—(1) The income of a pioneer enterprise in respect of its old trade or business shall be ascertained in accordance with the provisions of the Income Tax Act after making such adjustments as may be necessary in consequence of any direction given under section 9.
(1A) In determining the income of a pioneer enterprise referred to in subsection (1), the allowances provided for in sections 16, 17, 18, 19, 20, 21 and 22 of the Income Tax Act shall be taken into account notwithstanding that no claim for such allowances has been made.
(1B) Where the tax relief period of a pioneer enterprise referred to in subsection (1) expires during the basis period for any year of assessment, for the purpose of determining the income in respect of its old trade or business and its new trade or business for that year of assessment, there shall be deducted allowances provided for in sections 16, 17, 18, 19, 20, 21 and 22 of the Income Tax Act notwithstanding that no claim for such allowances has been made; and for the purpose of computing such allowances —
the allowances for that year of assessment shall be computed as if the old trade or business of the pioneer enterprise had not been deemed to have permanently ceased at the end of the tax relief period; and
the allowances computed in accordance with paragraph (a) shall be apportioned between the old trade or business and the new trade or business of the pioneer enterprise in such manner as appears to the Comptroller to be reasonable in the circumstances.
(2) Where in any year of assessment full effect cannot, by reason of an insufficiency of profits for that year of assessment, be given to the allowances mentioned in subsection (1A), then the balance of the allowances shall be added to, and be deemed to form part of, the corresponding allowances, if any, for the next succeeding year of assessment and, if no such corresponding allowances fall to be made for that year, shall be deemed to constitute the corresponding allowances for that year, and so on for subsequent years of assessment.
(3) Notwithstanding subsections (1) and (1A), where a pioneer enterprise has incurred or has given a written undertaking to the Minister to incur afixed capital expenditure of not less than $150 million and —
more than 50% of the paid-up capital of the pioneer enterprise is held by persons permanently resident in Singapore; and
such capital expenditure has been approved by the Minister as promoting or enhancing the economic or technological development of Singapore,
the capital expenditure so incurred by the pioneer enterprise within its tax relief period in respect of any asset used for the purposes of its new trade or business shall, subject to such conditions as the Minister may impose, be deemed, for the purposes of sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Act (Cap. 134), to have been incurred on the day immediately following the last day of its tax relief period.
(3A) Where the carrying on of a separate trade or business by a pioneer enterprise referred to in subsection (3) has been permitted under section 8(1), and an industrial building, plant or machinery is used both for the purposes of that trade or business and the trade or business relating to the relevant pioneer product, subsection (3) shall apply to that building, plant or machinery.
(3B) Where a pioneer enterprise has, before 16th August 1991, incurred a fixed capital expenditure of not less than $1,000 million, subsection (3) shall apply to that enterprise in respect of that expenditure notwithstanding that the enterprise has not complied with paragraphs (a) and (b) of that subsection.
(4) Where a pioneer enterprise referred to in subsection (3) or (3B) is the holder of 2 pioneer certificates in respect of different periods of time, and capital expenditure has been incurred in respect of any industrial building, plant or machinery which is jointly used in carrying on the trade or business of the 2 pioneer industries, no deduction shall be made in respect of such expenditure under any of the provisions contained in sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Act (Cap. 134) until after the expiration of the tax relief period that is later in time.
(5) In subsections (3) and (3B), “fixed capital expenditure” means capital expenditure in connection with a pioneer product, on factory building (excluding land) in Singapore and on any new plant or new machinery used in Singapore and, subject to the approval of the Minister, on any secondhand plant or secondhand machinery used in Singapore.