INLAND REVENUE ORDINANCE

INLAND REVENUE ORDINANCE

CHAPTER 112.
THE INLAND REVENUE ORDINANCE.

ARRANGEMENT OF SECTIONS.

Section Page
PART I-INTRODUCTORY.
1. Short title ...... ... ... ... ... ... ... ... ... ... ... 296
2. Interpretation... . . ... ... ... ... ... ... ... ... ... 296
3. Board of Inland Revenue ... ... ... ... ... ... ... ... ... 299
4. Official secrecy ... ... ... ... ... ... ... ... ... ... ... 299

PART II-PROPERTY TAX.

5. Imposition of property tax ... ... ... ... ... ... ... ... 301
6. By whom payable ... ... ... ... ... ... ... ... ... ... 302
7. Refund in case of unoccupied property ... ... ... ... ... 302

PART III-SALARIES AND ANNUITIES TAX.
8. Imposition of salaries and annuities tax ... ... ... ... ... 302
.9. Definition of income from employment ... ... ... ... ... 303
10. Aggregation of married persons' incomes ... ... ... ... ... 304
11. Ascertainment of assessable income ... ... ... ... ... ... 304
12. Allowances ... ... ... ... ... ... ... ... ... ... ... ... 305
13. Rates of salaries and annuities tax ... ... ... ... ... ... 305

PART IV-PROFITS TAX.

14. Imposition of corporation profits tax ... ... ... ... ... ... 306
15. Imposition of business profits tax ... ... ... ... ... ... 306
16. Ascertainment of profits ... ...... ... ... 307
17. Deductions not allowed ... ... ... ... ... ... ... 307
18. Basis for computing profits ... ... ... ... ... ... ... ... 308
19. Treatment of losses ... ... ... ... ... ... ... ... ... ... 309
20. Liability of certain non-resident persons ... ... ... ... ... 310
21.Profits of certain businesses to be computed on a percentage
of the turnover ... ... ... ... ... ... ... ... ... ... 310
22. Assessment of partnerships ... ... ... ... ... ... ... ... 311
23. Ascertainment of profits of insurance companies ... ... ... 312
24. Clubs, trade associations, etc . ... ... ... ... ... ... ... 313
25. Deduction of property tax from profits tax ... ... ... ... 314
26. Certain dividends excluded from assessment of profits ... ... 314
27. Deduction of tax from dividends of corporations ... ... ... 314





Section Page

PART V.-INTEREST TAX.

28. Imposition of interest tax ............. ... ... ... .... ... 315

29. Deduction of tax by person paying interest ... ... ... 316

30. Certificate of deduction, etc . ........ ... ... ... ... ... ... 316
31. Set off and refund of deduction ..... ... ... ... ... ... ... 316

32. Recovery of deduction ..................... ... ... ... ... 317

33. Recovery of tax by direct assessment ... ... ... ... ... 317

PART VI-DEPRECIATION, ETC.

34. Initial and annual allowances, industrial buildings and

structures ............................... ... ... ... ... 317

35. Balancing allowances and charges, industrial buildings and

structures ............................... ... ... ... ... 318

36. Definitions for this Part ................. ... ... ... ... 320

37. Initial and annual allowances, machinery or plant ... ... 321

38. Balancing allowances and charges, machinery or plant ... 322

39. Replacement of machinery or plant ...... ... ... ... ... 323
40. Expenditure on machinery or plant ...... ... ... ... ... 324

PART VII-PERSONAL ASSESSMENT.
41. Election to be personally assessed...... 324

42. Allowances ............................. ... ... . ... ... 325
43. Rates of charge ........................ ... ... ... ... ... ... 327

PART VIII-DOUBLE TAXATION AND
NON-RES1DENTS.
44. Relief in respect of United Kingdom income tax ... ... 327
45. Relief in respect of Commonwealth income tax ... ... 328

46. Official secrecy ....................... ... ... ... ... ... ... 330

47. Persons assessable on behalf of a non-resident 330

48. Profits of shipowners, aircraft owners and charterers ... 330

49. Double taxation arrangements ........... ... ... ... ... 332

50. Tax credits ............................ ... ... ... ... ... ... 332

PART IX-RETURNS, ETC.

51. Returns and information to be furnished ... ... ... ... 335

52. Information to be furnished by officials and employers ... 336
53. Who may act for incapacitated or non-resident persons ... 337

54. Liability of executor of deceased taxpayer ... ... ... ... 337

55. Liability of trustees and executors..... ... ... ... 338





Section Page
56. Precedent partner to act on behalf of partnership ... ... ... 338

57. Principal officer to act on behalf of a company or body of

persons ... ... ... ... ... ... ... ... ... ... ... ... 338
58. Signature and service of notices ... ... ... ... ... ... 338

PART X-ASSESSMENTS.
59. Assessor to make assessments ... ... ... ... 339
60. Additional assessments ... ... ... ... ... ... ... ... ... 340
61. Certain transactions and dispositions to be disregarded ... ... 341
62. Notice to be issued by assistant commissioner ... ... ... ... 341
63. Validity of assessments, etc. ... ... ... ... ... ... ... ... 341

PART XI-APPEALS.
64. Procedure on appeals to the Commissioner ... ... ... ... ... 341
65. Constitution of the Board of Review ... ... ... ... ... ... 343
66. Right of appeal to the Board of Review ... ... ... ... ... 344
67. Commissioner may refer appeals to the Board of Review ... 345
68. Hearing and disposal of appeals to the Board of Review ... 345
69. Appeals to the Supreme Court ... ... ... ... ... ... ... 346
70. Assessments or amended assessments to be final ... ... 347

PART XII.-PAYMENT AND RECOVERY OF TAX.

71. Provisions regarding payment of tax ... ... ... ... ... ... 348
72. Tax to include fines etc . ... ... ... ... ... ... ... ... ... 349
73. Tax to be a first charge ... ... ... ... ... ... ... ... ... 349
74. Recovery of tax by seizure and sale ... ... ... ... 349
75. Recovery of tax on certificate to a magistrate ... ... 350
76. Recovery from debtor of taxpayer ... ... ... ... 351
77. Recovery of tax from persons leaving the Colony ... 352
78. Use of more than one means of recovery ... ... ... ... 353

PART XIII.-REPAYMENT PAYMENT.
79. Tax paid in excess to be refunded ... ... ... ... ... ... 353

PART XIV-PENALTIES AND OFFENCES.

80. Penalties for failure to make returns, making incorrect

returns, etc . ... ... ... ... ... ... ... ... ... ... ... 354
81. Breach of secrecy and other matters to be orTences ... ... 355

82. Penal provisions relating to fraud, etc . ... ... ... ... ... 355

83. Tax payable notwithstanding proceedings ... ... ... ... ... 356

84. Prosecutions, sanction of Commissioner... ... ... ... ... 356

PART XV-GENERAL.
85. Power to make rules ... ... ... ... ... ... ... ... ... ... 356
86. Board of Inland Revenue to prescribe forms ... ... ... ... 357
87. General power of Governor in Council to exempt ... ... ... 357
88. Exemption of charitable, ecclesiastical and educational bodies. 357

SCHEDULES.





CHAPTER 112.

INLAND REVENUE.

To impose a tax on earnings and profits.

[3rd May, 1947.]

PART I.

Introductory.

1. This Ordinance may be cited as the Inland Revenue Ordinance.

2. In this Ordinance-

($active partner', in relation to a partnership, means a partner who
takes an active part in the control, management, or conduct of the
trade or business of such partnership ;

agent in relation to a non-resident person or to a partnership in which
any partner is a non-resident person, includes

(a) the agent, attorney, factor, receiver, or manager in
the Colony of such person or partnership, and

(b)any person in the Colony through whom such person or
partnership is in receipt of any profits or income arising in or
derived from the Colony;

assessor means an assessor appointed under this Ordinance;

assistant commissioner' means an assistant commissioner of Inland
Revenue appointed under this Ordinance;

'authorized representative' means an individual authorized in writing
by any person to act on his behalf for the purposes of this
Ordinance who is

(a) in any case-

(i) an accountant approved by the Commissioner,

(ii) a solicitor, or counsel instructed by a solicitor,

(iii) an employee regularly employed by the person
concerned, or

(iv) any other person approved by the Commissioner;





(b) in the case of an individual, a relative;

(c)in the case of a company, a director or officer of the
company;

(d) in the case of a partnership, a partner (c) in the case of a body
of persons, a member;

'basis period' for any year of assessment is the period on the profits
of which tax for that year falls to be computed ;

'bill of sale' means a bill of sale registrable under the Bills of Sale
Ordinance;

'business' includes agricultural undertaking, poultry and

pig rearing and the sub-letting by any person of any
premises or portion thereof rented by hirn ;
'Commissioner' includes the Commissioner of Inland
Revenue appointed under this Ordinance, and the deputy
commissioner, and an assistant commissioner specially
authorized by the Commissioner either generally or for
some specific purpose to act on behalf of the Commis-
sioner;
corporation means any company which is either incor-
porated or registered under any enactment or charter in
force in the Colony or elsewhere.
Y
'debenture' means a debenture as defined in subsection (i)
of section 2 of the Companies Ordinance;

'deputy commissioner' means the deputy commissioner of Inland
Revenue appointed under this Ordinance;

executor means any executor, administrator, or other person
administering the estate of a deceased person, and includes a
trustee acting under a trust created by the last will of the author
of the trust;

'incapacitated person' means any minor, lunatic, idiot, or person of
unsound mind;

'income arising in or derived from the Colony' for the purpose of Part III,
shall, without in any way limiting the meaning of the term, include all income
derived from services rendered in the Colony and any annuity payable in the
Colony;





((mortgage' means a mortgage as defined in section 3 of the Stamp
Ordinance;

(&owner,' in relation to land or improvements thereon, includes a
person who holds such land or improvements subject to a ground
rent or other annual charge;

((person' includes a company, partnership, or body of persons;

'precedent partner' means the partner who, of the active partners
resident in the Colony

(a) is first named in the agreement of partnership; or

(b)if there is no agreement, is specified by name or initials
singly or with precedence to the other part~ ners in the usual
name of the partnership; or

(c)is first named in any statutory statement of the names of the
partners;

profits means the net profits for any period calculated in accordance
with the provisions of Part IV of this Ordinance, but does not
include profits arising from the sale of capital assets;

((profits arising iii or derived from the Colony' for the purposes of Part
IV shall, without in any way limiting the meaning of the term,
include all profits from business transacted in the Colony,
whether directly or through an agent;

'receiver' includes any receiver ;or liquidator, and any assignee,
trustee, or other person having the possession or control of the
property of any person by reason of insolvency or bankruptcy;

'standard rate' means the rate specified in the First Schedule;

'tax' means any tax imposed by this Ordinance;

'trade' includes every trade and manufacture, and every adventure
and concern in the nature of trade;

'trustee' includes any trustee, guardian, curator, manager, or other
person having the direction, control, or





management of any property on behalf of any person, but does
not include an executor;

'year of assessment' means the period of twelve months
commencing on the 1st day of April in any year;

'year preceding a year of assessment' means the period of twelve
months ending on the 31st day of March immediately prior to
such year of assessment.

