Welcome to our E-Newsletter August 2014.
PART 1 TAXATION
The Singapore Institute of Accredited Tax Professionals (SIATP) has issued the new Tax Alerts on its website Tax News since the previous issue of the 3E E-Newsletter.
The few key alerts are highlighted as below:
> Dividends for Individuals (For Locals)
> If I am employed by a foreign employer
> How to claim tax refund for resident directors?
Tax Crime: Mastermind of GST Fraud Jailed 15 months and Fined $1.2m
The first GST fraud case involving 10 different entities has been concluded in Court. Eric Chia Puay Yeoh (“Chia”), the mastermind behind a complex GST scam using multiple shell entities, was sentenced to 15 months in prison. Chia colluded with his accomplices to defraud the Comptroller of Goods and Services Tax (“GST”) of GST refunds totalling $953,192.07 from Jan 2005 to Mar 2007.
For his criminal actions, Chia landed in court today with 122 charges of defrauding GST refunds and wilfully with intent assisting his accomplices to make fictitious GST claims in their GST returns.
Chia pleaded guilty to 45 charges while the remaining 77 charges were taken into consideration for the purposes of sentencing. In addition to imprisonment, the court further ordered him to pay a penalty of more than $1.2 million being three times the amount of the fictitious claims for GST refunds amounting to $400,394.27.
More information about Mastermind of GST Fraud Jailed 15 months and Fined $1.2m.
PART 2 REGULATORY & BUSINESS
8 Jul: New version of BizFinx preparation tool available now
The latest version 2.2.0 of BizFinx preparation tool, which has incorporated bug fixes and enhancements, is available for download now.
More information about New version of BizFinx preparation tool available now.
New Legal Obligations for Corporate Service Providers
In the last quarter of 2014, ACRA will be bringing the ACRA (Amendment) Bill and a new set of subsidiary legislation into effect to implement the enhanced regulatory framework for corporate service providers (“CSPs”).
More Industrial Space For Local Businesses
The Industrial Government Land Sales Programme (IGLS) will be launched for the second part of 2014 in order to meet demands for industrial land for local businesses.
This move is part of the Government’s efforts to release enough land to moderate industrial land prices and provide industrial space for industrialists.
There will be 9 sites on the Confirmed list going on sale, regardless of interest from developers, and 6 on the Reserve list up for public tender.
Under the Confirmed list, 6 sites are located in Tuas, 2 in Tampines and 1 in Penjuru Road.
The site at Penjuru Road is targeted to meet the needs for multiple-user development at affordable prices and will have a shorter tenure of 20 years.
For the Reserve list, 5 sites are located in Tuas and the remaining in Tampines.
The Ministry of Trade and Industry (MTI) will also revise technical conditions on electrical provision and provision of goods lift on all B1 and B2 IGLS parcels. These changes will take effect from 1 July 2014.
PART 3 FINANCIAL REPORTING
4 Jul: The IASB has issued amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture for bearer plants on 30 June 2014.
IAS 41 currently requires all biological assets related to agricultural activity to be measured at fair value less costs to sell based on the principle that the biological transformation that these assets undergo during their lifespan is best reflected by fair value measurement. However, there is a subset of biological assets, known as bearer plants, which are used solely to grow produce over several periods. Once a bearer plant is mature, apart from bearing produce, its biological transformation is no longer significant in generating future economic benefits. The only significant future economic benefits it generates come from the agricultural produce that it creates.
The IASB decided that bearer plants should be accounted for in the same way as property, plant and equipment in IAS 16, because their operation is similar to that of manufacturing. Consequently, the amendments include them within the scope of IAS 16, instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41.
Entities are required to apply the amendments for annual periods beginning on or after 1 January 2016. Earlier application is permitted.
More information about IASB issues amendments to IAS 16 and IAS 41 for bearer plants.