Tag Archives: Singapore tax cases

Income versus Capital – The Comptroller of Income Tax v BBO [2014] SGCA 10


On 4 February 2014, the Court of Appeal has dismissed the appeal by the Comptroller of Income Tax {“CIT“) [see the Comptroller of Income Tax v. BBO [2013] SGHC 74].

The Court of Appeal agreed with the finding of the High Court in that gains arising from the disposal of investments in the insurance industry could under certain circumstances, be treated as non-taxable capital gains, and not income assessable to tax under Section 10(1)(a) of the Income Tax Act (“ITA“).
Continue reading Income versus Capital – The Comptroller of Income Tax v BBO [2014] SGCA 10

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.
Continue reading BFH v Comptroller of Income Tax [2013] SGHC 161