Income Tax (Amendment) Bill

Bill No. 54/1965

Read the first time on 13th December 1965.
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, 1965, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.
(2)  The amendments made by the sections enumerated hereunder shall apply in respect of year of assessment 1966 and subsequent years of assessment: —
Section 2 paragraphs —
(e)(definition of “income derived from tin mining operations” only);
(g)(definition of “persons”);
(j)(definition of “tin mining operations” only);
Section 8 paragraphs (a) to (d);
Sections 9 and 10;
Section 11 paragraphs (i), (m) and (n);
Section 12 paragraph (e); Section 14; Section 17;
Section 18 paragraphs (a) and (d);
Section 19; Section 20; Section 21;
Section 22; Section 23;
Section 27 paragraphs (b), (c) and (d);
Section 28 paragraph (a); Section 29; Section 30;
Section 32 paragraph (a); Section 37;
Section 56; Section 59.
Amendment of section 2
2.  Section 2 of the Income Tax Ordinance (hereinafter in this Act referred to as “the Ordinance”) is hereby amended —
(a)by inserting immediately after the definition of “advocate and solicitor” the following new definition: —
“ “annual value” has the same meaning as in section 2 of the Property Tax Ordinance, 1960, and shall be ascertained in the same manner as annual value is ascertained under the said Ordinance (Ord. 72 of 1960);”;
(b)by deleting the definition of “approved pension or provident fund or society” appearing therein and substituting therefor the following new definition: —
“ “approved pension or provident fund or society” means a pension or provident fund or society approved by the Comptroller under section 5 of this Ordinance;”;
(c)by inserting immediately after the definition of “approved pension or provident fund or society” the following new definition: —
“ “Auditor” means the Director of Audit;”;
(d)by deleting the definition of “Commonwealth” appearing therein and substituting therefor the following new definition: —
“ “Commonwealth”, in relation to a country, means any country recognised by the President to be a Commonwealth country and “part of the Commonwealth” means any Commonwealth country, colony, protectorate or protected state or any other territory administered by the Government of any Commonwealth country;”;
(e)by deleting the definitions of “Comptroller-General”, “Federal Minister” and “income derived from tin mining operations” appearing therein;
(f)by deleting the definition of “Local Forces” appearing therein and substituting therefor the following new definition: —
“ “Local Forces” means the Singapore armed forces and any Volunteer or Reserve Forces attached thereto;”;
(g)by deleting the expression “and (in the case of section 10A of, and the Fourth Schedule to, this Ordinance) a partnership” appearing at the end of the definition of “person” therein;
(h)by deleting the words “Federal Minister” appearing at the end of the definition of “replanting” therein and substituting therefor the word “Minister”;
(i)by deleting the definition of “resident” appearing therein and substituting therefor the following new definition: —
“ “resident” in Singapore —
(a)in relation to an individual, means a person who resides in Singapore except for such temporary absences therefrom as may be reasonable and not inconsistent with a claim by such person to be resident in Singapore, and includes in relation to a year of assessment a person who is physically present or who exercises an employment in Singapore for one hundred and eighty-three days or more during such year; and
(b)in relation to a company or body of persons, means a company or body of persons the control and management of whose business is exercised in Singapore;”; and
(j)by deleting the definitions of “tin mining operations” and “the Ruler of any State” appearing therein.
Repeal of sections 3 and 4
3.  Sections 3 and 4 of the Ordinance are hereby repealed.
Amendment of section 5
4.  Section 5 of the Ordinance is hereby amended —
(a)by deleting the words “Yang di-Pertuan Negara” appearing in subsection (1) thereof and substituting therefor the word “Minister”;
(b)by deleting subsection (5) thereof and substituting therefor the following: —
(5)  The Comptroller shall be responsible for the assessment and collection of tax and shall pay all amounts collected in respect thereof into the Consolidated Fund.”;
(c)by inserting immediately after subsection (5) thereof the following new subsections: —
(6)  The Comptroller may, subject to such conditions as he may think fit to impose, approve any pension or provident fund or society for the purposes of this Ordinance and may (without prejudice to the exercise of any power in that behalf conferred on him by any condition so imposed) at any time withdraw any approval previously given in respect of any such fund or society.
(7)  The Comptroller may specify the form of any return, claim, statement or notice to be made or given under this Ordinance.”.
Amendment of section 6
5.  Section 6 of the Ordinance is hereby amended —
(a)by deleting the words “Federal Minister” appearing in subsection (2) thereof and substituting therefor the word “President”;
(b)by deleting subsection (3) thereof;
(c)by deleting subsections (5) and (6) thereof and substituting therefor the following: —
(5)  The obligation as to secrecy imposed by this section shall not prevent the disclosure to the authorised officers of the Government of any other country of such facts as may be necessary —
(a)to enable the proper relief from income tax to be given in either country, where provision exists for the granting of relief in respect of taxes paid in the other country; or
(b)for the avoidance of double taxation and the prevention of fiscal evasion in either country, where an arrangement under section 49 of this Ordinance is in operation between the Government of that country and the Government of Singapore.
(6)  Notwithstanding anything contained in this section, the Comptroller shall permit the Minister, the Auditor or any officer duly authorised in that behalf by the Auditor to have such access to any records or documents as may be necessary for the performance of his official duties. The Minister, the Auditor or any such officer shall be deemed to be a person employed in carrying out the provisions of this Ordinance for the purposes of this section.”; and
(d)by deleting subsections (8), (9) and (10) thereof and substituting therefor the following: —
(8)  Notwithstanding anything contained in this section, the Comptroller may transmit to the Comptroller of Property Tax any information which may be required in the performance of his duties by that Comptroller, or may permit such access to any records or documents as may be necessary for such purposes.”.
Amendment of section 7
6.  Section 7 of the Ordinance is hereby amended —
(a)by deleting subsection (1) thereof and substituting therefor the following: —
(1)  The Minister may make rules —
(a)to provide for the deduction and payment of tax at the source in respect of income from any employment, and for the recovery of tax so deducted; and
(b)generally to give effect to the provisions, other than the provisions of section 81, of this Ordinance.”; and
(b)by deleting subsection (3) thereof and substituting therefor the following: —
(3)  All rules made under this section shall be published in the Gazette and shall be presented to Parliament as soon as may be after publication.”.
Amendment of section 8
7.  Section 8 of the Ordinance is hereby amended by deleting subsection (5) thereof.
Amendment of section 10
8.  Section 10 of the Ordinance is hereby amended —
(a)by deleting paragraph (c) of subsection (1) thereof;
(b)by deleting the full-stop appearing at the end of paragraph (f) of subsection (1) thereof and substituting therefor a semi-colon;
(c)by inserting immediately after paragraph (f) of subsection (1) thereof the following new paragraph: —
(g)any gains or profits of an income nature not falling within any of the preceding paragraphs.”;
(d)by inserting immediately after subsection (1) thereof the following new subsection: —
(1A)  For the purposes of paragraph (f) of subsection (1) of this section and of this subsection —
(a)the expression “any other profits arising from property” shall be deemed to include the net annual value of property used by or on behalf of the owner for residential purposes and not for the purposes of gain or profit; and
(b)the expression “net annual value of any property” shall mean the annual value of such property less the expenses of repair, insurance, interest, maintenance or upkeep and all public rates and taxes paid thereon:
Provided that in respect of any one property which is occupied for residential purposes by the owner thereof, an amount not exceeding the net annual value or three thousand dollars whichever is the lower, shall not be deemed to be profits arising from property.”; and
(e)by deleting subparagraph (ii) of paragraph (c) of subsection (2) thereof.
Repeal of section 10A
9.  Section 10A of the Ordinance is hereby repealed.
Amendment of section 12
10.  Section 12 of the Ordinance is hereby amended by deleting subsection (5) thereof and substituting therefor the following: —
