn-it-in for plagiarism detection & grading. No hardcopy submission will be accepted. Referencing - acknowledgement of works and ideas taken from internet, textbooks, articles, etc. must be given Refer to student handbook for further details Singapore Tax System & Policy Study Unit 1 Singapore Tax System & Policy Overview of Singapore Tax System & Policy Government spending: government spends on key areas like education, public housing, national security, healthcare and building & maintaining physical & economic infrastructure & services. Government funding: government obtains funding from public sources of revenue, internal & external borrowings and printing of money (i.e. monetary & fiscal policies) o Monetary policy: influence the economy by controlling the supply of money to impact interest rates o Fiscal policy: relates to government borrowings, expenditures & taxation Singapore Tax System & Policy Fiscal Policy & its components Fiscal policy comprises of the following three main components implemented as part of the Budget o Debt management policy: management of public debt o Government revenue policy: for obtaining funding & how these funds are planned around/for government expenditure o Government expenditure policy: for the delivery of essential public goods & services Singapore Tax System & Policy Features of Singapore's Fiscal Policy Fair tax policies & prudent expenditure programs, resulting in healthy current account surpluses over the years High savings rate & one of the highest investment rates in the world without having to incur foreign debt High domestic savings Singapore's high level of foreign reserves which have serve to increase & maintain investors' confidence and as a buffer against adverse economic shocks Singapore Tax System & Policy Singapore Tax Policies Tax policies form an integral part of the government's revenue policy Main objectives of Singapore tax policies are: o Raising revenue o Promoting of social & economic goals o Enhancing the macroeconomic stability of Singapore's economy o Maintaining an internationally competitive tax structure & encouraging entrepreneurship o Building a broad tax revenue base (examples of common tax revenue are listed in the next slide) Singapore Tax System & Policy Government Operating Revenue Tax revenue o Income tax o Goods & Services tax o Property tax o Stamp duties o Casino tax o Betting tax o Motor vehicles tax o Customs & excise duties Fees & charges Other receipts Singapore Tax System & Policy Role of Taxation To encourage or deter certain activities Has an effect on the economy & its development As a form of government funding As a mechanism for the redistribution of wealth For the promotion of specific social & economic goals For the correction of market failures To fund government expenditure Legislative Framework for Taxation Overview of Singapore's Legislative Framework for Taxation Singapore's legislative framework for taxation is made up of: o Main tax statutues o Subsidiary legislation o E-Tax guides o Press statements o Case laws Legislative Framework for Taxation Main Tax Statutes The main tax statutes governing different taxes that are imposed in Singapore are: o Income Tax Act o Economic Expansion Incentives (Relief from Income Tax) Act o Property Tax Act o Goods & Services Tax Act o Stamp Duties Act o Casino Control Act o Betting & Sweepstake Duties Act o Private Lotteries Act Legislative Framework for Taxation Subsidiary Legislation The following are subsidiary legislations that supplement the main tax statutes: o Comprehensive tax treaties Are signed between the competent authorities of two contracting states Agree on the tax treatments of various types of income in either state Are for the purpose of clarifying tax treatments for certain cross-border tax transactions, relieving potential tax burdens and avoidance of double taxation Legislative Framework for Taxation Subsidiary Legislation (continued) The following are subsidiary legislations that supplement the main tax statutes: o International transport agreements o Income tax regulations, rules & orders Supplement the relevant sections of the various tax statutes Further stipulate, explain or clarify existing provisions of the various tax statutes Legislative Framework for Taxation IRAS E-Tax Guides & Press Statements Issued by the Inland Revenue Authority of Singapore E-tax guides are interpretations adopted by the IRAS on specific provisions in the tax statutes or subsidiary legislation Location of tax resources in the IRAS Website E-tax guides: > E-tax guides > \"Income Tax\Introduction Tutor name Contact details (e.g. email) - Self introduction - ACC213 Introduction to