Estate Duty Act 1929

Estate Duty Act 1929

2020 REVISED EDITION

This revised edition incorporates all amendments up to and including 1 December 2021 and comes into operation on 31 December 2021

An Act to provide for the levy of estate duty payable in respect of the estates of deceased persons.

[1 July 1929]

PART 1

PRELIMINARY

Short title

1.  This Act is the Estate Duty Act 1929.

Interpretation

2.  In this Act, unless the context otherwise requires —

“accountable person” means an executor or any other person upon whom there is imposed under the provisions of this Act any duty or liability to deliver to the Commissioner an estate duty return or an estate duty account or to pay any estate duty or to make any other payment leviable in consequence of the death of any person, or from whom any payment under this Act is leviable;

“Commissioner” means the Commissioner of Estate Duties appointed under section 4(1) and includes a Deputy Commissioner of Estate Duties;

“disposition” includes any trust, covenant, agreement or arrangement;

“encumbrances” includes mortgages and terminable charges;

“estate duty” means estate duty leviable under this Act;

“estate duty return” means the return, together with the accounts annexed thereto, determined under section 35;

“executor” means the executor or administrator of a deceased person, and includes, as regards any obligation under this Act —

(a) any person who takes possession of or intermeddles with the property of a deceased person; and

(b) any person who has applied or is entitled to apply to any court for the grant or resealing of probate or letters of administration in respect of the estate of a deceased person;

“interest in expectancy” includes an estate in remainder or reversion and every other future interest whether vested or contingent, but does not include reversions expectant upon the determination of leases;

“notice of assessment” means a notice determined under section 37;

“property” includes movable and immovable property of any kind situate or being in Singapore and the proceeds of sale thereof respectively, and any money or investment for the time being representing the proceeds of sale; and, in the case of a deceased person who was at the time of his death domiciled in Singapore, includes movable property wherever it may be;

“property passing on the death” includes property passing either immediately on the death or after any interval, either certainly or contingently, and either originally or by way of substitutive limitation; and “on the death” includes at a period ascertainable only by reference to the death;

“settled”, when applied to property, means property comprised in a settlement;

“settlement” means any deed, will, agreement for a settlement, or other instrument or any number of instruments, under which any property or any interest therein stands for the time being limited to or in trust for any person or persons by way of succession, and includes any interest in remainder or reversion not disposed of by the settlement and reverting to the settlor;

“will” includes any testamentary instrument.

Application

2A.  This Act shall apply only in relation to persons dying before 15 February 2008.

[13/2008]

Presumptions

3.  For the purpose of this Act —

(a) a person shall be deemed competent to dispose of property if he has such an estate or interest therein or such general power as would, if he were sui juris, enable him to dispose of the property; and “general power” includes every power or authority enabling the donee or other holder thereof to appoint or dispose of property as he thinks fit, whether exercisable by instrument inter vivos or by will, or both, but exclusive of any power exercisable in a fiduciary capacity under a disposition not made by himself or as mortgagee;

(b) a disposition taking effect out of the interest of the deceased person shall be deemed to have been made by him, whether the concurrence of any other person was or was not required; and

(c) money which a person has a general power to charge on property shall be deemed to be property of which he has power to dispose.

Appointment of Commissioner, etc.

4.—(1)  The Minister may appoint an officer to carry out the provisions of this Act, to be called the Commissioner of Estate Duties and such number of Deputy Commissioners of Estate Duties as he thinks fit.

[Act 5 of 2025 wef 09/03/2025]

(2)  A Deputy Commissioner of Estate Duties shall have all the powers conferred by this Act on the Commissioner.

(3)  The Commissioner shall be responsible for the recovery of all estate duty, interest and penalties payable under the provisions of this Act and shall pay all amounts collected in respect thereof into the Consolidated Fund.

(4)  The Commissioner may in writing, authorise any officer to perform or to assist in the performance of any duty imposed or to exercise any power conferred upon the Commissioner by this Act.

[Act 5 of 2025 wef 09/03/2025]

(5)  An appointment under subsection (1) must be published in the Gazette.

