Clause 25

by inserting, immediately after the words “Subject to this section” in subsection (2), the words “and section 37IC”;

by inserting, immediately after subsection (2), the following subsection:“(2A) Subject to this section and section 37IC, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there shall be allowed in respect of all his trades and businesses, in addition to the deduction allowed under section 14, a deduction for the expenditure incurred for the purposes of those trades or businesses on the leasing of one or more PIC automation equipment under a qualifying lease or leases, computed in accordance with the following formula:where A is —

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

such 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 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 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 (4), the following subsection:“(4A) Where a person has incurred expenditure on both the leasing under a qualifying lease and the provision of one or more PIC automation equipment during the basis period for any year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the aggregate of the deduction under subsection (2A) and the allowance under section 19A(2BAA) in respect of all such expenditure shall not exceed —

in the case of the year of assessment 2016, 300% of the lower of the following:

the aggregate of all such expenditure;

$1,200,000;

in the case of the year of assessment 2017, 300% of the lower of the following:

the aggregate of all such expenditure;

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and

in the case of the year of assessment 2018, 300% of the lower of the following:

the aggregate of all such expenditure;

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 (6), the following subsection:“(6AA) In subsections (2A) and (4A) —

if the person 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 those subsections applicable to the other 2 years of assessment shall be substituted with “$800,000”;

if the person 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 references to “$1,200,000” in the paragraphs of those subsections applicable to the remaining year of assessment shall be substituted with “$400,000”; and

to avoid doubt —

if the person does not carry on any trade or business during the basis period for the year of assessment 2016, no deduction shall be made from the substituted amount in subsection (2A)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (2A)(a)(i) and (ii), or from the substituted amount in subsection (4A)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (4A)(a)(i) and (ii); and

if the person does not carry on any trade or business during the basis period for the year of assessment 2017, no deduction shall be made from the substituted amount in subsection (2A)(c)(ii) of the lower of the amounts specified in subsection (2A)(b)(i) and (ii), or from the substituted amount in subsection (4A)(c)(ii) of the lower of the amounts specified in subsection (4A)(b)(i) and (ii).”;

by deleting the words “subsections (1), (2) and (4)” in subsections (6A) and (6B) and substituting in each case the words “subsections (1), (2), (2A), (4) and (4A)”;

by deleting the words “the year of assessment 2015” in subsections (6A) and (6B) and substituting in each case the words “the year of assessment 2018”; (g)by deleting the words “subsection (1), (2) or (4)” in subsections (6A) and (6B) and substituting in each case the words “subsection (1), (2), (2A), (4) or (4A)”; and

by deleting the words “section 19A” in the definition of “PIC automation equipment” in subsection (7) and substituting the words “section 19A(15)”.