INCOME TAX (AMENDMENT) BILL

Order for Second Reading read.

7.15 p.m.

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

Sir, at present there is provision under section 37 (2) of the Income Tax Ordinance for the approval of an institution as "an institution of a public character" whereby an amount equal to the sum contributed to the said institution is an allowable deduction from assessable income for income tax purposes.

Under paragraph (c) of the above sub-section "an institution of a public character" is defined as an institution or fund in Singapore under one of seven categories, including "a public or other benevolent institution not operated or conducted for profit". The phrase is ambiguous because of the word "other", so that this category is restricted to either public benevolent or other benevolent institutions not conducted for profit.

As the provision now stands, its benefits cannot be extended to deserving public institutions which do not strictly fall within the legal definition of "benevolent". To give greater flexibility to approve a public institution not strictly benevolent, it is proposed that section 37 (2) (c) (ii) should be amended by deleting the word "other" in the phrase "a public or other benevolent institution".

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.