BUDGET STATEMENT 2014
34
SUSTAINING GROWTH, SECURING PROSPERITY
of the wear and tear allowance, by
establishing the value of any plant
or machinery, new or used, which
was brought into the business from a
related foreign entity and is presumed
not to be at arm’s length through the
utilisation of either the notional written
down value of the asset or the fair
market value, whichever is the lesser;
and
• The notional written-down value
is obtained by using the cost of
acquisition and writing down those
costs with the appropriate wear and
tear rates in accordance with the
Income Tax Act as if the asset was
in use in Trinidad and Tobago from
the date of acquisition to the year of
assessment. The fair market value will
be defined as the price which the asset
might reasonably be expected to fetch
on a sale in the open market.
These measures will take effect from January 1,
2014.
III. In respect of Energy Incentives
• I propose to introduce a number of new
incentives with effect from January
1, 2014 which will stimulate further
exploration and development-related
investments in the Energy sector.
Investment Tax Credit
Under the Supplemental Petroleum
Tax regime, an Investment Tax Credit
was introduced by Act 13 of 2010 and
took effect from January 1, 2011. This
11. FISCALMEASURES
Mr.Speaker,I shall nowpresentmy taxproposals.
In order to encourage small and medium-sized
enterprises to raise capital through the Trinidad
and Tobago Stock Exchange:
• I propose with effect from October
1, 2013 to amend Section 3 Part XV
of the Corporation Tax Act Ch75:02
by redefining the qualifying capital
base for these incentives by excluding
retained earnings and reserves and, in
terms of the new issued capital raised,
the 30.0 percent to be owned by 25
unrelated shareholders will be 30.0
percent of the new capital issued.
I. In respect of the establishment of a Motor
Vehicle Accident Fund
• I propose, with effect from January
1, 2014, to establish by legislation a
Motor Vehicle Accident Fund using
the funds from the 6 percent tax on
insurance premiums. The Fund will be
used to compensate victims sustaining
bodily injuries from accidents involving
vehicles driven by uninsured drivers.
II.
In respect of preventing tax leakages
• I propose to revisit the relevant sections
in the Corporation Tax Act to address
certain tax leakages.
• I propose, in respect of those leakages
derived through the transfer or sale of
assets between branches and parent
companies which are not at arm’s
length, to clarify the computation
