Water supply; sewerage, waste management and remediation activities

ISIC Code E is split for tax purposes. Water collection and distribution (Section 36) are generally Excluded Activities as they constitute regulated utility services. However, Waste Processing and Remediation (Sections 38-39) can be Qualifying Activities if they meet the definition of 'Processing of Goods or Materials' and are conducted within a Designated Zone. Forensic focus is on the 'Regulatory' nature of the income source.

Audit Red Flag

Misclassifying regulated 'Water Supply' (Excluded) as 'Manufacturing/Processing of Water' (Qualifying) to exploit the 0% rate on utility-derived income.

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