DOCSLIB.ORG

The Trials on Labuan

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Trials on Labuan chapter 14 The Trials on Labuan Georgina Fitzpatrick 1 Introduction Labuan, an island off the coast of British North Borneo (BNB), was the loca- tion for 16 of the war crimes trials held between December 1945 and January 1946. These trials occurred at the same time as the trials being conducted on Morotai and at Rabaul (and the two at Wewak). Apart from two cases concern- ing the ill-treatment of prisoners of war held at Kuching camp in Sarawak, the Labuan trials dealt with crimes committed against those held in Sandakan camp, in the north-east of BNB; crimes committed during the forced march- es between Sandakan and Ranau in the last months of the war; or crimes related to the final executions of prisoners of war at Ranau. Approximately 1,650 Australian prisoners died in or around Sandakan. Of the 2,200 British and Australian prisoners of war who were still alive in August 1944, 1,200 died subsequently in the camp and more perished during the death marches. Those who managed to reach Ranau, 260 kilometres to the west, died there or were executed. Only six escaped and survived—all of them Australians.1 These statistics made the grim conditions at Kuching, where 592 British and Australians died, mostly of starvation, pale by comparison.2 This essay will consider the post-war investigations into this loss of life, the allocation of responsibility for war crime trials in BNB, the procedures and personnel at the Australian-run trials and the press reportage of the trials, among other aspects. The first question to ask, however, is why were Allied prisoners of war, the victims in these trials, in Borneo in the first place? Where files have been digitised by the National Archives of Australia, the author has provided the slide reference to assist readers to locate items within large files. 1 The figures are taken from DCS Sissons, The Australian War Crimes Trials and Investiga- tions (1942–51) (UCB War Crimes Study Center, 2006), p. 32 <http://wcsc.berkeley.edu/ world-war-ii-document-archive/pacific-theater-document-archive/> and confirmed by Hank Nelson, POW Prisoners of War: Australians Under Nippon (ABC Enterprises, 2001), pp. 106, 109. 2 Sissons numbers the total held in Kuching at 1,250, of whom 160 were Australian. Sis- sons, The Australian War Crimes Trials, p. 34. Georgina Fitzpatrick, Tim McCormack, and Narrelle Morris, Australia’s War Crimes Trials 1945-51. © 2016 Koninklijke Brill nv. isbn 978-90-04-29204-8. pp. 429-470. 430 14 – Fitzpatrick 2 Borneo, the Japanese and Allied Prisoners of War Before the Japanese wartime occupation, the island of Borneo was divided be- tween the British and Dutch colonial powers. Dutch Borneo, comprising two- thirds of the island, included settlements such as Tarakan and Balikpapan which were noted for their rich oilfields and refineries (and later as the sites of military campaigns in the final months of the war).3 However, the places named in the Labuan trials (as well as Labuan itself) were places lying in the British part of the island to the north. Kuching, for example, one of the loca- tions of a camp for British and Australian prisoners of war, was on the western coast of Sarawak, a British possession that had been governed before the war by the Brooke family, known as the ‘White Rajahs’. Sandakan and the route from there to Ranau lay in British North Borneo, bordering the Sultanate of Brunei, a British protectorate.4 In 1942, the Japanese invaded Borneo in order to secure the extensive oil and rubber resources of the island—the very resources that had underpinned the earlier British and Dutch colonisation. By the end of January 1942, the whole of Borneo was in Japanese hands. The Japanese Oil Corps followed im- mediately behind the invasion force to take over the operation of the oilfields and refineries from the British and Dutch.5 Sandakan, in particular, was of vital strategic importance for the Japanese as it linked the oilfields of Borneo’s east coast to the Philippines and other areas in the region that were occu- pied by Japan. To build an airstrip at Sandakan to serve as a refuelling stop between the Philippines, Singapore, Java, Celebes and Timor, the Japanese re- quired a large labour force. Accordingly, British and Australian prisoners of war, captured at the fall of Singapore, were transferred to Sandakan in several batches to do this work.6 The first group of 1,500 was sent from Changi in July 1942 and included about 140 officers. They were housed in what had been a British agricul- 3 ‘Borneo: A Historical Outline’, Current Notes on International Affairs (Jan 1946) 17(1), pp. 12–13. The 7th Division AIF investigated war crimes in Dutch Borneo but then handed the cases over to the Dutch military authorities in Balikpapan in January 1946. See Michael Carrel, Australia’s Prosecution of Japanese War Criminals: Stimuli and Con- straints (PhD thesis, University of Melbourne, 2005), p. 120. 4 ‘Borneo: A Historical Outline’, Current Notes, pp. 13–15. 5 Yuki Tanaka, Hidden Horrors: Japanese War Crimes in World War II (Westview Press, 1996), p. 12. 6 See Chapter 17, Georgina Fitzpatrick, ‘The Trials in Singapore’ for the role that Changi played in the concentration and despatch of prisoners of war as forced labour units to various parts of the Japanese-occupied areas of south-east Asia and the Pacific..
