Summary of Responses - Public Consultation On Draft Income Tax (Amendment) Bill 2012

MOF Accepts 19 of 42 Suggestions on the Draft Income Tax (Amendment) Bill 2012

The Ministry of Finance (MOF) has accepted for implementation 19 of the 42 suggestions on the draft Income Tax (Amendment) Bill 2012 received during the public consultation exercise held from 24 July to 13 August 2012. These suggestions will be incorporated into the revised Income Tax (Amendment) Bill 2012. The remaining 23 suggestions were not accepted for implementation as they are inconsistent with the legislative drafting conventions or the policy objectives for the proposed legislative changes.

Draft Income Tax (Amendment) Bill 2012

2.         The draft Income Tax (Amendment) Bill 2012 contains proposed legislation to put into effect the tax changes announced at Budget 2012, as well as other changes arising from the periodic review of the income tax system. Most of the feedback were received on the following tax changes:

• Enhancement to the Productivity and Innovation Credit (PIC) Scheme

• Certainty of non-taxation of gains on disposal of equity investment

• Enhancement to the Mergers and Acquisition Scheme

• Refinements to tax deduction regime for donations

A summary of the key comments received and MOF’s responses is at Annex 1.

3.         MOF would like to thank all respondents for their comments.

MINISTRY OF FINANCE
4 OCTOBER 2012