CHAPTER 75:01 - Inland Revenue Division

Income Tax Act Mac 1
Vol. 1
"Minister" means the Minister responsible for Agriculture.
15 Repealed by Finance Act, 1993
16. (1) Subject to subsection (2), where the amount of a loss incurred in the
year of income in any trade, business, profession or vocation carried on by
any person either solely or in partnership is such that it cannot be wholly
set off against his income from other sources for the same year, the
amount of such loss shall, to the extent to which it is not allowed against
his income from other sources for the same year, be carried forward, and
shall, subject as is hereinafter provided, be set off against what would
otherwise have been his chargeable income for succeeding years. Allowance of Trade Losses
(2)(a) The amount of any such loss allowed to be set off in computing the
chargeable income of any year shall not be set off in computing the
chargeable income of any other year.
38 (b) (Deleted.) Act No. 11 of 1988
(c) The amount of any such loss shall be set off as far as possible
against what would otherwise have been his chargeable income for
the first succeeding year, and so far as it cannot be so set off, then
against the said income for the next succeeding year and so on.
(d) No loss incurred in connection with any hotel in any year in
respect of which any allowance is granted under section 13 shall
be set off against the profits arising from any other trade, business,
profession, or vocation carried on by the person to whom the
allowance is granted.
(e) No loss incurred in connection with a guest house in any year in
respect of which an allowance is granted under section 13A, shall
be set off against the profits arising from any other trade, business,
profession or vocation carried on by the person to whom the
allowance is granted. Finance Act 2002*
39 (3) The amount of any loss incurred by a person in any year of income
from sources specified in section 5(1)(a), (b) or (c) shall not be set off in
that year or any succeeding year against gains or profits from the sources
specified in section 5(1)(d) or (e). Act No.11 of 1988
38 BIR Note: 50% limitation on loss-relief deleted with effect from 1st January 1988.
*Effective 1 st January 2003
39 BIR Note: Effective 1st January 1988.
40 BIR Note: Effective 1 st January 2001
BIR Mac Edition 91/01 Page 39