Income Tax and Goods & Services Tax January Semester 2013 Objective To provide an overview of Singapore's tax system To introduce Singapore's tax concepts and policies To develop skills for computing income tax for individuals and sole proprietorships To develop skills for accounting and computing goods & services tax To introduce other taxes imposed in Singapore Seminar Flow Study Unit 1 2 3 4 5 6 Topic Singapore's Tax System & Policy Legislative Framework for Taxation Tax Compliance in Singapore Key Income Tax Concepts Taxation of Individuals Taxation of Foreign Employees & Non-Resident Individuals Key Goods & Services Tax (\"GST\") Concept and Rules Assessment Process & Compliance Issues for GST GST Supplies & Output Tax Payable GST Credits & Reliefs and Input Tax Recoverable Other GST Issues Stamp Duty & Estate Duty Course Delivery Course material E-course guide Recommended text The course will follow closely to the relevant chapters of : \"Singapore Master Tax Guide Handbook 31st Edition\" Course presentation Self-study via online learning (Online or CD) 6 face-to-face seminars Working on an individual & group-based assignment Course Assessment Assessment TMA01 TMA02 Examination TOTAL Description Weight Allocation Individual-based assignment Group-based assignment Computations & short-answer questions 20% 30% 50% 100% Examination Students will be tested on all the topics covered in the seminars and e-Learning materials Students are advised to gain understanding of the subject progressively to avoid cramping at the eleventh hour Students are advised to put in the necessary effort in their individual and group-based assignments, and participate in discussions The examination is a 2-hour paper and all questions are compulsory Students are advised to refer to Blackboard for the examination format Grouping L01 Contains course material and instructions for individual & group-based assignments T01 For submission of all assignments and online discussion Communication All questions related to the course are to be posted in the general forum Students are to engage in the topical discussion forum Email (relating to the course but confidential matter) TMAs - Individual & Group-based These are tutor-marked assignments and not tutorassisted assignments Each individual and group must attempt the assignments and produce original content for their maximum benefit Tutor will not review the assignment in class with students nor entertain questions leading to required answers Tutor will only clarify questions if necessary Group-based Assignment Students are to form into groups consisting of 3 members All members of the group must be from the same T-group Groups must be formed immediately and nominate a group leader Group leaders must submit the names of all group members to the seminar instructor before the end of the second week Free Rider Any group member who contributes little or nothing to the group assignment is a free-rider There are rules which define acceptable behaviour amongst group members Group members are to alert the seminar instructor of free-riding incidence of any group member Presentation of Assignment Cover page Proper headings & titles Use of commas, numerical separators, currency units, etc. (e.g. S$1,000,000 and not 1000000) Proper formatting & indentation Referencing of all information sources Submission of Assignment Submitted in Word document format To include appropriate cover page, headings & titles for each answered question Excel, html, jpeg, etc. files are not to be inserted into the assignment Only \"black\" or \"blue\" font is allowed Referencing must be observed Warning! 10% of total marks are deducted for violations of the above Turn-it-in Turn-it-in is a tool for checking plagiarism or collusion All assignments and coursework by students must be submitted to Turn-it-in for plagiarism detection & grading. No hardcopy submission will be accepted. Referencing - acknowledgement of works and ideas taken from internet, textbooks, articles, etc. must be given Refer to student handbook for further details Singapore Tax System & Policy Study Unit 1 Singapore Tax System & Policy Overview of Singapore Tax System & Policy Government spending: government spends on key areas like education, public housing, national security, healthcare and building & maintaining physical & economic infrastructure & services. Government funding: government obtains funding from public sources of revenue, internal & external borrowings and printing of money (i.e. monetary & fiscal policies) o Monetary policy: influence the economy by controlling the supply of money to impact interest rates o Fiscal policy: relates to government