Ms. Catherine Works in a Beauty Salon as a Beautician. During the Year 2018: Taxation Assignment, KU, Singapore

1. Ms. Catherine works in a beauty salon as a beautician. During the year 2018, in addition to her base salary, Catherine received the following amounts:

1. Salary for the year $30,000
2. Contractual Bonus for the year 2018 but not paid as of 31 Dec 2018, $3,000
3. Personal tips from customers $8,000
4. The compensation received from a customer who wrongly accused Catherine of a failed beauty procedure $20,000
5. Alimony received from ex-spouse $6,000
6. Attended a beautician certification course and paid out of pocket, $1,000

Compute Catherine’s tax liability for the year of assessment 2019 with detailed workings?

2. Ms. Sim took out a bank loan on 1 January 2018 to buy a residential apartment unit for rental purposes. The apartment obtained its temporary occupation permit on 1 April 2018 and was rented out on the same day. Sim’s income and expenses relating to the rental apartment in the year 2018 are as follows:

Sim always calculates her rental income using the most beneficial method.

Compute Sim’s tax liability for the year of assessment 2019 with detailed workings?

3. Mr. Ted, aged 45, is a United States (US) citizen who relocated to Singapore to work for U Singapore Pte Ltd (USPL) on 1 April 2018. USPL is a wholly-owned subsidiary of U Inc. Ted’s remuneration package in 2018 included the following:

Notes:

1. USPL rented a fully furnished apartment at a monthly rental cost of $8,000. The annual value of the apartment is $50,000. Ted paid a monthly rental contribution of $500 to USPL.
2. Birthday gifts are given to all USPL employees.

In addition to his employment income, Ted received the following income in 2018:

Required:

Compute Ted’s Tax Liability for the year of assessment 2019.

4. Briefly explain any TWO deductible and TWO non-deductible business expenses as per IRAS with suitable examples for each.