XYZ Ltd. is a corporation, and carries on a business in Hong Kong as a car part distributor. Car parts are purchased by employees of the company from a manufacturer in a foreign country, shipped to Hong Kong, and sold to various car repair centres in Hong Kong.

During the year ended 31 December 2019, the corporations income statement contained the following items:

Note 6: The company spent $5,000,000 to refurbish its main warehouse.

Explain in detail the correct tax treatment of the item related to note 6. Include reference to the relevant code section. (5 marks)