(5)  The gains or profits from any employment exercised outside Singapore on behalf of the Government of Singapore by any individual in the discharge of governmental functions shall be deemed to be derived from Singapore except where such individual is not a citizen or a resident of Singapore.”.
Amendment of section 13
11.  Section 13 of the Ordinance is hereby amended —
(a)by deleting paragraph (a) of subsection (1) thereof and substituting therefor the following: —
(a)the official emoluments of the President;”;
(b)by deleting the word “British” appearing in paragraph (b) of subsection (1) thereof and substituting therefor the word “Singapore”;
(c)by deleting paragraph (c) of subsection (1) thereof and substituting therefor the following: —
(c)the official emoluments payable from Commonwealth Funds to members of Commonwealth forces, and to persons in the service of a Commonwealth Government, in Singapore, in respect of their offices under such Commonwealth Government, if such emoluments are subject to income tax in such Commonwealth country;”;
(d)by deleting paragraph (d) of subsection (1) thereof;
(e)by deleting paragraph (f) of subsection (1) thereof and substituting therefor the following: —
(f)the income of —
(i)any bona fide friendly society approved by the Comptroller;
(ii)any co-operative society registered under the Co-operative Societies Ordinance (Cap. 175);”;
(f)by deleting paragraph (k) of subsection (1) thereof and substituting therefor the following: —
(k)sums derived from, or received in, Singapore as pensions, being —
(i)wound or disability pensions granted to members or former members of a Commonwealth force;
(ii)pensions granted to dependent relatives of any such member killed on war service or who died as a result of war service injuries; or
(iii)wound or disability pensions granted to members or former members of civil defence organisations.”;
(g)by deleting the words “the State and the States of Malaya” appearing at the end of paragraph (n) of subsection (1) thereof and substituting therefor the word “Singapore”;
(h)by deleting paragraph (o) of subsection (1) thereof;
(i)by deleting paragraph (p) of subsection (1) thereof;
(j)by deleting paragraph (r) of subsection (1) thereof;
(k)by deleting paragraph (s) of subsection (1) thereof and substituting therefor the following: —
(s)sums payable by way of annual bounty out of the public revenue to members of such Local Forces as the Minister may from time to time by order declare to be a Force to which the provisions of this paragraph shall apply:”;
(l)by deleting the expression “The Federal Minister may, by notification in the Federal Gazette and in the Gazette, provide that the interest payable on any loan charged on the public revenue of the Colony or of the Federation” appearing in subsection (2) thereof and substituting therefor the expression “The Minister may, by notification in the Gazette, provide that the interest payable on any loan charged on the public revenue of Singapore”;
(m)by deleting the words “resident neither in the State nor in the States of Malaya” appearing in subsection (4) thereof and substituting therefor the words “not resident in Singapore”;
(n)by deleting subsection (4A) thereof; and
(o)by deleting the words “Malaysian Board of Income Tax” appearing in subsection (5) thereof and substituting therefor the word “Minister”.
Amendment of section 14
12.  Section 14 of the Ordinance is hereby amended —
(a)by deleting the word “Comptroller-General” appearing in the proviso to paragraph (e) of subsection (1) thereof and substituting therefor the word “Comptroller”;
(b)by deleting the words “in the Federation” appearing in paragraph (f) of subsection (1) thereof;
(c)by deleting the semi-colon after the word “prescribed” appearing at the end of paragraph (g) of subsection (1) thereof and substituting therefor the expression “in rules made under section 7.”;
(d)by deleting paragraph (h) of subsection (1) thereof; and
(e)by deleting subsection (2) thereof and substituting therefor the following: —
(2)  Notwithstanding the provisions of subsection (1) payments made by way of salary, wages or similar emoluments, to an employee who is the husband, wife or child of an employer, shall be allowed as deductions only to the extent to which, in the opinion of the Comptroller, they are reasonable in amount having regard to the services performed by such employee.”.
Amendment of section 14A
13.  Subsection (1) of section 14A of the Ordinance is hereby amended by deleting the words “the Colony or in the States of Malaya” appearing in the fourth and fifth lines thereof and substituting therefor the word “Singapore”.
New section 14B
14.  The Ordinance is hereby amended by inserting immediately after section 14A thereof the following new section: —
Further deduction allowed in respect of market development expenditure
14B.—(1)  Where market development expenditure is incurred on or after the 1st day of January 1966, by a person carrying on a trade or business which is an approved market development enterprise there shall be allowed a further deduction equal to the amount of such market development expenditure in addition to the deduction allowable under section 14 of this Ordinance.
(2)  Where due to an insufficiency of income, any part of such market development expenditure cannot be allowed as a deduction in any year of assessment, such expenditure shall be deemed to be a loss available for carry forward under the provisions of section 37 of this Ordinance.
(3)  For the purposes of this section —
“approved market development enterprise” means an enterprise approved by an order made by the Minister, subject to such conditions as he may think fit to impose, including the period during which the approval will operate;
“average annual expenditure” means a sum equal to one-third of the amount of expenditure incurred in direct advertising in recognised advertising media during the basis periods for the three years of assessment immediately preceding the basis period for the year of assessment in which the deduction is claimed:
Provided that, where an approved market development enterprise has carried on trade or business for a period of less than three years, the average annual expenditure shall be ascertained by dividing the total amount of such expenditure incurred prior to the basis period for the year of assessment in which the deduction is claimed, by the number of months in which the enterprise has carried on trade or business and multiplying the resultant by twelve;
“market development expenditure” means prescribed expenditure incurred by an approved market development enterprise, primarily and principally for the purpose of seeking opportunities, or in creating or increasing a demand, for —
(a)the use or consumption within Singapore of goods which have been manufactured, produced, assembled or processed in Singapore;
(b)the export from Singapore of goods which have been manufactured, produced, assembled, processed, packed, graded or sorted in Singapore.
“prescribed expenditure” means —
(a)in the case of expenditure in respect of the use or consumption of goods within Singapore, advertising expenses incurred in any basis period in promoting a demand for goods made in Singapore, subject to the following limitations: —
(i)where the trade or business has been in existence during prior years of assessment, the prescribed expenditure shall be an amount equal to the excess of the expenditure incurred in the basis period over the average annual expenditure, but no such deduction shall exceed fifty per cent of the average annual expenditure or one hundred thousand dollars, whichever is the less;
(ii)where the trade or business has not been in existence during any prior year of assessment, the deduction shall not exceed one hundred thousand dollars;
(b)in the case of expenditure in respect of the export of goods from Singapore, the following classes of expenditure made by a company: —
(i)advertising expenses paid to persons not resident in Singapore in respect of advertisements placed in recognised media such as newspapers and trade journals;
(ii)expenses directly attributable to the provision, without charge, of samples, to prospective customers outside Singapore, including the cost of delivery of such samples;
(iii)expenses directly attributable to carrying out export market research or the obtaining of export matketing information;
(iv)expenses directly attributable to the preparation of tenders for the supply of goods (not of the same kind and specifications regularly manufactured by the tenderer) to prospective customers outside Singapore;
(v)expenses by way of fares only (and not in respect of accommodation, sustenance or entertainment) in respect of travel to another country outside Singapore by a recognised employee of the company possessing authority to conclude sales of goods on behalf of the employer.
(4)  (a)  No expenditure shall be allowable as a further deduction under this section, which would not be allowable as a deduction under the provisions of section 14 of this Ordinance.

