How to Avoid, How to Settle

1. Dispute Resolution How to Avoid, How to Settle www.taxand.com

2. Speakers • Mukesh Butani – Taxand India • Michael Palumbo – Baker Hughes • Eugene Gay – GlaxoSmithKline • AmitBhalla– Schneider Electric • Leon Kwong Wing – Taxand Singapore

3. Contents

4. Appeals Mechanisms: Are They Working? • Alternate mechanisms for dispute resolution; availability of both domestic and international framework? • Timing issues in resolving disputes • Learnings from experiences in Asia-Pacific – India, Indonesia, Vietnam, Cambodia

5. How To Prepare If You Are Caught In A Dispute • Evaluation of forms of dispute resolution mechanisms available • Preparing for uncertainty and tax dispute life cycle • Experience in different countries: India, Indonesia, China, Vietnam, Philippines, Singapore • Other out of box thoughts

6. When A Settlement Is The Best Option • Depends on company risk appetite and tax department leadership • Evaluation of impact of settlement • May be considered where certainty and timing is important • Experiences in some Asia Pac countries

7. Tactics For Jurisdictions Where Litigation Is Most Likely

8. Lessons From Key Cases • Singapore’s First Section 33 Case • Vodafone case

9. Singapore GAAR • CEC v Comptroller • UOL Development (Novena) Pte Ltd v Commissioner • AQQ v Comptroller

10. Shareholder’s credit for tax at source on dividends $20 credit for TDS Company Shareholder $80 money Profit $100 Dividend $100 (Finance) ($100) Net Nil Tax Nil Refund $20

11. The factual scenario MY SG NewCo MY SG SG SG

12. Circular flow of loan money MU bank MY $225m convertible note SG bank SG NewCo $225m money MY SG SG SG

13. Circular flow of interest >99% of interest MU bank MY <1% of interest SG bank Interest SG NewCo MY SG SG Interest-free SG

14. Thank you

15. Our Global Service Commitment • About Taxand • Understanding and managing the tax consequences of cross-border tax transactions • Considering organisational (re)structuring options in full awareness of the tax implications • Realising tax, supply chain and overall operational efficiencies • Interpreting technical tax provisions • Lowering effective tax rates • Addressing and preventing tax leakages • Ensuring tax compliance • Managing relationships with tax authorities

16. Global Coverage

17. Why Taxand? • Dedicated to tax • Independence advantage – conflict free, un-bureaucratic, best practice • Local knowledge, global view • Partner led from start to finish • Complex problems, customised advice • Passionate about working together Practical advice, responsively delivered

18. Presenter Profile E. T. mukesh.butani@bmradvisors.com +91 124 339 5010 Mukesh Butani is a member of the Taxand board which comprises nine Taxand country Managing Partners from around the world, and Chairman of BMR Advisors, Taxand India. Specialising in international tax and transfer pricing, Mukesh has more than 25 years of experience in advising Fortune 500 multinationals and Indian business houses on a range of matters spanning cross-border tax structuring, tax controversy and tax policy structuring. In addition to his advisory role, Mukesh has represented clients in tax disputes, tax advocacy, policy and planning. A former national tax Director and international tax Partner at Arthur Andersen and Ernst & Young, Mukesh serves as Vice Chairman of the Commission on Taxation, International Chamber of Commerce (ICC). Mukesh is a qualified Chartered Accountant and is enrolled as an Advocate with the Bar Council of India. Mukesh Butani Taxand India

19. Presenter Profile E. T. michael.palumbo@bakerhughes.com +65 9780 1615 Michael joined Baker Hughes in 2000 and has responsibility for Baker Hughes’ tax affairs in Asia encompassing 20 countries, leading and managing the Asia Pacific Tax Team located in 6 countries, and he is based in Singapore. Prior to coming to Asia 9 years ago, Michael had responsibility for Baker Hughes’ tax affairs in the Middle East and was based in London, United Kingdom. Michael has nearly 20 years of various accounting and tax experience with different companies in various industries. A native of Chicago, Illinois, Michael has lived and worked internationally for over 14 years and has been to over 70 countries on 6 different continents and managed tax issues in over 40 countries. His favorite saying is: “Oil and gas take you to places which are not in the tour guides”. Michael earned a Master of Science in Taxation Degree and a Bachelor of Science in Commerce Degree, with a Major in Accounting, from DePaul University in Chicago and he is a Certified Public Accountant in the State of Illinois and a member of both the American Institute of Certified Public Accountants and Tax Executives Institute (Asia Chapter). Michael Palumbo Asia Pacific Tax Director, Baker Hughes

20. Presenter Profile E. T. eugene.c.gay@gsk.com +65 6232 8338 [ ] Eugene Gay GSK

21. Presenter Profile E. T. amit.bhalla@schneider-electric.com +65 6480 2049 Amit Bhalla is the Vice President Tax & Customs APAC for Schneider Electric based in Singapore.    In his role, he is responsible for the tax & customs affairs for the region, which includes Greater China, Japan, India, Australia, New Zealand and South East Asia region.Amit began his tax career in India with the accounting firm Arthur Andersen in 1994 and was in tax consulting for more than 8 years.  Thereafter, he moved into industry specialising in the technology sector.  He worked for Huawei Technologies, Cisco Systems and more recently Nortel Networks.  During his career, he has worked and lived in India, China, UK and Singapore.Amit is a fellow member of the Institute of Chartered Accountants of India and a graduate from SRCC, University of Delhi. Amit Bhalla VP Tax & Customs APAC Schneider Electric

22. Presenter Profile E. T. leonkwongwing@khattarwong.com +65 6238 3018 Kwong Wing Leon is based in Taxand Singapore where he is a Partner and the Head of Tax at KhattarWong. He is also a barrister (Gray’s Inn), an advocate and solicitor (Singapore), and a registered trust and estate practitioner (TEP). Kwong Wing has been with Singapore’s Taxand practice, KhattarWong, for his entire career. Kwong Wing advises on income tax, property tax, goods and services tax and stamp duty in Singapore. He also defends taxpayers in audit and investigation cases, pursues objections against Revenue assessments and valuations, and acts as counsel in hearings at Review Boards and in the Courts. He is the Revenue law lecturer at the Singapore Bar course, and editor of Halsbury's Laws of Singapore: Revenue and Taxation published by LexisNexis. Leon Kwong Wing Taxand Singapore

23. Key Contacts • Leon Kwong Wing • Taxand Singapore • E. leonkwongwing@khattarwong.com • T. +65 6238 3018 • Mukesh Butani • Taxand India • E. mukesh.butani@bmrlegal.in • T. +91 124 339 5010 • Eugene Gay • GlaxoSmithKline • E. eugene.c.gay@gsk.com • T. +65 6232 8338 • Michael Palumbo • Baker Hughes • E. michael.palumbo@bakerhughes.com • T. +65 9780 1615 • Amit Bhalla • Schneider-Electric • E. Amit.bhalla@schneider-electric.com • T. +65 6480 2049