CAP. 112]
(s. 37 cont.]
Balancing allowances
and charges,
machinery or plant.
30 of 1950, Schedule.
Inland Revenue.
subsection had been in force during the whole period of ownership of the asset excluding any period during which the owner was deprived of the use of the asset by reason of enemy occupation; (b) the Commissioner may in his discretion allow a higher rate than that prescribed by the Board of Inland Revenue.
[38]
38. (1) Where any of the following events occurs in the case of any machinery or plant in respect of which an initial allowance or an annual allowance has been made for any year of assessment to a person carrying on a trade, profession or business, that is to say, either-
(a) the machinery or plant is sold, whether while still
in use or not; or
(b) the machinery or plant is destroyed; or
(c) the machinery or plant is put out of use as being worn out or obsolete or otherwise useless or no longer required,
and the event in question occurs before the trade, profession or business is permanently discontinued, an allowance or charge, to be known as a "balancing allowance" or a "balancing charge", shall in the circumstances mentioned in this section, be made to or, as the case may be, on that person for the year of assessment in his basis period for which that event occurs.
(2) Where there are no sale, insurance, salvage or compensation moneys or where the amount of the capital expenditure of the person in question on the provision of the plant or machinery still unallowed as at the time of the event exceeds those moneys, a balancing allowance shall be made, and the amount thereof shall be the amount of the expenditure still unallowed as aforesaid or, as the case may be, the excess thereof over the said moneys.
(3) If the sale, insurance, salvage or compensation moneys exceed the amount, if any, of the said expenditure still unallowed as at the time of the event, a balancing charge shall be made, and the amount on which it is made shall be an amount equal to the excess or, where the said amount still unallowed is nil, to the said moneys.
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