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beaverjuice

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http://news.asiaone.com/news/business/hot-under-collar-about-80k-tax-relief-cap



The move by the Government in this year's Budget to cap personal income tax relief at $80,000 has got many working mums hot under the collar. Some mothers have told The Straits Times that it is a bitter pill to swallow after having enjoyed generous tax savings in past years.

The change will take effect from the Year of Assessment (YA) 2018 and tax experts estimate that it could affect about 20,000 people, of which most are likely to be working mothers.

Tax experts say that it is those working mothers earning above $150,000 with at least two children who will end up paying more tax, particularly if their chargeable income jumps to a higher tax bracket because of the new cap.

Ms Elizabeth Chan (not her real name), 54, who earns about $250,000 a year and has two children, worked out that her personal income tax will jump 50 per cent to about $15,588 from her current $10,000.

This translates to an additional $500 a month in payable tax. Her total reliefs amounted to about $114,000 last year, of which the lion's share of about $83,000 came from the Working Mother Child Relief (WMCR)




*Haiz* ..... i so feel for them .... despite working so hard and raising kids for singapore ....

Raising their tax bill from $10,000 to $15,600 will put financial hardship on these mothers who make $250,000 /year .....

Why can't the government be more understanding to such mothers :( :( :(

You think raising kids is so easy????

Why can't they tax singles more?  They don't have kids wat?!!!!!
« Last Edit: April 05, 2016, 07:00:37 pm by beaverjuice »
"A man who has depths in his shame meets his destiny and his delicate decisions upon paths which few ever reach."

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chiasmus

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Why can't they tax singles more?  They don't have kids wat?!!!!!
Because the singles don't have all these tax reliefs to begin with?

Sometimes you let a group of people song for too long and change to let them song 1/2, they become very buey song liao..
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poo42

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Singles are already paying more taxes what... Shld tax the high income foreigners more mah

Or rich childless couples... Even better still  8)

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beaverjuice

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Working mothers need more support, say MPs in Budget debate
« Reply #3 on: April 05, 2016, 08:57:01 pm »
http://www.channelnewsasia.com/mobile/singapore/working-mothers-need-more/2666590.html

.... working mothers deserve more support as they are supplying citizens of the future !
"A man who has depths in his shame meets his destiny and his delicate decisions upon paths which few ever reach."


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poo42

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Re: Working mothers need more support, say MPs in Budget debate
« Reply #4 on: April 05, 2016, 09:27:26 pm »
http://www.channelnewsasia.com/mobile/singapore/working-mothers-need-more/2666590.html

.... working mothers deserve more support as they are supplying citizens of the future !

Not denying that, but not at the cost of the singles who have no one to depend on in their old age mah... They pay the highest percentage in tax but benefits the least  :'(

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Piglet

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I think it better to tax on FT more plus PR should pay higher tax than local. And should tax high income parent basic on the no of kid they had.

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beaverjuice

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Taxes help subsidize HDB flats so more singaporeans can become millionaires!  8)
"A man who has depths in his shame meets his destiny and his delicate decisions upon paths which few ever reach."

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poo42

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Taxes help subsidize HDB flats so more singaporeans can become millionaires!  8)

So tax those who come to sg to rape our resources then run home to spend like millionaires...


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Piglet

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So tax those who come to sg to rape our resources then run home to spend like millionaires...

yes. should tax the PR. once they leave SG, sell their house. tax at least 20% on their profit, return the grant and benefit given to them. As for CPF, their interest rate should be lower the citizen and should be tax on once they redraw it.

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chiasmus

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yes. should tax the PR. once they leave SG, sell their house. tax at least 20% on their profit, return the grant and benefit given to them. As for CPF, their interest rate should be lower the citizen and should be tax on once they redraw it.
PRs don't get any grants for their HDB purchases iirc.  As for taxing the profits of the sale of HDBs just because they are PRs, it is not right since it is an open market.  Is the government going to top up the differences if they are sold at a loss?  Even if it does become a law, buyers and sellers will just under-declare the sale price to escape that tax.  The market will become corrupt again just like in the past.
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Piglet

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PRs don't get any grants for their HDB purchases iirc.  As for taxing the profits of the sale of HDBs just because they are PRs, it is not right since it is an open market.  Is the government going to top up the differences if they are sold at a loss?  Even if it does become a law, buyers and sellers will just under-declare the sale price to escape that tax.  The market will become corrupt again just like in the past.

