Is the ruling govt at a loss of ideas about how to grow the economy that it has since decided to (irresponsibly) use headline grabbing corporate tax rates towards grabbing foreign investments?

Quote:

Originally Posted by workingtoohard Re: Singapore Tax loopholes (income, GST) that open the Pandora's box of human evil Quote: Company convicted for abuse of tax exemption scheme for Singapore start ups (July 15,2010) According to the Inland Revenue Authority of Singapore’s website, Alphalog set up Vida Enterprise Pte Ltd (“VEPL”) in May 2004. VEPL had no employees except for the directors of Alphalog. In order to take advantage of the tax exemption scheme for newly set-up companies, Alphalog claimed fictitious expenses amounting to $1.2 million as management fees paid to VEPL when no such services had been performed by VEPL. VEPL reported the management fees in its returns and paid a lower amount of tax under the tax exemption scheme while Alphalog under-reported its profits by $1.2 million in its income tax returns for the Years of Assessment 2008 and 2009. In doing this, both companies had lowered their overall tax liabilities and abused the tax exemption scheme. Alphalog was fined S$14,000 and Mr. Foo Tiew Heng was jailed for two weeks. is it a loophole when those found guilty of this are being prosecuted?

Oki, granted there are some prosecutions, which
1) shows the liability for such harebrained govt policies to tempt susceptible individuals.
2) My Mr X would get away with his 6 corporate identities scheme I believe. This is because he has legitimately provided his services through each company (genuine consultancy services have been rendered) unlike in your example where by "Alphalog claimed fictitious expenses amounting to $1.2 million as management fees paid to VEPL when no such services had been performed by VEPL."
3) Why create stop gap, band aid economic policies that are so liable to abuse and harder to police?
4) Is the ruling govt at a loss of ideas about how to grow the economy that it has decided to (irresponsibly) use headline grabbing corporate tax rates towards grabbing foreign investments? Hoping to entrap its victims in the red tape of fine print?

Perhaps as a 'businessman', the Government isn't very honest, but a sly and scheming one indeed.

Reference(s):
- 'Countries with the Biggest Gaps Between Rich and Poor', (by Bruce Einhorn): "No. 2 Singapore-.. Ratio of income or expenditure, share of top 10% to lowest 10%: 17.7". [BW,16Oct2009]

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21Feb2011: Singapore Tax loopholes (income, GST) that open the Pandora's box of human evil