[Act 5 of 2025 wef 09/03/2025]

PART 2

ESTATE DUTY

Estate duty imposed

5.  Except as expressly provided in this Act, there shall be levied and paid upon the principal value, ascertained as provided in this Act, of all property settled or not settled which passes on the death of any person a duty, called estate duty, at the following rates:

(a) in the case of any person dying on or after 1 April 1974 and before 1 April 1977 — at the graduated rates set out in the First Schedule;

(b) in the case of any person dying on or after 1 April 1977 and before 1 April 1979 — at the graduated rates set out in the Second Schedule;

(c) in the case of any person dying on or after 1 April 1979 and before 1 April 1984 — at the graduated rates set out in the Third Schedule;

(d) in the case of any person dying on or after 1 April 1984 and before 28 February 1996 — at the rates specified in the Fourth Schedule;

(e) in the case of any person dying on or after 28 February 1996 and before 15 February 2008 — at the rates specified in the Fifth Schedule.

[13/2008]

Remission of estate duty

6.—(1)  Where the principal value, as ascertained in accordance with the provisions of this Act, of all property which passes on the death of a person on or after 8 March 1972 and before 1 April 1974, is —

(a) $25,000 or less, the estate duty payable in respect of that property shall be remitted in full; and

(b) more than $25,000, that part of the estate duty payable in respect of such property which is in excess of the amount equivalent to the difference between the principal value of such property and the amount of $25,000 shall be remitted as in the following formula:

	where A	is the amount of the estate duty payable on the principal value of the property;
	B	is the amount by which the value of the estate exceeds $25,000; and
	C	is the amount of the estate duty to be remitted.

(2)  Where the principal value, as ascertained in accordance with the provisions of this Act, of all property which passes on the death of a person on or after 1 April 1974 and before 1 April 1977 exceeds $50,000, there shall be allowed in respect of that excess a remission of estate duty at the rates set out in the Seventh Schedule.

(3)  There shall be allowed in respect of the principal value, as ascertained in accordance with the provisions of this Act, of all property which passes on the death of a person on or after 1 April 1977 and before 1 April 1984 a remission of estate duty at the rates set out in the Eighth Schedule.

Property deemed to pass

7.—(1)  Property passing on the death of the deceased shall be deemed to include the following property:

(a) property of which the deceased was at the time of his death competent to dispose;

(b) property in which the deceased or any other person had an interest ceasing on the death of the deceased, to the extent to which a benefit accrues or arises by the cesser of such interest; inclusive of property the estate or interest in which has been surrendered, assured, divested or otherwise disposed of, whether for value or not, to or for the benefit of any person entitled to an estate or interest in remainder or reversion in such property, unless that surrender, assurance, divesting or disposition was bona fide made or effected 5 years before the death of the deceased, and bona fide possession and enjoyment of the property was assumed thereunder immediately upon the surrender, assurance, divesting or disposition, and thenceforward retained to the entire exclusion of the person who had the estate or interest limited to cease as aforesaid, and of any benefit to him by contract or otherwise; but exclusive of property the interest in which of the deceased or other person was only an interest as holder of an office or as recipient of the benefits of a charity or as a corporation sole;

(c) property taken as a donatio mortis causa made by the deceased or taken under a disposition made by him, purporting to operate as an immediate gift inter vivos, whether by way of transfer, delivery, declaration of trust, or otherwise, which shall not have been bona fide made 5 years before his death, or taken under any gift, whenever made, of which bona fide possession and enjoyment shall not have been assumed by the donee immediately upon the gift and thenceforward retained to the entire exclusion of the donor or of any benefit to him by contract or otherwise, subject to the following provisions:

(i) in the case of any gift inter vivos made for public or charitable purposes, the words “5 years” in this paragraph shall be read as “12 months”;

(ii) nothing in this paragraph shall apply to gifts inter vivos which are made in consideration of marriage, or which are made to the Government or any institution of a public character within the meaning of the Charities Act 1994, or which are proved to the satisfaction of the Commissioner to have been part of the normal expenditure of the deceased and to have been reasonable having regard to the amount of his income or to the circumstances, or which in the case of any donee do not exceed in the aggregate $1,000 in value or amount;

(d) property which the deceased, having been absolutely entitled thereto, has caused to be transferred to or vested in himself and any other person jointly, whether by disposition or otherwise, including also any purchase or investment effected by the deceased alone or in concert or by arrangement with any other person, so that the beneficial interest therein or in some part thereof passes or accrues by survivorship on his death to such other person;

