Clause 5

by deleting paragraph (g) of subsection (1) thereof and substituting therefor the following: —“(g)the income of any charitable institution or of any body of persons or trust established for charitable purposes only:Provided that —

where a trade or business is carried on by any such institution, body of persons or trust, the income derived from such trade or business shall be exempt from tax only if such income is applied solely for charitable purposes and either —

the trade or business is exercised in the course of the actual carrying out of a primary purpose of such institution, body of persons or trust; or

the work in connection with the trade or business is mainly carried on by persons for whose benefit such institution, body of persons or trust was established;

the institution, body of persons or trust applies in any year of assessment not less than eighty per cent of its income (after providing for allowable deductions) in the preceding year unless the Comptroller otherwise permits;

if the institution, body of persons or trust applies any amount of its income which, otherwise than in accordance with its charitable objects the institution, body of persons or trust shall pay to the Comptroller tax on that amount of its income and a determination and assessment under this sub-paragraph shall be treated as a notice of assessment and shall be subject to the provisions of Parts XI and XII of this Act;”;

by deleting the colon appearing at the end of paragraph (u) of subsection (1) thereof and substituting therefor a semi-colon and by inserting immediately thereafter the following paragraph: —“(v)interest received from such Asian Dollar Bonds issued in Singapore as may be approved in writing by the Minister if the interest is received by —

a non-resident individual; and

a person, other than an individual, if that person does not, by himself or in association with others, carry on a business in Singapore and does not have a permanent establishment in Singapore.”;

by deleting the proviso to subsection (1) thereof and substituting therefor the following: —“(1A) Nothing in subsection (1) of this section shall be construed to exempt in the hands of the recipients any dividends, interest, bonuses, salaries or wages paid wholly or in part out of income so exempted.”;

by deleting subsection (2) thereof and substituting therefor the following: —“(2) The Minister may, by notification in the Gazette, provide that the interest payable on any loan charged on the public revenue of Singapore or on any loan the use of which will, in his opinion, promote or enhance the economic or technological development of Singapore, shall subject to such conditions as he may impose be exempt from tax either generally or in respect of interest payable to certain classes of persons not resident in Singapore, and the interest shall as from the date and to the extent specified by the notification be exempt from tax.”;

by inserting immediately after the word “apply” appearing in the proviso to subsection (4) thereof the words “to the emoluments received by a director of a company or”; and

by inserting immediately after subsection (8) thereof the following subsection: —“(9) Where any income is exempt from tax by virtue of an order made under subsection (7) of this section and the income is received by a company which is resident in Singapore, subsection (6) of section 13A of this Act shall apply, mutatis mutandis, to the company in respect of a distribution of dividends from the income as if the company were a shipping enterprise.”.