This article looks at the question of trading in the Singapore and Malaysian contexts. The focus is on transactions in real property. It seeks to establish that, contrary to what has been argued, an isolated transaction in real property can amount to the carrying on of a trade or business under the Singapore Income Tax Act. Reference is made to relevant Malaysian cases on the matter. The article further examines the factors which the Singapore and Malaysian courts (including the Income Tax Board of Review and Special Commissioners, as the case may be) take into consideration in determining whether a trade/business has been carried on. A proper assessment of these factors is most crucial so as to steer clear of the pitfalls of trading.
