Singapore cannot avoid the adverse consequences of a global minimum tax rate: The example of Australia's College Of Law's Singapore HQ a useful case study

 by Ganesh Sahathevan 

LKY School Of Public Policy 's Global-is-Asian newsletter has  published an article about the proposals for a global minimum tax rate which includes  the following commentary: 

Professor  Ludger Schuknecht, Visiting Professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore. "believes Singapore is not likely to be too heavily affected by such a move because it already has many other advantages working in its favour, including its stability, well-functioning infrastructure and a strategic location. It may also benefit by attracting companies that want to leave tax havens."

Responses like the above appear to be the usual response from commentators at large when asked about the consequences of the proposed rules. They  seem  however oblivious to the fact that tax planning has everything to do with enhancing cashflow. "Stability, well-functioning infrastructure and a strategic location", good governance and all those other things do of course matter, but that is available in any number of jurisdictions. It for that reason that countries like Singapore offer tax incentives. 

This fact can be illustrated by the example of Australia's College Of Law Ltd, which has incorporated a subsidiary in Singapore, COL SIN Pty Ltd,  but has no staff and not even a serviced-office presence (like it once had in Malaysia).  The College is likely to be of many that  have similar entities incorporated , but with no real presence within the jurisdiction. 

Nevertheless, catering to the demand for tax privileged entities is big business, and the loss of that business will hurt Singapore. Importantly entities such as these need to operate bank accounts in Singapore. 

TO BE READ WITH 

Sunday, June 13, 2021

Taxpayer financed College Of Law Australia's Singapore HQ- Why would the Australian community approve of this tax preferred subsidiary, NSW Law Soc must explain why manoeuvre does not breach community standards

 by Ganesh Sahathevan 

The Australian Government has joined G7 members in demanding a global minimum tax rate. The ABC quoting Treasurer Josh Frydenberg reported:


"Australia welcomes the commitment from G7 nations to agree a globally consistent approach to the tax challenges posed by the digitalisation of the economy.

"Australia will remain an active and constructive participant in these OECD-led discussions as we have done so throughout."

While much has been said about the tax avoidance practises of tech giants and other multinationals, little has been said about smaller entities that  indulge in the same practises. Tax revenue lost as a result of the  actions of these entities collectively  may well equal if not exceed that which is lost to tech giants and multinationals , given their numbers.

Among them is the College Of Law Australia, which as reported here, is an Australian not for profit, effectively financed by the Australian taxpayer, which seems to have chosen to take advantage of Singapore's regional HQ incentives. These incentives include tax breaks.

The College prides itself for its efforts in defending Australian community standards. How its Singapore manoeuvre is in accordance  with Australian community standards is hard to see. While it operates as a separate legal entity the NSW Law Society  "effectively can have the final say in most of (the College's)  major decisions".  It is therefore for the  NSW Law Society to explain how it's College's conduct upholds community expectation with regards the use of taxpayer money, and the obligation to pay taxes. 

Community standards also demand that the NSW Law Society provide  an explanation of the College's conduct in Malaysia. 

TO BE READ WITH 

Monday, July 13, 2020

Australia's College Of Law takes advantage of Singapore's regional HQ incentives: A first for an Australian not for profit ;meanwhile details about the incorporation of its College Of Law Asia remains elusive

by Ganesh Sahathevan


The chart below(click to enlarge) was sighted on the College Of Law webpage at this link.https://www.collaw.edu.au/-/media/col/au_files/downloads-and-forms/about/corporate-governance/college-of-law-corporate-and-academic-committee-structure-as-june-2019.pdf

           

The webpage was found when looking for an interesting new entity, 

COL SIN PRIVATE LIMITED.

A company search reveals that Col Sin Pty Ltd has listed its activities as "head and regional head offices, centralised and administrative offices.....".

It's directors are Neville Carter, CEO of the College Of Law, Joseph Catanzariti, its chairman, and Angie  Louise  Zandistra, who seems to have taken over the duties of Peter Tritt, Director College Of Law Asia (otherwise known as the College Of Law Asia Pacific). 

