TAX COMPUTATIONNet Profit as per P/LTax adjustments: Less: Credit items included in P/L but not taxable, e.g. loss on disposalLess: Credit items included in P/L but taxable as separate sourceAdd: Income not included in P/L but taxable, e.g. FSI remittedAdd: Expenses included in P/L but not deductible, e.g. dep, donationsLess: Expenses not included in P/L but deductibleLess: Further deductions (Add back BC here)Adjusted Profits Less: Special Deductions, s14Q R&R Expenses Less: Capital Allowances, IBA, BA, S10(1)(a) income (net)Add: Non-s10(1)(a) income, e.g. dividends, interest incomeStatutory IncomeLess: Unabsorbed business losses b/fLess: Approved donations (250%)Less: Group Relief, Carry backAssessable Income or Chargeable Income b4 Exempt Amount [b]Less: Exempt Amount (75% of $10,000 + 50% of next $290,000) $152.5kChargeable IncomeTax Payable @ 17%Less: Foreign Tax Credit, e.g. s50A or DTRTax Payable/Refund [a]Singapore Effective Tax Rate = [a] [b]Corporate Tax rebate (lower of 30% or $30,000) YA15 (Lower of 30% Or $20k) YA16/17Net Tax Payable

CHARGING SECTION: S10(1)(a) gains or profits from Trade, Business, Profession, Vocation (TBPV)(b) gains or profits from employment(d) dividends, interest or discount(e) pension, charge, annuity(f) rent, royalties, premiums and other profits arising from property(g) gains or profits of an income nature not falling within (a)-(f)

TAX RESIDENCE OF COMPANIESs2(1): Control & Management of whose business is exercised in Singapore-place of General Meeting

TAX RESIDENCE OF INDIVIDUALS (s2: two tests)1. Qualitative test Resides in Singapore except for such temporary absences there from as may be reasonable and not inconsistent with his claim to be resident2. Quantitative test(a) Physically present 183 days in preceding calendar year; or (b) Exercises an employment (except company director) 183 days in preceding calendar year3. Administrative concessions (2 or 3-year tax rule for non-residents)4. 50% tax rebate on tax payable (capped at $1k/individual)CAPITAL VS REVENUE RECEIPTS1. Fixed vs Circulating capital (a) Fixed Capital Assets retained or used in the business for the purpose of producing profit (b) Circulating capital Assets purchased in ordinary course of business for resale/manufacture of a final product to be sold

2. Tree vs Fruit analogy (asset = business permanent structure = capital)

TAXABILITY OF RECEIPTS: 5 WWPs (Capital or Revenue Receipt)1. Payment for sale of assets of a business are prima facie capital receipts2. Payments received for the destruction of recipients' profit-making apparatus are receipts of a capital nature*3. Payments in lieu of trading receipts are of a revenue character*4. Payments made in return for the imposition of substantial restrictions on the activities of a trader are on capital account5. Payments of a recurrent nature are more likely to be treated as revenue receipts*Note: Cancellation of contracts (WWP 2 and 3)

6 BADGES OF TRADE (transaction = taxable profit bears badges of trade)1. Subject matter of the transaction2. Length of period of ownership3. Frequency of similar transactions4. Whether supplementary work on or in connection with the property realised had been preformed5. Circumstances responsible for realisation exigencies?6. Motive at time of purchase7. Others: financing, feasibility studies LT Loan, repayment ability?

Subsidiary v BranchSubsidiary: usually R unless mgt & control outside SgForeign coy with Branch: usually NR unless mgt & control in Sg

P/E: FOREIGN ENTERPRISES DOING BIZ IN SG Trading IN or WITHP/E: Minimum level of activity that would render a foreign enterprise taxable in another country (see treaty)Asset test fixed place of business maintained by enterpriseAgency/Relationship test dependent agent acting on behalf of enterpriseActivity test supervisory? Purchasing unit? Existence of business - concept of P/E Not P/E: warehousing, mere purchasing function, representative office (s2(1)) Asset test: Fixed place of biz Activity test: construction, installation/assembly project >6mth; Substantial equipment is being used or installed Agency: person acting on behalf in SG, who Has & habitually exercise authority to conclude contract Maintains stock of goods for delivery Habitually secures orders Dependent agent regularly concludes contracts (PE). Not PE if act in the ordinary course of his biz (Independent agent)If activities are confined to auxiliary/support servicerep officeNTIf refer orders to company for acceptance or mere storage/purchase of goods not PE

s15(1) EXPENSES PROHIBITED a) Private or domestic expensesb) Expense not wholly and exclusively for purpose of acquiring incomec) Capital withdrawn or sum employed or intended for capital... income d) Capital employed in improvementse) Sums recoverable under an insurance or contract of indemnityf) Rent or repairs to premises not occupied for producing incomeg) Singapore or foreign income tax (tax expense)j) s12(6) payments (interest and other borrowing costs) paid by person outside Sg to another person outside Sg unless accounted under s45 WHT k) Car expensese) Exceptions taxis, cars for driving instruction, private hire cars, cars registered outside Sg and used extensively outside Sg

s14(1) GENERAL DEDUCTION FORMULA(Source by source concept)Deducted all outgoings and expenses wholly and exclusively incurred during that period by that person in the production of the income

Interest expense s14(1)(a): Any sum payable by way of interest upon any money borrowed by that person where the Comptroller is satisfied that the interest was payable on capital employed in acquiring income

Repairs and Renewals s14(1)(c): Repairs of premises, plant, machinery or fixtures, Renewal, repair or alteration of implement, utensil or article Initial repairs: Law Shipping case (Cap) Odeon Theatres case (Rev) Improvements: not deductible () Original Item(ND) Replacement item(deductible)

Bad & Doubtful debts - s14(1)(d): Conditions: debt incurred in any TBPV and on revenue acc. Relate to a debt that had been included in the income of trader in year it was derived. Debt became bad in basis year (irrecoverable). Biz must be carried out in basis year.Recovery is T in year recovery was made. For debts of company taken over by purchasing coy becomes bad: ND and NTSpecific provisions for doubtful trade debts are deductible if comptroller is satisfied that it is unrecoverable. General arbitrary (made by taking a % of total outstanding trading debt and debiting this amount to revenue account.

Employers Contributions to Pension & Provident Funds s14(1)(e)Restrictions of Expenses: Medical expenses s14(5) - 1% of total employee remuneration. YA08 onwards - 2% if satisfy TMIS and PMBS. Restricted to Sporean workers, up to statutory contribution amt.

Foreign Exchange Differences: Capital nature () Revenue nature () IRAS concession. If not, revert to old: FX diff of revenue nature must be realised = taxable/deductible

Pre-commencement Expenses: Not deductible () Concession: Deduction allowed () for expenses of a revenue nature incurred from first day of a/cg year - derives its first $ of trading receipts

Special deductions: Deduction of expenditure that would not be allowable under general deduction formula: (S14Q Deduction on R&R)

- $300,000 for every 3-year period (3 year write off on straight line basis)- Must not involve structural change where BCA approval is needed. - Can be brought forward if unutilised. No group relief or carry back. Prohibited: Designer/Professional fee, antiques, work of fine art

Further deductions: Additional deduction for expenditure already allowed under s14 or allowed as special deduction:-s14B: Approved Trade Fairs, exhibitions, maintenance overseas trade office-s14R: Qualifying Training Expenditure (Under PIC)S14 (1): 100% of Expenditure incurredS14R: 300% of (expenditure incurred/relevant cap*, whichever is lower)*Relevant Cap is $400k/YA ($1.2m from YA13-15 & YA16-18)Approved Donations s37: Cash to institutions of a public character, shares/units, Computers, gifts to approved museums. No lucky draw!! () 250%

Productivity & Innovation Credit YA10 to 18PIC+ Scheme: SP/Partnership/Co carrying on trade whose biz turnover TWDVBalancing Allowance = TWDV > Selling price S24 election. Sale is deemed to be the transfer price, aka TWDV. Buyer can claim 19A CA/19 CA on TWDV Balancing charge is restricted to amt of allowances previously granted

INDUSTRIAL BUILDING ALLOWANCES (IBA) Definition: manufacture, processing, storage, prescribed purpose Other qualifying IBS: staff canteens, R&R rooms, childcare facilities, washroom, carparks, roads, fences (structure) Initial Allowances (IA): 25%, s16(1) - when qualifying activity commence Annual Allowances (AA): 3%, s16(4) when building is in use (full QC) - (as at end of BP)Industrial building or structure (IBS): building or structure must not be used for a non-qualifying purpose, s18(6) - except Sentosa hotel, land - Dwelling, retail shop, showroom, hotel, admin off or ancillary purpose - Subject to the 10% rule, s18(7)

