Clause 30

by deleting subsections (2A) and (2B) and substituting the following subsections:“(2A) Where a person proves to the satisfaction of the Comptroller that he has incurred capital expenditure during the basis period for the year of assessment 2011 or the year of assessment 2012 on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business carried on by him, there shall be allowed on due claim, in respect of all his trades, professions and businesses, and in addition to the allowance under section 19 or subsection (1), (1B) or (2) (as the case may be), an allowance computed in accordance with the following formula:where A is —

for the year of assessment 2011, the lower of the following:

such capital expenditure incurred during the basis period for that year of assessment; and

$800,000; and

for the year of assessment 2012, the lower of the following:

such capital expenditure incurred during the basis period for that year of assessment; and

the balance after deducting from $800,000 the lower of the amounts specified in paragraph (a)(i) and (ii).(2B) Where a person proves to the satisfaction of the Comptroller that he has incurred capital expenditure during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015 on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business carried on by him, there shall be allowed on due claim, in respect of all his trades, professions and businesses and in addition to the allowance under section 19 or subsection (1), (1B) or (2) (as the case may be), an allowance computed in accordance with the following formula:where A is —

for the year of assessment 2013, the lower of the following:

such capital expenditure incurred during the basis period for that year of assessment; and

$1,200,000;

for the year of assessment 2014, the lower of the following:

such capital expenditure incurred during the basis period for that year of assessment; and

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and

for the year of assessment 2015, the lower of the following:

such capital expenditure incurred during the basis period for that year of assessment; and

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii) and the lower of the amounts specified in paragraph (b)(i) and (ii).(2BA) In subsection (2A), the amount under paragraph (a)(ii) shall be substituted with “$400,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2012, and the balance under paragraph (b)(ii) shall be substituted with “$400,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2011.(2BB) In subsection (2B) —

if the person does not carry on any trade, profession or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment shall be substituted with “$800,000”;

if the person does not carry on any trade, profession or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment shall be substituted with “$400,000”; and

for the avoidance of doubt, no deduction shall be made from the substituted amount in subsection (2B)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (2B)(a)(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2013, and no deduction shall be made from the substituted amount in subsection (2B)(c)(ii) of the lower of the amounts specified in subsection (2B)(b)(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2014.”;

by deleting the words “the amount computed in accordance with subsection (2A) or, in the case of the year of assessment 2011 and the year of assessment 2012, the amounts computed in accordance with subsection (2B)(a) and (b), respectively” in subsections (2D) and (2E) and substituting in each case the words “the amount computed in accordance with subsection (2A) or (2B) (as the case may be) for that year of assessment”;

by inserting, immediately after subsection (2F), the following subsection:“(2FA) Notwithstanding subsections (2A) and (2B), where the PIC automation equipment in question is not prescribed automated equipment under subsection (2), then the allowances claimed under subsections (2A) and (2B) shall be written down in the following manner:

where the person claiming the allowances elects to claim allowances in respect of such equipment under section 19 —

one-fifth of the allowances under subsections (2A) and (2B) shall be allowed for the year of assessment for the basis period during which the expenditure is incurred; and

the balance of the allowances under subsections (2A) and (2B) shall be written down over the number of years of working life of the equipment as specified in the Sixth Schedule;

where the person claiming the allowances elects to claim allowances in respect of such equipment under subsection (1) or (1B), the allowances under subsections (2A) and (2B) shall be written down over 3 years in the case of subsection (1), or over 2 years in the case of subsection (1B), in the same proportions as those in which the allowances under subsection (1) or (1B) (as the case may be) may be made to him over that period of years.”;

by deleting paragraph (a) of subsection (2G) and substituting the following paragraphs:“(a)where a person who has incurred capital expenditure on the provision of any PIC automation equipment (being also a prescribed automation equipment under subsection (2)) elects to claim allowances in respect of such equipment under section 19 —

one-fifth of the allowances claimed under subsections (2A) and (2B) shall be allowed for the year of assessment for the basis period during which the expenditure is incurred; and

the balance of the allowances claimed under subsections (2A) and (2B) shall be written down over the number of years of working life of the equipment as specified in the Sixth Schedule;

