income tax act - Fiji Revenue & Customs Authority
income tax act - Fiji Revenue & Customs Authority
income tax act - Fiji Revenue & Customs Authority
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
170<br />
Assets used partly for non-business purposes<br />
13. (1) Where an asset is used by a <strong>tax</strong>payer partly for producing <strong>income</strong> and<br />
partly for other purposes any allowance for depreciation under these<br />
Instructions shall be apportioned on the basis of the percentage the <strong>income</strong><br />
producing use bears to the total use of the asset.<br />
(2) Where sub-paragraph (1) applies, the total accumulated deprecation to be<br />
allowed under these Instructions shall be reduced by the portion that the asset was<br />
not used for producing <strong>income</strong>.<br />
Assets previously used for non-business purposes<br />
14. (1) Where a <strong>tax</strong>payer commences using an asset for the purpose of producing<br />
<strong>income</strong> and such asset has previously been used by the <strong>tax</strong>payer for purposes<br />
other than producing <strong>income</strong> any allowance for annual depreciation under these<br />
Instructions shall be based on the cost of the asset.<br />
(2) Where sub-paragraph (1) applies to any asset, the total accumulated<br />
depreciation to be allowed under these Instructions shall be calculated by<br />
reference to the notional depreciated value.<br />
Records to be maintained<br />
15. Deductions for depreciation shall be allowed only where:<br />
(a) satisf<strong>act</strong>ory records are maintained by the <strong>tax</strong>payer, including,<br />
but not limited to, a list of assets in respect of which depreciation<br />
is claimed, their date of purchase, their cost, date of disposal,<br />
consideration received, and the calculation of depreciation; and,<br />
(b) such records, together with a profit and loss statement including<br />
the amount claimed for depreciation, are submitted with each<br />
year’s return of <strong>income</strong>.<br />
Division 2 – Assets acquired prior to 1 January 1998<br />
Application of Division<br />
16. This Division applies only to assets acquired before the 1st day of January<br />
1998.<br />
Rates of depreciation<br />
17. (1) Subject to these Instructions, for assets, other than buildings, acquired<br />
before the 1 st January 1980 the maximum rates of annual deprecation are those<br />
set out in the Schedule to the Allowances For Depreciation and Improvements<br />
Instructions 1981, calculated on the diminishing value basis, provided that, if<br />
special circumstances arise, the Commissioner, in his discretion may make<br />
alternative arrangements.