(e) property passing under any past or future settlement made by the deceased by deed or any other instrument not taking effect as a will, whereby an interest in such property, or the proceeds of sale thereof, for life or any other period determinable by reference to death is reserved, either expressly or by implication, to the settlor, or whereby the settlor may have reserved to himself the right by the exercise of any power to restore to himself, or to reclaim the absolute interest in such property or the proceeds of sale thereof;

(f) money received under a policy of assurance effected by the deceased on his life where the policy is wholly kept up by him for the benefit of a donee, whether nominee or assignee, or a part of such money in proportion to the premiums paid by him, where the policy is partially kept up by the deceased for such benefit;

(g) any annuity or other interest purchased or provided by the deceased either by himself alone or in concert or by arrangement with any other person, to the extent of the beneficial interest accruing or arising by survivorship or otherwise on the death of the deceased.

[10/2007]

(2)  Where an annuity or other interest referred to in subsection (1)(g) has been purchased or provided by the deceased, either by himself alone or in concert or by arrangement with any other person, the extent of any beneficial interest therein accruing or arising by survivorship or otherwise on the death of the deceased shall be ascertained, and shall be deemed always to be ascertainable without regard to any interest in expectancy the beneficiary may have had therein before the death.

Property not deemed to pass

8.—(1)  Property passing on the death of the deceased shall not be deemed to include property held by the deceased as trustee for another person, under a disposition not made by the deceased or under a disposition made by the deceased more than 5 years before his death where possession and enjoyment of the property was bona fide assumed by the beneficiary immediately upon the creation of the trust and thenceforward retained to the entire exclusion of the deceased or of any benefit to him by contract or otherwise.

(2)  In the case of a disposition made for public or charitable purposes, the words “5 years” in subsection (1) shall be read as “12 months”.

(3)  In the case of settled property, where the interest of any person under the settlement fails or determines by reason of his death before it becomes an interest in possession, and subsequent limitations under the settlement continue to subsist, the property shall not be deemed to pass on his death.

(4)  Where by a disposition of any property an interest is conferred on any person other than the disponer for the life of that person or determinable on his death, and that person enters into possession of the interest and thenceforward retains possession thereof to the entire exclusion of the disponer or of any benefit to him by contract or otherwise, and the only benefit which the disponer retains in the property is subject to such life or determinable interest, and no other interest is created by that disposition, then, on the death of that person, the property shall not be deemed to pass by reason only of its reverter to the disponer in his lifetime.

(5)  Where, by a disposition of any property, the interest mentioned in subsection (4) is conferred on 2 or more persons, either severally or jointly, or in succession, that subsection shall apply in like manner as where the interest is conferred on one person.

(6)  Subsections (4) and (5) shall not apply where such person or persons taking such life or determinable interest had at any time prior to the disposition been himself or themselves competent to dispose of such property.

Transactions for money consideration

9.—(1)  Estate duty shall not be payable in respect of —

(a) property passing on the death of the deceased by reason only of a bona fide purchase from the person under whose disposition the property passes;

(b) the falling into possession of the reversion on any lease for lives; or

(c) the determination of any annuity for lives,

where the purchase was made, or the lease or annuity granted, for full consideration in money or money’s worth paid to the vendor or grantor for his own use or benefit, or in the case of a lease for the use or benefit of any person for whom the grantor was a trustee.

(2)  Where such purchase was made, or such lease or annuity granted, for partial consideration in money or money’s worth paid to the vendor or grantor for his own use or benefit, or in the case of a lease, for the use or benefit of any person for whom the grantor was a trustee, the value of the consideration shall be allowed as a deduction from the value of the property for the purpose of estate duty.

Duty not payable in respect of small annuities and widows’ and orphans’ pensions

10.—(1)  Estate duty shall not be payable in respect of a single annuity not exceeding $200 purchased or provided by the deceased either by himself alone or in concert or arrangement with any other person for the life of himself and of some other person and the survivor of them, or to arise on his own death in favour of some other person.

(2)  If in any case there is more than one such annuity, the annuity first granted shall alone be entitled to the exemption granted under subsection (1).