Load more

Recommended publications
  • RUSI of NSW Article
    Jump TO Article The article on the pages below is reprinted by permission from United Service (the journal of the Royal United Services Institute of New South Wales), which seeks to inform the defence and security debate in Australia and to bring an Australian perspective to that debate internationally. The Royal United Services Institute of New South Wales (RUSI NSW) has been promoting informed debate on defence and security issues since 1888. To receive quarterly copies of United Service and to obtain other significant benefits of RUSI NSW membership, please see our online Membership page: www.rusinsw.org.au/Membership Jump TO Article USI Vol61 No2 Jun10:USI Vol55 No4/2005 21/05/10 1:31 PM Page 24 CONTRIBUTED ESSAY Conflict in command during the Kokoda campaign of 1942: did General Blamey deserve the blame? Rowan Tracey General Sir Thomas Blamey was commander-in-chief of the Australian Military Forces during World War II. Tough and decisive, he did not resile from sacking ineffective senior commanders when the situation demanded. He has been widely criticised by more recent historians for his role in the sackings of Lieutenant-General S. F. Rowell, Major-General A. S. Allen and Brigadier A. W. Potts during the Kokoda Campaign of 1942. Rowan Tracey examines each sacking and concludes that Blameyʼs actions in each case were justified. On 16 September 1950, a small crowd assembled in High Command in Australia in 1942 the sunroom of the west wing of the Repatriation In September 1938, Blamey was appointed General Hospital at Heidelberg in Melbourne. The chairman of the Commonwealth’s Manpower group consisted of official military representatives, Committee and controller-general of recruiting on the wartime associates and personal guests of the central recommendation of Frederick Shedden, secretary of figure, who was wheelchair bound – Thomas Albert the Department of Defence, and with the assent of Blamey.
    [Show full text]
  • Concern of Veterinary Authorities with Respect to Borders Crossing
    Concern of Veterinary Authorities With Respect to Borders Crossing NURUL HUSNA ZULKIFLI DEPARTMENT OF VETERINARY SERVICES MALAYSIA 19 FEBRUARY 2019 DEPARTMENT OF VETERINARY SERVICES MALAYSIA 01 Overview Under the Ministry of Agriculture and Agro-Based Industries (MOA) Malaysia 02 Responsibility Veterinary competent authority of Malaysia 03 Scope Responsible in performing risk analysis as well as development of import requirements and for issuance of veterinary health certificate (as stated under the Provisions of Animals Act 1953, Section 16. DEPARTMENT OF QUARANTINE & INSPECTION SERVICES MALAYSIA (MAQIS) 01 Overview Under the Ministry of Agriculture and Agro-Based Industries (MOA) Malaysia 02 Responsibility One stop centre for quarantine and inspection services 03 Scope Responsible in the enforcement of written laws at entry point, quarantine stations and quarantine premises as well as in the issuance of permits, licenses and certificates of import and export DVS as a competent authority responsible in the approval of animal and animal products movement STATE DVS IN MALAYSIA 1. Perlis 2. Kedah 3. Pulau Pinang 4. Kelantan 5. Terengganu 6. Perak 7. Pahang 8. Selangor 9. Putrajaya (Headquarters) 10. Negeri Sembilan 11. Melaka 12. Johor 13. Labuan MAQIS as main agency responsible in quarantine, inspection and enforcement STATE MAQIS IN MALAYSIA 1. Selangor/Negeri Sembilan 2. Johor/Melaka 3. Pulau Pinang 4. Kedah 5. Kelantan 6. Perlis 7. Perak 8. Labuan 9. Pahang/Terengganu MAQIS Quarantine Station Labuan KLIA • KLIA Quarantine Station • Padang
    [Show full text]
  • M.V. Solita's Passage Notes
    M.V. SOLITA’S PASSAGE NOTES SABAH BORNEO, MALAYSIA Updated August 2014 1 CONTENTS General comments Visas 4 Access to overseas funds 4 Phone and Internet 4 Weather 5 Navigation 5 Geographical Observations 6 Flags 10 Town information Kota Kinabalu 11 Sandakan 22 Tawau 25 Kudat 27 Labuan 31 Sabah Rivers Kinabatangan 34 Klias 37 Tadian 39 Pura Pura 40 Maraup 41 Anchorages 42 2 Sabah is one of the 13 Malaysian states and with Sarawak, lies on the northern side of the island of Borneo, between the Sulu and South China Seas. Sabah and Sarawak cover the northern coast of the island. The lower two‐thirds of Borneo is Kalimantan, which belongs to Indonesia. The area has a fascinating history, and probably because it is on one of the main trade routes through South East Asia, Borneo has had many masters. Sabah and Sarawak were incorporated into the Federation of Malaysia in 1963 and Malaysia is now regarded a safe and orderly Islamic country. Sabah