Singapore legislation

Clause 7

Repeal and re-enactment of section 33

Section 33 of the principal Act is repealed and the following section substituted therefor:“Comptroller may disregard certain transactions and dispositions33.—

(1)

Where the Comptroller is satisfied that the purpose or effect of any arrangement is directly or indirectly —

(a)

to alter the incidence of any tax which is payable by or which would otherwise have been payable by any person;

(b)

to relieve any person from any liability to pay tax or to make a return under this Act; or

(c)

to reduce or avoid any liability imposed or which would otherwise have been imposed on any person by this Act,he may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary the arrangement and make such adjustments as he considers appropriate, including the computation or recomputation of gains or profits, or the imposition of liability to tax, so as to counteract any tax advantage obtained or obtainable by that person from or under that arrangement.(2) In this section, “arrangement” means any scheme, trust, grant, covenant, agreement, disposition, transaction and includes all steps by which it is carried into effect.(3) This section shall not apply to —

(a)

any arrangement made or entered into before the commencement of the Income Tax (Amendment) Act 1987; or

(b)

any arrangement carried out for bona fide commercial reasons and had not as one of its main purposes the avoidance or reduction of tax.”.

Read in full context — Income Tax (Amendment) Bill →