HG Metal and its S44A balance

Background
HG Metal, a listed company in Singapore, is a stockist and manufacturer of steel products. The company has a S44A balance of approximately $1.6mio.
It also wish to conserve funds to expand its capacity to meet growing demand.

Actions taken
To meet the contradiction in shareholders' need to take advantage of the S44A balance with dividend payout against the company's wish to conserve funds for investment, the company came out with the following initiatives:-

• For the year ended 30 Sep 2006, the company has announced a special dividend of 4cts per share ie. 3.6cts (frankable) and 0.4cts (tax exempt).

A shareholder may seek a tax refund on the "frankable" portion. The refund would depend on the difference between the corporate tax rate of 20% and his personal tax rate.

• HG Metal has also simultaneously annouced a 2-for-5 rights issue @20cts. Shareholders have the option to use part or all of the special dividend to take up the rights.

Happy New Year :)

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7% GST

I just want to be the first to pen this down :)

Our neighbours' tax monies

China
Tax collections - SGD$745.5 billions (+21.9%)
Wow!!! So much? Who is paying all these monies?

Philippines
The VAT rate was increased from 10% to 12% in Feb 2006.
The government expects to collect SGD$10.3 billions (+21%) this year.
This is due to expanded tax base and higher VAT rate.
More roads and bridges can now be built. Pls do that.