OUT of some S$8.2 million that Cache Logistics Trust received in an earlier dispute resolution, about S$7.4 million qualifies for tax transparency with the rest being subject to tax, the real estate investment trust manager announced on Wednesday night.
The income qualifying for tax transparency, which Cache referred to as the rental shortfall amount, is attributable to the rental period from Sept 1, 2016 to Aug 31, 2021. About S$2.9 million of the amount, attributable to the rental period from Sept 1, 2016 to March 31, 2019 and net of relevant expenses, will be distributed to unitholders together with the Q2 2019 distributions, Cache said.
"It should be noted that the S$2.9 million amount is an estimate and may be subject to adjustments," it added. The company also said that the balance, net of relevant expenses, will be distributed over the remaining rental period from Apr 1, 2019 to Aug 31, 2021. The property in question, 51 Alps Avenue, was the subject of a dispute between the Reit and Schenker Singapore that was resolved amicably in October 2017. Cache said on Wednesday that it had received confirmation from the Inland Revenue Authority of Singapore regarding the amount that qualifies for tax transparency.