• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 4/29/2014

Singapore - Finding of tax avoidance arrangement upheld on appeal 

April 29:  Singapore’s Court of Appeal affirmed a decision of the High Court, finding that the taxpayer had undertaken a tax avoidance arrangement, but that the Comptroller had acted ultra vires in trying to use additional assessments as a means to “claw back” previously made tax refunds. Comptroller of Income Tax v. AQQ [2014] SGCA 15

At issue was whether section 33 of the Singapore income tax law applied to the taxpayer’s financing arrangement and because the taxpayer had no bona fide commercial justification, whether it was appropriate for the taxpayer to have taken into account certain franked dividend income and interest expenses in its tax return, and thus not be entitled to tax refunds.

Read an April 2014 report [PDF 264 KB] prepared by the KPMG member firm in Singapore: Comptroller of Income Tax v AQQ [2014] SGCA 15

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