Income Tax (Amendent) Bill

Bill No. 30/1967

Read the first time on 31st October 1967.

An Act to amend the Income Tax Ordinance (Chapter 166 of the 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.—(1) This Act may be cited as the Income Tax (Amendment) Act, 1967, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

(2) The amendments made by sections 3, 4 and 5 and paragraph (e) of section 11 of this Act shall apply in respect of the year of assessment 1966 and subsequent years of assessment.

(3) The amendments made by section 6 and paragraphs (a) to (d) of section 11 of this Act shall apply in respect of the year of assessment 1967 and subsequent years of assessment.

(4) The amendments made by section 7 of this Act shall apply in respect of the year of assessment 1968 and subsequent years of assessment.

Amendment of section 2

2. Section 2 of the Income Tax Ordinance (hereinafter in this Act referred to as “the Ordinance”) is hereby amended by deleting the definition of “accountant” appearing therein and substituting therefor the following: —

“ “accountant” means a public accountant within the meaning of the Singapore Society of Accountants Ordinance, 1963 (Ord. 14 of 1963);”.

Amendment of section 20

3. Section 20 of the Ordinance is hereby amended —

(a)

by deleting the expression “him,” appearing in the eleventh line of subsection (1) thereof and substituting therefor the expression “him in Singapore (whether by reason of the discontinuance of the trade, profession or business, or discontinuance of use of such machinery or plant in a trade, profession or business which continues to be carried on in Singapore)”;

(b)

by deleting the second proviso to subsection (1) thereof and substituting therefor the following: —

“And provided further that, where machinery or plant continues to belong to such person after the date on which it permanently ceases to be used for the purposes of a trade, profession or business carried on by him in Singapore, it shall be deemed to have been sold on the date of permanent cessation of use at the open-market price on such date.”; and

(c)

by deleting the full-stop appearing at the end of subsection (6) thereof and substituting therefor a colon, and by inserting immediately thereafter the following new proviso: —

“Provided that, where the Comptroller is satisfied by reason of the special nature of any machinery or plant that it is not practicable to determine an open-market price, he may adopt such other value as appears to him to be reasonable in the circumstances.”.

Amendment of section 24

4. Subsection (2) of section 24 of the Ordinance is hereby amended by deleting the semi-colon appearing at the end of paragraph (a) thereof and substituting therefor a colon, and by inserting immediately thereafter the following new proviso: —

“Provided that no such election may be made unless before the sale in the case of the seller and after the sale in the case of the buyer the property is used in the production of income chargeable under the provisions of this Ordinance.”.

Amendment of section 40

5. Subsection (1) of section 40 of the Ordinance is hereby amended by deleting the expression “proviso (ii)” appearing in the ninth line thereof and substituting therefor the expression “proviso (i)”.

New section 40A

6. The Ordinance is hereby amended by inserting immediately after section 40 thereof the following new section: —

“Relief for non-residents in respect of interest on moneys held on deposit in approved banks

40A.—(1) Any individual who, in any year of assessment, is not resident in Singapore shall, if the tax payable by him in respect of that year is attributable in whole or in part to interest on moneys held on deposit in an approved bank in Singapore, be allowed relief in respect of that year in the following manner: —

(a)	where the only source of income in Singapore is such moneys on deposit, by reduction of the rate of tax to ten per centum on every dollar of the chargeable income;
(b)	where such person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to such moneys on deposit, by reduction of the rate of tax to ten per centum on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such moneys on deposit bears to the total assessable income;
(c)	where such person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to such moneys on deposit, by reduction of the rate of tax to ten per centum on every dollar of the chargeable income.

(2) Where any person is entitled to relief under this section and is also entitled to relief under either subsection (1) or (2A) of section 40 of this Ordinance, he shall be entitled to whichever relief is the greater in respect of the income to which this section relates.

(3) In this section —

“approved bank” means a bank in Singapore approved by the Minister by order published in the Gazette;

“statutory income attributable to such moneys on deposit” means the statutory income derived from source ascertained in accordance with subsection (1), (6) or (7) (as appropriate) of section 35 of this Ordinance;

“total assessable income” means the remainder of the statutory income of any person after the deductions allowed under paragraphs (a) and (b) of subsection (2) of section 37 of this Ordinance have been made.”.

