Economic Expansion Incentives (Relief from Income Tax) Bill

This Act may be cited as the Economic Expansion Incentives (Relief from Income Tax) Act, 1967, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

The provisions of Parts III, IV, V and VI of this Act shall apply in respect of the year of assessment 1967 and subsequent years of assessment.

In this Act, unless the context otherwise requires —

“approved foreign loan” means a loan which is certified under section 36 of this Act to be an approved foreign loan;

“approved product” means a product declared under section 16 of this Act to be an approved product;

“approved royalties, fees or contributions” means royalties, technical assistance fees or contributions to research and development costs which have been certified under section 40 of this Act to be approved royalties, fees or contributions;

“company” means any company incorporated or registered in accordance with the provisions of any written law relating to companies;

“Comptroller” means the Comptroller of Income Tax appointed under the Income Tax Ordinance;

“expanding enterprise” means any company which has been approved by the Minister and to which an expansion certificate has been issued under section 17 of this Act;

“expansion certificate” means an expansion certificate issued under section 17 of this Act;

“expansion day”, in relation to an expanding enterprise, means the day specified in its expansion certificate under subsection (4) or (5) of section 17 of this Act;

“export enterprise” means any company which has been approved by the Minister and to which an export enterprise certificate has been issued under section 21 of this Act;

“export enterprise certificate” means an export enterprise certificate issued under section 21 of this Act;

“export produce” means the produce of deep-sea fisheries, including fresh or frozen fish, approved under section 20 of this Act as an export produce;

“export product” means a product approved under section 20 of this Act as an export product;

“export year” means the year specified in the export enterprise certificate under subsection (3) of section 21 or section 22 of this Act;

“foreign loan certificate” means a foreign loan certificate issued under section 36 of this Act;

“new trade or business” means the trade or business of a pioneer enterprise deemed under section 7 of this Act to have been set up and commenced on the day following the end of its tax relief period;

“old trade or business” means the trade or business of a pioneer enterprise carried on by it during its tax relief period in accordance with section 7 of this Act, and which either ceases within or is deemed, under the said section, to cease at the end of that period;

“pioneer certificate” means a pioneer certificate issued under section 5 of this Act;

“pioneer enterprise” means any company which has been approved by the Minister and to which a pioneer certificate has been issued under section 5 of this Act;

“pioneer industry” means an industry declared under section 4 of this Act to be a pioneer industry;

“pioneer product” means a product declared under section 4 of this Act to be a pioneer product;

“production day”, in relation to a pioneer enterprise, means the day specified in its pioneer certificate under subsection (3) or (4) of section 5 of this Act;

“productive equipment” means machinery or plant which would normally qualify for deduction under the provisions of sections 19, 19A, 20, 21 and 22 of the Income Tax Ordinance (Cap. 166);

“royalties, fees or contributions certificate” means a certificate issued under section 40 of this Act;

“royalties or technical assistance fees” includes —

“tax” means income tax imposed by the Income Tax Ordinance (Cap. 166).

The expressions “officer of customs” and “senior officer of customs” shall have the same meanings as those expressions bear under the Customs Ordinance, 1960 (Ord. 44 of 1960).

Where a company engaged in any industry is desirous of raising a loan of not less than two hundred thousand dollars from a non-resident person (hereinafter in this Part referred to as the “foreign lender”) by means of a financial agreement whereby credit facilities are granted for the purchase of productive equipment for the purposes of its trade or business, such company may apply to the Minister for a certificate certifying such foreign loan to be an approved foreign loan:Provided that the Minister may, where he thinks it expedient to do so, consider an application for a foreign loan certificate in respect of a foreign loan of less than two hundred thousand dollars.

The application shall be in such form and with such particulars as may be prescribed, and shall be accompanied by a copy of such financial agreement.

Where the Minister is satisfied as to the bona fides of such application and that it is expedient in the public interest to do so, he may issue a certificate certifying the loan specified in such application as an approved foreign loan.

