No. I 2018 9 Amendment of section 15 of Cap. 23:06 \\"ith etfed from the year of assessment he ginning on the I st Janna!). 201 X. section 15 ("Deductions allowed in determination of taxable incomc'')(2) of the Income Tax .\ct !Chapter 23:061 is am(~nded---(a) hy the repeal of paragraph (a) and the substitution of"(a) expenditure and losses to the extent to which they arc incurrt.•d li1r the purposes of trade or in the production of the in...·ome except-(i) to tht~ extent to which they are expenditure nr losses of a capital nature; or (ii) expenditure that constitutes prepayment for goods, services or benefits that will be used up in any subsequent year of assessment (in which event the expenditure will be allowed proportionately over the years of assessment in which tht· goods, services or benefits arc used up)."; (b) by the insertion after paragraph (kk) of the following paragraph·"(11) the amount of any expenditure related to technical and support services that is incurred by the taxpa) er vdm is an anchor compan) to an outgrower fam1cr during the year of assessment. hlgether with an amount equal to fifty per centum of such expenditure. For the pmvoses of this paragraph-"anchor company" means a company that pro,·ides input'>. agronomic advice and marketing opportunities to a group of outgrower farmers and small or medium enterprises: "expenditure related to technical and support services" means sud1 items of expenditure as the \!inistcr shall specify in regulations made under section 90; "outgrower fanner" means a fanner who is a party to a scheme or contract whereunder an anchor company supplies inputs. agronomic advice and marketing opportunities in return for the outgrmver fanner selling or delivering the contract or scheme produce to the anchor company or other person designated by the scheme or contract;". 10 Amendment of section 16 of Cap. 23:06 With etlect from the year of assessment beginning on the 1st Janual)·. 2018, section 16 ("Cases in whi<:h no deduction shall bt: made") of the Income Tax Act [Chapter 23:06) is amended by the repeal of paragmph (q) and the substitution of-· "(q) any expenditure incurred by a local branch or subsidial)' of a foreign company, or by a local company or subsidial)· of a local company, in servicing any debt or debts contracted in com1ection with the production of income to the extent that such debt or debts cause the person to exceed a debt to equity ratio of three to one (for the puqx)se of this paragraph, "equity" means issued and paid-up capital, unappropriated profits, reserves, realised reserves and interest-free loans from shareholders): Provided that this pamgmpb shall not apply if the debt or debts in question(i) arc contracted by a local company or subsidiary of a local company with a locally domiciled, registered or incorporated financial institution or other person ordinarily resident in Zimbabwt; and 6