Clause 6

by deleting the words “subsection (5D)” in subsection (5C) and substituting the words “subsections (5D), (5DA), (5E) and (5EB) (whichever is applicable)”;

by inserting, immediately after subsection (5D), the following subsections:“(5DA) The Minister may, on the Minister’s own initiative or on the application of a development and expansion company, amend the company’s certificate by substituting the concessionary rate of tax specified in the certificate in accordance with subsection (5D), with a concessionary rate of either 5% or 10%, and in that event the concessionary rate is the rate as substituted.(5DB) Subsection (5DA) applies whether the development and expansion company was approved as such before, on or after the date of commencement of section 6(b) of the Economic Expansion Incentives (Relief from Income Tax) (Amendment) Act 2018.”;

by deleting the word “In” in subsection (5E) and substituting the words “Subject to subsection (5EA), in”; (d)by inserting, immediately after subsection (5E), the following subsections:“(5EA) The Minister may, on the Minister’s own initiative or on the application of a development and expansion company mentioned in subsection (5E), amend the company’s certificate for any qualifying activity by substituting the rate of tax specified in the certificate in accordance with that subsection (called in this section the initial rate) for expansion income derived from that activity during a part of the tax relief period, with a rate of tax that complies with subsection (5EC) (called in this section the substituted rate).(5EB) Where subsection (5EA) applies, then —

if the date of the substitution is the first day of that part of the tax relief period, the concessionary rate of tax that applies to the expansion income derived from that activity during that part of the tax relief period is the substituted rate; and

if the date of the substitution is not the first day of that part of the tax relief period —

the concessionary rate of tax that applies to the expansion income derived from that activity during the period beginning on the first day of that part of the tax relief period and ending on the day immediately before the date of the substitution is the initial rate; and

the concessionary rate of tax that applies to the expansion income derived from that activity during the balance of that part of the tax relief period is the substituted rate.(5EC) The substituted rate for a part of the tax relief period mentioned in subsection (5EA) is a rate computed by the formula A + B, where —

A is the difference between —

the sum arrived at by totalling the concessionary rate of tax that applies to the company’s expansion income from that activity on the first day of each part of the tax relief period up to and including that part of the tax relief period for that activity, or would have so applied had it not been substituted under subsection (5DA) or (5EA) (as the case may be); and

the sum arrived at by totalling the concessionary rate of tax that applies to the company’s expansion income from that activity on the day immediately before the first day of each part of the tax relief period up to and including that part of the tax relief period for that activity; and

B is either 5% or 10%, as determined by the Minister.”; and

by deleting the words “subsection (5E)” in subsection (5F) and substituting the words “subsections (5E), (5EA), (5EB) and (5EC)”.