The Inland Revenue Authority of Singapore (“IRAS”) had classed the $4.6M gain made by Mr. Thangavelu’s clients as profit subject to corporate tax. Although an appeal to IRAS failed, Mr. Thangavelu brought the matter to the Income Tax Board of Review.

The Income Tax Board of Review disagreed with IRAS on the classification and agreed with Mr. Thangavelu that the profit was capital in nature and not subject to any tax.