How to Avoid, How to Settle

Asia Tax ForumMay 9-10, 2012 – Raffles, Singaporewith the support of

How to Avoid, How to Settle

Dispute Resolution

www.taxand.com

Asia Tax ForumMay 9-10, 2012 – Raffles, Singapore

Speakers

Mukesh Butani – Taxand IndiaMichael Palumbo – Baker HughesEugene Gay – GlaxoSmithKline

Amit Bhalla – Schneider ElectricLeon Kwong Wing – Taxand Singapore


Contents

01 Appeals Mechanisms In Asia-Pacific: Are They Working?

02 How To Prepare If You Are Caught in a Dispute

03 When A Settlement Is The Best Option

04 Tactics For Jurisdictions Where Litigation Is Most Likely

05 Lessons From Key Cases: Hong Kong cases of Li & Fung; CG Lighting and Nice Cheer Investment Limited; Singapore’s First Section 33 Case

06 Key Contacts

07 About Taxand


Appeals Mechanisms: Are They Working?

Alternate mechanisms for dispute resolution; availability of both domestic and international framework?

Learnings from experiences in Asia-Pacific – India, Indonesia, Vietnam, Cambodia

Timing issues in resolving disputes


How To Prepare If You Are Caught In A Dispute

Evaluation of forms of dispute resolution mechanisms available

Experience in different countries: India, Indonesia, China, Vietnam, Philippines, Singapore

Preparing for uncertainty and tax dispute life cycle

Other out of box thoughts


When A Settlement Is The Best Option

Depends on company risk appetite and tax department leadership

May be considered where certainty and timing is important

Evaluation of impact of settlement

Experiences in some Asia Pac countries


Tactics For Jurisdictions Where Litigation Is Most Likely

Timely expert advice

Good housekeeping

Methodologies for mitigating tax and penalty exposure

Keeping top management informed

Country specific experience


Lessons From Key Cases

Singapore’s First Section 33 Case

Vodafone case


Singapore GAAR

•CEC v Comptroller•UOL Development (Novena) Pte Ltd v Commissioner•AQQ v Comptroller


Shareholder’s credit for tax at source on dividends

Company

Profit $100

Shareholder

Dividend $100(Finance) ($100)Net Nil

Tax NilRefund $20

$80 money

$20 creditfor TDS


The factual scenario

MY

SG

SG

SG

MY SG

NewCo


Circular flow of loan money

MY

SG

SG

SG

MY SG

NewCo

$225m money

SG bank

MU bank

$225m convertible note


Circular flow of interest

MY

SG

SG

SG

MY SG

NewCo

SG bank

MU bank

Interest-free

Interest

>99% ofinterest <1% of

interest


Thank you


Our Global Service Commitment

About TaxandUnderstanding and managing the tax consequences of cross-border tax transactionsConsidering organisational (re)structuring options in full awareness of the tax implicationsRealising tax, supply chain and overall operational efficienciesInterpreting technical tax provisionsLowering effective tax ratesAddressing and preventing tax leakagesEnsuring tax complianceManaging relationships with tax authorities


Global Coverage

About TaxandArgentina France Mauritius Singapore

Australia Germany Mexico South Africa

Austria Greece Netherlands Spain

Belgium Hungary Norway Sweden

Brazil India Pakistan Switzerland

Canada Indonesia Panama Thailand

Chile Ireland Peru Turkey

China Italy Philippines UK

Colombia Japan Poland Ukraine

Cyprus Korea Portugal USA

Curacao Luxembourg Puerto Rico Venezuela

Denmark Malaysia Romania

Finland Malta Russia


Why Taxand?

Dedicated to tax Local knowledge, global view

Independence advantage – conflict free, un-bureaucratic, best practice

Partner led from start to finish

Passionate about working together

Complex problems, customised advice

Practical advice, responsively delivered


E.T.

[email protected]+91 124 339 5010

Mukesh Butani is a member of the Taxand board which comprises nine Taxand country Managing Partners from around the world, and Chairman of BMR Advisors, Taxand India. Specialising in international tax and transfer pricing, Mukesh has more than 25 years of experience in advising Fortune 500 multinationals and Indian business houses on a range of matters spanning cross-border tax structuring, tax controversy and tax policy structuring.

In addition to his advisory role, Mukesh has represented clients in tax disputes, tax advocacy, policy and planning. A former national tax Director and international tax Partner at Arthur Andersen and Ernst & Young, Mukesh serves as Vice Chairman of the Commission on Taxation, International Chamber of Commerce (ICC). Mukesh is a qualified Chartered Accountant and is enrolled as an Advocate with the Bar Council of India.

