Lawyer RAJAN CHETTIAR outlines Singapore’s stance on child custody issues.

In Singapore, child custody laws are twofold. Joint custody ensures both parents raise the child and make joint decisions on matters such as education and medical treatment. Care and control awards care and control to one parent, while the other parent retains visitation rights.    

          Singapore’s Family Court tends to award care and control to the mother. While this isn’t automatic, it is a reflection of the importance society places on the mother’s role – regardless of whether she is working or a homemaker. If your child is more than 14 years of age and sufficiently mature, he or she can decide which parent they wish to live with. The Family Court Judge will then meet with your child privately, to ensure they are aware of the consequences of their decision.

            Fathers often wish to gain custody, but it’s usually an uphill battle – particularly if the mother doesn’t consent. Even a “hands-on” father isn’t automatically entitled to gain care and control. In fact, past precedents have shown a mother can even gain care and control in the following circumstances:

• Left her children and then returned.
• Caused a marriage breakdown, or inflicted violence on her husband.
• Committed adultery, or demonstrated bad vices.
• Unreasonable behaviour as a wife.

One way fathers can gain care and control is to prove their ex-wife is physically or mentally unfit, or has neglected or abused the child, though it may be difficult to gain sufficient evidence to demonstrate this. If you’ve played a significant role in caring for your child – either on your own or with help from family – you can seek a “split care and control” order, which means your child will split his or her time between both parents’ households, however, unless the children do not attend formal school, the Court usually won’t agree to this. Also, the Court does not favour splitting siblings up – as children of divorce find it easier to adjust if they have each other for support.

            The Court will consider all evidence and legal arguments before making a judgment in the "best interests of the child", which will outline the following access rights for the non-custodial parent:

• Daytime and some weekday evenings.
• Overnight weekends twice a month.
• School and Christmas/Easter holidays.
• Child or parent’s birthday.
• Overseas travel.

Rajan Chettiar
Commissioner for Oaths, Mediator LLB (Honours), Barrister-at-law (Middle Temple), UK

Australian property tax and expatriate tax expert STEVE DOUGLAS explains the tax implications of using an Aussie loan for overseas property investment.

Q. I’m buying a house in London using a loan from Australia, can I claim the interest against my Australian tax?

A. The Australian property market has fared better than most markets through the global financial crisis and lending has remained accessible. This, coupled with a strong Australian dollar, has encouraged many to use their equity in Australia to finance a property purchase outside of Australia – either as a residence or investment. There are no restrictions in doing so, as long as you’re able to prove to the bank you’re financially competent and can afford the additional borrowing.

          From an Australian tax perspective, the interest on the new loan is not tax deductible – as long as you’re living abroad. This is regardless of whether you reside in the property or rent it out. However, when you return to Australia this situation may change, since as a resident you will be taxed on your worldwide income and capital gains. When something is taxable in Australia, all costs incurred in making that income is tax deductable. So, if you used the loan to purchase an overseas property and rented it out upon your return to Australia, the loan now becomes fully deductable against your overseas rental income. This makes a big difference to your tax position and your debt reduction strategy.

          During your time abroad, you should consider how long you intend to hold on to the property and if you’re still interested in keeping it upon your return to Australia. Keeping the debt at the highest level is the prudent course of action if you intend to rent it out once you return – maximising the loan value and tax effectiveness. If you decide to sell the property prior to, or upon, returning to Australia, consider debt reduction – especially if it’s your place of residence. In this way you’ll minimise holding costs and avoid building up additional equity.

          Your biggest challenge is deciding which option is best, as your circumstances may suddenly change. Usually, it’s wise to maintain a low or no debt reduction option – until the time comes to relocate to Australia. Then, you can weigh up the best choice, given the prevailing conditions at that point. If you do decide to keep the property indefinitely upon your return – which is often the case – borrowing will be the smartest move, to help keep your Australian taxation to a minimum.

Australian property tax and expatriate tax expert STEVE DOUGLAS explains the benefit and tax implications of using a buyer’s agent.

Q. I’ve just purchased a property in Australia using a buyer’s agent. Is their fee tax deductable?

A. Buyer’s agents are often qualified real estate agents, who’ve moved away from “selling” property and choose to work independently, representing buyers seeking particular properties or those with specific requirements.

