Clause 5

by deleting paragraph (a) of subsection (1) and substituting the following paragraph:“(a)subject to subsection (2B) and the prescribed conditions, the interest derived from —

any qualifying debt securities issued during the period from 28th February 1998 to 27th February 2003 by any person who is not resident in Singapore and who does not have any permanent establishment in Singapore; and

any qualifying debt securities issued during the period from 27th February 1999 to 27th February 2003 by any person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire the qualifying debt securities are not obtained from the operation;”;

by inserting, immediately after the word “section,” in the 8th line of subsection (1)(o), the words “an approved floating production storage offloading ship or an approved floating storage offloading ship,”;

by deleting the words “or 43C” in subsection (1)(y) and substituting the words “, 43C, 43E or 43N”;

by inserting, immediately before the definition of “financial institution” in subsection (2A), the following definitions:“ “approved bond intermediary” means a financial institution approved as such by the Minister or such person as he may appoint;“debt securities” has the same meaning as in section 43N;”;

by deleting the definition of “qualifying debt securities” in subsection (2A) and substituting the following definitions:“ “qualifying debt securities” means —

Singapore Government securities issued during the period from 28th February 1998 to 27th February 2003;

bonds, notes, commercial papers and certificates of deposits which are arranged in accordance with regulations made for this purpose —

by any financial institution in Singapore and issued during the period from 28th February 1998 to 27th February 2003; or

by any approved bond intermediary and issued during the period from 27th February 1999 to 27th February 2003,but, unless otherwise approved by the Minister or such person as he may appoint, excludes any debt securities issued on or after 10th May 1999 which, during its primary launch —

are issued to less than 4 persons; and

50% or more of the issue of debt securities is beneficially held or funded, directly or indirectly, by related parties of the issuer of those securities;“related party”, in relation to a person, means any other person who, directly or indirectly, controls that person, or is controlled, directly or indirectly, by that person, or where he and that other person, directly or indirectly, are under the control of a common person;“Singapore Government securities” has the same meaning as in section 43N.”; and

by inserting, immediately after subsection (2A), the following subsection:“(2B) 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 related party of the issuer of those securities; or

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