Section 45A
of Petroleum (Income Tax) Act 1967
Section 45A
Where in the basis period for a year of assessment a chargeable person has incurred qualifying expenditure in relation to an asset and the input tax on the asset is subject to any adjustment made under the *Goods and Services Tax Act 2014, the amount of such expenditure in relation to that asset shall be adjusted in the basis period for the year of assessment in which the period of adjustment relating to the asset as provided under the *Goods and Services Tax Act 2014 ends.
(2)
In the event the adjustment of the amount of the qualifying expenditure made under subparagraph (1) results in—
(a)
an additional amount, such amount shall be deemed to be part of the qualifying expenditure incurred, and the residual expenditure under paragraph 46 in relation to the asset shall include that additional amount;
or
*NOTE—The Goods and Services Tax Act 2014 [Act 762] has since been repealed by the Goods and
Services Tax (Repeal) Act 2018 [Act 805] which comes into operation on 1 September 2018–see section 3 of Act 805.
Petroleum (Income Tax)
(b)
a reduced amount, the qualifying expenditure incurred and the residual expenditure under paragraph 46 shall be reduced by such amount, and if the amount of the allowance made or ought to have been made under this
Schedule exceeds the residual expenditure, the excess shall be part of the statutory income of that chargeable person from a source consisting of a business in the basis period the adjustment is made.
(3)
The excess amount referred to in subsubparagraph 2(b) shall not exceed the total amount of allowances given under this Schedule.
(4)
Notwithstanding subparagraph (2), where a chargeable person has incurred the qualifying expenditure in relation to an asset, and the asset is disposed of at any time during the period of adjustment specified under the *Goods and Services Tax
Act 2014, the adjustment to such expenditure shall be made in the basis period for the year of assessment in which the disposal is made.
(5)
Paragraphs 22 and 23 shall apply for the purpose of the adjustment referred to in subparagraph (4).