Deductions allowed

(1) For the purpose of ascertaining the chargeable income of any person other than an employed person, there shall be deducted all bona fide expenses wholly and exclusively incurred during the basis year by such person other than an employed person in the production of the income, including– (a) any sums paid by such person as– (i) interest upon any money borrowed by him, where the Commissioner is satisfied that the interest was payable on capital employed in acquiring the income; or (ii) interest upon any money borrowed by him for the acquisition of shares in a company carrying on business in Belize; (b) rent paid by any tenant of land or buildings occupied by him for the purpose of acquiring the income; or (c) where any person engaged in any trade, business, profession or vocation has expended any sum in replacing any plant or machinery which was used or employed in such trade, business, profession or vocation, and which has become obsolete, an amount equivalent to the cost of the machinery replaced, after deducting from that such sum as shall represent the total depreciation which has occurred by reason of exhaustion by wear and tear since the date of purchase of the plant machinery and any sum realised by the sale thereof; 22 (d) any sum expended to the satisfaction of the Commissioner on re-afforestation of any timber land with a view to making good any depletion caused by the felling of timber thereon; (e) any sum expended for repair of premises, plant and machinery employed in acquiring the income, or for the renewal, repair or alternation of any implement, utensil or article so employed; (f) bad debts incurred in any trade, business, profession or vocation proved to the satisfaction of the Commissioner to have become bad during the basis year, and doubtful debts to the extent that they are respectively estimated to the satisfaction of the Commissioner to have become bad during the said year notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of the said year; however, all sums recovered during the basis year on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Act be treated as receipts of the trade, business, profession or vocation for that year; (g) in the case of a non-resident, so much of the expenditure in the nature of head office expenditure, as is not in excess of two and a half per cent of its gross receipts; (h) any sum expended of– (i) in establishing or developing an industry approved by the Minister as being to the benefit of Belize; or 23 (ii) for a purpose approved by the Minister as being for the welfare of the public or a particular section thereof; (i) such other deductions as may be prescribed by any rule made under this Act. (2) The Minister may by rules provide for the method of calculating or estimating the deductions allowed or prescribed under this section. (3) For the purposes of paragraph (h) the Minister may make rules regarding the industries, class of industries or purposes for which, and the conditions under which, such deductions may be Schedule V.