Clause 6

by deleting the word “registration” in the third line of subsection (1)(b) and substituting the word “registry”; and

by inserting, immediately after subsection (13), the following subsections:“(14) Notwithstanding anything in this section, a shipping enterprise may at any time elect that its income derived or deemed to be derived from the operation of all its Singapore ships shall be taxed at the rate prescribed by section 43(1)(a).(15) An election under subsection (14) shall be made by a shipping enterprise by notice in writing to the Comptroller and shall be irrevocable.(16) Where a shipping enterprise has made an election under subsection (14) —

subsections (1) to (11) shall not apply to the income of the shipping enterprise for the year of assessment immediately following the year in which the election is made and for subsequent years of assessment;

any capital allowances or the balance thereof which were not made against the income of the shipping enterprise exempt under this section for any year of assessment during which its income was exempt from tax shall not be available to be made under section 23 against its income for the year of assessment immediately following the year in which the election is made and for subsequent years of assessment;

any loss or the balance thereof incurred by the shipping enterprise in respect of the operation of a Singapore ship for any year of assessment which was not deducted against its income exempt under this section for any year of assessment during which its income was exempt from tax shall not be available as a deduction under section 37(2)(a) against its income for the year of assessment immediately following the year in which the election is made and for subsequent years of assessment; and

any capital allowances in respect of Singapore ships of the shipping enterprise for the year of assessment immediately following the year in which the election is made and for subsequent years of assessment shall be calculated in accordance with subsection (12) as if the Singapore ships were ships which had ceased to be Singapore ships.”.