New sections 40B and 40C

7. The Ordinance is hereby amended by inserting immediately after new section 40A thereof the following new sections: —

“Relief for non-resident public entertainers

40B.—(1) Any individual who, in any year of assessment, is not resident in Singapore shall, if the tax payable by him in respect of that year is attributable to income derived as a public entertainer, be allowed relief in respect of that year in the following manner: —

(a)	where the only source of income in Singapore is such activity as a public entertainer, by reduction of the rate of tax to fifteen per centum on every dollar of the chargeable income;
(b)	where such person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to such activity as a public entertainer, by reduction of the rate of tax to fifteen per centum on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a public entertainer bears to the total assessable income;
(c)	where such person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to such activity as a public entertainer, by reduction of the rate of tax to fifteen per centum on every dollar of the chargeable income.

(2) Where any person is entitled to relief under this section and is also entitled to relief under subsection (1) or (2A) of section 40 of this Ordinance, he shall be entitled to whichever relief is the greater in respect of the income to which this section relates.

(3) In this section —

“public entertainer” means a stage, radio or television artiste, a musician, athlete or an individual exercising any profession, vocation or employment of a similar nature;

“statutory income attributable to such activity as a public entertainer” means the statutory income derived from such source ascertained in accordance with subsection (1), (3) or (5) (as appropriate) of section 35 of this Ordinance;

Relief for non-resident employees

40C.—(1) Any person who, in any year of assessment, is not resident in Singapore shall, if the tax payable by him in respect of that year is attributable to income derived from the exercise of an employment in Singapore, be allowed relief in respect of that year in the following manner: —

(a)	where the only source of income in Singapore is such activity as a non-resident employee, by reduction of the rate of tax to fifteen per centum on every dollar of the chargeable income;
(b)	where such person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to such activity as a non-resident employee, by reduction of the rate of tax to fifteen per centum on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a non-resident employee bears to the total assessable income;
(c)	where such person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to such activity as a non-resident employee, by reduction of the rate of tax to fifteen per centum on every dollar of the chargeable income:

Provided that the relief available to any person under paragraph (a), (b) or (c) of this subsection shall be so limited that the tax payable in respect of such income shall not be less than that which would be payable by a resident of Singapore in the same circumstances.

(3) In this section —

“non-resident employee” means an individual who has exercised an employment in Singapore for such period of time as not to qualify for the status of a resident and includes an individual who is in receipt of leave pay attributable to a period of employment in Singapore;

“statutory income attributable to such activity as a non-resident employee” means the statutory income derived from such source ascertained in accordance with subsection (1), (3) or (5) (as appropriate) of section 35 of this Ordinance;

Amendment of section 44

8. Subsection (4) of section 44 of the Ordinance is hereby amended by deleting the words “as such” appearing at the end thereof and substituting therefor the expression “in the manner provided by section 90 of this Ordinance”.

Amendment of section 45

9. Subsection (1) of section 45 of the Ordinance is hereby amended by deleting the words “as such” appearing in the tenth line and in the last line thereof and substituting therefor in each case the expression “in the manner provided by section 90 of this Ordinance”.

Amendment of section 90

10. Subsection (1) of section 90 of the Ordinance is hereby deleted and the following substituted therefor: —

“(1) Notwithstanding the provisions of any other written law, tax and any penalty imposed under this Ordinance and any sum due to the Government under the provisions of sections 44 and 45 of this Ordinance, may be sued for by way of a specially indorsed writ of summons. The Comptroller may, in his own name, sue for any such tax, penalty or other sum due and shall be entitled to all costs allowed by law against the person liable thereto.”.

Amendment of First Schedule

11. The First Schedule to the Ordinance is hereby amended —

(a)

by deleting item 2 of paragraph A thereof;

(b)

by re-numbering item 3 of paragraph A thereof as item 2;

(c)

by inserting immediately after item 2 of paragraph A thereof the following new items: —

“

3. Board of Commissioners of Currency, Singapore.

(No. 5 of 1967).

3A. Board of Legal Education.

(No. 57 of 1966).

”;

(d)

by inserting immediately after item 27 of paragraph A thereof the following new item: —

“

27A. Singapore Advocates and Solicitors Society.

(No. 57 of 1966).

”; and

(e)

by inserting immediately after item 1 of paragraph B thereof the following new item: —

“1A. Boustead Institute for Seamen.”.

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