Clause 13

by inserting, immediately after subsection (4), the following subsection:“(4A) Where —

loans or securities are transferred by a bank or qualifying finance company (called in this subsection the transferor) to another person (called in this subsection the transferee);

the transfer is not pursuant to a scheme of amalgamation;

provision for doubtful debts arising from those loans, or for diminution in the value of investments in those securities, is also transferred by the transferor to the transferee; and

a deduction of an amount in respect of that provision was previously allowed under this section to the transferor,then —

in a case where both the transferor and the transferee are in the business of lending money on the date of the transfer, the deduction previously allowed to the transferor is treated, for the purposes of this section, as having been allowed to the transferee under this section; and

in any other case, the provision is treated as a trading receipt of the transferor for the basis period in which the date of transfer falls.”;

by inserting, immediately after subsection (6), the following subsection:“(6A) The provisions in this section apply, for such period as may be prescribed by rules made under section 7, to any allowance made by a bank or qualifying finance company for loans or securities as required by a notice or direction of the Monetary Authority of Singapore given under —

section 55 of the Banking Act (Cap. 19);

section 30 of the Finance Companies Act (Cap. 108); or

section 28(3) of the Monetary Authority of Singapore Act (Cap. 186),as they apply in relation to a provision for doubtful debts arising from loans, or for diminution in the value of investments in securities, of the bank or qualifying finance company.”; and

by inserting, immediately after the definition of “loan” in subsection (7), the following definition:“ “Monetary Authority of Singapore” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act;”.