Section 46 — FINANCE ACT 2009

(a)

by substituting for the words “twelve months” wherever they appear in paragraphs 1, 1A and 1C the words “thirty-six months”;

(b)

by substituting for paragraph 1B the following paragraph:

“1B. (1) Where a company has incurred capital expenditure in respect of an asset for the purposes of a qualifying project and that asset is acquired by a person (in this paragraph referred to as “the acquirer”)

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from that company or from any other person (in this paragraph referred to as “the disposer”) and at the time of the acquisition—

(a)

the disposer of the asset is a person over whom the acquirer of the asset has control;

(b)

the acquirer of the asset is a person over whom the disposer of the asset has control;

(c)

some other person has control directly or indirectly over the disposer and acquirer of the asset; or

(d)

the acquisition is effected in consequence of a scheme of reconstruction or amalgamation of companies, this Schedule shall not apply to the acquirer in respect of the asset.

(2)

In this paragraph—

“asset” means a factory, plant or machinery referred to in paragraph 1, or plant, machinery or building referred to in the definition of “capital expenditure” in paragraph 9;

“control”, in relation to a company, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other company, or by virtue of any powers conferred by the articles of association or other document regulating that or any other company, that the affairs of the first mentioned company are conducted in accordance with the wishes of that person.”;

(c)

in paragraph 2A, by substituting for the words “two years”

the words “five years”;

(d)

by substituting for subparagraph 7(b) the following subparagraph:

“(b) for the period prescribed under the relevant provisions of the

Promotion of Investments Act 1986 in respect of a promoted activity or promoted product for which the company has been granted approval for investment tax allowance under the relevant provisions of that Act;”;

(e)

in paragraph 8—

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(i)

in subparagraph (a), by deleting the words “or processing”;

(ii)

by deleting subparagraph (b);

(iii)

by substituting for subparagraph (d) the following subparagraph:

“(d) a project undertaken by a person—

(i)

in transforming his business of rearing chicken and ducks from an opened house to a closed house system; or

(ii)

in expanding his existing business of rearing chicken and ducks in a closed house system, as verified by the Minister responsible for agriculture and agro-based industry.”;

(f)

in paragraph 9—

(i)

by inserting after the definition of “incurred” the following definition:

‘ “manufacturing” means—

(a)

conversion by manual or mechanical means of organic or inorganic materials into a new product by changing the size, shape, composition, nature or quality of such materials;

(b)

assembly of parts into a piece of machinery or products; or

(c)

mixing of materials by a chemical reaction process including biochemical process that changes the structure of a molecule by the breaking of the intra molecular bonds or by altering the spatial arrangement of atom in the molecule, but does not include—

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(aa) the installation of machinery or equipment for the purpose of construction;

(bb) a simple packaging operations such as bottling, placing in boxes, bags and cases;

(cc)

a simple fixing;

(dd)

a simple mixing of any products;

(ee)

a simple assembly of parts;

(ff)

any activity to ensure the preservation of products in good condition during transportation and storage;

(gg) any activity to facilitate shipment and transportation;

(hh) any activity of packaging or presenting goods for sale; or

(ii)

any activity that may be prescribed by the

Minister, notwithstanding the above interpretation;’;

(ii)

by substituting for the full stop at the end of the definition of “operation” a semicolon; and

(iii)

by inserting after the definition of “operation” the following definition:

‘ “simple” generally describes an activity which does not need special skills, machines, apparatus or equipment especially produced or installed for carrying out the activity.’; and

(g)

in paragraph 11, by substituting for the words “twelve months” wherever they appear the words “thirty-six months”.

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