PAP gives US Chip maker USD$822 million tax savings, and than they move out!!

I wonder what is the true numbers over the years for MNCs who come to Singapore, take the tax savings and credits offered by the stupid PAP, and than run road after the tax incentives run out? In this case, the singapore tax payers lost USD$822 million in taxes to the IRAS from this US chip maker. And of all places, they run road to Ireland? What does it say when a western european country like Ireland has a lower cost base than Singapore? Even with no minimum wage, low taxes, etc. we still cannot beat Ireland? WTF? PAP better wake up their fucking ideas. If we have to bribe these companies with almost SGD$1billion to come to set up shop in singapore, than it says something about our business environment. It says that we are not competitive at all. Companies should want to set up shop here and come without any incentives at all. Any govt can bribe MNCs with USD$400 million a tax savings too. We don't need the PAP for that, any oppo party can do it. Fucking EDB is just not doing its job.

US chipmaker moves some operations out of Singapore

Broadcom's shift to Ireland is a blow to already troubled electronics sector

A large American chipmaker has moved some operations out of Singapore to Ireland, which is likely to weigh on the already troubled electronics sector here.

Broadcom, a Fortune 500 company based in California and listed on Nasdaq, said in its latest annual report that after March 31 this year, it would "utilise (its) Irish trading company for certain foreign operations".

The move coincided with the termination of tax incentives that it enjoyed in Singapore, which it said ended in March.

The incentives reduced its Singapore taxes by US$423 million (S$528 million) last year and by US$399 million in 2012.

example har... Hard Disk Drive sector ... all moving north.

We don't know how much the Irish gave them!!

Honestly, without the Tax incentives, they wouldn't have come at all in the first place. Tax breaks is one of the many ways govts around the world attract FDI. The fact that they chose Ireland next is also chasing after tax-savings. Read up on motorola and seagate tax incentives....

garlic said:

Honestly, without the Tax incentives, they wouldn't have come at all in the first place. Tax breaks is one of the many ways govts around the world attract FDI. The fact that they chose Ireland next is also chasing after tax-savings. Read up on motorola and seagate tax incentives....

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Honestly, you have the brain of a flea. Look at all the countries in our region attracting FDI. Malaysia, China, Indonesia, Vietnam, etc. Which of these countries give one single MNC USD$822 million over only 2 years? Pray tell me. Some tax break is acceptable, this amount is obscene. Even if this MNC employed 822 sinkies (very unlikely given how these MNCs like cheap FT labour), that works out to $1 million per sinkie in tax breaks that was given over the 2 years. I think the PAP should just give this money directly to sinkies rather than to this US MNC. Only their shareholders and executives benefit from this as their share price increase and the execs get their bonus money.

U forget too that Ireland actually has a free press and an open govt. If the govt gave USD$822 million over 2 years in free tax breaks for a company to set up shop in Ireland, I guarantee u there will be an uproar in the press, especially if the company moves out after the incentives run out. The govt would be in serious waters at the next elections. Every govt wants the MNC to stay for the long run. In this case, the PAP were simply played out by the company. They had no intentions to stay after the free taxes run out. This has been typical of the PAP for a long time now. Played out by MNCs, by foreign govts, by FTs, etc.

Without the tax incentives, they would never have set up shop in the first place.

While they may not have paid their full complement of taxes, they still had to pay consumption tax, road tax, CPF contributions, utility bills, COE, ERP etc so there is always a net gain.

You should learn to look at the glass as half full rather than as half empty.

Papsmearer said:

Honestly, you have the brain of a flea. Look at all the countries in our region attracting FDI. Malaysia, China, Indonesia, Vietnam, etc. Which of these countries give one single MNC USD$822 million over only 2 years? Pray tell me. Some tax break is acceptable, this amount is obscene. Even if this MNC employed 822 sinkies (very unlikely given how these MNCs like cheap FT labour), that works out to $1 million per sinkie in tax breaks that was given over the 2 years. I think the PAP should just give this money directly to sinkies rather than to this US MNC. Only their shareholders and executives benefit from this as their share price increase and the execs get their bonus money.

U forget too that Ireland actually has a free press and an open govt. If the govt gave USD$822 million over 2 years in free tax breaks for a company to set up shop in Ireland, I guarantee u there will be an uproar in the press, especially if the company moves out after the incentives run out. The govt would be in serious waters at the next elections. Every govt wants the MNC to stay for the long run. In this case, the PAP were simply played out by the company. They had no intentions to stay after the free taxes run out. This has been typical of the PAP for a long time now. Played out by MNCs, by foreign govts, by FTs, etc.