borrowings, expenditures & taxation Singapore Tax System & Policy Fiscal Policy & its components Fiscal policy comprises of the following three main components implemented as part of the Budget o Debt management policy: management of public debt o Government revenue policy: for obtaining funding & how these funds are planned around/for government expenditure o Government expenditure policy: for the delivery of essential public goods & services Singapore Tax System & Policy Features of Singapore's Fiscal Policy Fair tax policies & prudent expenditure programs, resulting in healthy current account surpluses over the years High savings rate & one of the highest investment rates in the world without having to incur foreign debt High domestic savings Singapore's high level of foreign reserves which have serve to increase & maintain investors' confidence and as a buffer against adverse economic shocks Singapore Tax System & Policy Singapore Tax Policies Tax policies form an integral part of the government's revenue policy Main objectives of Singapore tax policies are: o Raising revenue o Promoting of social & economic goals o Enhancing the macroeconomic stability of Singapore's economy o Maintaining an internationally competitive tax structure & encouraging entrepreneurship o Building a broad tax revenue base (examples of common tax revenue are listed in the next slide) Singapore Tax System & Policy Government Operating Revenue Tax revenue o Income tax o Goods & Services tax o Property tax o Stamp duties o Casino tax o Betting tax o Motor vehicles tax o Customs & excise duties Fees & charges Other receipts Singapore Tax System & Policy Role of Taxation To encourage or deter certain activities Has an effect on the economy & its development As a form of government funding As a mechanism for the redistribution of wealth For the promotion of specific social & economic goals For the correction of market failures To fund government expenditure Legislative Framework for Taxation Overview of Singapore's Legislative Framework for Taxation Singapore's legislative framework for taxation is made up of: o Main tax statutues o Subsidiary legislation o E-Tax guides o Press statements o Case laws Legislative Framework for Taxation Main Tax Statutes The main tax statutes governing different taxes that are imposed in Singapore are: o Income Tax Act o Economic Expansion Incentives (Relief from Income Tax) Act o Property Tax Act o Goods & Services Tax Act o Stamp Duties Act o Casino Control Act o Betting & Sweepstake Duties Act o Private Lotteries Act Legislative Framework for Taxation Subsidiary Legislation The following are subsidiary legislations that supplement the main tax statutes: o Comprehensive tax treaties Are signed between the competent authorities of two contracting states Agree on the tax treatments of various types of income in either state Are for the purpose of clarifying tax treatments for certain cross-border tax transactions, relieving potential tax burdens and avoidance of double taxation Legislative Framework for Taxation Subsidiary Legislation (continued) The following are subsidiary legislations that supplement the main tax statutes: o International transport agreements o Income tax regulations, rules & orders Supplement the relevant sections of the various tax statutes Further stipulate, explain or clarify existing provisions of the various tax statutes Legislative Framework for Taxation IRAS E-Tax Guides & Press Statements Issued by the Inland Revenue Authority of Singapore E-tax guides are interpretations adopted by the IRAS on specific provisions in the tax statutes or subsidiary legislation Location of tax resources in the IRAS Website E-tax guides: > E-tax guides > \"Income Tax\Introduction Tutor name Contact details (e.g. email) - Self introduction - ACC213 Introduction to Income Tax and Goods & Services Tax January Semester 2013 Objective To provide an overview of Singapore's tax system To introduce Singapore's tax concepts and policies To develop skills for computing income tax for individuals and sole proprietorships To develop skills for accounting and computing goods & services tax To introduce other taxes imposed in Singapore Seminar Flow Study Unit 1 2 3 4 5 6 Topic Singapore's Tax System & Policy Legislative Framework for Taxation Tax Compliance in Singapore Key Income Tax Concepts Taxation of Individuals Taxation of Foreign Employees & Non-Resident Individuals Key Goods & Services Tax (\"GST\") Concept and Rules Assessment Process & Compliance Issues for GST GST Supplies & Output Tax Payable GST Credits & Reliefs and Input Tax Recoverable Other GST Issues Stamp Duty & Estate Duty Course Delivery Course