Clause 4

any sums payable to a post-pioneer company in the tax relief period which might reasonably and properly have been expected to be payable, in the normal course of business, after the end of that period shall be treated as not having been payable in that period but as having been payable on such date, after that period, as the Comptroller thinks fit; and

any expense incurred by a post-pioneer company within one year after the end of its tax relief period which might reasonably and properly have been expected to be incurred, in the normal course of business, during its tax relief period shall be treated as not having been incurred within that year but as having been incurred for the purposes of its qualifying activities and on such date, during its tax relief period, as the Comptroller thinks fit.Ascertainment of income in respect of qualifying activities19H.—

The qualifying income of a post-pioneer company shall, subject to subsection (2), be ascertained in accordance with the provisions of the Income Tax Act [Cap. 134] after making such adjustments as may be necessary in consequence of any direction given under section 19G.(2) In determining the qualifying income of the post-pioneer company for any year during its tax relief period —

the allowances provided for in sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Act shall be taken into account notwithstanding that no claim for such allowances has been made and such allowances shall only be made against the qualifying income;

where full effect cannot, by reason of an insufficiency of its qualifying income for that year, be given to the allowances referred to in paragraph (a), such allowances shall be made in accordance with section 23 of the Income Tax Act but only against such qualifying income;

any loss incurred shall be deducted in accordance with section 37(2) of the Income Tax Act [Cap. 134] but only against its qualifying income; and

the balance of any allowances or loss referred to in paragraphs (a) and (c), respectively, which remains unabsorbed at the end of its tax relief period is available for deduction in accordance with the Income Tax Act against income derived subsequent to that period.(3) In this section, “qualifying income” means the income of a post-pioneer company in respect of its qualifying activities.(4) This section shall have effect for the year of assessment 1991 and subsequent years of assessment.”.