MOF Accepts Seven Changes To Draft Income Tax Bill

1. The Ministry of Finance (MOF) has accepted seven suggested changes to the draft Income Tax (Amendment) Bill 2005. A total of 16 comments was received on the draft legislation, during the public consultation exercise held from 4 June 2005 to 3 July 2005.

2. The consultation exercise sought feedback on how changes to the income tax legislation could be improved for greater clarity and easier compliance. This is the third year that the draft income tax legislation has been published for consultation.

3. Most of the comments received focused on:

(a) the advance rulings system;

(b) the loss carry-back system;

(c) reduction of tax withheld on certain REIT distributions payable to certain non-residents; and

(d) consequential tax changes related to the recommendations of the Company Legislation Regulatory Framework Committee (CLRFC)

4. Suggestions which have not been accepted include changes that are inconsistent with drafting convention or terms used in other tax legislation. Other comments went beyond the purpose of the exercise to propose changes to tax policies and administration.

5. The revised Income Tax (Amendment) Bill 2005 will be tabled for Parliament's approval later this year.

6. MOF thanks all respondents in this consultation exercise. MOF's responses to the major comments received are summarised on the MOF's website.

MINISTRY OF FINANCE