Longevity Pte Ltd was incorporated on 15 January 2016 and its first set of financial statements was prepared for the period from 15 January 2016 to 31 December 2016. It was wholly owned by Sing Long Pte Ltd which is owned equally by brothers Sing Hup and Wing Long who are Singapore citizens. On 10 September 2017, the company sold a 10% shareholding to Stephen Lee, a Malaysian citizen. Which of the following statements hold TRUE for Longevity? A) Longevity can claim tax exemption under the start-up tax exemption scheme for YA 2017 to 2019, its first three Years of Assessment of Assessment as its immediate and ultimate shareholders are individuals that hold at least 10% of the shareholdings in Longevity. B) Longevity can claim tax exemption under the start-up tax exemption scheme for YA 2018 and 2019 as it has a shareholder who is an individual and holding the minimum shareholding of 10%. C) Longevity can claim tax exemption under the start-up tax exemption scheme for YA 2019 only as the conditions under the said scheme are fully met. D) Longevity cannot claim tax exemption under the start-up tax exemption scheme as the individual shareholder holding the minimum 10% shareholding is not a Singapore citizen.

The amount of investment or income over which no tax is charged is known as tax exemption. The…

Answered: Which of the following statements hold…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Longevity Pte Ltd was incorporated on 15 January 2016 and its first set of financial statements was prepared for the period from 15 January 2016 to 31 December 2016. It was wholly owned by Sing Long Pte Ltd which is owned equally by brothers Sing Hup and Wing Long who are Singapore citizens. On 10 September 2017, the company sold a 10% shareholding to Stephen Lee, a Malaysian citizen. Which of the following statements hold TRUE for Longevity?

A)	Longevity can claim tax exemption under the start-up tax exemption scheme for YA 2017 to 2019, its first three Years of Assessment of Assessment as its immediate and ultimate shareholders are individuals that hold at least 10% of the shareholdings in Longevity.

B)	Longevity can claim tax exemption under the start-up tax exemption scheme for YA 2018 and 2019 as it has a shareholder who is an individual and holding the minimum shareholding of 10%.

C)	Longevity can claim tax exemption under the start-up tax exemption scheme for YA 2019 only as the conditions under the said scheme are fully met.

D)	Longevity cannot claim tax exemption under the start-up tax exemption scheme as the individual shareholder holding the minimum 10% shareholding is not a Singapore citizen.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions