Singapore: Determining the true nature of payments in a transaction
Income Tax Board of Review
Income Tax Board of Review
The Income Tax Board of Review held that the true nature of the consideration received by the taxpayers must be discerned not only from the mere label used in the sale and purchase agreement, but also from the actual substance of the transaction in question.
Read a May 2023 report [PDF 518 KB] prepared by the KPMG member firm in Singapore that discusses whether the Income Tax Board of Review may discern the nature of the payments under the sale and purchase agreement in such a way that is not supported by the express language of the sale and purchase agreement itself, without invoking the general anti-avoidance provisions in section 33 of the Income Tax Act 1947.
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