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I think u don't know how this works!! Other countries may not give as much tax incentives, but they may give free land, or water - wafer fabs uses lots and lots of water ...! Up to each MNCs to do their homework and go after the best deals. As they say, 'the world is their marketplace '

what makes you think that it's cost issue...? there must be an agenda, ireland is definitely not cheap, even factories in malaysia are shifting to vietnam and Myanmar.

Not unexpected. This has happened before. There was a large UNISYS factory in Tuas many years ago that move out too. Today, they only maintain a rep office in Peesai. Factories will relocate to wherever it is more profitable for them. Can happen to anyone anywhere in the world.

Cheers!

Papsmearer said:

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US chipmaker moves some operations out of Singapore

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Their tax saving is more than USD822million,

2004 --------- US$147.1 M
2005 --------- US$185.3 M
2006 --------- US$256.0 M
2007 --------- US$239.3 M
2008 --------- US$284.0 M
2009 --------- US$224.8 M
2010 --------- US$330.0 M
2011 --------- US$368.0 M
2012 --------- US$399.0 M
2013 --------- US$423.0 M
-----------------------------------
Grand total:US$2,856.5 million
===================


Form 10 K, year ended 31.12.2003, page F26:-
"The Company operates under a tax holiday in Singapore, which is effective until April 2006 and may be extended if certain additional requirements are satisfied. No net U.S. tax benefit resulted from the tax holiday or the Company’s foreign operations in 2003 or 2002."


Form 10 K, year ended 31.12.2006, page 25:-
"The Company operates under tax holidays in Singapore, which are effective through March 2009 and may be extended if certain additional requirements are satisfied. The tax holidays are conditional upon the Company meeting certain employment and investment thresholds. The impact of the Singapore tax holidays decreased Singapore taxes by $256.0 million, $185.3 million and $147.1 million for 2006, 2005 and 2004, respectively. The benefit of the tax holidays on net income per share (diluted) was $.44, $.33 and $.28 for 2006, 2005 and 2004, respectively."


Form 10k, year ended 31.12.2009, page F27:
"Broadcom operates under tax holidays in Singapore, which are effective through March 2014. The tax holidays are conditional upon our meeting certain employment and investment thresholds. The impact of the Singapore tax holidays decreased Singapore taxes by $224.8 million, $284.0 million and $239.3 million for 2009, 2008 and 2007, respectively. The benefit of the tax holidays on net income per share (diluted) was $0.44, $0.54 and $0.41 for 2009, 2008 and 2007, respectively."


Form 10K, year ended 31.12.2012, F26,:-
"We operate under tax holidays in Singapore, which are effective through March 2014. The tax holidays are conditional upon our meeting certain employment and investment thresholds. We are in discussions with the Singapore Economic Development Board with respect to tax incentives for periods after March 31, 2014. The impact of the Singapore tax holidays decreased Singapore taxes by $399 million, $368 million and $330 million for 2012, 2011 and 2010, respectively. The benefit of the tax holidays on net income per share (diluted) was $0.69, $0.65 and $0.61 for 2012, 2011 and 2010, respectively."


Form-10k, Year ended 31 Dec 2013, page F-25:-
"We operate under tax incentives in Singapore, which are effective through March 2014. The tax incentives are conditional upon our meeting certain employment and investment thresholds. The impact of the Singapore tax incentives decreased Singapore taxes by $423 million, $399 million and $368 million for 2013, 2012 and 2011, respectively. The benefit of the tax incentives on net income per share (diluted) was $0.73, $0.69 and $0.65 for 2013, 2012 and 2011, respectively."

Leongsam said:

Without the tax incentives, they would never have set up shop in the first place.

While they may not have paid their full complement of taxes, they still had to pay consumption tax, road tax, CPF contributions, utility bills, COE, ERP etc so there is always a net gain.

You should learn to look at the glass as half full rather than as half empty.

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Boss boss don't forget the expatriates also spend a lot money on local rentals, shopping, Orchard Towers maybe sometimes Geylang too etc etc

joetys said:

Boss boss don't forget the expatriates also spend a lot money on local rentals, shopping, Orchard Towers maybe sometimes Geylang too etc etc

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That money goes to PRCs. Viets or Pinoys!! A small amount will go to the local economy!!

joetys said:

Boss boss don't forget the expatriates also spend a lot money on local rentals, shopping, Orchard Towers maybe sometimes Geylang too etc etc

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Yes plus all the salaries paid to the staff who then spent their salaries thereby contributing to the economy.

