My friend runs an insurance agency. He has received incentive payments from insurance companies for the past years. Recently, he was told that the incentive payments attract GST. He has to collect GST from the insurance companies, and pay the GST to IRAS. Because of the unclarity of GST for such payments, he did not collect the GST in the past. To comply with the a recent circular, he has to collect the GST for the past years from the insurance companies. y. He was also levied a fine for failing to obey the GST law.
It will take him some time to collect the GST from the insurance companies - but he paid the GST first to IRAS. After making the pyment, the insurance company can recover the GST back from IRAS. the government. Yes - it is an exercise of futility. It is troublesome and unnecessary work that add to the cost of doing business in Singapore. Many businesses have experienced high operating cost and can only survive by over-charging consumers. It has became a vicious circle.
My friend has approached a senior IRAS officer on this matter to explain that this is an exercise in futility. But the senior officer refuse to make an exception and insisted on following the book. This is quite common in Singapore.
Tan Kin Lian
Monday, March 21, 2011
FISCA - Consumer Guide to Insurance
This talk on insurance is organised by FISCA for members and the public. It shows how to select the right insurance policies and make big savings on the insurance premiums. My new book "Get Value on your Life Insurance" will be available for sale to the participants at a special price of $6 (usual $12).
Register for the talk now. It is scheduled for 26 March from 2 to 5 pm at SMU. Register at www.fisca.sg/events under the title "Insuring your Financial Future" or "Consumer Guide to Insurance".
Register for the talk now. It is scheduled for 26 March from 2 to 5 pm at SMU. Register at www.fisca.sg/events under the title "Insuring your Financial Future" or "Consumer Guide to Insurance".
Financial Savvy Test #2
Take a test of your financial knowledge by answering the questions below. You can find the answer from
www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. If you have to find a lawyer and wish to keep the cost low, what is a way to achieve this? Keyword: lawyer
2. what is the approach towards “self insurance” as an alternative to paying premium for insurance protections? Keyword: self insurance
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