Case Study 1: Capital gain
Our client is a Singapore investment holding company. The client disposed of its investment in shares and derived a huge gain which they opined as not taxable. Local tax authority challenged the non-taxability of the gain. We presented to local tax authority our capital gain argument relying on the “badges of trade” test and relevant documentary evidence. Our capital gain argument was successful and the client was overjoyed with the outcome.
Case Study 2: Voluntary disclosure of GST
Our client’s internal staff did not possess sufficient knowledge on GST and therefore made mistakes in their invoices to customers. We assisted our client in writing to the Comptroller of GST for voluntary disclosure for wrongful collection of GST. Our client subsequently appointed us to review its GST returns prior to submission to local tax authority.
Case Study 3: Waiver of shareholding test
Our in Singapore client in the business of trading in chemical products had huge tax losses. The unutilised tax losses can be deducted against future income if the company satisfies the shareholders’ continuity test. Our client’s ultimate holding company was acquired by another company, resulting in a substantial change in shareholders. Thus, the tax losses would be forfeited. We applied to the local tax authority to request a waiver of the shareholding test and successfully demonstrated that the substantial change in shareholders was not for deriving any tax benefit. Accordingly, our client was allowed to carry forward the tax losses subject to certain conditions.
Case Study 4: Withholding tax compliance
Our client in Singapore had a trade payable due to an overseas company and interest was charged on this overdue trade account. When preparing the annual income tax computation for our client, we discovered that the client had not reported withholding tax applicable on the interest. We advised our client to disclose the non-compliance of withholding tax via the Voluntary Disclosure Programme (VDP). With our timely disclosure of the error, no penalty was imposed by local tax authority. The client was elated with the outcome.