Owner can claim Construct IBS Buy new IBS Buy used (2nd hand) IBS- Owners own qualifying trade leased out for use in qualifying trade- Lessee use IBS for its qualifying trade- Must have relevant interest at the end of the basis period concerned

IBA Claimable when the asset is in use Person who constructed IBS: 25% IA, 3% AA Person who bought IBS (>1 Jan 2006), AA claimable, IA claimable only if previously not claimed BA/BC, s18(9): Add back notional allowance in the years not claimed

Non-Qualifying Cost for IBA- Cost of land, stamp duty, legal expenses, interest expense for construction (claimable under s14(1)a)

INTELLECTUAL PROPERTY RIGHTS (IPR) S19B WDACapex on acquiring IPR claimed over 5 years (20% per YA), Net of legal and registration fee. Enhanced WDA = 20% x 300% x Exp (PIC Scheme)

PRODUCTIVITY & INNOVATION CREDIT (PIC)300% for PAE (s19A(10A)) and IPR (s19B)Base = 100% & Enhanced = 300% or cap (whichever is lower)

LAND INTENSIFICATION ACT (LIA) Replace IBA from 23/2/10IA 25%, AA 5% *Asset must be in useQualifying period: 1/7/10 to 30/6/15. Apply from 23/2/10 onwardsQualifying ind: pharmaceutical, petrochemical, aerospace, semiconductorFor new building/existing building/renovation/extension

UNABSORBED CAPITAL ALLOWANCESAVAILABLE OPTIONS IN SEQUENCE FOR UCA AND UBL, e.g. YA081. Loss Transfer under Group Relief Scheme [s37C]2. Carry-back to YA 2007 [s37E]3. Carry-forward to YA 09 [s23(1) & 37]

(A) LOSS TRANSFER SYSTEM OF GROUP RELIEF s37CCompanies must belong to same group (>75%) (NOT in foreign countries)1. Current year unabsorbed capital allowances2. Current year unabsorbed business losses including Further Deductions, exception: unutilised s14Q expenses cannot be transferred3. Current year unabsorbed donations

Qualifying Group Companies- Singapore incorporated companies (cannot foreign incorporated)- Shareholdings - Ordinary shares only (cannot have fixed dividends)- Members of same group - same accounting year-end- Maintain 75% shareholding level throughout basis period- Elect to transfer loss items s37C(11)

Ordinary Shareholding Requirement- >75% ordinary share capital in one company is beneficially held, directly or indirectly by the other- >75% ordinary share capital in each of the 2 companies is beneficially held, directly or indirectly by a 3rd SICTransferor coy: must specify order of priority to claimant s37c(12) Claimant coy: cannot specify amount, only decide who first

(B) CARRY-BACK RELIEF (s37E) Maximum relief of $100,000 [s37E(5)] Order of set-off , s37E(2): UCA, followed by UBL (no donations) Carry-back against assessable income of immediate preceding YA. (E.g. YA2015 c/b to YA14)

Must satisfy following tests- Same Business test, s37E(11) Unutilised CA (UCA) only- Shareholders continuity test for companies, s37E(12) UCA/UBL (Same Shareholders must hold >50% issued shares at both relevant dates)

Relevant dates for Unutilised CA CARRY-BACK to 2007: - First day of YA in which CA arose incurred (1 Jan 2010) - Last day of YA in which CA is utilised (31 Dec 2007)

Relevant dates for BUSINESS LOSS for CARRY-BACK:- First day of loss/calendar year in which loss was incurred (1 Jan 2009)- Last day of YA in which the loss was utilised (31 Dec 2007) s10(1)(a) BUSINESS LOSS [only S/H continuity test]- Loss incurred in any TBPV, i.e. s10(1)(a) source- Deductible against current years statutory income - s37(3)(a) (FIFO)- Order of set-off: s37(4) - Statutory income from same TBPV, then other TBPV- Statutory income from any other source, i.e. non-s10(1)(a) income

(C) CARRY FORWARD (UCA - s23/BL - s37) Same Business Test: Taxpayer carries on same TBP UCA only Shareholders Continuity Test: >50% of the issued shares... UCA/UBL

Relevant dates UCA for CARRY-FORWARD to 2011: - Last day of YA in which CA arose (31 Dec 2010) - First day of YA in which CA would otherwise be claimed (1 Jan 2011)

Relevant dates BUSINESS LOSS for CARRY-FORWARD to 2011:- Last day of loss year in which losses was incurred (31 Dec 2009)- First day of YA in which loss would be deductible (1 Jan 2011)

