S.L. 123.55 Art. 34Value and cost of property and services.

(1) For the purposes of rules 32 and 33 -

(a) "in-house property" means movable property, other than a vehicle as defined in Part B of these rules, manufactured, produced, processed or otherwise treated or acquired for resale by the employer as part of his own business;

(b) "in-house service" means a service, other than a service that constitutes a benefit referred to in Part B or Part C of these rules, provided by an employer as part of his own business;

(c) the value of in-house property or an in-house service shall be deemed to be the selling price normally charged by the provider of the benefit for that or a similar property or service, reduced by any discounts available generally to purchasers buying the same type of property or service from the same supplier at the same time as that of the transfer of that property or the provision of the service in question, and increased by any costs incurred by the provider of the benefit in transferring that property or providing that service;

(d) the value of any other property or service is the higher of its market value and its cost, increased, in any case, by any costs incurred by the provider of the benefit in transferring that property or providing that service;

(e) the consideration paid by the beneficiary is the price paid by him for the acquisition of the property or service in question and when the beneficiary acquires immovable property under an emphyteutical grant, the consideration shall be deemed to be the premium, if any, paid or payable in accordance with the deed of emphyteusis increased by twenty times the annual ground rent in the case of a perpetual emphyteusis and by such lower amount as fairly represents the value of the grant in the case of a temporary emphyteusis.

(2) The meaning of the term "employer" as used in sub-rule (1)(a) and (b) shall be construed without reference to the provisions of rule 4.

(3) For the purposes of sub-rule (1)(d) -

(a) the market value of property is the price which the property would fetch if sold in the open market on the date when the benefit is provided, taking into account the condition of that property on that date and all other relevant factors;

(b) the cost of property is the price paid by the provider of the benefit for the acquisition thereof increased by the cost of any additions, improvements or accessories incurred after the acquisition thereof existing at the time of the provision of the benefit: Provided that -

(i) the price paid for the acquisition of movable property that was acquired more than 6 years before any specific date shall, as from that date, be deemed to be 60% of the actual price;

(ii) the price paid for the acquisition of immovable property under an emphyteutical grant shall be deemed to be the premium, if any, paid or payable in accordance with the deed of emphyteusis increased by twenty times the annual ground rent in the case of a perpetual grant and by such lower amount as fairly represents the value of the grant in the case of a temporary grant.