30. Section 37F of the principal Act is amended —
(a)
by inserting, immediately after subsection (1), the following subsections:
“(1A) Notwithstanding subsection (1) but subject to the other provisions of this section, an individual may transfer any qualifying deduction for the years of assessment 2009 and 2010 to a spouse living with him or her who has claimed any qualifying deduction under this section against her or his assessable income for the 3 years of assessment immediately preceding the year of assessment 2009 or 2010, as the case may be.
(1B) Any qualifying deduction transferred to a claimant spouse under subsection (1A) for any year of assessment shall so far as possible be made against her or his assessable income for the third year of assessment immediately preceding that year of assessment, with any remaining balance of the qualifying deduction made —
(a)
against her or his assessable income for the second year of assessment immediately preceding that year of assessment; and
(b)
thereafter against her or his assessable income for the first year of assessment immediately preceding that year of assessment.
(1C) Where in any year of assessment a claimant spouse is entitled to make more than one deduction under subsection (1A) or under subsections (1) and (1A) against her or his assessable income for that year of assessment, the assessable income for that year of assessment shall so far as possible be deducted by the amount of qualifying deduction for the earliest year of assessment the claimant spouse is entitled to so deduct under subsection (1) or (1A), and any remaining balance of the assessable income for the first-mentioned year of assessment shall so far as possible be deducted by the amount of qualifying deduction for the next earliest year of assessment, and so on.”;
(b)
by inserting, immediately after subsection (3), the following subsection:
“(3A) Notwithstanding subsection (3), the amount of qualifying deduction for the year of assessment 2009 or 2010 to be transferred by a transferor to a claimant spouse for any of the 3 years of assessment immediately preceding the year of assessment 2009 or 2010, as the case may be, is the lower of —
(a)
an amount equivalent to the difference between the amount of qualifying deduction available for transfer for the year of assessment 2009 or 2010, as the case may be, and the aggregate amount of such qualifying deductions which had already been transferred under subsection (1A); and
(b)
the balance of the assessable income of the claimant spouse for the year of assessment after such assessable income is deducted by the qualifying deduction for any year of assessment prior to the year of assessment 2009 or 2010, as the case may be, under subsection (1C).”;
(c)
by inserting, immediately after subsection (4), the following subsection:
“(4A) Notwithstanding subsection (4), the amount of qualifying deduction for the year of assessment 2009 or 2010 to be transferred by a transferor to a claimant spouse shall not exceed an amount equal to
$200,000 – A, | |||||
where | A | is the aggregate of the amounts deducted by the transferor against his or her assessable income for the 3 years of assessment immediately preceding the year of assessment 2009 or 2010, as the case may be, under section 37E.”; | |||
(d)
by inserting, immediately after the words “subsection (1)” in subsections (5) and (6), the words “or (1A)”;
(e)
by inserting, immediately after the words “for the immediate preceding year of assessment” in subsection (5), the words “or any of the 3 immediate preceding years of assessment (as the case may be)”;
(f)
by inserting, immediately after subsection (9), the following subsection:
“(9A) Notwithstanding subsection (9), where the Comptroller discovers that any qualifying deduction for the year of assessment 2010 transferred under subsection (1A) and made against the assessable income of the claimant spouse for the year of assessment 2008 is or has become excessive, he may make an assessment on the claimant spouse on the amount which, in his opinion, ought to have been charged to tax in the year of assessment 2008, within 6 years after the expiration of that year of assessment.”; and
(g)
by inserting, immediately after the words “for the immediate preceding year of assessment” in subsection (12), the words “or any one of the 3 immediate preceding years of assessment, as the case may be”.