(b)Where the amount of any market development expenditure exceeds the amount which, in the opinion of the Comptroller, would reasonably be expected to be payable in the ordinary course of business for the purposes for which the expenditure was incurred, the Comptroller may, to the extent of the excess, disallow a deduction under this section.

(c)Where expenditure is incurred in respect of travel to another country by two or more employees of a company at the same time, the deduction allowable under this section shall be limited to the cost of travel of one such employee only, unless the company proves to the satisfaction of the Comptroller that it was reasonably necessary for more than one employee to travel to the other country.”.

Amendment of section 15
15.  Section 15 of the Ordinance is hereby amended by deleting paragraph (g) thereof and substituting therefor the following: —
(g)any amount paid or payable in respect of income tax in Singapore, or in respect of any tax on income (by whatever name called) in any country outside Singapore;”.
Amendment of section 17
16.  Section 17 of the Ordinance is hereby amended by deleting subsection (5) thereof.
Amendment of section 18A
17.  Section 18A of the Ordinance is hereby amended by deleting the words “the Colony or in the States of Malaya” appearing in subsections (1) and (3) thereof and substituting therefor in each case the word “Singapore”.
Amendment of section 19
18.  Section 19 of the Ordinance is hereby amended —
(a)by inserting immediately after the word “expenditure” appearing in the ninth line of subsection (1) thereof the words “or such other allowance as may be prescribed”;
(b)by deleting the expression “the Colony and the Federation; and in the case of a miner or planter as defined in section 25 of this Ordinance, the period during which he was so deprived of the use of such machinery or plant shall be deemed for the purposes of this proviso to have extended until the end of the basis period for the first year of assessment under this Ordinance” appearing in paragraph (i) of the proviso to subsection (2) thereof and substituting therefor the words “Singapore and the States of Malaya”;
(c)by deleting the word “Comptroller-General” appearing in paragraph (ii) of the proviso to subsection (2) thereof and substituting therefor the word “Comptroller”; and
(d)by inserting immediately after subsection (2) thereof the following new subsections: —
(3)  For the purposes of subsection (1) of this section “prescribed” means prescribed by an order made by the Minister.
(4)  Every order made under this section shall be published in the Gazette and shall be presented to Parliament as soon as may be after publication.”.
New section 19A
19.  The Ordinance is hereby amended by inserting immediately after section 19 thereof the following new section: —
Special allowances for prescribed plant and machinery. Fourth Schedule
19A.—(1)  Notwithstanding the provisions of section 19 of this Ordinance where a person proves to the satisfaction of the Comptroller that he is carrying on an industrial enterprise as defined in the Fourth Schedule to this Ordinance he shall be entitled for a period of three years to an annual allowance of thirty-three and one-third per cent in respect of capital expenditure incurred on or after the 1st day of January 1965, on the provision of machinery or plant for the purposes of that industrial enterprise in lieu of the allowances provided by section 19 of this Ordinance.
(2)  Any claim for allowances under this section shall be made at the time of lodgment of the return of income for the relevant years of assessment, or within such further time as the Comptroller, in his discretion, may allow.
(3)  Where any allowance has been claimed and allowed under this section for any year of assessment no allowances shall be made in any subsequent year of assessment under the provisions of section 19 in respect of such expenditure.
(4)  For the purposes of this section machinery or plant shall be deemed not to include motor vehicles designed primarily and principally for the carriage of persons.”.
Amendment of section 20
20.  Section 20 of the Ordinance is hereby amended —
(a)by deleting the words “an initial or an annual allowance has” appearing in the fourth and fifth lines of subsection (1) thereof and substituting therefor the expression “allowances under section 19 or 19A have”;
(b)by deleting subsections (4) and (5) thereof and substituting therefor the following: —
(4)  Notwithstanding anything in subsection (3) of this section, in no case shall the amount on which a balancing charge is made on a person exceed —
(a)the aggregate of the initial allowance, if any, and the annual allowances, if any, made to him under section 19 of this Ordinance in respect of the expenditure in question; or
(b)the special allowances, if any, made to him under section 19A of this Ordinance in respect of the expenditure in question.”.
Amendment of section 23
21.  Section 23 of the Ordinance is hereby amended by inserting immediately after the figures “19” appearing in the fourth line thereof the expression “, 19A”.
Amendment of section 24
22.  Subsection (2) of section 24 of the Ordinance is hereby amended by inserting immediately after paragraph (b) thereof the following new paragraph: —
(ba)notwithstanding anything contained in section 19A of this Ordinance, where the sale is a sale of machinery or plant, the special allowances provided under that section shall continue to be available as if no sale had taken place;”.
Repeal and re-enactment of section 25
23.  Section 25 of the Ordinance is hereby repealed and the following substituted therefor: —
Carry over of capital allowances granted under law in States of Malaya
25.  For the purposes of sections 16 to 24 of this Ordinance, any allowances in respect of capital expenditure which, but for the provisions of Part XV of this Ordinance would have been claimed and granted under this Ordinance, shall be deemed to have been so claimed and granted in all relevant prior years.”.
Repeal and re-enactment of section 27
24.  Section 27 of the Ordinance is hereby repealed and the following substituted therefor: —
Profits of non-resident shipowner or charterer
27.  Where a non-resident person carries on the business of shipowner or charterer, the income on which tax is payable shall be ascertained as follows: —
(a)where, for any period, a non-resident person produces the certificate mentioned in paragraph (b) of this section —
(i)the profits accruing in Singapore from the business for such period shall be deemed to be a sum bearing the same ratio to the sums receivable in respect of the carriage of passengers, mails, livestock and goods shipped in Singapore as the total profits for that period bear to the total sum receivable by him in respect of the carriage of passengers, mails, livestock and goods, as shown by the certificate; and
(ii)the depreciation allowable against such profits shall similarly be deemed to be a sum bearing the same ratio to the sum receivable in respect of the carriage of passengers, mails, livestock and goods shipped in Singapore as the total depreciation for the period bears to the total sum receivable by him in respect of the carriage of passengers, mails, livestock and goods, as shown by the certificate;
(b)the certificate referred to in paragraph (a) of this section shall —
