Clause 5

by deleting the colon appearing at the end of the first proviso to subsection (2) thereof and substituting therefor a full-stop;

by deleting the second proviso to subsection (2) thereof;

by deleting subsection (3) thereof and substituting therefor the following: —“(3) In determining the income of a shipping enterprise —

the capital allowances provided under sections 16, 17, 18, 19, 20, 21 and 22 of this Act shall only be made against the income exempt under the provisions of this section, and the balance of such allowances shall not be available as a deduction against any other income;

a loss incurred by a shipping enterprise in respect of the operation of a Singapore ship for any year shall only be deducted against the income exempt under the provisions of this section, and the balance of such loss shall not be available as a deduction against any other income.”; and

by inserting immediately after subsection (11) thereof the following subsections: —“(12) Where in the basis period for any year of assessment a ship ceases to be a Singapore ship the income derived from the operation of which is exempt under this section, the capital allowances in respect of that ship for that year of assessment and subsequent years shall be calculated on the residue of expenditure or reducing value of the assets after taking into account the capital allowances provided for in sections 16, 17, 18, 19, 20, 21 and 22 of this Act for those years of assessment during which income derived from the operation of the ship was exempt from tax notwithstanding that no claim for such allowances was made.(13) Subsections (3) and (12) of this section shall have effect notwithstanding any other provisions of this Act.”.