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)
- Enacting Power: Section 13(9) of the Income Tax Act
- Commencement / Deemed Operation: Deemed to have come into operation on 15 July 1996
- Order Date (Made): 30 July 1996
- Key Subject Matter: Approval of “Chase Manhattan Bank” as an “approved bank” for Income Tax Act purposes
- Most Relevant Income Tax Provision: Section 13(1)(t) of the Income Tax Act
- Amendment Made: Amends the Income Tax (Approved Banks) (Consolidation) Order (O 32) by deleting specified prior entries
- Singapore Government Gazette Reference: S 353/1996
- Status: Current version as at 27 Mar 2026
What Is This Legislation About?
The Income Tax (Approved Banks) (No. 6) Order 1996 is a short but legally significant instrument. In substance, it is an administrative tax measure that designates a particular financial institution as an “approved bank” for the purposes of the Income Tax Act (Cap. 134). The designation matters because the Income Tax Act confers specific tax treatment on approved banks, tied to the statutory framework in section 13.
Under Singapore’s income tax regime, “approved bank” status is not automatic. It is granted by the Minister for Finance through orders made under the Income Tax Act. This order specifically approves “The Chase Manhattan Bank” as an approved bank, and it also updates the consolidated list of approved banks by amending the Income Tax (Approved Banks) (Consolidation) Order (O 32). The order therefore functions both as a designation instrument and as a housekeeping amendment to keep the approved-bank register current.
For practitioners, the key point is that this is not a general tax policy reform. It is a targeted legal mechanism that affects eligibility for a particular tax provision in section 13(1)(t). As a result, the order’s practical impact is primarily felt in tax computations, compliance documentation, and the availability of the relevant statutory tax treatment for the approved institution.
What Are the Key Provisions?
Section 1 (Citation and commencement): The order may be cited as the Income Tax (Approved Banks) (No. 6) Order 1996. It also provides that it is deemed to have come into operation on 15 July 1996. This “deemed operation” clause is important for tax practitioners because it can affect the period to which the approved-bank status applies. Where tax treatment depends on whether an entity was an approved bank during a relevant period, the deemed commencement date may determine eligibility for the relevant computations.
Section 2 (Approval of an approved bank): This is the core operative provision. The order states that “The Chase Manhattan Bank is hereby approved as an ‘approved bank’ for the purposes of section 13(1)(t) of the Act.” In practical terms, once the order is effective, the bank can rely on its approved-bank designation when applying the relevant section 13(1)(t) tax treatment. The wording “for the purposes of section 13(1)(t)” is a limiting phrase: it ties the approval to the specific statutory provision rather than to the entire Income Tax Act.
Section 3 (Amendment to the consolidation order): The order amends the Income Tax (Approved Banks) (Consolidation) Order (O 32). It does so by deleting certain words that previously referenced “Chase Manhattan Bank N.A.” and “(d) Chemical Bank 22nd April 1974.” This deletion serves two related functions. First, it updates the consolidated list to reflect the correct approved-bank entry for the Chase Manhattan entity. Second, it removes an earlier entry that is no longer intended to remain in the consolidation text as part of the approved-bank schedule.
From a legal drafting and compliance perspective, these deletion amendments matter because practitioners often rely on the consolidation order as the authoritative list. If the consolidation order contains outdated or inconsistent entries, it can create uncertainty for tax filing positions, internal audit, and correspondence with the Inland Revenue Authority of Singapore (IRAS). By expressly deleting the specified words, the order clarifies what should appear in the consolidated instrument.
Enacting formula and making authority: The order is made “in exercise of the powers conferred by section 13(9) of the Income Tax Act.” This confirms that the Minister for Finance has the statutory authority to approve banks and to make orders that affect the operation of section 13. The making clause also records that the order was made on 30 July 1996 by the Permanent Secretary, Ministry of Finance, Singapore (NGIAM TONG DOW). While this is standard formal language, it is relevant for lawyers verifying validity and proper exercise of delegated authority.
How Is This Legislation Structured?
This order is structured as a short instrument with numbered provisions. In the extract provided, it contains:
(1) a citation and commencement provision (Section 1); (2) an approval provision naming the bank and linking it to section 13(1)(t) (Section 2); and (3) an amendment provision that updates the consolidation order by deleting specified entries (Section 3).
There are no “Parts” or complex schedules in the text excerpt. The order’s structure reflects its function: it is designed to make a specific approval and to update the consolidated list. For practitioners, the operative effect is concentrated in Sections 2 and 3, while Section 1 governs timing.
Who Does This Legislation Apply To?
The order applies to The Chase Manhattan Bank (as named) in relation to the Income Tax Act’s approved-bank framework. The approval is expressly “for the purposes of section 13(1)(t).” Accordingly, the practical beneficiaries are the bank itself and any tax reporting or compliance processes that depend on approved-bank status for the relevant statutory treatment.
Although the order is directed at a specific bank, it also applies indirectly to other parties who may interact with the bank’s tax position—such as tax advisers, auditors, and corporate finance teams—because it determines whether the bank can lawfully claim the relevant tax treatment under section 13(1)(t). The amendment to the consolidation order also affects the broader compliance landscape by clarifying which entities should appear in the approved-bank list.
Why Is This Legislation Important?
Even though the Income Tax (Approved Banks) (No. 6) Order 1996 is brief, it is important because it changes the legal status of a named financial institution. In Singapore tax practice, approved-bank designations can be determinative of whether certain tax computations or exemptions apply. For a bank, the difference between being an approved bank and not being one can affect the tax outcome and the defensibility of the tax position.
From an enforcement and audit perspective, the order’s timing and precision are critical. The deemed operation date (15 July 1996) may affect whether the bank’s tax treatment for a particular period is supported by the statutory approval. Lawyers advising on historical tax years, restructuring, or corporate reporting need to consider whether the approval was effective for the relevant dates and whether the consolidation order reflects the correct approved-bank entry at the time of filing.
Finally, the amendment to the consolidation order highlights a practical legal point: consolidated instruments are often treated as the “single source of truth” for approved-bank status. By deleting specific prior entries, this order reduces ambiguity and helps ensure that the approved-bank list remains consistent with the Minister’s latest approvals. For practitioners, this reduces the risk of relying on outdated names (for example, “Chase Manhattan Bank N.A.”) when preparing submissions, responding to IRAS queries, or documenting eligibility for section 13(1)(t) treatment.
Related Legislation
- Income Tax Act (Cap. 134) — in particular, section 13(1)(t) and section 13(9)
- Income Tax (Approved Banks) (Consolidation) Order (O 32) — amended by this Order
- Income Tax (Approved Banks) (Consolidation) Order (as amended by subsequent/related Gazette instruments referenced in the 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.