3.(1) (a) There shall be a Board of Inland Revenue composed of
the Financial Se
cretary and four other members appointed by the Governor, of
whom not more than one shall be an official in the
employrnent of the Government. A member so appointed
shall hold office until he shall resign or be removed from
office by the Governor.

(b)Three members of the Bo Board of Inland Revenue shall
form a quorum for the transaction of business and when the
Financial Secretary is present he shall be the chairman.

(c)All matters coming before the Board of Inland Revenue shall
be decided by a majority of votes, and in the case of an
equality of votes the chairman or presiding member shall
have a second or a casting vote.

(2) For the purposes of this Ordinance, the Governor may appoint
a Commissioner, a deputy commissioner, assistant commissioners, and
assessors.

(3) An assistant commissioner exercising or performing any
power, duty, or function of the Commissioner under this Ordinance
shall be deemed for all purposes to be authorized to exercise or perform
the same until the contrary is proved.

(4) All powers conferred upon an assessor by this Ordinance may
be exercised by an assistant commissioner.

4. (1) Except in* the performance of his duties under this
Ordinance, every person who has been appointed under or who is or
has been employed in carrying out or in assisting any persons to carry
out the provisions of this Ordinance





shall preserve and aid in preserving secrecy with regard to all matters
relating to the affairs of any person that may come to his knowledge in
the performance of his duties under this Ordinance, and shall not
communicate any such matter to any person other than the person to
whom such matter relates or his authorized representative, nor suffer or
permit any person to have access to any records in the possession,
custody or control of the Commissioner.

(2) Every person appointed tinder or employed in carrying out the
provisions of this Ordinance, shall before acting under this Ordinance
take aiid subscribe before a justice of the peace an oath of secrecy in
the prescribed form.

(3) No person appointed under or employed in carrying out the
provisions of this Ordinance shall be required to produce in an), court
any return,' document, or assessment, or to divulge or communicate to
any court any matter or thing coming under his notice in the
performance of his duties under this Ordinance, except as may be
necessary for the purpose of carrying into effect the provisions of this
Ordinance.

(4) Notwithstanding anything contained in this section, the
Commissioner or any officer of the Inland Revenue Department
authorized by the Commissioner in that behalf may communicate any
matter which comes to his knowledge, including a copy of any return,
accounts or other document submitted to him in connexion with this
Ordinance

(a)to the Commissioner of Rating and Valuation, to the
Collector of Stamp Revenue, oi* to the Estate Duty
Commissioner, or

(b)to the income tax authority of any part of the Commonwealth
to such an extent as the Commissioner may deem necessary
to enable the correct relief to be given from income tax in that
part in respect of the payment of tax under this Ordinance.

(3) Notwithstanding anything contained in this section, the
Commissioner may permit the Director of Audit or any officer of that
department duly authorized by the Director of Audit in that behalf to
have such access to any records or documents as may be necessary
for the performance of his





official duties. The Director of Audit or any officer so authorized shall
be deemed to be a person employed in carrying out the provisions of
this Ordinance for the purpose of subsection (2).

PART II.

Properly Tax.

5. Property tax shall be charged on and borne by the owner of any
land or buildings wherever situate in the Colony at the standard rate
on the rateable value of such land or buildings or land and buildings as
assessed for rating purposes under the Rating Ordinance, less an
allowance for repairs and outgoings of twenty per cent of the said
rateable value : Provided that

(a)for any year of assessment on the first day of which rents are
restricted by reference to rents recoverable on or before 25th
day of December, 1941, under the provisions of the Landlord
and Tenant Ordinance, property tax shall be charged at one-
half the standard rate;

(b)where no assessment has been made under the Rating
Ordinance, the rateable value shall be determined by the
Commissioner of Rating and Valuation;

(c)in the case of the New Territories other than New Kowloon,
the rateable value for the purpose of property tax shall be
taken at one-fourteenth of the value of the buildings as
assessed under the Rating Ordinance;

(d)where the owner of the land is not the owner of the buildings
thereon, a separate assessment shall be made for the land and
for the buildings;

(e) property tax shall not be charged on premises owned
by the Government of the Colony or of any part of His
Majesty's dominions;

where any land or buildings are exempt from rates by virtue
of subsection (2) of section 40 of the Rating Ordinance, there
shall be substituted for the rateable value the annual rent (if
any) payable to the owner of such land or buildings.





6. Property tax shall be payable in the first place by

the person, whether owner, agent or occupier, who pays the
rates in respect of the land or buildings taxed. Where such
payment is made by any person other than the owner of the
property then the amount so paid by way of property tax
shall be a debt due from the owner and recoverable as such
from any rent or other moneys due to him.

7. A proportionate refund of property tax may be made whenever
any land or buildings are proved to the satisfaction of the
Commissioner to have been unoccupied during one or more entire
months of any year ear of assessment.

PART III.

Salaries and Annuities Tax.

8. Salaries and annuities tax shall be charged at the rates provided
for in section 13 and subject to the allowances hereinafter provided on
all income arising in or derived from the Colony in respect of

(a) any office or employment of profit; and

(b) any pension or annuity :

Provided that the following shall be exempt

(a)the official emoluments received by the Officer
Administering the Government;

(b)the official emoluments of consuls, vice-consuls and
persons employed on the staff of any consulate, who are
subjects or citizens of the state which they represent;

(c)any sum received by way of commutation of pension or
annuity and any sum, other than a pension or annuity,
withdrawn from a provident fund;

(d)the emoluments payable by the Governments of the
Members of the Commonwealth to members of His Majesty's
Forces and to persons in the permanent service of those
Governments in the Colony in respect of their offices under
those Governments;





(e)wound and disability pensions granted to members of His
Majesty's Forces;

gratuities granted to members of His Majesty's Forces in
respect of services rendered during war;

(g)any income exempted by order of the Governor in Council
under section 87 ;

(h)the income of any person who is not resident or is only
temporarily resident in the Colony : Provided in any case that

(i) a person who stays in the Colony for a period or a
number of periods amounting to more than one hundred and
eighty days during a year of assessment shall be liable for
that year of assessment, and

(ii) a person whose stay in the Colony amounts in the
aggregate to more than three hundred days during two
consecutive years of assessment shall be liable for each such
year 'of assessment. 191

9. (1) Income from any office or employment includes---

(a)any wages, salary, leave pay, fee, commission, bonus,
gratuity, perquisite, or allowance for high cost of living,
whether derived from the employer or others, except the
value of any holiday warrant, or passage granted by an
employer to an employee, or any allowance for the, purchase
of any such holiday warrant or passage in so far as it is
expended for such purpose;

(b)the rental value of any place of residence provided rent-free
by the employer;

(c)where a Place of residence is provided by an employer at a
rent less than the rental value, the excess of the rental value
over such rent.

(2) The rental value of any place of residence provided by the
employer shall be deemed to be seven and one-half per cent of the
income as described in paragraph (a) of subsection (i) derived from the
employer for the period during which a place of residence is provided :
Provided that





(a)if such place of residence be a hotel, hostel or boarding
house the rental value shall be deemed to be six per cent of
the income aforesaid where the accommodation consists of
not more than two rooms and three per cent where the
accommodation consists of not more than one room ;

(b)if such place of residence be other than a hotel, hostel or
boarding house any person may elect to have the rateable
value arrived at in accordance with section 5 substituted for
rental value at seven and one-half per cent as aforesaid.

(3) For the purpose of this Part a pension or annuity includes any
annual payment not being

(a) income as defined in subsection (i),

(b) income chargeable to tax under Parts II, IV or V,

(c) a return of capital,

and shall include a pension or annuity which is voluntary
or is capable of being discontinued.

10. The income as defined in section 9 of a married woman who is
not living apart from her husband under the decree of a competent
court or a duly executed deed of separation shall, for the purposes of
this Part, be deemed to be the income. of her husband and shall be
chargeable accordingly: Provided

(a)that such part of the total amount of the tax charged to the
husband as appears to the Commissioner to be charged in
respect of the income of the wife may, if necessary, be
collected froni the wife, notwithstanding that no assessment
has been made upon her, and the provisions of this
Ordinance as to collection and recovery of tax shall apply
accordingly;

(b) that where the husband is not assessable to tax
under this Part or under Part VII the wife shall
be assessed as a feme sole.

11. (1) Save as provided in this section, the assessable income
chargeable to salaries and annuities tax for any year of assessment
shall be the income of the recipient as defined in section 9 arising in
the year preceding the year of assessment.





