Clause 34

by deleting subsections (12) and (12A) and substituting the following subsections:“(12) The trustee of a designated unit trust for a year of assessment may elect to apply this subsection to his income referred to in section 10(20)(a), (b) and (c) and (20A)(a) to (i) derived in the basis period or any part of the basis period for that year of assessment, and thereupon that income shall not form part of the trustee’s statutory income for that year of assessment.(12A) Subsection (12) only applies to income derived on or after 1st September 2014.(12B) An election under subsection (12) shall be made by submitting such form as the Comptroller may specify, together with the trustee’s return of income for the year of assessment in question, before the expiration of the time the return of income is to be delivered or within such extended time as the Comptroller may allow.(12C) An election under subsection (12) is irrevocable.”;

by deleting the words “in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by any designated unit trust or any approved CPF unit trust against any income derived by the unit trust” in subsection (13) and substituting the words “for any year of assessment in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by the trustee of a designated unit trust for that year of assessment in respect of the unit trust, against any income derived by the trustee in respect of the unit trust”;

by deleting the words “in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by any designated unit trust or approved CPF unit trust against any income derived by the unit trust” in subsection (13A) and substituting the words “for any year of assessment in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by the trustee of a designated unit trust for that year of assessment in respect of the unit trust, against any income derived by the trustee in respect of the unit trust”;

by deleting the words “subsections (12), (13) and (13A)” in subsection (14) and substituting the words “subsections (12), (13), (13A), (14A), (14B), (14C) and (14D)”;

by deleting the definition of “approved CPF unit trust” in subsection (14);

by deleting the definition of “designated” in subsection (14) and substituting the following definitions:“ “designated unit trust”, in relation to a year of assessment, means a trust that is —

a unit trust scheme or an exchange traded fund interest scheme, in which any moneys standing to the credit of a member of the Central Provident Fund in the Fund have been or may be invested, and which remains prescribed by the Minister for the purposes of this definition throughout the basis period for that year of assessment; or

a unit trust which satisfies all of the following conditions throughout the basis period for that year of assessment:

it is one of the following:

a collective investment scheme which is authorised under section 286 of the Securities and Futures Act (Cap. 289) and the units of which are offered to the public for subscription;

a collective investment scheme which was a former designated unit trust, is a restricted Singapore scheme within the meaning of section 13(16), and satisfies the conditions in subsection (14B); or

a collective investment scheme which was a former designated unit trust, is a collective investment scheme the units of which are offered only to institutional investors, and satisfies the conditions set out in subsection (14B);

it is neither a real estate investment trust within the meaning of section 43(10), nor a property trust that invests directly in immovable properties in Singapore;

the trustee of the unit trust is resident in Singapore;

the unit trust is managed in Singapore by a fund manager;“exchange traded fund interest scheme” means any scheme or arrangement which is made for the purpose, or having the effect, of providing facilities for the participation by persons as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of a portfolio of predetermined proportions, which constituent assets comprise securities listed for quotation on any stock exchange;“former designated unit trust” means a unit trust that, immediately before 21st February 2014, was a designated unit trust under this section in force immediately before that date;”;

by inserting, immediately after subsection (14), the following subsections:“(14A) For the purposes of paragraph (a) of the definition of “designated unit trust” in subsection (14), the Minister may prescribe, as designated unit trusts, descriptions of unit trust schemes and exchange traded fund interest schemes set out on a specified website of the Central Provident Fund Board, as amended from time to time.(14B) The conditions referred to in paragraph (b)(i)(B) and (C) of the definition of “designated unit trust” in subsection (14) are as follows:

no more than 50% of the units in the unit trust is beneficially held by related parties (within the meaning of section 13(16)) of the fund manager;

the unit holders have no control over the management of the property of the unit trust and have no right to be consulted or to give directions in respect of such management;

the unit holders have no control over any matter relating to distributions to be made out of the income of the unit trust;

no property was transferred (other than by way of a sale in accordance with market terms and conditions), directly or indirectly, to the trustee of the unit trust to be held as its property, by a company which has derived income from that property that is chargeable to tax under this Act; and

the investment strategy of the unit trust as of 20th February 2014 remains unchanged.(14C) Notwithstanding the definition of “designated unit trust” in subsection (14), a collective investment scheme (being a former designated unit trust) —

which is a restricted Singapore scheme within the meaning of section 13(16); or

the units of which are offered only to institutional investors,which fails to satisfy the conditions set out in subsection (14B) in any part of the basis period for a year of assessment shall not be treated as a designated unit trust for the year of assessment to which that basis period relates, or for any subsequent year of assessment even if all of the requirements in the definition of that term have been satisfied for that subsequent year of assessment.(14D) For the purposes of paragraphs (a) and (b) of the definition of “designated unit trust” in subsection (14), a reference to a condition being satisfied throughout the basis period for a year of assessment is, where the unit trust is dissolved at any time in the basis period, a reference to the condition being satisfied from the beginning of the basis period up to the date of the dissolution.”; and

by inserting, immediately after subsection (14D), the following subsections:“(14E) Subsections (12), (13) and (13A) shall not apply to a trust that is constituted on or after 1st April 2019.(14F) In the case of a trust that is constituted before 1st April 2019 —

that is not a designated unit trust (as defined in subsection (14)) for a year of assessment in respect of any basis period beginning on or after 1st April 2019; or

whose trustee did not make an election for subsection (12) to apply to his income for any basis period beginning on or after that date,subsections (12), (13) and (13A) shall not apply to that trust for the year of assessment to which that basis period relates and for every subsequent year of assessment.(14G) Subsection (14F) applies to the trust for a subsequent year of assessment even if all of the requirements in the definition of “designated unit trust” in subsection (14) have been satisfied for that year of assessment.(14H) In the case of a trust that is constituted before 1st April 2019 whose trustee did not make an election for subsection (12) to apply to his income for the basis period immediately preceding the basis period in which 1st April 2019 falls, subsections (12), (13) and (13A) shall not apply to that trust for the year of assessment to which the second-mentioned basis period relates and for every subsequent year of assessment.(14I) Subsection (14H) applies to the trust for the year of assessment to which the second‑mentioned basis period in that subsection relates or a subsequent year of assessment, even if all of the requirements in the definition of “designated unit trust” in subsection (14) have been satisfied for that year of assessment or that subsequent year of assessment.”.