Section 26
Section 26
(a)
where such expenditure exceeds $1 million;
(b)
where such expenditure is less than $1 million but exceeds $100,000, and will result in an increase of not less than 30 per centum in value at original cost of all the productive equipment of the company, make an application in writing to the Board to be approved as an expanding enterprise in such form and with such particulars as may be prescribed.
(2)
Where the Board is satisfied that it is expedient in the public interest to do so, it may approve such company as an
Investment Incentives 31
expanding enterprise and issue an expansion certificate to such company, subject to such conditions as it thinks fit.
(3)
For the purposes of this Part, “new capital expenditure” means expenditure incurred by a company in the purchase of productive equipment which is intended to increase its production or profitability:
Provided that expenditure incurred in the purchase of productive equipment which is not new shall be deemed not to be new capital expenditure unless it is proved to the satisfaction of the Board that —
(a)
the purchase of such productive equipment is economically justifiable;
(b)
the purchase price represents a fair open market value of such productive equipment.
(4)
Every expansion certificate issued under this section shall specify the date on or before which the productive equipment shall be put into operation and such date shall be deemed to be the expansion day for the purposes of this Part.
(5)
The Board may in its discretion, upon the application of any expanding enterprise, amend its expansion certificate by substituting for the expansion day specified therein such earlier or later date as it thinks fit and thereupon the provisions of this Part shall have effect as if the day so substituted were the expansion day in relation to such expanding enterprise.
Tax relief period.