(2) Where a person commences to receive income chargeable to
salaries and annuities tax on a day within a year of assessment, his
assessable income for that year of assessment shall be his income
arising in the period from such day to the end of the year of
assessment.

(3) Where a person has commenced to receive income chargeable
to salaries and annuities tax on a day within the year preceding the
year of assessment, his assessable income for that year of assessment
shall be his income arising in one year from such day.

(4) Where a person ceases to receive income chargeable to
salaries and annuities tax his assessable income for the year of
assessment in which the cessation occurs shall be his income arising
in the period beginning on the 1st day of April in that year and ending
on the date of cessation.

12. Before arriving at the net chargeable income of a person
assessable to tax under this Part, there shall be deducted from his
assessable income the following

(a) the allowances provided under section 42; and

(b) any outgoings and expenses wholly exclusively and
necessarily incurred in the production of that
income.

13. Salaries and annuities tax shall be charged for each year of
assessment upon the net chargeable income for that year calculated as
provided by sections 9 to 12 at the rates specified in the Second
Schedule : Provided that

(a)where a person is liable to tax under this Part for a part only
of any year of assessment prior to the year of assessment
1950/51, the provisions of the Second Schedule shall be
modified in manner specified therein ; and

(b)in no case shall the amount of salaries and annuities tax
chargeable on any person exceed the amount which would
have been chargeable on him had the standard rate of tax
been charged on the whole of his income chargeable to
salaries and annuities tax before deducting the allowances
provided in section 12.







PART IV.

Profits Tax.

14. Corporation profits tax shall, subject to the provisions of this
Ordinance, be charged on every corporation carrying on trade or
business in the Colony at the standard rate, in respect of the profits
arising in or derived from the Colony from such trade or business.

15. (1) Business profits tax shall, subject to the provisions of this
Ordinance, be charged at the standard rate on every person other than
a corporation carrying on trade, profession or business in the Colony
in respect of the profits arising in or derived from the Colony from such
trade, profession or business.

(2) Where the ultimate controlling interest in two or more trades,
professions or businesses is owned by the same person, the
Commissioner shall cause the profits and losses of those trades,
professions or businesses to be aggregated and a single assessment
thereon shall be made in the sum of the profits: Provided that

(a)where the profits assessable under this section from a trade,
profession or business, or trades, professions or businesses
aggregated under the provisions of subsection (2), do not
exceed the sum of seven thousand dollars no tax shall be
chargeable in respect thereof;

(b)the profits tax payable by any person other than a
corporation in respect of the profits from any trade,
profession or business shall not be more than the amount by
which the profits from such trade, profession or business
exceed the sum of seven thousand dollars ;

(c)for the purpose of assessing the profits of a trade,
profession or business, a husband aiid wife who are not
living apart from each other under the decree of a competent
court or a duly executed deed of separation shall be deemed
to be one person.





16. (1) For the purpose of ascertaining the profits of any person
there shall be deducted all outgoings and expenses wholly and
exclusively incurred during the basis period for the year of assessment
by such person in the production of the profits, including

(a)sums payable by such person by way of interest upon any
money borrowed by him, if such money was borrowed for
the purpose of producing the profits;

(b)rent paid by any tenant of land or buildings occupied by him
for the purpose of acquiring the profits;

(c) the allowances provided by Part VI (Depreciation);

(d)bad debts incurred in any trade, business or profession,
proved to have become bad during the basis period for the
year of assessment, and doubtful debts to the extent that
they have become bad during the said basis period
notwithstanding that such bad or doubtful debts were due
and payable prior to the commencement of the said basis
period: Provided that all sums recovered during the said
basis period on account of amounts previously written off or
allowed in respect of bad or doubtful debts shall for the
purposes of this Ordinance be treated as receipts of the
trade, business or profession for that basis period;

(c)such other deductions as may be prescribed by any rule
made under this Ordinance.

(2) The Governor in Council may by rules provide for
the method of calculating or estimating the deductions
allowed or prescribed under this Ordinance. [

17. (1) For the purpose of ascertaining profits no deduction shall
be allowed in respect of

(a)domestic or private expenses, including the cost of travelling
between residence and place of business;

(b)any disbursements or expenses not being nioney expended
for the purpose of producing the profits;

(c)any expenditure of a capital nature or any loss or withdrawal
of capital;





(d) the cost of any improvements;

(e)any sum recoverable under an insurance or contract of
indemnity;

rent of, or expenses in coiiiiexion with, any premises or part
of premises not occupied or used for the purpose of
producing the profits;

(g)any tax paid or payable under this Ordinance other than
salaries and annuities tax paid in respect of employees'
remuneration.

(2) In computing the profits or losses of a partnership, nothing
shall be deducted for salaries or other remuneration of partners or for
interest on partners' capital or loans.

18. (1) Save as provided in this section, the assessable profits
liable to profits tax of any trade, profession or business for any year of
assessment shall be the full amount of its profits arising in or derived
from the Colony during the year preceding the year of assessment.

(2) Where the Commissioner is satisfied that the accounts of a
trade, profession or business carried on or exercised in the Colony are
usually made up to some day other than the 31st day of March, he may
direct that the profits from that source be computed on the amount of
the profits of the year ending on that day in the year preceding the year
of assessment. Where, however, the profits of any trade, profession or
business have been computed by reference to an account made up to a
certain day, and no account is made up to the corresponding day in the
year following, the profits from that source both of the year of
assessment in which such failure occurs and of the two years of
assessment following shall be computed on such basis as the
Commissioner in his discretion thinks fit.

(3) Where a person commences to carry on a trade, profession or
business in the Colony on a day within a year of assessment, the
profits arising therefrom for the period from such date to the end of the
year of assessment shall be the assessable profits for such year of
assessment.

(4) Where a person has commenced to carry on a trade,
profession or business on a day within the year preceding a year of
assessment, the assessable profits for





that year of assessment shall be the profits for one year from such day.

(5) Where a person ceases to carry on a trade, profession or
business, the assessable profits therefrom as regards the year of
assessment in which the cessation occurs shall be the amount of the
profits of the period beginning on the 1st day of April in that year and
ending on the date of cessation.

(6) Notwithstanding the provisions of section 70 a claim made
under subsection (2), (3), (4) or (5) to an adjustment of aily assessment
by reference to the profits for any period other than the year preceding
the year of assessment shall be entertained if it is made within the
period of twelve months next succeeding the year of assessment. A
claim so made shall be regarded as an appeal for the purposes of Part
XL

(7) Where in the case of any trade, profession or
business it is necessary in order to arrive at the profits or
losses of any year of assessment or other period to divide
and apportion to specific periods the profits and losses for
any period for which accounts have been made up, or to
aggregate any such profits or losses or any apportioned
parts thereof, it shall be lawful to make such a division
and apportionment or aggregation, and any apportionment
under this section shall be made in proportion to the
number of days in the respective period unless the
.Commissioner, having regard to any special circumstances,
otherwise directs.

19. (1) Where a loss is incurred by any person in the basis period
for any year of assessment in any trade, profession or business the
arnount of such loss attributable to activities in the Colony shall be
carried forward and shall, subject as hereinafter provided, be set off
against what would otherwise have been the chargeable profits of that
person for the next five years in succession: Provided that the amount
of any such loss allowed to be set ofF in computing the chargeable
profits in any year shall not be set off in computing the chargeable
profits of any other year.

(2) Where all the members of a person not being a body corporate
have elected to be severally assessed





under the provisions of Part VII the portions of any loss
incurred in the basis period for any year of assessment of
any trade, profession or business falling on a member shall
first be set off against the other income of that member.
If the amount of the loss falling on a member cannot be
wholly set off against his other income for the year of assess-
ment following the year in which it was incurred the amount
of the loss not so set off shall be set off against what would
otherwise have been his chargeable income for the next five
years in succession : Provided that the amount of such loss
allowed to be set off in computing the chargeable income for
any year shall not be set off in computing the chargeable
income of any other year.

20. (1) For the purposes of this section-

(a)a person is closely connected with another person where the
Commissioner in his discretion considers that such persons
are substantially identical or that the ultimate controlling
interest of each is owned or deemed under this section to be
owned by the same person or persons;

(b)the controlling interest of a conipany shall be deemed to be
owned by the beneficial owners of its shares, whether held
directly or through nominees, and shares in one conipany
held by or on behalf of another company shall be deemed to
be held by the shareholders of the last-mentioned company,.

(2) Where a non-resident person carries on business with a
resident person with whom he is closely connected and the course of
such business is so arranged that it produces to the resident person
either no profits or less than the ordinary profits which might be
expected to arise, the business done by the non-resident person in
pursuance of his connexion with the resident person shall be deemed
to be carried on in the Colony, aiid such non-resident person shall be
assessable and chargeable with tax in respect of his profits from such
business in the nanie of the resident person as if the resident person
were his agent, and all the provisions of this Ordinance shall apply
accordingly.

21. Where the true amount of the profits of a nonresident person
in respect of a trade, profession or business carried on in the Colony
cannot be readily ascertained, such





profits may be computed on a fair percentage of the turnover
of that trade or business in the Colony.

22. (1) Where a trade, profession or business is carried on by two
or more persons jointly the tax in respect thereof shall be computed
and stated jointly in one sum and a joint assessment shall be made in
the partnership name.

(2) The precedent partner shall make and deliver a statement of the
profits or losses of such trade, profession or business, on behalf of the
partnership, ascertained in accordance with the provisions of this Part
relating to the ascertainment of profits. Where no active partner is
resident in the Colony the return shall be furnished by the manager or
agent of the partnership in the Colony.