Every certificate issued under subsection (3) of this section shall be in such form and contain such particulars as may be prescribed, and shall be subject to such conditions as the Minister thinks fit.

Subject to subsection (3) of this section the interest on an approved foreign loan payable to a foreign lender shall be exempt from tax where it is proved to the satisfaction of the Comptroller that such exemption does not result in an increase in liability to tax by the foreign lender in his country of residence.

Where such exemption applies the company concerned upon paying such interest shall not deduct therefrom the tax which would otherwise have been deductible under section 45 of the Income Tax Ordinance (Cap. 166) but shall forthwith submit a statement to the Comptroller of the amount which would otherwise have been deductible by such company under that section.

Where a company has contravened section 37 of this Act or any conditions imposed by the Minister under subsection (4) of section 36 of this Act, the amount which, but for subsection (2) of this section, would have been deductible by such company from the interest paid by it to the foreign lender under section 45 of the Income Tax Ordinance shall be deemed to have been deducted from such interest and shall be a debt due from such company to the Government and be recoverable in the manner provided by section 90 of the Income Tax Ordinance.

No action shall be taken by the Comptroller to recover any debt under subsection (3) of this section without the prior sanction of the Minister.

Subject to subsection (2) of this section, section 38 of this Act shall apply to any additional interest payable on an approved foreign loan by reason of any arrangement whereby the period within which such loan must be repaid in full has been extended:Provided that the rate of interest payable in respect of any such extended period shall not, without the prior sanction of the Minister, be higher than the rate of interest specified in the certificate relating to the approved foreign loan.

Any company making any such arrangement shall give notice thereof in writing to the Minister within thirty days from the date on which such arrangement has been made.

Subject to subsection (2) of this section, the Minister may, if he considers it expedient in the public interest to do so, by order declare an industry, which is not being carried on in Singapore on a scale adequate to the economic needs of Singapore and for which in his opinion there are favourable prospects for development, to be a pioneer industry and any specific product of such industry to be a pioneer product.

Before making any order under subsection (1) of this section, the Minister shall —

The Minister may, if he considers it necessary, call for further particulars of the grounds of any such objection from any person who has given due notice of such objection.

The Minister may revoke any order made under this section but any such revocation shall not affect the operation of any pioneer certificate issued to any pioneer enterprise before such revocation.

Any company which is desirous of producing a pioneer product may make an application in writing to the Minister to be approved as a pioneer enterprise in such form and with such particulars as may be prescribed.

Where the Minister is satisfied that it is expedient in the public interest to do so and in particular having regard to the production or anticipated production of the pioneer product from all sources of production in Singapore, he may approve such company as a pioneer enterprise and issue a pioneer certificate to such company, subject to such conditions as he thinks fit.

Every pioneer certificate issued under this section shall specify —

The Minister may in his discretion, upon the application of any pioneer enterprise, amend its pioneer certificate by substituting for the production day specified therein such earlier or later date as he thinks fit and thereupon the provisions of this Act shall have effect as if the date so substituted were the production day in relation to such pioneer enterprise.

The tax relief period of a pioneer enterprise shall commence on its production day and shall, subject to subsection (2) of this section, continue for a period of —

The Minister may direct the extension of the tax relief period of a pioneer enterprise —

For the purposes of this section, in relation to a pioneer enterprise, “fixed capital expenditure” means capital expenditure incurred by the pioneer enterprise on its factory in Singapore, and on any plant or machinery used in Singapore in connection with its pioneer product.

For the purpose of obtaining a direction under subsection (2) of this section —

Upon receipt of any such application, the Minister may call for such further particulars as he considers necessary, and shall either make the direction in accordance with subsection (2) of this section or shall cause a notice of refusal to make such direction to be sent to the applicant.

During its tax relief period, a pioneer enterprise shall not carry on any trade or business other than the trade or business relating to the relevant pioneer product, unless the Minister has given his permission in writing therefor.

Where the carrying on of a separate trade or business has been permitted under subsection (1) of this section, separate accounts shall be maintained in respect of that trade or business and in respect of the same accounting period.

