Amendments
The e-Tax Guide has been updated with the following changes:
• “Income Tax Act” in Paragraph 2.1 has been amended to “Income Tax Act 1947”
• Editorial changes made to Paragraphs 4.1 and 4.2
• Paragraph 5 is added to clarify the tax treatment of front-end fees
• Footnote 6 is added to paragraph 7.1
• Paragraph 7.2 has been updated to provide an example involving a more recent year (i.e. YA 2022)
• Paragraph 8.2 has been added to provide the administrative procedures for claiming deduction on front-end fees for different types of loans
• Item 3 of Annex 1 has been updated to add “upon maturity or early redemption” to align wording to those used in the Income Tax (Deductible Borrowing Costs) Regulations 2008
• Items 10 and 12 of Annex 1 have been updated to remove the definition of conversion fees prior to YA 2014 and “with effect from YA 2014” as YA 2014 is already time-barred
• Annex 2 is added to provide an example of the application of draw-down condition for front-end fee deduction
