Singapore legislation

Section 59

of Economic Expansion Incentives (Relief from Income Tax) Act

Section 59

Exemption of approved foreign loan interest from tax

Amended by1/951/95

(1)

Notwithstanding section 43(1)(b) of the Income Tax Act (Cap. 134), the Minister may, subject to subsection (2), if he is satisfied that it is expedient in the public interest to do so, by an endorsement to that effect on the approved foreign loan certificate, exempt from tax or authorise that tax at such concessionary rate as specified in the certificate be levied and paid upon any interest on an approved foreign loan payable to a foreign lender.

Amended by1/95

(2)

Where a company has contravened section 58 or any conditions imposed by the Minister under section 57(4), the amount which, but for subsection (1), would have been deductible by the company from the interest paid by it to the foreign lender under section 45 of the Income Tax Act shall be deemed to have been deducted from that interest and shall be a debt due from the company to the Government and be recoverable in the manner provided by section 89 of the Income Tax Act.

Amended by1/95

(3)

No action shall be taken by the Comptroller to recover any debt under subsection (2) without the prior sanction of the Minister.