(d) bad debts incurred in any trade, business or profession, proved to have become bad during the basis period for the year of assessment, and doubtful debts to the extent that they have become bad during the said basis period notwith- standing that such bad or doubtful debts were due and payable prior to the commencement of the said basis period, provided that all sums recovered during the said basis period on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as receipts of the trade, business or profession for that basis period;
(e) such other deductions as may be prescribed by any rule made under this Ordinance.
(2) The Governor in Council may by rules provide for the method of calculating or estimating the deductions allowed or prescribed under this Ordinance.
18. (1) For the purpose of ascertaining profits no deduction shall be allowed in respect of-
(a) domestic or private expenses, including the cost of travelling between residence and place of business;
(b) any
disbursements or expenses not being money expended for the purpose of producing the profits;
(c) any expenditure of a capital nature or any loss or withdrawal of capital;
(d) the cost of any improvements;
(e) any sum recoverable under an insurance or contract of indemnity;
(f) rent of, or expenses in connexion with, any premises or part of premises not occupied or used for the purpose of producing the profits;
(g) any tax paid or payable under this Chapter.
(2) In computing the profits or losses of a partnership, nothing shall be deducted for salaries or other remuneration of partners or for interest on partners' capital or loans.
19. (1) Save as provided in this section, the assessable profits liable to Profits Tax of any trade, profession or business for any year of assessment shall be the full amount of its profits arising in or derived from the Colony during the year preceding the year of assessment: Provided that for the year of assessment 1947/48 a person assessable to Profits Tax, by giving notice in writing to the Commissioner on or before the thirty-first day of March, 1949, may require that his assessment be adjusted to the profits arising during that year of assessment.
(2) Where the Commissioner is satisfied that the accounts of a trade, profession or business carried on or exercised in the Colony are usually made up to some day other than the thirty-first day of March, he may direct that the profits from that source be computed on the amount of the profits of the year ending on that day in the year preceding the year of assessment. Where, however, the profits of any trade, profession or business have been computed by reference to an account made up to a certain day, and no account is made up to the corresponding day in the year following, the profits from that source both of the year of assessment in which such failure occurs and of the two years of assessment following shall be computed on such basis as the Commis- sioner in his discretion thinks fit.
Deductions not allowed
Basis for
computing profits
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