(D) DONATIONS (s37) Only carry forward. Cannot carry-back for donations!! Set-off in following order after deducting business losses, s37(7): - Donations of prior YAs (FIFO basis), s37(9) - Current year donations - Transfer of current years donations under Grp Relief Scheme, s37(8) 6 years to claim deductions, i.e. carry forward for 5 YAs, s37(8) - Must satisfy substantial shareholders test

Relevant dates UNABSORBED DONATIONS for CARRY-FORWARD: - Last day of year in which donation was made - First day of YA in which loss would be deductible (1 Jan 2011)

(E) SUBSTANTIAL CHANGE IN SHAREHOLDERS AND SHAREHOLDINGS - UCA cannot be c/f s23(4) - Losses and donations will be disregarded s37(12) - Once disregarded, not allowed in any subsequent YA - s37(13) OTHER INCOMEConditions for S12(6) interest and S12(7) paymentsi) Borne directly or indirectly by person R in SG or PE in SG except in respect of biz carried on outside SG or PE outside SG or immovable property outside SG ORii) Deductible against income accruing in/derived from SGMOF 1977 Press Statement -not deemed SSI, no WHT

12(6)(a) interest: where the item in 12(6)(a) is performed outside SG, hereby not treated as covered by the provision of sec 12(6)(a) S12(7)(A) royalty: type payment that are for licensing of movable property, where there is no transfer of ownership. 12(7)(b)1st limb: know how payments. 12(7)(b)2nd limb: Show-how, payment technical assistance Management or assistance fee S12(7)(c) payment to persons outside SG not associated with the payer in SG are outside the scope of 12(7)(c) Conditions: 1. Transactions/assistance/service performed outside SG; 2. arms length transactions; 3. not with intent to siphon off SSI

Taxation of Non-ResidentsWithholding tax when person makes S12(6)/(7) payments to person not known to be R in SG. Or hard to collect. NWTR17% (if PE in SG): show-how; management fees, technical assistance, service fees May file tax return to claim expenses DA(direct assessment) (17%) if NR carrying on TBP in SG or PE applies to IRAS for waiver on WHT Conditions for final WHT: income not derived by NR from a TBPV carried on in SG and not effectively connected with PE in SG of NR Final 10%: royalty; know-how payments 12(7)(a) & (b) Final 15%: interest 12(6); rent of movable property 12(d); (Or treaty rate for those final, whichever is lower)

Withholding tax: When to pay IRAS? By 15th of the second month following the month in which the income is paid or deemed paid (E.g. 10 March 2015 -> 15 May 2015)

1) This amount ______ will be a knowhow/ showhow or royalty payment(Royalty payment the 20% SG company annual gross receipts is paid for the use of, or the right to use Foreign companys name and registered trademark in marketing and selling the bottled oils and essences. Thus, it is a royalty payment)2) Deemed to be derived from SG as it falls under the 1st/2nd of 12(7)(b) or 12(7)(a), which covers _____. This payment is borne directly by __, a company resident in SG3) This payment will be taxable in SG under sec10 (1) and since __ is a NR, this income will be subjected to withholding tax of __%. GIVE REASON (whether can file tax return to claim expenses)4) DISCUSS deductibility for the other party (if no deduct then consider cap allowances)5) Conclusion: __ has to withhold __% of __. The notice of deduction of tax has to be given to the comptroller. The amt withheld is to be paid to IRAS on the 15th day of the 2nd month following the date of payment to __.

DOOUBLE TAXATION RELIEF received in Singapore - s10(25): (a) remitted to, transmitted or brought into Singapore (b) applied in or towards satisfaction of any debt incurredin respect of a trade or business carried on in Singapore;(c) applied to purchase any movable property which is brought into sg Claiming Relief under Tax Treaties, s49: Claimant - Singapore resident Foreign tax paid/payable in foreign country Foreign income remitted or deemed to be remitted into Singapore

METHODS OF RELIEF FROM DOUBLE TAXATION(1 S13(8) TAX EXEMPTION - Foreign sourced dividend income (paid by non-Sg resident company) - Foreign branch profits (only trade/business income of branch) - Foreign-sourced service income (in the course of TBP) - (Service) Fixed place of operations in foreign jurisdiction (PE)- If no fixed place of operation in FJ, then income is Sg-source

s13(9) CONDITIONS 1. FSI subject to tax in country from which the income is received2. Headline tax rate of FJ at least 15% in year in which income is received3. Comptroller is satisfied that tax exemption is beneficial for taxpayer[Concession: condition satisfied if tax exemption is a direct consequence of FJ being granted tax incentive for carrying out substantive biz in FJ]

