tax

dentist

Court dismisses dentist’s appeal over tax on earnings, Singapore News & Top Stories

The High Court has dismissed a dentist’s appeal that he should be charged the corporate tax rate for earnings paid to a company he created, finding his main goal in setting it up was to avoid tax.

Justice Choo Han Teck ruled in the first such case to go on appeal to the High Court that Dr Wee Teng Yau’s move would enable him to pay less tax on the same services he provided.

This is because his fees paid into the company would be its income and taxed at the lower corporate tax rate. But if the fees had been paid directly to him, the personal income tax rate – which is higher – would be levied.

Justice Choo’s ruling pivots on a provision in the Income Tax Act, according to judgment grounds released earlier this month.

The provision at issue is Section 33 of the Act.

The tax authorities said last week that Section 33 has been applied to more than 100 medical professionals.

Referring to the section, Justice Choo said it is meant to cover arrangements created by the taxpayer to reduce the taxes which he would otherwise have to pay.

The judge found in this case “the facts show (its) main, if not only, purpose was to enable Dr Wee to avoid tax. This is precisely the type of arrangement that is covered by Section 33(1)”.

The case is the first to be heard before the court as previous such appeals were not pursued beyond the Income Tax Board of Review.

Dr Wee was employed by dental clinic Alfred Cheng Orthodontic Clinic (ACOC) from January 2011 to May 2012.

He set up Straighten (SPL) in May 2012, and was its sole director and shareholder. He continued to provide the same dental services to ACOC’s patients, but ACOC made the payments to SPL instead of to him, the court noted.

SPL, in turn, paid him a salary and director’s fee. Tax-exempt dividends were also declared and paid to him from SPL’s profits.

For assessment year 2012, ACOC paid Dr Wee $279,194.60 in fees.

Between assessment years 2013 and 2016, the fees ACOC paid SPL and reported as SPL’s income totalled $1,470,764.

SPL paid $336,000 in director’s remuneration to Dr Wee who also received tax-exempt dividends totalling $765,205 as a shareholder.

Each year, the remuneration he received from SPL ranged between $40,000 and $110,000. This is significantly lower than the $279,194.60 he got as income in 2011 from ACOC, the court noted.

The Comptroller of Income Tax treated the fees SPL received from ACOC as Dr Wee’s income and imposed the personal income tax rate instead of the corporate tax rate as sought by Dr Wee.

The Income Tax Board of Review affirmed the Comptroller’s position and Dr Wee appealed further.

In the High Court, the Comptroller’s counsel Zheng Sicong and Serene Lau relied on Section 33(1) as the ground for the levy.

But Dr Wee’s lawyer Lau Kah Hee argued, among other things, that Dr Wee would

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dentist

N.J. dentist admits he failed to report more than $114K on tax returns

A dentist from Sussex County faces three years in prison and fines for failing to report more than $114,500 in proceeds from his practice, authorities said.

Richard Golembioski, 61, of Vernon, pleaded guilty on Wednesday in U.S. District Court in Newark to one count of making and subscribing to a false tax return, according to Michael Montanez, special agent in charge with the Internal Revenue Service.

Golembioski was a licensed dentist practicing in Vernon. He admitted filing a fraudulent tax return for the 2012 tax year. He also failed to report income from his practice on his 2013-2016 tax returns, Montanez said.

Sentencing is scheduled for March 8. Golembioski faces three years in prison and $250,000 in fines, Montanez said.

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Anthony G. Attrino may be reached at [email protected] Follow him on Twitter @TonyAttrino. Find NJ.com on Facebook.

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health

HCDE lowers tax rate, continues services to CyFair ISD

For the sixth consecutive year, the Harris County Department of Education board of trustees voted unanimously to lower the tax rate.

“During these unprecedented times, I think it is important for residents of Harris County to know that we are in this together,” said HCDE Board President Eric Dick in a press release. “Many businesses are struggling due to the coronavirus pandemic. Harris County Department of Education is going to tighten its belt and lead fellow school districts by example.”

Board member Mike Wolfe was not present for the first in-person meeting held on Sept. 17.


The county-wide education agency launched a “Because We Care” initiative distributing hand sanitizer, masks, and food supplies to residents. Dick also said they reinvested in teachers and their staff by increasing the minimum wage to $13.50. Their plan is to raise that to $15 in 2021.

“We’re also using record low bond rates to reinvest approximately $50 million in adult education,” Dick said, “including music therapy and additional services.”

Some of those services may feel the pinch of local districts budget cuts next year when fallout from the coronavirus expenditures are realized. No school districts have announced any cuts for the next school year, but HCDE staff is prepared to meet the challenge should it occur.

“I’m a little bit worried about school districts budgets next year,” said Carie Crabb, senior director of school-based therapy services for HCDE.

“We’ve lived through budget crunches and crises before. It happens pretty regularly in education. We’ll figure it out,” she said.

That meant picking up additional tasks and hours to meet the needs which lasted for a couple of years until things were back on track again.

“We’re pretty lean as we are, but if we have to reduce the number of therapists, we look at our processes and how we can make things more efficient to get the same amount of work done with fewer people,” she said.

While those services are subsidized by HCDE, they come at a rate much cheaper than what districts would pay for it in the market.

Currently Cypress Fairbanks ISD is the largest district with the most HCDE therapists at work for the district.

Crabb said they’ve been serving CFISD continuously with no break in service since 1978.

“Our business model is pretty efficient. I serve as the director and I have nine managers and we oversee more than 150 therapists who serve 33 school districts,” she said.

The management team stays on top of the best practices for their profession and any changes in the law which occur almost annually.

“If districts were left to do it on their own, it would take considerably more personnel. Our districts count on us to do this,” Crabb said.

Therapists are trained in the medical environment to work in hospitals and clinics. In a school district, the difference is enormous between an educational and medical model.

Therapists became necessary with the passage of the 1975 Education for All Handicapped Children Act.

“With

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