Page 9 - Capital Allowances Recoupments Part 3 (CTA)

Recoupment s 8(4)(k) : Donation, dividend or

disposal to a connected person.

• If a depreciable asset (qualifying under s 8(4)(a)) is:

• Donated,

• Distributed as a dividend in specie or

• Disposed to a connected person for

- A selling price ≠ arm’s lenghth price, or

- An inadequate selling price, or

- Where the selling price is not measurable in money,

• s 8(4)(k) deems the proceeds to be the MARET VLAUE!

But is still calculated ito s 8(4)(a)’s formula!