Deduction of Interest and Other Borrowing Costs in Singapore: A Review of the Principles Set Out in Three Recent Court of Appeal Decisions

Abstract

The decisions of the Singapore Court of Appeal in three recent cases have cleared up much of the uncertainty surrounding the interpretation of the law applicable to the income tax deduction of interest and other borrowing costs in Singapore. The purpose of this article is to review the principles underlying the deduction of such costs following from these cases and the issues previously in dispute that have since been resolved.