Where the carrying on of a separate trade or business has been permitted under subsection (1) of this section, and an industrial building, plant or machinery is used both for the purposes of that trade or business and the trade or business relating to the relevant pioneer product, section 10 of this Act shall apply to such building, plant or machinery.

Where the carrying on of such separate trade results in a loss in any accounting period, such loss shall be brought into the computation of the income of the pioneer enterprise for such period.

Where the carrying on of such separate trade results in a profit in any accounting period, and such profit, computed in accordance with the provisions of the Income Tax Ordinance (Cap. 166) as modified by this section, amounts to less than five per centum of the full sum receivable for the sale of goods or the provision of services, the statutory income from such source shall be deemed to be five per centum of the full sum so receivable and the income of the pioneer enterprise shall be abated accordingly.

Where in the opinion of the Comptroller the carrying on of such separate trade is subordinate and incidental to the carrying on of the trade or business relating to the relevant pioneer product the income or loss arising from such activities shall be deemed to form part of the income or loss of the pioneer enterprise.

For the purposes of this section “relevant pioneer product” means the pioneer product specified in its pioneer certificate.

The income of a pioneer enterprise in respect of its old trade or business, falling to be ascertained in accordance with the provisions of the Income Tax Ordinance (Cap. 166) for any accounting period, shall be so ascertained (after making any necessary adjustments in consequence of a direction under section 9 of this Act) without making any deductions which might otherwise fall to be made under any of the provisions contained in sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Ordinance.

Notwithstanding subsection (1) of this section, where an asset is used for the purposes of the new trade or business of a pioneer enterprise, any capital expenditure incurred by the pioneer enterprise in respect of such asset within its tax relief period shall, for the purposes of sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Ordinance, be deemed to have been incurred on the day immediately following the last day of its tax relief period:Provided that where a pioneer enterprise is the holder of two pioneer certificates in respect of different periods of time and capital expenditure has been incurred in respect of any industrial building, plant or machinery which is jointly used in carrying on the trade or business of the two pioneer industries, no deduction shall be made in respect of such expenditure under any of the provisions contained in sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Ordinance until after the expiration of the tax relief period which is later in time.

The income for each accounting period of a pioneer enterprise in respect of its old trade or business shall be computed in accordance with the provisions of the Income Tax Ordinance and the foregoing provisions of this Act.

For each such accounting period the Comptroller shall issue to the pioneer enterprise a statement showing the amount of such income for that accounting period and Parts XI and XII of the Income Tax Ordinance (relating to objections and appeals), and of any rules made thereunder, shall apply, mutatis mutandis, as if such statement were a notice of assessment given under those provisions.

As soon as any amount of income of a pioneer enterprise has become exempted under section 13 of this Act, such amount shall be credited to an account to be kept by the pioneer enterprise for the purposes of this section.

Where such account is in credit at the date on which any dividends are paid by the pioneer enterprise out of income which has been exempted, an amount equal to such dividends or to such credit, whichever is the less, shall be debited to such account.

So much of the amount of any dividends so debited to such account as are received by a shareholder in the pioneer enterprise shall, if the Comptroller is satisfied with the entries in such account, be exempt from tax, in the hands of such shareholder.

Any dividends debited to such account shall be treated as having been distributed to the shareholders of the pioneer enterprise or any particular class of such shareholders in the same proportions as such shareholders were entitled to payment of the dividends giving rise to the debit.

The pioneer enterprise shall deliver to the Comptroller a copy of such account, made up to a date specified by him, whenever called upon to do so by notice in writing sent by him to its registered office, until such time as he is satisfied that there is no further need for maintaining such account.

Notwithstanding section 13 of this Act and the foregoing provisions of this section, where it appears to the Comptroller that —

Parts XI and XII of the Income Tax Ordinance (Cap. 166) (relating to objections and appeals) and of any rules made thereunder, shall apply, mutatis mutandis, to any direction given under subsection (6) of this section as if it were a notice of assessment given under those provisions.

