Section 34

Subject to the prov1s10ns of this Order, an expanding enterprise is entitled, during its tax relief period 1 to relief in the manner provided by this section.

The income of the expanding enterprise in respect of its trade or business to which its expansion certificate relates (referred to in this Part as the expansion income) shall be ascertained, for any accounting period during its tax relief period, in accordance with the provisions of the Income Tax Act and any regulations made under this Order.

In determining the income of the expanding enterprise, the allowances provided for in sections 13, 14, 15, 16, 17 and 18 of the Income Tax Act shall be taken into account.

Where an expanding enterprise carries on trading activities other than those to which its expansion certificate relates, the expansion income to be ascertained for the purposes of this section shall be determined in such manner as appears to the Collector to be reasonable in the circumstances.

Where in the opinion of the Collector the carrying on of such trading activities is subordinate or incidental to the carrying on of the trade or business to which its expansion certificate relates, the income or loss arising from such activities shall be deemed to form part of the expansion income of the expanding enterprise.

The expansion income so ascertained shall be compared with the average corresponding income (referred to in this section as the pre-relief income)

The amount of exempt income shall not, unless the Minister in his discretion otherwise decides, exceed the sum which bears the same proportion to the expansion income as the new capital expenditure on productive equipment bears to the total of such new capital expenditure and the value at original cost of the productive equipment owned or used by the expanding enterprise prior to its expansion.

For the purposes of subsection (6), the average corresponding income of an expanding enterprise, in relation to a certi&cate issued under section 31, shall be determined by taking one~third of the total of the corresponding income of the expanding enterprise for the 3 years immediately preceding the expansion day speci&ed in that certi&cate.

Where an expanding enterprise has carried on the trade or business to which its certi&cate relates for less than 3 years immediately prior to its expansion day or where the expanding enterprise has no corresponding income for any of those 3 years, the Minister may specify such amount to be its average corresponding income as he thinks &t.

Where an expanding enterprise has been approved as a pioneer enterprise or as an export enterprise or as both, the total amount of income exempted under this section and Part II or VII shall not exceed 100% of the expansion income.