material E-course guide Recommended text The course will follow closely to the relevant chapters of : \"Singapore Master Tax Guide Handbook 31st Edition\" Course presentation Self-study via online learning (Online or CD) 6 face-to-face seminars Working on an individual & group-based assignment Course Assessment Assessment TMA01 TMA02 Examination TOTAL Description Weight Allocation Individual-based assignment Group-based assignment Computations & short-answer questions 20% 30% 50% 100% Examination Students will be tested on all the topics covered in the seminars and e-Learning materials Students are advised to gain understanding of the subject progressively to avoid cramping at the eleventh hour Students are advised to put in the necessary effort in their individual and group-based assignments, and participate in discussions The examination is a 2-hour paper and all questions are compulsory Students are advised to refer to Blackboard for the examination format Grouping L01 Contains course material and instructions for individual & group-based assignments T01 For submission of all assignments and online discussion Communication All questions related to the course are to be posted in the general forum Students are to engage in the topical discussion forum Email (relating to the course but confidential matter) TMAs - Individual & Group-based These are tutor-marked assignments and not tutorassisted assignments Each individual and group must attempt the assignments and produce original content for their maximum benefit Tutor will not review the assignment in class with students nor entertain questions leading to required answers Tutor will only clarify questions if necessary Group-based Assignment Students are to form into groups consisting of 3 members All members of the group must be from the same T-group Groups must be formed immediately and nominate a group leader Group leaders must submit the names of all group members to the seminar instructor before the end of the second week Free Rider Any group member who contributes little or nothing to the group assignment is a free-rider There are rules which define acceptable behaviour amongst group members Group members are to alert the seminar instructor of free-riding incidence of any group member Presentation of Assignment Cover page Proper headings & titles Use of commas, numerical separators, currency units, etc. (e.g. S$1,000,000 and not 1000000) Proper formatting & indentation Referencing of all information sources Submission of Assignment Submitted in Word document format To include appropriate cover page, headings & titles for each answered question Excel, html, jpeg, etc. files are not to be inserted into the assignment Only \"black\" or \"blue\" font is allowed Referencing must be observed Warning! 10% of total marks are deducted for violations of the above Turn-it-in Turn-it-in is a tool for checking plagiarism or collusion All assignments and coursework by students must be submitted to Turn-it-in for plagiarism detection & grading. No hardcopy submission will be accepted. Referencing - acknowledgement of works and ideas taken from internet, textbooks, articles, etc. must be given Refer to student handbook for further details Singapore Tax System & Policy Study Unit 1 Singapore Tax System & Policy Overview of Singapore Tax System & Policy Government spending: government spends on key areas like education, public housing, national security, healthcare and building & maintaining physical & economic infrastructure & services. Government funding: government obtains funding from public sources of revenue, internal & external borrowings and printing of money (i.e. monetary & fiscal policies) o Monetary policy: influence the economy by controlling the supply of money to impact interest rates o Fiscal policy: relates to government borrowings, expenditures & taxation Singapore Tax System & Policy Fiscal Policy & its components Fiscal policy comprises of the following three main components implemented as part of the Budget o Debt management policy: management of public debt o Government revenue policy: for obtaining funding & how these funds are planned around/for government expenditure o Government expenditure policy: for the delivery of essential public goods & services Singapore Tax System & Policy Features of Singapore's Fiscal Policy Fair tax policies & prudent expenditure programs, resulting in healthy current account surpluses over the years High savings rate & one of the highest investment rates in the world without having to incur foreign debt High domestic savings Singapore's high level of foreign reserves which have serve to increase & maintain investors' confidence