Clause 19

by inserting, immediately after subsection (1), the following subsection:“(1A) Subsection (1)(a) shall, unless otherwise approved by the Minister or such person as he may appoint, not apply to any interest derived from any qualifying debt securities issued during the period from 10th May 1999 to 27th February 2003 where 50% or more of the issue of those securities is beneficially held or funded, directly or indirectly, at any time during the life of the issue by related parties of the issuer of those securities and where such interest is derived by —

any company which is a related party of the issuer of those securities; or

any company where the funds used by such company to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities.”;

by deleting subsection (2) and substituting the following subsection:“(2) Regulations made under subsection (1) may provide for exemption from tax of —

income derived by any financial institution from arranging, underwriting or distributing any qualifying debt securities; and

income derived by a primary dealer from trading in any Singapore Government securities during the period from 27th February 1999 to 27th February 2003,and for deduction of losses otherwise than in accordance with section 37(2).”;

by inserting, immediately after the words “commercial papers” in the definition of “debt securities” in subsection (3), the words “, treasury bills”; and

by deleting the definitions of “ “financial institution” and “qualifying debt securities” ” in subsection (3) and substituting the following definitions:“ “financial institution”, “qualifying debt securities” and “related party” have the same meanings as in section 13(2A);“primary dealer” means any financial institution specified in the First Schedule to the Government Securities Regulations (Cap. 121A, Rg 1);“Singapore Government securities” means debt securities issued under the Government Securities Act (Cap. 121A), the Local Treasury Bills Act (Cap. 167) or any other written law.”.