STAMP DUTIES (AMENDMENT) BILL

Order for Second Reading read. 4.50 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

In the 1980 Budget Statement, it was announced that stamp duties would be abolished or rationalized on certain documents. The stamp duties concessions were effected by the Stamp Duties Act (Substitution of Schedules) Notification, 1980. However, some consequential amendments remain to be made to the provisions of the Act.

The purpose of this Bill is to make these amendments. It will also introduce four minor amendments to streamline the Act.

Clause 6 of the Bill makes the consequential amendments to sections 2; 12; 15(1); 21 (2), (4) and (5); 29(1), (2) and (4); 35(e); 65(l)(c): 66; 71 (1); 72 and 80 of the Act.

I now move on to the other amendments which are intended to streamline and improve existing legislation.

Clause 2 amends section 21 (1) of the Act by deleting the phrase "made in Singapore under seal or under hand only". Section 21(l) imposes an ad valorem duty on contracts and agreements executed in Singapore on the sale of any equitable estate or interest in any property. It also imposes an ad valorem duty on some contracts and agreements on the sale of legal estate or interest in the property except lands and properties situated outside Singapore, goods, stocks and ships. This is inconsistent with section 4(l)(c) of the Act which requires any instrument, which is executed outside Singapore and subsequently returned, to be stamped for duty. It has also created a tax loop-hole for avoidance of payment of duty by executing such agreements outside Singapore and subsequently bringing them back. The proposed amendment will, therefore, remove the inconsistency and seal the existing tax loop-hole as it has the effect of making such contracts and agreements, which are treated as conveyances on sale, liable to ad valorem duty.

Clause 3 amends section 47(a) of the Act so that the grace period of 14 days does not apply to receipts, as section 64(c) of the Act requires receipts to be stamped before execution.

Clause 4 amends section 59 of the Act which imposes a statutory limit of six months for making an application of refund of duties paid for misused stamps. The proposed amendment gives the Commissioner of Stamp Duties the discretionary power to extend the time period. This is to alleviate hardship in cases where the delay is unavoidable.

Section 68(2) of the Act stipulates that any person who appoints a proxy to vote but does not have the documents stamped will be liable to a fine not exceeding $100 and the vote declared null and void. This is an unnecessary trap for the unsuspecting public, who may not be aware of the requirement of this provision in the Act. Clause 5, therefore, deletes section 68(2) of the Act as it does not really serve any useful purpose.

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 Hon Sui Sen].

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