Clause 3

by inserting, immediately after subsection (3), the following subsections:“(3A) Notwithstanding subsection (3), where a company undertakes a buyback described in subsection (1)(a) through a special trading counter established on the Singapore Exchange, any payment made by the company to any shareholder for the buyback shall, to the extent that the payment is not made out of the contributed capital of the company, be deemed to be —

a dividend paid by the company on the date of the payment, and section 44 shall apply, with the necessary modifications, to such dividend; and

a dividend received by the shareholder if the conditions in subsection (3B) are satisfied.(3B) The conditions referred to in subsection (3A)(b) are —

the shares sold through the special trading counter are not acquired by the shareholder through any securities lending or repurchase arrangement;

the shareholder has beneficially owned the shares for a continuous period of at least 183 days ending immediately before the day of the sale of the share through the special trading counter;

the shareholder has furnished to the Comptroller, or such other person as the Comptroller may direct, a declaration relating to the ownership and other particulars of the shares sold in such form and manner as may be approved by the Comptroller; and

the company has complied with such requirements as may be imposed by the Comptroller.”;

by inserting, immediately after subsection (4), the following subsections: “(4A) The amount of any dividend deemed to be paid by a company under subsection (3A)(a) shall be deemed to be of such a gross amount as after deduction of tax under section 44 at the rate deductible at the date of payment would be equal to the amount of payment made by the company.(4B) The amount of any dividend deemed to be received by a shareholder under subsection (3A)(b) shall be deemed to be of such a gross amount as after deduction of tax under section 44 at the rate deductible at the date of payment by the company would be equal to the amount of payment received by the shareholder.”;

by inserting, immediately after the words “subsection (3)(b)” in subsection (5), the words “or (3A)(b)”;

by inserting, immediately after subsection (6), the following subsection:“(6A) Notwithstanding any other provisions of this Act, where a shareholder sells his shares through a special trading counter referred to in subsection (3A) and any payment received by the shareholder for the buyback of such shares is deemed to be a dividend received by him under that subsection —

no deduction shall be allowed to him in respect of the costs incurred to acquire the shares sold; and

where any provision for the diminution in the value of such shares has been allowed as a deduction previously, the total amount of all such deductions not written back shall be deemed to be a trading receipt of the shareholder for the basis period in which the shares are sold.”; and

by deleting the full-stop at the end of paragraph (c) of subsection (7) and substituting a semi-colon, and by inserting immediately thereafter the following paragraph:“(d)in determining the duration of beneficial ownership of shares for the purposes of subsection (3B)(b) —

the day of acquisition of the shares shall be counted as one day, but the day of sale of the shares shall be excluded;

any bonus shares or shares arising from a consolidation or sub-division of shares shall be deemed to have been acquired on the date of acquisition of the original shares in respect of which the bonus shares were issued, or from which the consolidated or sub-divided shares were derived;

the duration shall not be regarded as discontinued by the lending or sale of the shares under any securities lending or repurchase arrangement; and

regard shall be had to such other matters as may be prescribed.”.