(3) If a change occurs in a partnership of persons carrying on any
trade, profession or business, by reason of retirement or death, or the
dissolution of the partnership as to one or more of the partners, or the
admission of a new partner, in such circumstances that one or more of
the persons who until that time were engaged in the trade, profession
or business continue to be engaged therein, or a person who until that
time was engaged in any trade, profession or business on his own
account continues to be engaged in it, but as a partner in a partnership,
the tax payable by the person or persons who carry on the trade,
profession or business after that time shall, notwithstanding the
change be computed according to the profits or gains of the trade,
profession or business in accordance with section 18 as if no such
change had occurred: Provided that on application made in writing by
all the persons engaged in the trade, profession or business both
immediately before and immediately after the change, and signed by all
of them or, in the case of a deceased person, by his legal
representative, and received by the assessor within twelve months
after the change took place, the assessor shall compute the profits for
any year of assessment as if the trade, profession or business had
been discontinued at the date of the change and a new trade,
profession or business had been then set up and commenced.





(4) Tax upon the partnership shall be recoverable by all means
provided in this Ordinance out of the assets of the partnership, or from
any partner, or from the manager or agent of the partnership in the
Colony, and in the case of an assessment made in accordance with
subsection (3) notwithstanding a change in the partnership shall be
recoverable if necessary from any person who quitted the partnership
at the change or from the estate of any such person deceased.

(5) Tax may be assessed on the profits of a partnership
notwithstanding the cessation or dissolution of such partner-
ship and shall be recoverable from the former partners and
from the assets of the partnership at the tirne of its cessa-
tion

23. (1) The profits of a coi-npany, whether mutual or proprietary,
from the business of life insurance shall be the investment income of
the life insurance fund less the management expenses (including
commission) attributable to that business : Provided that where such a
company transacts life insurance business both in the Colony, whether
directly or through an agent, and elsewhere, the profits from business
in the Colony shall be deemed to be the same proportion of the total
investment income of the life insurarice fund of the company as the
premiums from Hfe insurance business in the Colony bear to the total
life insurarice premiums received by the company, subject to a
deduction of agency expenses in the Colony (including con-imission)
and a fair proportion of the expenses of the head office of the company,
due account being taken in each case by set-off against such expenses
of any income or profits other than life insurance premium or
investment income.

(2) The profits of a company, whether mutual or proprietary, from
the business of insurance (otlier than life insurance) shall be
ascertained by taking the gross premiums from insurance business in
the Colony (less any, premiums returned to the insured and premiums
paid on re-insurance and deducting therefrom a reserve for unexpired
risks at the percentage adopted by the conipany in relation to its
operations as a whole for such risks at the end of the period of which
the profits are being ascertained, and adding thereto





a reserve similarly calculated for unexpired risks outstanding at the
commencement of such period, and from the net amount so arrived at
deducting the actual losses (less the amount recovered in respect
thereof under re-insurance the agency expenses in the Colony, and a
fair porportion of the expenses of the head office of the company, due
account being taken in each case by set-off against such expenses of
any income or profits other than premiums.

(3) Where the Commissioner is satisfied that by reason of the
limited extent of the business transacted in the Colony by a non-
resident insurance company it would be unreasonable to require the
company to furnish the particulars necessary for the application of
subsections (1) and (2), he may, notwithstanding the provisions of those
subsections, permit the profits of the company to be ascertained by
reference to the proportion of the total profits and income of the
company corresponding to the proportion which its premiums from
insurance business in the Colony bear to its total premiums, or on any
other basis which appears to him to be equitable.

(4) For the purposes of this section 'investment income
of the life insurance fund' means, in the case of a conipany
whose sole business is life insurance, the whole of its income
from investments, and, in the case of any other company,
such part of its income from investments as appears fairly
attributable to its life insurance business.

24. (1) Where a body of persons, whether corporate or
unincorporate, carries on a club or similar institution and receives from
its members not less than half of its gross receipts on revenue account
(including entrance fees and subscriptions), it shall not be deemed to
carry on a business ; but where. less than half of its gross receipts are
received from members, the whole of the income from transactions both
with members and others (including entrance fees and subscriptions)
shall be deemed to be receipts from a business, and the body of
persons shall be chargeable in respect of the profits therefrom.

(2) Where a body of persons, whether corporate or unincorporate,
carries on a trade association in such circumstances that more than
half its receipts by way of entrance





fees and subscriptions are from persons who claim or would be entitled
to clairn that such surns were allowable deductions for the purposes of
section 16, such body of persons shall be deemed to carry on a
business, and the whole of its income from transactions both with
members and others (including entrance fees and subscriptions) shall
be deemed to be receipts from business, and the body of persons shall
be chargeable in respect of the profits therefrom.

(3) In this sectim, 'members', in relation to a body
of persons, means those persons who are entitled to vote at
a general meeting of the body at which effective control is
exercised over its affairs.

25. Where property tax is payable for any year of assessment
under Part II in respect of any land or buildings owned by a person
carrying on a trade profession or business any profits tax payable by
such person in respect ot. that year of assessment shall be reduced by
a sum not exceeding the amount of such property tax paid by him

Provided that-

(a)no reduction shall be allowed unless either the income from
such property has been included in such person's taxable
profits or the property is occupied by him for the purposes of
his trade, profession or business but not for residential
purposes;

(b) where property tax, which would otherwise have
been allowed as a deduction, exceeds the amount of
the profits tax payable, the excess may be carried
forward and offset against the profits tax payable by
that person in respect of the next succeeding year
of assessment.

26. For the purposes of assessment the dividends of a
corporation, which is subject to tax under this Part, shall not
be included in the profits of any other person for the. purposes
of taxation under this Part.

27. (1) Every corporation which is registered in the
Colony shall be entitled to deduct from the amount of any dividend
paid to any shareholder tax at the i-ate paid or payable by the
corporation (as reduced by any relief granted
under sections 44 and 45) in respect of the year Of assess-





ment within which the dividend is declared payable : Provided that
where tax is not paid or payable by the corporation on the whole
incorne out of which the dividend is paid the deduction shall be
restricted to that portion of the dividend which is paid out of income
on which tax is paid or payable by the corporation.

(2) Every such corporation shall upon payment of a
dividend, whether tax is deducted therefrom or not, furnish
each shareholder with a certificate setting forth the amount
of the dividend paid to that shareholder and the amount of
tax which the corporation has deducted. or is entitled to
deduct in respect of that dividend.

PART V.

Interest Tax.

28. Interest tax shall be charged at the standard rate on the full
amount of any sum accruing after the 31st day of March, 1947, being
interest arising in or accruing in the Colony on any debenture,
mortgage, bill of sale, loan, deposit or advance, and

(a)paid or payable under any debenture, mortgage or bill of sale
registered with any public authority or public officer; or

(b)paid or payable by aily person carrying on trade, profession
or business in the Colony and allowable as a deduction in
ascertaining the profits of such trade, profession or business
in accordance with section 16; or

(c)paid or payable under nder an instrument issued by the
Government of Hong Kong under

(i) the Public Works Loan Redemption Ordinance; or

(ii) the Hong Kong Dollar Loan Ordinance; or

(iii) the Rehabilitation Loan Ordinance; or

any other Ordinance enacted to make provision for raising a loan the
repayment of which is charged on the revenues of the Colony :

Provided that there shall be exempt from interest tax





(a)any interest paid or payable by or to a bank approved by the
Commissioner;

(b)any interest paid or payable to a corporation carrying on
trade or business in the Colony.

29. Where any person in the Colony pays or credits to
any other person any sum being interest chargeable with
tax under section 28, he shall, notwithstanding any agree-
ment to the contrary whether made before or after the pass-
ing of this Ordinance make a deduction from such sum at
the standard rate in force at the date on which the interest
is paid or is credited, and every such deduction shall be a
debt due from such person to the Government of Hong Kong
and shall be recoverable forthwith as such or may be assessed
and charged upon such person in addition to any tax other-
wise payable by him under this Ordinance. Where any such
person fails to make a deduction ,vhich he is required to
make under this section he shall nevertheless be deemed to
have made the deduction.

30. Any person who deducts interest tax in accordance with the
provisions of section 29 shall, at the request of the recipient, issue to
him a certificate in the prescribed form showing

(a) the gross amount of the interest;

(b) the amount of tax deducted;

(c) the net amount paid or credited;

(d) the period of accrual.

31. (1) Where the profits of any person which are liable to tax
under the provisions of sections 14 and 15 include anv sum froni which
a deduction lias been made in accordanciwith section 29, he shall be
entitled, on production of a certificate issued in accordance with
section 30, to a set-off against the tax payable by him under the
provisions of Part IV of the amount of the deduction shown on such
certificate : Provided that if the amount of the deduction should exceed
the amount of profits tax, the excess shall be refunded in accordance
with section 79.





(2) Where for any year of assessment a person is assessed to
profits tax under the provisions of subsection (5) of section 18, the
Commissioner may in addition to the relief due under subsection (1) of
this section grant such further relief as he may decide to be reasonable.

(3) The aggregate relief granted under this section in respect of
any sum deducted by way of interest tax shall in no circumstances
exceed the amount of such deduction.

32. Any person who has been deemed to have made a
deduction from interest payable to another person under the
provisions of section 29, may retain out of any assets of such
other person coming into his possession or control, so much
thereof as shall be sufficient to produce the amount of such
deduction, and he shall be and is hereby indemnified against
any person whomsoever in respect of his retention of such
assets; and where no assets of such other persons come into
his possesion or control out of which he could retain the
amount deducted, the amount of such deduction shall be a
debt due to him from such other person.

33. Where, in the opinion of the Commissioner, the
provisions of section 29 relating to the deduction of interest
tax have failed or are likely to fail to secure payment of any
sum being tax upon interest charged by section 28, it shall be
lawful for him to recover any such sum by way of direct
assessment upon the recipient of such interest or upon his
agent.

PART VI.

Depreciation, etc.

34. (1) Where a person incurs capital expenditure on the
construction of a building or structure which is to be an industrial
building or structure occupied for the purposes of a trade there shall be
made to the person who incurred the expenditure for the year of
assessment in the basis period for which the expenditure was incurred
an allowance to be known as an 'initial allowance' equal to one-tenth
thereof.

