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Tax loophole

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jeovana
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Tax loophole

Postby jeovana » Sun, 05 Dec 2010 3:12 pm

Hi there,

I heard from a friend that to avoid being taxed by the government, you should convert your current assets to fixed assets. Is this idea feasible? As I feel fixed assets do depreciate overtime unless you invest it into shares, property or gold something along that line...

Cheers
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sundaymorningstaple
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Postby sundaymorningstaple » Sun, 05 Dec 2010 3:42 pm

If you find a tax loophole, be sure to publish it in print here and anywhere else you can think of. People who reveal loopholes in print find the loophole closed rather rapidly in Singapore.

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Strong Eagle
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Re: Tax loophole

Postby Strong Eagle » Sun, 05 Dec 2010 6:38 pm

jeovana wrote:Hi there,

I heard from a friend that to avoid being taxed by the government, you should convert your current assets to fixed assets. Is this idea feasible? As I feel fixed assets do depreciate overtime unless you invest it into shares, property or gold something along that line...

Cheers


Ya know... if you put your thinking cap on... and maybe had a bit of financial education, you could figure this one out for yourself.

What are current assets? It's the money in your pocket and in the bank. It's the loan that someone will pay you back next week.

Do you get taxed on your current assets? Even you should know this. The answer is NO.

You do get taxed on the money you EARN... and it almost doesn't matter how it comes to you... money, property, jewels... you get taxed.

Fixed assets... car, jewelry, property. Do you get taxed? You bet... pay your car tax or it gets taken off the road. Pay property tax on your house.

So... your friend really has no idea what she is talking about, and your question doesn't make much sense. If you want to do tax planning in Singapore, first learn what is taxed.

jeovana
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Re: Tax loophole

Postby jeovana » Sun, 05 Dec 2010 7:39 pm

Strong Eagle wrote:
jeovana wrote:Hi there,

I heard from a friend that to avoid being taxed by the government, you should convert your current assets to fixed assets. Is this idea feasible? As I feel fixed assets do depreciate overtime unless you invest it into shares, property or gold something along that line...

Cheers


Ya know... if you put your thinking cap on... and maybe had a bit of financial education, you could figure this one out for yourself.

What are current assets? It's the money in your pocket and in the bank. It's the loan that someone will pay you back next week.

Do you get taxed on your current assets? Even you should know this. The answer is NO.

You do get taxed on the money you EARN... and it almost doesn't matter how it comes to you... money, property, jewels... you get taxed.

Fixed assets... car, jewelry, property. Do you get taxed? You bet... pay your car tax or it gets taken off the road. Pay property tax on your house.

So... your friend really has no idea what she is talking about, and your question doesn't make much sense. If you want to do tax planning in Singapore, first learn what is taxed.



Hey there, alright haha yeah I know nuts about finance..but thanks for the constructive criticism...cheers!
Live life to the fullest!

paramountac
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Postby paramountac » Sat, 11 Dec 2010 4:59 pm

Company tax is 17% while property tax is 10% of the rental. It makes sense. It's not a loophole. Once you hit 5 million and you need to be audited, the next thing you know is you are full of fixed assets. That's when the pain comes. Your fees will be very high.

Believe in our government. Whatever you thought of, is already thought of very long ago. That is no need for sarcasm afterall, a forum is for sharing.


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