Fixed Place of Operation: Refers to a place of mgt, an office, or a certain amount of floor space at the disposal of person carrying on a TBP of rendering services thru which employees perform income activities - Must have features of permanence - Be at the disposal of the person on an ongoing basis - Is used regularly by person to carry on his TBP of rendering services

(2) TAX CREDIT METHOD Non Treaty: s50A Unilateral tax relief: Applicable to following income of Sg resident from non-treaty countries (for dividends, royalities*, overseas branch profits or income from any professional, consultancy...)- *Not borne directly/indirectly by person resident in Sg or P/E in Sg; or- *Not deductible against any Sg-source incomeNote: claim s50A credit where s13(8) tax exemption does not apply Rule: Lower of Singapore and foeign tax payable on the FSI (foreign tax on FSI versus (SETR%*Re-gross/Gross FSI))(2a) S50C-foreign tax credit pooling: Condition: Subject to foreign tax; Headline tax in source country 15%; Subject to tax in SGP; eligible for FTC under tax treaty/UCTR Lower of: aggr of actual foreign tax and aggr of SGP tax

(3) TAX SPARING RELIEF: Tax credit given under treaty. Deem tax paid in foreign country

(4) DEDUCTION METHOD Taxable on net foreign income received No need to gross-up for foreign tax Indirect deduction given for foreign tax paid Used when a resident person elects not to be granted tax credit method, s50(8) or when no other method of relief (ie. tax exemption, DTR, UTR) is available

DIVIDENDS Underlying Tax: Tax that is payable on the profits out of which the dividend is paid Dividend Withholding Tax: Tax that is withheld on the dividend paid, and remitted to the tax authorities DTR cover UT, regross dividend in SI. DTR dont cover UT, gross dividend

DIVIDENDSDistribution by a company to its shareholders in money or money's worth representing a share of its profits, otherwise than by a return of capital- Accrues on the date it is declared payable- Location of the source is where the company is resident - A Sg resident company pays a Singapore dividend

Types of Corporate Tax Systems One-tier system (exempt, not taxable) - Corporate tax paid by company is a final tax- Can claim tax credit for Underlying Tax paid by company- Expenses incurred to earn exempt dividend income = not deductible

Imputation System (dividend taxable)- Corporate tax paid by company is not the final tax (no underlying tax)- Claim tax credit for tax paid by company (i.e. tax deducted at source) - Expenses incurred in earning dividend income = Deductible

Classical system: Tax on two levels: Company & Shareholder

According to s10(1), the 2nd limb states that income tax shall be payable at a rate or rates specified hereinafter for each YA upon the income of any person received in SG from outside SG.

1) Quote sec10 (25) to prove received in SG; if not give conclusion2) Examine whether exemption, DTR, UTR or deduction is applicable (an FI will qualify for UTR if both exemption & DTR is not applicable)3) Conclusion: report gross up amount of __. Quantity each relief if possibleM

TAXATION OF INDIVIDUALS Source of Employment Income- Where the employment is exercised, s12(4)- Gains or profits from any employment exercised in Sg shall be deemed to be derived from Sg whether the income is received in SgAllowance (T)/Reimbursement (NT)Personal benefit taxable Business related not taxable, unless excess Club membership (personal benefit derived?); allowance unless its 4 subsistence, travelling, conveyance/ entertainment on purposes other than those prohibited under S15

PERQUISITES1) ACCOMODATION/HOUSING BENEFIT, - Taxable benefit = AV Rent contributed by employee- F&F in residential ppty: Taxable benefit = X% x AV (40% - partially furnished & 50% - fully furnished)2) Interest Subsidy Interest-free or subsidised loan- Scheme available to all employees on similar terms - Not Taxable - Scheme available ONLY to specific persons - Benefit Taxable3) - Employees income tax liability borne by employer - Taxable- Insurance premiums (NOT taxable if ER is beneficiary)- Car benefit = 3/7 x [(Cost RV)/10] + $x/km x pte km(x = 0.45 employee pay & 0.55 employer pay)- ESO: Taxable benefit = [(Last done price on listing date(SGX listed)/MV on date of exercise(Others) Price paid by employee] x No of shares acquired under option)- Subsidy/allowance for licensed childcare Tax exempt-Home leave passage: Under IRAS concession, the taxable benefit of leave passages is computed as 20% of their value if the passages are to the employees home country. The concession is limited to only 1passage each for the employee and his wife and 2passages for each child annually. Any extra trips is fully taxable.