has a diverse ethnic population of just over 3 million people with 32 recognised ethnic groups. The largest of these is the Malays (these include the many different cultural groups that originally existed in their own homeland within Sabah), Chinese and “non‐official immigrants” (mainly Filipino and Indonesian). In recent centuries piracy was common here, but it is now generally considered relatively safe for cruising. However, the nearby islands of Southern Philippines have had some problems with militant fundamentalist Muslim groups – there have been riots and violence on Mindanao and the Tawi Tawi Islands and isolated episodes of kidnapping of people from Sabah in the past 10 years or so.
    [Show full text]
  • East Malaysia Immigration Requirements and Practices
    Insights from Global Mobility Malaysia: East Malaysia immigration requirements and practices January 20, 2017 In brief Immigration laws in Malaysia are governed under the Immigration Act, 1959/63 and apply to both West and East Malaysia that together form the Federation of Malaysia. Nevertheless, to protect the rights and interests of its people, the state governments in the East Malaysian states of Sabah, Sarawak, and the Federal Territory of Labuan retain a relatively higher degree of local government autonomy, resulting in the adoption of different immigration requirements and practices by the immigration authorities. The purpose of this Insight is to highlight current immigration practices in the East Malaysian states and how companies can ensure compliance and avoid unnecessary deployment delays of employees/ assignees to these states. In detail formation of Malaysia as a by the immigration department Background means of ensuring that the of the respective state. In most rights of East Malaysians are cases, an individual must not Malaysian immigration rules protected after the formation of hold more than one Malaysian differ between four territories, Malaysia. work permit issued by any namely West Malaysia, and the territory, at any one time. East Malaysian territories of With the differences in Sabah, Sarawak, and the Federal requirements, a West Malaysian Comparison of requirements Territory of Labuan. The company will need to ensure The requirements imposed by differences in the requirements that its employees, including the respective state in the East Malaysian territories Malaysian employees, who governments in the East are the result of an agreement intend to perform work in the Malaysia states, as compared to between West Malaysia and East Malaysian states, hold West Malaysia, are summarised East Malaysia during the appropriate work permits issued in the following table: www.pwc.com Insights Requirements West Sabah Sarawak Labuan (Federal Malaysia Territory) 1.
    [Show full text]
  • South-West Pacific: Amphibious Operations, 1942–45
    Issue 30, 2021 South-West Pacific: amphibious operations, 1942–45 By Dr. Karl James Dr. James is the Head of Military History, Australian War Memorial. Issue 30, 2021 © Commonwealth of Australia 2021 This work is copyright. You may download, display, print, and reproduce this material in unaltered form only (retaining this notice and imagery metadata) for your personal, non- commercial use, or use within your organisation. This material cannot be used to imply an endorsement from, or an association with, the Department of Defence. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. Issue 30, 2021 On morning of 1 July 1945 hundreds of warships and vessels from the United States Navy, the Royal Australian Navy (RAN), and the Royal Netherlands Navy lay off the coast of Balikpapan, an oil refining centre on Borneo’s south-east coast. An Australian soldier described the scene: Landing craft are in formation and swing towards the shore. The naval gunfire is gaining momentum, the noise from the guns and bombs exploding is terrific … waves of Liberators [heavy bombers] are pounding the area.1 This offensive to land the veteran 7th Australian Infantry Division at Balikpapan was the last of a series amphibious operations conducted by the Allies to liberate areas of Dutch and British territory on Borneo. It was the largest amphibious operation conducted by Australian forces during the Second World War. Within an hour some 16,500 troops were ashore and pushing inland, along with nearly 1,000 vehicles.2 Ultimately more than 33,000 personnel from the 7th Division and Allied forces were landed in the amphibious assault.3 Balikpapan is often cited as an example of the expertise achieved by Australian forces in amphibious operations during the war.4 It was a remarkable development.
