Statute Details
- Title: Income Tax (Approved Banks) (No. 6) Order 1996
- Act Code: ITA1947-S353-1996
- Type: Subsidiary Legislation (Order)
- Authorising Act: Income Tax Act (Cap. 134)
- Authorising Provision: Section 13(9) of the Income Tax Act
- Enacting Formula: Made by the Minister for Finance in exercise of powers under section 13(9)
- Commencement / Deemed Operation: Deemed to have come into operation on 15 July 1996
- Key Subject Matter: Approval of a bank as an “approved bank” for purposes of section 13(1)(t) of the Income Tax Act
- Key Amendment: Amends the Income Tax (Approved Banks) (Consolidation) Order (O 32) by deleting specified entries
- Most Relevant Named Entity: The Chase Manhattan Bank
- Legislative Instrument No.: S 353/1996
- Status: Current version as at 27 March 2026
What Is This Legislation About?
The Income Tax (Approved Banks) (No. 6) Order 1996 is a short but legally significant instrument within Singapore’s income tax framework. In practical terms, it identifies a particular financial institution—The Chase Manhattan Bank—as an “approved bank” for the purposes of the Income Tax Act. This approval matters because the Income Tax Act provides special tax treatment for approved banks under section 13(1)(t).
Although the Order itself contains only a few operative provisions, it performs two important functions. First, it formally grants “approved bank” status to the specified bank. Second, it updates the consolidated list of approved banks by amending the Income Tax (Approved Banks) (Consolidation) Order (O 32), ensuring that the bank’s inclusion is reflected accurately in the consolidated schedule.
For practitioners, the key point is that this Order is not a general tax code amendment. It is an administrative-tax designation instrument: it changes who qualifies for a particular statutory tax regime by adding (and, through consolidation amendments, correcting) entries in the approved bank list.
What Are the Key Provisions?
Section 1 (Citation and deemed commencement) provides the formal citation and the effective date. The Order may be cited as the “Income Tax (Approved Banks) (No. 6) Order 1996” and is deemed to have come into operation on 15 July 1996. Deemed commencement is important for tax practitioners because it can affect the period to which the approved-bank status applies, including whether tax computations or filings should treat the bank as approved from that earlier date.
Section 2 (Approval of The Chase Manhattan Bank) is the core operative provision. It states that The Chase Manhattan Bank is hereby approved as an “approved bank” for the purposes of section 13(1)(t) of the Income Tax Act. While the extract does not reproduce section 13(1)(t), the legal effect is clear: once approved, the bank becomes eligible for whatever tax treatment section 13(1)(t) confers on approved banks. In practice, this approval can influence how certain income is treated, how deductions or exemptions are applied, and how withholding or other tax mechanics operate—depending on the content of section 13(1)(t).
Section 3 (Amendment to the Approved Banks Consolidation Order) updates the consolidated list. It amends the Income Tax (Approved Banks) (Consolidation) Order (O 32) by deleting specific words and entries. The extract shows deletions relating to “Chase Manhattan Bank N.A.” and an entry referencing “Chemical Bank 22nd April 1974.” The deletion language indicates that the consolidation order contains historical or variant naming entries, and the 1996 No. 6 Order corrects the consolidated record.
From a practitioner’s perspective, this consolidation amendment is not merely clerical. Consolidation orders are often used as the authoritative reference for approved-bank status. If a bank’s name has changed (for example, from “Chase Manhattan Bank N.A.” to “The Chase Manhattan Bank”) or if there are overlapping entries, the consolidation amendment ensures that the correct legal entity and designation appear in the consolidated instrument. This reduces ambiguity when banks rely on their approved status for tax treatment and when tax officers verify eligibility.
How Is This Legislation Structured?
This Order is structured as a short subsidiary legislation instrument with a conventional layout:
(1) Enacting formula—sets out the legal basis for making the Order, namely the powers under section 13(9) of the Income Tax Act.
(2) Operative provisions—three numbered sections:
- Section 1: citation and deemed commencement date.
- Section 2: approval of a named bank as an “approved bank”.
- Section 3: amendment to the consolidation order by deleting specified entries.
(3) Making and signature block—the Order is “Made” on 30 July 1996 and signed by the Permanent Secretary, Ministry of Finance (NGIAM TONG DOW). The making date is distinct from the deemed operation date, which is a common feature in tax-related instruments where administrative processes require later formalisation.
Who Does This Legislation Apply To?
The direct addressee of the approval is The Chase Manhattan Bank. The Order’s legal effect is to designate that bank as an “approved bank” for the purposes of section 13(1)(t) of the Income Tax Act. Accordingly, the bank itself—and any related tax compliance activities it undertakes in Singapore—are the primary parties affected.
However, the Order also indirectly affects other stakeholders involved in tax administration and compliance, including:
- Tax practitioners advising the bank on eligibility for the approved-bank tax regime.
- Tax officers verifying whether the bank qualifies for the relevant statutory treatment.
- Corporate groups and counterparties where tax treatment depends on the approved status of a banking entity (for example, in transactions where tax outcomes hinge on classification).
In terms of scope, the Order is not a general rule for all banks; it is a targeted designation. Only the named bank is approved under this specific instrument, though other banks may have been approved under other “Approved Banks” Orders and reflected in the consolidation order.
Why Is This Legislation Important?
Even though the Income Tax (Approved Banks) (No. 6) Order 1996 is brief, it is important because it determines eligibility for a statutory tax regime. In Singapore tax practice, the term “approved bank” is not merely descriptive—it is a legal classification that can trigger specific tax consequences under the Income Tax Act. For a bank, being properly designated as an approved bank can affect how income is computed and how tax benefits or special treatment are applied.
The Order’s deemed commencement date (15 July 1996) also has practical significance. Tax compliance often involves time-sensitive filings, assessments, and documentation. If a bank’s approved status is deemed to begin earlier than the making date, practitioners must ensure that internal tax positions, accounting records, and any supporting documentation align with the correct effective date.
Finally, the consolidation amendment underscores a key compliance lesson: practitioners should not rely solely on memory or informal references to a bank’s status. Instead, they should check the consolidated approved banks order (O 32) and confirm that the relevant entity is correctly listed. The deletion of “Chase Manhattan Bank N.A.” and the correction of other entries illustrate that approved-bank lists can evolve due to corporate restructuring, naming changes, or administrative updates. Accurate listing reduces disputes and supports defensible tax positions.
Related Legislation
- Income Tax Act (Cap. 134) — in particular:
- Section 13(1)(t) (approved bank tax treatment)
- Section 13(9) (power to make orders approving banks)
- Income Tax (Approved Banks) (Consolidation) Order (O 32) — as amended by this Order
Source Documents
This article provides an overview of the Income Tax (Approved Banks) (No. 6) Order 1996 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.