ALL THE AMOUNTS ABOVE ARE EXCLUSIVE OF VALUE ADDED TAX (VAT), EXCEP...

3. All the amounts above are exclusive of value added tax (VAT), except when specifically stated otherwise.(30 marks)2 Thomas Clark, 50 years old, is an Australian citizen who has been living in Vietnam for over ten years. He is thegeneral director of DG Co Ltd, the subsidiary of DG Group, a multinational company. Eight years ago, Thomas married Ngoc Huong, a Vietnamese citizen, who is now 38 years old. Thomas and NgocHuong have a son, Alex, who is seven years old and have also adopted a girl, Ngoc Lan, who is three years old.Thomas’s son, Christiano, 12 years old, from his previous marriage, also lives with them. Thomas and his family live in a penthouse apartment in Ho Chi Minh City, which DG Co Ltd rents for Thomas at thecost of VND85 million per month. Additionally, Thomas received the following gross-of-tax income from DG Co Ltdduring 2012:– Salary: USD10,000 per month (net of a deduction of a USD5,000 per month contribution from Thomas to DGGroup’s voluntary pension fund). DG Co Ltd also contributes another USD5,000 per month to the pension fund.The fund deposits money with banks and will pay a lump sum to Thomas upon his retirement or the terminationof his employment.– International school and kindergarten fee of USD1,500 for each of Thomas’s three children.– Airfares of USD2,400 for the five members of Thomas’s family to travel for a vacation to Europe.– Car rental of VND20 million per month for Thomas’s family to use at their discretion.– Fixed medical costs of VND50 million for the whole year paid in cash (regardless of actual utilisation).– Incentive of USD30,000 for his performance over the past year. Thomas can receive this incentive in cash or toconvert it into DG Group’s shares and bonds (listed overseas) at the market price. Thomas received the incentivein the form of bonds. These bonds were transferred to him at the year end, so he did not receive any interest inthe year.DG Co Ltd withheld compulsory health insurance contribution from Thomas’s income in accordance with currentregulations.Ngoc Huong was the chief accountant of SBC JSC, a company listed on the stock exchange of Vietnam, until 31 October 2012. Her contractual gross-of-tax salary from 1 January 2012 was VND48 million per month. Due tothe economic crisis, the company’s performance was not very good and Ngoc Huong decided to terminate heremployment at the end of October 2012 and become a housewife. On the termination of her employment, SBC JSCdecided to pay her:– A 13th month salary (pro-rata to the months of service in the year). However, Ngoc Huong only received VND15 million, being the residual amount after SBC JSC withheld provisional personal income tax and deductedthe costs for the company’s laptop which Ngoc Huong wanted to keep for her personal use after the termination.– The refund of the VND200 million which Ngoc Huong had deposited in 2011 in SBC JSC’s share purchasescheme. Under the scheme, the employee would be given the right to purchase shares of the company at adiscounted price of 50% of their market value if the employee still worked for the company after three years.According to the scheme, the employee is required to deposit money each year for the cost of the shares whichhe/she wants to purchase. Where the employee leaves the company before the end of the three years (i.e. before