INCOME TAX ACT 1967 (ACT 53)




SCHEDULE 4A - Capital, Expenditure, On Approved Agricultural, Projects



1. Subject to this Schedule, qualifying farm expenditure for the purposes of this Schedule is capital expenditure within the meaning of paragraph 2, incurred by a person for the purposes of a business of that person consisting of the carrying on of an approved agricultural project, within the period stipulated by the Minister for the purposes of this Schedule, in respect of which expenditure that person would have been entitled to an allowance under Schedule 3 but for an election under this Schedule.
2. Subject to paragraph 1, qualifying farm expenditure is capital expenditure incurred for the purposes of an approved agricultural project on-


3 . A person who has incurred qualifying farm expenditure may elect to claim within three months after the beginning of the year of assessment in the basis period in which that business commenced or within such further period as the Director General may allow, a deduction to be made under this Schedule:

Provided that-


4. Subject to this Schedule, there shall be deducted for a year of assessment under subsection 44(1) an amount equal to so much of the qualifying farm expenditure as was incurred in the basis period for the year of assessment (in this Schedule that year of assessment being referred to as "the relevant year").

5. A person entitled to a deduction in respect of any expenditure relating to an approved agricultural project under this Schedule shall not be entitled to a deduction in connection with another approved agricultural project in respect of the same expenditure.

6. Where by reason of the fact that there is for the relevant year no or no sufficient defined aggregate, a deduction which would otherwise be made under subsection 44 (1) pursuant to this Schedule cannot be made or can be made only in part, the deduction (or, where the deduction can be made only in part so much of the deduction as cannot be made) shall be made for the first year of assessment (being a year of assessment subsequent to the relevant year) for which in computing the total income there is a defined aggregate, and so on for the years of assessment subsequent to that first year until the whole amount of the deduction has been made.

7. Where a person who has incurred qualifying farm expenditure and claimed a deduction in respect of such expenditure under this Schedule, receives an amount as consideration for the disposal of an asset in relation to which such qualifying farm expenditure was incurred, the amount so received shall be added under paragraph 43(1)(c) in ascertaining his aggregate income for the year of assessment in the basis period in which that amount was received:

Provided that-



7A. This Schedule shall not apply to a company-
[Ins. Act 420: s.15]
8. (1) In this Schedule- "approved agricultural project" means an agricultural project which is approved by the Minister by statutory order in the Gazette for the purposes of this Schedule;

"asset" means an asset in relation to which qualifying farm expenditure has been incurred;

"defined aggregate", in relation to a year of assessment, means the aggregate income for that year reduced by a deduction made pursuant to subsection 44 (2) or Schedule 4.

(2) The period and minimum hectarage in relation to an approved agricultural project for purposes of this Schedule shall be stipulated by the Minister in a statutory order in the Gazette.
[Ins. Act 364: s.12]

Related reading:
[Act 364:12; Act 420: s.15]


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