| (a) | in determining the period during which securities have been held, the day of purchase shall be counted as one day, but the day of disposal shall be excluded; |
| (b) | in computing the gains or losses from the disposal of any securities, the securities purchased on an earlier date shall be deemed to have been disposed of first; |
| (c) | in determining the length of the period during which shares are held or the average unit cost of such shares, bonus shares or shares arising from a share split shall be deemed to have been acquired on the date of purchase of the original shares upon which the bonus shares or shares arising from a share split are based; and the cost in respect of each share after the bonus issue or share split shall be determined by dividing the cost of the original shares by the total number of the split shares, or in the case of the bonus issue, the total number of the original and bonus shares; |
| (d) | the cost of the shares on which entitlements to rights issues or options are based shall be reduced by any proceeds arising from the disposal of such entitlements or options; |
| (e) | where the proceeds arising from the disposal of entitlements to rights issues or options exceed the cost of the shares on which the entitlements or options are based, the amount of the excess chargeable or not chargeable to tax shall be determined by reference to the percentages specified in the Schedule applicable to the period during which those shares are held; |
| (f) | where shares are exchanged for any other shares, in circumstances other than those referred to in paragraph (g), the first-mentioned shares shall be deemed to have been disposed of on the date of acceptance by the approved investment company of the offer to exchange the shares; |
| (g) | where shares held by the approved investment company are compulsorily acquired in part for money and in part for shares or wholly for shares, in the take-over or reconstruction of a company to which those shares relate —| (i) | if the acquisition is wholly for shares, the cost of the new shares exchanged as consideration for the acquired shares shall be deemed to be the cost of the acquired shares; | | (ii) | if the acquisition is in part for shares and in part for money, the cost of the new shares shall be deemed to be the cost of the acquired shares reduced by the amount of the payment in money, and if the amount paid in money exceeds the cost of the acquired shares, the excess shall be chargeable or not chargeable to tax by reference to the percentages specified in the Schedule applicable to the period the acquired shares are held; | | (iii) | the acquired shares shall be deemed not to have been disposed of and the new shares exchanged for the acquired shares shall be deemed to have been acquired on the date of purchase of the acquired shares; |
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| (h) | in ascertaining the income of an approved investment company, any amount provided for the diminution in the value of securities or any amount written off against the value of securities before disposal shall not be deductible; |
| (i) | expenses, capital allowances, losses and donations attributable to gains or profits or losses derived outside Singapore from the disposal of securities shall only be deducted against any gains or profits or added to losses which are derived outside Singapore, and any balance shall not be available as a deduction against any other income; |
| (j) | gains or profits derived outside Singapore from the disposal of securities and remitted into Singapore shall be determined on the basis that gains or profits derived earlier are remitted before those which are derived later; |
| (k) | any reference to “shares” shall include stocks; |
| (l) | “capital allowances” means the allowances under sections 19, 19A, 20, 21, 22 and 23 of the Act. |
