Clause 31

by deleting paragraphs (a) and (b) of subsection (2) and substituting the following paragraphs:“(a)the amount of loss incurred by that person in any trade, business, profession or vocation, which, if it had been a profit would have been assessable under this Act, in the following order:

firstly, any balance of such loss which remains unabsorbed at the end of the basis period for the previous year of assessment; and

secondly, the amount incurred during the basis period for the year of assessment;

an amount equivalent to twice the value, the value to be determined by the Minister, of an approved donation of artefact made by him in the year preceding the year of assessment to an approved museum; and for this purpose, “approved” means approved by the Minister or such person as he may appoint;”;

by deleting the words “in respect of gifts of money” in the 1st line of subsection (2)(c) and substituting the words “equivalent to twice the amount of any donation of money”;

by deleting the words “the value of any gift” in the 1st line of subsection (2)(d) and substituting the words “twice the value of any donation”;

by deleting paragraph (e) of subsection (2) and substituting the following paragraph:“(e)an amount equivalent to —

twice the value of any donation of shares in a company listed on the Singapore Exchange; or

twice the value of any donation of units in unit trusts traded in Singapore,made by an individual in the year preceding the year of assessment to any institution of a public character in Singapore approved by the Minister on the application by that institution.”;

by deleting the words “subsection (2)(a)” in the 1st line of subsection (2A) and substituting the words “subsection (2)(a)(i)”;

by deleting subsection (2B) and substituting the following subsections:“(2B) Where, in any year of assessment, the amount of loss incurred by any person during the year preceding the year of assessment is not fully deducted under subsection (2)(a)(ii), the balance of such loss, after deducting any amount of such loss transferred to a claimant company under section 37C, shall be available for deduction against his statutory income for subsequent year of assessment under subsection (2)(a)(i).(2C) The deduction allowed under subsection (2)(b), (c), (d) or (e) shall be reduced to an amount equivalent to the value of the donation if it is made by any of the following persons:

if the recipient of the donation is named after an individual and the donation is made while he is alive, by —

that individual;

any of his immediate family members; or

any company or organisation which is related to that individual;

if the recipient of the donation is set up by an individual and named after the family name of that individual and the donation is made while that individual or any of his siblings with the same family name is alive, by —

that individual or any of his immediate family members; or

any of his siblings with the same family name or any of the immediate family members of that sibling;

if the recipient of the donation is named after a company or an organisation, by —

that company or organisation, as the case may be; or

any person who is related to that company or organisation, as the case may be; and

if any facility of the recipient of the donation is named after a person and the donation is made by him within 2 years before, on or within 2 years after the date of the naming of the facility, by that person.(2D) A deduction under this section to any person in respect of any sum allowable under subsection (2)(b), (c), (d) or (e) or (2C) shall only be allowed against his statutory income after the deduction under subsection (2)(a).(2E) Subject to subsections (2D) and (5), the deduction to any person in respect of any sum allowable under subsection (2)(b), (c), (d) or (e) or (2C) shall be allowed as far as possible against his statutory income of the first year of assessment after the year in which the donation was made by him, and, so far as the deduction cannot be so allowed, after deducting any of such sum transferred to a claimant company under section 37C, then from his statutory income of the next year of assessment, and so on, except that any balance of the donation not deducted against his statutory income of the sixth year of assessment from the first year of assessment in which the donation was made shall be disregarded.(2F) For the purposes of subsections (2D) and (2E), any sum allowable under subsection (2)(b), (c), (d) or (e) or (2C) in respect of any donation made on an earlier date shall be deemed to have been deducted first.”;

by deleting subsection (5) and substituting the following subsection:“(5) Notwithstanding subsection (2), the amount of any loss incurred by a company in any trade or business or any sum allowable under subsection (2)(b), (c), (d) or (e) or (2C) to a company in respect of any donation shall be disregarded unless the Comptroller is satisfied that the shareholders of the company on the last day of the year in which the loss was incurred or the donation was made, as the case may be, were substantially the same as the shareholders of the company on the first day of the year of assessment in which such loss or donation would otherwise be deductible under subsection (2).”;

by inserting, immediately after the word “loss” in subsection (6), the words “or donation”;

by deleting subsection (8) and substituting the following subsections:“(8) The Minister or such person as he may appoint may, where there is a substantial change in the shareholders of a company and he is satisfied that such change is not for the purpose of deriving any tax benefit or obtaining any tax advantage, exempt that company from the provisions of subsection (5).(8A) Upon an exemption under subsection (8) —

any loss referred to in subsection (2)(a) incurred by a company may only be deducted against the profits from the same trade or business of the company in respect of which that loss was incurred; and

any balance of the donation referred to in subsection (2E) shall be allowed against the statutory income of the person of the year of assessment in which such donation would otherwise be deductible under that subsection.”;

by deleting the word “gift” wherever it appears in subsections (9)(c) and (10)(a), (b) and (c) and substituting in each case the word “donation”; and

by inserting, immediately after subsection (10), the following subsection:“(11) For the purposes of subsection (2C) —

“facility” includes any building or part thereof or permanent structure, and any scholarship, prize, research fellowship or lectureship;

“immediate family member”, in relation to an individual, means his spouse, children, parents, grandparents and siblings;

“sibling” means a brother or sister and includes a step-brother or step-sister, or a brother or sister adopted under any written law relating to adoption;

an individual shall be deemed to be related to a company or an organisation if he controls, directly or indirectly, the company or organisation, as the case may be; and

a company or an organisation shall be deemed to be related to another company or organisation, as the case may be, where one of them, directly or indirectly, has the ability to control the other or where both of them, directly or indirectly, are under the control of a common person.”.