Clause 7

by inserting, immediately after the words “income of a shipping enterprise” in subsections (3) and (5A), the words “from the operation of Singapore ships or foreign ships”;

by inserting, immediately after “19,” in subsections (3)(a) and (11), “19A,”; and

by deleting the definitions of “income of a shipping enterprise” and “operation of Singapore ships” in subsection (16) and substituting the following definition:“ “operation” means —

in relation to a Singapore ship —

the carriage of passengers, mails, livestock or goods outside the limits of the port of Singapore;

towing or salvage operations outside the limits of the port of Singapore;

the charter of the ship for use outside the limits of the port of Singapore; or

for the year of assessment 2007 and subsequent years of assessment, the use outside the limits of the port of Singapore of the ship as a dredger, seismic ship or vessel used for offshore oil or gas activity; and

in relation to a foreign ship, the carriage of passengers, mails, livestock or goods shipped in Singapore, except where such carriage arises solely from transhipment from Singapore;”.