Skills Development Levy (Amendment) Bill

Bill No. 15/1991

Read the first time on 11th March 1991.
An Act to amend the Skills Development Levy Act (Chapter 306 of the 1985 Revised Edition).
Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:
Short title and commencement
1.  This Act may be cited as the Skills Development Levy (Amendment) Act 1991 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.
Amendment of section 2
2.  Section 2 of the Skills Development Levy Act (referred to in this Act as the principal Act) is amended —
(a)by deleting the definitions of “Comptroller” and “Council”; and
(b)by inserting, immediately before the definition of “employee”, the following definition:
“ “Board” means the National Productivity Board established under the National Productivity Board Act [Cap. 329];”.
Amendment of section 3
3.  Section 3 of the principal Act is amended by inserting, immediately after subsection (3), the following subsection:
“(4)  Without prejudice to any other remedy, the levy may be recovered as a debt due to the Board from the person accountable therefor.”.
Repeal of section 5
4.  Section 5 of the principal Act is repealed.
Amendment of section 6
5.  Section 6 of the principal Act is amended —
(a)by deleting the words “which shall be under the control and management of the Minister” in subsection (1);
(b)by deleting the words “recovered for late payment,” in subsection (2) and substituting the words “, fines and costs recovered for proceedings under this Act,”; and
(c)by deleting subsection (3) and substituting the following subsection:
“(3)  The Fund shall, upon the commencement of the Skills Development Levy (Amendment) Act 1991, be transferred to and shall vest in the Board without further assurance.”.
Amendment of section 8
6.  Section 8 (2) of the principal Act is amended by deleting the word “Minister” in the first line and substituting the word “Board”.
Repeal and re-enactment of sections 9 and 10, and new section 10A
7.  Sections 9 and 10 of the principal Act are repealed and the following sections substituted therefor:
“Control and administration of the Fund
9.—(1)  The Board shall control and administer the Skills Development Fund established under section 6, including the collection of the skills development levy and the disbursement of grants and loans from the Fund for the purposes of this Act.
(2)  The Board shall have power to do all things necessary or convenient to be done for or in connection with the performance of its functions under this Act.
Delegation of functions of Board and reimbursement
10.—(1)  The Board may, with the approval of the Minister, appoint such agents (including the Government) as may be necessary for the purposes of this Act.
(2)  The Board may, with the approval of the Minister, delegate all or any of its powers and functions under this Act to any employees or agents (including the Government) as they may appoint under subsection (1).
(3)  The Board may pay to any person appointed under subsection (1) a fee, not exceeding such percentage of the total amount of contributions as the Minister may direct, for any services rendered in exercise of any powers and functions delegated to that person under this Act.
(4)  The Board may use moneys from the Fund for all expenses incurred by the Board for the purposes of this Act.
(5)  Any appointments and delegations made under this section shall be published in the Gazette.
Limitation of liability
10A.  The liabilities of the Board arising from any matter concerning the Fund shall be limited to the amount of the Fund.”.
Amendment of section 11
8.  Section 11 of the principal Act is amended by deleting the words “from time to time be invested in such manner or in any securities as may be authorised by the Minister” and substituting the words “be invested in such manner or securities as trustees may by any written law be authorised to invest or, with the approval of the Minister, in any other securities or investments”.
New section 11A
9.  The principal Act is amended by inserting, immediately before section 12 in Part IV, the following section:
“Penalty for false return or information
11A.—(1)  Any person who negligently or without reasonable excuse —
(a)makes a return which is false in any material particulars; or
(b)gives any false information in relation to any matter affecting his own or any other person’s liability to pay the levy,
shall be guilty of an offence and shall be liable on conviction to a penalty equal to the amount of the levy due and unpaid and to a fine not exceeding $2,500 or to imprisonment for a term not exceeding 6 months or to both.
(2)  Any person who wilfully with intent to evade payment of the levy or to aid or abet any other person to evade payment of the levy —
(a)omits from a form or return any remuneration which ought to be included;
(b)gives any false answer, whether verbally or in writing, to any question or request for information asked or made under this Act or any regulations made thereunder;
(c)prepares or maintains or authorises the preparation or maintenance of any false books of account or other records or falsifies or authorises the falsification of any books of account or records,
shall be guilty of an offence and shall be liable on conviction to a penalty equal to double the amount of the levy due and unpaid and to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 years or to both.
