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ACCA > General > Flashcards

General Flashcards

1
Q

Explain the conditions for group relief to be effected

A

1.Have accounting period ending on the same day.
2. Must make a joint election by submitting form GR-A (by transferor company) and form GR-B (by claimant company).
3.The transferor and claimant companies are memebers of the same group on the LAST DAY OF BASIS PERIOD. For group relief purposes, members of the same group refer to TWO SG INCORPORATED companies where:
a, At least 75% of the ordinary share capital in one company is beneficially held, directly or indirectly, by the other, or
b,At least 75% or the ordinary share capital in each of the two companies is beneficially held, directly or indirectly by a third SG incorporated company

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2
Q

Relevant date to carry forward

A

YA 2021 c/f YA 2022
1st relevant 2nd relevant
CA 31 Dec 21 1 Jan 2022
Loss+D 31 Dec 20 1 Jan 2022

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3
Q

Relevant date to c/b

A

YA2021 c/b YA2020
1st relevant 2nd relevant
CA 1Jan 21 31 Dec 2020
Adj loss 1 Jan 20 31 Dec 2020

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4
Q

What constitutes “contributed capital” in the context of partner of a LLP

A

The contributed capital of a partner of LLP is the aggregate of:

  1. The amount which the partner has contributed to the LLP (in cash or in kind) but not including any loan made by the partner to the LLP as capical, and has not,directly or indirectly, been withdrawn or returned to the partner (whether as a distribution or a loan or otherwise)
  2. The amt of profit or gains derived by LLP from any past year of assessment to which the partner is entitled but which the partner has not received (whether as a distribution or loan or otherwise)
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5
Q

Director fee is for year ended 30 Nov 2019 and was approved for payment on 30 Apr 2020 is taxable when?

A

YA 2021 (based on approved payment date)

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6
Q

What is earned income for working mother relief

A

Earned income:

  • Employment
  • Pension
  • Trade, biz, profession, vocation
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7
Q

Rental income-when taxable

A

It is taxable from the date it is due and payable to the property owner, and not the date of actual receipt.

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8
Q

Rental exp : Repair and maintenance, which is deductible, which is not

A
  1. CAN DEDUCTIBLE
    - Repair:Repairs done during the rental period to restore the property to its original state.
    - Maintenance:Cost of maintaining the property (e.g. painting, pest control, monthly maintenance charges [including late payment charges^] to management corporations).
  2. CAN’T
    - Cost of initial repairs.
    - Repairs done which result in improvement/additions and alterations.
    - Repairs incurred outside rental period.
    - Cost of renovation, additions, alterations to the property (e.g. extension of car porch, construction of drains, cementing of walls and floors, installation of window grilles)
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9
Q

Note for QCR/HCR relief and working mother child relief

A
  1. Claim QCR/HCR first, followed by MWCR.
  2. Cap: QCR/HCR + MWCR =$50000
  3. MWCR is based on mother earned income:
    - Employment (director fee,etc)
    - Pension
    - Profession,trade,biz,vocation
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10
Q

Cách trình bày của Adjusted profit, CA và investment income

A
  1. Adjusted profit
  2. LESS CAPITAL ALLOWANCE
  3. Add investment income
    - > SI
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11
Q

Medical & exp includes:

A
  • Maternity health care (thai san)
  • Natal care,preventive and therapeutic treatment expenses
  • Provision of medical clinic by the employer
  • Cash allowance in lieu of medical expenses
  • Premium incurred on medical and detal insurance and
  • Employer’s contributions to employee’s CPF medisave account, subject to a maximum deduction of $2730 for that year for each employee
  • Dental expenses
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12
Q 
Deductibility of pre-commencement exp.
Commence in 2018 -> exp
In 2019-> exp
First dollar in 2020->exp
->How much exp deductible?
A

YA 2021 + YA 2020
Noted:
-Generally, count from the first dollar
-Concession (2003):The 1st day of accounting year in which biz earns its 1st dollar->regarded as the day the biz start trading
-Concession (2011):Enhancement to concession:Exp incurred in the accounting year immediately preceding,the deemed date of commencement is allowed with effect from YA2012.

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13
Q

Parent relief- how many dependant

Caregiver relief- how many dependant

A
  • Parent relief:may claim Parent Relief/Handicapped Parent Relief for up to 2 dependants.
  • Caregiver: Only can claim 1 caregiver (other condition is: mother is working)
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14
Q

Which one sleeping partners can claim for earned income from these item?