Loss of cos no need to get tax la. but if make profit must ba, if they under declared once find out, jail sentence and lose more lor. Agent that process the thing, lawyer all these will get into trouble too if they do such thing. PR alrdy earn when they can buy HDB fr open market. if dun tax on proceeds from sales of flat, than make them pay more on stamp duties??

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chiasmus

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Loss of cos no need to get tax la. but if make profit must ba,
That's why I say it is not right as it is a very unfair practice and somemore your suggestion is directly targeting PRs.

if they under declared once find out, jail sentence and lose more lor. Agent that process the thing, lawyer all these will get into trouble too if they do such thing.
This thing easy to say, impossible to implement and catch.  Under-declaration doesn't need to involve agents or lawyers at all.  In fact, none of them will want to be involved.

PR alrdy earn when they can buy HDB fr open market. if dun tax on proceeds from sales of flat, than make them pay more on stamp duties??
They don't really earn when they buy HDBs from open market.  Uncle BJ has been posting all those $1m HDB resales, who do you think are the buyers?  The sellers are definitely sg citizens.

The current property measures already make it difficult for PRs to profit from HDBs, I don't think it is necessary to make them pay more stamp duties. 
洪荒之力 >> ding ding dong dong pew pew pew pew

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beaverjuice

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Plugging loophole in personal income tax relief long overdue
« Reply #12 on: April 07, 2016, 04:45:19 pm »
http://news.asiaone.com/news/business/plugging-loophole-personal-income-tax-relief-long-overdue


LET us call a spade a spade. With higher incomes among the wealthy, the six-figure tax reliefs claimable by high-income mothers from the Working Mother's Child Relief (WMCR) has become a significant tax loophole that needed to be fixed in the 2016 Budget.

In the debate about whether the new S$80,000 personal relief income cap is fair for high-income working mothers, the focus should not be on the women alone, who deserve plaudits for their achievements. Rather, society should examine the family unit behind the high-income mother. Successful, well-educated, high-income women are more likely to meet and fall in love with well-educated, high-income men. This pattern of assortative mating - people marrying others like themselves - is getting more pronounced over time.

High-income families, with their six-figure tax reliefs, get to enjoy tens of thousands of dollars of extra tax savings compared to ordinary families every year. These monies were, in all likelihood, funnelled into enrichment activities for their already-privileged children: tuition to enter the Gifted Education Programme, extra sports and arts lessons to qualify them for Direct School Admission exercises into the Integrated Programmes at elite junior colleges. The savings would have been used to send children to overseas universities if they could not get into local ones.

The children were also likely helped along by an internship at a bulge-bracket investment bank or top-tier law firm, because mummy's colleague or daddy's golf buddy offered it to them. Fresh in the workforce, they meet and fall in love with other successful, well-educated young people. And if the happy couple wants to buy a place, daddy and mummy on both sides are all too happy to chip in for the District 9-10-11 condominium down payment.

The odds are already stacked in favour of the wealthy in terms of getting ahead in life. So it will be churlish for those earning S$150,000 and above a year - at least the 88th percentile of taxpayers based on 2014 tax data - to complain bitterly of unfairness. This is the income above which working mothers will be affected by the new tax relief cap. Those at the borderline have to pay a few hundred to a few thousand dollars more. At the other extreme, those with many children and earning S$300,000 and above (96th percentile and up) might see their tax bill increase by S$20,000.

Unfortunately, there are those who would argue against making Singapore's tax system more progressive. Singapore's baby drive is being harmed, they moan. Working mothers are being discriminated against. It is strange that people who have been arguing, for years, that tax breaks do not make a difference to whether women have children, are suddenly claiming the opposite. Lamentably, even those who are not affected directly by the tax relief cap are drawn into thinking they are somehow wronged, when the government is only trying to put a wrong situation right.

Parents would of course always want the best for their children. And for high-income households running tight on finances because of property and healthcare commitments, every cent counts. Households where the woman is the main breadwinner will also feel the pinch. But some perspective is surely needed, especially by individuals making a six-digit income a year.

Few Singaporeans will see that kind of money in their lifetimes. Paying a bit more tax will not hurt.

"A man who has depths in his shame meets his destiny and his delicate decisions upon paths which few ever reach."

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