Clause 32

by deleting subsections (1A), (1B) and (1C) and substituting the following subsections:“(1A) Subject to the other provisions of this section, a person may, instead of deducting any qualifying deduction for the year of assessment 2020 or 2021 (called in this section the subject YA) in accordance with subsection (1), deduct the qualifying deduction for the subject YA against the person’s assessable income for the 3 years of assessment immediately preceding the subject YA.(1B) A qualifying deduction for the subject YA under subsection (1A) must be deducted in the following order:

the qualifying deduction must first be made against the person’s assessable income for the third year of assessment immediately preceding the subject YA;

any balance of the qualifying deduction after the deduction in paragraph (a) must then be made against the person’s assessable income for the second year of assessment immediately preceding the subject YA;

any balance of the qualifying deduction after the deduction in paragraph (b) must then be made against the person’s assessable income for the year of assessment immediately preceding the subject YA.(1C) Where a person is entitled to make 2 or more of the qualifying deductions set out in the first column of the following table against the person’s assessable income for a particular year of assessment, then the deductions must be made in the order set out in the second column of the table, and each deduction must as far as possible be made against such assessable income (or any balance of such income after an earlier deduction) by the amount set out opposite that deduction in the third column of the table:First column Second columnThird columnA qualifying deduction under subsection (1) FirstFull amount of the qualifying deductionA qualifying deduction for the year of assessment 2020 under subsection (1A) SecondFull amount of the qualifying deduction or its balance as described in subsection (1B)A qualifying deduction for the year of assessment 2021 under subsection (1A) ThirdFull amount of the qualifying deduction or its balance as described in subsection (1B)(1D) Any election made by a person under subsection (6) for the deduction of any qualifying deduction for the year of assessment 2020 to be in accordance with subsection (1A) as in force immediately before 17 February 2021, is treated as an election made for the deduction of such qualifying deduction to be in accordance with subsection (1A) as in force on that date.”;

by inserting, immediately after the words “year of assessment 2020” in subsection (3A), the words “or 2021”;

by deleting paragraph (b) of subsection (3A) and substituting the following paragraph:“(b)the amount of the person’s assessable income for the second‑mentioned year of assessment or any balance of the assessable income as determined in accordance with the table in subsection (1C) against which the deduction may be made.”;

by deleting subsection (8A) and substituting the following subsection:“(8A) Despite subsection (8), where the Comptroller discovers that any deduction made under subsection (1A) of any qualifying deduction for a subject YA against the assessable income of a person for the year of assessment 2017, 2018, 2019 or 2020 (whichever is applicable) has become excessive, the Comptroller may make an assessment on the person on the amount which, in the Comptroller’s opinion, ought to have been charged to tax in the year of assessment 2017, 2018, 2019 or 2020, as the case may be —

in the case of a qualifying deduction for the year of assessment 2020 — on or before 31 December 2024; or

in the case of a qualifying deduction for the year of assessment 2021 — on or before 31 December 2025.”;

by inserting, immediately after subsection (16), the following subsections:“(16A) This section does not entitle any qualifying deduction of a life insurer for any year of assessment to be deducted against any income of the insurer for any preceding year of assessment from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C, unless the qualifying deduction is —

a qualifying deduction in respect of any income from that participating fund that is apportioned to policyholders in accordance with those regulations; or

a qualifying deduction in respect of any income of the insurer from another participating fund that is also apportioned to policyholders in accordance with those regulations.(16B) This section also does not entitle any qualifying deduction of a life insurer for any year of assessment in respect of any income of the insurer from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C, to be deducted against any income of the insurer for any preceding year of assessment, other than income from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C.”; and

by deleting the words “(in respect of those relating to general insurance business and life reinsurance business only)” in paragraph (b) of the definition of “concessionary rate of tax” in subsection (17).