Singapore legislation
Regulation 9
of Income Tax (Deduction for Acquisition of Shares of Companies) Regulations 2012
Regulation 9
Disregarding of acquisitions and divestments in certain cases
Subregulation 1
Without prejudice to any other provision in this regulation, where —
the relevant divestment period in relation to one set of qualifying acquisitions or elected qualifying acquisitions, as the case may be, of ordinary shares in a target company (referred to in this regulation as the first set of acquisitions) overlaps with the relevant acquisition period in relation to a second set of qualifying acquisitions or elected qualifying acquisitions, as the case may be, of ordinary shares in the same target company (referred to in this regulation as the second set of acquisitions); and
the relevant acquisition period of the second set of acquisitions commences on any date after the last day of the relevant acquisition period of the first set of acquisitions,then, any divestment or acquisition taken into account as “J” or “K” in the application of the formula in regulation 7 to the first set of acquisitions shall be disregarded in the application of the formulae in regulations 7 and 8 to the second set of acquisitions, if “J – K” gives a result that is more than zero.
Subregulation 2
Without prejudice to any other provision in this regulation, where a divestment is, in relation to one set of qualifying acquisitions or elected qualifying acquisitions of ordinary shares in a target company, a divestment referred to in section 37L(17)(c), (d) or (da) of the Act, as the case may be, the divestment shall be disregarded in the application of the formulae in regulations 7 and 8 to another set of qualifying acquisitions or elected qualifying acquisitions of ordinary shares in the same target company, where the relevant acquisition period of the other set of acquisitions commences on any date after the date of commencement of the relevant divestment period of the first set of acquisitions, whether or not the 2 periods overlap.
Subregulation 3
Without prejudice to any other provision in this regulation, in the application of regulations 7 and 8 to qualifying acquisitions or elected qualifying acquisitions made in a relevant acquisition period, any divestment that is made before the first acquisition in the relevant acquisition period shall be disregarded.