INCOME TAX ACT 1967 (ACT 53)
SCHEDULE 4C - Deduction For Approved Food Production Projects
1. Subject to this Schedule, a company resident in Malaysia in the basis year for a year of assessment (referred to in this Schedule as a "surrendering company") may surrender its adjusted loss, in full or in part, in the basis period for that year of assessment in respect of an approved food production project to one or more related companies resident in Malaysia in the basis year for that year of assessment (referred to in this Schedule as a "claimant company").
2. In relation to an approved food production project-
(a) the application for approval for the project shall be made not later than 31 December 2003; and
(b) the project shall commence within one year from the date of approval.
(c)[Deleted by Act 608: s.25].
[Am. Act 608: s.25]
3. For the purposes of this Schedule, a surrendering company is related to a claimant company if at the end of the basis period for a year of assessment at least-
(a) seventy per cent of the issued share capital of the surrendering company are directly owned by the claimant company;
(b) seventy per cent of the issued share capital of the claimant company are directly owned by the surrendering company; or
(c) seventy per cent each of the issued share capital of the surrendering company and claimant company are directly owned by another company.
4. The amount of adjusted loss surrendered shall he allowed as a deduction against the aggregate income of the claimant company pursuant to subsection 44(1).
5. Any amount of adjusted loss from the approved food production project that is not surrendered in any year of assessment shall not be available to any claimant company for any subsequent year of assessment.
6. Where the basis period of the surrendering company does not coincide with the basis period of the claimant company, the adjusted loss from the approved food production project shall be deemed to have accrued evenly over the basis period of the surrendering company and the amount of adjusted loss surrendered shall not exceed such amount that is apportioned to the period that coincides with the basis period of the claimant company.
7. Where a company has commenced an approved food production project, that company shall maintain a separate account for the income derived from that project:
Provided that where expenses have been incurred by that company which are not directly attributable to that project, the Director General may allocate as expenses such amount as might reasonably and properly have been incurred in the normal course of its business in respect of such project.
8. Any claim for a deduction under this Schedule shall be made in a written statement and shall be accompanied by a notice of consent given by the surrendering company containing such particulars as to show the amount of adjusted loss being surrendered.
9. Notwithstanding the foregoing provisions of this Schedule, where it appears to the Director General that the deduction as mentioned in paragraph 4 ought not to have been so given, the Director General may raise such assessment or additional assessment upon that claimant company as may be necessary in order to make good any loss of tax.
10. The provisions of this Schedule shall not apply to a surrendering company which has been allowed a deduction under Schedule 4A or given an allowance tinder Schedule 7A, or granted any incentive under the Promotion of Invcstments Act 1986 in respect of the same activity.
11. In this Schedule, "approved food production project" means an agricultural project which is approved by the Minister by order published in the Gazette.
[Ins. Act 591: s.10; Subs. Act 608:25]
|[Act 591: s.10; Act 608:
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