          Having someone on the ground who’s connected to the industry is beneficial if you live overseas, are unfamiliar with an area, or don’t have the time required to view and “hunt” for properties in person. Buyer’s agents charge approximately two percent of the final purchase price. And most are aware they need to justify their fee – so they tend to negotiate aggressively, to acquire the property at a price lower than you would be able to, covering the cost of their service.

          From a tax perspective a buyer’s agent fee is treated the same way as other acquisition costs, including stamp duty and legal fees, so can’t be claimed against your income tax. But if you bought your property in Canberra and rented it out as a leasehold title, purchase costs – including a buyer’s agent fee – can be claimed against any rental income. 
          For all other states, a buyer’s agent fee is a full capital cost. Any tax benefit won’t be against your income tax, it will be against future Capital Gains Tax (CGT) – upon the eventual sale of the property. All purchase and sale costs are taken off the sale price to establish a Net Capital Gain, which is the only portion subject to tax. This CGT offset may not be as attractive as a direct income tax deduction, but it does offer you some tax benefit. However, if you don’t intend to sell the property in the foreseeable future, this benefit may be a long way off from being recognised.
          Don’t forget, if you’ve acquired this property as your intended family home upon your return to Australia, the cost may not have any tax benefit – as the property may not even be subject to Capital Gains Tax under the primary residence exemptions. As such, when using a buyer’s agent the primary issue is value for service. Ensure your agent understands and fulfils your requirements and is capable of finding the right property for you and negotiating on your behalf. They should be able to achieve a better result than you could have done. And in most cases do.

Australian property tax and expatriate tax expert STEVE DOUGLAS gives smart tips for tackling investment property loans.

Q I’m thinking of reducing my loan on an Australian investment property to save on interest. Is this a good idea?

A Reducing your property loan isn’t a bad idea, but it can lead to drawbacks later.

·         In Australia, investment property loans are fully tax-deductible, while loans for land or private property you currently reside in – or intend to in the future – are not. So it would be wiser to reduce the loan relating to the property you intend to live in. Any dollar you pay off an investment property loan is one you may have to borrow back, to pay for your family home.

·         Once you “trap” equity in a particular property you cannot get it back again.

·         A reduction in interest cost results in a dip in tax deductions, which can greatly impact investment performance as well as the tax cost of your property. As someone living abroad, your starting tax rate is 29 percent of your rental profit – since this is high you are able to legally reduce your overall tax rate, by maintaining a sensible debt level.

·         Future tax protection from the accumulation of annual tax losses will be reduced, leading to greater capital gains tax costs or higher taxes on your return to Australia.

          A wise alternative is to consider an Offset Account. Rather than paying off the loan, stream the amount into a separate savings account linked to your loan. Interest is then only charged on the net balance. For example, if your loan is A$300,000 and you’ve deposited A$40,000 in your offset account, you’d only pay interest on A$260,000. Another advantage is if you want your money back at any point, the loan remains intact. So, if you remove funds from the offset account it will increase the net balance, resulting in a higher interest cost – fully-deductible against the rental property the loan was originally used for.

          Offset bank accounts are available at all Australian banks and are a simple and effective way to manage your money during a time of investment uncertainty. You’ll pay reduced interest and have control over your money. If you find an investment opportunity set to outperform your interest savings you can withdraw your funds. If not, leave the money there and enjoy the savings! 
          Use the Property Tax Estimator tool at www.smats.net to quickly assess the merits of reducing your loans by comparing different borrowing levels. You’ll be surprised to learn reducing your loan can in fact be a disadvantage.

Dr Tatiana Luebke of SMILEFOCUS reveals how vitamin deficiencies can affect your smile.

Don’t be surprised if at your next dental visit you’re not just getting advice on good dental hygiene, but also about a healthy diet. This isn’t because your dentist wants to compare recipes, but because good health directly correlates to good dental health.

          The mouth is often the first place to shows signs of vitamin deficiencies. Vitamins function primarily as catalysts for chemical reactions within the body, so a lack of these essential elements can lead to the breakdown of normal body functions, making you more susceptible to disease and other health-related problems. Your dentist can identify oral problems and determine whether a vitamin deficiency is indeed the cause.

