PAPUA NEW GUINEA

Income Tax (Amendment) Act 2014

No 35 of 2014
Certified on: 08 Nov 2014

ARRANGEMENT OF SECTION
Repeal and replacement of Section 69K.

AN ACT
Entitled
Income Tax (Amendment) Act 2014.
Being an Act to amend the Income Tax Act 1959 in so far as it relates to the application of the Pacific Games (2015) (Amendment) Act 2011 and for related purposes,
MADE by the National Parliament to come into operation in accordance with a notice in the National Gazette by the Head of State, acting with, and in accordance with, the advice of the Minister.
REPEAL AND REPLACEMENT OF SECTION 69K.
Section 69K of the Principal Act is repealed and replaced with the following:
	"69K. 150% DEDUCTION FOR SPONSORSHIP AND GIFTS IN RESPECT OF THE 2015 PACIFIC GAMES.
	(1) For the purposes of this Act, any reference to the PNG Sports Federation and Olympic Committee Incorporated. in this Act or any other law means the PNG Olympic Committee Incorporated.
	(2) An amount by way of gift (the value of which is equal to or exceeds K500,000.00) of money or property (other than money) purchased by a taxpayer in the 12 months immediately preceding the making of the gift by the taxpayer, in respect of the 2015 Pacific Games to ‑
	(a) the PNG Sports Federation and Olympic Committee Incorporated; or
	(b) the Pacific Games (2015) Authority, 
	shall be an eligible amount.
	(3) An amount by way of sponsorship (the value of which is equal to or exceeds K500,000.00) of services, money or property (other than money), made by the taxpayer, in respect of the 2015 Pacific Games to PNG 2015 Pacific Games Limited shall be an eligible amount.
	(4) An amount equal to 150 percent of the eligible amount shall be an allowable deduction under this section.
	(5) Where an eligible amount or a part of the eligible amount allowed under this section is recouped or recoupable, that amount shall be included in the assessable income to the extent that a deduction has been allowed.
	(6) Where a 150 percent deduction is allowed under this section, the amount deductible shall be allowable only to the extent that the tax savings resulting from the allowance of the deduction does not exceed 45 percent of the eligible amount.
	(7) This section applies to gifts and sponsorships made up to 31 December, 2015.
	(8) The Commissioner General shall use every endeavour to value fairly, based on best market prices, the sponsorship goods or services provided in relation to Subsection (2) and, such evaluation shall be made in conjunction with the PNG 2015 Pacific Games Limited.".

I hereby certify that the above is a fair print of the Income Tax (Amendment) Act 2014, which has been made by the National Parliament.
Acting Clerk of the National Parliament.
08 Nov 2014

I hereby certify that the Income Tax (Amendment) Act 2014 was made by the National Parliament on 23 October, 2014.
Speaker of the National Parliament.
08 Nov 2014