CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 65

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force during the whole period of ownership of the asset

af

excluding any period during which the owner was deprived oft

use of the asset by reason of enemy cocupation.

(ii) the

Commissioner may in his discretion allow

a higher rate than that prescribed by the Board of Income Tax.

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

of assesment 1947/48, any of the following events occurs in

the case of any machinery or plant in respect of which and

initial allowance or an amual 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 he event in question occurs before the trade, profession

or business is permanently discontimed, an allowance or charge,

be know as "balancing allowance" or a "balancing charge*

shall in the circumstances mentioned in this section, be made

to or, as he case may be, on that person for the year of

assesment 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 the time of the event

exceeds those moneys, balancing allowance shall be made,

and the amount thereof shall be the amount of the expendi ture

still unallowed as aforesaid or, 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