Tax Bulletin - Archive
Previous issues
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October 2011 - ATG v Comptroller of Income Tax
On 24 August 2011, the Inland Revenue Authority of Singapore issued a consultation paper on dispute resolution for corporate taxpayers. How does it affect you? In this bulletin, we summarise the proposed initiatives and share our thoughts on some of the key measures.
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October 2011 - Tax Policy Bulletin
On 30 August 2011, the Organisation for Economic Co-operation and Development (OECD) published a report entitled Corporate Loss Utilisation through Aggressive Tax Planning. This report was prepared jointly by two groups under the OECD umbrella – the Forum on Tax Administration and the Aggressive Tax Planning Steering Group of Working Party 10 on Exchange of Information and Tax Compliance of the Committee on Fiscal Affairs. In this bulletin, we summarise the contents of the report and consider what the impact could be on corporate taxpayers around the world.
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October 2011 - Tax Policy Bulletin
The OECD recently published a public discussion draft dealing with the Article 5 threshold permanent establishment issue. This bulletin comments on some of the more important issues raised by the OECD and sets out our views on these developments.
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October 2011 - Dispute Resolution for Corporate Taxpayers: IRAS Consultation Paper
On 24 August 2011, the Inland Revenue Authority of Singapore issued a consultation paper on dispute resolution for corporate taxpayers. How does it affect you? In this bulletin, we summarise the proposed initiatives and share our thoughts on some of the key measures.
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September 2011 - Sourcing of Trading Income: Diverging Trends
A recent Hong Kong case reaffirmed an earlier Hong Kong Court of Final Appeal's decision regarding where business income is sourced. How does this compare with Singapore's approach? In this bulletin, we summarise the Hong Kong decisions and consider their nuances in Singapore's context.
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September 2011 - Tax Policy Bulletin
Our latest bulletin provides an update on the key tax projects currently being undertaken by the Organisation for Economic Cooperation and Development (OECD). You'll find details on the progress of this work as well as commentary on the potential
impact of these new developments on the business community.
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August 2011 - Draft Income Tax (Amendment) Bill 2011
The Ministry of Finance released the draft Income Tax (Amendment) Bill 2011 on 8 July for public feedback. This bulletin looks at some of the changes proposed in the draft Bill.
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August 2011 - Tax policy Bulletin
The Organisation for Economic Co-operation and Development (OECD) released a discussion draft on the meaning of "beneficial owner" in the OECD Model Tax Convention on 29 April 2011. Interested parties were asked to send their comments to the OECD by 15 July. In this bulletin, we share with you PwC's response to the discussion draft.
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June 2011 - AQQ v Comptroller of Income Tax
Since the introduction of the current general anti-avoidance section in 1988, there has yet to be any reported case on the section. AQQ v Comptroller of Income Tax is a first and in this bulletin, we provide a summary of the case. It is understood that the taxpayer has filed an appeal and it is hoped that the courts will take this opportunity to set down clearer guidance on what is a rather vague area in Singapore's tax law.
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May 2011 - Tax Policy Bulletin
The Organisation for Economic Co-operation and Development (OECD) released a discussion draft on the meaning of "beneficial owner" in the OECD Model Tax Convention on 29 April 2011. In this bulletin, we look at the proposed changes as well as share our thoughts on how further clarity can be provided in the draft text.
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April 2011 - A CAP-full of GST risks
The Singapore tax authority (IRAS) announced a new GST compliance initiative known as Assisted Compliance Assurance Program or ACAP on 5 April 2011.
The ACAP is a self review package that sets out the IRAS's expectations of good GST governance and risk management and how the business can engage a CPA firm with accredited GST specialists to develop a holistic framework for GST risk processes and controls. The outcome of an ACAP review will determine the frequency of GST audits (exemption for 3 to 5 years), automatic renewal of GST schemes, and a faster turnaround of refunds and resolution of issues.
To encourage companies volunteer for the ACAP initiative, the IRAS has offered a co-funding of 50% (capped at S$50,000) of the professional fees to undertake the ACAP review plus a one-time waiver of penalties for non-fraud errors that arise from, and voluntarily disclosed in the ACAP report to be submitted to the IRAS.
This bulletin provides an overview of the ACAP initiative.
