Alice’s Personal Matters
Alice was born and bred in Brussels. She lives with her family
in Belgium, apart from her occasional business and leisure travels,
which are often temporary in nature. Alice keeps in touch with her
ex-school mates from Brussels on a regular basis, as she has not
been making new friends ever since she started her entrepreneurial
endeavours.
Alice deposited proceeds from her retail shop’s day-to-day
operations into the sole proprietorship’s Singapore bank account
temporarily. She remitted all cumulative proceeds back to her
Belgium bank account at the end of every month, after putting aside
a certain amount for her retail shop’s working capital.
Alice felt helpless and disappointed that she had to cease her
retail shop’s operations prematurely due to the pandemic outbreak
in Singapore. She sought help from various avenues but to no avail.
Alice left Singapore for good on 7 June 2020 to be with her family
in Brussels.
(a) Apply the concepts and principles of income tax and tax
residency in Singapore and discuss Alice’s tax residency status in
Singapore for Year of Assessment
(“YA”) 2021.