(3)  Estate duty shall not be payable in respect of any pension granted under the Widows’ and Orphans’ Pension Act 1904 nor in respect of any pension or annuity payable by the government of any part of the Commonwealth to the widow or child of any deceased officer of that government, notwithstanding that the deceased contributed during his lifetime to any fund out of which that pension or annuity is paid.

Duty not payable for person not domiciled or resident in respect of certain property

11.—(1)  Estate duty shall not be payable in respect of the following property in Singapore passing on the death of any person dying on or after 1 April 1982 and before 1 January 2002 who at the time of his death was neither domiciled nor resident in Singapore:

(a) deposits and balances with Asian Currency Units of approved banks;

(b) negotiable certificates of deposits issued by Asian Currency Units of approved banks;

(c) Asian Dollar Bonds which have been approved by the Minister for exemption from estate duty;

(d) bonds, stocks and securities issued by the Government which have been approved by the Minister for exemption from estate duty;

(e) gold in whatever state or form deposited with approved banks;

(f) deposits and balances in gold savings account with approved banks;

(g) gold certificates issued by approved banks;

(h) deposits and balances with futures members of the Singapore Exchange where such deposits and balances are in respect of transactions which qualify for the concessionary rate of tax under section 43D of the Income Tax Act 1947 as in force before 29 December 2016.

(2)  Estate duty shall not be payable in respect of any movable property passing on the death of any person dying on or after 1 January 2002 who at the time of his death was not domiciled in Singapore.

(3)  For the purposes of this section —

(a) “approved banks” means approved banks within the meaning of section 13(16) of the Income Tax Act 1947; and

(b) a deceased person shall be treated as resident in Singapore if during the period of 12 months ending on the date of his death he had —

(i) resided in Singapore notwithstanding any temporary absences abroad; or

(ii) spent in the aggregate 183 days in Singapore.

Bequests to Government or institutions of public character

12.—(1)  No estate duty shall be payable in respect of the amount of a bequest to the Government or any institution of a public character within the meaning of the Charities Act 1994 and the value of the property passing on the death of the donor of the bequest shall be deemed not to include the amount thereof for the purpose of assessing the rate of estate duty.

[10/2007]

(2)  No estate duty shall be payable in respect of any monument that is the subject of a preservation order made under section 11 of the Preservation of Monuments Act 2009.

Gifts to Government or institutions of public character

12A.—(1)  No estate duty shall be payable in respect of any gift of any property passing on the death of a person to the Government or any institution of a public character within the meaning of the Charities Act 1994 where the gift —

(a) is made on or after 1 January 2002 but before the issue of a notice of assessment by the Commissioner under section 37;

(b) is not any property which is deemed as property passing on the death of the person under section 7(1)(c); and

(c) has been accepted by the Government or the institution of a public character, as the case may be,

and the value of the property passing on the death of the person shall be deemed not to include the value of the gift for the purpose of assessing the rate of estate duty.

[10/2007]

(2)  For the purpose of subsection (1), the value of any gift of any property passing on the death of a person shall be the market value of the gift at the time of the death of the person.

Gifts to approved museum

13.—(1)  No estate duty shall be payable in respect of any gift inter vivos of —

(a) money; or

(b) any other approved gift,

made on or after 1 April 1987 to any approved museum.

(2)  In this section, “approved” means approved by the Minister or such person as he may appoint.

Dwelling houses and all other property

14.—(1)  Subject to this section, estate duty shall not be payable, in the case of a person dying on or after 1 April 1979 and before 1 April 1982, to the extent of —

(a) the amount prescribed of the aggregate value of the deceased’s interest in a dwelling house or dwelling houses, whether occupied by the deceased or not; and

(b) $100,000 of the aggregate value of all other property, including any dwelling house which does not qualify for relief under paragraph (a),

and the amount thereof shall not form part of the principal value of the estate chargeable with estate duty of any deceased person.

(2)  Subject to this section, estate duty shall not be payable, in the case of a person dying on or after 1 April 1982 and before 1 April 1984, to the extent of —

(a) the amount prescribed of the aggregate value of the deceased’s interest in a dwelling house or dwelling houses or, where the deceased has an interest in any dwelling house which exceeds the amount prescribed, the value of that interest, whether the dwelling house was occupied by the deceased or not;

(b) $100,000 of the aggregate value of all other property, including any interest in any dwelling house which does not qualify for relief under paragraph (a); and

(c) the excess over $100,000, if any, of the aggregate amount standing to the credit of the deceased at the time of his death in the Central Provident Fund and in any designated pension or provident fund, except that no contributions, and the interest thereon, made by the deceased on or after 1 April 1982 to the Central Provident Fund or to any designated pension or provident fund shall qualify for relief under this paragraph unless the contributions were deductible by the deceased under section 39(2)(g) of the Income Tax Act 1947,

and the amount thereof shall not form part of the principal value of the estate chargeable with estate duty of any deceased person.

