• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 5/31/2013

Singapore - Gain on disposal of “core shares” not taxable 

May 31: Singapore’s High Court affirmed a finding of the Income Tax Board of Review that gain arising from the taxpayer’s disposal of “core shares” in three companies was not subject to corporate income tax because the gain was capital in nature. Comptroller of Income Tax v. BBO, (2013) MSTC ¶70-202.

The issues before the High Court were:

  • Whether the taxpayer’s gain from the sale of the core shares was income arising from the taxpayer’s insurance business; or
  • Whether the gain or profit from the sale of investments by non-life insurance companies (i.e., other than life insurance companies) is subject to tax

The High Court held that the gain was capital in nature, and not subject to corporate income tax.

Read a May 2013 report [PDF 637 KB] prepared by the KPMG member firm in Singapore: Tax Alert (May 2013)

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