(2)(a) Where any person is, at the end of the basis period for
any year of assessment, entitled to an interest in a building or
structure which is an industrial building or structure and
where that





interest is the relevant interest in relation to the capital
expenditure incurred, on the construction of that building or
structure an allowance, to be known as an 'annual
allowance', equal to one-fiftieth of of that expenditure shall
be made to him for that. year of assessment.

(b)Where-the interest in a building or structure which is the
relevant interest in relation to any expenditure is sold while
the building or structure is an industrial building or structure
the annual allowance, in the years of assessment the basis
periods for which end after the time of that sale, shall be
computed by reference to the residue of expenditure
immediately after the sale and shall be the fraction of the said
residue the numerator of which is one and the denominator of
which is the nuinber of years ot assessment comprised in the
period which

(i) begins with the first year of assessment for which the
buyer is entitled to an annual allowance or would be so
entitled if the building or structure had at all material times
continued to be an industrial building or structure; and

(ii) ends with the year of assessment which is the fiftieth
year after the year in which the building or structure was first
used; and so on for any subsequent sales.

(c) Notwithstanding anything in the preceding pro-
visions of this section, in no case shall the amount
of an annual allowance for any year of assessment
in respect of any expenditure exceed such as, apart
from the writing off falling to be made by reason
of the making of that allowance, would be the
residue of that expenditure at the end of his basis
period for that year of assessment.

35. (1) Where any capital expenditure lias been incurred on the
construction of a building or structure and any of the following events
occurs while the building ot structure is an industrial building or
structure, that is to say





(a)the relevant interest in the building or structure is sold; or

(b)that interest, being a leasehold interest, conies to an end
otherwise than on the person entitled thereto acquiring the
interest which is reversionary thereon

oi*

(c)the building or structure is demolished or destroyed or,
without being demolished or destroyed, ceases altogether to
be used,

an allowance or charge, to be known as a 'balancing allowance' or a
'balancing charge' shall, in the circumstances mentioned in this
section, be made to or, as the case may be, on the person entitled to
the relevant interest immediately before that event occurs for 'the year
of assessment in his basis period for which that event occurs :
Provided that no balancing allowance or balancing charge shall be
made to or on any person for any year of assessment by reason of any
event occurring after the end of the basis period for the year of
assessment which is the. fiftieth year after the year in which the
building or structure was first used.

(2) Where there are no sale , insurance, salvage or compensation
moneys, or where the residue of the expenditure immediately before
the event exceeds those moneys, a balancing allowance shall be made
and the amount thereof shall be the amount of the said residue or, as
the case may be, of the excess thereof over the said moneys.

(3) If the sale, insurarice, salvage or compensation moneys
exceed the residue, if any, of the expenditure immediately before the
event, a balancing charge shall be made and the amount on which it is
made shall be an arnount equal to the excess or, where the residue is
nil, to the said moneys.

(4) Notwithstanding anything in the last preceding subsection, in
no case shall the amount on which a balancing charge is made on a
person exceed the aggregate of the following amounts, that is to say

(a)the amount of the initial allowance, if any, made to him in
respect of the expenditure in question;





(b)the amount of the annual allowances, if any, made to him in
respect of the expenditure in question.

36. In this Part-

(a)'industrial building or structure' means a building or
structure in use

(i) for the purposes of a trade carried on in a mill, factory
or other similar premises; or

(ii) for the purposes of a transport, dock, water or
electricity undertaking; or

(iii) for the purposes of a trade which consists of the
manufacture of goods or materials or the subjection of
goods or materials to aii), process; or

(iv) for the purposes of a trade which consists of the
storage of goods or materials which are to be used in the
manufacture of other goods or to be subjected, in the course
of a trade, to any process; or

(v) for the purposes of a trade which consists of the
storage of goods or materials on their arrival by sea or air
into the Colony;

and, in particular, the said expression includes any building
or structure provided by the person carrying on such a trade
or undertaking for the welfare of workers employed in that
trade or undertaking and in use for that purpose : Provided
that notwithstanding anything in the foregoing the
expression 'industrial building or structure' does not include
any building or structure in use as, or as part of, a dwelling
house, retail shop, showroom, hotel or office or to any
purpose ancillary to the purposes of a dwelling house, retail
shop, showroom, hotel or office ;

(b)'relevant interest' means, in relation to any expenditure
incurred on the construction of a building or structure the
interest in that building or structure to which the person who
incurred the expenditure was entitled when he incurred it;





(c)'residue of expenditure' shall be the amount of the capital
expenditure incurred in the construction of a building or
structure reduced by

(i) the amount of any initial allowance made; and

(ii) any annual allowance made; and

(iii) any balancing allowances granted;

and increased by any balancing charges made.

For the purpose of computing the residue of expenditure
there shall be written off an amount of one fiftieth of the
expenditure in respect of any year in which no initial or
annual allowance falls to be made.

37. (1) Where a person carrying on a trade, profession or business
incurs capital expenditure on the provision of machinery or plant for
the purposes of that trade, profession or business, there shall be made
to him, for the year of assessment in the basis period for which the
expenditure is incurred, an allowance, to be known as an 'initial
allowance' equal to one-fifth of that expenditure.

(2) Where at the end of the basis period for any year of assessment
a person has in use machinery or plant for the purpose of his trade,
profession or business there shall be made to him in respect of that
year of assessment an allowance to be known as an 'annual
allowance' for depreciation by wear and tear of those assets. The
allowance shall be calculated at the rates prescribed by the Board of
Inland Revenue and shall be computed on the reducing value of the
asset, which shall be the original cost of the asset reduced by

(a)any initial allowance granted in accordance with the
provisions of this section ; and

(b)by the annual allowances made under the provisions of this
section

Provided that

(a)where the asset was acquired before the basis period in
respect of the year of assessment 1947/48 the value at the end
of the basis period shall be computed by deducting from the
amount paid for the asset by its present owner annual
allowances as if this





subsection had been in force during the whole period of
ownership of the asset excluding any period during which
the owner was deprived of the use of the asset by reason of
enemy occupation

(b) the Commissioner may in his discretion allow a
higher rate than that prescribed by the Board of
Inland Revenue.

38. (1) Where any of the following events occurs in the case of
any machinery or plant in respect of which an initial allowance or an
annual allowance has been made for any year of assessment to a
person carrying on a trade, profession or business, that is to say,
either

(q)the machinery or plant is sold, whether while still in use or
not; or

(b) the machinery or plant is destroyed; or

(c)the machinery or plant is put out of use as being worn out or
obsolete or otherwise useless or no longer required,

and the event in question occurs before the trade, profession or
business is permanently discontinued, an allowance or charge, to be
known as a 'balancing allowance' or a 'balancing charge', shall in the
circumstances mentioned in this section, be made to or, as the case
may be, on that person for the year of assessment in his basis period
for which that event occurs.

(2) Where there are no sale, insurance, salvage or compensation
moneys or where the amount of the capital expenditure of the person in
question on the provision of the plant or machinery still unallowed as
at the time of the event exceeds those moneys, a balancing allowance
shall be made, and the amount thereof shall be the amount of the
expenditure still unallowed as aforesaid or, as the case may be, the
excess thereof over the said moneys.

(3) If the sale, insurance, salvage or compensation moneys
exceed the amount, if any, of the said expenditure still unallowed as at
the time of the event, a balancing charge shall be made, and the
amount on which it is made shall be an amount equal to the excess or,
where the said amount still unallowed is nil, to the said moneys.





(4) Notwithstanding anything in the last preceding subsection, in
no case shall the amount on which a balancing charge is made on a
person exceed the aggregate of the following amounts, that is to say

(a)the amount of the initial allowance, if any, made to him in
respect of the expenditure in question;

(b) the amount of the annual allowances, if any, made
to him in respect of the expenditure in question,
including any allowance computed under proviso
(b) to subsection (2) of section 37 at a rate higher
than that prescribed by the Board of Inland
Revenue.

39. Where machinery or plant in the case of which any of the
events mentioned in subsection (i) of section 38 has occurred is
replaced by the owner thereof and a balancing charge falls to be made
on him by reason of that event or, but for the provisions of this
section, would have fallen to be made on him by reason thereof, then, if
by notice in writing to the Commissioner he so elects, the following
provisions shall have effect, that is to say

(a)if the amount on which the charge would have been made is
greater than the capital expenditure on providing the new
machinery or plant

(i) the charge, shall be made only on an amount equal to
the difference; and

(ii) no initial allowance, no balancing allowance and no
annual allowance shall be made or allowed in respect of the
new machinery or plant or the expenditure on the provision
thereof; and

(iii) in considering whether any, and, if so, what balancing
charge falls to be made in respect of the expenditure on the
new machinery or plant, there shall be deemed to have been
made in respect of that expenditure an initial allowance equal
to the full amount of that expenditure;

(b) if the capital expenditure on providing the new
machinery or plant is equal to or greater than the amount on
which the charge would have been made





(i) the charge shall not be made; and

(ii) the amount of any initial allowance in respect of the
said expenditure shall be calculated as if the expenditure had
been reduced by the amount on which the charge would
have been made; and

(iii) in considering what annual allowance is to be made in
respect of the new machinery or plant, there shall be left out
of account a proportion of the machinery or plant equal to
the proportion which the amount on which the charge would
have been made bears to the amount of the said expenditure;
and

(iv) in considering whether any and, if so, what
balancing allowance or balancing charge falls to be
made in respect of the new machinery or plant, the
initial allowance in respect thereof shall be deemed
to have been increased by an amount equal to the
amount on which the charge would have been
made.

40. Expenditure on the provision of machinery or
plant shall include capital expenditure on alterations to an
existing building incidental to the installation of that
machinery or plant for the purposes of the trade, profession
or business.

PART VII.

Personal Assessment.

