Income Tax (Amendment) Bill

Bill No. 8/1975

Read the first time on 25th February 1975.

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, 1975.

(2) Sections 3(a), 4, 6, 7 and 8 of this Act shall have effect for the year of assessment 1974 and subsequent years of assessment.

(3) Sections 3(b), 5 and 18 of this Act shall have effect for the year of assessment 1975 and subsequent years of assessment.

Amendment of section 6

2. Section 6 of the Income Tax Act (hereinafter in this Act referred to as “the principal Act”) is hereby amended by inserting immediately after subsection (9) thereof the following subsection: —

“(10) Notwithstanding anything contained in this section, the Comptroller may lay a complaint of professional misconduct against any person in his professional dealings, whether before or after the commencement of this subsection, with the Comptroller to the appropriate authority empowered to take disciplinary action against such person and may in connection with such complaint furnish any relevant documents or information.”.

Amendment of section 10

3. Section 10 of the principal Act is hereby amended —

(a)

by inserting immediately after the word “Act” appearing at the end of subsection (4) thereof the expression “, except in the case of a balancing charge in respect of a Singapore ship the income derived from the operation of which would be income of a shipping enterprise within the meaning of section 13A of this Act”; and

(b)

by inserting immediately after subsection (5) thereof the following subsections: —

“(6) For the purposes of paragraph (e) of subsection (1) of this section, the income derived from an annuity for any year shall be deemed to be an amount equal to three per cent of the total consideration payable or paid for the purchase of the annuity except that the whole amount of the annuity shall be deemed to be income if the person deriving income from the annuity has previously received sums equal to the total consideration for the annuity exclusive of the amounts deemed to be income under this subsection.

(7) Where a person derives interest from a negotiable Certificate of Deposit or derives gains or profits from the sale thereof, his income shall be treated as follows: —

(a)

in the case of a financial institution the interest and the gains or profits shall be deemed to be income from a trade or business under paragraph (a) of subsection (1) of this section; and

(b)

in any other case the interest and the gains or profits shall be deemed to be income from interest under paragraph (d) of subsection (1) of this section subject to the following provisions: —

(i)	if the interest is received by a subsequent holder of a certificate of deposit the income derived from such interest shall exclude the amount by which the purchase price exceeds the issued price of the certificate, except where that amount has been excluded in the computation of any previous interest derived by him in respect of that certificate;
(ii)	where a subsequent holder sells a certificate after receiving interest therefrom the gains or profits shall be deemed to be the amount by which the sale price exceeds the issued price or the purchase price whichever is the lower; and

(c)

for the purposes of paragraph (b) of this subsection, where a subsequent holder purchases a certificate at a price which is less than the issued price and holds the certificate until its maturity, the amount by which the issued price exceeds the purchase price shall be deemed to be interest derived by him.”.

Amendment of section 13

4. Section 13 of the principal Act is hereby amended —

(a)

by deleting the full-stop appearing at the end of paragraph (v) of subsection (1) thereof and substituting therefor a semi-colon and by inserting immediately thereafter the following paragraph: —

“(w)	the income derived from an employment exercised on board a Singapore ship, as defined in the Merchant Shipping Act (Cap. 172), if the employment is exercised substantially outside Singapore.”; and

(b)

by deleting subsection (4) thereof and substituting therefor the following: —

“Income derived by short term visiting employees

(4) There shall be exempt from tax any income accruing in or derived from Singapore in respect of gains or profits from any employment exercised in Singapore for not more than sixty days in the year preceding any year of assessment by a person who is not resident in Singapore in that year of assessment:

Provided that this subsection shall not apply to —

(a)	the emoluments received by a director of a company; or
(b)	the gains or profits of public entertainers, as defined in section 40B of this Act, whose visits are not substantially supported from public funds of the government of another country.”.

