CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 164

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Treatment of losses

Liability of certain non- resident

persons

(3) Where a person commences to carry on a trade, profession or business in the Colony on a day within a year of assessment, the profits arising therefrom for the period from such date to the end of the year of assessment shall be the assessable profits for such year of assessment.

(4) Where a person has commenced to carry on a trade, profession or business on a day within the year preceding a year of assessment, the assessable profits for that year of assessment shall be the profits for one year from such day.

(5) Where a person ceases to carry on a trade, profession or business, the assessable profits therefrom as regards the year of assessment in which the cessation occurs shall be the amount of the profits of the period beginning on the first day of April in that year and ending on the date of cessation.

(6) Notwithstanding the provisions of section 71 a claim made under subsections (2), (3), (4) or (5) of this section to an adjustment of any assessment by reference to the profits for any period other than the year preceding the year of assessment shall be entertained if it is made within the period of twelve months next succeeding the year of assessment. Α claim so made shall be regarded as an appeal for the purposes of Chapter of XI.

(7) Where in the case of any trade, profession or business it is necessary in order to arrive at the profits or losses of any year of assessment or other period to divide and apportion to specific periods the profits and losses for any period for which accounts have been made up, or to aggregate any such profits or losses or any apportioned parts thereof, it shall be lawful to make such a division and apportionment or aggregation, and any apportionment under this section shall be made in proportion to the number of days in the respective period.

20. Where a loss is incurred by any person in the basis period for any year of assessment in any trade, profession or business the amount of such loss attributable to activities in the Colony shall be carried forward and shall, subject as hereinafter provided, be set off against what would otherwise have been the chargeable profits of that person for the next five years in succession; provided that the amount of any such loss allowed to be set off in computing the chargeable profits in any year shall not be set off in computing the chargeable profits of any other year:

Provided that where all the members of a person not being a body corporate have elected to be severally assessed under the provisions of Chapter VII the portions of any loss incurred in the basis period for any year of assessment of any trade, profession or business falling on a member shall first be set off against the other income of that member. If the amount of the loss falling on a member cannot be wholly set off against his other income for the year of assessment following the year in which it was incurred the amount of the loss not so set off shall be set off against what would otherwise have been his chargeable income for the next five years in succession, pro- vided that the amount of such loss allowed to be set off in computing the chargeable income for any year shall not be set off in computing the chargeable income of any other year.

21. (1) For the purposes of this section-

(a) a person is closely connected with another person where the Commissioner in his discretion considers that such

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