—(1) The assessable income of any person from all sources chargeable with tax under this Act for any year of assessment shall be the remainder of his statutory income for that year after the deductions allowed in this Part have been made.
(2) There shall be deducted —
the amount of a loss incurred by that person during any year preceding the year of assessment in any trade, business, profession or vocation which, if it had been a profit would have been assessable under this Act, and which has not been allowed against his statutory income of a prior year;
an amount not exceeding twice the value, both the amount and value to be determined by the Minister, of an approved gift made to an approved museum in the year preceding the year of assessment; and for this purpose, “approved” means approved by the Minister or such person as he may appoint;
an amount in respect of gifts of money made by him in the year preceding the year of assessment to the Government or to any institution of a public character in Singapore approved by the Minister on application by the institution concerned; and
an amount equivalent to the value of any gift of a computer (including computer software and peripherals) approved by the Minister and made by any company in the year preceding the year of assessment to a prescribed educational , research or other institution in Singapore .
[31/86; 1/90; 26/93; 31/98]
(2A) A deduction under subsection (2)(a) shall be made as far as possible from the statutory income of the first year of assessment after the year in which such loss was incurred, and, so far as it cannot be so made, then from the statutory income of the next year of assessment, and so on.
(2B) A deduction under this section to any person in respect of any sum allowable under subsection (2)(b), (c) and (d) shall only be allowed to the extent that it is not in excess of the statutory income, if any, remaining after the deduction authorised by subsection (2)(a).
(3) For the purposes of subsection (2), the loss incurred during any year shall be computed, where the Comptroller so decides, by reference to the year ending on a day in such year which would have been adopted under section 35(2) for the computation of the statutory income of the following year of assessment if a profit had arisen.
(4) No deduction shall be allowed under this section to any person in respect of any sum which has been allowed as a deduction under this section against the income of his or her spouse chargeable in his or her own name.
(5) Notwithstanding anything in subsection (2), the amount of any loss incurred by a company in any trade or business shall be disregarded unless the Comptroller is satisfied that the shareholders of the company on the last day of the year in which the loss was incurred were substantially the same as the shareholders of the company on the first day of the year of assessment in which such loss would otherwise be deductible under subsection (2).
(6) A loss disregarded under subsection (5) shall not be allowed in any subsequent year of assessment.
(7) For the purposes of subsection (5) —
the shareholders of a company at any date shall not be deemed to be substantially the same as the shareholders at any other date unless, on both those dates, not less than 50% of the paid-up capital of the company was held by or on behalf of the same persons, nor unless, on both those dates, not less than 50% of the nominal value of the allotted shares in the company were held by or on behalf of the same persons; and
shares in a company held by or on behalf of another company shall be deemed to be held by the shareholders of the last-mentioned company, and shares held by or on behalf of the trustee of the estate of a deceased shareholder or by or on behalf of the person entitled to those shares as beneficiaries under the will or any intestacy of a deceased shareholder shall be deemed to be held by that deceased shareholder.
(8) The Minister or such person as he may appoint may, where there is a substantial change in the shareholders of a company and he is satisfied that such change is not for the purpose of deriving any tax benefit or obtaining any tax advantage, exempt that company from the provisions of subsection (5); and upon such exemption the loss referred to in subsection (2)(a) incurred by that company may be deducted but only against profits from the same trade or business in respect of which that loss was incurred.
(9) In subsection (2)(c), “institution of a public character” means an institution or fund in Singapore which is —
a hospital not operated or conducted for profit;
a public or benevolent institution not operated or conducted for profit;
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, where the gift is for such activities;
a university or a public fund for the establishment, maintenance, enlargement or improvement of a university;
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;
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;
a public fund established and maintained for the relief of distress among members of the public;
a charitable institution or a body of persons or a trust established for charitable purposes only; or
an organisation not operated or conducted primarily for profit which is engaged in or connected with the promotion of culture or the arts or with the promotion of sports.