November Law Gazette Tax Article

LLC or LLP: Choosing a Corporate Structure for Your Law Practice– A Tax Professional’s Angle. 

Optimizing your tax position is a good reason to choose the LLC structure for your law practice. In this article, tax consultant Ho Soon Wing explains the tax benefits of an LLC over a partnership structure and offers some non-tax considerations. 

April 15 filing - when to consult a tax specialist?

Today, many SME tax firms struggle to provide quality services to Sole-proprietors and Partnerships due to the relatively high tax compliance burden when compared to private limited companies.  It is not unusual to find that Sole-proprietors and Partnerships simply adopt the easy way out when it is due date to file Form B or Form P.  They simply take the áccounting net profit' and file it as the ádjusted net profit' without undergoing the process of preparing a tax computation to account for tax allowable expenses and non taxable income.  Firstly, this is not right.  Secondly, there could be huge tax savings if a tax specialist is consulted.  Some of the possible tax savings could arise from:

- Capital allowances and business losses claim

- Transfer between married couples

- Loss carry back system.

Starting a new business - tax considerations

Are you familiar with the various business structures in Singapore?  That is, partnerships, limited partnerships, limited liability partnerships, private limited companies, and sole proprietorship, etc.  Indeed, tax considerations may be the defining factors for you to decide on your business structure.

 

First company convicted of abusing tax exemption

27 October 2009 - Steel Forming and Rolling Specialists Pte Ltd (“SFRS”) was the first company in Singapore convicted of tax evasion by making false entries in its income tax returns.The total amount of profits under-reported was $1,356,000.  The company’s managing director, Mr Gan Oh Boon was also convicted of his role in assisting the company to evade tax.

What if I am late in filing my company returns?

Companies who do not file their tax returns, audited/unaudited accounts and tax computations by due date (i.e. 30 November for Form C/ 15 April for Form P) or late filers will face the following enforcement actions:

- composition fee imposed

- summons to attend court

- other legal actions.