Singapore legislation
Clause 20
Clause 20
Amendment of section 19
Section 19 of the principal Act is amended by inserting, immediately after subsection (9), the following subsections:“(10) This section applies to a person carrying on any trade or business who appropriates any trading stock of that trade or business for use as machinery or plant for the purpose of any of the person’s trades, professions or businesses in circumstances that give rise to a reasonable inference that the appropriation is permanent, subject to the following modifications:
a reference to the capital expenditure incurred on the provision of machinery or plant is to the open market value of the trading stock as at the date of the appropriation;
the capital expenditure is treated as having been incurred on the date of the appropriation of the trading stock.(11) In subsection (10), “open market value” and “trading stock” have the meanings given by section 10P(9).”.