The Inland Revenue Authority of Singapore (IRAS) issued an e-Tax Guide (the Guide) on 11 July 2016, clarifying the general anti-avoidance rule and its application.
IRAS issues the Guide with the following purposes:
-To explain IRAS’s approach to the construction of the general anti-avoidance rule in section 33 of the Income Tax Act (ITA); and
–To provide some examples on the arrangements which IRAS views as having the purpose or effect of tax avoidance within the meaning of section 33(1) of the ITA. The examples are provided with the aim of deterring taxpayers from entering into such arrangements. However, the structure of section 33 of the ITA is also based on the “scheme and purpose approach” that was adopted by the Court of Appeal in the case of: in the case of:Comptroller of Income Tax v. AQQ [2014] SGCA 15.
