INLAND REVENUE AUTHORITY OF SINGAPORE (AMENDMENT) BILL

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INLAND REVENUE AUTHORITY OF SINGAPORE (AMENDMENT) BILL: Order for Second Reading read.

The Second Minister for Finance (Mr Lim Hng Kiang): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Background

The IRAS Board was set up in 1992 when IRAS was restructured from a

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Ministry of Finance department into a statutory board. The role of the IRAS Board is to ensure that IRAS carries out its functions competently.

This Bill will amend the Inland Revenue Authority of Singapore Act to give legislative effect to the following measures:

(i) Remove the requirement that the Chairman of the IRAS Board shall be the Minister for Finance;

(ii) Empower the Minister for Finance to appoint the Chairman of the IRAS Board;

(iii) Increase the membership of the IRAS Board members (excluding the Chairman) from the current range of four to six members to the new range of five to 10 members; and

(iv) Increase the quorum for the IRAS Board from three to five.

Sir, I shall now explain the amendments in the Bill.

Chairmanship

The first amendment to section 5 of the IRAS Act removes the requirement for the IRAS Board to be headed by the Minister for Finance.

The provision for the Minister for Finance to be Chairman of the IRAS Board was set out in 1992 to ensure the smooth transition of IRAS from a department under the Ministry of Finance to a statutory board. Now that IRAS has functioned smoothly for so many years, the chairmanship of IRAS can follow the common practice of other statutory boards, where the Minister appoints the chairman of the statutory board. In this

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regard, suitable candidates for the Chairmanship can be identified from the public or private sector. However, parliamentary accountability will remain with the Minister.

Cap on number of board members

The second amendment to section 5 of the IRAS Act increases the number of IRAS Board members (excluding the Chairman) from the current range of four to six members, to a new range of five to 10 members. This will bring the IRAS board membership closer to other statutory boards such as the CPF, LTA and MAS boards, which have upper limits on the number of board members ranging from nine to 14 each. More importantly, it will allow a broader range of members from the private sector to be brought in, who can offer inputs and guidance to IRAS in meeting the needs of taxpayers and the economy.

To ensure that decisions are made by a representative Board, the IRAS Act will also be amended to increase the quorum for the IRAS Board from three to five.

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 Hng Kiang].

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