On 31 March 2023, the Inland Revenue Authority of Singapore (IRAS) issued an updated anti-avoidance guide to the Corporate and Personal Income Tax Supplement. The IRAS e-Tax Guide should improve the legislation, simplify the control procedure and provide the IRAS with more effective tools to combat tax evasion.
The main objectives of the second version of the manual:
- presentation of the general concept of CIT (Comptroller of Income Tax);
- assisting Singapore taxpayers in identifying questionable transactions;
- description of cases of application of additional tax obligations, as well as options for exemption from it.
Options for aggressive tax optimization in Singapore by classificationIRAS/CIT:
- circular flow;
- круговий рух коштів (round-tripping of funds);
- conduit entity;
- assignment of debt;
- registration of several legal entities in order to obtain illegal tax advantages;
- the income received during the conduct of business corresponds to economic reality.
How exactly the new version of the guide is applied in practice has not yet been tested. Necessary changes and additions will be made to the text as needed.