Singapore legislation
Regulation 7
Regulation 7
Modification or exception to section 14N of Act (Deduction for renovation or refurbishment expenditure)
Subregulation 1
Where —
on or before the date of amalgamation, any amalgamating company incurred renovation or refurbishment expenditure referred to in section 14N of the Act; and
on the date of the amalgamation, the amalgamating company has not claimed all deductions allowed to it under that section in respect of the renovation or refurbishment expenditure incurred by it,then the amalgamated company may claim under that section all deductions not already claimed by the amalgamating company under that section as if the amalgamated company is the amalgamating company, subject to the following provisions:
notwithstanding section 14N(8) of the Act, the specified period for the purpose of section 14N(7) of the Act in relation to the amalgamated company shall be a period of 3 successive basis periods beginning with the basis period for the year of assessment in which a deduction was first allowed to any of the amalgamating companies under section 14N of the Act (as if the amalgamated company existed on the first day of that basis period), or any basis period for the next successive 3 years of assessment; and
where the amalgamated company incurs any renovation or refurbishment expenditure in a basis period forming any part of a specified period referred to in sub-paragraph (i), the deduction that may be allowed to the amalgamated company under section 14N of the Act in respect of its renovation or refurbishment expenditure for the basis period shall be as specified in paragraph (2).
Subregulation 2
For the purpose of sub-paragraph (ii) of paragraph (1), the deduction that may be allowed to the amalgamated company in respect of its renovation or refurbishment expenditure for a basis period referred to in that sub-paragraph shall be determined as follows:
in the case of a specified period in which the date of amalgamation falls —
where only one basis period of the amalgamated company falls within that specified period, the deduction for that basis period shall be the lower of —
the amount of the renovation or refurbishment expenditure incurred by the amalgamated company during that basis period; and
an amount computed in accordance with the formulawhere Xis the aggregate of the amount of renovation or refurbishment expenditure incurred by each amalgamating company during the specified period of that amalgamating company (determined in accordance with section 14N(8) of the Act) in which the day immediately before the date of amalgamation falls; or
where more than one basis period of the amalgamated company falls within that specified period, the deduction for each such basis period shall be the lower of —
the amount of renovation or refurbishment expenditure incurred by the amalgamated company during that basis period; and
an amount computed in accordance with the formulawhere Yis the aggregate of the amount of renovation or refurbishment expenditure incurred by each amalgamating company during the specified period of that amalgamating company (determined in accordance with section 14N(8) of the Act) in which the day immediately before the date of amalgamation falls; andZis the aggregate of the amount of renovation or refurbishment expenditure incurred by the amalgamated company during all the basis periods preceding the basis period for which the deduction is being determined; and
in the case of any other specified period, the deduction shall be determined in accordance with section 14N of the Act (without any modification or exception).
Subregulation 3
For the purpose of paragraph (2)(a)(i)(B) and (ii)(B), in relation to the basis period for the year of assessment 2013 or a subsequent year of assessment, the reference to “$150,000” shall be read as a reference to “$300,000”.