JUL 2022.PNG

Contents

  1. Regulatory update on tax treatment of Non-Fungible Tokens (NFTs)
     

  2. The Charity Essentials in Singapore
     

  3. The right of oppressed minority shareholders to a buy-out order when the financial condition of the company has been obscured by the minority's oppressors
     

  4. Rules of Court 2021: scope and application, and the endorsement, service, validity, and extension of the originating claim
     

  5. Omnibus Bill/Act
     

  6. CNP Update on licensable cybersecurity services ("LCS")

 

Regulatory update on tax treatment of Non-Fungible Tokens (NFTs)

In our earlier CNPupdate article published on 27 September 2018, we discussed the tax implications in relation to Initial Coin Offerings ("ICOs"). Subsequently, we published a two-part series providing an update on the then latest tax guidelines issued by the Inland Revenue Authority of Singapore ("IRAS"), viz. the e-Tax Guide on the Goods and Services Tax treatment of digital Payment Tokens published 19 November 2019 (the "GST Guide") and the e-tax guide in relation to the income tax treatment of digital tokens published on 17 April 2020 (the "e-Tax Guide"). Due to recent developments regarding the e-Tax guides, in this article, we will discuss the tax treatment of Non-Fungible Tokens ("NFTs").


The Charity Essentials in Singapore

Due to the increase in economic influence and the growing wealth in Singapore, corporate and personal philanthropy has expanded, gained prominence and increasing traction in recent years. For example, in 2021, the digital giving platform Giving.sg received a record S$95.5 million in donations - the largest sum collected since it was started in 2010. The S$95.5 million represents a 2% increase from 2020 and amounts to more than double the $35.8 million collected in pre-pandemic 2019.

The right of oppressed minority shareholders to a buy-out order when the financial condition of the company has been obscured by the minority's oppressors

Wei Fengpin v Raymond Low Tuck Loong & 2 Ors [2022] SGCA 32 ("Wei Fengpin") was an appeal by a minority shareholder to the Court of Appeal. The minority shareholder successfully established that he was oppressed by the defendants at trial. However, for various reasons, the High Court did not order the oppressors to buy out the oppressed minority's shares. This part of the High Court's decision was overturned on appeal.

The Court of Appeal clarified that buy-out orders ought to be made in favour of oppressed minority shareholders even where the financial condition of the company has been obscured by the oppressing majority. This article highlights some key takeaways from Wei Fengpin.

Rules of Court 2021: scope and application, and the endorsement, service, validity, and extension of the originating claim

The Rules of Court 2021 ("New Rules of Court") replace the Rules of Court 2014 ("Revoked Rules of Court") with effect from 1 April 2022. This article provides a general comparative overview of the provisions relating to originating claims, which replaces the writ of summons under the Revoked Rules of Court.

Omnibus Bill/Act

This is an update to our previous article [https://www.cnplaw.com/mas-consultation-paper-on-a-new-omnibus-act-for-the-financial-sector-cnpupdate-sept2020]. On 5 April 2022, The Financial Services and Markets Bill 2022 (the "FSM Bill") that consolidates and broadens the regulatory powers of the Monetary Authority of Singapore (MAS) was passed in Parliament. The passing into law of the FSM Bill is aligned with the approach of the MAS in having legal and regulatory oversight of the current financial services and industry landscape that is continually moving towards the inexorable digitalisation of financial services, especially with the growing prevalence of digital token (including cryptocurrencies and other digital payment tokens) and other digital asset services. The FSM Bill seeks to enhance the current regulatory regime associated with financial services by pushing for a financial-sector wide regulation and greater exercise of control over financial services and markets, as well over financial institutions and their related entities. This is predominantly achieved by the consolidations of several separate pieces of legislation (from the Banking Act 1970, Financial Advisers Act 2001, Insurance Act 1996 and Securities and Futures Act 2001) into one piece of legislation of the various powers of the MAS. The FSM Bill also specifically regulates digital token service providers for money laundering and terrorist financing risks by covering digital token service providers outside of Singapore, so long as their businesses are created in or operate from Singapore.

CNP Update on licensable cybersecurity services ("LCS")

On 11 April 2022, The Cyber Security Agency of Singapore announced the launch of a licensing framework for providers of the following cybersecurity services ("LCS"):
 

  1. managed security operations centre monitoring service; and
     

  2. penetration testing service.