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Showing posts from December, 2015

FIRPTA Update

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Before reading this, please review this previous blog entry - http://www.mooresrowland.tax/2014/10/when-fatca-meets-firpta-some.html



An important tax update was made on December 18th.  President Obama, signed H.R. 2029, the tax (the “Protecting Americans from Tax Hikes Act of 2015”) and spending bills (Consolidated Appropriations Act, 2016) to fund the government for its 2016 fiscal year. The December The Act increases the rate of withholding from dispositions of U.S. real property interests under §1445 from 10% to 15%, but remains at 10% for residences sold for less than $1 million. The withholding exemption where the sale price is under $300,000US and the purchaser will acquire the property as their principal residence is still in effect. The rate increase in the withholding tax rate applicable to sale prices of over $1M should cause those taxpayers with losses or nominal gains to apply for a withholding certificate using IRS Form 8288-B to reduce the withholding to an amount equiva…

Singapore Lawyer Convicted and Jailed for Tax Evasion

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9 Dec 2015
Ong Cheong Wei, 51, a practising lawyer and former sole-proprietor of law firm Ong Cheong Wei & Co ("OCWC"), was sentenced to 4 weeks in jail for wilfully omitting $306,305.00 in his Income Tax Returns for Years of Assessment ("YAs") 2007 and 2008, thereby evading income tax amounting to $39,447.26. He was also ordered to pay a penalty of $118,341.78, three times the amount of tax evaded. 

Failure to keep proper records and declare income based on actual earnings Ong Cheong Wei was the sole-proprietor of OCWC from November 2000 to March 2014. He is currently practising as a sole-proprietor in Ong Cheong Wei Law Chambers. Investigations revealed that Ong Cheong Wei did not prepare or maintain any general ledger or accounts for OCWC. For YAs 2007 and 2008, Ong Cheong Wei filed his tax returns (Form B1) based on an estimation of his income, knowing that the actual amount earned was more than the estimated amount. His estimation was based on the assumpti…