Clause 3

by inserting immediately after the word “Act” appearing at the end of subsection (4) thereof the expression “, except in the case of a balancing charge in respect of a Singapore ship the income derived from the operation of which would be income of a shipping enterprise within the meaning of section 13A of this Act”; and

by inserting immediately after subsection (5) thereof the following subsections: —“(6) For the purposes of paragraph (e) of subsection (1) of this section, the income derived from an annuity for any year shall be deemed to be an amount equal to three per cent of the total consideration payable or paid for the purchase of the annuity except that the whole amount of the annuity shall be deemed to be income if the person deriving income from the annuity has previously received sums equal to the total consideration for the annuity exclusive of the amounts deemed to be income under this subsection.(7) Where a person derives interest from a negotiable Certificate of Deposit or derives gains or profits from the sale thereof, his income shall be treated as follows: —

in the case of a financial institution the interest and the gains or profits shall be deemed to be income from a trade or business under paragraph (a) of subsection (1) of this section; and

in any other case the interest and the gains or profits shall be deemed to be income from interest under paragraph (d) of subsection (1) of this section subject to the following provisions: —

if the interest is received by a subsequent holder of a certificate of deposit the income derived from such interest shall exclude the amount by which the purchase price exceeds the issued price of the certificate, except where that amount has been excluded in the computation of any previous interest derived by him in respect of that certificate;

where a subsequent holder sells a certificate after receiving interest therefrom the gains or profits shall be deemed to be the amount by which the sale price exceeds the issued price or the purchase price whichever is the lower; and

for the purposes of paragraph (b) of this subsection, where a subsequent holder purchases a certificate at a price which is less than the issued price and holds the certificate until its maturity, the amount by which the issued price exceeds the purchase price shall be deemed to be interest derived by him.”.