Tonnage income scheme allows qualifying shipping companies to compute profits by prescribed tonnage-based formula, subject to anti abuse rules. Profits from operating a qualifying ship may, at the assessee's option, be computed under a tonnage income scheme by the formula A + B - C, where A is total tonnage income (daily tonnage income multiplied by qualifying days using a prescribed tonnage table), B is specified aggregate amounts, and C is the negative profit carried from the prior year; negative results are treated as nil, losses and allowances are deemed applied, successors may deduct predecessor negative profits on reorganisation, and anti abuse and allocation rules apply.
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Provisions expressly mentioned in the judgment/order text.
Tonnage income scheme allows qualifying shipping companies to compute profits by prescribed tonnage-based formula, subject to anti abuse rules.
Profits from operating a qualifying ship may, at the assessee's option, be computed under a tonnage income scheme by the formula A + B - C, where A is total tonnage income (daily tonnage income multiplied by qualifying days using a prescribed tonnage table), B is specified aggregate amounts, and C is the negative profit carried from the prior year; negative results are treated as nil, losses and allowances are deemed applied, successors may deduct predecessor negative profits on reorganisation, and anti abuse and allocation rules apply.
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