Col Sin has a paid-up capital of One Singapore Dollar.  The Singapore Government offers companies that locate their headquarters and regional headquarters in Singapore concessional tax rates. Why the College Of Law, which is a not for profit registered with Australian Charities And Not For Profit Commission (ACNC). 

TO BE READ WITH 

Tuesday, July 7, 2020

In search of the College Of Law Asia : College Of Law's Asian expansion still raising questions which Australia's legal establishment refuses to answer

by Ganesh Sahathevan

Australia's College Of Law, which is part of the NSW legal establishment conducts a number of postgraduate "applied law" courses. Among them is a Mergers & Acquisitions offering. Prospective students are enticed by statements such as this, contained in a course brochure (click to enlarge): 

The College Of  Law Asia seems an elusive creature. It first popped up in Malaysia, but then disappeared. Neither the College not the NSW Legal Profession Admission Board which regulates the College's activities have had anything to say about these issues (and others) reported in Malaysia:

Key person suddenly retired during extensive query

The College of Law used to be represented in Malaysia by its Director, Peter Tritt. Tritt have been queried extensively about the LLM and about the College’s business in Malaysia but has refused to provide answers. Tritt has been based in Kuala Lumpur since 2017 but announced on Friday that he had “retired” from the College on 30 June 2019.

It is understood that Tritt has forwarded queries sent him to his head office in Sydney and hence it appears that Tritt is under orders from his Chief Executive, Neville Carter, to remain silent.

Questionable advertising claims?

In advertising on the College’s website Carter has claimed that he had established a Professional Legal Training course for Malaysian Law students seeking admission to practise in Malaysia. There seems to be no evidence of such a course, or of any national level training course for the existing Certificate of Legal Practise.

Carter has also claimed to have produced the “inaugural” Handbook in Legal Practise for Malaysia, in the late 80s. A search of the main law libraries in Malaysia directed by the Chief Registrar, Federal Court Malaysia, has not found any such handbook.

He has also claimed to have, during that time to have identified and addressed “gaps” in Malaysian legal practise, but not even those in practice during that period and since have ever heard of him. Nor are senior practitioners aware of  “gaps” that needed that to be addressed by external consultants.

As CEO of the College Carter  has ultimate responsibility for the College’s Malaysian operation headed by Tritt and variously named the “College Of Law Asia Pacific” and the “College Of Law Asia”. A search by NMT has not revealed any entities registered under those names in Malaysia or in Australia, not even a foreign entities registered to conduct business in Malaysia.

Meanwhile the College, in collaboration with the Bar Council continues to sell its LLM and other courses in Malaysia, deriving a fee income from Malaysian courses.

TO BE READ WITH


Sunday, June 21, 2020

Singapore Law Society maintains silence on MOU with Australia's College Of Law,and has removed a website about which it was queried.: SLS seems to be following the lead of Bar Council Malaysia in re College Of Law

by Ganesh Sahathevan

                     College Of Law CEO Neville Carter & SLS President Gregory
                         Vijayndran SC

As previously reported, the Singapore Law Society's confidence in its practical legal training partner, the College Of Law Australia, is not shared by participants in the Australia's market for legal education. 

The SLS's Dephine Tan has since been further questioned about an upcoming "master-class" that is to be offered by the College of Law and SLS, and presented by Raphael Tay of Malaysia, who is described as Program Director, LLM ASEAN+6 at The College of Law Asia 
Readers will note that they are reading a cached copy of the SLS website on which the "master-class" was advertised. The actual website https://www.lawsociety.org.sg/wp-content/uploads/2020/06/Brochure_eMasterclass-MnA-Webinar-PORTAL-1.pdf
seems to have been removed since questions were put last Thursday to Ms Tan and the SLS. 
It does look as the SLS is following in the footsteps of the Bar Council Malaysia, in not wanting to answer questions, and in removing websites related to work with the College Of Law.
The experience of the Bar Council Malaysia were also put to the SLS,and have also been met with stony silence.