Wednesday, 17 August 2016

Gold, Silver, Bronze and Taxes

On 13 August 2016, 21-year-old Joseph Isaac Schooling, a third-generation Singaporean, made history by winning Singapore's very first Olympic gold medal in the men’s 100m butterfly event.

For his historic victory, Joseph will be rewarded with a prize money of S$1m.

The Multi-Million Dollar Award Programme (MAP), administered by the Singapore National Olympic Council, provides a cash payout to athletes who win medals at the Olympic, Asian, Commonwealth and South East Asian Games.

The largest gold medal award is S$1m, payable to the athlete who claims an individual gold medal at the Olympic Games. Under the MAP, it is mandatory for all athletes to plough back 20% of their awards for the Olympic Games to their National Sports Association, for future training and development. All awards are taxable.

Thursday, 11 August 2016

Taxing of digital businesses

In the recently concluded National Tax Conference (NTC) 2016, the subject of taxing of online or digital businesses was among the topics highlighted and given emphasis. In the keynote address at the NTC 2016, the Second Finance Minister said that the Government had formed a team to study the development of taxing on the digital economy.

With more businesses going digital, there is a need to look into the tax framework to address the taxing of online business as a new source of revenue and to create a level playing field between online and non-online business. It is understood that the Inland Revenue Board (IRB) is monitoring the development of digital business and studying these business activities to have them under the tax net.

Monday, 8 August 2016

Guide on GST compliant accounting software finally gets a revision

When implementing GST, the accounting software you use can really be the determinant as to how smooth the process will be. And where Malaysia is concerned, right now, it has to be flexible enough to be able to adapt to ever changing circumstances.

Prior to GST being effective, the Royal Malaysian Customs Department (RMCD) had issued Guide to Enhance Your Accounting Software to be GST Compliant.  Let's face it though, there were still a lot of gray areas that weren't addressed and as such, companies had to make some tough calls more often than not, praying they would not come afoul of RMCD's interpretation of the law.

On the 20th of July 2016, the RMCD finally issued a revised edition, almost two years after the original came out. This was quickly followed by another revision on the 1st of August 2016. Let's take a quick look at some of the changes.

Wednesday, 3 August 2016

More hope for retrenched professionals, managers and executives (PMEs)

The Career Activation Programme, a community based peer-to-peer programme which was initiated by NTUC's PME division and social enterprise GioCareers will be enhanced to provide more comprehensive assistance for the laid-off PMEs aged 40 and above as they face the most difficulty in finding jobs. The Ministry of Manpower’s Labour Market Report revealed that PMEs constituted 65% of the overall redundancies in the first quarter of 2016.

Since the launch of the programme in July 2015, it has reached out to 98 mature PMEs over 10 sessions and managed to help 22 mature PMEs return to the workforce with a team of 30 career activists.

Monday, 1 August 2016

Revenue Recognition - Preparing for IFRS 15

Less than one and a half years from today, on 1 January 2018, the new IFRS 15 Revenue from Contracts with Customers will come into effect in both Malaysia and Singapore as MFRS 15 and FRS 115 respectively. It may seem quite far away, yet the stark reality is that all companies will need to begin implementation work now.  By starting early, companies will have a higher chance of avoiding costly errors and delays caused by haphazard last-minute implementation.

For most entities, IFRS 15 will impact the measurement, recognition and disclosure of revenue — one of the most important financial performance indicators used by investors and analysts. It is imperative that an entity can transition successfully and as smoothly as possible to the new standard. Early communication to stakeholders and advanced planning will be critical to avoid uncertainty.

Wednesday, 27 July 2016

Predictive Intelligence - A New Era

In today's business environment of intense competition, every professional accounting firm is always angling for an advantage over rival firms. If you're one of the top personnel of such a firm, that means you're always on the lookout for new business opportunities.

For every external event that pops up, whether it's new tax legislation, new guidelines on financial reporting standards, the results of a court case, or new listed company requirements, you'll want to see how you can make use of these events to find opportunities to serve both existing and potential clients.

Such a process could take ages, because, let's face it, every customer is different. You'd have to go through your client database to determine whether any of them are impacted from these latest developments and decide how best you can help your client. It's a time-consuming task.

Wouldn't it be great if there was a way that you could simplify that decision-making? Where you could have a system that could match those events to the customers impacted from the events and help narrow down those options?