(3)  Subject to this section, estate duty shall not be payable, in the case of a person dying on or after 1 April 1984 and before 28 February 1996, to the extent of —

(a) the amount prescribed of the aggregate value of the deceased’s interest in a dwelling house or dwelling houses, whether occupied by the deceased or not;

(b) $500,000 of the aggregate value of all other property, including any interest in any dwelling house which does not qualify for relief under paragraph (a); and

(c) the excess over $500,000, if any, of the aggregate amount standing to the credit of the deceased at the time of his death in the Central Provident Fund or in any designated pension or provident fund except that no contributions (and the interest thereon) made by the deceased —

(i) on or after 1 April 1982 to the Central Provident Fund or to any designated pension or provident fund; or

(ii) on or after 1 August 1986 to the Central Provident Fund on his own account while carrying on a trade, business, profession or vocation,

shall qualify for relief under this paragraph unless the contributions were deductible by the deceased under section 39(2)(g) or (h) of the Income Tax Act 1947,

and the amount thereof shall not form part of the principal value of the estate chargeable with estate duty of any deceased person.

(4)  Subject to this section, estate duty shall not be payable, in the case of a person dying on or after 28 February 1996, to the extent of —

(a) the amount prescribed of the aggregate value of the deceased’s interest in a dwelling house or dwelling houses, whether occupied by the deceased or not;

(b) $600,000 of the aggregate value of all other property, including any interest in any dwelling house which does not qualify for relief under paragraph (a); and

(c) the excess over $600,000, if any, of the aggregate amount standing to the credit of the deceased at the time of his death in the Central Provident Fund or in any designated pension or provident fund except that no contributions (and the interest thereon) made by the deceased —

(i) on or after 1 April 1982 to the Central Provident Fund or to any designated pension or provident fund; or

(ii) on or after 1 August 1986 to the Central Provident Fund on his own account while carrying on a trade, business, profession or vocation,

shall qualify for relief under this paragraph unless the contributions were deductible by the deceased under section 39(2)(g) or (h) of the Income Tax Act 1947,

and the amount thereof shall not form part of the principal value of the estate chargeable with estate duty of any deceased person.

(5)  Where the value of the interest in any dwelling house or dwelling houses which qualifies for relief under subsection (1)(a), (2)(a), (3)(a) or (4)(a) exceeds the amount prescribed, the excess value shall not qualify for relief under subsection (1)(b), (2)(b), (3)(b) or (4)(b).

(6)  Any dwelling house —

(a) used wholly or partly for the purposes of any trade, business, profession or vocation by any person at the time of death of the deceased; or

(b) passing on the death of the deceased by virtue of section 7(1)(c),

shall not qualify for relief under subsection (1)(a), (2)(a), (3)(a) or (4)(a).

(7)  In the case of a person dying on or after 25 February 2000, subsection (6)(a) shall not apply to any dwelling house which at the time of his death was used by any person partly for the purposes of any trade, business, profession or vocation —

(a) approved under the Home Office Scheme by the Urban Redevelopment Authority or the Housing and Development Board; or

(b) allowed under the small business guidelines of the Urban Redevelopment Authority or the Housing and Development Board.

(8)  In this section —

“amount prescribed”  —

(a) in relation to a person dying on or after 1 April 1979 and before 1 January 1981, is $200,000;

(b) in relation to a person dying on or after 1 January 1981 and before 1 April 1984, is $600,000;

(c) in relation to a person dying on or after 1 April 1984 and before 28 February 1996, is $3 million;

(d) in relation to a person dying on or after 28 February 1996, is $9 million;

“Central Provident Fund” means the Central Provident Fund established under the Central Provident Fund Act 1953;

“designated pension or provident fund” means an approved pension or provident fund within the meaning of section 39(2)(g) of the Income Tax Act 1947;

“dwelling house” includes any building or tenement, or any part thereof, which is used, constructed or adapted to be used for human habitation; but does not include any dwelling house used wholly or partly as a hostel or quarters or for such other purpose as may be prescribed.

