More certainty in Singapore tax rules

www.bethelfinance.com
Governments are embracing tax reforms to simplify their tax systems

 We often express how desirable it is to have certainty in tax codes. We also lament how tax rules have become more complex and wish that they could be simplified. But does certainty mean heaving simpler tax rules? Can taxation really be kept simple when business operations and transactions are becoming more complex?
 As Pascal Saint-Amans, director of the OECD, Centre for Tax Policy and Administration, said in a recent dialogue: " In French we talk about ' le realism du droit fiscal ' because realistically if business is complex, then that taxation of that business must be complex. In fact, my view is if taxation isn't complex, it isn't fair. But there is no good reason to overcomplicate the rules."
 With governments trying to bridge the widening gap between spending and incomes, there have been an ever-increasing number of complex changes to tax laws and regulations. No wonder businesses worldwide are feeling a mounting sense of uncertainty.  Yet, in the midst of this storm of changes, governments are also embracing tax reforms to simplify their tax systems, so that they are more competitive and relevant to businesses.
 Take the US for example. House Ways and Means Committee Chairman Dave Camp, in an interview with Ernst & Young, had remarked : "We are not competitive internationally - it is a huge burden, compliance costs are out of sight, it's very complex - and if we can address that, we can get a tax code that's modernised, fair, simple, and really grows the economy and creates jobs. " Well, at least in the short term, the recent fiscal cliff deal offers greater tax certainty and respite for American taxpayers.