41. (1) Any individual being a resident of the Colony may, by
notice in writing to the Commissioner, elect to be personally assessed
on his total income. Such election shall be made not later than the last
day of the year following the year of assessment to which it relates.

(2) For the purpose of this section

'individual' does not include a married woman who is not living apart
from her husband under the decree of a competent court or a duly
executed deed of separation;

'resident of the Colony' means an individual who stays in the Colony
for a period or a number of periods amounting to more than one
hundred and eighty days during





the year of assessment in respect of which the election
is made or for a period or periods amounting to more
than three hundred days in two consecutive years of
assessment, one of which is the year of assessment in
respect of which the election is made.

42. (1) In giving effect to an election under the provisions of this
Part the assessor shall make a single .assessment in the sum of the total
income, reduced by the following allowances

(a) an allowance allowance of seven thousand dollars;

(b)an allowance of five thousand dollars if at any, time during
the year preceding the year of assessment the individual had
a wife;

(c)an allowance of two thousand dollars if the individual had
living at any time during the year preceding the year of
assessment aii unmarried child who was under the age of
twenty-one years, and where lie had more than one such
child, aii allowance of two thousand dollars for the second
child and one thousand dollars each for the third aiid fourth
child aiid two hundred dollars for eacli subsequent child :
Provided that

(i) no such allowance shall be made in respect of a child
whose income froni any source, for the year preceding the
year of assessment exceeded two thousand dollars;

(ii) no such allowance shall be made in respect of a child
who carried on or exercised during the year preceding the
year of assessment a trade, profession, business, vocation or
employrnent, other than employrnent proved to the
satisfaction of the Commissioner to be apprenticeship;

(iii) the total allowances in respect of children shall not
exceed in all seven thousand dollars;

(d)the annual amount of any premium paid in respect of any
individual on the life of the individual oi. on the life of his
wife in any insurance company or the annual contribution
made by the individual to the Widows and Orphans
Pensions Scheme of the Colony or such other scheme or
fund as the Com





missioner may approve as equivalent to a Widows and
Orphans Pensions Scheme : Provided that no such deduction
shall be allowed in respect of any. such annual amount of
premium or contribution beyond an amount equal to one-
sixth part of the total income of such individual before
making the deductions specified in paragraphs (b), (c), (d)
aiid (e) of this subsection;

(e)sums payable by way of interest on any nioney borrowed for
the purpose of producing the income oi* any part thereof.

(2) For the purpose of this Part-

total income' means the total income ol' aii individual aiid,
save where she is entitled to be and lias elected to be
personally assessed, his wife, computed in accordance
with the provisions of Parts 11, .111, IV, and V, as the
case may be, including any interest paid or credited by
a bank approved under proviso (a) to section 28 and,
notwithstanding section 26, shall include the amount of
an), dividend from a c corporation which is entitled to
deduct tax under the provisions of section 27. The
amount to be included in respect of any such dividend
is the net dividend received plus the. tax which the
corporation has deducted or is eiititl(,.d to deduct in
respect of that dividend;

'wife' nicans the lawful wife of any individual married to him by a
Christian marriage 'or its civil equivalent, or in the case of a
Chinese or any other Asiatic the principal spouse;

'child' of aii individual includes a child b\, his wife oi- b\, a former wife
and a step-child. It includes also aii adopted child and, in the case
of Asiatics, a child by his concubine if such child is recognized
by him and his family as a mernber of his family.

(3) Aii individual who is liable to tax for a part only of a year of
assessment prior to the year of assessment 195o/Si shall be entitled
for that year to the same proportion only of the allowances under this
section as the number of days during which he is liable bears to the
number of days in that year of assessment.





(4) Every individual who claims an allowance under
this section shall make his claim on the prescribed form.
Such allowance shall be granted if the clairn contains such
particulars and is supported by such proof as the Com-
missioner may require.

43. (1) Tax shall be charged on the total income reduced by the
allowances under section 42 It the rates specified in the Second
Schedule: Provided that where a person is liable to tax under this Part
for for a part only of any year of assessment prior to the year of
assessment 1950/SI, the provisions of the Second Schedule shall be
modified in the nianner specified therein.

(2) Ariy tax which shall have been paid whedier directly
or by deduction under the provisions of section 6 or 29 and
any tax which a corporation has deducted or is entitled to
deduct under the provisions of section 27 and any business
profits tax which shall have been paid or charged upon any
part of the income under the provisions of Part IV shall,
when the relevant income is included in the total income of
any individual, be set off for the purposes of collection
against the tax charged on that individual. Xny excess of
tax, so borne by deduction over the tax payable by an
individual shall be repayable by the Commissioner on receipt
of a claim in the form prescribed and on the Commissioner
being satisfied that the claim is in order.

PART VIII.

Double Taxation and non-Residents.

44. (1) Any person who has paid, by deduction or otherwise, or is
liable to pay, tax under this Ordinance for any year of assessment on
any part of his income and who proves to the satisfaction of the
Commissioner that he has paid, by deduction or otherwise, or is liable
to pay, income tax in the United Kingdom for that year in respect of the
same part of his income, shall be entitled to relief from tax under this
Ordinance paid or payable by him on that part of his income at a rate
equal to the amount by which the rate of tax appropriate to his case
under this Ordinance exceeds half the appropriate rate of United
Kingdom tax.





If, however, the rate of tax appropriate to his case under this Ordinance
exceeds the appropriate rate of United Kingdom tax he shall be entitled
only to relief at a rate equal to half the appropriate rate of United
Kingdom tax.

(2) For the purposes of this section a certificate issued by or on
behalf of the Commissioners of Inland Revenue in the United Kingdom
shall be receivable in evidence to show what is the appropriate rate of
United Kingdom tax in any particular case.

(3) For the purpose of this section the expression 'rate
of tax' when applied to tax paid or payable tinder this
Ordinance means the rate determined by dividing the amount
of the tax paid or payable for the year (before the deduction
of the relief granted under this section) by the amount of the
income in respect of which the tax paid or payable under
this Ordinance lias been charged for that year except that
where the income which is the subject of a clairn to relief
under this section is computed by reference to the provisions
of section 21 on an amount other than the ascertained amount
of the actual profits, the rate of tax shall be determined by
the Commissioner.

45. (1) If any person resident in the Colony who has paid, by
deduction or otherwise, or is liable to pay, tax under this Ordinance for
any year of assessment on any part of his income, proves to the
satisfaction of the Commissioner that he has paid, by deduction or
otherwise, or is liable to pay, Commonwealth income tax for that year in
respect of the same part of his income, he shall be entitled to relief frorn
tax in the Colony paid or payable by him on that part of his income at a
rate thereon to be determined as follows

(a)if the Commonwealth rate of tax does not exceed one-half of
the rate of tax appropriate to his case under this Ordinance in
the Colony the rate at which relief is to be given shall be the
Commonwealth rate of tax;

(b)in any other case the rate at which relief is to be given shall
be half the rate of tax appropriate to his case under this
Ordinance.

(2) If any person not resident in the Colony, who has paid, by
deduction or otherwise, or is liable to pay, tax under





this Ordinance for any year of assessment on any part of his income
proves to the satisfaction of the Commissioner that he has paid, by
deduction or otherwise, or is liable to pay Commonwealth income tax
for that year of assessment in respect of the same part of his income, he
shall be entitled to relief from tax paid or payable by him under this
Ordinance on that part of his income at a rate thereon to be determined
as follows-

(a)if the Commonwealth rate of tax appropriate to his case does
not exceed the rate of tax appropriate to his case under this
Ordinance, the rate it which relief is to be given shall be one-
half of the Commonwealth rate of tax;

(b)if the Commonwealth rate of tax appropriate to his case
exceeds the rate of tax appropriate to his case under this
Ordinance, the rate at which relief is to be given shall be equal
to the amount by which the rate of tax appropriate to his case
under this Ordinance exceeds one-half of the Commonwealth
tax.

(3) For the purposes of this section, Commonwealth income tax
means any income tax charged tinder any law in force in any part of the
Commonwealth (otlier than the United Kingdom or this Colony) if the
legislature of that part or place has provided for relief in respect of tax
charged on income both in that part or place and this Colony in a
nianner similar to that provided in this section.

(4) For the purposes of this section the rate of tax tinder this
Ordinance shall be computed in the manner provided by subsection (3)
of section 44 and the Commonwealth rate of tax shall be computed in a
similar manner.

(5) Where a person is for any year of assessment resident both in
the Colony and in a part or place in which Commonwealth income tax is
charged, he shall for the purposes of this section be deemed to be
resident where during that year he resides for the longer period.

(6) The expression 'income' in section 44 and this

section shall mean income or profits.





46. Where, under any law in force in any part of the
Commonwealth provision is made for the allowance of relief
frorn income tax in respect of the payment of tax under this
Ordinance, the obligation as to secrecy imposed by section
4 of this Ordinance shall not prevent the disclosure to the
authorized officers of the government in that part of the
Commonwealth of such facts as may be necessary to enable
the proper relief to be given in cases where relief is claimed
from tax under this Ordinance or from income tax in that
part or place aforesaid.

47. (1) A non-resident person shall be assessable either directly or
in the name of his agent in respect of all his profits arising in or derived
from the Colony of any trade, profession or business carried on in the
Colony whether such agent has the receipt of the profits or not, and
the tax so assessed whether directly or in the name of the agent shall
be recoverable by all means provided in this Ordinance out of the
assets of the non-resident person or frorn the agent. Where there are
more agents than one they may be assessed jointly or severally in
respect of the profits of the non-resident person and shall be jointly
and severally liable for tax thereon.

(2) Ever), person chargeable with tax as agent, or froni
whom tax is recoverable in respect of the profits of another
person, may retain out of any assets coming into his
possession or control on behalf of such other person or in
his capacity as agent so much thereof as shall be sufficient
to produce the amount of such tax, and he shall be aiid is
hereby indemnified against any person whomsoever in respect
of his retention of such assets.

