Clause 7

by deleting the words “in respect of its old trade or business” in subsection (1) and substituting the words “from each of its old trades or businesses”;

by inserting, immediately after the words “Income Tax Act” in subsection (2), the words “for capital expenditure incurred for the purposes of each old trade or business”;

by deleting subsection (3) and substituting the following subsections:“(3) Where the tax relief expiry date of an old trade or business of a pioneer enterprise is before the last day of the basis period for any year of assessment, then, for the purpose of determining the income in respect of —

that old trade or business for that year of assessment; and (b)the corresponding new trade or business for the same year of assessment, allowances provided for in sections 16, 17, 18, 18B, 18C, 19, 19A, 19B, 20, 21 and 22 of the Income Tax Act for capital expenditure incurred for the purposes of that old trade or business must be deducted even though no claim for such allowances has been made.(3A) For the purpose of computing the allowances under subsection (3) —

the allowances for that year of assessment must be computed as if the old trade or business of the pioneer enterprise had not been considered to have permanently ceased on the tax relief expiry date in accordance with section 7(a); and

the allowances computed in accordance with paragraph (a) must be apportioned between that old trade or business and that new trade or business in such manner as appears to the Comptroller to be reasonable in the circumstances.”;

by deleting the words “within its tax relief period in respect of any asset used for the purposes of its new trade or business shall, subject to such conditions as the Minister may impose, be deemed, for the purposes of sections 16, 17, 18, 18B, 18C, 19, 19A, 19B, 20, 21 and 22 of the Income Tax Act (Cap. 134), to have been incurred on the day immediately following the last day of its tax relief period” in subsection (5) and substituting the words “whilst it is carrying on an old trade or business in respect of any asset used for the purposes of its corresponding new trade or business are (subject to such conditions as the Minister may impose) considered for the purposes of sections 16, 17, 18, 18B, 18C, 19, 19A, 19B, 20, 21 and 22 of the Income Tax Act, to have been incurred on the day immediately following the tax relief expiry date of the old trade or business”; and

by deleting subsection (8) and substituting the following subsection:“(8) Where —

a pioneer enterprise mentioned in subsection (5) or (7) is the holder of 2 or more pioneer certificates; (b)the tax relief expiry dates of the old trades or businesses relating to those pioneer certificates are different; and

capital expenditure has been incurred in respect of any building, plant or machinery which is jointly used in carrying on those old trades or businesses,then a deduction must not be made in respect of such expenditure under any of the provisions contained in sections 16, 17, 18, 18B, 18C, 19, 19A, 19B, 20, 21 and 22 of the Income Tax Act until after the tax relief expiry date that is later or latest in time.”.