Commentary

B5.661 Concerns where profits arise out of land—railways

Business tax
Business tax | Commentary

B5.661 Concerns where profits arise out of land—railways

Business tax | Commentary

B5.661 Concerns where profits arise out of land—railways

Money expended in improving railway track, so as to raise it above its original standard, is not deductible; nor is the cost of laying heavier rails and chairs1. But the cost of renewing the track is an allowable deduction even if the cost has been increased because of the postponement of repairs in past years2.

A writing-down allowance for machinery and plant cannot be made if the diminution in value of the machinery and plant in question has been compensated for by an allowance for repairs and renewals3.

Where a railway was constructed by

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