43. (1) Where a person carries on a business of shipowner or
aircraft owner or charterer and any, ship oi. aircraft owned or chartered
by such person calls at a port in the Colony the full amount of the
profits arising froni the carriage of passengers, mails, livestock and
goods shipped in the Colony shall be deemed to arise in the Colony
Provided that-

(a)this section shall not apply to goods which are brought to
the Colony solely for transhipment unless the outward
freight is payable in the Colony; and





profits received by a person other than profits, described in
this subsection shall bc assessable under Part IV of this
Ordinance.

The following provisions shall apply to the deter- of such
profits-

the profits arising in Hong Kong from shipping or air
transport business for any accounting period shall be the
sum bearing the same ratio to the sums receivable in respect
of carriage of passengers, mails, livestock and goods shipped
in the Colony as the total profits for the said period shown
by that person's accounts bear to the total sums receivable
by him in respect of the carriage of passengers, mails,
livestock and goods . Provided that where the said total
profits have been computed on a basis which differs
materially froni that prescribed in Part IV for the
ascertainment of profits, the ratio of profits shall be adjusted
so as to correspond as nearly as may be to the ratio which
would have been arrived -it if the profits had been computed
in accordance with the provisions of Part IV relating to the
ascertainment of profits;

where the provisions of paragraph (a) cannot for any reason
be satisfactorily applied, the profits arising in the Colony
may be computed on a fair percentage of the full sum
receivable on account of the carriage of passengers, mails,
livestock and goods shipped in the Colony : Provided that
where aii), person has been assessed for any year of
assessment by reference to such percentage, he shall be
entitled to claim at any time within one year of the end of
such year of assessment that his liability to tax for that year
be recomputed on the basis provided by paragraph (a);

where the Commissioner decides that the call of a ship or
aircraft belonging to a particular shipowner or charterer at a
port of the Colony is casual aiid that further calls by that
ship or aircraft or others in the same ownership are
improbable, he ma), in his discretion exempt the profits of
such ship or





aircraft from the provisions of this section, aiid thereupon
such profits shall be treated as if they, do not arise in the
Colony.

(3) The master of any ship or aircraft owned or
chartered by a person whose profits are calculated under the
provisions of this section shall (though not to the exclusion
of any other agent) be deemed the agent of such person for
all the purposes of the Ordinance.

49. (1) If the Governor in Council by order declares that
arrangements specified in the order have been made with the
Government of any territory outside the Colony with a view to
affording relief froni double taxation in relation to income tax and any
tax of a similar character imposed by .the laws of that territory, and that
it is expedient that those arrangements should have effect, the
arrangements shall have effect in relation to tax under this Ordinance
notwithstanding anything in any enactment.

(2) On the making of aii order under this section with respect to
arrangements relating to the United Kingdom, section 44 shall cease to
have effect except in so far as the arrangements otherwise provide.

(3) On the making of an order under this section with respect to
arrangements relating to any territory forming part of the
Commonwealth (other than the United Kingdom or this Colony),
section 45 shall cease to have effect as respects that territory except in
so far as the arrangements otherwise provide.

(4) Any order made under this section may be revoked by a
subsequent order.

(5) Where any arrangements have effect by virtue of
this section, the obligation as to secrecy imposed by section
4 shall not prevent the disclosure to any authorized officer
of the government with which the arrangements arrangements are
made
of such information as is required to be disclosed under the
arrangements.

(6) The Govertior in Council may make rules for
carrying out the provisions of any arrangements having
effect under this section.

50. (1) The provisions of this section shall have effect where,
under arrangements having effect under section 49, tax payable in
respect of any income in the territory with





the Government of which the arrangements are made is to be allowed
as a credit against tax payable in respect of that income in the Colony;
and in this section the expression 'foreign tax' means any tax payable
in that territory which under the arrangements is to. be so allowed and
the expression 'tax' means tax chargeable under this Ordinance.

(2) The amount of the tax chargeable in respect of the income shall
be reduced by the amount of the credit Provided that credit shall not
be allowed against tax for any year of assessment unless the person
entitled to the income is resident in the Colony for that. year.

(3) The credit shall not exceed the amount which would be
produced by computing the amount of the income in accordance with
the provisions of this Ordinance and then charging it to tax at a rate
ascertained by dividing the tax chargeable (before allowance of credit
under any arrangemerits having effect under section 49) on the total
income of the person entitled to the income by the amount of his total
income.

(4) Without prejudice to the provisions of the preceding
subsection, the total credit to be. allowed to a person for any year of
assessment for foreign tax under all arrangements having effect under
section 49 shall not exceed the total tax payable by him for that year of
assessment, less any tax payable by him under the provisions of
section 29.

(5) In computing the amount of the income-

(a)no deduction shall be allowed in respect of foreign tax
(whether in respect of the same or any other income);

(b)where the tax chargeable depends on the amount received in
the Colony, the said amount shall be increased by the
appropriate amount of the foreign tax in respect of the
income;

(c)where the income includes a dividend and under the
arrangements foreign tax not chargeable directly or by
deduction in respect of dividend is to be taken into account
in considering whether any, and if so what, credit is to be
given against tax in respect of the dividend the amount of
the income shall be increased by the amount of the foreign
tax not so





chargeable which falls to be taken into account in computing
the amount of the credit;

but notwithstanding anything in the preceding provisions of this
subsection a deduition shall be allowed of any,- amount by which the
foreign tax in respect of the income exceeds the credit therefor.

(6) Paragraphs (a) and (b) of the preceding subsection (but not
the remainder thereof) shall apply to the computation of total income
for the purposes of determining the rate mentioned in subsection (3),
and shall apply thereto in relation to all income iii the case of which
credit falls to be given for foreign tax tinder arrangements for the time
being in force under section 49.

(7) Where-

(a)the arrangements provide, in relation to dividends of some
classes but not in relation to dividends of other classes, that
foreign tax not chargeable directly or by deduction in respect
of dividends is to be taken into account in considering
whether any, and if so what, credit is to be given against tax
in respect of the dividends; aiid

(b)a dividend is paid which is not of a class in relation to which
the arrangements so provide,

then, if the dividend is paid to a company which controls, directly or
indirectly not less than one-half of the voting power in the company
paying the dividend, credit shall be allowed as if the dividend were a
dividend of a class in relation to which the arrangements so provide.

(8) Credit shall not be allowed under the arrangements against tax
chargeable in respect of the income of any person for any year of
assessment if he elects that credits shall riot be allowed in the case of
his income for that year.

(9) Any claim for an allowance by way of credit shall be made not
later than two years after the end of the year of assessment, and in the
event of any dispute as to the amount allowable the claim shall be
subject to objection aiid appeal in like manner as an assessment.





(io) Where the amount of a credit given under the
arrangement is rendered excessive or insufficient by reason
of any adjustment of the amount of any tax payable either
in the Colony or elsewhere, nothing in this Ordinance
limiting the time for the making of assessments or claims
for relief shall apply to any assessment or claim to which
the adjustment gives rise, being an assessment or claim
made not later than two years from the time when all such
assessments, adjustments and other determinations have
been made, whether in the Colony or elsewhere, as are
material in determining whether any and if so what credit
falls to be given.

PART IX.

Returns, etc.

51. (1) An assessor may give notice in writing to any person
requiring him within a reasonable time stated in such notice to furnish a
return of any sum assessable to property tax, salaries and annuities tax,
profits tax or interest tax under Parts II, III, IV and V, containing such
particulars and in such form as may be prescribed. An assessor shall
give notice to any individual who has elected to be personally
assessed under Part VII requiring him within a reasonable time stated in
such notice to furnish a return of his total income assessable under
this Ordinance, containing such particulars and in such form as may be
prescribed.

(2) Every person chargeable with tax for any year of assessment
who has not been required within a period of three months after the
commencement of such year of assessment to make a return of any
income assessable to .such tax for that year as provided in subsection
(i) shall within fourteen days after the expiration of such period give
notice to the Commissioner that he is so chargeable.

(3) An assessor may give notice in writing to any person when
and as often as he thinks necessary requiring him within a reasonable
time stated in such notice to furnish fuller or further returns respecting
any niatter of which a return is required or prescribed by this
Ordinance.

(4) For the purpose of obtaining full information in respect of any
person's income which is assessable to tax under this Ordinance





(a)an assessor may give notice in writing to such person
requiring him within a reasonable time stated in such notice
to produce for examination any deeds, plans, instruments,
books, accounts, trade lists, stock lists, or documents which
the assessor may deeni necessary;

(b)an assistant commissioner may give notice in writing to such
person or to any other person whorn lie may deem able to
furnish information iii respect of such income, requiring him
to attend at a time aiid place to be named by the assistant
commissioner for the purpose of being examined respecting
Such income or any transactions or matters affecting the
same.

(5) A return, statement, or forni purporting to be furnished under
this Ordinance by or on behalf of any pet-son shall for all purposes be
deemed to have been furnished by that person or by his authority, as
the case may be, unless the contrary is proved, and any person signing
any, such return, statement, or form shall be deemed to be cognizant of
all niatters therein.

(6) Any person discontinuing a business, profession or
employment or the ownership of property shall give to the
Commissioner notice of such discontinuance within one
month thereof.

52. (1) The Commissioner rnay give notice in writing to any officer
in the employment of the Governnient or of. any public body requiring
him within a reasonable time stated in such notice to furnish any
particulars which lie may require for the purposes of this Ordinance
which may be in the possession of such officer : Provided that no such
officer shall by virtue of this section be obliged to disclose any
particulars as to which lie is Under ativ express statutory obligation to
observe secrecy.

