4. The principal Act is amended by inserting, immediately after section 10E, the following section:
—(1) Where —
a contract is entered into on or after the date of commencement of section 4 of the Income Tax (Amendment) Act 2009 between the Government or any approved statutory body and any person under a public-private partnership arrangement; and
the contract is or contains a finance lease recognised as such by the lessor in accordance with FRS 17 read with INT FRS 104, the Government or the approved statutory body being the lessee and the person being the lessor,
notwithstanding any provisions under Part VI, the allowances under section 16, 17, 19, 19A, 20, 21, 22 or 23 in respect of any industrial building or structure, or any machinery or plant, which is a subject of that finance lease, shall not be made to the person, but to the Government or the approved statutory body, as the case may be; and
the person shall not be assessed to tax on that part of the lease payment under that finance lease that is attributable to repayment of principal.
(2) In this section —
“approved” means approved by the Minister or such person as he may appoint;
“FRS 17” and “INT FRS 104” mean the financial reporting standards known as Financial Reporting Standard 17 (Leases) and Interpretation of Financial Reporting Standard 104 (Determining whether an arrangement contains a lease), respectively, issued by the Accounting Standards Council under the Accounting Standards Act (Cap. 2B).”.