For example, it is untenable to pay out money to a company first to help it buy equipment without knowing if the firm is financially sound.
My personal experience with the Inland Revenue Authority of Singapore (Iras) is that it is definitely not tardy in replying to queries and evaluating PIC applications.
My only peeve is that the scheme penalises companies like mine, whose financial year ends on March 31.
The scheme operates on a preceding year of assessment basis. For example, expenditures after March 2013, when the firm's financial year has concluded, qualify only in the year of assessment in 2015.
While Iras mitigates this by having an aggregate period of three to four years in which tax deductions can be made, my company is penalised as cash payouts for expenditures of up to $100,000 apply only to each year of assessment.
I believe this lapse can be plugged administratively to ensure an equitable system for all companies.
Steven Gregory Ang Boon Kiang
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