Section 44 of the Income Tax Ordinance shall not apply in respect of any dividend or part thereof which is debited to the account required to be kept for the purposes of this section.

Where an amount has been received by way of dividend from a pioneer enterprise by a shareholder and such amount is exempt from tax under this section, if that shareholder is a company (in this section called the “holding company”) which holds, throughout its tax relief period, the beneficial interest in all the issued shares of the pioneer enterprise (or in not less than such proportion of those shares as the Minister may require at the time when the pioneer certificate is issued to that pioneer enterprise) any dividends paid on or after the 1st day of January 1968, by such holding company to its shareholders, to the extent that the Comptroller is satisfied that those dividends are paid out of such amount, shall be exempt from tax in the hands of those shareholders; and section 44 of the Income Tax Ordinance shall not apply in respect of any dividend or part thereof so exempt.

Where a pioneer enterprise has, for the whole of its tax relief period, incurred a loss in respect of its old trade or business, the amount of such loss shall be treated as if it had been incurred by that enterprise in its new trade or business and in the year of assessment in which that new trade or business is deemed to have commenced under the provisions of this Act, and section 37 of the Income Tax Ordinance shall apply accordingly in computing the chargeable income of the pioneer enterprise for any year of assessment.

For the purposes of this section —

Subject to subsection (2) of this section, where the Minister is satisfied that the increased manufacture of the product of any industry would be of economic benefit to Singapore, he may, if he considers it expedient in the public interest to do so, by order, declare such industry to be an approved industry and the product thereof to be an approved product for the purposes of this Part of this Act.

Before making any order under subsection (1) of this section, the Minister shall —

The Minister may, if he considers it necessary, call for further particulars of the grounds of any such objection from any person who has given due notice of such objection.

The Minister may revoke any order made under this section but any such revocation shall not affect the operation of any expansion certificate issued to any expanding enterprise before such revocation.

Any company intending to incur new capital expenditure for the purpose of the manufacture or increased manufacture of an approved product may —

Where the Minister is satisfied that it is expedient in the public interest to do so, he may approve such company as an expanding enterprise and issue an expansion certificate to such company, subject to such conditions as he thinks fit.

For the purposes of this Part of this Act, “new capital expenditure” means expenditure incurred by a company in the purchase of productive equipment which is intended to increase its production or profitability;Provided that expenditure incurred in the purchase of productive equipment which is not new shall be deemed not to be new capital expenditure unless it is proved to the satisfaction of the Minister that —

Every expansion certificate issued under this section shall specify the date on or before which the productive equipment shall be put into operation and such date shall be deemed to be the expansion day for the purposes of this Part of this Act.

The Minister may in his discretion, upon the application of any expanding enterprise, amend its expansion certificate by substituting for the expansion day specified therein such earlier or later date as he thinks fit and thereupon the provisions of this Part of this Act shall have effect as if the day so substituted were the expansion day in relation to such expanding enterprise.

The tax relief period of an expanding enterprise shall begin on the first day of the accounting period commencing on or after its expansion day or, at its option, on the first day of the accounting period in which the expansion day falls and shall —

Notwithstanding subsection (1) of this section, where the tax relief period of an expanding enterprise is three years and the Minister is satisfied that it has incurred by the end of that period new capital expenditure of not less than two hundred and fifty thousand dollars, he may extend its tax relief period to five years.

Subject to the provisions of this Act, an expanding enterprise shall be entitled, during its tax relief period, to relief in the manner provided by this section.

The income of the expanding enterprise in respect of its trade or business to which its expansion certificate relates (hereinafter in this Part referred to as the “expansion income”) shall be ascertained, for any accounting period during its tax relief period, in accordance with the provisions of the Income Tax Ordinance (Cap. 166), save that no deduction which might otherwise fall to be made under the provisions of sections 19, 19A, 20, 21 and 22 of that Ordinance shall be made in respect of any new capital expenditure incurred by such expanding enterprise.

Where an expanding enterprise carries on trading activities other than those to which its expansion certificate relates, the expansion income to be ascertained for the purposes of this section shall be determined in such manner as appears to the Comptroller to be reasonable in the circumstances.