(i)be one issued by or on behalf of the income tax authority of the place of residence of the non-resident person;
(ii)be acceptable for the purposes of this section only where the Comptroller is satisfied that the relevant income tax authority 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 Ordinance for the assessment of a resident of Singapore carrying on a similar business; and
(iii)contain, in respect of the relevant accounting period, the following information —
(a)the ratio of the profits or, where there are no profits, of the loss, as computed for the purposes of income tax by that authority, without making any allowance by way of depreciation, to the total sum receivable in respect of the carriage of passengers, mails, livestock and goods;
(b)the ratio of the allowance for depreciation as computed by that authority to that total sum receivable in respect of the carriage of passengers, mails, livestock and goods;
(c)where, for any period, a non-resident person does not, for any reason, produce a certificate complying with the provisions of paragraph (b) of this section, the profits accruing in Singapore shall be deemed to be a sum equal to five per cent of the full sum receivable on account of the carriage of passengers, mails, livestock and goods shipped in Singapore:
Provided that, where a non-resident person has been assessed under the provisions of this paragraph because a certificate had not been issued at the time of assessment, he shall be entitled, on the subsequent production of such a certificate to claim at any time within two years after the end of such year of assessment, or such further time as the Comptroller may consider reasonable in the circumstances, that his liability to tax for the year be determined on the basis provided by paragraph (a) of this section;
(d)where the Comptroller decides that the call of a ship belonging to a particular non-resident shipowner or charterer at a port in Singapore is casual and that further calls by that ship or others in the same ownership are improbable, the provisions of this section shall not apply to the profits of such ship and no tax shall be chargeable thereon.”.
Amendment of section 29
25.  Section 29 of the Ordinance is hereby amended by deleting the expression “, United Kingdom income tax,” appearing in the second and third line thereof.
Repeal of section 31
26.  Section 31 of the Ordinance is hereby repealed.
Amendment of section 35
27.  Section 35 of the Ordinance is hereby amended —
(a)by deleting both provisos to subsection (1) thereof;
(b)by deleting subsection (4) thereof and substituting therefor the following: —
(4)  Where any person becomes liable to tax under this Ordinance in respect of year of assessment 1966 or would have become so liable save for the insufficiency of income, he shall not be deemed to have acquired a new source of income by reason only of the repeal of Part XV of this Ordinance and the provisions of this section shall apply as if such person had been liable to tax under this Ordinance in all relevant prior years.”;
(c)by deleting subsection (6) thereof and substituting therefor the following: —
(6)  Where income from any source other than a source specified in subsection (3) or (7A) of this section first accrues to a person during any year of assessment, the statutory income from that source —
(a)in respect of the year of assessment in which the income first accrues shall be the amount of the income arising therefrom in that year of assessment;
(b)in respect of the year of assessment next succeeding that in which the income first accrued shall be the amount of the income arising therefrom in the first twelve months after the date on which such income first accrued to him; and
(c)in respect of subsequent years of assessment shall be the amount of the income arising therefrom in the year preceding the year of assessment.”; and
(d)by deleting from the proviso to subsection (9) thereof the words “the State and the States of Malaya” and substituting therefor the word “Singapore”.
Amendment of section 37
28.  Subsection (2) of section 37 of the Ordinance is hereby amended —
(a)by inserting at the end of paragraph (b) thereof the following: —
For the purposes of this paragraph, any loss incurred in any prior year which, if it had been a profit would have been assessable under this Ordinance save only for the provisions of Part XV of this Ordinance, shall be deemed to be a loss to which the provisions of this paragraph apply;”; and
(b)by deleting paragraph (c) thereof and substituting therefor the following: —
(c)an amount, not exceeding the statutory income, if any, remaining after the deductions authorised by paragraphs (a) and (b) of this subsection have been made, in respect of gifts of money made by him in the year preceding the year of assessment to the Government or to any institution of a public character in Singapore approved by the Minister on application by the institution concerned.
For the purposes of this paragraph an “institution of a public character” means an institution or fund in Singapore which is —
(i)a hospital not operated or conducted for profit;
(ii)a public or other benevolent institution not operated or conducted for profit;
(iii)a public authority or society not operated or conducted for profit and which is engaged in research or other work connected with the causes, prevention or cure of disease in human beings, where the gift is for such activities;
(iv)a university, or a public fund for the establishment, maintenance, enlargement or improvement of a university;
(v)an educational institution not operated or conducted for profit, or a public fund for the establishment, maintenance, enlargement or improvement of such an educational institution;
(vi)a public or private fund for the provision, establishment or endowment of a scholarship, exhibition or prize in a university, or an educational institution not operated or conducted for profit; or
(vii)a public fund established and maintained for the relief of distress among members of the public.”.
Amendment of section 39
29.  Section 39 of the Ordinance is hereby amended —
(a)by deleting the word “one-tenth” appearing in paragraph (b) of subsection (1) thereof and substituting therefor the word “one-fifth”;
(b)by deleting paragraph (a) of subsection (2) thereof and substituting therefor the following: —
(a)had a wife living with or maintained by him, there shall be allowed a deduction equal to the amount by which the sum of one thousand dollars exceeds the amount of earned income chargeable in the wife’s own name;”;
(c)by deleting the expression “(a) (i)” appearing in the proviso immediately following paragraph (c) of subsection (2) thereof and substituting therefor the expression “(a)”;
(d)by deleting paragraph (d) of subsection (2) thereof and substituting therefor the following: —
(d)maintained an unmarried child who was —
(i)under the age of sixteen years at any time during the year preceding the year of assessment; or
(ii)receiving full-time instruction at any university, college, school or other educational institution; or
(iii)serving under articles or indentures with a view to qualifying in a trade or profession,
there shall be allowed in respect of each such child according to his age amongst those eligible, a deduction as follows: —
 
