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Full-Text Articles in Law
The Tax Treatment Of Haircuts In Financial Reorganizations, Aurelio Gurrea-Martinez, Vincent Ooi
The Tax Treatment Of Haircuts In Financial Reorganizations, Aurelio Gurrea-Martinez, Vincent Ooi
Research Collection Yong Pung How School Of Law
Over the past few years, Singapore has implemented various ambitious insolvency reforms aimed at making the country an international hub for debt restructuring. This article argues that while Singapore has put in place one of the most sophisticated restructuring frameworks in the world, some tax reforms might be useful to maximise the potential of this new restructuring framework. Namely, it will be pointed out that the tax treatment of debt forgiveness granted by creditors in corporate reorganisation (‘haircuts’) should be reviewed. Under the current legislation, these haircuts may be treated as taxable income. As a result, financially distressed debtors may …
Unjust Enrichment And Wrongly Paid Tax, Hang Wu Tang
Unjust Enrichment And Wrongly Paid Tax, Hang Wu Tang
Research Collection Yong Pung How School Of Law
Boake Allen Limited v. Revenue and Customs Commissioners [2006] EWCA Civ 25 concerned early payment of Advance Corporation Tax ("ACT"). ACT was normally payable when a company paid dividends to its shareholders, but there was a statutory exception where the company was a subsidiary of a United Kingdom company and both the parent and subsidiary made a group income election. If the tax authorities accepted the election, the obligation to pay ACT would only accrue when the parent company paid dividends. Section 247 of the Income and Corporation Taxes Act 1988 ("ICTA") stipulated that group income elections were only available …