I have many discussions in NZ about the multinationals. The kiwis say that they are evil and exploit their staff. I always tell them that if it were not for the multinationals in Singapore, I would not be retired in NZ today while they still have to work till 65.

Leongsam said:

Without the tax incentives, they would never have set up shop in the first place.

While they may not have paid their full complement of taxes, they still had to pay consumption tax, road tax, CPF contributions, utility bills, COE, ERP etc so there is always a net gain.

You should learn to look at the glass as half full rather than as half empty.

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Lucky, they have an option to Fuck off, majority of Sinkies will rot under this Gahman.

shittypore said:

Lucky, they have an option to Fuck off, majority of Sinkies will rot under this Gahman.

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No sinkies have to rot. There are sinkies from all walks of life who have emigrated.... tradesmen, administrators, hawkers, civil servants, army personnel, nurses, teachers, managers, CEOs. The list is endless.

The Island is not ring fenced with barbed wire and a Berlin wall structure with a kill zone. Anyone with a passport can leave.

Sinkies are not trapped in a country. They are trapped in a mindset.

Delete double post.

enterprise2 said:

We don't know how much the Irish gave them!!

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irish didn't give them. they gave her their shamrock hard irish dicks!

Leongsam said:

Without the tax incentives, they would never have set up shop in the first place.

While they may not have paid their full complement of taxes, they still had to pay consumption tax, road tax, CPF contributions, utility bills, COE, ERP etc so there is always a net gain.

You should learn to look at the glass as half full rather than as half empty.

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100% agree. Is business.
Tax incentive/zero tax not a big deal.
With MNC set up here like seagate/HP. Direct employee under both company is I think more than 20K people in SG.
Indirect like contractor/supplier/service provider another 40K worker. Or even PSA will get into trouble so does the Changi Airport ......business will drop. All are related. Sinkie just don't understand.
Without these 2 company >> 60K will be jobless is 20% is Singaporean that mean 12K will be jobless.
Without conpany tax. Gov still get salary tax/gst/.........................................bill.......

Cestbon said:

100% agree. Is business.
Tax incentive/zero tax not a big deal.
With MNC set up here like seagate/HP. Direct employee under both company is I think more than 20K people in SG.
Indirect like contractor/supplier/service provider another 40K worker. Or even PSA will get into trouble so does the Changi Airport ......business will drop. All are related. Sinkie just don't understand.
Without these 2 company >> 60K will be jobless is 20% is Singaporean that mean 12K will be jobless.
Without conpany tax. Gov still get salary tax/gst/.........................................bill.......

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The correct question is not whether we should give these tax breaks. But whether we r promoting these MNCs over our SMEs. No doubt we r successful in pulling MNCs here but our record on our own SMEs r dismal.

Cestbon said:

100% agree. Is business.
Tax incentive/zero tax not a big deal.
With MNC set up here like seagate/HP. Direct employee under both company is I think more than 20K people in SG.
Indirect like contractor/supplier/service provider another 40K worker. Or even PSA will get into trouble so does the Changi Airport ......business will drop. All are related. Sinkie just don't understand.
Without these 2 company >> 60K will be jobless is 20% is Singaporean that mean 12K will be jobless.
Without conpany tax. Gov still get salary tax/gst/.........................................bill.......

Click to expand...

Pure bullshit. These MNC are under no obligations to hire only sinkies. Kindly walk into any MNC factory or plant in Singapore and see how many people are actually native born. If you can find more than 30%, its damn good already. The PAP is basically using tax payer money to give tax incentives to MNCs to hire people from other countries to work here. How fucking stupid is that? Any money that these MNCs pay for electricity, water, etc goes to the govt or a GLC, once again not directly benefiting any sinkies. Tax incentives have always been going on, and in the earlier post, this company received USD$2.85 billion over 10 years in tax exemption. I am not opposed to giving tax incentives, but only if they hire only sinkies or at least even give sinkies priority in employment. But $2.85 billion is too much. And you can be sure these MNCs do not give sinkies any preference. I can bet you in their Irish factory, you will be hard pressed to find more than 10% FTs working there, as you can be sure that govt will make sure the vast majority of jobs go to Irish people.