In forceAmended2020 Revised Edition

Contents

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

7. Provisions governing old and new trade or business

Amended

Last amended by an amending law of 2016.

For the purposes of the Income Tax Act 1947 and this Act —

(a)

an old trade or business of a pioneer enterprise in respect of a pioneer product or products which is or are the subject of a single pioneer certificate issued to the pioneer enterprise is considered to have permanently ceased on the tax relief expiry date;

(b)

the pioneer enterprise is considered to have set up and commenced a new trade or business in respect of the same product or products on the day immediately following the tax relief expiry date;

(c)

the pioneer enterprise must make up accounts of each old trade or business for a period not exceeding one year, commencing on —

(i)

the production day of the pioneer product; or

(ii)

where the pioneer certificate specifies 2 or more pioneer products, the earlier or earliest of the production days of those pioneer products, for successive periods of one year thereafter and for the period not exceeding one year ending on the tax relief expiry date;

(d)

in making up the first accounts of the new trade or business referred to in paragraph (b), the pioneer enterprise must take as the opening figures for those accounts the closing figures in respect of its assets and liabilities as shown in its last accounts of the corresponding old trade or business; and

(e)

the next accounts of the new trade or business following the first accounts referred to in paragraph (d), must be made up by reference to the closing figures in the first accounts, and any subsequent accounts of the new trade or business must be similarly made up by reference to the closing figures of the preceding accounts of the new trade or business.

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;
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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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production day
Defined · s 3
“production day”, in relation to a pioneer product that is approved under section 5(3) for a pioneer enterprise, means the date specified in the pioneer enterprise’s pioneer certificate under section 5(5)(b) or (7)(a) or (c) as the production day of that 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.
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