Clause 5

by inserting, immediately after the word “Act” in the sixth line of subsection (2), the words “and of such regulations as may be prescribed under this Act”;

by deleting subsection (5) and substituting the following subsections:“(5) The expansion income so ascertained shall be compared with the average corresponding income (referred to in this section as the pre-relief income) of the expanding enterprise as determined in subsection (5A) and relief shall be given to the following extent:

where the pre-relief income equals or exceeds the expansion income, no relief shall be given;

where the expansion income exceeds the pre-relief income, the amount of the excess shall not form part of the statutory income of the expanding enterprise for any year of assessment and shall be exempt from tax:Provided that the amount of exempt income shall not, unless the Minister in his discretion otherwise decides, exceed the sum which bears the same proportion to the expansion income as the new capital expenditure on productive equipment bears to the total of such new capital expenditure and the value at original cost of the productive equipment owned or used by the expanding enterprise prior to its expansion.(5A) For the purposes of subsection (5), the average corresponding income of an expanding enterprise, in relation to a certificate issued under section 17, shall be determined by taking one-third of the total of the corresponding income of the expanding enterprise for the 3 years immediately preceding the expansion day specified in that certificate:Provided that where the expanding enterprise has carried on the trade or business to which its certificate relates for less than 3 years immediately prior to its expansion day or where the expanding enterprise has no corresponding income for any of those 3 years, the Minister may specify such amount to be its average corresponding income as he thinks fit.”; and

by deleting subsection (7).