and as a buffer against adverse economic shocks Singapore Tax System & Policy Singapore Tax Policies Tax policies form an integral part of the government's revenue policy Main objectives of Singapore tax policies are: o Raising revenue o Promoting of social & economic goals o Enhancing the macroeconomic stability of Singapore's economy o Maintaining an internationally competitive tax structure & encouraging entrepreneurship o Building a broad tax revenue base (examples of common tax revenue are listed in the next slide) Singapore Tax System & Policy Government Operating Revenue Tax revenue o Income tax o Goods & Services tax o Property tax o Stamp duties o Casino tax o Betting tax o Motor vehicles tax o Customs & excise duties Fees & charges Other receipts Singapore Tax System & Policy Role of Taxation To encourage or deter certain activities Has an effect on the economy & its development As a form of government funding As a mechanism for the redistribution of wealth For the promotion of specific social & economic goals For the correction of market failures To fund government expenditure Legislative Framework for Taxation Overview of Singapore's Legislative Framework for Taxation Singapore's legislative framework for taxation is made up of: o Main tax statutues o Subsidiary legislation o E-Tax guides o Press statements o Case laws Legislative Framework for Taxation Main Tax Statutes The main tax statutes governing different taxes that are imposed in Singapore are: o Income Tax Act o Economic Expansion Incentives (Relief from Income Tax) Act o Property Tax Act o Goods & Services Tax Act o Stamp Duties Act o Casino Control Act o Betting & Sweepstake Duties Act o Private Lotteries Act Legislative Framework for Taxation Subsidiary Legislation The following are subsidiary legislations that supplement the main tax statutes: o Comprehensive tax treaties Are signed between the competent authorities of two contracting states Agree on the tax treatments of various types of income in either state Are for the purpose of clarifying tax treatments for certain cross-border tax transactions, relieving potential tax burdens and avoidance of double taxation Legislative Framework for Taxation Subsidiary Legislation (continued) The following are subsidiary legislations that supplement the main tax statutes: o International transport agreements o Income tax regulations, rules & orders Supplement the relevant sections of the various tax statutes Further stipulate, explain or clarify existing provisions of the various tax statutes Legislative Framework for Taxation IRAS E-Tax Guides & Press Statements Issued by the Inland Revenue Authority of Singapore E-tax guides are interpretations adopted by the IRAS on specific provisions in the tax statutes or subsidiary legislation Location of tax resources in the IRAS Website E-tax guides: > E-tax guides > \"Income Tax\Introduction Tutor name Contact details (e.g. email) - Self introduction - ACC213 Introduction to Income Tax and Goods & Services Tax January Semester 2013 Objective To provide an overview of Singapore's tax system To introduce Singapore's tax concepts and policies To develop skills for computing income tax for individuals and sole proprietorships To develop skills for accounting and computing goods & services tax To introduce other taxes imposed in Singapore Seminar Flow Study Unit 1 2 3 4 5 6 Topic Singapore's Tax System & Policy Legislative Framework for Taxation Tax Compliance in Singapore Key Income Tax Concepts Taxation of Individuals Taxation of Foreign Employees & Non-Resident Individuals Key Goods & Services Tax (\"GST\") Concept and Rules Assessment Process & Compliance Issues for GST GST Supplies & Output Tax Payable GST Credits & Reliefs and Input Tax Recoverable Other GST Issues Stamp Duty & Estate Duty Course Delivery Course material E-course guide Recommended text The course will follow closely to the relevant chapters of : \"Singapore Master Tax Guide Handbook 31st Edition\" Course presentation Self-study via online learning (Online or CD) 6 face-to-face seminars Working on an individual & group-based assignment Course Assessment Assessment TMA01 TMA02 Examination TOTAL Description Weight Allocation Individual-based assignment Group-based assignment Computations & short-answer questions 20% 30% 50% 100% Examination Students will be tested on all the topics covered in the seminars and e-Learning materials Students are advised to gain understanding of the subject progressively to avoid cramping at the eleventh hour Students are advised to put in the necessary effort in their individual and group-based assignments, and participate in discussions The examination