(9)  For the purposes of this section where the deceased has 2 or more dwelling houses the value of each of which exceeds the amount prescribed, the greater value shall qualify for the relief under subsection (2)(a).

Property of national, scientific, etc., interest given for public purposes

15.—(1)  The Commissioner may remit the estate duty in respect of such pictures, books, prints, manuscripts, works of art or scientific collection as appear to him to be of national, scientific, artistic or historic interest and to be given or bequeathed for national purposes or to any university.

(2)  No property, the duty in respect of which is so remitted, shall be aggregated with any other property for the purpose of fixing the rate of estate duty.

Property on enlargement of settlor’s interests

16.  Where property is settled by a person on himself for life, and after his death on any other persons with an ultimate reversion of an absolute interest or absolute power of disposition to the settlor, the property shall not be deemed to pass to the settlor on the death of any such other person by reason only that the settlor, being then in possession of the property as tenant for life, becomes in consequence of the death entitled to the immediate reversion or acquires an absolute power to dispose of the whole property.

Relief in respect of certain life interests

17.  Where estate duty has been paid under this Act or under any previous written law relating to estate duty in respect of any settled property, since the date of the settlement, upon the death of one of the parties to a marriage, no further estate duty shall be levied in respect of that property upon the death of the other party to the marriage, unless such other party was at the time of his death, or had been during the continuance of the settlement, competent to dispose of that property.

PART 3

COMPANIES

Interpretation of this Part

18.  In this Part —

“company to which this Part applies” means any body corporate wherever incorporated, which either —

(a) is so constituted as not to be controlled by its shareholders or by any class thereof; or

(b) has not issued to the public, or in the case of a company which is about to make an issue of shares to the public, will not, when it has made that issue, have issued to the public, more than half of the shares by the holders whereof it is controlled;

“share” includes any interest in a company, by whatsoever name it is called, analogous to a share, and “shareholder” shall be construed accordingly;

“preference share” means a share the holder of which is entitled to a dividend at a fixed rate only;

“value of the total assets of the company” means the principal value, ascertained in accordance with section 24, of all the assets of the company as a going concern, including goodwill, after deducting therefrom —

(a) the principal value so ascertained of any debentures, debenture stock and preference shares of the company;

(b) all debts of the company incurred or created bona fide for consideration in money or money’s worth;

(c) such sum as on a just and fair computation represents any future or contingent liabilities thereof which are uncertain in amount; and

(d) the amount of any reserve fund separately invested which is bona fide intended to be applied in payment of pensions to employees or otherwise for the benefit of them or their dependants or relatives, and in no other manner.

Transfer of assets to certain companies

19.—(1)  On the death after 22 April 1940 of any person who has at any time after 1 January 1925 —

(a) made to a company to which this Part applies, directly or indirectly, any such transfer as is specified in subsection (5); and

(b) received within the prescribed period out of the resources or at the expense of the company, directly or indirectly any such benefit as is so specified,

there shall be computed for each accounting year falling wholly or partly within the prescribed period the proportion which the total value of the benefits so received in the accounting year bears to the total income of the company in the accounting year, and, if the average of the proportions so computed exceeds 50%, there shall, for the purposes of estate duty, be deemed to pass on the death (over and above any other property which passes or is deemed to pass thereon), such sum of money, not exceeding the value of the total assets of the company, as bears to that value the same proportion as that average proportion.

(2)  The sum computed under subsection (1) shall be reduced by the amount, if any, by which the principal value at the date of death —

(a) of the subject of the transfer; or

(b) if the subject of the transfer has been sold or exchanged by the company either of the subject of the transfer or of the property in the hands of the company which is or represents the proceeds of the sale or exchange,

is shown to the satisfaction of the Commissioner to fall short of that sum.

(3)  Notwithstanding anything in this section, the value of any property or any interest in property shall not be taken into account, directly or indirectly, for the purpose of assessment of estate duty more than once on the same death.

