INTERNAL REVENUE ACT - 2000( 592 )

    Section - 22 - Carry Over of Losses.

    (1) Subject to this Act, for the purposes of ascertaining the income of a person for a basis period from a farming, manufacturing or mining business,

    (a) there shall be deducted, for a period of five years, a loss of the previous five basis periods incurred by that person in carrying on that business; and

    (b) where that person has incurred more than one such loss, the losses shall be deducted in the order in which they were incurred. [As Substituted by the Internal Revenue (Amendment) Act, 2002 (Act 622), s.6(a).]

    (2) A loss may only be deducted where the loss has not been deducted in ascertaining the income of that person for a previous basis period.

    (3) The loss incurred by a person for a basis period in carrying on a business shall be calculated as the excess of amounts deductible under this Act in ascertaining a profit or gain from the business over the amounts required to be included in ascertaining the profit or gain.

    (4) The aggregate deduction from the assessable income in respect of the loss shall not in any circumstances exceed the amount of the loss. [As inserted by the Internal Revenue (Amendment) Act, 2002 (Act 622), s.6(b)]

    (5) No deduction under this section for any year of assessment shall exceed the amount, if any, of the assessable income (included in the total assessable income for that year of assessment) from the source of income in respect of which the loss, which is the subject of the deduction, was incurred. [As inserted by the Internal Revenue (Amendment) Act, 2002 (Act 622), s.6(b)]

    (6) For the purposes of this section, "manufacturing business" means a business that manufactures mainly for export. [As inserted by the Internal Revenue (Amendment) Act, 2002 (Act 622), s.6(b)]