Section 16

Where a pioneer enterprise has, during its tax relief period, incurred a loss for any year, that loss shall be deducted as provided for in subsection (2) of section 30 of the Income Tax Act but only against the income of the pioneer enterprise as ascertained under section 11, except that the balance of any such loss which remains unabsorbed at the end of its tax relief period is available to the new trade or business in accordance with that Act.

Notwithstanding paragraph {a} of section 8, the balance of any allowance as provided for in section 11 which remains unabsorbed at the end of the tax relief period of the pioneer enterprise is available to the new trade or business in accordance with the Income Tax Act.