(4)  If the total assets of the company comprise any property which is by virtue of section 20 deemed to pass on the death, there shall, in computing those proportions and ascertaining the sum of money, if any, which is deemed to pass by virtue of this section, be subtracted —

(a) from the value of the total assets of the company, the value of that property as ascertained for the purposes of section 20; and

(b) from the total income of the company in every accounting year and also from the total value of the benefits received by the deceased therein, a sum equal to so much of that total income as is ascribable to —

(i) that property; or

(ii) in a case where that property is deemed to pass as being or representing the proceeds of any other property, that other property or the proceeds thereof or any property representing those proceeds.

(5)  The transfers referred to in subsection (1) are transfers, whether made for consideration or not, of property (being property which, if it had been in the disposition of the deceased at his death, would have been property in respect of which estate duty would have been payable on the death) or any interest in any such property, other than —

(a) transfers on bona fide sales where the consideration for the sale was received or receivable wholly by the deceased for his own use or benefit and was satisfied or to be satisfied in one or more of the following manners, that is to say, by a capital sum of a fixed amount or by shares in or debentures of the company;

(b) transfers of or incidental to the transfer of a business, not being a business which substantially consists in holding, managing, developing or dealing in land situate in Singapore;

(c) transfers of, or of any interest in, property which by virtue of section 20 is deemed to pass on the death;

(d) transfers of patents or copyrights, or of any movable tangible property except money and securities; and

(e) transfers where either the deceased or the company is acting in the capacity of trustee, factor, agent, receiver or manager.

(6)  The benefits referred to in subsection (1) are —

(a) any payments made, whether for consideration or not, to or for the benefit of the deceased, other than the following payments:

(i) dividends in respect of shares in the company;

(ii) interest on, and repayments in respect of, money lent to the company;

(iii) payments of or on account of purchase money under a bona fide sale, where that purchase money is a capital sum of a fixed amount;

(iv) payments of or on account of royalties, not being royalties limited to cease at the death of the deceased; and

(b) any right in or enjoyment of any land.

(7)  In ascertaining for the purposes of this section the value of a benefit —

(a) in the case of a benefit consisting of a payment, a deduction shall be made in respect of any tax already paid or borne by the deceased in respect of that payment; and

(b) the value of a benefit consisting of any right in or enjoyment of land shall be computed by reference to the annual value of that land, due allowance being made in respect of any rent paid by the deceased.

(8)  In ascertaining for the purposes of this section the total income for any accounting year of a company, the income of the company from any source shall be computed and the computation shall be made by reference to the actual income for the accounting year and not by reference to the income for any other period subject to the following provisions:

(a) no deduction shall be made in respect of any payment made to or for the benefit of, or any other benefit accorded to, the deceased, except dividends on preference shares and interest on money lent to the company;

(b) subject to paragraph (a), deductions shall be made for —

(i) taxes paid or borne by the company;

(ii) interest on money lent to the company;

(iii) dividends on preference shares; and

(iv) rents, royalties and other payments by the company.

(9)  Where the accounting years falling wholly or partly within the prescribed period do not coincide with the periods for which the accounts of the company are made up, the Commissioner may, for the purpose of ascertaining the total income of the company for an accounting year, divide any of those periods and make such apportionments and aggregations of the income of the company as may be necessary, so, however, that any apportionments so made shall be made in proportion to the number of months or fractions of months in the respective periods for which the apportionment is made.

(10)  In this section —

“accounting year”  —

(a) in relation to a company which at the time of the death of the deceased person has made up accounts for a period of 12 months ending on a date within the 12 months next preceding the death, means a period of 12 months ending either on that date, or on the same day of the year in any previous year; and

(b) in relation to any other company, means a period of 12 months ending on such date within the 12 months next preceding the death as may be determined by the Commissioner or on the same day of the year in any previous year;

“prescribed period” means the period which —

(a) ends on the date on which the last accounting year ends; and

(b) begins 3 years before that date, or, if the company in question was not then in existence, on the day on which the company came into existence.

