Skills Development Levy (Amendment) Act 1996

REPUBLIC OF SINGAPORE

GOVERNMENT GAZETTE

ACTS SUPPLEMENT

Published by Authority

NO. 35]

Friday, October 25

[1996

The following Act was passed by Parliament on 1st October 1996 and assented to by the President on 16th October 1996:—

Skills Development Levy (Amendment) Act 1996

(No. 35 of 1996)

I assent.

ONG TENG CHEONG

President

16th October 1996.

Date of Commencement: 1st November 1996

An Act to amend the Skills Development Levy Act (Chapter 306 of the 1992 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 1996 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Amendment of section 3

2. Section 3(4) of the Skills Development Levy Act (referred to in this Act as the principal Act) is amended by deleting the word “Government” and substituting the word “Board”.

Amendment of section 6

3. Section 6 of the principal Act is amended by deleting subsection (2) and substituting the following subsection:

“(2) The Fund shall consist of —

(a)	the proceeds of the skills development levy collected under this Act;
(b)	all penalties, fines and costs recovered from proceedings under this Act;
(c)	all sums received for the composition of any offence under section 14;
(d)	all moneys contributed by the Government to the Fund under section 7 and such other contributions to the Fund as the Minister may specify from moneys provided by Parliament;
(e)	all donations and gifts accepted by the Board for the Fund;
(f)	all honorariums and other payments accepted by the Board for any services rendered by the Board in connection with the performance of its functions under this Act; and
(g)	any interest, dividends and other income derived from the investment of moneys in the Fund.”.

Amendment of section 8

4. Section 8 of the principal Act is amended —

(a)

by deleting the words “persons in employment” in subsections (1)(a) and (2)(a) and substituting in each case the words “persons preparing to join the workforce, persons in the workforce and persons rejoining the workforce”; and

(b)

by deleting paragraphs (c) and (d) of subsection (2) and substituting the following paragraphs:

“(c)	for defraying or subsidising the costs incurred by the Board or by any employer or training institution in the training or retraining of persons preparing to join the workforce, persons in the workforce and persons rejoining the workforce to acquire better skills or expertise; and
(d)	for such other purposes, not inconsistent with the objects of the Fund, as the Minister may approve.”.

Repeal and re-enactment of section 9

5. Section 9 of the principal Act is repealed and the following section substituted therefor:

“Transfer to Board of moneys in Fund and administration of Fund

9.—(1) Upon the commencement of the Skills Development Levy (Amendment) Act 1996, all moneys in and belonging to the Fund and all assets, interests, rights, privileges, liabilities and obligations of the Government relating to the Fund shall be transferred to and shall vest in the Board without further assurance.

(2) The Board shall administer the Fund in accordance with the provisions of this Act and shall collect the skills development levy and disburse grants and loans from the Fund for the purposes of this Act.

(3) 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.”.

Amendment of section 10

6. Section 10 of the principal Act is amended —

(a)	by deleting the words “, with the approval of the Minister,” in subsections (1) and (2);
(b)	by deleting the words “, not exceeding such percentage of the total amount of contributions as the Minister may direct,” in the second and third lines of subsection (3); and
(c)	by deleting subsection (5).

Repeal and re-enactment of section 11

7. Section 11 of the principal Act is repealed and the following section substituted therefor:

“Investment

11. The Board may invest the moneys belonging to the Fund and available for investment in accordance with the provisions of the Trustees Act [Cap. 337] as to the investment of trust funds or, with the approval of the Minister, in any other manner. ”.

Amendment of section 12

8. Section 12 of the principal Act is amended by deleting subsection (2).

New section 12A

9. The principal Act is amended by inserting, immediately after section 12, the following section:

“Offences by body corporate, etc.

12A. Where an offence under this Act or any regulations made thereunder has been committed by any body corporate, partnership, society or other unincorporated association of persons, any person who at the time of the commission of the offence was a director, manager, partner, secretary or other similar officer thereof, or was purporting to act in any such capacity shall be guilty of that offence unless he proves that —

(a)	the offence was committed without his consent or connivance; and
(b)	he had exercised all such diligence to prevent the commission of the offence as he ought to have exercised having regard to the nature of his functions in that capacity and to all the circumstances.”.

New sections 13A and 13B

10. The principal Act is amended by inserting, immediately after section 13, the following sections:

“Power to obtain information and call for returns

13A.—(1) The Board or any officer, employee or agent of the Board authorised by the Board in that behalf may by notice in writing require —

(a)

any person to furnish, within the time specified in the notice, any information that may be required by the Board or the officer, employee or agent of the Board (as the case may be) for the purpose of inquiring into or ascertaining —

(i)	the liability of such person or any other person to pay the levy, or whether the levy has been duly paid;
(ii)	the truth or correctness of any statement which has been made, or of any information which has been given, by a person who has applied to the Board for a grant or loan from the Fund; or
(iii)	whether any grant or loan from the Fund has been properly applied by the person to whom the grant or loan has been made; and

(b)

any employer, within the time specified in the notice, to complete and deliver to the Board or the officer, employee or agent of the Board (as the case may be) any return specified therein.