(3)  For the purposes of this section, where it is proved that any false statement is made in any return by or on behalf of any employer, or in any payroll register, books of account or other records maintained by or on behalf of any employer, that employer, or person answerable for the employer, shall be presumed, until the contrary is proved, to have made that false statement with intent to evade payment of the levy.
(4)  For the purposes of this section, “levy due and unpaid” means the levy that is due and unpaid at the time when the offence is committed.
(5)  The institution of proceedings for or the imposition of a penalty, fine or term of imprisonment under this section shall not relieve any employer from liability to pay any levy for which he is or may be liable.”.
Amendment of section 12
10.  Section 12 (2) of the principal Act is amended by deleting the words “subsection (1)” in the first line and substituting the words “this Act”.
Repeal and re-enactment of sections 14 and 15, and new sections 16 to 23
11.  Sections 14 and 15 of the principal Act are repealed and the following sections substituted therefor:
“Power to compound
14.—(1)  The Board may abate any penalty or compound any offence under this Act or any regulations made thereunder by accepting from the person who is reasonably suspected of having committed the offence a sum not exceeding $500.
(2)  All sums received for the composition of any offence under this section shall be paid into the Fund.
Sanction of Public Prosecutor
15.  No court shall take cognizance of any offence under this Act or any regulations made thereunder except with the sanction of the Public Prosecutor.
Financial provisions
16.  The financial provisions set out in the First Schedule shall apply to the Board in all matters relating to the Fund.
Annual report
17.—(1)  The Board shall, as soon as possible but not later than 30th September of each year, submit to the Minister an annual report in respect of the Fund during that year, and the Minister shall present a copy of every such report to Parliament.
(2)  Notwithstanding subsection (1), the Minister may at any time request the Board to furnish him with any information concerning any matter relating to the Fund, and the Board shall furnish him with the information required, and afford him or his representative all necessary facilities for the verification of the information required.
Directions by Minister
18.—(1)  The Minister may give to the Board such directions, not inconsistent with this Act, as he thinks fit as to the administration of the Fund and the Board shall give effect to such directions.
(2)  The annual report for any financial year shall set out any directions given by the Minister under subsection (1) and shall contain a report of any action taken by the Board during that financial year consequent on the directions.
Preservation of secrecy
19.—(1)  Except for the purpose of the performance of his duties or the exercise of his functions or when lawfully required to do so by any court or under the provisions of any written law, no person who is or has been a member, employee or agent of the Board shall disclose to any person any information relating to the affairs of the Board or of any person which he has acquired in the performance of his duties or the exercise of his functions.
(2)  Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000 or to imprisonment for a term not exceeding one year or to both.
Public servants
20.  The members, employees and agents of the Board shall be deemed to be public servants within the meaning of the Penal Code [Cap. 224].
Priority of case in winding up
21.  There shall be included among the taxes which, under section 328 of the Companies Act [Cap. 50], are to be paid in priority to all other unsecured debts in a winding up of a company, the amount of any levy due from the company and having become due within 12 months before the date of commencement of the winding up.
Regulations
22.  The Minister may make such regulations as are necessary or expedient for carrying out the provisions of this Act and, in particular, the Minister may make regulations to provide for all or any of the matters specified in the Second Schedule.
Transitional provisions
23.—(1)  All deeds, bonds, agreements and instruments made by the Government or any person acting on behalf of the Government in relation to any grants or loans of money from the Fund subsisting immediately before the commencement of the Skills Development Levy (Amendment) Act 1991 shall continue in force and be enforceable by or against the Board as if the Board had been a party thereto.
(2)  Any civil proceeding or cause of action pending or existing immediately before the commencement of the Skills Development Levy (Amendment) Act 1991 by or against the Government or any person acting on its behalf in relation to any levy or grants or loans of money from the Fund may be continued and enforced by or against the Board.”.
Repeal of Schedule, and new First and Second Schedules
12.  The Schedule to the principal Act is repealed and the following Schedules substituted therefor:
“FIRST SCHEDULE
Section 16.
Financial Provisions
Financial year
1.  The financial year of the Board shall begin on 1st April of each year and end on 31st March of the succeeding year except that the first financial year shall begin on the date of commencement of this Act and shall end on 31st March of the succeeding year.
Accounts of Board
2.  The Board shall keep proper accounts and records of its transactions and affairs and shall do all things necessary to ensure that all payments out of its moneys are correctly made and properly authorised and that adequate control is maintained over the assets of, or in the custody of, the Board and over the expenditure incurred by the Board.