The first child
 
$750;
 
The second and third child
 
$500;
 
The fourth and fifth child
 
$300:
Provided that —
(i)where the Comptroller is satisfied that a sum exceeding the appropriate deduction was, during the year preceding the year of assessment, expended by such individual directly on the maintenance or education of any such child or children elsewhere than in Singapore the deduction allowable shall be a sum equal to the total amount so expended but not exceeding double the amount of the appropriate deduction;
(ii)no deduction shall be allowed in respect of any child —
(a)whose income (excluding income to which the child is entitled as the holder of a scholarship, bursary or similar educational endowment for the year preceding the year of assessment exceeded the appropriate deduction otherwise allowable under this paragraph; or
(b)who was engaged in any employment other than under articles or indentures, or carried on or exercised a trade, business, profession or vocation, during the year preceding the year of assessment;
and such child shall not be regarded as an eligible child;
(iii)where more than one person is entitled to claim a deduction in respect of the same child for the same year of assessment, the deduction due under this paragraph shall be apportioned between such persons in such manner as appears reasonable to the Comptroller;
(iv)where a married woman has elected to be charged in her own name under the provisions of subsection (4) of section 51 of this Ordinance, the deduction to be apportioned under sub-paragraph (iii) shall not exceed the deduction which would have been allowed to her husband if he had wholly maintained the child during the year preceding the year of assessment and she had not elected for separate assessment.
For the purposes of this paragraph “child” means, in relation to an individual claiming a deduction under this paragraph, a legitimate child, step-child or child adopted in accordance with any statutory provision relating to the adoption of children, of such person.”; and
(e)by deleting the words “three thousand dollars” appearing in proviso (ii) to paragraph (e) of subsection (2) thereof and substituting therefor the expression “one-sixth part of the assessable income of such individual for the year of assessment or four thousand dollars, whichever is the less”; and
(f)by inserting immediately after proviso (iii) to paragraph (e) of subsection (2) thereof the following: —
(iv)no such deduction shall include any sum which has been claimed and allowed to a husband or wife under this paragraph.”.
Amendment of section 40
30.  Section 40 of the Ordinance is hereby amended —
(a)by deleting the expression —
(a)is not resident in Singapore; but
(b)is either a citizen of Malaysia or resident in Sabah or Sarawak,”.
appearing in subsection (1) thereof and substituting therefor the expression “is not resident in, but is a citizen of Singapore”;
(b)by deleting the word “Malaysia” appearing in subsection (2) thereof and substituting therefor the word “Singapore”; and
(c)by inserting immediately after subsection (2) thereof the following new subsection: —
(2A)  Any individual who, in any year of assessment, is neither resident in, nor a citizen of, Singapore, but is resident in another country, which pursuant to any arrangements entered into under section 49, affords to individuals who are residents of Singapore the same personal allowances, reliefs and reductions as are afforded to citizens of that country not resident in that country, shall be entitled to a like relief to that conferred by subsection (1) of this section.”.
Amendment of section 43
31.  Section 43 of the Ordinance is hereby amended —
(a)by inserting a comma after the word “company” in paragraph (a) thereof; and
(b)by inserting brackets around the words “other than a company” in paragraph (b) thereof.
Amendment of section 44
32.  Section 44 of the Ordinance is hereby amended —
(a)by deleting subsection (3A) thereof;
(b)by deleting the words “Government of the Federation” appearing in subsection (4) thereof and substituting therefor the word “Government”; and
(c)by deleting the proviso to subsection (5) thereof.
Amendment of section 45
33.  Section 45 of the Ordinance is hereby amended by deleting the word “Crown” appearing in subsection (1) thereof and substituting therefor the word “Government”.
Repeal of section 47
34.  Section 47 of the Ordinance is hereby repealed.
Amendment of section 48
35.  Section 48 of the Ordinance is hereby amended —
(a)by deleting the expression “(other than the United Kingdom or the Colony)” appearing in subsection (3) thereof and substituting therefor the words “other than Singapore”;
(b)by deleting subsection (4) thereof and substituting therefor the following: —
(4)  For the purposes of this section, “rate of tax”, when applied to tax paid or payable under this Ordinance, means the rate determined by dividing the amount of the tax paid or payable for the year (before the deduction of the relief granted under this section) by the amount of the income in respect of which the tax paid or payable under this Ordinance has been charged for that year, except that, where the income which is the subject of a claim to relief under this section is computed by reference to the provisions of this Ordinance on an amount other than the ascertained amount of the actual profits, the rate of tax shall be determined by the Comptroller; and the rate of Commonwealth income tax shall be computed in a similar manner.”.
Amendment of section 49
36.  Section 49 of the Ordinance is hereby amended —
(a)by deleting subsections (1), (2) and (3) thereof and substituting therefor the following: —
(1)  If the Minister by Order declares that arrangements specified in the Order have been made with the Government of any country outside Singapore with a view to affording relief from double taxation in relation to tax under this Ordinance and any tax of a similar character imposed by the laws of that country, and that it is expedient that those arrangements should have effect, the arrangements shall have effect notwithstanding anything in any written law.
(2)  Any arrangements made with the Government of another country —
(a)may provide for liability to tax by one country and for exemption from tax by the other country;
(b)may provide for exemption from tax in both countries;
