Which of the following describes a person who is not acceptable by an insurer at standard rates because of health history?
Business expenses are the costs you have incurred in the course of running your business. Only allowable business expenses may be deducted against your income to reduce the amount of tax payable. Allowable business expenses are expenses that you can claim as deduction against your business revenue to reduce the amount of tax you have to pay. $80,000 Business Expenses Total Business Expenses = $15,000 Income Subject to Tax $80,000 - $5,000 = $75,000 (Business Revenue minus Allowable Business Expenses) Disallowable business expenses are expenses that cannot be deducted against business income. They may be disallowed under the Income Tax Act or because, generally, they are not incurred wholly and exclusively to generate business income. Employee / Staff Costs Employee / Staff Costs [^ Tax
deduction can be allowed to employers who contribute to their employees' MediSave accounts via other schemes (e.g. Additional Medisave Contribution Scheme) subject to the conditions under section 14(1)(fb) and section 15(1)(i)(iv) of the Income Tax Act.] Finance and Professional Costs Capital Expenses Running Costs Private Expenses Private Hire Cars/Private Car Expenses Expenses incurred directly or in the form of reimbursement on using private hire cars or private cars (E, Q or S-plate cars) such as repair, maintenance, parking fees,
petrol costs are disallowable. These expenses are not deductible even if the private cars were used for business purposes. With effect from YA2019, private-hire car drivers can claim car-related expenses. Other Allowable Business Expenses Mosque building fund, zakat, fitrah or other religious dues authorised by law (These should be claimed as trade expenses and not donations.) Remuneration Paid to Related Parties (e.g. spouse and siblings) Other Disallowable Expenses No capital allowance is to be given on private cars (S-plated cars), RU-plated cars and company cars (Q-plated or S-plated cars), except where the cars are registered as "private hire cars"/"cars for instructional purpose" and are hired out or used for providing driving instruction in the course of the company's business. Apart from private cars (S-plated cars), RU-plated cars and company cars
(Q-plated or S-plated cars), costs of other motor vehicles such as vans, lorries and motor cycles acquired for business use would qualify for capital allowances under Section 19 or 19A of the Income Tax Act. Expenditure incurred on obtaining a Certificate of Entitlement (COE) to acquire a motor vehicle is part of
the cost of the motor vehicle. If the motor vehicle qualifies for capital allowance, the cost of obtaining the COE may be included when claiming capital allowance on the motor vehicle. In addition, the amount paid by a registered owner of an existing vehicle upon renewal of the COE to enable the continued operation of the vehicle will be regarded as an additional cost of the vehicle for the purposes of claiming allowances under Section 19 or 19A. However, for expenditure incurred to obtain
a COE which is not subsequently used to acquire a vehicle, the expenditure incurred will not be granted capital allowance. To help businesses particularly small and medium enterprises reduce their business costs, qualifying expenditure incurred on or after 16 Feb 2008 under Section 14N of the Income Tax Act will be tax deductible provided the expenditure on
repairs or replacements do not affect the structure of the premises.
ExampleThe following items qualify for Section 14N deduction provided they do not affect the structure of the business premises:
Deductions are not allowed on expenditure relating to:
Expenditure Cap on Qualifying CostsEffective YA 2013, the amount of R&R costs that qualify for tax deduction as a business expense is capped at $300,000 for every relevant three-year period, starting from the year in which the R&R costs are incurred. Prior to YA 2013, the cap was $150,000 for every relevant three-year period. The deduction must be claimed by the business over three consecutive YAs starting from the year in which the R&R costs are incurred, i.e 1/3 of the R&R expenditure can be claimed in each of the three YAs. For partnerships, the expenditure cap of $150,000 will be applied at the partnership level. Tax deduction will be allowed up to the expenditure cap over the three-year period.
Example
* In YA 2013, the amount of qualifying R&R expenditure allowed is $30,000 ( as the combined qualifying R&R cost for YA 2012 and YA 2013 is still within the expenditure cap of $300,000 for the relevant three-year period). Claiming Section 14N Deduction
ExampleTo claim Section 14N deduction, include the amount to be claimed under "Allowable Business Expenses" in your 4-line statement in Form B (Self-Employed) or Form P (Partnership), starting from the YA relating to the basis period in which the R&R costs are first incurred. Supporting Documents:
For more details, please refer to Tax Deduction For Expenses Incurred on Renovation or Refurbishment Works Done to Business Premises (PDF, 175KB). To provide cash flow relief and encourage businesses to refit their business premises, businesses will be allowed the option to claim R&R deduction in one year for qualifying expenditure incurred on R&R for the YA 2021. The cap of $300,000 for every relevant three-year period, starting from the year in which the R&R costs are incurred, will still apply. The option is irrevocable. New! To continue providing support to businesses, the option to claim R&R deduction in one YA will be extended to qualifying expenditure incurred on R&R for the YA 2022, with the same parameters as YA 2021. Research & Development (R&D) ExpenditureWho Can Claim R&D Tax BenefitsOnly taxpayers who are the beneficiaries of the R&D activities can claim R&D deductions on the R&D expenditure incurred. A beneficiary of R&D activities:
Taxpayers in the trade or business of providing R&D services will generally not be able to claim the R&D tax benefits, unless the R&D is performed on its own account such that it is the beneficiary of the R&D activities. Please refer to Research and Development Expenditure for more information on the R&D tax benefits. Claiming R&D Tax BenefitsTo claim R&D deduction, you must include the amount to be claimed under " Allowable Business Expenses " in your 4-line statement in Form B (Self-Employed) or Form P (Partnership). Businesses with Revenue > $500,000If your revenue is $500,000 or more, a breakdown of the R&D expenditure is to be submitted together with the certified statement of accounts and tax computation. Tax DeductionsYou may be able to claim tax deductions on any of the following provided you satisfy the qualifying conditions:
#Examples of self-employed persons are commission agents, freelancers, taxi drivers, hawkers, etc. Which of the following describes a person who is not acceptable by an insurer at Standard?Substandard Risk - The classification of a person applying for a life insurance policy who does not meet the requirements set for the standard risk.
Which of the following is typically not a source of underwriting information for life or health insurance?The National Association of Insurance Underwriters is NOT a source of information that may aid an underwriter in determining whether to underwrite a risk.
What is standard risk in insurance?Standard: This means typical risk, and for life insurers, it means an average life expectancy. You may have some health issues in your family or in your past, which keeps you out of more preferred risk groups, resulting in higher premiums.
What department of an insurance company determines which risks are acceptable to the insurer and at what price?The underwriting department of an insurance company decides which risks the company should take, and how much money they need to charge for those risks to be worthwhile. Insurance companies, after all, are essentially in the business of taking calculated risks.
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