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Public consultation on changes to Income Tax Act launched

Proposed changes include extending the Productivity and Innovation Credit scheme and tax deduction for research and development, says the Ministry of Finance.

SINGAPORE: Members of the public are invited to give feedback on the proposed amendments to the Income Tax Act starting Friday (July 4) till July 24, the Ministry of Finance said.

In a statement on Friday, the ministry said the proposed amendments relate to 14 changes that were announced in the 2014 Budget Statement.

The amendments include the extension of the Productivity and Innovation Credit (PIC) scheme for three years and the introduction of the PIC+ scheme, as well as the extension of tax deductions for research and development.

There are also some refinements to the Income Tax Act, which include additional measures to curb PIC abuse. In this refinement, the Comptroller of Income Tax will be given additional legislative powers to deny PIC benefits arising from abusive arrangements. Penalties will also be imposed on intermediaries that promote or facilitate abusive arrangements for PIC claims.

The detailed consultation documents for the draft Income Tax (Amendment) Bill 2014 are available on the Ministry of Finance's website and the REACH consultation portal. Respondents may send their comments to the ministry directly via its website, email, fax or post.

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