24. The principal Act is amended by inserting, immediately after section 14P, the following section:
14Q.
—(1) Subject to this section, where any person carrying on a trade, profession or business has incurred during the period from 16th February 2008 to 15th February 2013 (both dates inclusive), expenditure on any renovation or refurbishment works for the purposes of that trade, profession or business (referred to in this section as renovation or refurbishment expenditure), he may claim a deduction in respect of the renovation or refurbishment expenditure in accordance with this section.
(2) Any claim for renovation or refurbishment expenditure under this section shall be made at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the expenditure is incurred or within such further time as the Comptroller may, in his discretion, allow.
(3) For the purposes of subsection (1) and subject to subsections (7), (8) and (9), a deduction is allowed for one-third of the renovation or refurbishment expenditure for the basis period in which the expenditure was incurred and the balance is to be allowed by 2 equal deductions, one for each of the basis periods for the next 2 succeeding years of assessment.
(4) For the purposes of this section, any renovation or refurbishment expenditure incurred by any person prior to the commencement of his trade, profession or business shall be deemed to have been incurred by that person on the first day he carries on that trade, profession or business.
(5) Where it appears to the Comptroller that a deduction under this section which has been allowed to any person in any year of assessment ought not to have been allowed by virtue of subsection (9)(a), there shall be deemed to be income of the person chargeable to tax, for the year of assessment in which the Comptroller discovers the incorrect claim, an amount equal to such deduction.
(6) A deduction under this section shall be made against income from the trade, profession or business for which the renovation or refurbishment expenditure was incurred after all other deductions under this Part have been allowed.
(7) A person shall not be entitled to —
(a)
a deduction for renovation or refurbishment expenditure under this section where a deduction or an allowance for that expenditure is allowed under any other provision of this Act;
(b)
a deduction for renovation or refurbishment expenditure under this section in any basis period subsequent to the basis period in which the person permanently ceases the trade, profession or business for which purpose the expenditure was incurred;
(c)
a deduction for any amount of renovation or refurbishment expenditure incurred by a person during a specified period that is in excess of $150,000 of such expenditure; or
(d)
in the case of a partner of a partnership carrying on a trade, business or profession, a deduction for any amount of renovation or refurbishment expenditure incurred by the partnership during a specified period that is in excess of $150,000 of such expenditure.
(8) In subsection (7)(c) and (d), “specified period” means —
(a)
in the case of subsection (7)(c), a period of 3 consecutive basis periods beginning with the basis period for the year of assessment in which a deduction is first allowed to the person under this section, or any successive period of 3 consecutive basis periods; or
(b)
in the case of subsection (7)(d), a period of 3 consecutive basis periods beginning with the basis period for the year of assessment in which a deduction is first allowed under this section to any partner of the partnership for renovation or refurbishment expenditure incurred by the partnership, or any successive period of 3 consecutive basis periods.
(9) No deduction shall be allowed to a person under this section for any renovation or refurbishment expenditure relating to —
(a)
unless otherwise approved by the Minister or such person as he may appoint, any renovation or refurbishment works, the plans of which require the approval of the Commissioner of Building Control under the Building Control Act (Cap. 29);
(b)
any designer or professional fees;
(c)
any antique;
(d)
any type of fine art, including any painting, drawing, print, calligraphy, mosaic, sculpture, pottery or art installation; and
(e)
such other item as may be prescribed by the Minister by regulations.”.