Section 59: Losses

59. Losses (a) Where a company satisfies the Director-General that it has in an income year incurred a loss, it may deduct that loss in computing its net income for that income year. (b) Where the amount of a loss cannot be fully relieved under paragraph (a), the company may, subject to paragraph (c), claim that the unrelieved amount of the loss be carried forward and set-off against its net income derived in the following 5 years, subject to such conditions as may be prescribed. (c) The time limit of 5 years under paragraph (b) shall not apply for the carry forward of any amount of loss that is attributable to annual allowance claimed in respect of capital expenditure incurred on or after 1 July 2006. (d) Where the Director-General is not satisfied with a claim for loss made by a person under this section, the Director-General shall determine the quantum of the loss available for set-off or carry forward and shall give notice of his determination to the person. [S. 59 amended by s. 10 (k) of Act 18 of 1999 w.e.f. 1 July 1999; s. 35 (3) (c) of Act 20 of 2001 w.e.f. 17 September 2001; s. 14 (k) of Act 20 of 2002 w.e.f. 10 August 2002; s. 27 of Act 33 of 2004 w.e.f. 1 July 2006; repealed and replaced by s. 18 (t) of Act 15 of 2006 w.e.f. 1 July 2007 in respect of the year of assessment commencing on 1 July 2007 and in respect of every subsequent year of assessment; s. 15 (d) of Act 18 of 2008 w.e.f. 19 July 2008.]