Better measures needed to plug tax leakages

The growth of the freelancing industry and gig economy, in which temporary positions are common and organisations contract with independent workers for short-term engagements, means that taxable income cannot be reliably accounted for.

The sharing industry has also spawned local enterprises, not to mention international ones, that earn fees on the Internet.

This has resulted in tax leakages.

A proposal to impose goods and services tax on Internet purchases would be a step in the right direction to plug the burgeoning tax leakage (GST, personal income or corporate tax hike next?; March 1).

Big data and data analytics can also be employed to assess the local revenue that a service or product provider has received and enable the authorities to collect the taxes due.

Budget balancing is not just about raising rates and taxes.

Plugging tax leakage is also an important piece of aggregation.

Christopher Tang

A version of this article appeared in the print edition of The Straits Times on March 03, 2017, with the headline 'Better measures needed to plug tax leakages'. Print Edition | Subscribe