Clause 4

by inserting, immediately after subsection (1C), the following subsections:“(1CA) The income of a shipping enterprise referred to in this section includes income derived on or after 1st June 2011 by the shipping enterprise from —

the sale of a Singapore ship or a ship that is provisionally registered under the Merchant Shipping Act (Cap. 179);

the assignment to another of all its rights as the buyer under a contract for the construction of a ship that, at the time of the assignment, is intended to be registered or is provisionally registered under the Merchant Shipping Act; or

the sale of all of the issued ordinary shares in a special purpose company of the shipping enterprise where, at the time of the sale of the shares, the special purpose company —

owns a Singapore ship or a ship that is provisionally registered under the Merchant Shipping Act; or

is the buyer under a contract for the construction of a ship that, at that time, is intended to be registered or is provisionally registered under the Merchant Shipping Act,and the special purpose company does not at that time own any foreign ship, foreign dredger, foreign seismic ship or any foreign vessel used for offshore oil or gas activity.(1CB) The income referred to in subsection (1CA) does not include —

income of the shipping enterprise as a lessor of a ship under a finance lease that is treated as a sale under section 10D; or

income of the shipping enterprise from carrying on a business of trading in ships or of constructing ships for sale.(1CC) For the purposes of subsection (1CA), a ship shall not be regarded as provisionally registered under the Merchant Shipping Act (Cap. 179) if its registry under that Act is closed or deemed to be closed or is suspended.”;

by deleting paragraph (b) of subsection (3) and substituting the following paragraph:“(b)a loss incurred by a shipping enterprise in respect of any activity referred to in subsection (1), (1B) or (1C) for any basis period shall only be deducted against the income from any activity referred to in any of those subsections, and the balance of such loss shall not be available as a deduction against any other income.”;

by inserting, immediately after subsection (3), the following subsection:“(3A) Where a shipping enterprise incurs a loss on any sale or assignment referred to in subsection (1CA) in any basis period, that loss shall only be deducted against the gains derived from another sale or assignment referred to in subsection (1CA) in that same basis period, and the balance of the loss shall not be available as a deduction against any other income.”; and

by deleting the full-stop at the end of the definition of “Singapore ship” in subsection (16) and substituting a semi‑colon, and by inserting immediately thereafter the following definition:“ “special purpose company”, in relation to a shipping enterprise, means a company that is wholly owned by the shipping enterprise and whose only business or intended business is the operation of Singapore ships.”.