PART VIIIA
INSTITUTIONS OF A PUBLIC CHARACTER AND SECTOR ADMINISTRATORS
40A. In this Part, unless the context otherwise requires —
“institution of a public character” means an institution or fund in Singapore which is —
(a)
a hospital not operated or conducted for profit;
(b)
a public or benevolent institution not operated or conducted for profit;
(c)
a public authority or society not operated or conducted for profit and which is engaged in research or other work connected with the causes, prevention or cure of disease in human beings;
(d)
a university or a public fund for the establishment, maintenance, enlargement or improvement of a university;
(e)
an educational institution not operated or conducted for profit, or a public fund for the establishment, maintenance, enlargement or improvement of such an educational institution;
(f)
a public or private fund for the provision, establishment or endowment of a scholarship, exhibition or prize in a university, or an educational institution not operated or conducted for profit;
(g)
a public fund established and maintained for the relief of distress among members of the public;
(h)
an institution which is established for charitable, benevolent or philanthropic purposes only; or
(i)
an organisation not operated or conducted for profit which is engaged in or connected with the promotion of culture or the arts or with the promotion of sports,
which is approved as an institution of a public character by the Minister, Commissioner or any Sector Administrator on the application of the institution, or which is deemed as an institution of a public character under any written law;
“sector”, in relation to a Sector Administrator, means the class or classes of charities or institutions of a public character that the Minister has by notice published in the Gazette designated as under the supervision of that Sector Administrator;
“Sector Administrator” means any person or organisation appointed to be a Sector Administrator under section 40B.
[10/2007]
[Income Tax Act, s. 2]
40B. The Minister may appoint any person or organisation to be a Sector Administrator for one or more of the following purposes:
(a)
regulating the administration of charities within the sector;
(b)
approving institutions as institutions of a public character from among such class or classes of institutions as the Minister or Commissioner may determine;
(c)
regulating the administration of donations made to institutions of a public character within the sector;
(d)
exercising such other functions and powers as the Minister may determine.
[10/2007]
[Income Tax Act, s. 107 (1)]
40C.
—(1) The Minister may make regulations to provide for —
(a)
the manner and criteria to be adopted —
(i)
for the approval of institutions of a public character; and
(ii)
for the extension and revocation of the approval granted to institutions of a public character;
(b)
the regulation of any amendment of the constitution or any other governing instrument of any institution of a public character;
(c)
the use of donations, issue of tax deduction receipts and maintenance of donation records and accounts by institutions of a public character;
(d)
the regulation of institutions of a public character, including the application of provisions in the Act to institutions of a public character, whether or not such institutions are charities;
(e)
(f)
the procedures for appeal against decisions made by Sector Administrators; and
(g)
generally giving effect to or for carrying out the purposes of this Part.
[10/2007]
(2) Where any institution of a public character contravenes any regulations made under subsection (1) —
(a)
the institution of a public character shall be liable to pay to the Commissioner a financial penalty of the higher of $100 or the amount ascertained by the formula 0.4 x the total value of the donations (as determined under section 37(3) of the Income Tax Act (Cap. 134)) which ought not to be allowed a deduction under section 37(3) of the Income Tax Act by reason of the contravention; and
(b)
the Minister, Commissioner or the appropriate Sector Administrator may revoke the approval granted to the institution of a public character.
[10/2007]
(3) Any financial penalty payable by any institution of a public character under subsection (2)(a) shall be recoverable as a debt due to the Government.
[10/2007]
(4) The Commissioner may remit or refund the whole or any part of the financial penalty payable by any institution of a public character under subsection (2)(a).
[10/2007]
(5) Any financial penalty paid under subsection (2)(a) shall, after deducting any remission or refund under subsection (4), be paid into the Consolidated Fund.
[10/2007]
(6) Any financial penalty imposed under subsection (2)(a) shall be deemed to be interest on tax for the purposes of section 33(2) of the Limitation Act (Cap. 163).
[10/2007]
(7) Where any Sector Administrator contravenes any regulations made under subsection (1), the Minister may revoke the appointment of the Sector Administrator.
[10/2007]
[Income Tax Act, ss. 100 (2) and 107 (2) to (4)]