Clause 32

by deleting the word “Where” in subsection (1B) and substituting the words “Subject to section 37IC, where”;

by inserting, immediately after subsection (1B), the following subsection:“(1BAA) Subject to section 37IC, where a company carrying on a trade or business incurs during the basis period for the year of assessment 2016, 2017 or 2018 capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there shall, in addition to the writing‑down allowance under subsection (1), be made in respect of all its trades and businesses, a writing‑down allowance computed in accordance with the following formula:where A is —

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

such capital expenditure 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 capital expenditure 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 capital expenditure 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 (1BB), the following subsection:“(1BC) In subsection (1BAA) —

if the company 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 company 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 (1BAA)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (1BAA)(a)(i) and (ii) if the company 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 (1BAA)(c)(ii) of the lower of the amounts specified in subsection (1BAA)(b)(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2017.”;

by deleting the words “year of assessment 2015” in subsection (1C) and substituting the words “year of assessment 2018”;

by deleting the words “subsection (1A) or (1B)” wherever they appear in subsections (1C), (2) and (2E) and substituting in each case the words “subsection (1A), (1B) or (1BAA)”;

by deleting the words “subsections (1A) and (1B)” in subsections (1D), (2D), (2E), (10C), (10D) and (12) and substituting in each case the words “subsections (1A), (1B) and (1BAA)”;

by deleting subsection (10) and substituting the following subsection:“(10) No writing‑down allowance shall be made —

under subsection (1) for any capital expenditure incurred in respect of intellectual property rights acquired after the last day of the basis period for the year of assessment 2020; or

under subsection (2C) for any capital expenditure incurred in respect of intellectual property rights acquired after the last day of the basis period for the year of assessment 2018.”;

by deleting the words “subsections (1), (1A), (1B) and (2C)” wherever they appear in subsection (10A) and substituting in each case the words “subsections (1), (1A), (1B), (1BAA) and (2C)”; and

by inserting, immediately after subsection (11), the following subsection:“(11A) In the definition of “intellectual property rights” in subsection (11), the expressions “trade secret” and “information that has commercial value”, and any work or subject-matter to which the expression “copyright” relates, exclude the following:

information of customers of a trade or business, such as a list of those customers and requirements of those customers, gathered in the course of carrying on that trade or business;

information on work processes (such as standard operating procedures), other than industrial information, or technique, that is likely to assist in the manufacture or processing of goods or materials;

compilation of any information as described in paragraph (a) or (b);

such other matter as the Minister may by regulations prescribe.”.