Some help required on Singapore tax law

[natersuk]

Hi, I have a question with regards to my tax module which I need help with. Could someone advise?

Chris is contemplating to go into a management consultancy business right from the start. He projects that his chargeable income for the first 4 years of operation would be S$100,000 for each year. Rather than
set up one company, he is wondering whether he could save some taxes by setting up 4
identical companies, each carrying out similar businesses. Advise him.

[SBSConsulting]

Re: Some help required on Singapore tax law

I should say you have quite a business sense. Although, this is easily possible in legal terms such business practices are carried out for tax evasion.


Just to refresh your memory, when it comes to statutory obligations, then Singapore is very strict in these matters and if found guilty then the punishment is unimaginable. I wonder, even if you incorporate four different companies, the expenses you will incur to manage and maintain those companies will eventually eat away part of your profit. In addition to that, too much precaution and secrecy has to be maintained to represent these four companies as separate entities.


Well, this is my judgment, but even I would like to know the possibilities and legal implications of such business practices. May be a Singapore company registration service provider could elaborate this topic.

[AFFA]

Re: Some help required on Singapore tax law

I wish to inform you that the provisions of the the Companies Act (Cap 50, 1994 Rev Ed) will have jurisdiction in this matter. As long as the four companies are fully compliant with the provisions of the the Companies Act individually, Chris may not have any adverse legal consequence of multiple incorporation.

AFF