(2) The Board or any officer, employee or agent of the Board authorised by the Board in that behalf shall at all times have full and free access to all lands, buildings, places, books, documents and other papers for any of the purposes of this Act or any regulations made thereunder and may for any such purpose inspect, make copies of or extracts from such books, documents or papers or take possession of any such books, documents or papers if, in its or his opinion —

(a)	the inspection or copying of or extraction from such books, documents or papers cannot reasonably be performed without taking possession thereof;
(b)	the books, documents or papers may be interfered with or destroyed unless possession thereof is taken; or
(c)	the books, documents or papers may be required as evidence in any proceeding instituted or commenced for any of the purposes of, or in connection with, this Act or any regulations made thereunder.

Penalty for obstructing Board in carrying out its duties

13B. Any person who at any time hinders or obstructs the Board or any officer, employee or agent of the Board acting in the discharge of its or his duties under this Act or any regulations made thereunder shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 6 months or to both.”.

Amendment of section 14

11. Section 14 (1) of the principal Act is amended by deleting “$500” at the end thereof and substituting “$1,000”.

Repeal of section 16

12. Section 16 of the principal Act is repealed.

Repeal of sections 17 and 18 and re-enactment of section 17

13. Sections 17 and 18 of the principal Act are repealed and the following section substituted therefor:

“Financial provisions

17. The financial provisions set out in the First Schedule shall apply to the Board in relation to its administration of the Fund.”.

Repeal and re-enactment of section 22

14. Section 22 of the principal Act is repealed and the following section substituted therefor:

“Priority in case of bankruptcy or winding up

22.—(1) There shall be included among the debts which, under section 90 of the Bankruptcy Act [Cap. 20], are to be paid in priority to all other debts in the distribution of property of a bankrupt or a person dying insolvent the amount of any levy due from the bankrupt at the date of the bankruptcy order, or from the person so dying at the date of his death, and having become due within 12 months before that date.

(2) 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 the 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. ”.

Repeal and re-enactment of section 23

15. Section 23 of the principal Act is repealed and the following section substituted therefor:

“Regulations

23. The Board may, with the approval of the Minister, make such regulations as are necessary or expedient for carrying out the provisions of this Act and, in particular, such regulations may provide for all or any of the matters specified in the Second Schedule.”.

Repeal of Schedule and new First and Second Schedules

16. The Schedule to the principal Act is repealed and the following Schedules substituted therefor:

“FIRST SCHEDULE

Section 17

Financial Provisions

Financial year

1. The financial year in respect of the Fund shall begin on 1st April of each year and end on 31st March of the succeeding year.

Accounts to be kept

2. The Board shall keep proper accounts and records of its transactions involving the Fund and shall do all things necessary to ensure that all payments out of the Fund are correctly made and properly authorised and that adequate control is maintained over the moneys of the Fund and over the expenditure out of the Fund.

Financial statements

3. The Board shall, as soon as practicable after the close of each financial year, prepare and submit to the auditor the financial statements relating to the Fund in respect of that year.

Appointment of auditor

4.—(1) The accounts relating to the Fund 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].

Remuneration of auditor

5. The remuneration of the auditor shall be paid out of the Fund.

Duties of auditor

6.—(1) The auditor shall in his report state —

(a)	whether the financial statements show fairly the financial transactions and the state of affairs relating to the Fund;
(b)	whether proper accounting and other records have been kept in respect of all transactions involving the Fund;
(c)	whether receipts, expenditure and investment of moneys of the Fund and the acquisition of assets by the Board from the moneys of the Fund and the disposal of such assets during the financial year have been in accordance with the provisions of this Act; and
(d)	such other matters arising from the audit as he considers necessary.

(2) The auditor shall, as soon as practicable after the accounts relating to the Fund have been submitted for audit, send a report of his audit to the Board and shall also submit such periodical and special reports to the Minister and to the Board as may appear to him to be necessary or as the Minister or the Board may require.

Powers of auditor

7. 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 involving the Fund and may make copies of, or extracts from, any such accounting and other records.

Failure to furnish information to auditor

8.—(1) The auditor or any person authorised by him 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.

(2) Any person who fails, without reasonable excuse, to comply with any requirement of the auditor or authorised person under sub-paragraph (1) or who otherwise hinders, obstructs or delays the auditor in the performance of his duties or the exercise of his powers shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000.

Presentation of financial statements and auditor’s report to Parliament

9.—(1) The Board shall, as soon as the financial statements relating to the Fund have been audited in accordance with the provisions of this Act, send to the Minister a copy of the audited financial statements, signed by the chief executive of the Board, together with a copy of the auditor’s report.

(2) Where the Auditor-General is not the auditor of the Fund, a copy of the audited financial statements and any report made by the auditor shall be forwarded to the Auditor-General when 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 auditor’s report to be presented to Parliament.

Annual report

10.—(1) The Board shall, as soon as practicable after the end of each financial year, cause to be prepared and transmitted to the Minister a report dealing generally with its administration of the Fund during the preceding financial year and containing such information relating to the proceedings and policy of the Board in relation to its administration of the Fund as the Minister may, from time to time, direct.

(2) The Minister shall as soon as practicable cause a copy of every such report to be presented to Parliament.

(3) Notwithstanding sub-paragraph (1), the Minister may at any time request the Board to furnish him with any information concerning any matter relating to the administration of the Fund by the Board, 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.

SECOND SCHEDULE

Section 23

Matters in respect of which Board 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 refund of any levy paid in excess of the amount required by this Act and the forfeiture of any levy paid in excess which remains unclaimed within a stipulated time.

6. 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.

7. The remission of any levy.

8. 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.

9. 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.

10. The manner of the service of notices for the purposes of this Act.”.

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