Year of Assessment

WEALTH ACCUMULATION -RETIREMENT PLANNING

Amanda expects to retire at age 62.

WEALTH GIVING –ESTATE PLANNING

Amanda and her husband Brad live at Pine Grove Condo, a leasehold property at Pine Grove Road. The property is registered under Amanda’s name.

Amanda Li’s 2nd sister, Sandra who is 38 years of age, is a private banker with Supreme Bank.

Amanda had written a Will prior to her marriage to Brad and had nominated her parents as nominees for her CPF monies.

Question 1– WEALTH PROTECTION- TAX PLANNING

(a) Identify and explain to Amanda Li which of her following incomes will be subjected to tax in Year of Assessment 2017.

(i) Director’s Fees of S$100,000

(ii) Runway model assignment income of S$85,000 from Hong Kong modelling company

(iii) Lecturing income of S$45,000

(iv) Big Sweep winning of S$150,000 (12 marks)

(b) Compute Amanda Li’s tax liabilities for the Royalty income. ( 8 marks)

(c) Determine Amanda Li’s income from the two properties for the Year of Assessment 2017. (10 marks)

(d) Calculate the amount of Share Option benefit assessable on Amanda Li. (6 marks)