CHAPTER 75:01 - Inland Revenue Division

Income Tax Act Mac 1
Vol. 1
(ii) there has been a bona fide change of ownership, and
(iii) the purchaser qualifies for relief under the Hotel
Development Act in respect of the buildings
comprising the hotel; but no account shall be taken
of any sum paid in respect of the purchase price of
the land on which such hotel stands or in respect of
goodwill,
(d) the purchase of articles of hotel equipment and on the
installation of such articles of hotel equipment,
and for the purposes of this definition, "articles of hotel
equipment" and "construction" have the same meanings as are
respectively assigned to the said expression in the Hotel
Development Act;
"hotel" has the same meaning as is assigned to that expression in
the Hotel Development Act;
"Minister" means the Minister responsible for Industry.
13(A) (1) Subject to subsection (2), where in a year of income a person makes
an investment in the equity capital of an approved hotel or tourism
development project, there shall be allowed as a deduction in ascertaining
the chargeable income of that person for that year of income such
investment up to a maximum of twenty-five per cent of the investment.
Deduction for investment in approved hotel or tourism project
(2) The deduction in subsection (1) -
(a) shall not be allowed unless a certificate of the Minister under
subsection (4) is submitted to the Board in support of the claim for
the deduction; and
(b) shall be spread equally over a period of three successive years
including the year in which the investment is made.
(3) The Minister may approve as an approved hotel or tourism
development project any activity conducted on a commercial basis which
in his opinion, is a business venture that promotes the development of
hotels and tourism.
(4) Where a project is approved under subsection (3), the Minister shall,
on the application of a person who invests in the approved project, issue
to that person a certificate stating -
(a) the date on which approval for the project is granted;
BIR Mac Edition 91/01 Page 35