is a 2-hour paper and all questions are compulsory Students are advised to refer to Blackboard for the examination format Grouping L01 Contains course material and instructions for individual & group-based assignments T01 For submission of all assignments and online discussion Communication All questions related to the course are to be posted in the general forum Students are to engage in the topical discussion forum Email (relating to the course but confidential matter) TMAs - Individual & Group-based These are tutor-marked assignments and not tutorassisted assignments Each individual and group must attempt the assignments and produce original content for their maximum benefit Tutor will not review the assignment in class with students nor entertain questions leading to required answers Tutor will only clarify questions if necessary Group-based Assignment Students are to form into groups consisting of 3 members All members of the group must be from the same T-group Groups must be formed immediately and nominate a group leader Group leaders must submit the names of all group members to the seminar instructor before the end of the second week Free Rider Any group member who contributes little or nothing to the group assignment is a free-rider There are rules which define acceptable behaviour amongst group members Group members are to alert the seminar instructor of free-riding incidence of any group member Presentation of Assignment Cover page Proper headings & titles Use of commas, numerical separators, currency units, etc. (e.g. S$1,000,000 and not 1000000) Proper formatting & indentation Referencing of all information sources Submission of Assignment Submitted in Word document format To include appropriate cover page, headings & titles for each answered question Excel, html, jpeg, etc. files are not to be inserted into the assignment Only \"black\" or \"blue\" font is allowed Referencing must be observed Warning! 10% of total marks are deducted for violations of the above Turn-it-in Turn-it-in is a tool for checking plagiarism or collusion All assignments and coursework by students must be submitted to Turn-it-in for plagiarism detection & grading. No hardcopy submission will be accepted. Referencing - acknowledgement of works and ideas taken from internet, textbooks, articles, etc. must be given Refer to student handbook for further details Singapore Tax System & Policy Study Unit 1 Singapore Tax System & Policy Overview of Singapore Tax System & Policy Government spending: government spends on key areas like education, public housing, national security, healthcare and building & maintaining physical & economic infrastructure & services. Government funding: government obtains funding from public sources of revenue, internal & external borrowings and printing of money (i.e. monetary & fiscal policies) o Monetary policy: influence the economy by controlling the supply of money to impact interest rates o Fiscal policy: relates to government borrowings, expenditures & taxation Singapore Tax System & Policy Fiscal Policy & its components Fiscal policy comprises of the following three main components implemented as part of the Budget o Debt management policy: management of public debt o Government revenue policy: for obtaining funding & how these funds are planned around/for government expenditure o Government expenditure policy: for the delivery of essential public goods & services Singapore Tax System & Policy Features of Singapore's Fiscal Policy Fair tax policies & prudent expenditure programs, resulting in healthy current account surpluses over the years High savings rate & one of the highest investment rates in the world without having to incur foreign debt High domestic savings Singapore's high level of foreign reserves which have serve to increase & maintain investors' confidence and as a buffer against adverse economic shocks Singapore Tax System & Policy Singapore Tax Policies Tax policies form an integral part of the government's revenue policy Main objectives of Singapore tax policies are: o Raising revenue o Promoting of social & economic goals o Enhancing the macroeconomic stability of Singapore's economy o Maintaining an internationally competitive tax structure & encouraging entrepreneurship o Building a broad tax revenue base (examples of common tax revenue are listed in the next slide) Singapore Tax System & Policy Government Operating Revenue Tax revenue o Income tax o Goods & Services tax o Property tax o Stamp duties o Casino tax o Betting tax o Motor vehicles tax o Customs & excise duties Fees & charges Other receipts Singapore Tax System & Policy Role of Taxation To encourage or deter certain