Clause 6

by inserting, immediately after subsection (1), the following subsections:“(1A) Notwithstanding any other provision of this Act, where —

a person provides any services in the basis period for the year of assessment 2012 or any subsequent year of assessment under a public‑private partnership arrangement —

that is the subject of a contract entered into between him and the Government or any approved statutory body; and

to which INT FRS 112 applies; and

the person recognises in his financial statements, prepared in accordance with INT FRS 112, that income of a certain amount has been derived from such services,then that amount shall be deemed as income derived by that person from those services for that basis period.(1B) Notwithstanding subsection (1A), the person referred to in that subsection may elect in accordance with subsection (1D) for the Comptroller to assess to tax any deemed income referred to in subsection (1A) from providing any FRS 11 construction or upgrade services under the public-private partnership arrangement, as income derived by him in the basis period in which those services are completed.(1C) Where an election has been made in accordance with subsection (1D), then, notwithstanding any other provision of this Act —

the income referred to in subsection (1B) shall be deemed as income derived by the person in the basis period in which the FRS 11 construction or upgrade services are completed; and

any expenditure for which a deduction or allowance may be allowed or made to him under Parts V and VI in respect of those services shall be treated as having been incurred in that basis period.(1D) The election shall be made by notice in writing to the Comptroller —

at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the person first provides the FRS 11 construction or upgrade services, being the year of assessment 2012 or any subsequent year of assessment; or

at such later time as the Comptroller may allow.(1E) The election made under subsection (1D) shall be irrevocable.”;

by deleting the definitions of “ “FRS 17” and “INT FRS 104” ” in subsection (2) and substituting the following definitions:“ “FRS 11 construction or upgrade services” means any construction or upgrade services (as the case may be) to which FRS 11 applies;“FRS 11”, “FRS 17”, “INT FRS 104” and “INT FRS 112” mean the financial reporting standards known as Financial Reporting Standard 11 (Construction Contracts), Financial Reporting Standard 17 (Leases), Interpretation of Financial Reporting Standard 104 (Determining whether an arrangement contains a lease) and Interpretation of Financial Reporting Standard 112 (Service Concession Arrangements), respectively, issued by the Accounting Standards Council under the Accounting Standards Act (Cap. 2B).”; and

by deleting the word “arrangement” in the section heading and substituting the word “arrangements”.