Category Archives: income tax in singapore

BFH v Comptroller of Income Tax [2013] SGHC 161


In this case, the taxpayer made a lump-sum payment of S$100M to the Info-Comm Development Authority for the grant of a 3G Facilities Based Operator (“FBO“) Licence and certain radio frequency spectrum for 3G mobile telecommunication services (“3G Spectrum Rights“) for a period of 20 years.

The issue at the Income Tax Board of Review (“ITBR“) was whether the payment in question was a revenue expense deductible under Section 14(1) of the Income Tax Act (“the Act“) or a capital expenditure that is not deductible under Section 15(1)(c).

The ITBR held that the payment was capital in nature and hence not deductible.  BFH appealed to the High Court and Andrew Ang J delivered the judgement.
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Income Tax – Certainty of Non-Taxation of Companies’ Gains on Disposal of Equity Investmnts


 

Dear Friends and Business Associates,

The Inland Revenue Authority of Singapore issued a new E-tax Guide on “Certainty of Non-Taxation of Companies’ Gains on Disposal of Equity Investments” (“the new rule“) on 30 May 2012.

By way of background, this new rule was introduced in 2012 Budget to give upfront tax certainty on gains derived by companies from their disposal of equity investments with effect from 1 June 2012.

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Income Tax – Why Is It Critical For Taxpayers To Comply With Tax Law?


Dear Friends and Business Associates,

As the title suggests, it is critical for all taxpayers to comply with the tax law and if in doubt, consult your Accredited Tax Advisors from Singapore Institute of Accredited Tax Professionals.  Many taxpayers in SIngapore I know want to save costs and as a result they will resolve the tax issues on their own or seek tax input from non-accredited tax advisors in Singapore because their service charges would be lower than Accredited Tax Advisors.  Here is a question for you to consider – do you focus on how much you can save as a result of getting advice from non-accredited tax advisors only?  If so, I would like to invite you to think about how much would it cost you for getting advice from them and in the end, it is regarded as incomplete, resulting in the tax treatment being disagreed with IRAS.?

Incidentally, it is also critical for taxpayers not to cheat IRAS.  If you believe you can outsmart IRAS and save a few dollars on your tax liability, think twice.  Why?

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Income Tax – Tax Agents Must Act Responsibly and Comply With the Law


Dear Clients and Business Associates,

The Inland Revenue Authority of Singapore (“IRAS“) reported in their website today that a certified public accountant (“CPA“) was charged on two counts of helping one of his clients to falsify expenses in its income tax returns for the Years of Assessment 2005 and 2006, purportedly as payments made to a shell company in the British Virgin Islands.

The CPA was fined for a total of S$270,983 for seven offences of assisting his client to evade tax.  The composition includes the sum of approximately S$37,000, which is three times the amount of tax evaded by his client.

What does this mean to you?

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