On 16 May 2014, the IRAS revised paragraph 12.4 of the e-Tax Guide on Mergers & Acquisitions Scheme as follows:
The acquiring company/ Registered Business Trust (“RBT“) need not submit any supporting documents/information with its income tax return when making a claim only for the M&A allowance and not stamp duty relief under the M&A scheme. However, it needs to prepare and retain the following documents/information: –
(a) Confirmation by a responsible officer of the acquiring company/ RBT that all qualifying conditions for M&A allowance have been met;
(b) Documents specified in paragraph 12.2(a) and (b);
(c) An independent professional valuation report of the ordinary shares of the target company acquired under any of the following circumstances:
(i) the target company is incorporated outside Singapore;
(ii) the acquisition is funded by way of the acquiring company/acquiring RBT’s issuance of shares/units and the market value of such shares/units is not readily available; or
(iii) the acquiring company/RBT does not wish to determine the M&A
allowance based on the NAV of its shares/ units.
The relevant documents/information must be retained for a period of at least five years from the relevant Year of Assessment. These documents should be submitted to the Comptroller of Income Tax upon request.
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