Page:Inland Revenue Ordinance, 1947 (Cap. 112).pdf/22

No. 20]

34. Where, in the opinion of the Commissioner, the provisions of section 30 relating to the deduction of Interest Tax have failed or are likely to fail to secure payment of any sum being tax upon interest charged by section 29, it shall be lawful for him to recover any such sum by way of direct assessment upon the recipient of such interest or upon his agent. VI. Depreciation, etc.

35. (1) Where in or after the basis period for the year of assessment 1947/48 a person incurs capital expenditure on the construction of a building or structure which is to be an industrial building or structure occupied for the purposes of a trade there shall be made to the person who incurred the expenditure for the year of assessment in the basis period for which the expenditure was incurred an allowance to be known as an “initial allowance” equal to one-tenth thereof.

(2) (a) Where any person is, at the end of the basis period for any year of assessment, entitled to an interest in a building or structure which is an industrial building or structure and where that interest is the relevant interest in relation to the capital expenditure incurred on the construction of that building or structure an allowance, to be known as an “annual allowance,” equal to one-fiftieth of that expenditure shall be made to him for that year of assessment.


 * (b) Where at any time in or after the basis period for the year of assessment 1947/48 the interest in a building or structure which is the relevant interest in relation to any expenditure is sold while the building or structure is an industrial building or structure the annual allowance, in the years of assessment the basis periods for which end after the time of that sale, shall be computed by reference to the residual value of that expenditure immediately after the sale and shall be the fraction of the said residue the numerator of which is one and the denominator of which is the number of years of assessment comprised in the period which—
 * (i) begins with the first year of assessment for which the buyer is entitled to an annual allowance or would be so entitled if the building or structure had at all material times continued to be an industrial building or structure; and