activities Has an effect on the economy & its development As a form of government funding As a mechanism for the redistribution of wealth For the promotion of specific social & economic goals For the correction of market failures To fund government expenditure Legislative Framework for Taxation Overview of Singapore's Legislative Framework for Taxation Singapore's legislative framework for taxation is made up of: o Main tax statutues o Subsidiary legislation o E-Tax guides o Press statements o Case laws Legislative Framework for Taxation Main Tax Statutes The main tax statutes governing different taxes that are imposed in Singapore are: o Income Tax Act o Economic Expansion Incentives (Relief from Income Tax) Act o Property Tax Act o Goods & Services Tax Act o Stamp Duties Act o Casino Control Act o Betting & Sweepstake Duties Act o Private Lotteries Act Legislative Framework for Taxation Subsidiary Legislation The following are subsidiary legislations that supplement the main tax statutes: o Comprehensive tax treaties Are signed between the competent authorities of two contracting states Agree on the tax treatments of various types of income in either state Are for the purpose of clarifying tax treatments for certain cross-border tax transactions, relieving potential tax burdens and avoidance of double taxation Legislative Framework for Taxation Subsidiary Legislation (continued) The following are subsidiary legislations that supplement the main tax statutes: o International transport agreements o Income tax regulations, rules & orders Supplement the relevant sections of the various tax statutes Further stipulate, explain or clarify existing provisions of the various tax statutes Legislative Framework for Taxation IRAS E-Tax Guides & Press Statements Issued by the Inland Revenue Authority of Singapore E-tax guides are interpretations adopted by the IRAS on specific provisions in the tax statutes or subsidiary legislation Location of tax resources in the IRAS Website E-tax guides: > E-tax guides > \"Income Tax\ACC213 Introduction to Income Tax Study Guide (5CU) Course Development Team Head of Programme : A/P Chan Yoke Kai Course Developer : Mr Goh Seng Kuan Production : Educational Technology & Production Team Curriculum Administration Team 2013 SIM University. All rights reserved. No part of this material may be reproduced in any form or by any means without permission in writing from the Educational Technology & Production, SIM University. Educational Technology & Production SIM University 535A Clementi Road Singapore 599490 First Print @ July 2013 Reprint @ January 2014 - July 2014 CONTENTS SECTION 1: COURSE GUIDE 1.1 Introduction .....................................................................................................1 1.2 Course Description and Aims .......................................................................2 1.3 Learning Outcomes ........................................................................................ 2 1.4 Overall Assessment ........................................................................................ 3 1.5 Learning Materials .......................................................................................... 4 SECTION 2: STUDY UNITS STUDY UNIT 1 Objectives SU1-1 Overview SU1-1 Chapter 1: Singapore Tax System and Policy SU1-2 1.1 Overview of Singapore Tax System and Policy 1.2 Fiscal Policy and its Components 1.3 Tax Policy 1.4 Government Operating Revenue 1.5 Role of Taxation Chapter 2: Legislative Framework for Taxation SU1-10 2.1 Overview of Legislative Framework for Taxation 2.2 Main Tax Statutes 2.3 Subsidiary Legislation 2.4 IRAS e-Tax Guides and Press Statements 2.5 Case Laws Summary SU1-13 Solutions SU1-14 STUDY UNIT 2 Objectives SU2-1 Overview SU2-1 Chapter 3: Tax Compliance in Singapore SU2-2 3.1 Introduction to Tax Compliance and Taxpayers' Profiles 3.2 IRAS Compliance Strategy Framework 3.3 IRAS Voluntary Compliance and Disclosure 3.4 Tax Administration in Singapore 3.5 Tax Evasion and Avoidance Chapter 4: Key Income Tax Concepts SU2-17 4.1 Tax System 4.2 Tax Year and Basis Period 4.3 Determining Taxable Income 4.4 Tax Entities 4.5 Tax Residence 4.6 Tax Rates Summary SU2-24 Solutions SU2-25 STUDY UNIT 3 Objectives SU3-1 Overview SU3-1 Chapter 5: Taxation of Individuals SU3-2 5.1 Key Concepts 5.2 Sole Proprietorship 5.3 Foreign Employees Working in Singapore 5.4 Computation of Income Tax Liabilities 5.5 General Deductions 5.6 Sources of Income 5.7 Personal Reliefs Chapter 6: Taxation of Foreign Employees and Non-Resident Individuals SU3-14 6.1 Area Representative Scheme 6.2 Dual Employment 6.3 Not Ordinarily Resident Scheme 6.4 Taxation of