Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/22/2013

Singapore - High Court affirms license, radio-frequency payment is capital 

October 22:  The Singapore High Court affirmed a decision of the Tax Board of Review that a lump-sum payment of $100 million for a grant of a facilities-based operator license and certain radio-frequency spectrum rights for mobile telecommunication services, for a 20-year period, was capital in nature, and not a deductible expense. BFH v. Comptroller of Income Tax (2013) MSTC ¶70-023.

The Board of Tax Review previously held that the payment made by the taxpayer for a “3G facilities-based operator license” and for certain radio-frequency spectrum for mobile telecommunications for a period of 20 years was a capital expense, and not a tax deductible expense.


On appeal, the High Court affirmed.


Read an October 2013 report [PDF 215 KB] prepared by the KPMG member firm in Singapore: Tax Alert (October 2013)




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