Gains or profits of an approved unit trust
2.—(1)  This regulation shall apply for the purposes of ascertaining the chargeable income or the net amount of any gains or profits not chargeable to tax of an approved unit trust for the basis period for any year of assessment (referred to in this regulation as the relevant basis period).
(2)  The amount of any gains or profits, wherever derived, from —
(a)the disposal of securities and chargeable to tax shall be an amount equal to 10% of the total amount of such gains or profits;
(b)the disposal of securities and not chargeable to tax shall be an amount equal to 90% of the total amount of such gains or profits.
(3)  The amount of any loss, wherever arising, from the disposal of securities to be deductible —
(a)against gains or profits from the disposal of securities chargeable to tax shall be an amount equal to 10% of the total amount of such loss;
(b)against gains or profits from the disposal of securities not chargeable to tax shall be an amount equal to 90% of the total amount of such loss.
(4)  The Comptroller shall determine the manner and extent to which any losses are to be deducted.
(5)  There shall be allowed as a deduction in such manner and to such extent as the Comptroller shall determine, against gains or profits or added to losses from the disposal of securities determined under paragraph (2) or (3) —
(a)half of the expenses paid in respect of the management of investments in the relevant basis period to any person who is a resident of or has a permanent establishment in Singapore (referred to in this regulation as the management expenses); and
(b)any other expenses which are to be deducted.
(6)  The other half of the management expenses shall be available as a deduction against interest and dividends and the amount of the deduction shall be ascertained by the formula
where A
is the other half of the management expenses paid in respect of the relevant basis period;
B
is the total interest and dividends chargeable to tax in the relevant basis period;
C
is the total investment income (whether chargeable to tax or not) for the relevant basis period:
Provided that the amount allowed as a deduction under this paragraph for any year of assessment shall not exceed the total interest and dividends chargeable to tax in the relevant basis period.
(7)  Where the amount of any expenses or loss is in excess of the gains or profits chargeable or not chargeable to tax respectively, any such excess shall not be available as a deduction against any other income.
(8)  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.