Temasek selling Merrill Lynch at a loss

last SG · 2008-07-28T20:26:28+00:00

Yah.....I think they made the purchase a little too early in its timing....But then again....since it is deemed 'long-term' investment...and since a perfect...

freedom4ever SG

I am sure it will be in both you and Eagle's interest that everyone in this forums are stupid so that both of you can brag about your mighty talents and ability to do many things and no one will question you.

WE have seens this sort of arm chair critics stuns too many time in this forum already. You have to work harder than that if you really want to gain some credibility for yourself as not simply a big talker.

did i refer to you?

maurizio13 SG

did i refer to you?

hahaha......

不打自招

maurizio13 SG

O o O o,

U sure a not, there is something called post balance sheet event (FRS 10.8).

If u don't know what is FRS, let me tell u. This is called the financial reporting standard of the Republic of Singapore.

FRS 10.8

a) Those that provide evidence of conditions that existed at the balance sheet date (adjusting events).

An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after the balance sheet date.

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Don't try to say balance sheet is only for "Company" and not "sole proprietorship or LLP". Because FRS is used to determine how much tax should IRAS draw from a self-employed.

So long as the partnership's intent takes effect before the financial year 2007, the amount of taxable income will still be adjusted. So what u have try to argue has fallen prey to this FRS rule.

Thanks for pointing out.

My error in phrasing the question.

Should add another "future years of assessment." But the general idea and principles the same, that is to reduce his taxable profits by giving away half his company. I suppose next you going to argue that how he knows next year profits will be $80,000.

Possible?

Ask this of you, a businessman with a chargeable income of $80,000 for year of assessment 2007 and tax charge of $4,300, decides to keep away from paying tax by giving his wife a 50% of his sole proprietorship company shares, thereby reducing their total tax payable from $4,300 to $1,800 for the future years of assessment. (My original figures for tax payable was wrong as pointed out by jojobeach in page 16, corrected figures in blue.)

The businessman effectively cheated IRAS by avoiding the difference of the two tax payable, which is $2,500.

Did he commit tax evasion?

O o O o SG

hahaha......

不打自招

Maurizio, please dont go off topic and start talking to those big talkers.

Lets get back to the subject of our discussion,

1) Is there such thing as SHARES in SOLE proprietorship company? If he include his wife as a partner in the business, then it will not be call giving 50% of this SOLE propertorship company share, it will be call Partnership or LLP shares

2) AFAIK as a sole proprietor, your tax filing is through your personal income tax return, while for a partnership company you will be filing your company income through a seperate partnership income tax returns.

Hence when you say that by the end of the financial year 2007, the owner of the sole proprietor could convert his company into a partnership to save on tax is pure bullshit because the company's income for financial year 2007, or before the converstion will be treated as, the sole proprietor personal income. And any sharing of income among the newly established partnership company will only start in financial year 2008.

O o O o SG

Thanks for pointing out.

My error in phrasing the question.

Should add another "year of assessment 2008." But the general idea and principles the same, I suppose next you going to argue that how he knows next year profits will be $80,000.

Possible?

Ask this of you, a businessman with a chargeable income of $80,000 for year of assessment 2007 and tax charge of $4,300, decides to keep away from paying tax by giving his wife a 50% of his sole proprietorship company shares, thereby reducing their total tax payable from $4,300 to $1,800 for year of assessment 2008. (My original figures for tax payable was wrong as pointed out by jojobeach in page 16, corrected figures in blue.)

The businessman effectively cheated IRAS by avoiding the difference of the two tax payable, which is $2,500.

Did he commit tax evasion?

Maurzio,

when did you start venturing into flipping roti plata?

Didnt you said you from ACCA?

maurizio13 SG

Maurzio,

when did you start venturing into flipping roti plata?

Didnt you said you from ACCA?

maurizio13 SG

Maurizio, please dont go off topic and start talking to those big talkers.

Lets get back to the subject of our discussion,

So I gather from your response that it is not possible to do so?

O o O o SG

So I gather from your response that it is not possible to do so?

Maurizio, please dont get distracted by what Uncertain said.

Since you have proudly claimed that you have done your ACCA, why dont you just answer to my simple layman questions.

maurizio13 SG

Ok.

The general question (principle) was, can a husband give his wife half his company (assuming future profits is $80,000) so that he can reduce his marginal tax rate of 5.375% to marginal tax rate of 2.25% for his future tax assessment?

No?

Uncertain SG

Uncertain, you have once jump into conclusion without reading the details of my discussion with M13, hence I believe it is better if I ask if you have read the following statement from Maurizio13

I am fully aware what is required by IRAS as they are clearly stated in with website, including the part on balance sheet. http://www.iras.gov.sg/irasHome/page01.aspx?id=1262

Since Maurizio13 suggesting here is about one could evade tax by switching a company from sole proprietor status to a partnership and splitting the income between 2 person. hence my question is,

a) Even taking into consideration of FRS 10.8, how can you justify to IRAS you need to pay 50% of the company's profit to someone who never exisit in your company during FY07? We are talking about a shareholder here, not some bad debts provision, WIP, stocks adjustment, assets reclassification etc.

b) How would you do your income tax filing since, for Sole proprietor, you can only file through your personal income tax returns, while for a partnership company you must file through a Company Income tax returns which will send to the company seperately at the end of first financial year?