          A lack of vitamin B complex can lead to mouth and teeth problems – your tongue swells up and you may experience trouble swallowing. The insides of your cheek may also be affected – tissues look pale, break apart and slough off easily. A deficiency in folic acid – also in the vitamin B group (B9) – results in a burning sensation in the mouth, especially on the tongue. If you have severe B12 and folic acid deficiencies you’ll experience numbness, tingling limbs and gastrointestinal problems. Folic acid is also critical to healthy foetal development during early pregnancy. 

          Meat, milk, nuts and enriched grains are good sources of vitamin B. The body only requires vitamins in very small amounts – only hundredths of a gram in many cases. Try these common vitamin B complex sources:

·         Thiamin (B1) Pork, liver, whole and enriched grains, legumes and nuts.

·         Riboflavin (B2) Milk, milk products, eggs, meats, broccoli, whole and enriched grains.

·         Niacin (B3) Milk, eggs, meat, poultry fish, nuts, whole and enriched grains.

·         Pyroxidine (B6) Meat, poultry, fish, green leafy vegetables, bananas, enriched grains and legumes.

·         Folic acid (B9) also called folate Green leafy vegetables, oranges, legumes, broccoli, asparagus and fortified cereals.

·         Cobalamin (B12) Fish, meat, poultry, milk and milk products, eggs and fortified cereals.

          Insufficient vitamin C can lead to bleeding gums, loose teeth and poor healing. And vitamin D can cause enamel hypoplasia – where teeth have less than the normal amount of enamel, resulting in small dents or grooves on the outer surface of the affected tooth. Not only is the surface of the tooth rough but the defects are often brown or yellow in appearance.
          Discuss your recommended vitamin requirements with your physician or dentist at your next appointment. A balanced diet is the best protection in keeping a strong body and mind – and a healthy smile. 

Dr Tatiana Luebke B.D.S. (Bristol)

Dr Tatiana Luebke qualified from the University of Bristol more than 10 years ago. Having practiced in Brazil, France and now Singapore, Dr Luebke combines Latin flair with a phlegmatic practicality. She focuses on oral implantology, clinical periodontology and restorative dentistry.

AIDAN BAILEY reveals his and market leaders’ insights for the coming year.

In my view, two things are for certain for 2010. Firstly, while the outlook for the world has improved, it won’t be plain sailing for the stock market and global economy.

          The 2009 recovery was government funded, thus is still fragile. Secondly, interest rates are set to rise – great news for savers and most retirees, but not for borrowers. Rising interest rates means the economy is theoretically getting stronger, but if the market deems rate rises to be too much too soon, markets could weaken dramatically. Here’s what financial top guns have to add:

The optimists

·         "Brighter global prospects and the sizeable depreciation we’ve already seen in sterling will yield some benefit to growth in UK exports. We see growth of exports sluggish but positive in 2010, but accelerating quite hearteningly into 2011." Ian McCafferty, CBI Chief Economic Adviser comments on Bloomberg

·         “Debt levels in many emerging economies are low, banks have not been as adversely affected by the credit crunch and consumer spending is not hampered by past debt accumulation. The case for expecting emerging economies to grow more strongly than developed economies has been strengthened.” John Greenwood, Invesco Chief Economist

·         “The current global rally is likely to continue into 2010 with emerging markets leading the economic recovery, whilst the sweet spots of low interest rates and rising profits should continue to drive assets through 2010.” Keith Wade, Chief Economist, Schroders

The pessimists

·         “There is a risk of some substantial falls in asset prices in some markets this year. Since the trough of March 2009, we’ve witnessed huge price rises, often 50 percent or more. As the government takes its foot off the gas in terms of support, we may find the market has gotten a bit ahead of itself and prices may take a tumble as a result. These price changes will likely result in changes to the flow of funds. Investors may take back their cash; move it into cash deposit products, particularly as interest rates are predicted to rise.” KPMG