Amendment of section 13A

5. Section 13A of the principal Act is hereby amended —

(a)

by deleting the colon appearing at the end of the first proviso to subsection (2) thereof and substituting therefor a full-stop;

(b)

by deleting the second proviso to subsection (2) thereof;

(c)

by deleting subsection (3) thereof and substituting therefor the following: —

“(3) In determining the income of a shipping enterprise —

(a)	the capital allowances provided under sections 16, 17, 18, 19, 20, 21 and 22 of this Act shall only be made against the income exempt under the provisions of this section, and the balance of such allowances shall not be available as a deduction against any other income;
(b)	a loss incurred by a shipping enterprise in respect of the operation of a Singapore ship for any year shall only be deducted against the income exempt under the provisions of this section, and the balance of such loss shall not be available as a deduction against any other income.”; and

(d)

by inserting immediately after subsection (11) thereof the following subsections: —

“(12) Where in the basis period for any year of assessment a ship ceases to be a Singapore ship the income derived from the operation of which is exempt under this section, the capital allowances in respect of that ship for that year of assessment and subsequent years shall be calculated on the residue of expenditure or reducing value of the assets after taking into account the capital allowances provided for in sections 16, 17, 18, 19, 20, 21 and 22 of this Act for those years of assessment during which income derived from the operation of the ship was exempt from tax notwithstanding that no claim for such allowances was made.

(13) Subsections (3) and (12) of this section shall have effect notwithstanding any other provisions of this Act.”.

New section 14B

6. The principal Act is hereby amended by inserting immediately after section 14A thereof the following section: —

“Further deduction for export of locally manufactured goods

14B.—(1) Where the Comptroller is satisfied that expenses have been incurred on or after 1st April, 1973, by a manufacturer resident in or having a permanent establishment in Singapore in establishing, maintaining or otherwise participating in an approved overseas trade fair, exhibition or trade mission for the purpose of promoting the export of goods manufactured in Singapore, there shall be allowed a further deduction of such expenses in addition to the deduction allowed under section 14 of this Act.

(2) No deduction shall be allowed under this section in respect of —

(a)	any expenses which are not allowed as deductions under section 14 of this Act;
(b)	travelling, accommodation and subsistance expenses or allowances for more than two employees taking part in the approved trade fair, exhibition or trade mission;
(c)	any expenses incurred by an export enterprise under Part IV of the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 135).

(3) For the purposes of this section “approved”, in relation to an overseas trade fair, exhibition or trade mission, means approved by the Minister or such person as he may appoint for this purpose.”.

Amendment of section 19A

7. Section 19A of the principal Act is hereby amended by deleting subsection (1) thereof and the marginal note thereto and substituting therefor the following: —

“Special allowances for prescribed plant and machinery and anti-pollution equipment

19A.—(1) Notwithstanding the provisions of section 19 of this Act where a person proves to the satisfaction of the Comptroller that —

(a)	he is carrying on an industrial enterprise as defined in subsection (5) of this section; or
(b)	he has installed any equipment or device for the purpose of preventing, controlling or reducing air pollution or water pollution,

he shall in lieu of the allowances provided by section 19 of this Act be entitled for a period of three years to an annual allowance of thirty-three and one-third per cent in respect of the capital expenditure incurred —

(i)	on or after 1st January, 1965 on the provision of machinery or plant for the purposes of that industrial enterprise; and
(ii)	on or after 1st January, 1973 on the provision of that equipment or device.”.

Amendment of section 39

8. Section 39 of the principal Act is hereby amended —

(a)

by deleting the comma appearing at the end of paragraph (d)(iii) of subsection (2) thereof and substituting therefor the expression “; or” and by inserting immediately thereafter the following sub-paragraph: —

“(iv)

incapacitated from maintaining himself by reason of physical or mental infirmity,”; and

(b)

by deleting the full-stop appearing at the end of paragraph (e) of subsection (2) thereof and substituting therefor a semi-colon and by inserting immediately thereafter the following paragraph: —

“(f)

maintained any dependant living with him in the same household —

(i)	who was his or his spouse’s parent, grandparent or great-grandparent;
(ii)	who was not less than fifty-five years of age or who was otherwise incapacitated from maintaining himself by reason of physical or mental infirmity;
(iii)	whose income was not more than seven hundred and fifty dollars in that year; and
(iv)	in respect of whom no deduction has been claimed by another person under paragraph (a) of this subsection,

there shall be allowed in respect of each such dependant a deduction of 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:

Provided that a deduction under this paragraph in respect of any one dependant shall be allowed to one person only and no person may obtain a deduction under this paragraph for more than two dependants.”.

