Clause 33

by deleting the word “or” at the end of subsection (1)(a);

by deleting the words “a subsidiary of the Singapore company that is” in subsection (1)(b) and substituting the words “any one or more subsidiaries of the Singapore company that is or are”;

by deleting the words “directly and” in subsection (1)(b);

by deleting the comma at the end of paragraph (b) of subsection (1) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph:“(c)both the acquiring company and any one or more acquiring subsidiaries,”;

by deleting the words “has incurred” in subsection (1) and substituting the words “incurs or incur”;

by deleting the words “claim a deduction for the capital expenditure” in subsection (1) and substituting the words “claim the deductions specified in subsection (1A)”;

by inserting, immediately after subsection (1), the following subsection:“(1A) The deductions for the purposes of subsection (1) are as follows:

a deduction for the capital expenditure referred to in that subsection; and

a deduction of an amount equivalent to twice the amount of transaction costs incurred for qualifying acquisitions made during the period from 17th February 2012 to 31st March 2015 (both dates inclusive).”;

by deleting the words “or the acquiring subsidiary, as the case may be, owning” wherever they appear in subsection (4)(a) and (c) and substituting in each case the words “and its acquiring subsidiaries owning together in total”;

by deleting the words “the acquiring company or the acquiring subsidiary, as the case may be, owns” wherever they appear in subsection (4)(a) and (c)(i) and substituting in each case the words “such total ownership was”;

by deleting the words “the acquiring company or acquiring subsidiary, as the case may be, continues to own” in subsection (4) and substituting the words “such total ownership is”;

by inserting, immediately after subsection (15), the following subsection:“Deductions allowable in respect of transaction costs claimed(15A) For the purpose of subsection (1), a deduction in respect of transaction costs for qualifying acquisitions of ordinary shares in a target company shall be subject to the following:

the deduction in relation to any transaction costs incurred shall be allowed for —

the year of assessment in which a claim is first made for the deduction allowable in respect of the capital expenditure incurred on the qualifying acquisition to which those transaction costs relate; or

the year of assessment which relates to the basis period in which those transaction costs are incurred,whichever is the later; and

the deduction shall be subject to a limit of $100,000 in transaction costs incurred in relation to all qualifying acquisitions of ordinary shares in all target companies (whether by the acquiring company, or by one or more of its acquiring subsidiaries, or by a combination of both) for which claims are first made in the year of assessment referred to in paragraph (a)(i) for the deductions allowable in respect of capital expenditure incurred on those acquisitions.”;

by deleting sub-paragraph (ii) of subsection (16)(a) and substituting the following sub-paragraphs:“(ii)where the acquisition is made by the acquiring subsidiary, the acquiring subsidiary —

does not carry on a trade or business in Singapore or elsewhere on the date of the acquisition of the shares;

does not claim any deduction for any capital expenditure or transaction costs under this section for that year of assessment or any stamp duty relief under section 15A of the Stamp Duties Act (Cap. 312); and

is on that date wholly owned by the acquiring company —

is wholly owned (whether directly or indirectly) by the acquiring company on that date;

is incorporated for the primary purpose of acquiring and holding shares in other companies;

does not carry on a trade or business in Singapore or elsewhere on that date; and

does not claim any deduction for any capital expenditure or transaction costs under this section for that year of assessment or any stamp duty relief under section 15A of the Stamp Duties Act; and”;

by deleting the words “or a subsidiary wholly and directly owned by the target company” in subsection (16)(a)(iii) and (b)(iii) and substituting in each case the words “, or a subsidiary wholly owned by the target company (directly, in the case of a qualifying acquisition the date of which is before 17th February 2012; or whether directly or indirectly, in the case of a qualifying acquisition the date of which is on or after 17th February 2012)”;

by deleting sub-paragraph (ii) of subsection (16)(b) and substituting the following sub-paragraphs:“(ii)where the acquisition is made by the acquiring subsidiary, the acquiring subsidiary —

does not carry on a trade or business in Singapore or elsewhere on the date of the acquisition of the shares;

does not claim any deduction for any capital expenditure or transaction costs under this section for that year of assessment or any stamp duty relief under section 15A of the Stamp Duties Act; and

is on that date wholly owned by the acquiring company —

is wholly owned (whether directly or indirectly) by the acquiring company on that date;

is incorporated for the primary purpose of acquiring and holding shares in other companies;

does not carry on a trade or business in Singapore or elsewhere on that date; and

does not claim any deduction for any capital expenditure or transaction costs under this section for that year of assessment or any stamp duty relief under section 15A of the Stamp Duties Act;”;

by deleting the words “the acquiring company’s ownership or the acquiring subsidiary’s ownership, as the case may be,” in subsection (17)(a) and substituting the words “the total ownership of the acquiring company and its acquiring subsidiaries”;

by deleting the words “the acquiring company’s ownership or the acquiring subsidiary’s ownership” in subsection (17)(c) and (d) and substituting in each case the words “the total ownership of the acquiring company and its acquiring subsidiaries”;

by inserting, immediately after the words “acquiring subsidiary” in subsection (17)(f), the words “and every intermediate company through which the acquiring subsidiary is indirectly owned by the acquiring company”;

by deleting sub-paragraphs (ii) and (iii) of subsection (17)(f) and substituting the following sub-paragraphs:“(ii)claims a deduction under this section for capital expenditure or transaction costs incurred or claims any stamp duty relief under section 15A of the Stamp Duties Act; or

ceases to be wholly owned by the acquiring company —

directly, in the case of a qualifying acquisition the date of which is before 17th February 2012; and

whether directly or indirectly, in the case of a qualifying acquisition the date of which is on or after 17th February 2012.”;

by inserting, immediately after subsection (19), the following subsection:“(19A) The Minister or such person as he may appoint may, for any particular qualifying acquisition made on or after 17th February 2012, waive the requirement in subsections (16)(a)(i)(D) and (b)(i)(D) and (17)(e) in relation to the ultimate holding company of the acquiring company, subject to such conditions that the Minister or the person he has appointed may impose.”;

by deleting paragraph (b) of subsection (24) and substituting the following paragraph:“(b)to provide for the application of this section to a business trust, subject to such modifications as may be prescribed, including treating, in prescribed circumstances, a business trust and any company whose shares are trust property thereof as companies within a group of companies, and a holding of units in a business trust as a holding of shares in a company;”;

by inserting, immediately after the definition of “Singapore company” in subsection (25), the following definition:“ “transaction costs” means professional fees that are necessarily incurred for the qualifying acquisition of ordinary shares in the target company —

including legal fees, accounting or tax advisor’s fees and valuation fees; but(b)excluding any professional fees (including the fees referred to in paragraph (a)) incurred in respect of loan arrangements and costs incidental thereto, borrowing costs, and stamp duty and any other taxes, incurred for the qualifying acquisition of ordinary shares in the target company;”; and

by inserting, immediately after subsection (28), the following subsection:“(29) In this section, a reference to capital expenditure and transaction costs excludes any such expenditure and costs to the extent that they are or are to be subsidised by grants or subsidies from the Government or a statutory board.”.