Corporate/Company Account

[helppls]

Hi, anyone know when a company can declared as bad debt for those company who own them in business?

When is the validity period (no of year) a company can claim from those who own them? I'm confused

[Strong Eagle]

There does not appear to be any specific amount of time that must pass before you can declare a bad debt.

Instead, you must declare to IRAS the nature of the debt, your attempts to collect it, etc. You must also declare why the debt is not collectible... company bankrupt or unable to pay bills, out of business, etc.

You declare your bad debts as expenses on your own company filing. See this website for more information.

http://iras.gov.sg/irasHome/page04_ekti ... rment_loss

[bensonlew]

Hi, anyone know when a company can declared as bad debt for those company who own them in business?

When is the validity period (no of year) a company can claim from those who own them? I'm confused

Best way to check with Authority like IRAS. But being here, it's likely very hard for you to claim back, especially if it's Pte Ltd as it's limited by shares.

Having experience with my client before, where he owed to many vendors and own staffs for CPF. When a company declare, gov will normally block your Bank .. any money in will be given priority to individual like unpaid salary and CPF. Then the balance will be settled to vendor if still there.

I am not too sure about company how is the procedure, but if happen to individual like CPF, gov will help you to chase even it's pte ltd and the director must be responsible. Coz like CPF, employer cut your contribution ... so they have to give back no matter what unless they want to deal with authority. But if company to company ... not too sure if the settlement will be in that way.

Many people here registered the company under the parents, then didnt pay the vendor and declare bankruptcy ... and many of them able to fool gov.