    [Show full text]
  • The Final Campaigns: Bougainville 1944-1945
    University of Wollongong Thesis Collections University of Wollongong Thesis Collection University of Wollongong Year The final campaigns: Bougainville 1944-1945 Karl James University of Wollongong James, Karl, The final campaigns: Bougainville 1944-1945, PhD thesis, School of History and Politics, University of Wollongong, 2005. http://ro.uow.edu.au/theses/467 This paper is posted at Research Online. http://ro.uow.edu.au/theses/467 The Final Campaigns: Bougainville 1944-1945 A thesis submitted in fulfilment of the requirements for the award of the degree Doctor of Philosophy from University of Wollongong by Karl James, BA (Hons) School of History and Politics 2005 i CERTIFICATION I, Karl James, declare that this thesis, submitted in partial fulfilment of the requirements for the award of Doctor of Philosophy, in the School of History and Politics, University of Wollongong, is wholly my work unless otherwise referenced or acknowledged. The document has not been submitted for qualifications at any other academic institution. Karl James 20 July 2005 ii Table of Contents Maps, List of Illustrations iv Abbreviations vi Conversion viii Abstract ix Acknowledgments xi Introduction 1 1 ‘We have got to play our part in it’. Australia’s land war until 1944. 15 2 ‘History written is history preserved’. History’s treatment of the Final Campaigns. 30 3 ‘Once the soldier had gone to war he looked for leadership’. The men of the II Australian Corps. 51 4 ‘Away to the north of Queensland, On the tropic shores of hell, Stand grimfaced men who watch and wait, For a future none can tell’. The campaign takes shape: Torokina and the Outer Islands.
    [Show full text]
  • The Battle of Messines
    CHAPTER XV THE BATTLE OF MESSINES-JUNE 7TH BEFOREmost great attacks on the Western Front, during that critical last night in which, generally, the infantry left its billets and made its way, first, in column of fours on dark roads beside moving wheel and motor traffic, then, usually in file, along tracks marked across the open, and finally into communication trenches to wind silently out in the small hours and line the “ jumping-off ” trenches or white tapes laid in the long wet grass of open No-Man’s Land, where for an hour or two it must await the signal to assault-during these critical hours one thought was usually uppermost in the men’s minds: does the enemy know? With the tactics of 1917,involving tremendous preparatory bombardments, which entailed months of preliminary railway and road construction, G.H.Q. had been forced to give up the notion of keeping an attack secret until it was delivered. Enemy airmen could not fail to observe these works and also the new camps, supply centres, casualty clearing stations, hangars for aeroplanes. Reference has been made to the Comniander-in-Chief’s desire to impart the impression, in April, of a serious attack, and,‘in May, of a feint. But the final week’s bombardment had given sure notice of the operation, and the most that could be hoped for was that the enemy might be deceived as to the main stroke that would come after, and might continue to expect it at Arras rather than at Ypres. As far as the Messines offensive went, the Germans must know that a great attack-whether feint or principal operation-was imminent ; indeed, German prisoners spoke with certainty of it.