·         While liquidity levels should continue to offer support into 2010, government stimulus packages will be likely withdrawn, posing a risk for stronger economic growth, company performance and share prices. As consumers and governments continue to pay down excessive debt levels, we believe unemployment will add a further check to consumer spending growth. Although uncertainty on the strength and sustainability of recovery should keep pressure on volatility levels in 2010, we favour a moderate underweight to equities relative to cash, and prefer defensive sectors over more cyclical areas, owing to more favourable valuations.” Simona Paravani, Global Investment Strategist, HSBC Global Asset Management

Aidan Bailey BA (Hons) CertPFS AWP^CM 
General Manager Singapore, International Division

ELISABETTA FRANZOSO explains the connection between wellbeing and your five senses, the third focus of the Wellness Inventory Wheel

Your five senses give you the ability to touch, taste, smell, hear and see. These marvellous instruments are the portals to your inner pharmacy and promote the release of natural chemicals to improve your immunity, relieve anxiety, combat depression, normalise digestive function and manage pain.

Reality Check “What’s that smell? Do you hear that noise? Taste this! Look at me! Feel this, isn’t it soft?” We use these phrases without thinking. But we’re only able to enjoy such sensations because of our senses.

          A vast amount of vital energy is received from our environment and channelled into our being, by the five physical senses. Your ability to work, experience pleasure, communicate with others and even impact the world, is related to your efficient use of such sensory energy.

Insight We’re constantly surrounded by chemical pollutants and loud sounds, consume unhealthy foods in large quantities and overexpose ourselves to sunlight. Without being aware, we abuse our senses with overstimulation.

          We can also withdraw from sensory stimulation. Fear and anxiety can cause us to “freeze up” when being touched. In today’s fast-paced society, a lack of sufficient touch is proving to have far-reaching adverse effects on our emotional development, relationships and health.

Result Sadly, evidence shows many of us have “lost touch with our senses”.

Moving Forward You can only get to know and truly enjoy life through your five senses. Start rediscovering your senses today, become skilled in caring for them and use them creatively!

Q. How can I keep my senses in top condition?

A. Educate yourself. Find ways to appreciate and use your senses creatively. Try your best not to abuse or neglect them.

Q. How can I stimulate my five senses healthily?
A. Balance your senses through both inner and outer experiences using nourishing sounds, sensations, images, tastes and smells. Through this, your inner pharmacy will awaken, keeping you balanced, healthy and happy. Pay attention to your environment. Nourish your body and mind through the exploration of new domains and feed your senses with interesting and inspiring impulses. Observe your environment with fresh eyes. And don’t take your world for granted!

Elisabetta Franzoso BA, Dipl.Psych, MSocSc Author of Stella’s Mum Gets Her Groove Back available at bookstores and www.amazon.com
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Join Elisabetta’s public workshops, Communication in 4Dimensions at Singapore Institute of Management. For further information email info@insideoutyou.com or call 6465 4605.

Elisabetta Franzoso is a highly self-driven coach and motivator who focuses on communication, self-expression and wellbeing. Her passion is to empower people to achieve excellence and transformation from the inside out. To complete your Well-Being Inventory Index and get your detailed personal Health and Wellness Assessment, contact Elisabetta and her team of professional Life Coaches, Psychological Counsellors, Fitness Trainers, Nutritionists, Physicians and Body Therapists.

Since I gave up booze five years ago - save for one glass of red a month - food has become all-important to me. Now when I dine out the menu MUST be good and the offerings divine, otherwise I’m outta there. The only problem is, fine dining often has a negative impact on my bank balance. Which is why I was delighted to hear about Singapore Restaurant Week - March 22 to 28 organised by DiningCity.com, which promises three-course menus at 50 of Singapore’s finest dining establishments, including Garibaldi, Bedrock Bar & Grill and OTTO for just $25 (lunch) and $35 (dinner). Unbeatable! Seats are limited and bookings just opened yesterday and are filling VERY fast, so visit www.restaurantweek.sg to ensure you get a great taste test for less.