Amendment to section 40

9. Section 40 of the principal Act is hereby amended by deleting the expression “proviso (i) to paragraph (d) of subsection (2) thereof” appearing in the ninth and tenth lines of subsection (1) thereof and substituting therefor the expression “paragraph (4) of the Fifth Schedule to this Act”.

Amendment to section 63

10. Section 63 of the principal Act is hereby amended —

(a)

by inserting immediately after the word “Act” appearing at the end of subsection (1) thereof the expression “, and in the case of a married woman for which her husband is chargeable under this Act”;

(b)

by inserting immediately after subsection (1) thereof the following subsection: —

“(1A) For the purposes of subsection (1) of this section the Comptroller may require a married woman who has not furnished a separate return of her income to verify the return furnished by her husband in so far as it relates to her income and to sign such return.”; and

(c)

by inserting immediately after subsection (2) thereof the following subsection: —

“(2A) Subsection (2) of this section shall apply to a married woman in respect of any income derived by her for which her husband is chargeable.”.

New section 65C

11. The principal Act is hereby amended by inserting immediately after section 65B thereof the following section: —

“Failure to comply with notices issued by Comptroller

65C. Any person who fails or neglects without reasonable excuse to comply with any notice issued by the Comptroller under section 64, 65, 65A or 65B of this Act shall be guilty of an offence against this Act.”.

Amendment of section 93

12. Section 93 of the principal Act is hereby amended by deleting the word “reduction” appearing in the third line of subsection (1) thereof and substituting therefor the word “deduction”.

Amendment of section 94

13. Section 94 of the principal Act is hereby amended by inserting immediately after subsection (2) thereof the following subsection: —

“(2A) Where any person has been convicted of an offence for failing to comply with section 63 or 65C of this Act and such conviction is a second or subsequent conviction for the same year of assessment, he shall be liable to a further penalty of fifty dollars for every day during which the offence is continued after such conviction.”.

Amendment of section 95

14. Section 95 of the principal Act is hereby amended by deleting the words “of not less than six months and” appearing in the fifteenth and sixteenth lines of subsection (2) thereof.

Amendment of section 96

15. Section 96 of the principal Act is hereby amended —

(a)

by deleting the words “of not less than six months and” appearing in the twenty-fourth and twenty-fifth lines of subsection (1) thereof; and

(b)

by deleting the full-stop appearing at the end of subsection (1) thereof and substituting therefor a colon and by inserting immediately thereafter the following proviso: —

“Provided that where an individual has been convicted for three or more offences under this section the imprisonment he shall be liable to shall not be less than six months.”.

New section 101

16. The principal Act is hereby amended by inserting immediately after section 100A thereof the following section: —

“Jurisdiction of District and Magistrate’s Courts

101. Notwithstanding anything to the contrary contained in the Criminal Procedure Code, a District Court or Magistrate’s Court shall have jurisdiction to try any offence under this Act (Cap. 113) and to impose the full penalty or punishment in respect of any such offence.”.

Amendment of section 106

17. Section 106 of the principal Act is hereby amended by inserting immediately after subsection (2) thereof the following subsection: —

“(3) The Minister may, by order published in the Gazette, amend, add to or revoke the whole or any part of the First, Third and Fourth Schedules to this Act.”.

Amendment of Fifth Schedule

18. The Fifth Schedule to the principal Act is hereby amended by deleting paragraph 4 thereof and substituting therefor the following: —

“4. Where the Comptroller is satisfied that —

(a)

any unmarried child —

(i)	was receiving full-time instruction in a university or equivalent institution outside Singapore after being unable to gain admission to a similar institution in Singapore; or
(ii)	was pursuing a course of study not available on a full-time basis in Singapore; and

(b)

a sum exceeding the appropriate deduction was, during the year preceding the year of assessment, expended by an individual directly on the maintenance or education of such child,

the allowable deduction shall be a sum equal to the total amount so expended but not exceeding double the amount of the appropriate deduction as provided for under paragraph (1) or (2) of this Schedule as the case may be.”.

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