XN000022-1974-11-27 — Page 5

WEDNESDAY, NOVEMBER 27,

1974

3

HE STRESSED THAT THERE WAS NO CHANGE CAPITAL EXPENDITURE ON INDUSTRIAL BUILDING

! THE PRINCIPLE THAT MACHINERY, LESS ANY MONIES RECOVERED ON DISPOSAL, IS ALLOWED

AND PLANT AND AS A DEDUCTION OVER A PERIOD OF TIME OR OVER THE WORKING LIFE OF A PLANT, AS THE CASE MAY BE. THE TRANSITIONAL ADJUSTMENT WILL NOT AFFECT THE TOTAL ALLOWANCES OVER THE LIFE OF THE ASSET, HE SAID. +FAILURE TO QUALIFY FOR AN INITIAL ALLOWANCE WILL MEAN HIGHER AMOUNTS OF ANNUAL ALLOWANCE.+

MR. HADDON-CAVE ALSO NOTED THAT PROVISIONS FOR STAND-OVER HAD BEEN MADE WHICH SEEK TO RECOGNISE POSSIBLE CASH FLOW PROBLEMS AND TO TRY TO AVOID TEMPORARY OVER-PAYMENTS AND

UBSEQUENT CREDITS.

THESE PROVISIONS RELATE TO THE FOLLOWING SITUATIONS :

* WHERE THERE IS A REDUCTION OF PROFITS BECAUSE OF CESSATION

OF BUSINESS

* WHERE THERE ARE CLAIMS FOR PERSONAL ASSESSMENT

WHICH WOULD SUBSTANTIALLY REDUCE LIABILITY TO TAX

* WHERE THERE IS AN OMISSION OF ERROR IN THE AMOUNT OF ANY

LOSS BROUGHT FORWARD FOR SET-OFF

* WHERE THE PRECEDING YEAR'S ASSESSMENT TO PROFITS TAX IS

UNDER OBJECTION.

-

14