Clause 4

Notwithstanding any other provisions of this Act, the Minister may by regulations —

provide that tax on gains or profits derived on or after 1st July 1989 from the disposal of securities by an approved unit trust shall be levied and paid for each year of assessment by the trustees upon such percentage of the gains or profits and in such manner as may be prescribed;

provide for the deduction of such percentage of the losses arising from the disposal of securities in such manner as may be prescribed;

provide for the deduction of expenses allowable under this Act to be granted in such manner as may be prescribed;

provide for the deduction of tax by the trustees of the unit trust on any distribution received by a unit holder which is deemed to be income under section 10(11).(2) In this section —“approved” means approved by the Minister or such other person as he may appoint;“securities” has the same meaning as in section 10A;“unit” means a right or interest (whether described as a unit, a sub-unit or otherwise) which may be acquired under a unit trust;“unit trust” means any trust established for the purpose, or having the effect, of providing facilities for the participation by persons as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property.Excess contributions deemed to be income10C.—

Notwithstanding section 13(1)(j), where in any year from 1st January 1989 contributions have been made by an employer in respect of an employee under section 7 of the Central Provident Fund Act [Cap. 36] —

any part of the employer’s contributions, in respect of ordinary or additional wages paid to the employee in that year, which is not obligatory under that Act; or

the employer’s contributions in respect of that part of the additional wages which exceeds 40% of all ordinary wages paid to the employee in that year,shall be deemed to be income accruing to the employee for the year in which the wages are paid.(2) Notwithstanding subsection (1)(b), where in any year from 1st January 1989 all the ordinary wages of an employee paid in that year do not exceed $72,000, and his total wages paid in the same year —

do not exceed $100,000, the excess contributions under subsection (1)(b) shall not be deemed to be income accruing to the employee;

exceed $100,000, only that part of such excess contributions made in respect of the difference between the total wages and $100,000 shall be deemed to be income accruing to the employee.(3) Where in any year from 1st January 1989 contributions under section 7 of the Central Provident Fund Act [Cap. 36] have been made in respect of an employee employed by two or more employers and the employers are related to each other, subsection (2) shall apply with the necessary modifications as if all the ordinary and additional wages from those related employers and the contributions on those wages were paid by one employer.(4) For the purposes of subsection (3), one employer shall be deemed to be related to another where one of them, whether directly or indirectly, has the ability to control the other or where both of them, whether directly or indirectly, are under the control of a common person.(5) Subsections (1) to (4) shall apply with the necessary modifications to contributions made by an employer to a designated pension or provident fund as if those contributions were employer’s contributions to the Central Provident Fund.(6) Subsection (1) shall apply with the necessary modifications to contributions made to an approved pension or provident fund in respect of an employee who at the same time has no contribution made by his employer to the Central Provident Fund as if the contributions to the approved pension or provident fund were employer’s contributions made to the Central Provident Fund.(7) Where in any year from 1st January 1989 contributions have been made by an employer in respect of an employee to the Central Provident Fund or to a designated pension or provident fund, in addition to any other approved pension or provident fund, the whole of the contributions made to that approved pension or provident fund shall be deemed to be income accruing to the employee for the year in which the contributions are paid.(8) In this section —“additional wages” has the same meaning as in the Central Provident Fund Act [Cap. 36];“designated pension or provident fund” means an approved pension or provident fund designated by the Minister under section 39(6)(c);“employer’s contributions” means the contributions made by any employer under section 7(1) of the Central Provident Fund Act less the amount of contributions recoverable by the employer from the wages of an employee under section 7(2) of that Act;“ordinary wages” has the same meaning as “ordinary wages for the month” in the Central Provident Fund Act;“total wages”, in relation to any year, means the total of the ordinary and additional wages in that year received by an employee;“year” means any year from 1st January to 31st December.”.