You mean one cannot split his shares into various equal parts to his sons? wife? Even singapore television show got show father split his shares to his sons.

Is there a need to justify to IRAS about the stock transfer? Got then show link.

Show me the link to substantiate your point that sole proprietor declare income tax via personal income tax and partnership declare income via company income tax.

I didn't jump into any conclusion. Open ur eyes big big and read what I comment. I merely doubt your sentence on "sole proprietorship switch to partnership" with FRS 10.8.

The only thing u can challenge me and any other forumers here is contradict FRS 10.8 principle which i use against u in the argument why one can evade tax liability by transfering shares.

maurizio13 SG

You mean one cannot split his shares into various equal parts to his sons? wife? Even singapore television show got show father split his shares to his sons.

Is there a need to justify to IRAS about the stock transfer? Got then show link.

Show me the link to substantiate your point that sole proprietor declare income tax via personal income tax and partnership declare income via company income tax.

I didn't jump into any conclusion. Open ur eyes big big and read what I comment. I merely doubt your sentence on "sole proprietorship switch to partnership" with FRS 10.8.

The only thing u can challenge me and any other forumers here is contradict FRS 10.8 principle which i use against u in the argument why one can evade tax liability by transfering shares.

It's actually quite hopeless, he will oppose for the sake of opposing regardless of the facts.

A Gazelle will always be a Gazelle.

Uncertain SG

It's actually quite hopeless, he will oppose for the sake of opposing regardless of the facts.

A Gazelle will always be a Gazelle.

haha maurizio13, I know what u mean. I just enjoy arguing with "I am aware of", "u are wrong", "u don't jump into conclusion" kind of people. Once i get bored, i will leave this fool for other stuffs.

but for now, I enjoy flaming him. :D

maurizio13 SG

but for now, I enjoy flaming him. :D

me too, sometimes i bored, get some form of entertainment from him.

eagle SG

wah

so many things happened while I'm out

O o O o SG

You mean one cannot split his shares into various equal parts to his sons? wife? Even singapore television show got show father split his shares to his sons.Is there a need to justify to IRAS about the stock transfer? Got then show link.

If you have been reading with your eyes open, I am sure you wont be asking me such irrelevant question because I was never interest to know if you could split a sole proprietor company into partnerships with 10,000 shareholders and a zillion shares.

Since you claim to know so much about accounting and all that FRS, I am surprise that you are not aware the for a sole proprietor company IRAS doesnt tax your company's income but rather treat it as part of your personal income and is subject to the normal personal income tax (not corporate tax)

So my question to you again is, how can you justified to IRAS that you need to split your PERSONAL income (which is also your company income) with someone who never exist in your company in the last financial year?

Show me the link to substantiate your point that sole proprietor declare income tax via personal income tax and partnership declare income via company income tax.

WAH for someone who can come here to tell me what is post balance sheets event, FRS10.8 etc, still have the cheek to ask me for the link? And the best part here is that, he didnt even realised that I have already posted the damn link for him.

So I guess your early comment was nothing more than some big talking huh? Or are you thinking that you could simply come here and walk all over me?

I didn't jump into any conclusion. Open ur eyes big big and read what I comment. I merely doubt your sentence on "sole proprietorship switch to partnership" with FRS 10.8.

The only thing u can challenge me and any other forumers here is contradict FRS 10.8 principle which i use against u in the argument why one can evade tax liability by transfering shares.

How could you not be jumping into conclusion when you dont even know that filing of income tax return for sole proprietor and partnership companies are different, and when this is the main issue with Maurizio13 suggestion of switching the company to a partnership to take advantage the lower taxes? Are you trying to act like some HERO by talking about something that is not related to what we are talking about here?

Since you are insisting that Maurizio13 suggestion is technically and legally possible, why dont you go straight to the point of answering my questions and concern instead of trying to brag about your FRS 10.8

If you have problem understanding what Maurizio13 was saying you can always ask you know. It is better to ask then pretending to know.

O o O o SG

It's actually quite hopeless, he will oppose for the sake of opposing regardless of the facts.

A Gazelle will always be a Gazelle.

Maurizio, I am sure you know that we know that what you have suggested earlier is pure bullshit and thats why you have been quietly flipping roti plata isnt it?

Beautiful951 SG

Love prata, gonna buy.

maurizio13 SG

I love roti prata. In fact, i'm going to see if they sell some.

where do they sell nice prata?

last time the jalan kayu prata nice.

Beautiful951 SG

where do they sell nice prata?

last time the jalan kayu prata nice.

I like the one in tampines. The tissue prata.

maurizio13 SG

I like the one in tampines. The tissue prata.

never try b4, where the stall?

the curry nice?

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