Clause 24

by inserting, immediately after subsection (2), the following subsection:“(2A) A deduction under subsection (2) shall be made in the following order:

firstly, against income from any trade, business, profession or vocation; and

secondly, against income from any other source.”;

by deleting the full-stop at the end of paragraph (e) of subsection (5) and substituting a semi-colon, and by inserting immediately thereafter the following paragraph:“(f)derived during the period from 1st January 2003 to 31st December 2003 shall be treated as his statutory income for the year of assessment 2004 and be charged to tax at the rate applicable to him for that year of assessment.”;

by inserting, immediately after subsection (12), the following subsection:“(12A) The income referred to in section 10(20A) shall not form part of the statutory income of any designated unit trust or approved CPF unit trust for any year of assessment.”;

by inserting, immediately after subsection (13), the following subsection:“(13A) No deduction under section 14 shall be allowed in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by any designated unit trust or approved CPF unit trust against any income derived by the unit trust from discount, fees and compensatory payments for which tax has been deducted under section 45A.”;

by deleting the words “subsections (12) and (13)” in subsection (14) and substituting the words “subsections (12), (13) and (13A)”; and

by inserting, immediately after the definition of “approved CPF unit trust” in subsection (14), the following definition:“ “compensatory payment” has the same meaning as in section 10N(12);”.