CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 66

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amount equal to the excess or, where the said amount still

unallowed is nil, to

saiä

(4) Noted thatanding anything in the last preceding sub-

section, in no case shall the amount on which a balancing

charge is ma on a person exceed the aggregate of the following

smounts, that is to say «

(a) the amount of the initial allowance, if any, made

to him in respect of the expenditure in question;

amount of the annual allowances, if my, made

to him in respect of the expenditure in question, including

any allowance computed under section 38 (2) (ii) at a rate

higher than that prescribed by the Board of Income Tax.

40.

Where machinery or plant in the case of which any of the

events mentioned in subsection (1) of the last preceding

section has occurwed is replaced by the omer thereof and a

balancing charge falls to be made on him by reason of that event

or, but for the provisions of this section, would have fallen

on him by reason thereof, the, if by notice in

writing to the Commissioner he so elects, the following

provisions shall have effect, that is to say

(a) if the amount on which the carge would have been

made is greater than the capital expenditure on providing the

new machinery or plant

(1) the carge shall be made only on an amount

equal to the difference; and

(ii) no initial allowance, no balancing allowance

and no annual allowance shall be made or allowed in respect of

the new machinery or plant or the expenditure on the provision

thereof; and

(iii) in considering whether any, and, if so, what

ade in respect of the expendi ture

new machinery or plant, there shall be deased to have

balansing charge falls

been made in respect of that expenditure an initial allowance

equal to the full amount of that expenditure;

(b) if the capital expenditure on providing the new

/machinery