Question - Johnson is a Singaporean tax resident. He is the owner of a company that specialises in providing software solutions. Recently, his neighbour, Miss Lee, gave Arthur $4,500 as ‘Commission' or ‘Referral Fee' because Arthur recommended his friend, who was then looking to buy a flat, to buy Miss Lee's flat.
Required:
(a) Give reasons as to whether Johnson will be taxed for the $4,500.
(b) In the same year, Johnsoon received another $1,500 and $6,000 from two other neighbours whom Johnson also help to look for buyers through his friends and connections.
Give reasons as to whether Johnson will be taxed only for the $4,500 or for all the three amounts of money he received.
Your answer should include discussion on how you apply the Six Badges of Trade, and Case Laws to support your answer where necessary.