The Wongs of Cristofori Music School

the void will be filled

There are two Wong brothers, Wong Jian Jong and Wong Jian Reng, who are partners of Cristofori Music School.

The first Wong was convicted on two charges of wilful tax evasion - for making false entries in his income tax returns, claiming he earned less than he did.

Jail term - two weeks and he will have to pay penalties cum taxes totalling $671,170.80 for offences committed from 1998 to 2003. He was in charge of finance, accounts and the filing of the partnership's income tax returns.

For similar offences committed in the same period, the second Wong , who was in charge of recruitment and administration, will pay $624,353.56.

In conclusion, under reporting your income is a bad bad thing to do and you will be punished. Both Wongs have to pay a total of $1.3 mio and one of them got to go to jail.

Sad days for the Wongs.

Water Conservation Tax - You kena tax twice!!!

Karma Tsultrim Wangchuk highlighted in his/her letter to ST Forum today that we are being charged GST on Water Conservation Tax. Are we being tax on a tax? If it is, when? When have we been paying the Water Conservation Tax (WCT)?

I checked my latest PUB bill. There is an item called WCT valued at $3.54 ie. 30% of $11.82 worth of water I have used in the past month. GST of 7% is then applied on the total utilities costs and WCT. Wangchuk asked Ministry of Finance (MOF) to explain.

Ms Low Yin Leng of MOF justified the imposition of GST on WCT on the basis that:-

• "WCT forms part of the total price of water" and;


• "GST is charged on the final value of any goods or services consumed in Singapore".

Wangchuk disagrees on the following basis:-

• WCT does not form the total price of water as the proceeds from WCT go to MOF's pocket and not PUB's pocket.


• PUB must be already charging an economic viable and sustainable pricing for water it is supplying to its customers.

WCT is truly and effectively a tax with the purpose of encouraging a change in behaviour and/or redirecting flow of economic resources.

Wangchuk cited a correct practice of GST on purchase of new cars ie.

"GST is charged on the selling price LESS ARF, COE, Registration Fee and Road Tax" as these are charges imposed by the LTA on vehicle buyers and do not relate to the provision of goods and services.

This leads me to cite my own doubt.

Are the smokers paying GST on the Tobacco Tax included in the selling price of a cigarrete pack?

Not that I care or worry that smokers have been overpaying. We want some consistency. So if PUB and/or MOF has/have made a mistake, just say so, correct the error and move on. Don't try to explain your way deeper and deeper into the mess.

FRS39 Section 34A Assets on Capital account

FRS39 deals with financial assets.


Inventories and fixed assets are outside the scope of the FRS.


FRS39 requires us to categorise and differentiate our assets ie. as to whether our assets are capital or revenue in nature.


Gains or losses related to capital assets will not be taxable nor deductible.

FRS39 Section 34A Impairment claims

Old rule - General and specific provisions for bad and doubtful debts were not tax deductible.

New rule (since Mar 6, 2006)

1. Both individual and collective impairment must be recorded in the income statement and be eligible for tax deduction.
2. For specific provisions to be tax deductible - subject to detailed info being available. What info? Not define by IRAS.

Do on to yourself,

... what you have been doing on to others.

Well I am referring to the decision by IRAS to pay interest to you should they fail to issue tax refunds to you within 30 days.

At what rate? Average prime rates.

Kudos to IRAS.