Deduction for special reserve of approved general insurance company
14O.—(1) The Minister may by regulations provide that, for the purpose of ascertaining the income of a general insurance company approved by the Minister or such person as he may appoint from carrying on the business of insuring and reinsuring offshore risks, there shall be allowed for a period of 10 years a deduction for the prescribed amount of special reserves set aside by the approved general insurance company for prescribed offshore risks.
(2) Regulations made under subsection (1) may provide for —
(a)
any amount transferred to the special reserve on an earlier date to be deemed to have been transferred out of the special reserve first;
(b)
the circumstances in which any amount which has been allowed as deduction under this section may be deemed as trading receipt for any basis period;
(c)
the adjustment of any amount deemed as trading receipt for any basis period in respect of any amount which has been allowed as deduction under this section; and
(d)
generally for giving full effect to or for carrying out the purposes of this section.
(3) In this section, “offshore risk” has the same meaning as in section 26.
[Act 37/2002, wef Y/A 2003 & Sub Ys/A:2002-ACT-37]