Clause 33

by deleting the words “is allowed one or more deductions or allowances” in subsection (1) and substituting the words “has incurred expenditure for which a deduction or an allowance is allowable or can be made to him”;

by deleting the words “prescribed automation equipment” wherever they appear in subsections (1), (7) and (10) and substituting in each case the words “PIC automation equipment”;

by deleting paragraph (h) of subsection (1) and substituting the following paragraph:“(h)section 19 or 19A(1), (1B), (2), (2A) or (2B), in respect of expenditure incurred on any PIC automation equipment (other than any equipment acquired under a hire-purchase agreement with a payment period that spans over 2 or more basis periods);”;

by deleting the words “in lieu of those deductions or allowances, or any part thereof, which exceeds $1,500, exercise an irrevocable written election for a cash payout computed in accordance with subsection (3) or (4), as the case may be.” in subsection (1) and substituting the following words:“in lieu of one or more deductions or allowances or any part thereof, and in respect of —

the expenditure qualifying for it or them; or

any part of such expenditure,the total amount of which is at least $400 (referred to in this section as the selected expenditure), exercise an irrevocable written election for a cash payout computed in accordance with subsection (3) or (4), as the case may be.”;

by deleting subsections (3) and (4) and substituting the following subsections:“(3) For the year of assessment 2011 and the year of assessment 2012, the amount of cash payout shall be calculated in accordance with the formulawhere A is —

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

the amount of the selected expenditure; and

$200,000; and

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

the amount of the selected expenditure; and

the balance after deducting from $200,000 the lower of the amounts specified in paragraph (a)(i) and (ii).(3A) In subsection (3), the amount under paragraph (a)(ii) shall be substituted with “$100,000” 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 “$100,000” if he does not carry on any trade, profession or business during the basis period for the year of assessment 2011.(4) For the year of assessment 2013, the amount of cash payout shall bewhere A is the lower of the following:

the amount of the selected expenditure; and

$100,000.”;

by deleting “19A(2),” in subsection (7) and substituting “19, 19A(1), (1B), (2),”;

by deleting the words “deduction or allowance allowable in respect of the capital expenditure” in subsection (7) and substituting the words “expenditure qualifying for such deduction or allowance and”;

by deleting subsection (8) and substituting the following subsection:“(8) Notwithstanding subsections (1) and (7), where a qualifying person has incurred capital expenditure —

on the provision of any PIC automation equipment for the purpose of leasing such equipment; or

in acquiring any intellectual property rights in any software for the purpose of licensing all or any part of those rights,he shall not be allowed to exercise an election under subsection (1) in respect of such expenditure.”;

by deleting the words “deduction or allowance referred to in subsection (7)” in subsection (9) and substituting the words “expenditure referred to in subsection (7)”;

by deleting “$600,000” in subsection (9)(a) and substituting “$200,000”;

by deleting paragraph (b) of subsection (9) and substituting the following paragraph:“(b)in the case of the year of assessment 2012, the balance after deducting from $200,000 the amount of the expenditure in respect of which an election was made for the year of assessment 2011;”;

by deleting “$300,000” in subsection (9)(c) and substituting “$100,000”;

by deleting the words “shall not be available as a deduction or an allowance” in subsection (9) and substituting the words “shall not be eligible for a deduction or an allowance”;

by inserting, immediately after subsection (9), the following subsection:“(9A) In subsection (9), the amount under paragraph (a) shall be substituted with “$100,000” 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) shall be substituted with “$100,000” if he does not carry on any trade, profession or business during the basis period for the year of assessment 2011.”;

by deleting the words “section 19A(2),” in subsection (10)(b) and substituting the words “section 19 or 19A(1), (1B), (2),”;

by inserting, immediately after subsection (10), the following subsection:“(10A) The Minister, or such person he may appoint, may waive the application of subsection (10) in respect of an event referred to in paragraph (b) of that subsection in the same circumstances as those referred to in section 19A(2HA).”;

by deleting the comma at the end of paragraph (c) of subsection (11) and substituting a semi-colon, and by inserting immediately thereafter the following paragraph:“(d)all or any part of the intellectual property rights in any software for which the writing-down allowance is granted are licensed to another,”;

by deleting subsection (14) and substituting the following subsections:“(14) If an election has been made under subsection (1) in respect of an amount of expenditure qualifying for a deduction or allowance under section 14, 14A(1), 14D, 14DA(1), 19, 19A(1), (1B) or (2) or 19B(1), the amount of expenditure qualifying for the deduction or allowance under that provision shall, notwithstanding anything in that provision, be reduced by the first-mentioned amount.(14A) If an election has been made under subsection (1) in respect of an amount of expenditure qualifying for a deduction or allowance under section 14A(1A) or (1B), 14DA(2), 14R, 14S, 14T, 19A(2A) or (2B) or 19B(1A) or (1B), the amount of expenditure qualifying for the deduction or allowance under that provision shall, notwithstanding anything in that provision, not exceed the difference between —

the maximum amount of expenditure in respect of which the deduction or allowance may be allowed or made under that provision for the year of assessment in question; and

the first-mentioned amount.”;

by deleting paragraph (a) of subsection (15) and substituting the following paragraph:“(a)in respect of any expenditure that is subsequently found not to qualify for the allowance or deduction referred to in subsection (1);”;

by deleting the words “subsection (14)” in subsection (19) and substituting the words “subsection (14) or (14A)”;

by deleting the words “deduction or allowance” in subsection (19) and substituting the word “expenditure”;

by deleting the formula in subsection (19) and substituting the following formula:“”;

by inserting, immediately after the definition of “local employee” in subsection (21), the following definition:“ “PIC automation equipment” has the same meaning as in section 19A;”; and

by inserting, immediately after the word “trade” in paragraph (a) of the definition of “qualifying person” in subsection (21), the word “, profession”.