This paper circulates around the core theme of Managing Your Personal Finances together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
CASE STUDY
Leonard Ong, a Singaporean, is a Vice President at a large MNC and lives in a Thomson Road
condominium with a market value of S$1,350,000.
WEALTH PRESERVATION - TAX PLANNING
Leonard Ong received the following in 2015:
1. He was seconded to work in Vietnam for 9 months in 2014. For his work in Vietnam
he received a salary of S$230,000 through a Singapore Bank.
2. He owns a property in Australia which is rented out. After deducting the relevant
expenses, he remitted an amount of S$25,000 from Australia to his bank account in
Singapore.
3. He has also been appointed as a part-time lecturer for a private educational institution
in Singapore. All income earned by him is directly banked into the Standard Chartered
Bank, London, and is used by his sister who is studying in London. His annual lecturing
income amounts to S$45,000.
4. He recently won S$150,000 in a Big Sweep draw during the year 2015.
5. He has written a book for which he received royalty income in 2015. The following
breakdown is as follows:
He has bought 2 other properties in his name which are currently rented out. Property
2 was vacant for 3 months. The details of his property investments are as follows:
He has bought 2 other properties in his name which are currently rented out. Property
2 was vacant for 3 months. The details of his property investments are as follows
He has two broken marriages and intends to marry his 3rd wife, Koh Wai Eng, in
August 2016 with whom he has an illegitimate child, Daphne, aged 2 years. He
currently pays alimony of S$200 a month to his 1st ex-wife and S$150 a month to his
2nd ex-wife. His current wife does not work.
Question 1
(a) Identify and explain to Leonard Ong which of his following income will be subjected
to tax in Year of Assessment 2016.
(i) Employment Income of S$230,000.
(ii) Rental Income of S$25,000 from Australia property.
(iii) Lecturing Income of S$45,000.
(iv) Big Sweep winning of S$150,000.
(b) Compute Leonard Ong’s tax liabilities for his royalty income.
(c) Determine Leonard Ong’s income from the two rental properties for the Year of
Assessment 2016.
(d) Calculate the amount of Share Option benefit assessable on Leonard Ong.
(e) What tax relief is Leonard Ong entitled to and if so how much?
COR167e Tutor-Marked Assignment
SIM UNIVERSITY Tutor-Marked Assignment – Page 6 of 6
Question 2
(a) Which insurance policies will pay out, and how much will be paid, if Leonard Ong were
to
(i) contract a Major Illness?
(ii) pass away one year after contracting Critical Illness?
(b) You are to help Leonard Ong to compute the annual compound rate of return for his
total investment in the 3 Unit Trusts.
(c) You are to explain to Leonard Ong what he should do. Should he invest in local Fixed
Deposit or US$ Currency Deposit account? Support your answer with appropriate
workings.
Question 3
(a)
(i) What are a wife’s duties of maintenance towards her husband?
(2 marks)
(ii) How long is a husband duty-bound to maintain his wife?
(2 marks)
(b) Identify the “Settlor”, “Trustee” and “Beneficiary” or “Beneficiaries” in the draft Trust
mentioned in the case study.
(c)
(i) Under the Intestate Succession Act, which Rule for distribution allows
Leonard’s estate to be passed on?
(ii) Identify the persons who are entitled to Leonard’s estate.
