Tag

September 2016

Purpose or Effect
Get Briefed

The “Purpose or Effect” Test

Following the leading Court of Appeal case of CIT v AQQ [2014] SGCA 15 on the anti-avoidance section 33 of the Income Tax Act (ITA), we have the Income Tax Board of Review case of GBF v The Comptroller of Income Tax [2016] SGITBR 1, where section 33 was successfully invoked against the taxpayer.

Continue reading
Trust Distributions
Get Briefed

Are Trust Distributions Made Out of Asset Revaluation Reserve Effective?

Can trust distributions to beneficiaries be made out of an asset revaluation reserve? This question has never been answered in Singapore and many other jurisdictions. So, it is with great relief that in the High Court of Australia’s decision of Fischer v Nemeske Pty Ltd [2016] HCA 11, a majority of the judges decided that trust distributions out of an asset revaluation reserve were indeed effective.

Continue reading

interestdeduction
Focus

Deduction of Interest Expenses – when is there a “direct link” between income and loan?

The issue of whether a taxpayer is entitled to tax deductions for the various expenses it incurs has long been a source of debate between taxpayers and the Comptroller of Income Tax. In particular, the deductibility of financing costs such as interest expenses has been the subject of dispute in several cases. We will explore the current position of the law in this area.

Continue reading

ANovelArgument
Get Briefed

A Novel Argument

A novel argument was raised by the taxpayer in the New Zealand case of CIR v Michael Hill Finance (NZ) Limited [2016] NZCA 276 where the taxpayer alleged that the Commissioner has a duty to act consistently between taxpayers.

Continue reading