(c)may deem the source of income to be wholly or partly in either or both of such countries; and
(d)may provide for the charge to tax by the country in which the source is deemed to be situated, of any income derived from such source.
(3)  While any such arrangements are in force with any country within the Commonwealth, section 48 of this Ordinance shall cease to have effect as respects that country except in so far as the arrangements otherwise provide.”; and
(b)by deleting the words “Yang di-Pertuan Agong” appearing in subsection (6) thereof and substituting therefor the word “Minister”.
Amendment of section 51
37.  Section 51 of the Ordinance is hereby amended —
(a)by deleting paragraph (iii) of subsection (3) thereof and substituting therefor the following: —
(iii)she is, and her husband is not, resident in Singapore.”; and
(b)by inserting immediately after subsection (3) thereof the following new subsections: —
(4)  A married woman living with her husband may elect to be chargeable in her own name on her earned income in respect of the year of assessment 1966 and subsequent years of assessment.
(5)  For the purposes of subsection (4) of this section the earned income of a married woman shall include all income earned by her from any trade, business, profession or vocation carried on by her separately from her husband and also all income earned by her in the exercise of her profession as a duly qualified accountant, advocate and solicitor, architect, dentist, engineer, medical practitioner or pharmacist, and any other profession as may be approved by the Minister and notified in the Gazette, whether as an employee or partner of her husband, but save as so provided shall not include any income derived by a married woman, whether as an employee or not, from any trade, business, profession or vocation carried on by her husband either on his own account or as a partner.”.
Amendment of section 53
38.  Paragraph (c) of subsection (1) of section 53 of the Ordinance is hereby amended by deleting the words “the State and the States of Malaya” appearing therein and substituting therefor the word “Singapore”.
Amendment of section 57
39.  Section 57 of the Ordinance is hereby amended by deleting subsection (3) thereof and substituting therefor the following: —
(3)  Where any person declared by the Comptroller to be the agent of any other person under the provisions of subsection (1) of this section is aggrieved by such declaration he may, by notice in writing to the Comptroller within fourteen days, or within such further time as the Comptroller in his discretion may allow, object to the declaration.
(4)  The Comptroller shall examine the objection and may cancel, vary or confirm the declaration.
(5)  Where the objector is aggrieved by the Comptroller’s decision upon his objection, he may appeal against such decision to the Board of Review and the provisions of Part XII of this Ordinance shall apply mutatis mutandis.”.
Amendment of section 65B
40.  Section 65B of the Ordinance is hereby amended by deleting subsection (1) thereof and substituting therefor the following: —
(1)  The Comptroller or any officer authorised by him in that behalf shall at all times have full and free access to all buildings, places, books, documents and other papers for any of the purposes of this Ordinance, and may, without fee or reward, inspect, copy or make extracts from any such books, documents or papers.
(1A)  The Comptroller may take possession of any such books, documents or papers where in his opinion —
(a)the inspection, copying or extraction thereof cannot reasonably be performed without taking possession;
(b)the books, documents or papers may be interferred with or destroyed unless possession is taken; or
(c)the books, documents or papers may be required as evidence in proceedings for an offence against this Ordinance or in proceedings for the recovery of tax or penalty, or in proceedings by way of an appeal against an assessment.”.
Amendment of section 68
41.  Subsection (1) of section 68 of the Ordinance is hereby amended by deleting the words “Municipality or other local authority or public body” appearing in the second and third lines thereof and substituting therefor the words “public authority or body corporate constituted by statute”.
Amendment of section 73
42.  Subsection (1) of section 73 of the Ordinance is hereby amended by inserting immediately after the word “where” appearing in the first line of the proviso thereto, the expression “, in the opinion of the Comptroller,”.
New section 73A
43.  The Ordinance is hereby amended by inserting immediately after section 73 thereof the following new section: —
Waiver of small assessments
73A.  Where it appears to the Comptroller that the amount of any tax or additional tax to which any person is liable does not exceed five dollars he may waive the assessment of such tax.”.
Repeal of section 75
44.  Section 75 of the Ordinance is hereby repealed.
Amendment of section 76
45.  Section 76 of the Ordinance is hereby amended —
(a)by deleting the semi-colon appearing after the word “section” in the seventh line of subsection (1) thereof and substituting therefor a full-stop and by deleting the provisos to subsection (1) thereof;
(b)by deleting the words “from the State and the States of Malaya” appearing in the proviso to subsection (2) thereof;
(c)by deleting subsection (4) thereof and substituting therefor the following: —
(4)  In the event of any person who has objected to an assessment made upon him —
(a)agreeing with the Comptroller as to the amount at which he is liable to be assessed, the assessment shall be amended accordingly, and notice of the tax payable shall be served upon such person; or
(b)failing to agree with the Comptroller as to the amount at which he is liable to be assessed, the Comptroller shall give him notice of refusal to amend the assessment as desired by that person and may revise the assessment to such amount as the Comptroller may determine, according to the best of his judgment, and the Comptroller shall give him notice of the revised assessment and of the tax payable together with notice of refusal to amend the revised assessment; and, wherever requisite, any reference in this Ordinance to an assessment or an additional assessment shall be construed as including a reference to an assessment or additional assessment as revised under this paragraph.”.
