Please confirm that our treatment in Illustration 3 above is in order.

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What would be the treatment of RA c/f if the qualifying projects have been completed?
Should the apportionment of the statutory income from the qualifying projects continue until the RA c/f is fully utilised?

If our treatment in Illustration 3 above is in order, then we suggest that the wordings in the proposed Paragraph 4A should be amended accordingly so as to ensure that there is clarity.
IRBM reply:
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iii.

Confirmed that the treatment in Illustration 3 is in order and the illustration above clearly explains Paragraph 4A.
If the qualifying projects have been completed, RA c/f is allowed to be deducted against the proportion of statutory income from qualifiying project until all RA is fully utilized.
Yes, the apportionments of the statutory income from the qualifying projects continue until the RA c/f is fully utilised.

We understand that a draft Public Ruling to address the above will be issued to the JPRWG for feedback before it is finalised.
IRBM reply:
Yes.

Request:
In view of the above, would like to seek clarification on the following in the case where the person was invoiced for secretarial fee and tax filing fee in year 1 but made payment in year 2:
a)

Does it mean that the person is not eligible for the deduction under PU(A) 336/2014 since the person did not incur and pay the secretarial fee and tax fee in the same year, i.e. year 1?

b)

When the person makes payment in year 2, can the person claim the deduction by revising the tax return for year 1?

As the Rules in P.U. (A) 336/2014 are made pursuant to paragraph 154(1)(b) read together with paragraph
33(1)(d) of the Income Tax Act 1967 (ITA), CTIM is of the view that the deduction should be allowed on an incurred basis pursuant to the provisions of Section 33(1) of the