Section 52
Grant of IIA
of Economic Expansion Incentives (Relief from Income Tax) Act 1967
(1)
Subject to subsections (2) and (3), where, in the basis period for any year of assessment, a company has incurred fixed capital expenditure on any qualifying equipment for an approved project within the qualifying period for that equipment, the company is to be given for that year of assessment an IIA in respect of the fixed capital expenditure subject to the terms and conditions of its approval letter and in accordance with section 51.
(2)
An IIA may be given for the fixed capital expenditure incurred on any qualifying equipment if, and only if —
in the case where the qualifying equipment is to be constructed or installed on site, the expenditure is attributable to payment against work done in the construction or installation of the equipment, or in any other case, the project company has received delivery of the equipment;
no allowance has been claimed under section 19A(2A), (2B) or (2BAA) of the Income Tax Act 1947 in respect of that fixed capital expenditure; and
no investment allowance has been claimed under Part 8 in respect of that fixed capital expenditure.
(3)
An IIA must ordinarily not be given to a company for any year of assessment for which the company derives from the approved project any income which —
does not form part of the statutory income of the company, or is exempt from tax under the provisions of this Act (other than this Part) or the Income Tax Act 1947; or
is subject to tax at the concessionary rate of tax under Part IIIA in force immediately before 28 April 2004 or Part 4.
(4)
The Minister may, in any particular case, allow an IIA to be given to a company in the circumstances referred to in subsection (3), subject to such terms and conditions as the Minister has specified in the approval letter to the company.[97ZC