Income Tax (Amendment) Bill

Bill No. 1/1983

Read the first time on 4th March 1983.

An Act to amend the Income Tax Act (Chapter 141 of the Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title

1.—(1) This Act may be cited as the Income Tax (Amendment) Act, 1983.

(2) Sections 6 and 7 shall have effect for the year of assessment 1983 and subsequent years of assessment.

Amendment of section 14

2. Section 14 of the Income Tax Act (referred to in this Act as the principal Act) is amended —

(a)

by deleting the word “and” at the end of sub‑paragraph (i)(C) of the proviso to paragraph (e) of subsection (1);

(b)

by deleting sub-paragraph (i)(D) of the proviso to paragraph (e) of subsection (1) and substituting the following sub-paragraphs:

“(D)	commencing on or after 1st July, 1979, and before 1st July, 1982, shall not exceed twenty and a half per cent; and
(E)	commencing on or after 1st July, 1982, shall not exceed twenty-two per cent,”;

(c)

by inserting, immediately after the words “1st day of April, 1979” in subsection (3A), the words “and before the 1st day of April, 1982,”; and

(d)

by inserting, immediately after subsection (3A), the following subsection:

“(3B) For the purpose of application to a motor car acquired on or after 1st April, 1982, the reference to “fifteen thousand dollars” in subsection (3) shall, wherever it occurs, be read as a reference to “thirty-five thousand dollars”.”.

Amendment of section 19

3. Section 19 of the principal Act is amended by deleting the proviso to subsection (2A) and substituting the following proviso:

“Provided that in respect of a motor car acquired —

(i)	on or after 1st April, 1979, and before 1st April, 1982, the reference to “fifteen thousand dollars” in this subsection shall, wherever it occurs, be read as a reference to “twenty-five thousand dollars”; and
(ii)	on or after 1st April, 1982, the reference to “fifteen thousand dollars” in this subsection shall, wherever it occurs, be read as a reference to “thirty-five thousand dollars”.”.

Amendment of section 19A

4. Section 19A of the principal Act is amended —

(a)

by deleting the word “or” at the end of paragraph (d) of subsection (1);

(b)

by deleting the comma at the end of paragraph (e) of subsection (1) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs:

“(f)	he has, for the purposes of energy conservation and of a trade, profession or business carried on by him, installed any approved machinery or plant in replacement of other machinery or plant or installed any specified energy saving equipment; or
(g)	he is carrying on business as a financial institution or a leasing company,”;

(c)

by deleting the word “and” at the end of sub-paragraph (iv) of subsection (1);

(d)

by deleting the full-stop at the end of sub-paragraph (v) of subsection (1) and substituting a semi-colon, and by inserting immediately thereafter the following sub-paragraphs:

“(vi)	on or after 1st January, 1982, on the provision of that approved machinery or plant in replacement of other machinery or plant or of that specified energy saving equipment; and
(vii)	on the provision of machinery or plant by the financial institution or the leasing company if that machinery or plant is let under a finance lease made on or after 1st April, 1982, to a person who would have been entitled to an annual allowance provided by this section had he incurred the capital expenditure on the machinery or plant.”; and

(e)

by deleting the full-stop at the end of paragraph (d) of subsection (4) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs:

“(e)

“approved machinery or plant” means —

(i)	any central air-conditioning equipment;
(ii)	any boiler;
(iii)	any water pumping equipment;
(iv)	any laundry equipment;
(v)	any refrigeration equipment;
(vi)	any lift; and
(vii)	any escalator,

approved by the Minister or such person as he may appoint;

(f)

“specified energy saving equipment” means —

(i)	any solar heating and cooling equipment;
(ii)	any heat recovery equipment;
(iii)	any power factor controller; and
(iv)	any other energy saving equipment or device,

specified by the Minister or such person as he may appoint;

(g)

“financial institution” means any bank or any finance company licensed under the Finance Companies Act (Cap. 191);

(h)

“leasing company” means any company or firm whose business consists wholly of the leasing of machinery or plant.”.

Amendment of section 20

5. Section 20 of the principal Act is amended by deleting paragraph (aa) of subsection (5) and substituting the following paragraph:

“(aa)

a motor car acquired —

(i)	on or after 1st April, 1979, and before 1st April, 1982, paragraph (a) shall apply except that the reference to “15,000” in the formula in that paragraph shall be read as a reference to “25,000”; and
(ii)	on or after 1st April, 1982, paragraph (a) shall apply except that the reference to “15,000” in the formula in that paragraph shall be read as a reference to “35,000”; and”.

Amendment of section 27

6. Section 27 of the principal Act is amended by deleting paragraph (b) of subsection (3) and substituting the following paragraph:

“(b)

be acceptable for the purposes of this section only where the Comptroller is satisfied that the relevant income tax authority —

(i)

computes and assesses the full profits of the non-resident person from his shipping business on a basis not materially different from the basis of assessment provided by this Act for the assessment of a resident of Singapore carrying on a similar business; and

(ii)

accepts any certificate issued by the Comptroller for the purpose of computing the profits derived by a resident of Singapore from carrying on the business of a shipowner or charterer and assesses the income of that resident on the basis of and without making any adjustment to the profits or loss or the allowance for depreciation as stated in the certificate issued by the Comptroller and in the same manner as the income of the non-resident person is assessed under subsection (2);”.

Amendment of section 39

7. Section 39 of the principal Act is amended —

(a)

by deleting sub-paragraph (ii) of the proviso to paragraph (e) of subsection (2) and substituting the following sub-paragraph:

“(ii)

no deduction shall be allowed in excess of five thousand dollars except that where the contributions recoverable under subsection (2) of section 7 of the Central Provident Fund Act (Cap. 121) or the contributions made to a designated pension or provident fund exceed five thousand dollars, the excess contributions shall be allowed as a deduction; and for the purpose of this paragraph a “designated pension or provident fund” means an approved fund designated by the Minister;”;

(b)

by inserting, immediately after sub-paragraph (v) of the proviso to paragraph (e) of subsection (2), the following sub-paragraph:

“(vi)

in the case of an individual who has made contributions to a designated pension or provident fund, no such deduction shall exceed the contributions which would have been recoverable under subsection (2) of section 7 of the Central Provident Fund Act had contributions been payable in respect of him to the Central Provident Fund;”;

(c)

by deleting the words “seven hundred and fifty dollars” in sub-paragraph (iii) of paragraph (f) of subsection (2) and substituting the words “one thousand five hundred dollars”; and

(d)

by deleting the words “three hundred dollars for the year of assessment 1974 and seven hundred and fifty dollars for the year of assessment 1975 and subsequent years of assessment” in paragraph (f) of subsection (2) and substituting the words “one thousand dollars”.

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