In forceAmended2020 Revised Edition

Contents

Economic Expansion Incentives (Relief from Income Tax) Act 1967 · 2020 Revised Edition · Part 2 · Pioneer Industries

15. Carry forward of loss and allowance

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Amended

Last amended by an amending law of 2018. 2 amendments in all.

(1)

Where a pioneer enterprise has at any time —

(a)

during its tax relief period for a pioneer product; or

(b)

where the pioneer certificate issued to the pioneer enterprise specifies 2 or more pioneer products, during the longer or longest of the tax relief periods for those pioneer products, incurred a loss in the old trade or business in respect of that product or any of those products for any year, that loss must be deducted in accordance with section 37 of the Income Tax Act 1947 (as applied with the necessary modifications), but only against the income of the pioneer enterprise from that old trade or business as ascertained under section 10.

(2)

The balance of any such loss which remains unabsorbed on the tax relief expiry date of the old trade or business is available as a deduction for the year of assessment which relates to the basis period in which the new trade or business commences and for any subsequent year of assessment in accordance with section 37 of the Income Tax Act 1947, in the following descending order of priority:

(a)

against the statutory income of the pioneer enterprise from the corresponding new trade or business;

(b)

against the statutory income of the pioneer enterprise from any other trade or business;

(c)

against the statutory income of the pioneer enterprise from any other source.

(3)

Despite section 7(a), the balance of any allowance as provided for in section 10 which remains unabsorbed on the tax relief expiry date of the old trade or business is available as a deduction for the year of assessment which relates to the basis period in which the new trade or business commences and for any subsequent year of assessment in accordance with section 23 of the Income Tax Act 1947, in the following descending order of priority:

(a)

against the statutory income of the pioneer enterprise from the corresponding new trade or business;

(b)

against the statutory income of the pioneer enterprise from any other trade or business; (c)against the statutory income of the pioneer enterprise from any other source.

Terms defined in s 3

new trade or business
Defined · s 3
“new trade or business” means the trade or business —(a)in respect of any product or products specified in a single pioneer certificate of a pioneer enterprise; and(b)that is considered under section 7 to have been set up and commenced on the day following the tax relief expiry date of the old trade or business in respect of that product or those products;
Open s 3
old trade or business
Defined · s 3
“old trade or business” means the trade or business of a pioneer enterprise which satisfies all of the following conditions:(a)it is in respect of one or more pioneer products specified in a single pioneer certificate of the pioneer enterprise;(b)the part of the trade or business in respect of each pioneer product is carried on during the tax relief period for that product;(c)it either ceases before or is considered, under section 7, to have permanently ceased on the tax relief expiry date;
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pioneer certificate
Defined · s 3
“pioneer certificate” means a pioneer certificate issued under section 5;
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pioneer enterprise
Defined · s 3
“pioneer enterprise” means any company which has been approved by the Minister under section 5 for a pioneer product and to which a pioneer certificate is issued under that section;
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pioneer product
Defined · s 3
“pioneer product” means a product approved under section 4 to be a pioneer product;
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tax
Defined · s 3
“tax” means income tax imposed by the Income Tax Act 1947;
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tax relief expiry date
Defined · s 3
“tax relief expiry date”, in relation to an old trade or business, means —(a)where the old trade or business is in respect of only one pioneer product, the date on which the tax relief period for that pioneer product expires; or(b)where the old trade or business is in respect of 2 or more pioneer products, the date on which all the tax relief periods for those products expire, or (if the Minister has removed one or more but not all of those products from the pioneer certificate under section 5, or extended the tax relief period or periods for one or more but not all of those products under section 6) the date of expiry of the tax relief period with the latest date of expiry.
Open s 3