Financial Services Tax Bulletin - The Comptroller of Income Tax v BBO
On 8 April 2013, the High Court handed down its decision in the case of The Comptroller of Income Tax v BBO  SGHC 74. In the landmark decision, the High Court ruled that gains arising from the disposal of investments in the insurance industry can, in certain circumstances, be treated as capital in nature, and hence non-taxable.
In handing down its decision, the courts have granted potential clarification to an issue that has long been the subject of disagreement between the insurance industry and the Comptroller of Income Tax. The outcome of this case should be well received by the insurance industry.
For our comments on the consultation paper, please download the Financial Services Tax Bulletin.