Yours Toothfully by Dr Chan Joon Yee

And thank goodness it’s going to be my last time. I’m not going to touch on anything “classified” in this blog. That again, will come only after I’m safely out of Singapore. Instead, I would like to take this opportunity to salute (pun intended) all my self-employed NSmen for sacrificing so much for the country all these years.

Self-employed NSmen? Yes, they do exist and in this digital age where a lot of things can only be done online, there is actually an option for self-employed NSmen to make their claims for lost income. They have not forgotten those of us who have secretaries, personal assistants, accountants and sidekicks who can cover our duties when we’re not around. When most directors go on their incamp training, their companies continue to run. They can still communicate via cellular phone (those without cameras of course) when they need to make an important decision. What’s a couple of weeks to them? It’s almost like an overseas trip.

However, they seem to have forgotten another group of people – the sole proprietors who are virtually one-man companies. These folks face a dilemma when they go online to make their claims. Here are their options:

1. Income Tax Option
This is based on the Trade Income shown on the Notice of Assessment for the year of the ICT. The NSman choosing this option will make his claim based on the previous year’s assessment . Payment is made based on the previous year’s income. When the NA for that year is received, any over or under payment will be settled either by MINDEF or the NSman.
2. Average Income Option
You calculate your average NET income over the last 6 months prior to ICT. You need to submit profit and loss statements. It’s almost like getting ready to submit your income tax already.
3. Replacement Income Option
For doctors and drivers etc, they can claim for fees paid to engage a locum or replacement driver.

Everything sounds fair except for the NET income thing. Why? Let’s have a look at a simple case monthly collection, expenses and net income.

Average monthly collection: $30,000
Average monthly expenses: $20,000
Average monthly net income: $10,000

What happens if the above NSman goes for a 1 month ICT? He’ll get paid a net income of $10,000. Even a kid can tell you that it won’t cover the $20,000 expenses. In fact, the NSman is not only inconvenienced by being away from his work, he actually has to fork out $10,000 to pay for the expenses for the month.

Some time ago, I decided to test the system by opting for the average income. It wasn’t difficult calculating my average gross “income” for the last 6 months. I just totalled up everything I collected and submitted. The reply was expected. I had to show them my expenses and they would deduct my expenses and give me my NET income. But net income only makes sense if I’m able to generate a gross “income”. If not, paying me my average “net income” for the previous 6 months will not cover my losses if my expenses were higher than my net income as in the case above. Except that it took up more time and gave me more work, opting for the 6 months’ average income didn’t help me get a fair compensation for lost income.

Like me, other small business owners have struggled with that department. Arguing with them have been proven futile. Fortunately, most of us just kept quiet and their silence has made me feel rather ashamed at myself for my unwillingness to make the sacrifice for the country. Who asked me to be a self-employed guy with citizen liabilities? Why should I envy dependent pass holders who can operate sole proprietorships in Singapore without citizenship liabilities?

We Singaporeans get a few hundred bucks from the government every now and then. Everyone can just be an obedient salaryman and life could be so much simpler. No net income worries. No putting money into your Medisave account out of your own pocket. When you go for ICT, there’s always an unhappy colleague to cover for you. It’s amazing that some commanders have called upon our NSmen to regard their ICT as a holiday. I guess it’s the majority who are civil servants and obedient salarymen whom they were addressing.

I’ve always seen Singapore as a paradise for the obedient salaryman. Yet, our retention rate for expats’ children is the lowest in the world. Maybe it hasn’t dawned on those scratching their heads that not everyone wants to be an obedient salaryman. Many would leave their beloved Singapore to lead a more meaningful life.