Can we claim the reduction in value as a loss

Assignment Help Taxation

Reference no: EM133606257

Background:
You have recently graduated as an accountant and your first position is with an integrated accounting and financial services organisation in Singapore called Kapunda Teo and Associates Pte Ltd (KT). It is an unlimited company. Josiah Sau Lo and Adriel Forrock are the directors of a financial services company in Singapore. The name of the company is Foreign Transaction Exchange (Singapore) Ltd (FTX). It is listed on the on the SGX. The other three directors are: Gary Wang, Samuel Freeman and Charlotte Allison who are all domiciled in the Bahamas. Josiah, Adriel and their respective families as well as the company are clients of KT. The company's financial activities span direct equities, managed funds, derivatives as well as crypto currencies. They have offices and companies in Australia, South East Asia, the Americas, Europe and the Middle East. Head office for taxation purposes is based in Delaware in the United States of America. The actual trading activities are controlled out of the Bahamas. The key directors are Gary Wang, Samuel Freeman and Charlotte Allison who are all domiciled in the Bahamas.

Because of the nature of the activity and the complexity involved, staff are sent to different offices around the world and various meetings of the company are held in different locations. Given the uncertainty in the global economy and the threat of global recession the companies in the group have had to undertake various steps to increase revenue as well as reduce costs.

Josiah and Adriel of FTX have requested a meeting with the managing director of KT to discuss various taxation issues.

The managing director is away in Western Sumatra on business for another client of KT and cannot attend the meeting. He will not be back until Monday 21 August 2023. Therefore, he has requested the senior manager (Serena) to organise the meeting
with the clients.

THE ISSUES THAT JOSIAH AND ADRIEL WANT YOU TO ADDRESS:

Question 1. Do you think from a Singapore tax perspective it is wise for Dennis to acquire the property in Western Australia? What if he borrowed funds from a bank in Australia to fund the purchase, and assuming the interest on the loan would cost him $16,350, what would be the tax consequences for him in Australia and Singapore?

Question 2. Josiah and Adriel believe that the company should move into earning additional passive income and think that owning a shopping centre and getting rent from the tenants is a better proposition. Is the rental income business income or not to the company?

Question 3. The company has had to pay significant fines for breaches of statutory requirements imposed by the Monetary Authority of Singapore. We believe these fines should be allowed as a deduction because they are directly related to earning the income. The IRAS refused us a deduction for this can you explain why?

Question 4. Our financial assets have decreased significantly over the year, can we claim the reduction in value as a loss?

Question 5. Both Josiah and Adriel own 60% in a partnership that own a fast food outlet in Woodlands. The store manager who owns the other 40% draws a salary of $60,000 per annum. Is this income to him and is it also deductible to the partnership?

Reference no: EM133606257

Questions Cloud

How are other stakeholders who are not in typical leadership : How are stakeholders who are not in typical leadership group included in roll-out of plan, or sought out to give input prior to internal roll-out of initiative?

Determine the likely source of the outbreak : determine the likely source of the outbreak (Specifically focus on the food specific attack rate.), Identification of Probable Source of the outbreak

Do you understand self-advocacy : Do you understand self-advocacy? Are there areas of your life where you could become a stronger self-advocate? Explain your answer.

What should the nurse conclude about this patient behavior : During a home visit the nurse notes that a patient originally from Mexico seems passive during health teaching and follow-up questions about the home treatment

Can we claim the reduction in value as a loss : Our financial assets have decreased significantly over the year, can we claim the reduction in value as a loss

What are some of the barriers you may face in opening : what would be necessary in this clinic to have it fulfill at least two of the 6 pieces of the trauma-informed care model. Last, what kind of community

What are top three considerations in developing the mindset : Consider the importance of thinking like a hacker to a cybersecurity practitioner. What are your top three considerations in developing this mindset? Why?

Advise banta on his rights and possible remedies : Advise Banta on his rights and possible remedies under the AUSTRALIAN CONSUMER LAW provide the relevant section of the ACL

Child has intellectual disability : A grandparent is seeking advice on how to support their son, a single father who just learned that his child has an intellectual disability

User Account

All Pages