Singapore legislation
Clause 38
of Economic Expansion Incentives (Relief from Income Tax) Bill
Clause 38
Exemption of approved foreign loan interest from tax
(1)
Subject to subsection (3) of this section the interest on an approved foreign loan payable to a foreign lender shall be exempt from tax where it is proved to the satisfaction of the Comptroller that such exemption does not result in an increase in liability to tax by the foreign lender in his country of residence.
(2)
Where such exemption applies the company concerned upon paying such interest shall not deduct therefrom the tax which would otherwise have been deductible under section 45 of the Income Tax Ordinance (Cap. 166) but shall forthwith submit a statement to the Comptroller of the amount which would otherwise have been deductible by such company under that section.
(3)
Where a company has contravened section 37 of this Act or any conditions imposed by the Minister under subsection (4) of section 36 of this Act, the amount which, but for subsection (2) of this section, would have been deductible by such company from the interest paid by it to the foreign lender under section 45 of the Income Tax Ordinance shall be deemed to have been deducted from such interest and shall be a debt due from such company to the Government and be recoverable in the manner provided by section 90 of the Income Tax Ordinance.
(4)
No action shall be taken by the Comptroller to recover any debt under subsection (3) of this section without the prior sanction of the Minister.