Where in the opinion of the Comptroller the carrying on of such trading activities is subordinate or incidental to the carrying on of the trade or business to which its expansion certificate relates, the income or loss arising from such activities shall be deemed to form part of the expansion income of the expanding enterprise.

The expansion income so ascertained shall be compared with the corresponding income of the expanding enterprise for the accounting period immediately preceding the tax relief period (hereinafter in this Part referred to as the “pre-relief income”) and relief shall be given to the following extent: —

Where an expanding enterprise has been approved as a pioneer enterprise or as an export enterprise or as both, the deduction allowable under this section shall be ascertained by reference to the expansion income of the expanding enterprise, including any part of such income which may be exempted under Part II or Part IV of this Act (hereinafter in this Part referred to as the “exempted income”) but shall be so limited that the total of the exempted income and the deduction in respect of the expansion income do not exceed one hundred per centum of the expansion income.

Where, for the purposes of providing relief under this section, it is necessary to compare the income of different accounting periods, and any such period is greater or less than twelve months, the income of such period shall be adjusted on a time basis to determine a notional income for a period of twelve months.

The Minister may, on the application of any company which is manufacturing or proposes to manufacture any export product or is engaged or proposes to engage in deep-sea fishery, either wholly or partly for export, approve such company as an export enterprise and issue to such company an export enterprise certificate subject to such conditions as he thinks fit.

The application shall be in such form and with such particulars as may be prescribed.

Every export enterprise certificate issued under this section shall specify the accounting period in which it is expected that the export sales of the export product or export produce —

For the purposes of this Part of this Act —

The tax relief period of an export enterprise shall —

The Minister may, where he is satisfied that it is expedient in the public interest to do so, extend the tax relief period of any export enterprise for such further period as he thinks fit.

Part X of the Income Tax Ordinance (Cap. 166) (relating to returns of income) shall apply in all respects as if the whole of the income of an export enterprise in respect of its export profits were chargeable to tax.

The annual return of income shall be accompanied by a separate export statement showing the quantity and value at f.o.b. prices of its export product or export produce exported during the accounting period in respect of which such return was furnished, together with such further evidence as, in the opinion of the Comptroller, is necessary to verify the accuracy of such export statement.

The income of an export enterprise in respect of its trade or business to which its export enterprise certificate relates shall be ascertained (after making any necessary adjustments in consequence of a direction under section 9 of this Act, as applied to this Part by section 24 of this Act), for any accounting period during its tax relief period, in accordance with the provisions of the Income Tax Ordinance (Cap. 166), without making any deductions which may fall to be made under any of the provisions contained in sections 16, 17, 18, 19, 19A, 20, 21 and 22 of that Ordinance.

The total export profits of an export enterprise shall be deemed to be that part of the income so ascertained which bears the same proportion to such income as the total value of the export sales (f.o.b.) of its export product or export produce whether made directly or indirectly by sale to an independent exporter (hereinafter in this Part referred to as “the export sales”) bears to the total value of the sums receivable in respect of —

Where a company exports any products or produce, to which its export enterprise certificate relates, to a country which is an established export market, the amount of its export profit arising from the export of such products or produce to such country which will qualify for the relief provided by section 30 of this Act shall be the excess of such profit over a fixed sum to be determined in the following manner: —

Where a company exports any products or produce to which its export enterprise certificate relates, to a country which is not an established export market the whole of its export profit arising from the export of such products or produce to such country shall qualify for the relief provided by section 30 of this Act.

For the purposes of this section —

The tax relief provided under this Part of this Act shall apply to an export enterprise during its tax relief period subject to the following conditions: —

Notwithstanding the provisions of subsection (1) of this section, where, in its export year, the export sales of an export enterprise amount in value to one hundred thousand dollars or more, but in proportion, to less than twenty per centum of the total sales, and the Minister is satisfied, on the representations of such enterprise that the failure to realise such proportion of the total sales was due to causes beyond the control of the enterprise, or having regard to the quantum of its output and sales other than export sales, it is reasonable and expedient in the public interest to do so, the Minister may direct that the relief provided under this Part of this Act shall apply in respect of the relevant year of assessment corresponding to its export year or in respect of any subsequent year of assessment during its tax relief period.

