AYN Corporation v The Comptroller of Income Tax [2012] SGITBR 1

Article 7 of the OECD Model Tax Convention (treating a branch as a separate and distinct entity) is not concerned with how the second Contracting State deals with the profits so determined, such as by allowing past losses to be used to set off against the profits of the PE. That is the purview of section 37(3)(a) of the ITA. Accordingly, the Board of Review held that the unabsorbed losses of the Appellant (old branch) are available for set-off under section 37(3)(a) of the ITA against its (new branch) profits.