Amendment of section 79
46.  Subsection (5) of section 79 of the Ordinance is hereby amended by deleting the words “from the State and the States of Malaya” appearing therein.
Amendment of section 80
47.  Subsection (2) of section 80 of the Ordinance is hereby amended by deleting the words “from the State and the States of Malaya” appearing in the proviso thereto.
Amendment of section 86
48.  Section 86 of the Ordinance is hereby amended by deleting the proviso thereto and substituting therefor the following: —
Provided that the Comptroller may in his discretion extend the time limit within which payment is to be made.”.
Repeal and re-enactment of section 87
49.  Section 87 of the Ordinance is hereby repealed and the following substituted therefor: —
Recovery of tax from persons leaving Singapore
87.—(1)  Where the Comptroller is of the opinion that any person is about or likely to leave Singapore without paying all tax assessed upon him, he may issue a certificate containing particulars of such tax and a direction to the Commissioner of Police or the Controller of Immigration, or both, that such person be prevented from leaving Singapore without paying the tax or furnishing security to the satisfaction of the Comptroller for payment thereof.
(2)  Subject to the provisions of any order issued or made under any law for the time being in force relating to banishment or immigration the Commissioner of Police or the Controller of Immigration, or both, as the case may be, shall thereupon take, or cause to be taken by any police officer or immigration officer, such measures as may be necessary to prevent the person named in the direction from leaving Singapore until payment of the tax has been made or secured as aforesaid, including the use of such force as may be necessary and, if appropriate, the detention of any passport, certificate of identity or travel document and any exit permit or other document authorising such person to leave Singapore.
(3)  At the time of issue of the certificate, the Comptroller shall issue to such person a notification thereof by personal service or registered post; but the non-receipt thereof shall not invalidate any proceedings under this section.
(4)  Payment of the tax to an officer in charge of a police station or to an immigration officer or production of a certificate signed by the Comptroller, a Deputy Comptroller or an Assistant Comptroller stating that the tax has been paid or secured as aforesaid shall be sufficient authority for allowing such person to leave Singapore.
(5)  Any person who, knowing that a direction has been isued under this section for the prevention of his departure from Singapore, voluntarily leaves or attempts to leave Singapore without paying all tax assessed upon him or furnishing security to the satisfaction of the Comptroller for payment thereof shall be guilty of an offence under this Ordinance and may be arrested, without warrant, by any police officer or immigration officer.
(6)  No civil or criminal proceedings shall be instituted or maintained against the Government, the Commissioner of Police, the Controller of Immigration or any other police officer or immigration officer, in respect of anything lawfully done under the authority of this section.”.
Amendment of section 88
50.  Subsection (1) of section 88 of the Ordinance is hereby amended by deleting the expression “(3)” appearing in the first line thereof and substituting therefor the expression “(2)”.
Amendment of section 90
51.  Section 90 of the Ordinance is hereby amended —
(a)by deleting the word “Crown” appearing at the end of subsection (1) thereof and substituting therefor the word “Government”;
(b)by deleting the words “Comptroller-General of Customs and Excise” wherever they appear in subsection (4) thereof and substituting therefor in each case the words “Comptroller of Customs”;
(c)by deleting the expression “the Government of the Federation, the Government, the Comptroller-General of Customs and Excise” appearing in subsection (5) thereof and substituting therefor the expression “the Government, the Comptroller of Customs”; and
(d)by deleting subsection (6) thereof.
Amendment of section 93
52.  Subsection (2) of section 93 of the Ordinance is hereby amended by inserting the following proviso thereto: —
Provided that where any such repayment relates to the income of a married woman chargeable in the name of her husband, such married woman shall be entitled, on application, to have refunded to her any tax paid by her, by deduction or otherwise, in excess within the meaning of subsection (1) of this section, where the Comptroller is satisfied that repayment to such married woman is reasonable.”.
Amendment of section 94
53.  Subsection (3) of section 94 of the Ordinance is hereby amended by deleting the expression “subsection (1) or (2) of” appearing therein.
Amendment of section 96
54.  Subsection (1) of section 96 of the Ordinance is hereby amended by deleting the words “for which he is liable under this Ordinance for each year of assessment in respect of which an offence was committed” appearing in the nineteenth and subsequent lines thereof and substituting therefor the words “which has been undercharged in consequence of the offence or which would have been undercharged if the offence had not been detected”.
Repeal and re-enactment section 99
55.  Section 99 of the Ordinance is hereby repealed and the following substituted therefor: —
Sanction for prosecution
99.—(1)  No prosecution shall be commenced in respect of an offence under section 94, 95 or 96 except at the instance, or with the sanction, of the Comptroller or the Attorney General.
(2)  No prosecution shall be commenced in respect of an offence under section 6, 97 or 97A except at the instance, or with the sanction of the Attorney General.”.
Repeal of Part XV
56.  Part XV of the Ordinance is hereby repealed.
Amendment of section 106
57.  Section 106 of the Ordinance is hereby amended by deleting the words “Dewan Ra’ayat” wherever they appear therein and substituting therefor in each case the word “Parliament”.
Repeal and re-enactment of First Schedule
58.  The First Schedule to the Ordinance is hereby repealed and the following substituted therefor: —
FIRST SCHEDULE
(Section 13 (1) (e) ).
Exemptions
A. Public authorities, boards or funds constituted by statute in Singapore: —
1. Bankruptcy Estates Account.
 