Where any amount of export profit qualifies under sections 28 and 29 of this Act for the relief provided by this section, any deductions which may fall to be made under any of the provisions of sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Ordinance shall be made for any year of assessment in respect of which such increased export profit would have formed part of the statutory income of the export enterprise save for the provisions of this Part of this Act.

For each year of assessment the Comptroller shall issue to the export enterprise a statement showing the balance of the export profit for that year of assessment and the provisions of Parts XI and XII of the Income Tax Ordinance (relating to objections and appeals) and of any rules made thereunder, shall apply, mutatis mutandis, as if such statement were a notice of assessment given under such provisions.

Subject to subsection (6) of section 31 of this Act, where any statement issued under subsection (2) of this section has become final and conclusive an amount equal to ninety per centum of the balance of such export profit shall not form part of the statutory income of the export enterprise for that year of assessment but shall be exempt from tax.

As soon as any amount of export income has become exempted under the provisions of section 30 of this Act that amount shall be credited to an account to be kept by the export enterprise for the purposes of this section.

Where such account is in credit at the date on which any dividends are paid by the export enterprise out of income which has been exempted an amount equal to such dividends or to such credit, whichever is the less shall be debited to such account.

So much of the amount of any dividends so debited to such account as are received by a shareholder in the export enterprise shall, if the Comptroller is satisfied with the entries in such account, be exempt from tax in the hands of such shareholder.

Any dividends debited to such account shall be treated as having been distributed to the shareholders of the enterprise or any particular class of such shareholders in the same proportions as such shareholders were entitled to payment of the dividends giving rise to the debit.

The export enterprise shall deliver to the Comptroller a copy of such account, made up to a date specified by him, whenever called upon so to do by notice in writing sent by him to its registered office, until such time as he is satisfied that there is no further need for maintaining such account.

Notwithstanding the provisions of section 30 of this Act and the foregoing provisions of this section, where it appears to the Comptroller that —

Parts XI and XII of the Income Tax Ordinance (Cap. 166) (relating to objections and appeals), and of any rules made thereunder, shall apply, mutatis mutandis, to any direction given under subsection (6) of this section as if it were a notice of assessment given under those provisions.

Section 44 of the Income Tax Ordinance shall not apply in respect of any dividend or part thereof which is debited to the account required to be kept for the purposes of this section.

Where an amount has been received by way of dividend from an export enterprise by a shareholder and such amount is exempt from tax under the foregoing provisions of this section, if that shareholder is a company (in this section referred to as “the holding company”) which holds, at the time any dividend is declared, the beneficial interest in all the issued shares of the export enterprise (or in not less than such proportion of those shares as the Minister may require at the time when the export certificate is issued to that export enterprise), any dividends paid on or after the 1st day of January 1967, by the holding company to its shareholders, to the extent that the Comptroller is satisfied that those dividends are paid out of such amount, shall be exempt from tax in the hands of those shareholders; and the provisions of section 44 of the Income Tax Ordinance shall not apply in respect of any dividend or part thereof so exempt.

A company engaged in any industry which is desirous of entering into an agreement or arrangement with a non-resident person whereby royalties or technical assistance fees or contributions to research and development costs are payable to such non-resident person, may apply to the Minister for a certificate certifying such royalties, fees or contributions to be approved royalties, fees or contributions, as the case may be, for the purposes of this Part of this Act.

The application shall be in such form containing such particulars as may be prescribed, and shall be accompanied by a copy of the proposed agreement or arrangement certified by the non-resident person.

Where the Minister is satisfied as to the bona fides of any application made under this section and that it is expedient in the public interest to do so, he may issue a certificate in the terms of the application, subject to such conditions as he thinks fit.

