Inland Revenue.
[CAP. 112
of profits.
16. (1) For the purpose of ascertaining the profits Ascertainment of any person there shall be deducted all outgoings and expenses wholly and exclusively incurred during the basis period for the year of assessment by such person in the production of the profits, including-
(a) sums payable by such person by way of interest 3 of 1949, s.6.
upon any money borrowed by him, if such money
was borrowed for the purpose of producing the profits;
(b) rent paid by any tenant of land or buildings occupied
by him for the purpose of acquiring the profits;
(c) the allowances provided by Part VI (Depreciation);
(d) bad debts incurred in any trade, business or profession, proved to have become bad during the basis period for the year of assessment, and doubtful debts to the extent that they have become bad during the said basis period notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of the said basis period: Provided that all sums recovered during the said basis period on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as receipts of the trade, business or profession for that basis period;
(e) such other deductions as may be prescribed by any
rule made under this Ordinance.
(2) The Governor in Council may by rules provide for the method of calculating or estimating the deductions allowed or prescribed under this Ordinance.
[17]
17. (1) For the purpose of ascertaining profits no Deductions deduction shall be allowed in respect of—
(a) domestic or private expenses, including the cost of travelling between residence and place of business;
(b) any disbursements or expenses not being money expended for the purpose of producing the profits;
(c) any expenditure of a capital nature or any loss or
withdrawal of capital;
307
not allowed.
Page 15
Page 16
Inland Revenue.
[CAP. 112
of profits.
16. (1) For the purpose of ascertaining the profits Ascertainment of any person there shall be deducted all outgoings and expenses wholly and exclusively incurred during the basis period for the year of assessment by such person in the production of the profits, including-
(a) sums payable by such person by way of interest 3 of 1949, s.6.
upon any money borrowed by him, if such money
was borrowed for the purpose of producing the profits;
(b) rent paid by any tenant of land or buildings occupied
by him for the purpose of acquiring the profits; (c) the allowances provided by Part VI (Depreciation); (d) bad debts incurred in any trade, business or profes- sion, proved to have become bad during the basis period for the year of assessment, and doubtful debts to the extent that they have become bad during the said basis period notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of the said basis period: Provided that all sums recovered during the said basis period on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as receipts of the trade, business or profession for that basis period;
(e) such other deductions as may be prescribed by any
rule made under this Ordinance.
(2) The Governor in Council may by rules provide for the method of calculating or estimating the deductions allowed or prescribed under this Ordinance.
[17]
17. (1) For the purpose of ascertaining profits no Deductions deduction shall be allowed in respect of—
(a) domestic or private expenses, including the cost of travelling between residence and place of business;
(b) any disbursements or expenses not being money expended for the purpose of producing the profits; (c) any expenditure of a capital nature or any loss or
withdrawal of capital;
307
not allowed.
Page 15Page 16
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