Section 71

(1) The chargeable profits of a company for any accounting period
profits and shall be the amount of the assessable profits of that period after the deduction
allowances
of any amount to be allowed in accordance with the provisions of this section
as follows –
First (a) the aggregate amount of capital allowances due to the company un-
Schedule der the provisions of Part II of First Schedule to this Act for the accounting
period;
Sixth (b) the aggregate amount of all production allowances due to the com-
Schedule
pany under the provisions of the Sixth Schedule to this Act for the accounting
period; and
First (c) in the case of acquisition costs of petroleum rights, the value of the
Schedule rights and the value of the assets acquired shall be reported separately to the
Service, provided that the value of the rights shall be eligible for annual allow-
ance of 20% per annum until it is fully written off and the value of the assets
shall be depreciated based on the applicable depreciation rates for the respec-
tive assets under Part II of the First Schedule to this Act.
Sixth (2) In determining the chargeable profit, the total cost shall not exceed
Schedule
the cost-price ratio as determined in the Sixth Schedule to this Act.
(3) The chargeable profits and allowances shall be determined sepa-
rately for the two classes of assessable profits under section 72 (a) and (b) of
this Act.
First (4) Where Value Added Tax is due under this Act but not charged on an
Schedule asset, or in the case of an imported item, the applicable import duty or levy was
not paid, the relevant expenditure shall not be eligible as a qualifying capital
expenditure under the provisions of Part II of First Schedule to this Act.