    [Show full text]
  • A Taxonomic Revision of Macrolenes (Melastomataceae)
    Gardens’ Bulletin Singapore 71 (1): 185–241. 2019 185 doi: 10.26492/gbs71(1).2019-12 A taxonomic revision of Macrolenes (Melastomataceae) A. Kartonegoro1,2, P. Hovenkamp1, P.C. van Welzen1,3 1Naturalis Biodiversity Center, P.O. Box 9517, 2300 RA Leiden, The Netherlands [email protected]. 2Research Center for Biology, Indonesian Institute of Sciences (LIPI), Jl. Jakarta-Bogor KM.46, Cibinong 16911, Indonesia. 3Institute of Biology Leiden (IBL), Leiden University, P.O. Box 9505, 2300 RA Leiden, The Netherlands. ABSTRACT. Macrolenes (Melastomataceae: Dissochaeteae), a genus of woody climbers in Malesia, is taxonomically revised. Seventeen species are recognised, of which three are new to science. The genus is characterised by its scrambling habit, a pair of hair cushion domatia on the base of the leaves, axillary inflorescences, and fimbriate connective appendages on the alternipetalous stamens. An identification key, nomenclature, descriptions, typification, geographic distributions and taxonomic notes are provided. The affinities with Dissochaeta, also woody climbers, are discussed. Keywords. Dissochaeta, Dissochaeteae, Macrolenes, Malesia, Melastomataceae, revision, taxonomy Introduction Macrolenes Naudin is a genus of woody climbers distributed strictly in the Malesian region. The genus is allied to Dissochaeta Blume; both are characterised by a scrambling growth habit, opposite phyllotaxy sometimes with interpetiolar outgrowths, flowers 4-merous, 2 whorls of dimorphic stamens and berry-like fruits. Macrolenes and Dissochaeta are classified in tribe Dissochaeteae (Naudin) Triana (Bakhuizen van den Brink, 1943; Maxwell, 1984; Clausing & Renner, 2001), but are sometimes also considered to be part of tribe Miconieae (Naudin, 1851; Miquel, 1855; Renner, 1993). The last complete revision of Macrolenes was by Bakhuizen van den Brink (1943) and some notes were published by Nayar (1980).
    [Show full text]
  • Electricity & Gas Supply Infrastucture Malaysia
    ELECTRICITY & GAS SUPPLY INFRASTRUCTURE MALAYSIA LSS2 Projects Status (Peninsular Malaysia) (Commercial Operation Date end 2019 - TBC) LSS2 Projects Status (Peninsular Malaysia) (Commercial Operation Date 2020 - TBC) PENINSULAR MALAYSIA No. Solar Power Producer (SPP) Plant Capacity (MW) Plant Location No. Solar Power Producer (SPP) Plant Capacity (MW) Plant Location MAP 2 SABAH & SARAWAK JDA A-18 1. Solution Solar 1 Sdn Bhd 4.00 Port Klang, Selangor 14. Scope Marine Sdn Bhd 5.00 Setiu, Terengganu SESB SJ- Melawa (DG 324MW, GT 20MW) Ranhill Powertron II (GT&ST) 214.8MW LSS1 Projects Status (Sabah) 2. Jentayu Solar Sdn Bhd 5.99 Pokok Sena, Kedah 15. Hong Seng Assembly Sdn Bhd 1.00 Seberang Perai Utara, Pulau Pinang No. Solar Power Producer (SPP) Plant Capacity (MW) Plant Location Karambunai Gayang 3. Solution Solar 2 Sdn Bhd 3.00 Port Klang, Selangor 16. Coral Power Sdn Bhd 9.99 Manjung, Perak Kayumadang Ranhill Powertron I (Teluk Salut) CCGT 208.64MW 1. Sabah Energy Corporation Sdn Bhd 5.00 Wilayah Persekutuan Labuan JDA B-17 4. Fairview Equity Project (Mersing) Sdn Bhd 5.00 Mersing, Johor 17. I2 Solarpark One Sdn Bhd 6.80 Alor Gajah, Melaka Unggun 2. Nusantara Suriamas Sdn Bhd 5.90 Kota Marudu, Sabah Sepanggar Bay (GT&ST) 113.8MW 5. Maju Solar (Gurun) Sdn Bhd 9.90 Kuala Muda, Kedah 18. Viva Solar Sdn Bhd 30.00 Sik, Kedah 3. Beau Energy East Sdn Bhd 6.00 Beaufort, Sabah 6. Asia Meranti Solar (Kamunting) Sdn Bhd 9.90 Kamunting, Perak 19. Cypark Estuary Solar Sdn Bhd 30.00 Empangan Terip, Negeri Sembilan UMS2 7.
