Clause 11

Despite section 13, the Comptroller may, subject to section 74 of the Income Tax Act (Cap. 134), make an assessment or additional assessment as described in subsection (2) upon a pioneer enterprise if it appears to the Comptroller that any amount of income of the pioneer enterprise exempted from tax ought not to have been exempted by reason of —

any direction made under section 9; or (b)the revocation under section 99 of a pioneer certificate issued to the pioneer enterprise.(2) The assessment or additional assessment under subsection (1) is at an amount that appears to the Comptroller to be necessary to counteract any profit obtained by the pioneer enterprise from the exempted income.(3) Parts XVII and XVIII of the Income Tax Act (relating to assessments, objections and appeals) and any rules made under that Act apply, with the necessary modifications, to an assessment or additional assessment under subsection (1) as if it were a notice of assessment under those Parts.Carry forward of loss and allowance15.—

Where a pioneer enterprise has at any time —

during its tax relief period for a pioneer product; or

where the pioneer certificate issued to the pioneer enterprise specifies 2 or more pioneer products, during the longer or longest of the tax relief periods for those pioneer products, incurred a loss in the old trade or business in respect of that product or any of those products for any year, that loss must be deducted in accordance with section 37 of the Income Tax Act (Cap. 134) (as applied with the necessary modifications), but only against the income of the pioneer enterprise from that old trade or business as ascertained under section 10.(2) The balance of any such loss which remains unabsorbed on the tax relief expiry date of the old trade or business is available as a deduction for the year of assessment which relates to the basis period in which the tax relief expiry date falls and for any subsequent year of assessment in accordance with section 37 of the Income Tax Act, in the following descending order of priority:

against the statutory income of the pioneer enterprise from the corresponding new trade or business;

against the statutory income of the pioneer enterprise from any other trade or business;

against the statutory income of the pioneer enterprise from any other source.(3) Despite section 7(a), the balance of any allowance as provided for in section 10 which remains unabsorbed on the tax relief expiry date of the old trade or business is available as a deduction for the year of assessment which relates to the basis period in which the tax relief expiry date falls and for any subsequent year of assessment in accordance with section 23 of the Income Tax Act, in the following descending order of priority:

against the statutory income of the pioneer enterprise from the corresponding new trade or business;

against the statutory income of the pioneer enterprise from any other trade or business; (c)against the statutory income of the pioneer enterprise from any other source.”.