Mukesh Butani

Taxand India

Presenter Profile


E.T.

[email protected]+65 9780 1615

Michael joined Baker Hughes in 2000 and has responsibility for Baker Hughes’ tax affairs in Asia encompassing 20 countries, leading and managing the Asia Pacific Tax Team located in 6 countries, and he is based in Singapore. Prior to coming to Asia 9 years ago, Michael had responsibility for Baker Hughes’ tax affairs in the Middle East and was based in London, United Kingdom. Michael has nearly 20 years of various accounting and tax experience with different companies in various industries. A native of Chicago, Illinois, Michael has lived and worked internationally for over 14 years and has been to over 70 countries on 6 different continents and managed tax issues in over 40 countries. His favorite saying is: “Oil and gas take you to places which are not in the tour guides”. Michael earned a Master of Science in Taxation Degree and a Bachelor of Science in Commerce Degree, with a Major in Accounting, from DePaul University in Chicago and he is a Certified Public Accountant in the State of Illinois and a member of both the American Institute of Certified Public Accountants and Tax Executives Institute (Asia Chapter).

Michael PalumboAsia Pacific Tax Director,

Baker Hughes

Presenter Profile


E.T.


[ ]

Eugene Gay

GSK

Presenter Profile


E.T.


Amit Bhalla is the Vice President Tax & Customs APAC for Schneider Electric based in Singapore. In his role, he is responsible for the tax & customs affairs for the region, which includes Greater China, Japan, India, Australia, New Zealand and South East Asia region.

Amit began his tax career in India with the accounting firm Arthur Andersen in 1994 and was in tax consulting for more than 8 years. Thereafter, he moved into industry specialising in the technology sector. He worked for Huawei Technologies, Cisco Systems and more recently Nortel Networks. During his career, he has worked and lived in India, China, UK and Singapore.

Amit is a fellow member of the Institute of Chartered Accountants of India and a graduate from SRCC, University of Delhi.

Amit BhallaVP Tax & Customs APAC

Schneider Electric

Presenter Profile


E.T.

[email protected] +65 6238 3018

Kwong Wing Leon is based in Taxand Singapore where he is a Partner and the Head of Tax at KhattarWong. He is also a barrister (Gray’s Inn), an advocate and solicitor (Singapore), and a registered trust and estate practitioner (TEP). Kwong Wing has been with Singapore’s Taxand practice, KhattarWong, for his entire career. Kwong Wing advises on income tax, property tax, goods and services tax and stamp duty in Singapore.

He also defends taxpayers in audit and investigation cases, pursues objections against Revenue assessments and valuations, and acts as counsel in hearings at Review Boards and in the Courts. He is the Revenue law lecturer at the Singapore Bar course, and editor of Halsbury's Laws of Singapore: Revenue and Taxation published by LexisNexis.

Leon Kwong Wing

Taxand Singapore

Presenter Profile


Key Contacts

Michael PalumboBaker HughesE. [email protected]. +65 9780 1615

Eugene GayGlaxoSmithKlineE. [email protected]. +65 6232 8338

Mukesh ButaniTaxand IndiaE. [email protected]. +91 124 339 5010

Leon Kwong WingTaxand SingaporeE. [email protected]. +65 6238 3018

Amit BhallaSchneider-ElectricE. [email protected]. +65 6480 2049

http://www.taxand.com/events

ABOUT TAXAND

Taxand provides high quality, integrated tax advice worldwide. Our tax professionals, nearly 400 tax partners and over 2,000 tax advisors in nearly 50 countries - grasp both the fine points of tax and the broader strategic implications, helping you mitigate risk, manage your tax burden and drive the performance of your business.

We're passionate about tax. We collaborate and share knowledge, capitalising on our collective expertise to provide you with high quality, tailored advice that helps relieve the pressures associated with making complex tax decisions.

We're also independent—ensuring that you adhere both to best practice and to tax law and that we remain free from time-consuming audit-based conflict checks. This enables us to deliver practical advice, responsively.Taxand is a global organisation of tax advisory firms. Each firm in each country is a separate and independent legal entity responsible for delivering client services.

© Copyright Taxand Economic Interest Grouping 2011Registered office: 1B Heienhaff, L-1736 Senningerberg – RCS Luxembourg C68


How to Avoid, How to Settle

Documents

Transcript of How to Avoid, How to Settle