Transfer of settled property to certain companies

20.—(1)  Where, at any time before the death of a person dying after 22 April 1940, any property in which the deceased had an estate or interest limited to cease at his death was transferred by the deceased and the person interested in the remainder or reversion, directly or indirectly and by one or more transactions, to or for the benefit of a company to which this Part applies, then unless —

(a) the transfer was made before 1 January 1925;

(b) the property was settled property and the interest of the deceased would in any case have failed by reason of his death before it would have become an interest in possession;

(c) the share of the consideration payable to the deceased in respect of the transfer was satisfied otherwise than by an allotment of shares in the company or the grant to him by the company of an annuity or other right to receive periodical payments, not being payments on account of purchase money being a capital sum of fixed amount; or

(d) the deceased had at least 5 years before his death relinquished all interest in the property and had not at any time within those 5 years the possession or enjoyment (otherwise than under a lease or agreement for a lease at a rack rent) of any part thereof or of any benefit secured to him, whether by contract or otherwise, in relation to the relinquishment of his interest therein, and was not at any time within that period in receipt of or entitled to any payment from the company, otherwise than in respect or on account of debentures or loans or purchase money being a capital sum of a fixed amount,

the property shall be deemed for the purposes of estate duty to pass on the death in like manner as if the estate or interest of the deceased therein had continued until the death.

(2)  Where the property or any part thereof has been bona fide sold or exchanged by the company during the deceased’s lifetime for full consideration in money or money’s worth, the property or so much thereof as has been so sold or exchanged shall not be deemed to pass on the death, but in lieu thereof the proceeds of the sale or exchange, or, as the case may be, the property which, at the time of death, represents those proceeds shall be deemed so to pass.

(3)  In determining the value of any property deemed to pass under this section, there shall be deducted from the principal value thereof —

(a) so much of any sum borrowed by the company as has been applied by the company in the improvement of the property, and has not at the death been repaid by the company;

(b) a sum equal to the capital sum of money paid to the deceased as part of the consideration for the transfer; and

(c) where estate duty is payable in connection with the death on any shares of or debentures in the company, a sum equal to the principal value of such of those shares or debentures as were transferred or allotted to the deceased in consideration of the transfer of the property.

Liability of companies to account for duty

21.—(1)  The estate duty payable in respect of any property which is, by virtue of sections 19 and 20, deemed to pass on the death of any person shall be a debt due from the company concerned to the Government.

(2)  The company concerned shall be accountable for any such duty and shall, for the purpose of raising and paying that duty, have all the powers conferred on accountable persons by this Act and, if the duty or any part thereof is paid by the executor of the deceased, it shall be repaid to him by the company.

(3)  Where on the death of any person a claim for duty arises by virtue of any of the provisions of sections 19 and 20, the company concerned shall notify the Commissioner of the death of that person, and any company wilfully failing to give such a notification shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000.

(4)  The Commissioner may, for the purposes of carrying sections 19, 20 and 22 into effect, require any company to which this Part applies to furnish to him within 2 months copies of such of the balance sheets and profit and loss or income and expenditure accounts, and such other particulars, as the Commissioner may reasonably require.

(5)  If any company fails to comply with subsection (4) —

(a) the company shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000 and every director, manager, secretary or other officer of the company who knowingly and wilfully authorises or permits the failure shall be liable to the like penalty; and

(b) an order may be made against all or any of the directors of the company requiring them to comply with the requirements of the Commissioner.

Valuation by reference to assets

22.—(1)  Where there pass on the death of any person dying after 22 April 1940 any shares (not being preference shares) in any company to which this Part applies, then if either —

(a) there is deemed by virtue of the provisions of this Part to pass on the death a sum of money computed by reference to the value of the total assets of the company; or

(b) the control of the company was immediately before the death in the hands of the deceased,

the principal value of those shares for the purposes of estate duty shall not be ascertained in the manner provided by section 24, but shall be ascertained by reference to the value of the total assets of the company.

(2)  In cases falling within subsection (1)(a), the value of the total assets of the company shall, for the purposes of this section, be deemed to be reduced by the sum of money therein referred to.

(3)  For the purposes of this section, the control of a company shall be deemed to be in the hands of a person if —

(a) by virtue of the shares which he controls he has control of more than half the voting power of the company;

(b) he has by virtue of the provisions in the memorandum of association or articles of the company, or other instrument whatsoever constituting or defining the constitution of the company, the powers of a board of directors or of a governing director or the right to nominate a majority of the directors or the power to veto the appointment of a director, or powers of the like nature; or

(c) he has otherwise the right to receive, or the power to dispose of, more than half of the income of the company.