3467.This amendment repeals section 817 of ICTA for income tax purposes. The section is an income calculation rule because it applies “in arriving at the amount of profits or gains for tax purposes”. It can trace its origins back almost unchanged to the 1803 Act.
3468.The primary purpose of the section is set out in subsection (1)(a). This provides no deduction is allowed in calculating the profits unless it (the deduction) is “expressly enumerated in the Tax Acts”. This clarification may have served some purpose in the early years of income tax. But as both ITEPA and this Act set out what deductions are to be allowed there is no need for a general rule that says no other deductions are to be allowed.