    [Show full text]
  • Indirect Tax GST Chat All You Need to Know
    Malaysia | Indirect Tax | November 2016 Indirect Tax GST Chat All you need to know Issue 11.2016 In this issue 1 GST Announcement – Additional requirement on TAP (Taxpayer Access Point) 2 Changes to the Goods and Services Tax Orders & Customs and Excise Duties Orders 3 GST Technical Committee Meeting Update Part 3: Providing clarity or further confusion? 4 Impact of Budget 2017 on Businesses in Free Zones and Bonded Warehouse 5 What GST Adjustments should businesses be aware of? Related links: Other tax information Deloitte Contacts Greetings from the Deloitte Malaysia Indirect Tax Team Hello everyone and welcome to the November edition of GST Chat! The month of October has been an impactful month with the announcement of National Budget 2017 and further amendments to various GST legislations. Also, we caught glimpses of the initial effects of the Customs Blue Ocean Strategy Operation on GST registrants across Malaysia. In this edition of GST Chat, we will be looking at the recent amendments to the GST relief order, zero rated supply order and other changes to the Customs and Excise Duties Orders. This includes changes to the GST treatment on certain supplies in Designated Areas and changes to the import duties and excise duties in Duty Free Islands. Another amendment to take note is in regards to the use of a new prescribed device to capture GST data. The Minister of Finance II, Datuk Johari Abdul Ghani has provided a bit more information and has shared that the device would be able to link the cash register machines of traders to the Royal Malaysian Customs Department (RMCD)’s systems.
    [Show full text]
  • Malaysia, September 2006
    Library of Congress – Federal Research Division Country Profile: Malaysia, September 2006 COUNTRY PROFILE: MALAYSIA September 2006 COUNTRY Formal Name: Malaysia. Short Form: Malaysia. Term for Citizen(s): Malaysian(s). Capital: Since 1999 Putrajaya (25 kilometers south of Kuala Lumpur) Click to Enlarge Image has been the administrative capital and seat of government. Parliament still meets in Kuala Lumpur, but most ministries are located in Putrajaya. Major Cities: Kuala Lumpur is the only city with a population greater than 1 million persons (1,305,792 according to the most recent census in 2000). Other major cities include Johor Bahru (642,944), Ipoh (536,832), and Klang (626,699). Independence: Peninsular Malaysia attained independence as the Federation of Malaya on August 31, 1957. Later, two states on the island of Borneo—Sabah and Sarawak—joined the federation to form Malaysia on September 16, 1963. Public Holidays: Many public holidays are observed only in particular states, and the dates of Hindu and Islamic holidays vary because they are based on lunar calendars. The following holidays are observed nationwide: Hari Raya Haji (Feast of the Sacrifice, movable date); Chinese New Year (movable set of three days in January and February); Muharram (Islamic New Year, movable date); Mouloud (Prophet Muhammad’s Birthday, movable date); Labour Day (May 1); Vesak Day (movable date in May); Official Birthday of His Majesty the Yang di-Pertuan Agong (June 5); National Day (August 31); Deepavali (Diwali, movable set of five days in October and November); Hari Raya Puasa (end of Ramadan, movable date); and Christmas Day (December 25). Flag: Fourteen alternating red and white horizontal stripes of equal width, representing equal membership in the Federation of Malaysia, which is composed of 13 states and the federal government.
    [Show full text]
  • Corporate Migration: Meeting the Need for Substance
    CORPORATE MIGRATION: MEETING THE NEED FOR SUBSTANCE THE AGE OF TAX TRANSPARENCY The full implementation of the Common Reporting Standard (CRS) by Organisation for Economic Co-operation and Development body (OECD) in 2018 is aimed at preventing tax evasion by implementing the process of global automatic exchange of information between CRS-participating jurisdictions. CRS requires financial institutions licensed in a jurisdiction that have signed up to this protocol, to report financial accounts held directly or indirectly by account holders, both individuals and incorporated entities, that are deemed foreign entities in that said jurisdiction. This enhanced level of corporate transparency brings with it a greater focus on the concept of economic substance and the way substance may be created. Thus, being able to create substance is a key element to consider when selecting a jurisdiction to redomicile to. MEETING THE NEED FOR SUBSTANCE Substance is a common tax concept used in assessing cross-border tax situations that calls into question the level of operational activity and decision-making process which is conducted in a particular jurisdiction. In general, a company needs to demonstrate that it has presence via its functional structure such as a physical office, staff administering the day-to-day operations of the company and the necessary operating tools or equipment, in order to evidence substance in that jurisdiction. In addition, domestic management staff should have basic decision-making authority to run the business and key decisions are made by the board of directors while physically present in that said jurisdiction. Without such arrangements, it is possible that tax authorities would conclude that key decisions are made outside the jurisdiction where the company is operating, hence creating a lack of economic substance.
    [Show full text]