Capital Match and taxes

[CarlJung]

I got the tax assessment YA2021 from Capital Match where they say:

"according to our knowledge if you are a tax resident in Singapore for tax assessment you should report gross interest income earned (point (1) above) less commission"

I don't even know who to ask here? Capital Match is not a tax advisor and won't say more that this, IRAS also won't give a straight answer.
I am a PR full-time employee with no other source of income a part from some ETF and stocks. Do I need to declare this money? We are talking of ~2k, not millions but still, I don't want to evade taxes, just I don't know who to ask..

Thanks

 

[bobobob]

You should ask iras

 

[lzydata]

Usually capital gains and dividends from Singapore companies are not taxable.

 

[bright_84]

It's taxable.

 

[CarlJung]

Indeed. I finally managed to speak with someone in IRAS that confirmed it's taxable.
I am surprised the topic is little discussed here. I am the only one using Capital Match? Why is not more popular? Does it have some downside I missed?

 

[BBCWatcher]

I am the only one using Capital Match?

Presumably not.

Why is not more popular? Does it have some downside I missed?

You’re effectively buying among the junkiest of junk bonds(*) and via a barely regulated intermediary to boot. Most people don’t like this particular risk-reward formula.

(*) It looks to me like Capital Match is currently charging in excess of 15% interest on 12 month business loans. “Junkiest of junk” is obviously fair. Hyflux borrowed at a “mere” 6.0% in a higher market interest rate environment, and that was via a perpetual debt instrument — also a junk bond.

 

[reddevil0728]

Indeed. I finally managed to speak with someone in IRAS that confirmed it's taxable.
I am surprised the topic is little discussed here. I am the only one using Capital Match? Why is not more popular? Does it have some downside I missed?

Can share more what is it about?

 

[ashethen]

HAHA
buy junk bonds still need to pay income tax


Posted from PCWX using SM-N960F

 

[reddevil0728]

HAHA
buy junk bonds still need to pay income tax


Posted from PCWX using SM-N960F

As long as earn money is still money.

 

[BBCWatcher]

Can share more what is it about?

Capital Match is one of seemingly countless "peer to peer" lending facilitators. For example, a small business that wants to borrow S$X for 6 months can go to the platform, make an application, and see if enough lenders are interested (who can pool their capital, and the platform facilitates the matches). These platforms typically focus on what's politely called "subprime" lending. If you go to Capital Match's Web site right now they're advertising 15.x% p.a. interest rates on 12 month business loans. Who borrows at north of 15% in the current market interest rate environment with bank personal loans costing 6.X% p.a? Bad risks, that's who, so a lot of these borrowers are expected to default and do. Of course the platform doesn't eat default losses; it collects its fees regardless.

Any questions?

 

[bright_84]

Capital Match is one of seemingly countless "peer to peer" lending facilitators. For example, a small business that wants to borrow S$X for 6 months can go to the platform, make an application, and see if enough lenders are interested (who can pool their capital, and the platform facilitates the matches). These platforms typically focus on what's politely called "subprime" lending. If you go to Capital Match's Web site right now they're advertising 15.x% p.a. interest rates on 12 month business loans. Who borrows at north of 15% in the current market interest rate environment with bank personal loans costing 6.X% p.a? Bad risks, that's who, so a lot of these borrowers are expected to default and do. Of course the platform doesn't eat default losses; it collects its fees regardless.

Any questions?

All we need to do now is to package the subprime loans with bbb and aaa loans, then we can consider it 'diversified low risk' and sell it as erm... a 'consolidated debt obligations'?

 

[CarlJung]

Talking about taxes, what about cryptocurrencies? If I gain 1k SGD trading crypto do I have to declare to IRAS?

 

[reddevil0728]

Talking about taxes, what about cryptocurrencies? If I gain 1k SGD trading crypto do I have to declare to IRAS?

If you trade forex and make money, need to declare?

 

[ashethen]

Talking about taxes, what about cryptocurrencies? If I gain 1k SGD trading crypto do I have to declare to IRAS?

Yeah need to declare. Thanks for contributing to our nation

Posted from PCWX using SM-N960F

 

[bright_84]

Yeah need to declare. Thanks for contributing to our nation

Posted from PCWX using SM-N960F

LOL this is not edmw

 

[shgual4tsuj]

Looking for (ex-)users of CapitalMatch

In case you're a (ex-)user of CapitalMatch you might be aware that there are significant number of (seriously) delayed facilities on the platform, in particular Keppel, Sanmina, Flextronics and Toyobo, totaling SGD 10+M (!!) of outstanding principal and much more counting (late) interest. Some of these have been outstanding for several years...

According to CM, in all of these cases there was fraud from one or multiple parties (buyer, seller, both). One could however wonder what procedures were put in place by CM to avoid such fraud from occurring in the first place.

In the meantime the founder/CEO has been fired and CM has been taken over by a larger company (SESAMi (Holding) Pte. Ltd.).

I would like to speak with other (ex-)users who have lost money because of CM's attitude to risk assessment, communication and recovery. Drop me a personal message if you're in that situation!

 

[shgual4tsuj]

I would like to speak with other (ex-)users who have lost money because of CM's attitude to risk assessment, communication and recovery. Drop me a personal message if you're in that situation!

Hi guys, thank you for all your PMs. Unfortunately the forum doesn't allow me to respond to the messages. I have asked support to look into it.

But in short, I would like to investigate if investors affected by the fraud cases (Keppel, Sanmina, Flextronics and Toyobo) have any recourse against CapitalMatch. In particular, did CM do proper due diligence on notified facilities? Did CM inform investors in a timely manner (they surely didn't!). Are CM's debt recovery procedures adequate? Did CM provide accurate default/delayed statistics to incoming investors (no, they didn't and still don't)?

To be clear: I'm not looking into 'normal' defaults, which are business as usual and should be expected when signing up to the platform.

 

[lzydata]

Added to MAS Investor Alert List.

https://www.mas.gov.sg/investor-alert-list

 

[BBCWatcher]

What a surprise.

 

[shgual4tsuj]

Quick update on the above: CM admitted in the Capital Match vs Sanmina case files that CM regularly used funds from new investors to repay outstanding loans from old investors. New investors were not told about this.

If this immediately makes you think "Ponzi scheme" then you're not alone. I have referred this Commercial Affairs Department (CAD).

If you're affected by these dubious activities, then please reach out and I'll connect you with the investigating officer.