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6 1967

INCOME TAX ACT, 1967

Chapter II

Industrial Buildings and Structures: Industrial Building Allowance

Industrial building allowance.

254. —(1) Subject to the provisions of this Act, where 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 carried on by him, there shall be made to him, for the year of assessment in the basis period for which the expenditure is incurred, an allowance (in this Chapter referred to as an industrial building allowance) equal to one-tenth of the expenditure, and such allowance shall be made as a deduction in charging the profits or gains of the trade:

Provided that this subsection shall not apply to any expenditure incurred before the 30th day of September, 1956.

(2) Notwithstanding anything in subsection (1), in relation to capital expenditure incurred on or after the 14th day of December, 1961, and before the 1st day of April, 1968, this Chapter shall have effect as if “one-fifth” were substituted for “one-tenth” in subsection (1):

Provided that this subsection shall not have effect in relation to capital expenditure incurred on or after the 1st day of January, 1960, on the construction of a building or structure which falls to be regarded as an industrial building or structure by reason of its use for the purposes of the trade of hotel-keeping or in relation to capital expenditure incurred on the construction of a building or structure in respect of which an allowance under this Chapter falls to be made by virtue of section 255 (1) (c).

(3) Notwithstanding any other provision of this section, no industrial building allowance shall be made in respect of any expenditure on a building or structure if the building or structure, when it comes to be used, is not an industrial building or structure, and where an industrial building allowance has been granted in respect of any expenditure on any such building or structure, any necessary additional assessments may be made to give effect to this subsection.

(4) For the purposes of this section—

(a) any expenditure incurred for the purposes of a trade by a person about to carry it on shall be treated as if it had been incurred by that person on the first day on which he does carry it on, and

(b) expenditure shall not be regarded as having been incurred by a person in so far as it has been or is to be met directly or indirectly by the State, by any board established by statute or by any public or local authority:

Provided that paragraph (a) shall not apply to any expenditure incurred before the 30th day of September, 1956.

(5) Section 241 (3) shall apply in relation to a deduction under this section as it applies in relation to a deduction allowable in respect of wear and tear of machinery or plant.

(6) Any claim by a person for an allowance under this section in charging the profits or gains of his trade shall be included in the annual statement required to be delivered under this Act of the profits or gains thereof and shall be accompanied by a certificate signed by the claimant, which shall be deemed to form part of the claim, stating that the expenditure was incurred on the construction of an industrial building or structure and giving such particulars as show that the allowance falls to be made.

Meaning of “industrial building or structure”.

255. —(1) In this Chapter, “industrial building or structure” means a building or structure in use—

(a) for the purposes of a trade carried on in a mill, factory or other similar premises, or

(b) for the purposes of a dock undertaking, or

(c) for the purposes of growing fruit, vegetables or other produce in the course of a trade of market gardening within the meaning of section 54, or

(d) for the purposes of the trade of hotel-keeping:

Provided that a building or structure in use as a holiday camp shall be deemed to be a building or structure in use for the purposes of the trade of hotel-keeping.

(2) In this section, “dock” includes any harbour, wharf, pier or jetty or other works in or at which vessels can ship or unship merchandise or passengers, not being a pier or jetty primarily used for recreation, and “dock undertaking” shall be construed accordingly.

(3) Subsection (1) shall apply in relation to a part of a trade as it applies in relation to a trade, but where part only of a trade complies with the conditions set out in that subsection, a building or structure shall not, by virtue of this subsection, be an industrial building or structure unless it is in use for the purposes of that part of that trade.

(4) (a) Notwithstanding anything in subsection (1) or (3), but subject to subsection (5), in this Chapter “industrial building or structure” does not include any building or structure in use as, or as part of, a dwelling-house, retail shop, showroom or office or for any purpose ancillary to the purposes of a dwelling-house, retail shop, showroom or office.

(b) In this subsection “retail shop” includes any premises of a similar character where retail trade or business (including repair work) is carried on.

(5) Where part of the whole of a building or structure is, and part thereof is not, an industrial building or structure, and the capital expenditure which has been incurred on the construction of the second-mentioned part is not more than one-tenth of the total capital expenditure which has been incurred on the construction of the whole building or structure, the whole building or structure and every part thereof shall be treated as an industrial building or structure.

(6) Any reference in this Chapter to a building or structure shall be construed as including a reference to a part of a building or structure except where the reference is comprised in a reference to the whole of a building or structure.

Meaning of “expenditure on construction of building or structure”.

256. —A reference in this Chapter to expenditure incurred on the construction of a building or structure does not include—

(a) any expenditure incurred on the acquisition of, or of rights in or over, any land, or

(b) any expenditure on the provision of machinery or plant or on any asset which is treated for any year of assessment as machinery or plant, or

(c) any expenditure in respect of which an allowance is or may be made, for the same or for any previous or subsequent year of assessment, under section 244 (3) or under section 245.

Expenditure on preparing site.

257. —Where capital expenditure is incurred on preparing, cutting, tunnelling or levelling land for the purposes of preparing the land as a site for the installation of machinery or plant, the machinery or plant shall, as regards that expenditure, be treated, for the purposes of this Chapter, as a building or structure.

Commencement of sections 255 (1) (b), 255 (2), 256 (b) (c) and 257.

258. —In relation to industrial building allowances for years of assessment beginning on or after the 6th day of April, 1959, other than amounts carried forward from any year of assessment ended before that date, the following provisions of this Chapter shall have effect as from the commencement of the Finance (Miscellaneous Provisions) Act, 1956

(a) section 255 (1) (b) section 255 (2),

(b) section 256 (b) (c), and

(c) section 257.

Appeals.

259. —An appeal to the Special Commissioners shall lie on any question arising under this Chapter in like manner as an appeal would lie against an assessment to income tax, and the provisions of this Act relating to appeals shall apply and have effect accordingly.