Section 8

section 60 of the principal Act is amended by inserting after subsection (4b) the following subsection:

“(4C) For the purposes of ascertaining the adjusted income of the life fund, shareholders’ fund or general business referred to in subsection (3), (3a), (4), (4a), (5) or (6), as the case may be, the cost of acquiring and realizing any investments or rights for the basis period for a year of assessment shall include expenses incurred in managing those investments or rights, and such expenses incurred shall be determined in accordance with the following formula:

A x c b where

A is the cost of acquiring any investments or rights which is realized in that period in respect of such fund or general business;

b is the total cost of acquiring all investments or rights held during that period in respect of such fund or general business; and c is the total expenses incurred in that period for managing all investments or rights held during that period in respect of such fund or general business.”.

Finance (No. 2)

9

amendment of section 60AA