Auditor
3.—(1)  The accounts of the Board shall be audited by the Auditor-General or such other auditor as may be appointed annually by the Minister in consultation with the Auditor-General.
(2)  A person shall not be qualified for appointment as an auditor under sub-paragraph (1) unless he is an approved company auditor under the Companies Act (Cap. 50).
(3)  The remuneration of the auditor shall be paid out of the Fund.
Financial statements
4.  The Board shall, as soon as practicable but not later than 30th June in every year, prepare and submit the financial statements in respect of the preceding financial year to the auditor who shall audit and report on them.
Auditor’s report
5.—(1)  The auditor shall in his report state —
(a)whether the financial statements show fairly the financial transactions and the state of affairs of the Board;
(b)whether proper accounting and other records have been kept, including records of all assets of the Board whether purchased, donated or otherwise;
(c)whether the financial statements are prepared on a basis similar to that adopted for the preceding year;
(d)whether the financial statements are in agreement with the accounting and other records;
(e)whether the receipts, expenditure, investment of moneys, and the acquisition and disposal of assets by the Board during the financial year have been in accordance with this Act; and
(f)such other matters arising from the audit as he considers should be reported.
(2)  The auditor shall send an annual report of his audit to the Board not later than 30th September in each year.
(3)  The auditor may at any other time report to the Minister through the Board upon any matter arising out of the performance of his audit.
Powers of auditor
6.—(1)  The auditor or any person authorised by him is entitled at all reasonable times to full and free access to all accounting and other records relating, directly or indirectly, to the financial transactions of the Board.
(2)  The auditor or a person authorised by him may make copies of or extracts from any such accounting and other records.
(3)  The auditor may require any person to furnish him with such information in the possession of that person or to which that person has access as the auditor considers necessary for the purposes of his functions under this Act.
Penalty for obstruction
7.  Any person who fails without any reasonable cause to comply with any requirement of the auditor under paragraph 6(3) or who otherwise hinders, obstructs or delays the auditor in the performance of his functions under this Act shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000 and, in the case of a continuing offence, to a further fine not exceeding $100 for every day during which the offence continues after conviction.
Presentation of audited financial statements and auditor’s report
8.—(1)  As soon as the accounts of the Board and the financial statements have been audited in accordance with the provisions of this Act but not later than 30th September in each year, a copy of the audited financial statements signed by the Chairman and certified by the auditor, together with a copy of any report made by the auditor, shall be submitted to the Minister.
(2)  Where the Auditor-General is not the auditor of the Board, a copy of the audited financial statements and any report made by the auditor shall be forwarded to the Auditor-General at the same time they are submitted to the Board.
(3)  The Minister shall as soon as practicable cause a copy of the audited financial statements and of the report of the auditor to be presented to Parliament.
SECOND SCHEDULE
Section 22.
Matters in Respect of Which Minister May Make Regulations
1.  Requiring employers to give notice of their liability to pay the levy and the manner in which the notice shall be given.
2.  The manner in which the levy is to be paid and collected and the manner in which the levy when paid and collected shall be accounted for.
3.  The manner in which the levy due and unpaid are to be assessed and collected.
4.  The keeping by employers liable to pay the levy of payroll records, receipts of contributions and such other documents as may seem necessary, and the preservation of the same.
5.  The disclosure and making of returns to persons authorised by the Board of such information as may be required for the ascertainment and assessment of liability to pay contributions.
6.  The production to and inspection and removal by persons authorised by the Board of accounts, payroll records, books, receipts and other records for the purpose of satisfying themselves as to whether the levy has been duly paid.
7.  The refund of any levy paid in excess of the amount required by this Act.
8.  Matters consequential on the death of an employer, his becoming bankrupt or subject to any incapacity or (where the employer is a company) its winding up, in relation to any unpaid levy.
9.  The remission of any levy.
10.  The purposes for which moneys of the Fund may be applied.
11.  The production to and inspection and removal by persons authorised by the Board of accounts, books, receipts and other records for the purpose of satisfying them as to whether grants or loans from the Fund have been properly applied by persons obtaining such grants or loans.
12.  Making any act or omission in contravention of any regulations made under this Act an offence and prescribing penalties for such offences which may consist of a fine not exceeding $5,000 or imprisonment for a term not exceeding one year or both.
13.  The imposition of penalties (such penalties, if unpaid, to be recoverable as a debt due to the Board) to be paid by an employer for late payment of the levy.
14.  The manner of the service of notices for the purposes of this Act.”.
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