If for any reason whatsoever any approved royalties, fees or contributions payable by a company cease to become payable before expiry of the period of the agreement or arrangement related thereto, the company concerned shall, within thirty days from the date on which such royalties, fees or contributions cease to become payable, give notice thereof to the Minister.

The company to which a certificate has been issued under section 40 of this Act shall not, without the prior sanction of the Minister, amend or otherwise vary the terms of the agreement or arrangement related thereto, except in cases where for the same consideration the amount of the approved royalties, fees or contributions is to be reduced and in such event the company concerned shall notify the Minister accordingly within thirty days from the date on which such amount was reduced.

Notwithstanding paragraph (b) of section 43 of the Income Tax Ordinance (Cap. 166), the tax leviable and payable for each year of assessment upon any approved royalties, fees or contributions paid by a company to a non-resident person shall be at the rate of twenty per centum on every dollar of such approved royalties, fees or contributions.

The Minister may, if he is satisfied that it is expedient in the public interest to do so, by an indorsement to that effect on the approved royalties, fees or contributions certificate exempt such royalties, fees or contributions from tax.

Where the Minister is satisfied that any company to which a certificate has been issued under the provisions of this Act, has contravened or has failed to comply with any of the provisions of this Act, or of any rules made thereunder, or of any terms or conditions imposed on such certificate, he may, by notice in writing, require such company within thirty days from the date of service of such notice to show cause why such certificate should not be revoked; and if the Minister is satisfied that, having regard to all the circumstances of the case it is expedient to do so, he may revoke such certificate.

Where a certificate is revoked under subsection (1) of this section, the Minister shall specify the date, which may be from the date of such certificate, from which such revocation shall become operative and the provisions of this Act shall cease to have effect in relation to such certificate from such date.

Any person who contravenes or fails to comply with the provisions of section 27 or 33 of this Act or any regulations made thereunder, shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.

Any person who —

Any officer authorised by the Comptroller or any senior officer of customs may compound any offence which is prescribed to be a compoundable offence by accepting from the person reasonably suspected of having committed such offence a sum of money not exceeding one thousand dollars.

On payment of such sum of money the person reasonably suspected of having committed an offence, if in custody, shall be discharged, any property seized shall be released and no further proceedings shall be taken against such person or property.

Where an offence under section 27, 33 or 48 of this Act or any regulations made thereunder, has been committed by a company, any person who at the time of the commission of the offence was a director, secretary or other similar officer of the company, or was purporting to act in such capacity shall be deemed to be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.

Where any person would be liable under section 27, 33 or 48 of this Act to any punishment, penalty or forfeiture for any act, omission, neglect or default he shall be liable to the same punishment, penalty or forfeiture for every such act, omission, neglect or default of any clerk, servant or agent, or of the clerk or servant of such agent provided that such act, omission, neglect or default was committed by such clerk or servant in the course of his employment or by such agent when acting on behalf of such person or by the clerk or servant of such agent when acting in the course of his employment in such circumstances that had such act, omission, neglect or default been committed by the agent his principal would have been liable under this section.

The Minister may make such regulations as may be necessary or expedient for the purpose of carrying out the provisions of this Act.

Without prejudice to the generality of the foregoing power, the Minister may make regulations for or in respect of all or any of the following matters: —

The Minister may in writing authorise any person or authority to prescribe such forms as are required to be or may be prescribed under this Act.

All regulations made under this section shall be presented to Parliament as soon as may be after publication.

The Pioneer Industries (Relief from Income Tax) Ordinance, 1959 (Ord. 1 of 1959), and the Industrial Expansion (Relief from Income Tax) Ordinance, 1959 (Ord. 2 of 1959), are hereby repealed.

Notwithstanding the repeal of the Pioneer Industries (Relief from Income Tax) Ordinance, 1959, by subsection (1) of this section —

In any other written law and in any other document whatsoever unless the context otherwise requires any reference to the provisions of the Pioneer Industries (Relief from Income Tax) Ordinance, 1959, shall be construed as a reference to the corresponding provisions of this Act.