Clause 20

by deleting subsection (4) and substituting the following subsection:“(4) For any year of assessment, the amount of relevant deductions that may be allowed to or transferred by a partner of a limited liability partnership shall not exceed —

in the case of a relevant deduction allowed to him under section 35(2), an amount equal to the amount ascertained in accordance with the formulaA − B;

in the case of a relevant deduction allowed to him under section 37(3)(a), an amount equal to the amount ascertained in accordance with the formulaA − B − C;

in the case of a transferred deduction transferred by him, an amount equal to the amount ascertained in accordance with the formulaA − B − C − D; and

in the case of a carry-back deduction allowed to or transferred by him, an amount equal to the amount ascertained in accordance with the formulaA − B − C − D − E,where Ais his contributed capital in that year of assessment;Bis the past relevant deductions already allowed to him;Cis the relevant deduction allowed to him in that year of assessment under section 35(2);Dis the relevant deduction allowed to him in that year of assessment under section 37(3)(a); andEis the transferred deduction transferred by him in that year of assessment.”;

by inserting, immediately after the definition of “activities of the limited liability partnership” in subsection (10), the following definition:“ “carry-back deductions”, in relation to a partner of a limited liability partnership in any year of assessment, means —

any deduction allowed to the partner of any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is made against his assessable income from any other source for the immediate preceding year of assessment under section 37E; or

any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is transferred by him to a spouse under section 37F;”; and

by deleting the definition of “relevant deductions” in subsection (10) and substituting the following definition:“ “relevant deductions”, in relation to a partner of a limited liability partnership, means —

any deduction allowed to the partner under section 35(2) of any allowance arising from any trade, business or profession carried on by the limited liability partnership;

any deduction allowed to the partner under section 37(3)(a) of any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is made against his statutory income from any other source;

any transferred deduction transferred by the partner; or

any carry-back deduction allowed to or transferred by the partner,as the case may be;”.