by deleting the words “paragraph (a)” in subsection (2G)(b) and substituting the words “paragraph (a) or (aa)”;

by inserting, immediately after subsection (2H), the following subsections:“(2HA) The Minister or such person as he appoints may waive the application of subsection (2H)(b) in the following circumstances:

the capital expenditure incurred on the provision of other PIC automation equipment acquired in the basis period in which the equipment sold, transferred, assigned or leased was acquired, is more than or equal to the amount that applies to the year of assessment to which the basis period relates; or

the Minister or person appointed by him is satisfied that there is a bona fide commercial reason for the sale, transfer, assignment or lease.(2HB) In subsection (2HA), the amount that applies to a year of assessment is the amount set out in —

for the year of assessment 2011, subsection (2A)(a)(ii);

for the year of assessment 2012, subsection (2A)(b)(ii);

for the year of assessment 2013, subsection (2B)(a)(ii);

for the year of assessment 2014, subsection (2B)(b)(ii);

for the year of assessment 2015, subsection (2B)(c)(ii),as modified by subsection (2BA) or (2BB) (as the case may be).”;

by deleting paragraphs (a), (b) and (c) of subsection (14C) and substituting the following paragraphs:“(a)a reference to the amount of the expenditure or payments (after deducting any amount in respect of which an election for a cash payout has been made under section 37I) in section 14D(4) is a reference to the remaining amount of the allowance after deducting the amount of the allowance that corresponds to the capital expenditure in respect of which an election for a cash payout has been made under section 37I;

a reference to the specified amount of the expenditure or payments is a reference to an amount computed in accordance with the formulawhere Ais the remaining amount of the allowance after deducting the amount of the allowance that corresponds to the capital expenditure in respect of which an election for a cash payout has been made under section 37I;Bis the rate of tax specified in section 43(1)(a); andCis —

in a case where the concessionary income derived by the person from the trade or business carried on by him is subject to tax at a single concessionary rate of tax, that rate; or

in a case where the concessionary income derived by the person from the trade or business carried on by him is subject to tax at 2 or more concessionary rates of tax, the higher or highest of those rates; and

a reference to “unabsorbed losses” is a reference to “unabsorbed allowances”.”;

by deleting the words “the Standards, Productivity and Innovation Board or the National University of Singapore” wherever they appear in the definitions of “certified effective chemical hazard control device”, “certified effective chemical hazard control measure”, “certified effective engineering noise control measure”, “certified effective noise control device”, “certified low-decibel machine, equipment or system” and “certified machine, equipment or system which reduces or eliminates exposure to chemical risk” in subsection (15) and substituting in each case the words “any person approved by either the Minister or such person as the Minister may appoint”;

by deleting the words “the Standards, Productivity and Innovation Board” in the definition of “certified energy-saving equipment” in subsection (15) and substituting the words “any person approved by either the Minister or such person as the Minister may appoint”;

by inserting, immediately after the definition of “new vehicle” in subsection (15), the following definition:“ “Productivity and Innovation Credit Scheme automation equipment” or “PIC automation equipment”, in relation to any person, means —

any automation equipment that is prescribed by the Minister for the purposes of subsections (2A) and (2B) and section 14T; or

any automation equipment which the Minister or a person appointed by him has approved as PIC automation equipment for the first-mentioned person;”;

by inserting, immediately after subsection (16), the following subsections:“(17) For the purposes of paragraph (b) of the definition of “PIC automation equipment”, the Minister or the person appointed by him may only approve any automation equipment if the Minister or person is satisfied that the equipment fulfils such criteria as may be prescribed by the Minister.(18) Any rules made under paragraph (a) of the definition of “PIC automation equipment”, and any approval given under paragraph (b) of that definition, may be made to have effect for any year of assessment beginning with the year of assessment 2011.”; and

by deleting the words “prescribed automation equipment” wherever they appear in subsections (2C), (2D), (2E), (2F), (2G)(b), (2H), (2I), (2J), (2K) and (16) and substituting in each case the words “PIC automation equipment”.