Income Tax Act
(Chapter 134, Sections 7 and 14I(6))
Income Tax (Provisions by Banks) (Definition of Loan) Rules
R 6
G.N. No. S 399/1992

(1st April 1993)
[11th September 1992]
1.  These Rules may be cited as the Income Tax (Provisions by Banks) (Definition of Loan) Rules 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].
[G.N. No. S 399/1992]