1989 Ed.]
Inland Revenue
[CAP. 112
31
to derive income from that employment, shall be deemed to have accrued to that person on the last day of that employment.
(Added 8 of 1973 s. 5. Amended 71 of 1983 s. 7)
12. Adjustments to assessable income
(1) In ascertaining the net assessable income of a person for any year of assessment, there shall be deducted from the assessable income of that person-
(a) all outgoings and expenses, other than expenses of a domestic or private nature and capital expenditure, wholly, exclusively and necessarily incurred in the production of the assessable income;
(b) allowances calculated in accordance with Part VI in respect of capital expenditure on machinery or plant the use of which is essential to the production of the assessable income;
(c) the amount of any excess carried forward to that year of assessment in accordance with section 12A(3);
(d) the amount of any excess required by subsection (3) to be deducted.
(2) Where any machinery or plant is not used wholly and exclusively in the production of assessable income, the amount of the allowances provided for in subsection (1)(b) shall be reduced in the proportion considered by the assessor to be fair and reasonable.
(3) If in the case of a husband and wife, not being a wife living apart from her husband, the aggregate of deductions claimed for any year of assessment by either spouse under subsection (1)(a), (b) and (c) exceeds the assessable income of that spouse in that year, the excess shall be deducted from the assessable income of the other spouse for the purpose of determining the net assessable income of that other spouse in that year.
(4) (Repealed 71 of 1983 s. 8)
(5) The amount of assessable income for any year of assessment of a person shall, for the purposes of ascertaining his net assessable income, be increased by the amount of any balancing charge directed to be made under Part VI on that person in respect of the machinery or plant used in the production of the assessable income.
12A. Treatment of losses
(Replaced 7 of 1975 s. 4. Amended 71 of 1983 s. 8)
(1) Where in any year of assessment the aggregate of the outgoings, expenses and allowances deductible under section 12(1)(a) and (b) from the