(Cap. 11).
2. Bar Committee.
 
(Cap. 188).
3. Board of Architects.
 
(Cap. 189).
4. Central Midwives Board.
 
(Cap. 192).
5. Central Provident Fund.
 
(Cap. 150).
6. Common Fund.
 
(Cap. 32).
7. Dental Board.
 
(Cap. 197).
8. Economic Development Board.
 
(No. 21 of 1961).
9. Education Finance Board.
 
(No. 45 of 1957).
10. Hotels Licensing Board.
 
(No. 24 of 1954).
11. Housing and Development Board.
 
(No. 11 of 1959).
12. Light Dues Board.
 
(No. 6 of 1957).
13. Malayan Pineapple Industry Board and any Marketing Corporation established by the Board.
 
(No. 15 of 1957).
14. Malayan Rubber Export Registration Board.
 
(Cap. 183).
15. Medical Council.
 
(Cap. 191).
16. Minister for Finance.
 
(No. 28 of 1959).
17. Muslim and Hindu Endowments Board.
 
(Cap. 271).
18. National Theatre Trust.
 
(No. 61 of 1960).
19. Nursing Board.
 
(Cap. 194).
20. Pharmacy Board.
 
(Cap. 198).
21. Port of Singapore Authority.
 
(No. 36 of 1963).
22. Post Office Savings Bank.
 
(Cap. 106).
23. Public Utilities Board.
 
(No. 1 of 1963).
24. National Museum.
 
(No. 30 of 1957).
25. National Library.
 
(No. 31 of 1957).
26. Seafarers’ Welfare Board.
 
(No. 34 of 1956).
27. Seamen’s Lodging-Houses Licensing Authority.
 
(Cap. 207).
28. Singapore Mercantile Marine Fund.
 
(Cap. 207).
29. Singapore Society of Accountants.
 
(No. 14 of 1963).
30. Singapore Telephone Board.
 
(Cap. 107).
31. Tourist Promotion Board.
 
(No. 35 of 1963).
32. Victoria Memorial Hall.
 
(Cap. 257).
B. Clubs, corporations and institutions in Singapore: —
1. Anglican Bishop of Singapore.
 
(Cap. 292).
2. Catholic Young Men’s Association.
 
 
3. Chinese Young Men’s Christian Association.
 
 
4. Family Planning Association, Singapore.
 
 
5. Kwong Wai Shiu Free Hospital.
 
(Cap. 143).
6. People’s Association.
 
(No. 35 of 1960).
7. Po Leung Kuk Fund, Singapore (Administered by the Board of Visitors).
 
(G.N. No. S 217 of 1961).
8. Roman Catholic Archbishop of Singapore-Malacca.
 
(Cap. 314).
9. Singapore Asian Seamen’s Club.
 
(Cap. 319).
10. Singapore Sailors’ Institute.
 
(Cap. 321).
11. Young Men’s Christian Association.
 
 
12. Young Women’s Christian Association.
 
 
C. Authorities not incorporated in Singapore: —
1. Board of Commissioners of Currency, Malaya and British Borneo.”.
Repeal and re-enactment of Second Schedule
59.  The Second Schedule to the Ordinance is hereby repealed and the following substituted therefor: —
SECOND SCHEDULE
(Section 42).
Rates of Income Tax
Chargeable Income
 
 
 
Rate of Tax
 
 
$
 
 
For every dollar of the first
 
2,500
 
6%
For every dollar of the next
 
2,500
 
9%
For every dollar of the next
 
2,500
 
12%
For every dollar of the next
 
2,500
 
15%
For every dollar of the next
 
5,000
 
20%
For every dollar of the next
 
5,000
 
23%
For every dollar of the next
 
5,000
 
25%
For every dollar of the next
 
10,000
 
30%
For every dollar of the next
 
15,000
 
40%
For every dollar of the next
 
50,000
 
50%
For every dollar exceeding
 
100,000
 
55 %.
”.
Repeal and re-enactment of Fourth Schedule
60.  The Fourth Schedule to the Ordinance is hereby repealed and the following substituted therefor: —
FOURTH SCHEDULE
(Section 19A).
An “industrial enterprise” means a trade or business carried on in a mill, factory or similar premises which utilised plant and machinery in the manufacture of goods or materials or the subjection of goods and materials to any process but does not include —
(a)a transport, water or electricity undertaking; or
(b)a trade or business which consists in the storage of goods or materials, with or without subjection to any artificial temperature, except where such storage of goods or materials is necessary and ancillary to the manufacture of goods or materials or the subjection of goods or materials to any process; or
(c)a trade or business which consists in the working of a plantation; or
(d)a trade or business carried on by a pioneer enterprise which is exempt from tax under the provisions of the Pioneer Industries (Relief from Income Tax) Ordinance, 1959.”.
Miscellaneous amendments
61.  The following sections of the Ordinance are hereby amended by deleting the words “the Colony” wherever they appear therein and substituting therefor the word “Singapore”: —
Sections 5(3), 8(2), 10(1), 12(1), 12(2), 12(3), 12(4), 13(l) (n), 13(2), 13(3), 13(4), 14A(1), 15(i), 18(1)(v), 26(a), 26(b), 32(1), 39(2), 39(2)(e), 42, 43(b), 44(1), 45(1), 48(1), 48(2), 48(3), 48(5), 50(1), 50(2), 50(5)(b), 50(10), 53(1)(a), 53(6), 53(8), 55, 63(2), 68(4), 68(5), 68(6), 69, 71(1), 71(2), 90(4) and the Third Schedule (paragraph 12).