Non-Resident Individuals Summary SU3-23 Solutions SU3-24 STUDY UNIT 4 Objectives SU4-1 Overview SU4-1 Chapter 7: Goods and Services Tax Concepts and Rules SU4-2 7.1 Introduction to GST 7.2 Rationale for GST Implementation 7.3 Overall Framework of GST 7.4 Imposition and Scope of GST 7.5 Concept and Rules of a GST Supply 7.6 Rules for \"Timing\" of a GST Supply 7.7 Rules for \"Place\" of a GST Supply 7.8 Rate of GST 7.9 Rules for \"Value\" of a GST Supply Chapter 8: Goods and Services Tax Assessment and Compliance SU4-9 8.1 GST Registration 8.2 Computing Taxable Turnover for GST Registration 8.3 Penalties and Measures for Late GST Registration 8.4 Voluntary GST Registration 8.5 Common Forms for GST Return and Administration 8.6 GST Reporting and Payment/Refund Process 8.7 Compliance Obligations of a GST-Registered Business Summary SU4-18 Solutions SU4-20 STUDY UNIT 5 Objectives SU5-1 Overview SU5-1 Chapter 9: Goods and Services Tax Supplies and Output Tax Payable SU5-2 9.1 Standard-Rated Supplies 9.2 Zero-Rated Supplies 9.3 Exempt Supplies 9.4 Out-of-Scope Supplies 9.5 Accounting and Administrative Requirements for Charging GST Chapter 10: Goods and Services Tax Credits and Reliefs, and Input Tax Recoverable SU5-11 10.1 Claiming Input Tax 10.2 Accounting and Administrative Requirements for Claiming GST Credits (Input Tax) 10.3 GST Reliefs Summary SU5-18 Solutions SU5-20 STUDY UNIT 6 Objectives SU6-1 Overview SU6-1 Chapter 11: Other Goods and Services Tax Issues SU6-2 11.1 GST Scenarios 11.2 Foreign Currency Denominated Transactions for GST 11.3 GST Accounting Framework for a Trading Business Chapter 12: Stamp Duty and Estate Duty SU6-13 12.1 What is Stamp Duty 12.2 Types of Instruments and Rates of Stamp Duty 12.3 Denoting a Payment of Stamp Duty 12.4 Administration of Stamp Duty 12.5 Penalty for Late Payment of Stamp Duty 12.6 Remission, Relief and Exemption from Stamp Duty 12.7 Adjudication 12.8 Objections and Appeals 12.9 Estate Duty Summary SU6-23 Solutions SU6-24 ACC213 Introduction to Income Tax COURSE GUIDE ACC213 INTRODUCTION TO INCOME TAX COURSE GUIDE SECTION 1: COURSE GUIDE 1.1 Introduction Welcome to your study of ACC213 Introduction to Income Tax, a five-credit unit (CU) course. This Study Guide is divided into two sections - the Course Guide and Study Units. The Course Guide provides a structure for the entire course. As the phrase implies, the Course Guide aims to guide you through the learning experience. In other words, it may be seen as a roadmap through which you are introduced to the different topics within the broader subject. This Guide has been prepared to help you understand the aims and learning outcomes of the course. In addition, it explains how the various materials and resources are organised and how they may be used, how your learning will be assessed, and how to get help if you need it. Course Schedule To help monitor your study progress, you should pay special attention to your Course Schedule. It contains study unit related activities including Assignment, self-evaluations, and examinations. Please refer to the Course Timetable in the Student Portal for the updated Course Schedule. NOTE: You should always make it a point to check the Student Portal for any announcements and latest updates. You need to ensure you fully understand the contents of each Study Unit listed in the Course Schedule. You are expected to complete the suggested activities independently and/or in groups. It is imperative that you read through your Assignment questions and submission instructions before embarking on your Assignment. It is also important you comprehend the Overall Assessment Weighting of your course. This is listed in Section 1.4 of this Guide. Manage your time well so you can meet given deadlines and do regular revisions after completing each unit of study. They will help you retain the knowledge garnered and prepare you for any required formal assessment. If your course requires an end-of-semester examination, do look through the Specimen or Past Year Exam Paper which is available on MyUniSIM. Although flexible learning - learning at your own pace, space and time - is a hallmark at UniSIM, you are encouraged to engage your instructor and fellow students in online discussion forums. A sharing of ideas through meaningful debates will help broaden your learning and crystallise your thinking. SIM UNIVERSITY 1 COURSE GUIDE ACC213 INTRODUCTION TO INCOME TAX 1.2 Course Description and Aims ACC213 Introduction to Income Tax aims to provide students with a broad overview of the Income Tax and the Goods and Services Tax (\"GST\") systems in Singapore. Students will be introduced to tax formulation policies and h