Test 1 Multiple Choice Questions. F6 - Taxation

Transcription

1 Test 1 Multiple Choice Questions F6 - Taxation Ms. Yvonne Goh Name - Student ID - ID - Please write answers in the below given column. Question No Answer Score: /10

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3 1. Dan, a foreigner is a management consultant who runs his own consultancy firm in Country A. He was in Singapore providing consultancy services to a Singapore company from 2 November 2014 to 7 May Which of the following correctly describes Dan s residency status for the years of assessment 2015 and 2016? (a) Dan will be a resident for both YA 2015 and YA 2016 (b) Dan will be a non-resident for both YA 2015 and YA 2016 (c) Dan will be a resident in YA 2015 and a non-resident in YA 2016 (d) Dan will be a non-resident in YA 2015 and a resident in YA Which of the following will determine the tax residency of a company? (a) The tax residency of the directors (b) The location where the company operates its business (c) The place of incorporation (d) The location where the directors board meetings are held 3. Employers who employ non-citizen employee who is ceasing employment has the obligation to withhold outstanding money owing to employee. How long must employers withhold the outstanding money? (a) Until clearance from the IRAS is received (b) Until the earlier of 14 days from the submission of IR21 or IRAS clearance received. (c) Until the earlier of 30 days from the submission of IR21 or IRAS clearance received. (d) Until the earlier of 1 month from the submission of IR21 or IRAS clearance received. Yvonne Goh (July 2014) Page 1

4 4. XYZ Pte Ltd is a company incorporated in Singapore with a 30 June year-end. During the year ended 30 June 2015, XYZ made the following cash donations Singapore Red Cross Society, an institution of public character :- - Cash of $15,000 was donated on 30 September Cash of $10,000 was donated on 15 April 2015 and this is specifically for the rebuilding of houses in Country A which were destroyed due to an earthquake. What is the amount of approved donations that can be granted a deduction? (a) $37,500 (b) $45,000 (c) $62,500 (d) $75, Quality Garage & Co. incurred $5,000 during the year to purchase new loose tools and another $2,000 to replace old loose tools. What is the amount of deduction Quality Garage & Co. can claim for tax purposes? (a) $5,000 (b) $2,000 (c) $7,000 (d) $3,000 Yvonne Goh (July 2015) Page 2

5 6. Co. A is a manufacturing company which provides warranty to its customers for the products manufactured. For the current financial year, Co. A incurred a total of $3,500 on warranty repairs which was charged to the Profit and loss account. At the end of the financial year, the accountant provided an additional provision for warranty of $5,000. What is the adjustment to be made when preparing the computation with a view to determine the Adjusted Profit for Co. A? (a) No Adjustment (b) Add back $5,000 (c) Deduct $3,500 (d) Add back $1, Consult Pte Ltd., a consultancy company owned wholly by John acquired a residential property for investment purposes many years ago. In the year ended 31 December 2015, a net rental loss of $12,000 was incurred. Which of the following statement reflects the correct tax treatment? (a) Consult Pte Ltd can set-off the $12,000 against its consultancy revenue. (b) Consult Pte Ltd can carry forward the $12,000 to set-off future net rental income (c) John can set-off the $12,000 against his personal other income (d) The $12,000 will be forfeited Yvonne Goh (July 2015) Page 3

6 8. The following assets were purchased in YA 2016: $ Computers 60,000 Two Delivery Vans 180,000 5 work stations 20,000 Assume maximum capital allowance is to be claimed, determine the total CA for YA 2016? (a) $86,667 (b) $140,000 (c) $306,667 (d) $320, Singco purchased a machine in the year ended 30 September 2013 for S$90,000. In the year ended 30 September 2015, Singco traded in the machine at its net book value of $36,000 for a new machine which costs $120,000. Determine the YA 2016 net allowance claim for the above transactions. (a) $28,000 (b) $34,000 (c) $38,000 (d) $40,000 Yvonne Goh (July 2015) Page 4

7 10. BT Pte Ltd which has a financial year-end 30 June, was incorporated in Singapore on 5 August 2011 to carry on trading operations. It commenced business on 13 July In the year ended 30 June 2015, all the board meetings were held in Singapore. The shareholders of BT Pte Ltd were Peter and John who holds 80% and 20% of the share capital respectively. Which of the following statements correctly reflects the exemption and CIT rebate claims for BT Pte Ltd in the year of assessment 2016? (a) BT Pte Ltd can claim new start-up exemption and CIT rebate in YA 2016 (b) BT Pte Ltd can claim partial exemption and CIT rebate in YA 2016 (c) BT Pte Ltd can claim new start-up exemption but not CIT rebate in YA 2016 (d) BT Pte Ltd can claim partial exemption but not CIT rebate in YA 2016 Yvonne Goh (July 2015) Page 5