CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 64

industrial building or structure in use on the said preceding

day for the purposes of a trade or business carried on by a

person entitled to the relevant interest in the building or

structure; and

(ii) the basis period of that person for the year

of assessment had ended on the said preceding day; and

(111) the anmial allowance had been made to him

for the year of assessment accordingly.

38.

(1) Where, in or after the basis period for the year

of assesment 1947/48 person carrying on trade profession

or business incurs ospital expenditure on the provision of

machinery or plant for the purposes of that trade, profession

or business, there shall be made to him, for the year of

assesment in the basis period for which the expenditure is

incurred an allowance, to be known as an "initial allowance"

equal to one-fifth of that expenditure.

64

(2) Where at the end of the basis period for any

year of assessment a person has in use machinery or plant for

purpose of his trade, profession or business there shall be

him in respect of that year of assessment an allowance

to be known as an "anmal allowance" for depreciation by wear

and tear of those assets. The allowance shall be calculated

made

at

rates prescribed by the Board of Income Tax and shall

be computed on the reducing value of the asset, which shall

be the original cost of the asset reduced by

(1) any initial allowance granted in accordance

with the provisions of section 38; and

(ii) by the annual allowances made under the

provisions of this section.

Provided that

(1) where the asset was acquired before the

basis period in respect of the year of assessment 1947/48 the

value at the end of the basis period shall be computed by

deducting from the mount paid for the asset by its present

owner annual allowances as if this subsection had been in

/force