OTHER PAYMENTS Inducement payments: Compensation for permanent loss of status/ Forgo a personal advantage - Capital Nature (not taxable) Payment for future service (Taxable) Restrictive covenants (Capital)

TERMINATION PAYMENTS - Compensation for loss of employment: Retrenchment pay relating to cessation of an employment (a source of income) will be capital receipt even if contractual or amt calculated on length of past service - Payment in lieu of notice - Taxable - Gratuity for past services Taxable

NON-RESIDENT EMPLOYEES Up to 60 days: employment income exempted from tax, s13(6) >60 days: employment income taxable (S40B) - NR: Greater of 15% on EI or tax payable on EI on resident basis - Resident: tax on resident basis for the EI

GOODS AND SERVICES TAX

GST Registration Cost-Benefit Analysis1. Compulsory s9 and 1st Sch Para 1: If total value of taxable supplies exceeds or is expected to exceed $1million Retrospective Test (applies on 31/3, 30/6, 30/9, 31/12) Total value of supplies (exclude sales of capital assets) > $1m for the current and last 3 quarters; notified within 30 days of the end of the quarterregister, Unless < $1m for next 4 quarters Prospective Test (applies on any date) Total value of supplies (exclude sales of capital assets) expected in next 12 months > $1m; notified within 30 days of the beginning of that period

2. Voluntary 1st Sch. Paras 8 & 9 (Beneficial for export company with lotsa GST suppliers)

TIME OF SUPPLY s11&12: When to account for output GSTEarliest of the following 3 dates:

From 1/1/11 onwards - Date of tax invoice - Date payment is received - Goods removed or made available or when services are performed (*)Exception: 14-day Rule- Use tax invoice date if the tax invoice is issued within 14 days of (*)- Payment received prevail this 14-day rule

TYPES OF SUPPLIES (Determined by Place of Supply) Out of Scope supply: Sale of biz as going concern, sales outside sg Exempt Supply: Supply made in Sg excluded under s22 and 4th Sch - Sale and lease of residential properties- Financial services to staff or related coy (except brokerage fees-GST)-Interest earned from bank- Input tax not recoverable (exempt output tax, cannot claim input tax) Zero-rated supply (0%), s21: look at subject matter- Export of goods (freight charges), international services-s21(3)-Service by SG firm rendered o/s SG (even if engaged by a SG firm) - Input tax is recoverable (unlike exempt supply) Standard-rated supply, s16: 7%, incl sale of capital assets not amt to transfer of business, service/goods provided by overseas to SG company.VALUE OF SUPPLY (VOS)-Value of supply + GST = Cash consideration- If absorbed by trader: 93.46% +6.54% = 100%-Value of supply = OMV consideration (net of discount, GST excl)-VOS includes cost, insurance, freight charges, duties Out of pocket expenses If incurred in course of making supplies, charge GST If paid on custs behalf to 3rd parties, expenses are disbursements => do not charge GST

PLACE OF SUPPLY1. Supply of goods is made in SG if the goods are physically located in SG at the time of removal2. Supply of services is made in SG if the supplier belongs in SG. CONDITIONS FOR RECOVERING INPUT TAX - s19, 20 GST-registered person Used for the purpose of business Attributable to taxable supplies Documentary evidence, i.e. tax invoice Input tax must not be blocked Reg 26 & 27

BLOCKED INPUT TAX - Reg 26 & 27 Club subscription fees (trade association fees not blocked) Medical and accident insurance premiums (unless obligated under Work Injury Compensation Act) Medical expenses (except work-injury compensation, pre-employment check-ups and compulsory annual medical check-ups) Employees family benefits Motor cars (E/S/Q/SZ plates/private hire cars not claimable, except for vans, motorcycles and heavy vehicles, X/Y/Z plates are claimable)

Gifts of Goods - Deemed Supply, 2nd Schedule, para 5: GOODS ONLYGift of goods being a business asset is treated as a supply of goods unless - Gift not >$200 and does not form a series (>3 times within 3 months) to the same person -Private use of supplies - Entitled to claim input tax credit of the good given away - Deemed output tax paid by vendorGST Return Submit within 1 mth after quarter ended If input GST is attributable to the making of an exempt supply, input GST is not recoverable If it is a non-GST registered co., it will not be able to claim a refund for its input tax. In other words, the co. will end up bearing the input GST as an exp.