Section 22
Tax relief period of development and expansion company
of Economic Expansion Incentives (Relief from Income Tax) Act 1967
(1)
Subject to subsection (3), the tax relief period of a development and expansion company for a qualifying activity commences on its commencement day of that qualifying activity and continues —
for such period not exceeding 10 years as the Minister may determine; and
for such further period or periods, not exceeding 5 years for each period, as the Minister may determine, where the Minister is satisfied that it is expedient in the public interest to do so and subject to such terms and conditions as the Minister may impose.
(2)
Subject to subsection (3), the Minister may, if the Minister is satisfied that it is expedient in the public interest to do so and subject to such conditions as the Minister may impose —
where the certificate issued to a development and expansion company only specifies one qualifying activity, extend the tax relief period of the company in subsection (1) for that activity for such further period or periods, not exceeding 5 years at any one time, as the Minister may determine; or
where the certificate issued to a development and expansion company specifies more than one qualifying activity, extend the tax relief period or periods of the company in subsection (1) for one or more of those activities for such further period or periods, not exceeding 5 years at any one time, as the Minister may determine.
(3)
The total tax relief period of a development and expansion company for a qualifying activity under subsections (1) and (2) must not in the aggregate exceed 20 years.
(4)
Despite subsection (3) and subject to subsection (5), the Minister may, if the Minister is satisfied that it is expedient in the public interest to do so and subject to such terms and conditions as the Minister may impose, extend the tax relief period of a relevant development and expansion company for a qualifying activity (beyond the maximum total period allowed under subsection (3)) for such further period or periods, not exceeding 10 years at any one time, as the Minister may determine.
(5)
The total tax relief period of a relevant development and expansion company for a qualifying activity under subsections (1), (2) and (4) must not in the aggregate exceed 40 years.
(6)
An extension of the tax relief period of a relevant development and expansion company for a qualifying activity under subsection (4) may only be granted during the period between 18 February 2008 and 31 December 2023 (both dates inclusive).
(7)
In subsections (4), (5) and (6), “relevant development and expansion company” means a development and expansion company which engages in one or more qualifying activities, and oversees, manages or controls the conduct of any activity on a regional or global basis.
(8)
Any tax relief period initially granted to a development and expansion company before 25 November 2004 which exceeds 10 years is deemed to have been granted under this section.
(9)
Where a development and expansion company has been granted tax relief under Part IIIA in force immediately before 28 April 2004 in respect of any qualifying activity specified in the certificate issued under section 21(3), the Minister must, in extending the tax relief period of the company for that qualifying activity under subsection (1), (2) or (4), take into account the tax relief period of the company for that qualifying activity under that Part.
(10)
The Minister must, in extending the tax relief period of a development and expansion company for international legal services as defined in section 23(3), take into account any tax relief period which it enjoyed for such services under section 23.
(11)
Despite anything in this section, the tax relief period of a development and expansion company that is deemed to be an approved company for the purposes of section 43U of the Income Tax Act 1947 under regulations made under that section, expires on 1 June 2011 and may not be extended.[19K