INCOME TAX ORDINANCE (Exemption)

Mr Lim Kim San: Mr Speaker, Sir, I beg to move,

That this Assembly resolves that the resolution, passed on 16th September, 1952, by the Legislative Council of the Colony of Singapore under the provisions of the Income Tax Ordinance, 1947 (No. 39 of 1947) to exempt any person resident in Sweden and carrying on the business of shipowner or charterer otherwise than through an establishment in Singapore from all the provisions of the Income Tax Ordinance, 1947, which relate to gains or profits from such business, he rescinded with effect from the 1st day of January, 1966.

Sir, a resolution similar to the one I have referred to in the case of Italy just now was passed by the Legislative Council in 1952 to exempt residents of Sweden from income tax or shipping profits, and the remarks I have made with regard to the Italian case apply equally in the case of Sweden, except that in 1954 a double taxation arrangement was effected between Singapore and Sweden by extending the then United Kingdom/Swedish Double Taxation Convention to Singapore. This agreement was terminated in 1961 and action was taken to negotiate a new agreement.

With the advent of Malaysia, such agreements were the prerogative of the then Federal Government, and as at Singapore Day no agreement had been reached. Meanwhile the anomalous resolution of the then Legislative Council requires to he rescinded so that the way may be prepared for the conclusion of an appropriate double taxation agreement with the Government of Sweden.

Sir, I beg to move.

Question put, and agreed to.

Resolved,

That this Assembly resolves that the resolution, passed on 16th September, 1952, by the Legislative Council of the Colony of Singapore under the provisions of the Income Tax Ordinance, 1947 (No. 39 of 1947) to exempt any person resident in Sweden and carrying on the business of shipowner or charterer otherwise than through an establishment in Singapore from all the provisions of the Income Tax Ordinance, 1947, which relate to gains or profits from such business, be rescinded with effect from the 1st day of January, 1966.