Clause 7

by inserting, immediately after the word “shall” in the tenth line of subsection (2)(e), the words “, subject to subsection (6),”;

by deleting paragraph (ii) of the proviso to subsection (2)(e) and substituting the following paragraph:“(ii)no deduction shall be allowed in excess of $5,000 except that where the contributions recoverable under section 7(2) of the Central Provident Fund Act [Cap. 36] or the contributions made on or after 1st January 1989 to an approved pension or provident fund exceed $5,000, the excess contributions shall be allowed as a deduction;”;

by deleting the words “to a designated” in the second line of paragraph (vi) of the proviso to subsection (2)(e) and substituting the words “on or after 1st January 1989 to an approved”; and

by inserting, immediately after subsection (5), the following subsection:“(6) (a) Where in any year from 1st January 1989 an individual has made contributions to the Central Provident Fund in respect of additional wages paid to him in that year, no such deduction shall include any contributions in respect of that part of the additional wages which exceeds 40% of all ordinary wages paid to him in that year, except —

where all his ordinary wages paid in that year do not exceed $72,000 and his total wages paid in the same year do not exceed $100,000; or

where all his ordinary wages paid in that year do not exceed $72,000 but his total wages paid in the same year exceed $100,000, the contributions on that part of his total wages up to $100,000 shall be allowed as a deduction.(b)Where in any year from 1st January 1989 an individual is employed by two or more employers and the employers are related to each other within the meaning of section 10C(4), paragraph (a) shall apply with the necessary modifications, as if all the ordinary and additional wages from those related employers were paid by one employer.(c)Paragraphs (a) and (b) shall apply with the necessary modifications to contributions made by an individual to an approved pension or provident fund as if those contributions were contributions made to the Central Provident Fund:Provided that sub-paragraphs (i) and (ii) of paragraph (a) shall only apply to an approved pension or provident fund designated by the Minister for this purpose.(d)Where in any year from 1st January 1989 an individual has made contributions to the Central Provident Fund or to a pension or provident fund designated under paragraph (c), in addition to any other approved pension or provident fund, no deduction shall be allowed in respect of the whole of the contributions made to that approved pension or provident fund.(e)In this subsection —“additional wages” has the same meaning as in the Central Provident Fund Act [Cap. 36];“ordinary wages” has the same meaning as “ordinary wages for the month” in the Central Provident Fund Act;“total wages”, in relation to any year, means the total of the ordinary and additional wages in that year received by an employee;“year” means any year from 1st January to 31st December.”.