Re: 'Tax loopholes in SG that allow the cunning to CHEAT on personal income taxes.'
This is not a loop hole but a policy decision. Anyone can make use of this known feature of our tax code.
I believe there are more who use shell company to fund lifestyle than those who use shell company to pay them dividend...
This isn't the first time the concept of a corporation (aka 'company') has been manipulated by dishonourable folk to the detriment of sociaty, see: Walkovszky v. Carlton: "Walkovszky v. Carlton, 223 N.E.2d 6 (NY 1966), is a leading decision on the conditions under which Courts may pierce the corporate veil. A cab company had shielded themselves from liability by incorporating each cab as its own corporation. The New York Court of Appeals refused to pierce the veil on account of undercapitalization alone".
- By listing each taxi as a corporation and the taxi owner a only/ main share holder of 10 such corporations, Mr Carlton tried to evade personal liability claiming 'share holder immunity'- an the US judge seems to have upheld Mr Carlton's devious scheme as righteous entrepreneurial activity, with sad implications for society.
Based on the Singapore government's preferential tax treatment of corporations over real human individuals, I think that the SG government by pushing the envelope of economic gain is threading the slippery slope of harm to society at large.
20Feb2011: Rich in Singapore run circles around personal income (and GST) taxation loopholes.