  • Employment income
  • Share profit of partnership
  • Rental income
A

Only can claim based on emloyment income, NOT INCLUDE SHARE PROFIT FROM PARTNERSHIP

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15
Q

Withholding tax penalty

A

-A 5% late payment penalty will be imposed if payment is not received by the due date.
-If the tax remains unpaid 30 days AFTER THE PAYMENT DUE DATE, an additional penalty of 1% per month may be imposed for every completed month, up to a maximum of 15% of the unpaid tax, that the tax remains unpaid.
Example:Due 15/9 but only pay on 16/11
->due on 15/9: 5%
->from 15/10-15/11: 1%

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16
Q

GST

  • What type of motor car is blocked?
  • Design fee paid to oversea designer.
A

1.MOTORCAR
The cost and running expenses of a motor car (except for Q-plated cars with COE issued before 1 Apr 1998) are disallowed expenses under Regulation 27 of the GST (General) Regulations. Hence, the GST incurred on the purchase and running expenses (e.g. petrol and parking expenses) of a motor car is NOT claimable.
-OTHER MOTOR VEHICLE
For other motor vehicles (e.g. LORRY, VAN and MOTORCYCLE) that do not fall under the definition of a ‘motor car’, the GST incurred for the purchase and running expenses of the motor vehicles are claimable, subject to the conditions for input tax claim.
2.Design fee->oversea supplier: Out of scope

17
Q

What type of GST for: expenses for rental of unfurnished apartment for staff?

A

Exempt

18
Q

Payment to vendor Q to obtain master file of music videos to enable ZPL to make copies of the videos for onward distribution to end customers

A

Withholding tax applies as this is a royalty payment for the right to commercially exploint the copyright in the music videos.
The withholding tax payable is $5000 ($50000 x 10%)

19
Q

Explain what constitutes the”date of payment” when complying with the Singapore withholding tax obligations

A

As the earlies of the following dates:

  1. When the pym is due and payable based on the agreement of the contract or the date of the invoice in the absence of any agreement or contract (credit term should not be taken into consideration)
  2. When payment is credited to the account of non-resident or any other account(s) designated by the non-resident.
  3. The date of actual payment
20
Q

Income tax paid for executive director is deductible or not?

A

Deductible

Vì có concession mà cô lsbf cũng từng nói

21
Q

Rental expensed-which is deductible, which is not?

A
  1. Deductible:
    - Replacement (Mock exam 5 has “replacing an air-conditioning”
    - Hiring of furniture
  2. Not Deductible:
    - Depreciation
    - New improvement,addition to furniture
22
Q

State the conditions for start-up tax exemption on the first $200000

A

1.Applicable for the first 3 consecutive years of assessment after incorporation
2.Is a Singapore incoporated company
3.Is a tax resident in SG for that year of assessment.
4.Company have no more than 20 shareholders throughout the basis period for that year of assessment, where:
-All of shareholders are individuals and directly holding the shares in their own names.
Or at least one shareholder is an individual beneficially and directly holding at least 10% of the issued ordinary shares of the company.
5.Company which is incorporated after 25/02/2013 must not be a property developer company or an investment holding company

23
Q

Dễ nhầm:

A

Sleeping partner và salary partner

Earn income relief không có vẫn phải liệt kê 0

24
Q

Acommodation owned by employer, give to employee

A
  • Unfurnished: No additional
  • Partially furnished: Add 40% x AV
  • Fully furnished: Add 50% x AV
25
Q

Condition for exemption from filing estimated chargeable income (ECI)

A
  1. Annual revenue is not more than 5 million for the financial year
  2. ECI is nil for the year of assessment (BEFORE deducting the partial tax exemption)
26
Q

Tax avoidance and Tax evasion

A
  1. Tax evasion: Fictionous
  2. Tax avoidance:
    - Multiple entry for sole purpose
    - Attribution of income that not reflect the economic arrangement.
    - Involves a circular flow or round tripping of funds
27
Q

CPF khác nhau giữa cách tính taxable và cách tính CPF

A
  • Taxable căn cứ vào contractual,non-contractual

- CPF: căn cứ vào số tiền thực nhận

28
Q

Note for investment holding company S10E and Hold investment for long term

A

-Same: S10(1)(a) loss - forfeited
-Diff:
S10E: Unabsorbed CA-forfeited
Hold investment for long term:No CA

29
Q

De minimis rule

A

2 conditions must be satisfied:

  • The value of exempt supplies is less than 5% of the total value of TAXABLE AND EXEMPT SUPPLIES
  • AND the average value of exempt supplies is less than $40000 per month
30
Q

Which one required to prepare SG transfer pricing for YA2021

  1. Purchase of raw material from its Indonesian subsidiary with 5% mark up on cost: $10 ml
  2. Gross revenue from sale of finished tyres to its Hong Kong parents company with 5% mark-up on cost
A

Answer: 2
Because: an exemption applies where the SG tax payer’s gross turn over in the year of assessment 2021 is below $10 ml or where the sale Or purchase of goods from a related party is below $15 ml.
So the $15ml value threshold is applied separately to FTP’s subsidiary and Hong Kong parent.

31
Q

For investment holding company, how much is deductible exp if gross investment income of $22000
Director fee: $1000
Office rental and utilities: $2000

A

->Answer: 1100

As cap deductibility for common exp=5%x22000 = 1100

32
Q

Three month’s salary in lieu of notice is taxable or not?

A

Yes

33
Q

Do they affect remuneration and medical exp?

  • Air tickets for expatriate
  • Company received $29000 in respect of gov paid childcare and maternity leave
A

No

ACCA (12 decks)

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