Singapore legislation
Regulation 83
Regulation 83
Bad debt relief
Subregulation 1
Subject to these Regulations, a claimant shall be entitled, on making a claim to the Comptroller, to a refund of the amount of tax chargeable by reference to the outstanding amount where —
the claimant has supplied goods or services for a consideration in money and has accounted for and paid tax on the supply;
the whole or any part of the consideration for the supply has been written off in his accounts as a bad debt;
a period of 12 months beginning with the date of supply has elapsed or the debtor has become insolvent before the period of 12 months has elapsed; and
the Comptroller is satisfied that all reasonable efforts have been taken by the person to recover the debt.
Subregulation 1A
Where the claimant is a registered (Seventh Schedule — pay only) person, the person —
is not entitled to a refund of the amount of tax chargeable by reference to the outstanding amount (except as allowed under paragraph (1B)); but(b)is entitled to a reduction of the output tax due from him for the prescribed accounting period for which the claim is made, of that amount of tax chargeable.
Subregulation 1B
Where the amount of tax chargeable mentioned in paragraph (1A) exceeds the output tax for the prescribed accounting period for which the claim for reduction is made, any amount of the difference —
may be used to reduce the output tax due from the person in any subsequent prescribed accounting period; or
if the Comptroller allows, may be refunded by the Comptroller to the person (after deducting from the refund any expenses that the Comptroller may incur in making the refund).
Subregulation 2
A person shall not be entitled to a refund or reduction under paragraph (1) or (1A) unless —
the value of the supply is equal to or less than its open market value;
in the case of a supply of goods, the property in the goods has passed to the person to whom they were supplied or to a person deriving title from, through or under that person; and
the claim was made within the relevant period.
Subregulation 3
For the purposes of paragraph (1), the debtor shall be treated as insolvent if the claimant is able to show to the satisfaction of the Comptroller that —
in the case where the debtor is an individual, he is adjudged bankrupt, a deed of arrangement is made for the benefit of his creditors or a composition or scheme of arrangement proposed by him is accepted under section 357 of the Insolvency, Restructuring and Dissolution Act 2018;
in the case where the debtor is a company, it is ordered by the court —
to be wound up because it is unable to pay its debts within the meaning of the Companies Act 1967; or
to be placed under the judicial management of a judicial manager; or
in the case where the debtor is a company, a receiver is appointed and the statement of affairs lodged with the Registrar of Companies shows that its assets would be insufficient to cover the payment of any dividend in respect of debts which are neither secured nor preferential.
Subregulation 4
In this regulation, “relevant period” means —
where the prescribed accounting period during which the supply referred to in paragraph (1) was made ends before 1st January 2007, a period of 7 years commencing on the day the supply was made or such longer period as the Comptroller may have allowed; or
where the prescribed accounting period during which the supply referred to in paragraph (1) was made ends on or after 1 January 2007, a period of 5 years commencing on —
the day the supply was made; and
where section 92 or 92A of the Act applies to the supply, the transitional date for the supply,or such longer period as the Comptroller may have allowed.