Comptroller of Income Tax v BKW: Exchange of Information under Singapore-India DTA
The Comptroller of Income Tax applied for an order to compel BKW to release information related to R Ltd's bank account to Indian tax authorities, pursuant to the Singapore-India Double Taxation Avoidance Agreement. R Ltd applied to set aside the order, arguing that the conditions under s 105J(3) of the Income Tax Act were not met. The High Court dismissed R Ltd's application, finding that the information was foreseeably relevant to Indian tax investigations and that the order was not contrary to public interest.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application dismissed
1.3 Case Type
Tax
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Application to set aside order to release information to Indian tax authorities was dismissed. The court found the information foreseeably relevant and not against public interest.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Comptroller of Income Tax | Applicant | Government Agency | Application granted | Won | Patrick Nai, Jimmy Goh, Michelle Chee |
| BKW | Respondent | Other | Order to release information | Neutral | |
| R Ltd | Respondent, Applicant | Corporation | Application dismissed | Lost | Jonathan Lee, Renganathan Nandakumar, Noelle Seet, Guo Longjin |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Ang | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Patrick Nai | Inland Revenue Authority of Singapore (Law Division) |
| Jimmy Goh | Inland Revenue Authority of Singapore (Law Division) |
| Michelle Chee | Inland Revenue Authority of Singapore (Law Division) |
| Jonathan Lee | Rajah & Tann LLP |
| Renganathan Nandakumar | RHTLaw Taylor Wessing LLP |
| Noelle Seet | RHTLaw Taylor Wessing LLP |
| Guo Longjin | RHTLaw Taylor Wessing LLP |
4. Facts
- The Comptroller sought an order for BKW to release information about R Ltd's bank account.
- The request was made following a request from Indian tax authorities investigating an Indian company, S.
- A paper was found in S's safe with details of R Ltd's bank account.
- The Indian tax authorities suspected hidden transactions between S and an unknown party in India.
- R Ltd argued the information was confidential and amounted to trade secrets.
- The court found a connection between the tax investigations on S and the Bank Account.
- The court found the information foreseeably relevant to the administration or enforcement of Indian tax law.
5. Formal Citations
- Comptroller of Income Tax v BKW and another, Originating Summons No 204 of 2013 (Summons No 1499 of 2013), [2013] SGHC 205
6. Timeline
| Date | Event |
|---|---|
| Singapore-India Double Taxation Avoidance Agreement entered into force | |
| Second Protocol amending Art 28 of the Singapore-India DTA came into force | |
| Competent Authority of India sent letter requesting information | |
| Comptroller of Income Tax filed OS 204 | |
| Order granted in terms of the Comptroller’s application in OS 204 | |
| Judgment reserved after hearing parties’ arguments in SUM 1499 | |
| R Ltd’s application to set aside the Order dismissed | |
| Decision Date |
7. Legal Issues
- Exchange of Information
- Outcome: The court held that the conditions in s 105J(3) of the Income Tax Act were satisfied, justifying the order for disclosure.
- Category: Substantive
- Related Cases:
- [2013] SGHC 173
- Public Interest
- Outcome: The court held that the making of the order was not contrary to public interest.
- Category: Substantive
- Related Cases:
- [2013] SGHC 173
- Business Secrets
- Outcome: The court held that the information relating to R Ltd’s customers was not akin to the character or nature of patent applications or secret trade formulae and did not fall within the narrow scope of Business Secrets protected from disclosure under Art 28(3)(c) of the Singapore-India DTA.
- Category: Substantive
- Related Cases:
- [2013] SGHC 173
8. Remedies Sought
- Discharge of Order
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Tax Litigation
- International Tax
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Comptroller of Income Tax v BJY | High Court | Yes | [2013] SGHC 173 | Singapore | Cited for the procedural framework for Exchange of Information requests and the interpretation of 'Business Secrets' and 'public interest' under s 105J of the Income Tax Act. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Income Tax Act (Cap 134, 2008 Rev Ed) | Singapore |
| s 105J of the Income Tax Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Exchange of Information
- Double Taxation Avoidance Agreement
- Foreseeable Relevance
- Public Interest
- Business Secrets
- Income Tax Act
- Competent Authority
- Bank Records
15.2 Keywords
- tax
- exchange of information
- Singapore
- India
- double taxation
16. Subjects
- Taxation
- International Law
- Civil Procedure
17. Areas of Law
- Tax Law
- International Tax Law
- Exchange of Information
- Civil Procedure