CHAPTER 75:01 - Inland Revenue Division

Corporation Tax Act Mac 1
Vol. 1
10C. (1) In computing for the purposes of corporation tax the profits of a financial
institution for a year of income, there shall be allowed a deduction of ten
per cent of the net increase of loans made by a financial institution in a
year of income to approved small companies within the meaning of
section 16A.
Deductions of loans by approved small companies
Finance Act, 1994
(2) In this section, "financial institution" means a company which carries
on all or any of the aspects of banking business or business of a financial
nature.
10D. (1) Subject to this section where in a year of income commencing from the
year 1994 a company under this section makes a contribution to its
catastrophe reserve fund, there shall be allowed as a deduction in
ascertaining the chargeable profits of the company for that year of income
such contribution up to a maximum of twenty per cent of the net written
premium income of the company.
Deductions of contributions to catastrophe reserve
Finance Act, 1994
(2) Subsection (1) shall not apply -
(a) where the catastrophe reserve fund is equal to or exceeds the net
written premium income of the company in a year of income; or
(b) to that portion of a contribution which will cause the fund to
exceed the net written premium income of the company in a year of
income.
(3) All amounts received in a year of income by a company as income
derived from the investment of its catastrophe reserve fund of the
company shall not be included in computing the chargeable profits of the
company for that year of income where the fund does not exceed the net
written premium income in that year.
(4) Where deductions in respect of amounts contributed by a company to
its catastrophe reserve fund have been allowed under this section, and the
company ceases to carry on its property insurance business, the amounts
comprising the fund in the year in which the company ceases to carry on
the property insurance business shall be taken into account in determining
the chargeable profits of the company for that year.
(5) The trustee of the fund established by a company which ceases its
property insurance business under subsection (4) shall -
(a) deduct an amount equal to twenty-five per cent of the amount
comprising the fund at the date when the company ceases the business;
and
BIR Mac Edition 91/01 Page 200