42B. Tax credit for balancing, modernisation and replacement of machinery or plant

Where a person invests any amount in the purchase of new plant and machinery for installation at any time between the 1st day of January 2012 and the 31st day of December 2017 in an industrial undertaking set up in Brunei Darussalam and owned by it, for the purposes of balancing, modernisation or replacement of the machinery and plant already installed therein, credit at the rate of 15 per cent of the amount so invested shall be allowed against the tax payable by the person in the manner hereinafter provided.

The amount of credit admissible under this section shall be deducted from the tax payable by the person in respect of the basis period in which the machinery or plant in the purchase of which the amount referred to in subsection (1) is invested, is installed.

Where no tax is payable by the person in respect of the year of assessment relevant to the basis period in which such machinery or plant is installed, or where the tax payable is less than the amount of the credit, the amount of the credit or so much of it as is in excess thereof, as the case may be, shall be carried forward and deducted from the tax payable by the person in respect of the following year of assessment, and so on, but no such amount shall be carried forward for more than 2 years of assessment so, however, that the deductions made under subsection (2) and this subsection shall not exceed in the aggregate the limit specified in subsection (1).

Where any credit is allowed under this section and subsequently it is discovered by the Collector that any one or more of the conditions specified in this section was or were not fulfilled, as the case may be, the credit originally allowed is deemed to have been wrongly allowed and the Collector may, notwithstanding anything contained in this