Renowned author Mitch Albom - Tuesdays with Morrie, The Five People You Meet in Heaven - is visiting Singapore! Meet him in person and pick up a copy of his latest book Have a Little Faith at 20% off and purchase his other 3 titles for the price of 2!
WHEN: Friday February 26, 1pm-3pm
WHERE: { prologue }, #04-16 ION Orchard

Ever wondered how fashionistas afford their addictions? Check out Reebonz. This members-only shopping site helps designer stores move merchandise at heavily discounted prices - the store doesn’t have to suffer the indignity of a sale and savvy shoppers pick up a bargain on the sly - everyone’s happy. You can even pay your purchase off monthly, on your credit card. On sale today, Kate Spade bags and accessories at up to 50% off, Coach coming up and a festive clearance of Prada, Fendi and Burberry is on its way… sign up for the daily sale alert online at www.reebonz.com

I’ve just returned from a blissful week’s holiday spent on Kata Noi beach in Phuket. We keep going back there because it’s a sure thing. And when all you want to do is flop on the beach with a good book, eat ridiculous amounts of good food and catch up on sleep, a sure thing is better than disappointment.

But what I really love about Phuket is how anything goes. I’m not talking about the sleazy bars in some parts of town - they are definitely best avoided. What I’m referring to is the way everyone on the beach lets it "all hang out" - literally. Thailand is actually a pretty conservative country and its countrymen are known for being shy and gracious. What they must think of the bronzed and sunburnt folks of all shapes and sizes parading around in very brief bits of lycra I have no idea, but somehow visitors continue to get away with it. Must be the tourist dollars…

And while I prefer not to look too closely at my fellow sunbathers in all their glory, what I love about the flesh flashing is how it equalises us. Whether you’re a wealthy industrialist or a globetrotting backpacker, the majority of your "armour" has been reduced to a swimsuit - or lack thereof - revealing you. While some ladies with zero body confidence hid their taut and toned limbs behind neck-to-knee shockers, others with a love handle, roll or dimpled thighs boldy strutted about in a skimpy g-string bikini, oozing a love of life. I saw one lady with severe anorexia timidly stepping over waves breaking on the shoreline and silently cheered when she plunged in to dive beneath one. Then there was the man taking a gazillion shots of his wife striking poses on a rock - I can only hope that at 60+ years my husband will still be as enamoured with me! The only thing letting the scene down was the lone guy - of which I spotted two - in a g-string. I’m all for equality, but there’s something decidedly "ewww" about a single man walking around in a bit of dental floss - particularly when he’s hairy all over, but has taken the time to shave his butt cheeks…. double ewww!

Booked your next break? Check out the NATAS Travel Fair on this weekend from February 26 to 28 and pick up a hot deal…

With Valentine’s Day and Chinese New Year colliding, I’m in a quandry as to what to celebrate first! I’ll be in town over the weekend, but our office is closed for all of next week - yay - so I’m heading off to Phuket for some R&R. Even though my Christmas break ended just one month ago it seems at least three months have whizzed by since then! If you’re staying in Singapore and are stuck for something to do, check out the following - should keep you busy!

Welcome the Year of the Tiger
Click here for details of Lunar New Year celebrations including the Chinatown "light-up", fireworks on February 13, floating lanterns at Marina Bay from February 12 to 20 and the Chingay Parade on February 19 and 20. If you want to know what the Year of the Tiger has in store for you, check out our lunar zodiac predictions here.

Skate on thin ice
Now’s your chance to ice skate in the sun! Stamford American International School (SAIS) has installed a synthetic ice skating rink to offer ice sports prgrammes to its students and has opened the rink up to the general public over the next two weekends. Register for a half-hour slot and get your skates on!
WHEN February 13,14, 20 & 21, 2pm-2:30pm, 2:30pm-3pm, 3pm-3:30pm & 3:30pm-4pm
WHERE 11 Lorong Chuan
HOW $10 per half hour - inclusive of skate rental. Bring your own socks and gloves! Tel: 6602 7247, Email: reception@sais.com.sg

Spanish Film Festival
Take a virtual trip to Spain and attend the Spanish Film Festival, showcasing seven feature-length and three short films in Spanish with English subtitles.
WHEN February 20-25
WHERE The Arts House, 1 Old Parliament Lane
HOW Admission is free! Register via Email: tickets@toph.com.sg and Tel: 6332 6919 for more information.

Gong Xi Fa Cai!