Clause 19

by deleting the words “year of assessment 2015” in subsection (1)(b) and substituting the words “year of assessment 2020”;

by inserting, immediately after the words “Subject to this section” in subsection (1B), the words “and section 37IC”;

by inserting, immediately after subsection (1B), the following subsection:“(1BA) Subject to this section and section 37IC, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there shall be allowed in respect of all his trades and businesses, in addition to the deduction allowed under subsection (1), a deduction for qualifying intellectual property registration costs incurred for the purposes of those trades and businesses, computed in accordance with the following formula:where A is —

for the year of assessment 2016, the lower of the following:

such costs incurred during the basis period for that year of assessment;

$1,200,000;

for the year of assessment 2017, the lower of the following:

such costs incurred during the basis period for that year of assessment;

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and

for the year of assessment 2018, the lower of the following:

such costs incurred during the basis period for that year of assessment;

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii).”;

by inserting, immediately after subsection (1D), the following subsection:“(1DA) In subsection (1BA) —

if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment shall be substituted with “$800,000”;

if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment shall be substituted with “$400,000”; and

to avoid doubt, no deduction shall be made from the substituted amount in subsection (1BA)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (1BA)(a)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2016, and no deduction shall be made from the substituted amount in subsection (1BA)(c)(ii) of the lower of the amounts specified in subsection (1BA)(b)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2017.”;

by deleting the words “subsections (1A) and (1B)” in subsections (1E) and (1F) and substituting in each case the words “subsections (1A), (1B) and (1BA)”;

by deleting the words “the year of assessment 2015” in subsections (1E) and (1F) and substituting in each case the words “the year of assessment 2018”;

by deleting the words “subsection (1A) or (1B)” wherever they appear in subsections (1E), (1F) and (5A) and substituting in each case the words “subsection (1A), (1B) or (1BA)”; and

by deleting the words “subsection (1), (1A) or (1B)” in subsection (2) and substituting the words “subsection (1), (1A), (1B) or (1BA)”.