Trade losses allowance

(1) Subject to sub-section (2) and (3) of this section, where the amount of a loss incurred in the basis year 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 the 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 provided in sub-sections (2) and (3) of this section, be set off against what would otherwise have been his chargeable income for the following year and the next four succeeding years thereafter, or for so long as the trade, profession or vocation is carried on by the person who incurred the loss, whichever is the shorter, save and except that 16 of 25 1994, where the Commissioner is satisfied that an enterprise in the agricultural sector has sustained operating losses, he may extend the carry forward period for a further period not exceeding two years, Provided that if the interest paid by any person on any money borrowed by him for the acquisition of shares in a company carrying on business in Belize is greater in any basis year than the dividend paid on those shares, the difference may be set off against other income of that person in that year and the succeeding years until such time as it is absorbed or the capital investment in those shares is recovered, whichever is earlier, Provided further that, where a trade, profession or vocation carried on by a person shows, on an average, a loss on operation during the preceding five years; or in the agricultural sector during the preceding ten years, the Commissioner may deem the trade or business a non-commercial venture and disallow the set-off of any such loss against income from other sources. (2) The amount of any 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, and where the loss involves the bankruptcy of a person, or his compounding with his creditors, he shall not be entitled to set- off such loss against the profits of succeeding years. (3) In the case of a company there shall not be any set off allowed of the amount of a loss incurred in any preceding basis year in any case where– (a) between the end of that preceding year and the end of the basis year– (i) more than fifty per cent of the shares carrying voting power in the company have been acquired by a person or persons who did not at the end of that 26 preceding year own any of the shares in the company; or (ii) control of the company was acquired by a person or persons who did not at the end of that preceding year control the company; and (b) the company was not during the basis year carrying on the business in which the loss was sustained.