40. Section 43A(2) of the principal Act is amended —
(a)
by deleting the word “and” at the end of paragraph (b); and
(b)
by deleting paragraph (c) and substituting the following paragraphs:
“(c)
deduction of losses, capital allowances and donations otherwise than in accordance with this Act;
(d)
circumstances in which any losses (including impairment loss recognised under FRS 39, as defined in section 34A) incurred in respect of any facility referred to in paragraph (b), and capital allowances and donations attributable to income from such facility which has been allowed as a deduction against any income chargeable to tax, may be deemed as income chargeable to tax (at such rate as may be prescribed) for a specified basis period;
(e)
adjustment of any amount deemed as income chargeable to tax referred to in paragraph (d) for the specified basis period;
(f)
circumstances in which any income from any facility referred to in paragraph (b) to be exempt from tax, may be adjusted for any basis period in which the income from such facility is derived;
(g)
circumstances in which any impairment loss, bad debt or provision for doubtful debt in respect of any facility referred to in paragraph (b), which has previously been allowed as a deduction against any income chargeable to tax and which is subsequently reversed, recovered or written back, may be deemed as income chargeable to tax (at such rate as may be prescribed) for any basis period in which the reversal is recognised or the recovery or write back occurs; and
(h)
generally for giving full effect to or for carrying out the purposes of this section.”.