Carl paid an income tax of $\$3\,532$ for the year of assessment (YA) 2022. Of his gross annual in

Question

Carl paid an income tax of $\$3\,532$ for the year of assessment (YA) 2022. Of his gross annual income, the amount that will not be subjected to income tax is shown in the following table: Item Amount of Money Earned Income Relief $\$3 \; 000$ Wife Relief $\$2 \; 000$ Child Relief $\$4 \; 000$ per child Parent Relief $\$5 \; 500$ per parent Central Provident Fund (CPF) Contributions $20\%$ of gross income Donations $\$540$ Given that Carl has a wife, $2$ children and $2$ parents, and that for his chargeable income, the gross tax payable for the first $\$40\,000$ is $\$550$ and the tax rate for the rest is $7\%$. Find his gross annual income.

Accepted Answer

Gross annual income: SGD 133925, under the supplied tax model.

IP1U8 HOT Q3

IP1U8 HOT Q3

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Item	Amount of Money
Earned Income Relief	\(\$3 \; 000\)
Wife Relief	\(\$2 \; 000\)
Child Relief	\(\$4 \; 000\) per child
Parent Relief	\(\$5 \; 500\) per parent
Central Provident Fund (CPF) Contributions	\(20\%\) of gross income
Donations	\(\$540\)