Income Tax (Provisions by Banks) (Definition of Loan) Rules 1992

Status:

Published in Subsidiary Legislation Supplement
on 11 Sep 1992

No. S 399

Income Tax Act

(Chapter 134)

Income Tax (Provisions by Banks) (Definition of Loan) Rules 1992

In exercise of the powers conferred by sections 7 and 14I(6) of the Income Tax Act, the Minister for Finance hereby makes the following Rules:

Citation and commencement

1. These Rules may be cited as the Income Tax (Provisions by Banks) (Definition of Loan) Rules 1992 and shall have effect for the year of assessment 1992 and subsequent years of assessment.

Exclusion of certain advances from definition of loan

2. For the purposes of paragraph (e) of the definition of “loan” in section 14I(6) of the Act, “loan” means any loan or advance made or granted by a bank, including an overdraft, except for any advance made on the discounting or purchase of any bill of exchange which —

(a)	is denominated in Singapore dollars and accepted or endorsed by any bank in Singapore;
(b)	arises from a genuine trade transaction and is payable within 3 months of acceptance or endorsement; and
(c)	qualifies as a liquid asset under Notice to Banks MAS 613 issued by the Monetary Authority of Singapore pursuant to section 39 of the Banking Act [Cap. 19].

Made this 4th day of September 1992.

NGIAM TONG DOW

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF (R) R32.18.010 Vol. 2; AG/SL/56/89/11]

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