Clause 9

by deleting the word “and” at the end of subsection (1)(b);

by deleting the full-stop at the end of paragraph (c) of subsection (1) and substituting the word “; and”, and by inserting immediately thereafter the following paragraph:“(d)on or after 1st June 2011 from —

the sale of a sea-going ship;

the assignment to another of all its rights as the buyer under a contract for the construction of a sea-going ship; or

the sale of all of the issued ordinary shares in a special purpose company of the approved shipping investment enterprise where, at the time of the sale of the shares, the special purpose company owns any sea‑going ship or is the buyer under a contract for the construction of any sea‑going ship.”;

by inserting, immediately after the words “Subsection (1)” in subsection (1A), the words “, in relation to income referred to in paragraph (a), (b) or (c) of that subsection,”;

by deleting the words “income of the type referred to in subsection (1)” in subsection (1A) and substituting the words “such income”;

by inserting, immediately after subsection (1A), the following subsection:“(1AA) Subsection (1)(d) does not apply to —

any income of an approved shipping investment enterprise as a lessor of a sea-going ship under a finance lease that is treated as a sale under section 10D; or

any income of an approved shipping investment enterprise from carrying on a business of trading in sea-going ships or of constructing sea-going ships for sale.”;

by deleting subsection (6) and substituting the following subsections:“(6) Where an approved shipping investment enterprise incurs a loss during the tax exempt period in respect of any activity referred to in paragraphs (a), (b) and (c) of subsection (1), that loss —

shall be deducted in accordance with section 37; and

shall only be deducted against the income referred to in any of those paragraphs, and the balance of such loss shall not be available as a deduction against any other income, except that any balance remaining unabsorbed at the end of the tax exempt period shall be available as a deduction against any other income for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 37.(6A) Where an approved shipping investment enterprise incurs a loss on any sale or assignment referred to in subsection (1)(d) in any basis period falling, in whole or in part, within the tax exempt period, that loss shall only be deducted against the gains derived from another sale or assignment referred to in subsection (1)(d) in that same basis period, and the balance of the loss shall not be available as a deduction against any other income.”; and

by inserting, immediately after the definition of “Singapore ship” in subsection (20), the following definition:“ “special purpose company”, in relation to an approved shipping investment enterprise, means a company that is wholly owned by the enterprise and whose only business or intended business is the chartering or finance leasing of sea-going ships;”.