ESTATE DUTY (AMENDMENT) BILL

Order for Second Reading read.

3.00 p.m.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

In April 1965, the Malaysian Government passed an Act to vary the laws in force in Malaysia relating to estate duty when Singapore was in Malaysia. That Act provided for harmonisation of the law with Malayan legislation. It further transferred to Federal Authority functions under the Singapore Estate Duty Ordinance and made other amendments consequent upon the passing of the Malaysia Act. It is now necessary to amend the Estate Duty Ordinance to accord with the independent status of Singapore, to revert to the rates of estate duty that were applicable to the amending legislation of Malaysia, and to make minor and consequential amendments.

Clause 2 (b) amends the definition of "property" to exclude immovable property situate in Malaysia from liability to duty in Singapore, while clause 4 reverts the rates of duty payable in respect of property passing on the death of any person, dying domiciled in either Singapore or Malaysia, to the pre-Malaysian rates which become applicable except for the period January 1st to August 9th, 1965.

Clause 12 re-enacts new provisions relating to circumstances in which postponement of payment of estate duty may be permitted. The existing provisions were considered to be too restrictive and are repealed by clause 10. Primarily, the object is to facilitate administration of estates and obviate undue hardships.

Clause 14 repeals the provisions of section 44A relating to payment of duty into the joint account and complementary thereto. Clause 3 provides for accountability by the Commissioner by payment into the consolidated account.

Clause 15 repeals the provisions of section 54 which provided for the entering into of agreements for the purpose of exchanging information with other countries. This power is necessarily inherent in the Minister without the need for formal agreements.

For the purpose of reverting to the pre-Malaysian rates of duty, new Sixth and Seventh Schedules are added to the Ordinance by clause 16. The Sixth Schedule contains the rates applicable in respect of deaths before 1st January, 1965, and from 9th November, 1955, when the rates of duty were increased, and after Singapore Day, whilst the Seventh Schedule contains the Malaysian rates applicable to the period 1st January to 8th August, 1965.

The purpose of the Estate Duties (Apportionment and Miscellaneous Provisions) was to provide for apportionment of duty in the case of persons dying prior to 1st April, 1946, domiciled or leaving assets in the Straits Settlements and in respect of which some duty remained unpaid after the dissolution of the Straits Settlements. Whilst theoretically a case could still arise at the present time where death occurred prior to 1st April, 1946, in respect of which duty has not been paid, the likelihood is somewhat remote and hence there are amendments in clause 18 for its repeal.

The remainder of the amendments are of a minor and consequential nature. They are necessitated either to accord with the independent status of Singapore-clauses 2 (a) , 5, 6, 7, 8, 9, 13 and 17 - or consequential upon amendments already described in clauses 11 and 18.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Lim Kim San].

Bill considered in Committee; reported without amendment; read a Third time and passed.