Treaty between Singapore and Japan – Singapore decision: Unutilized losses of de-registered branch allowed for offset against profits of re-registered branch of a foreign company

The Income Tax Board of Review gave its decision recently in the case of AYN v The Comptroller of Income Tax ([2012] SGITBR1) on the availability of unutilized tax losses for offset against the profits of a foreign branch in Singapore. Details of the decision are summarized below.

(a) Facts. In 1992, a Japanese company called AYN Corporation (the Apellant) registered a branch in Singapore (the "old branch") to carry on business there. The old branch was de-registered in 2004…