INCOME TAX ACT 1967 (ACT 53)
PART III - ASCERTAINMENT OF CHARGEABLE INCOME
Chapter 8-Special cases
Section 63B. Special deduction for expenses.
(1) In ascertaining the total income of a unit trust for the basis period for a year of assessment, there shall be deducted before any deduction falling to be made under paragraph 44 (1)(c) an amount in respect of expenses incurred by that unit trust during that period, which amount shall be determined in accordance with the formula-
A is the total of the permitted expenses incurred for that basis period;
B is the gross income consisting of dividend, interest and rent chargeable to tax for that basis period; and
C is the aggregate of the gross income consisting of dividend (whether exempt or not), interest and rent, and gains made from the realisation of investments (whether chargeable to tax or not) for that basis period:
(a) the amount of deduction to be made shall not be less than ten per cent of the total permitted expenses incurred for that basis period; and(2) For the purposes of this section-
(b) where, by reason of an absence or insufficiency of aggregate income for that year of assessment, effect cannot be given or cannot be given in full to any deduction falling to be made in the unit trust under this section for that year that deduction which has not been so made shall not be made to the unit trust for any subsequent year of assessment.
"permitted expenses" means expenses incurred by the unit trust in respect of-
(a) manager's remuneration;which are not deductible under subsection 33 (1).
(b) maintenance of register of unit holders;
(c) share registration expenses;
(d) secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage;
[Ins. Act 420:s.11]
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