1989 Ed.]
Inland Revenue
[CAP. 112
83
(a) any initial allowance computed in accordance with the provisions of this section; and
(b) by the annual allowances computed under the provisions of this section:
Provided that-
(a) where the asset was acquired before the basis period in respect of the year of assessment 1947/48 the value at the end of the basis period shall be computed by deducting from the amount paid for the asset by its present owner annual allowances as if this subsection had been in force during the whole period of ownership of the asset excluding any period during which the owner was deprived of the use of the asset by reason of enemy occupation;
(b) the Commissioner may in his discretion allow a higher rate than that prescribed by the Board of Inland Revenue. (Amended 16 of 1951 s. 7; 35 of 1965 s. 19; 26 of 1969 s. 19)
(2A) For the purposes of subsection (2), in any case where machinery or plant is owned and used by a person for any period immediately before he uses it for the purposes of producing profits chargeable to tax under Part IV, "cost of the asset" means the sum computed by deducting from the actual cost the notional amount of the annual allowances which would have been made under subsection (2) to the owner if since acquiring the asset he had used it for the purpose of producing profits chargeable to tax under Part IV. (Added 26 of 1969 s. 19)
(3) Nothing in subsection (2) shall apply in respect of any machinery or plant owned and used by a person for the purposes of his trade or business where such machinery or plant represents scientific research expenditure of a capital nature which pursuant to section 16B(1)(b) has been allowed as a deduction in ascertaining the profits from such trade or business in respect of which such person is chargeable to tax under Part IV for any year of assessment. (Added 35 of 1965 s. 19)
(4) If a person succeeds to any trade, profession or business which immediately before the succession---
(a) was carried on by another person; and
(b) made use of machinery or plant for the purpose of producing profits chargeable to tax under Part IV,
and, immediately after the succession, such machinery or plant, without being sold to the successor, is in use in that trade, profession or business for the same purpose, the reduced value of such machinery or plant shall, for the purpose of computing annual allowances under subsection (2), be taken to be the reduced value thereof still unallowed to that other person as at the time of the succession. (Added 2 of 1971 s. 28)
(5) Notwithstanding subsection (4), no initial allowance shall be made under this part by virtue of subsection (4). (Added 2 of 1971 s. 28)
1989 Ed.]
Inland Revenue
[CAP. 112
83
(a) any initial allowance computed in accordance with the provisions
of this section; and
(b) by the annual allowances computed under the provisions of this
section:
Provided that-
(a) where the asset was acquired before the basis period in respect of
the year of assessment 1947/48 the value at the end of the basis period shall be computed by deducting from the amount paid for the asset by its present owner annual allowances as if this subsection had been in force during the whole period of ownership of the asset excluding any period during which the owner was deprived of the use of the asset by reason of enemy occupation;
(b) the Commissioner may in his discretion allow a higher rate than that prescribed by the Board of Inland Revenue. (Amended 16 of 1951 s. 7; 35 of 1965 s. 19; 26 of 1969 s. 19)
(2A) For the purposes of subsection (2), in any case where machinery or plant is owned and used by a person for any period immediately before he uses it for the purposes of producing profits chargeable to tax under Part IV, "cost of the asset" means the sum computed by deducting from the actual cost the notional amount of the annual allowances which would have been made under subsection (2) to the owner if since acquiring the asset he had used it for the purpose of producing profits chargeable to tax under Part IV. (Added 26 of 1969 s. 19)
(3) Nothing in subsection (2) shall apply in respect of any machinery or plant owned and used by a person for the purposes of his trade or business where such machinery or plant represents scientific research expenditure of a capital nature which pursuant to section 16B(1)(b) has been allowed as a deduction in ascertaining the profits from such trade or business in respect of which such person in chargeable to tax under Part IV for any year of assessment. (Added 35 of 1965 s. 19)
(4) If a person succeeds to any trade, profession or business which immediately before the succession---
(a) was carried on by another person; and
(b) made use of machinery or plant for the purpose of producing
profits chargeable to tax under Part IV,
and, immediately after the succession, such machinery or plant, without being sold to the successor, is in use in that trade, profession or business for the same purpose, the reduced value of such machinery or plant shall, for the purpose of computing annual allowances under subsection (2), be taken to be the reduced value thereof still unallowed to that other person as at the time of the succession. (Added 2 of 1971 s. 28)
(5) Notwithstanding subsection (4), no initial allowance shall be made under this part by virtue of subsection (4). (Added 2 of 1971 s. 28)
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