Clause 8

During its tax relief period, a pioneer enterprise shall not carry on any trade or business other than the trade or business relating to the relevant pioneer product, unless the Minister has given his permission in writing therefor.

Where the carrying on of a separate trade or business has been permitted under subsection (1) of this section, separate accounts shall be maintained in respect of that trade or business and in respect of the same accounting period.

Where the carrying on of a separate trade or business has been permitted under subsection (1) of this section, and an industrial building, plant or machinery is used both for the purposes of that trade or business and the trade or business relating to the relevant pioneer product, section 10 of this Act shall apply to such building, plant or machinery.

Where the carrying on of such separate trade results in a loss in any accounting period, such loss shall be brought into the computation of the income of the pioneer enterprise for such period.

Where the carrying on of such separate trade results in a profit in any accounting period, and such profit, computed in accordance with the provisions of the Income Tax Ordinance (Cap. 166) as modified by this section, amounts to less than five per centum of the full sum receivable for the sale of goods or the provision of services, the statutory income from such source shall be deemed to be five per centum of the full sum so receivable and the income of the pioneer enterprise shall be abated accordingly.

Where in the opinion of the Comptroller the carrying on of such separate trade is subordinate and incidental to the carrying on of the trade or business relating to the relevant pioneer product the income or loss arising from such activities shall be deemed to form part of the income or loss of the pioneer enterprise.

For the purposes of this section “relevant pioneer product” means the pioneer product specified in its pioneer certificate.