S.L. 372.32 Art. 14Deemed amount of total income.

(1) The total income derived by a person from qualifying sales for any year of assessment shall be deemed to amount to sixty per cent of the total price of those sales for that year before deductions and shall be reported in the relative tax return accordingly.

(2) In the calculation of the total income in accordance with sub-rule (1) all deductions otherwise available for that year of assessment with respect to income from qualifying sales, including any unabsorbed capital allowances and/or losses relating to that income that may have been brought forward from any previous year, shall be deemed to have been set off and absorbed, and no deduction shall be allowed against that income except as provided in sub-rule (1).

(3) Where the person who derives income from qualifying sales also derives income from other sources:

(a) for the purpose of calculating the tax due on the income derived from such other sources, and without prejudice to rule 11, the income from qualifying sales, determined in accordance with these rules, shall be deemed to constitute the first part of the total income from all sources;

(b) if the income from those other sources consists of or includes income from non-qualifying sales the deductions that that person may claim and that are allowable for the purpose of ascertaining the total income derived from non-qualifying sales shall be the lower of:

(i) D x NQS / S where: - D is the amount that would be allowable as deductions for the year of assessment in question, had this rule not been applicable to that year of assessment, in determining the total income derived from qualifying and non-qualifying sales - NQS is the total receipts before deductions derived from non-qualifying sales - S is the total receipts before deductions derived from non-qualifying sales and from qualifying sales gross of tax deductible in accordance with these rules and

(ii) the amount allowable in accordance with the other relevant provisions of the Income Tax Acts without reference to this rule.