9 in 10 Singapore firms clamor for more tax guidance

Even if it entails added cost.

88% of Singapore businesses would welcome more global cooperation and guidance from tax authorities on what is acceptable and unacceptable tax planning, even if this provided less opportunity to reduce tax liabilities across borders, according to the latest research from the Grant Thornton International Business Report (IBR), a quarterly survey of more than 3,000 businesses in 44 countries conducted between January and February
2013.

Singapore is not alone in wanting more tax guidance. This sentiment is shared by ASEAN neighbours Malaysia and Philippines and globally 68% of businesses wanted more guidance.

Michelle Seat, Tax Director at Foo Kon Tan Grant Thornton LLP, said: "The findings are not surprising as Singapore taxpayers are generally tax compliant having been shaped by the stringent governance and regulatory environment.

Given that tax is one of a significant costof business, business leaders would want to know what acceptable tax planning is on both in-bound and out-bound international transactions. To the business this is a two-fold gain.

Optimisation of cross-border effective tax rates and at the same time the awareness would reduce cross-border tax offences.”

Another significant findings shows that 84% of Singapore businesses plan to make their tax affairs more transparent to investors and stakeholders.

Michelle added “Accountability to investors and stakeholders is high on business leaders’ agenda here and pushing the boundaries further up can only be better as more transparency certainly leads to lesser conflict and would help avoid incidents of tax frauds.”

Looking at the bigger picture, the views expressed by the global and local business community and particularly in the context of Singapore, reflects a collective will in entrenching Singapore’s reputable international position as a major financial centre for corporates and high networth individuals where financial transparency and good governance takes center stage.