Agreement relating to Malaysia between United Kingdom of Great Britain and Northern Ireland, Federation of Malaya, North Borneo, Sarawak and Singapore/Annex J/Annex to Annex J

by Government of United Kingdom of Great Britain and Northern Ireland, Government of Federation of Malaya, Government of North Borneo, Government of Sarawak and Government of Singapore

PART I

CUSTOMS AND EXCISE

Subject to the provisions of Paragraphs 1-4 of this agreement the following powers under the Singapore Customs Ordinance are reserved to the Federal Government—

(1) The power to fix the rate of tax, duty or excise on any class of goods ;

(2) The power to fix by order the value of goods for duty or excise purposes ;

(3) The power to grant exemptions or refunds in respect of duties or excise other than in particular cases where the duty or excise is less than $2,000 in any one instance ;

(4) The power to make regulations both in relation to Customs and Excise.

2. The Federal Government will also have the following powers : —

(1) The power to appoint Federal officers to inspect the Customs and Excise Department, Singapore. Reports would be submitted to the Federal Government direct with a copy to the Singapore Government and the inspecting officers would have the right of access to all documents and records of the Department.

(2) The right of the Federal Minister responsible for Customs to issue directions to the State Government which he considers necessary to ensure the effective collection or protection of Federal customs duties and/or excise.

PART II
INCOME TAX


Powers to be exercised by the Federal Government in relation to collection

(the references are to the Singapore Income Tax Ordinance)

Section 3A
The power of the Minister to give the Comptroller-General directions of a general character.

Section 13(2)
The power of the Minister to provide that interest on any loan charged on the public revenue of Singapore or the Federation shall be exempt from tax.

Section 106(1)

(1) The power to vary or revoke the whole or any part of any schedule to the Ordinance.

(2) The power to exempt any person or class of persons from all or any of the provisions of the Ordinance. Powers to be varied

Section 7 The powers of the Malayan Board of Income Tax as at 4th June, 1963, to be retained with the deletion of subsection (3).

Section 19(2)
The Comptroller's powers to vary the rate of capital allowances prescribed for machinery and plant should be transferred to the Comptroller-General

Pioneer Industries Ordinance

Certificates granted by Singapore to be subject to approval of the Federal Minister of Finance.

Industrial Expansion (Relief from Income Tax Ordinance 1959)

Section 5
Orders made by Singapore to be subject to approval of the Federal Minister of Finance.

Income Tax Bills

The powers conferred on the Minister or the Comptroller by any Income Tax Bills introduced between the 1st June, 1963, and the date of formal acceptance of the Heads of Terms of Agreement and enacted prior to Malaysia Day.
Between the date of formal acceptance of the Heads of Terms of Agreement and Malaysia Day the Singapore Government should not introduce any new legislation with respect to matters the subject of that Agreement.

Powers to be retained

Section 4(2)
The Income Tax Department of Singapore shall be subject to detailed inspection by the Comptroller-General in accordance with the existing provisions of Section 4(2) which require the Comptroller and his officers to be subject to the supervision and direction of the Comptroller-General.

Powers to be reserved

The right of the Federal Minister responsible for Income Tax to issue directions to the State Governments which he considers necessary to ensure the effective collection or protection of Income Tax shall be recognised.