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Income Tax Planning: SRS vs CPF Cash Top-ups


Panerex77
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Yes!

 

I really did that, dutifully following the instruction from my wife.

 

haha i got another 4 years to go before i max it out.

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Pardon me.

 

Old people like me are not very good with money.

 

I used to keep money under my pillow.

 

Now I am trying to park money in srs for tax relief, that is already a great improvement.

 

You all please be kind to me ok? :)

 

Happy New Year, folks!

depends on how many more years to srs withdrawal?

 

within 5 years?

 

otherwise why so conservative?

 

 

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Pardon me.

 

Old people like me are not very good with money.

 

I used to keep money under my pillow.

 

Now I am trying to park money in srs for tax relief, that is already a great improvement.

 

You all please be kind to me ok? :)

 

Happy New Year, folks!

Sorry Uncle. Not laughing at you but you definitely need to make your money work harder for you and your family.

 

I don’t know how old you are but to keep to the mindset of only putting money in capital guaranteed products in a world flushed with so much liquidity is really not a good strategy. Bond is ok but there are many blue-chip counters that behave more like bond than equity, you should look into them. Even for the most risk adverse investors, I think investing 10-20% of their portfolio in equity is acceptable, just buy recession proof stocks with yield that beats bank deposits.

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haha u must have maxed out your contribution to SA liao. that's why ...

I have never topped up my SA account, maybe I should review that decision taken many many years ago.

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I also contributed $7k, $3.5k each to both my parents so that they get a monthly allowance of $297 each. Can get a tax deduction of double this if your parents staying with u and slightly less if they not staying with you.

Any idea the max 7k cpf top up for parent apply to each sibling or total sibling combine?

 

In another words, if i have 5 kids, can they contribute 7k each (total 35k) for my cpf top up? Ty

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Any idea the max 7k cpf top up for parent apply to each sibling or total sibling combine?

 

In another words, if i have 5 kids, can they contribute 7k each (total 35k) for my cpf top up? Ty

 

I believe it's each sibling ie 5 kids can contribute $7k each(for 2 parents) n claim individually.

This is unlike the parent relief where the relief amount has to be shared.

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I believe it's each sibling ie 5 kids can contribute $7k each(for 2 parents) n claim individually.

This is unlike the parent relief where the relief amount has to be shared.

Thank. The last time i am being fine because of the parent relief matter due to w/o knowing my sibling is also claiming the same relief for 5 yrs
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Supersonic

The professor is right.

 

Our values are twisted

And it has been twisted for many decades.

 

Should change.

 

 

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Hypersonic
(edited)

you enjoy swimming against the tide ah? said

as what @T2 said similarly heard of asset rich , cash poor ..... it’s a bubble and when it bursts people will say govt guaranteed that property assets (HDB) especially will grow and grow .... even though that statement was made like many years back Edited by BanCoe
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Hypersonic

Ah Seng Durian owner jailed 3 weeks, fined for under-declaring income by S$708,000

 

SINGAPORE — One of two brothers who run a popular durian stall in the Ghim Moh area has been sentenced to three weeks’ jail and fined after the duo admitted last week to under-declaring their trading income by about S$708,000 over six years.

 

Shui Poh Sing, 60, was fined S$5,000 and ordered to pay a penalty of S$77,077.91 on Tuesday (May 7) in the State Courts. The prosecution had sought a jail term of four to eight weeks, in addition to the financial penalties.

He had pleaded guilty to two tax evasion charges under the Income Tax Act, and one charge under the Goods and Services Tax (GST) Act of failing to register for GST when one of their companies’ revenue crossed S$1 million in 2006.

He and his younger brother, 57-year-old Shui Poh Chung, inherited minimart Shanghai Moh Lee Seng from their father in 1999 after he died. They ran it till February 2012 when it ceased business operations.

The brothers then set up Seng Chung Trading, which is behind the popular Ah Seng Durian stall at Ghim Moh.

The older Shui, as the managing partner of the minimarts, was in charge of the accounts and record-keeping. A District Judge last week cited this factor as the reason that a custodial sentence was warranted for him. 

Senior Tax Prosecutor Patrick Nai told the court this was why investigations into their tax evasion had dragged on for four and a half years. The accounts were “not properly kept at all”.

Many documents were discarded after Shanghai Moh Lee Seng closed in 2012 following an en bloc sale, he noted. Seng Chung Trading, which sells seasonal fruits such as durians, was registered to take over that business.

However, despite the disorderly accounts, Mr Nai stressed that Shui Poh Sing knew the amount of income declared between 2008 and 2014 was “way below” what they were earning.

For instance, he omitted more than S$93,000 in earnings in 2008 and this grew to S$103,592.11 in 2014. For these two years, he underpaid close to S$9,000 and S$13,900 in taxes respectively.

The undeclared income earned from the sale of durians by Seng Chung Trading was used to finance mortgage payments for the brothers’ properties in Malaysia, the prosecutor added.

 

Mr Nai also noted that Shui Poh Sing was required under the GST Act to notify the Comptroller of GST of Shanghai Moh Lee Seng’s liability to register for GST by Jan 31, 2007, but he failed to do so until investigations began

 

https://www.todayonline.com/singapore/ah-seng-durian-owner-jailed-3-weeks-fined-under-declaring-income-s708000

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(edited)

Did I see wrongly ......... how this help ?  

 

I think CPF happy but people not happy lel ...... 

 

post-59158-0-84559400-1557744125_thumb.jpg

Edited by Angcheek
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I am thinking of starting a SRS because of income tax relief.

From my understanding you can take out the money anytime with a  5% penalty. Assuming you get retrenched and have no income, the money can be used and the tax savings is more than enough to offset the 5% penalty?

Is there any other downside for SRS? There does not seem to be any, except the 5% penalty

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2 hours ago, Wind30 said:

I am thinking of starting a SRS because of income tax relief.

From my understanding you can take out the money anytime with a  5% penalty. Assuming you get retrenched and have no income, the money can be used and the tax savings is more than enough to offset the 5% penalty?

Is there any other downside for SRS? There does not seem to be any, except the 5% penalty

5% penalty plus income tax equivalent to the amount you draw out from your SRS account. 

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