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January 2011 - Tax Policy Bulletin
This bulletin summarises the Organisation of Economic Co-operation and Development's (OECD) work in the area of tax havens and offshore financial centres. It sets out the current status and the future steps that are going to be addressed. We also consider possible future developments relating to this agenda.
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January 2011 - ZF v Comptroller of Income Tax
In ZF v Comptroller of Income Tax , the Court of Appeal decided that portable pre-fabricated dormitories constitute plant within the meaning of Section 19 and 19A of the Income Tax Act. In this bulletin, we look at the principles laid down by the courts in deciding whether an asset is plant. We also look at the questions raised by the case, and the impact it has on businesses.
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November 2010 - Singapore case on interest rate swaps
The case of ACC v Comptroller of Income Tax [2010] SGHC 316 has helped alleviate some uncertainty around the Singapore withholding tax treatment of interest rate swaps and other financial derivatives. In this bulletin, we analyse the arguments put forth by the taxpayer and the Comptroller and how the judge considered them before arriving at his verdict. We also look at the guidance provided by the case, and the question it has left unanswered.
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May 2010 - Import Goods and Services Tax Deferment Scheme
In the Singapore Budget 2010, the Minister for Finance introduced a new Import Goods and Services Tax (GST) Deferment Scheme (IGDS) to ease the GST cash flow costs for GST registered businesses that arise from the time lapse between the payment and input tax claim of the GST paid on goods imported into Singapore. This Bulletin provides an overview of the scheme.
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February 2010 - Singapore tax authorities has issued a circular providing guidelines on the new tax framework for corporate amalgamations
The Inland Revenue Authority of Singapore (IRAS) recently issued a circular on the tax framework for corporate amalgamations. Broadly, the new tax framework aligns the tax treatment of qualifying amalgamations with the treatment under the Companies Act, where the surviving company (i.e. the amalgamated company) is treated as having "stepped into the shoes" of the amalgamating companies and continues with their businesses as if there had been no cessation of business.
This Bulletin summarises the tax treatment and administrative requirements in the new framework. To find out more about the new rules and how this is relevant to you, please download the Tax Bulletin.
December 2009 - Australian Tax Office proposes anti-avoidance provisions for investment structures claiming treaty relief
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The Australian Tax Office (ATO) recently issued two draft tax determinations following its actions in relation to the TPG Myer account. The draft rulings highlights the importance of the capital versus revenue distinction and how Australian investments/exits are structured and executed, and the corresponding tax implications. In one of the draft, the ATO’s view of whether the anti-avoidance provisions will apply to investment structures relying on a double tax agreement was explained. They have indicated that the absence of any significant commercial activity in a treaty country by a company resident in that jurisdiction would strengthen the argument that the cross-border transaction is tax driven. While in the other draft tries to deal with the question of “Can a private equity entity make an income gain from the disposal of the target assets it has acquired?".
At this stage, the determinations are draft and due for public comment by 29 January 2010. Meanwhile, if you are interested to know more about the proposed rulings and how this may be relevant to you, please download the Tax Bulletin.
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October 2009 - Withholding tax update
The Income Tax (Amendment) Bill 2009 proposes a welcome change to the withholding tax rules for management service fees. In the wake of this and other recent changes to both the scope and administration of withholding tax, this Bulletin attempts a round-up of where we are in this complex area. It also provides a summary of common payments to non-residents which are subject to withholding tax and the relevant filing procedures.
To find out more about the changes and how they are relevant to you, please download the October edition of Tax Bulletin.
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October 2009
In the recent case of ACC v CIT [2009] SGHC 211, a Singapore-incorporated company applied for leave to quash the decision of the IRAS that withholding tax is applicable on interest rate swap payments made to its non-resident subsidiaries. Although the preliminary analysis of the scope of section 12(6) of the Income Tax Act is not definitive, as it is subject to the full hearing of the application for a quashing order, it is interesting to note that the judge was of the view that the interest rate swap payments may fall outside the scope of the section.
To find out more about the court decision and how this is relevant to you, please download the October edition of Tax Bulletin.
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View/Print (70kb)September 2009
Recently, the Wellington High Court case of BNZ Investments Limited & Ors v. The Commissioner of Inland Revenue addressed the issue of tax avoidance schemes.
To find out more about the court decision and how this is relevant to Singapore, please download the September edition of Tax Bulletin.
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This edition of Tax Bulletin covers the proposed changes to tax treatment for property transactions and the tax code for the exchange of information.
