Amend-
ment of
section 38.
30
(3) An annual allowance under this section shall be calculated at rates prescribed by the Board of Inland Revenue and shall be computed on the reducing value of such machinery or plant which shall be the full cost thereof, excluding any interest which may be included in such cost under the terms of the agreement and reduced by any initial or previous annual allowances granted under this section;
Provided that the Commissioner may in his dis- cretion allow a higher rate than that prescribed by the Board of Inland Revenue.**
44. Section 38 of the principal Ordinance is amended→
(a) by the deletion from the twelfth and thirteenth lines of subsection (1) of the words "before the trade, profession or business is permanently discontinued," and the sub- stitution therefor of the following-
"either whilst the person is carrying on bis trade, profession or business or at the time when he ceases so to do," :
(b) by the addition after subsection (3) of the following new
subsection-
on
"(4) Where by reason of a person ceasing to carry
his trade, profession or business. machinery or plant in respect of which an initial or an annual allowance has been made is pul out of use, such person shall be deemed to have received immediately prior to such cessation, sale moneys for such machinery or plant of such an amount as the Commissioner may consider it would have realized had it been sold in the open market at the time of cessation:
Provided that if such person sells such machinery or plant within twelve months of the date of cessation he may claim the adjustment of any balancing allow ance or charge which may have been made to or on him as if such sale had taken place immediately prior to the date of cessation.";
$1
(e) by the re-numbering of subsection (4) as subsection (5) and the deletion therefrom in the first and second lines of the words "in the last preceding subsection," and the substitution therefor of the following-
"contained in this section,'".
45. The principal Ordinance is amended by the addition after Addition section 38 of the following new sections—
"Deter- mination of
dividual assets sold together for one price.
cost of in
Commis- sioner's power la determine the true value of an Aneet on
pale.
Special provision as to allow- ancer on a change in partner- ship.
of new aoctions 38A, 38B
38A. Where assets which qualify for initial or and 38C. annual allowances under this Part are sold together or with other assets in pursuance of one bargain the Commissioner shall for the purposes of the calculation of the allowances and charges provided for in this Part, and having regard to all the circumstances of the transaction allocate a purchase price to each individual asscl.
388. Where an asset which qualifies for initial or annual allowances is sold, and-
(a) the buyer is a person over whom the seller
has control; or
(b) the seller is a person over whom the buyer
has control; or
(c) both the seller and the buyer are persons over both of whom some other person has contruk,
the Commissioner shall, if he is of the opinion that the sale price of such asset does not represent its true market value at the time of such sale, determine such true market value and the amount so determined shall be deemed to be the sale price of such asset for the purpose of calculating the allowances and charges provided for in this Part.
380. Where a clunge occurs in a partnership of persons carrying on any trade, profession or business and an application made in accordance with the pro- visions of the proviso to subsection (3) of section 22 has heen properly received by an assessor the provi- sions of this Part shall apply as if no such change had occurred except that any annual and rebuilding