(2) Every person who is an eniployer shall, when required to do so
by notice in writing given by, an assessor, furnish within a reasonable
time stated in such notice a return containing the names and places of
residence and the full amount of the remuneration, whether in cash or
otherwise, for the period specified in the notice, of





(a)all persons employed by him in receipt of remuneration in
excess of a minimum figure to be fixed by the assessor, and

(b)any other person employed by him named by the assessor.

(3) Any director of a company, or person engaged in
the management of a company, shall be deemed to be a
person employed by the company.

53. An act or thing required by or under this Ordinance
to be done by any person shall, if such person is an
incapacitated or non-resident person, be deemed to be
required to be done by the trustee of such incapacitated person
or by the agent of such non-resident person, as the case may
be.

54. The executor of a deceased person shall be chargeable with
the tax for all periods prior to the date of such person's death with
which the said person Would be chargeable if lie were alive, and shall
be liable to do all such acts, matters or things as the deceased person if
lie were alive would be liable to do under this Ordinance

Provided that-

(a)no proceedings shall be instituted against the executor under
the provisions of Part XIV in respect of any act or default of
the deceased person ;

(b)no assessment or additional assessment in respect of a period
prior to the date of such person's death shall be made after
the expiry of two years froni such date of death ; and

(c)the liability of aii executor under this section shall be limited
to the sum of

(i) the deceased person's estate in his possession or
control at the date when notice is given to him that liability
to tax will arise under this section, and

(ii) any part of the estate which may have passed to a
beneficiary within twelve months after the death
of the deceased person.





55. Where two or more persons act in the capacity of trustees of a
trust or executors of a deceased person's estate, they may be charged
jointly or severally with the tax with which they are chargeable in that
capacity, and shall be jointly and severally liable for payment of the
same.

56. (1) Wherever two or more persons in partnership act in the
capacity of trustees or executors, or as agents, or are employers, or are
persons in receipt of profits or act in any other capacity whatever,
either on behalf of themselves or of any other person, the precedent
partner of such partnership shall be answerable for doing all such acts,
niatters and things as would be required to be done under the
provisions of this Ordinance by an individual acting in such capacity
that any person to whom a notice has been given under the provisions
of this Ordinance as precedent partner of a partnership shall be
deerned to be the precedent partner thereof unless he proves that he is
not a partner in such partnership, or that some other person resident in
the Colony is the precedent partner thereof.

(2) Where two or more persons who are riot in partner-
ship act Jointly in any capacity mentioned in subseciion (i),
they shall be jointly and severally answerable for doing all
such acts, matters, and things as would be required to be
done under the provisions of this Ordinance by an individual
acting in such capacity.

57. The secretary, Manager, or other principal officer of every
company or body of persons corporate or unincorporate shall be
answerable for doing all such acts, matters, or things as are required to
be done under the provisions of this Ordinance by such company, or
body of persons : Provided that any person to whom a notice has been
given under the provisions of this Ordinance on behalf of a company
or body of persons shall be deerned to be the principal officer thereof
unless lie proves that lie lias no connexion with the company or body
of persons, or that some other person resident in the Colony is the
principal officer thereof.

58. (1) Every notice to be given by the Commissioner, an assistant
commissioner, or an assessor under this Ordinance shall bear the name
of the Commissioner or assistant





commissioner or assessor, as the case may be, and every such notice
shall be valid if the name of the Commissioner, assistant commissioner
or assessor is duly printed or signed thereon.

(2) Every notice given by, virtue of this Ordinance may, be served
on a person either personally or by being delivered at, or sent by post
to, his last known place of abode or any place at which he is, or was
during the year to which the notice relates, carrying on business :
Provided that a notice of assessment under section 62 shall be served
personally or by being sent by registered post (or in the case of an
assessment to property tax under Part 11 either by registered post or
by ordinary post) to any such place as aforesaid.

(3) Any notice sent by post shall be deemed to have been served
on the day succeeding the day on which it would have been received
in the ordinary course by post.

(4) In proving. service by post it shall be sufficient to prove that
the letter containing the notice was duly addressed and posted.

(5) Every name printed or signed on any notice or
signed on any certificate given oi. issued for the purposes of
this Ordinance which purports to be the narne of the person
authorized to give or issue the same shall be judicially
noticed.

PART X.

Assessments.

59. (1) Every person who is in the opinion of an assessor
chargeable with tax under this Ordinance shall be assessed by him as
soon as may be after the expiration of the time limited by the notice
requiring him to furnish a return under subsection (i) of section 51 :
Provided that the assessor may assess any person at any time if lie is
of opinion that such person is about to leave the Colony, or that for
any other reason it is expedient to do so.

(2) Where a person has furnished a return of income liable to
assessment the assessor may either

(a)accept the return and make an assessment accordingly or





(b)if lie does not accept the return, estimate the amount of the
assessable income of such person and assess him
accordingly, :

Provided that if the assessor accepts the return as substantially
correct, but considers it necessary to make further inquiries on any
matter, he may rnake immediately a provisions assessment in the
amount of the return which until amended shall be a valid assessment
for all purposes.

(3) Where a person has not furnished a return and the assessor is
of the opinion that such person is chargeable with tax, he may estimate
the amount of the assessable income of such person and assess him
accordingly, but such assessment shall not affect the liability of such
person to a penalty by reason of his failure or neglect to deliver a
return.

(4) In the case of profits from a trade or business, if
accounts of such trade or business have not been kept in a
satisfactory form, the assessor may assess the profits or
income of such trade or business on the basis of the usual
rate of net profit on the turnover of such trade or business,
and the Board of Inland Revenue may prescribe the amounts
of such usual rates of profits in particular classes of trade
or business.

60. Where it appears to aii assessor that a provisional assessment
inade under subsection (2) Of SCCtiOn 59 should be increased or that
for any year of assessment any person chargeable with tax lias not
been assessed or has been assessed at less than the proper amount,
the assessor may, within the year of assessment or within three years
after the expiration thereof, assess such person at the amount or
additional amount at which according to his judgment such person
ought to have been assessed, and the provisions of this Ordinance as
to notice of assessment, appeal and other proceedings shall apply, to
such assessment or additional assessment and to the tax charged
thereunder : Provided that, where the non-assessment or under
assessment of any person for any year of assessment is due to fraud or
wilful evasion, such assessment or additional assessment may be made
at any time within six years after the expiration of that
year of assessment.





61. Where an assessor is of opinion that any transac-
tion which reduces or would reduce the amount of tax payable
by any person is artificial or fictitious or that any disposition
is not in fact given effect to, lie may disregard any such
transaction or disposition and the person concerned shall be
assessable accordingly.

62. (1) An assistant commissioner shall give a notice of assessment
to each person who lias been assessed stating the amount assessed
and the amount of tax charged.

(2) Where the assessment is a provisional assessment made tinder
subsection (2) of section 59 the person assessed shall be notified
accordingly, and he shall further be notified in due course if such
provisional assessment is confirmed. The confirmation of a provisional
assessment shall not preclude the making of an additional assessment
subsequently tinder section 60.

(3) Where by reason of an amendment of the law it is
necessary to vary the amount of tax charged in any notice of
assessment the assistant commissioner may give such noti-
fication as may be necessary, to the person assessed in that
notice of assessment, and any notification so given shall, as
regards any particulars of the assessment contained in the
notification which have not been included in the notice of
assessment, have effect as if the notification were a notice of
assessment.

63. No notice, assessment, certificate, or other proceeding
purporting to be in accordance with the provisions of this Ordinance
shall be quashed, or deemed to be void or voidable, for want of forni,
or be affected by reason of a mistake, defect, or omission therein, if the
same is in substance and effect in conformity with or according to the
intent and meaning of this Ordinance, and if the person assessed or
intended to be assessed or affected thereby is designated therein
according to common intent and understanding.

PART XL

Appeals.

64. (1) Any person aggrieved by an assessment made under this
Ordinance may within one month from the date of the notice of such
assessment appeal to the Commissioner by





notice of objection in writing to review and revise such assessment.
Any person so appealing (hereinafter referred to as the appellant) shall
state in his notice the grounds of his objection and the notice shall not
be valid unless it contains such grounds and is made within the period
above mentioned: Provided that the Commissioner, upon being
satisfied that owing to absence from the Colony, sickness, or other
reasonable cause the appellant was prevented from giving notice of
objection within such period, shall grant an extension thereof: Provided
further that, where anv assessment appealed against has been made in
the absence of a return of income by the appellant, no notice of
objection shall be valid unless and until such return has been duly
made.

(2) On receipt of a valid notice of objection tinder subsection (i),
the Commissioner may cause further inquiry to be made by an
assessor, and if in the course of such inquiry an agreement is reached
as to the amount at which the appellant is liable to be assessed, any
necessary adjustment of the assessment shall be made.

(3) Where no agreement is reached between the appellant and
the assessor in the manner provided in subsection (2), the
Commissioner shall, subject to the provisions of section 67 fix a time
and place for the hearing of the appeal.

(4) Every appellant shall attend before the Commissioner at the
time and place fixed for the hearing of the appeal. The appellant may
attend the hearing of the appeal in person or by an authorized
representative. The Commissioner may, if he thinks fit, from time to time
adjourn the hearing of an appeal for such time and place as lie may fix
.for the purpose. In any case in which an authorized representative
attends on behalf of the appellant, the Commissioner may adjourn the
hearing of the appeal and may, if he considers that the personal
attendance of the appellant is necessary for the determination of the
appeal, require that the appellant shall attend in person at the time and
place fixed for the adjourned hearing of the appeal. If the appellant or
his authorized representative fails to attend at the time and place fixed
for the hearing or any adjourned hearing of the appeal, or if the
appellant fails to attend in





person when required so to attend by the Commissioner, the
Commissioner may dismiss the appeal : Provided that if the appellant
shall within a reasonable time after the dismissal of an appeal satisfy
the Commissioner that he or his representative was prevented from due
attendance at the hearing or at any adjourned hearing of such appeal
by absence from the Colony, sickness, or other unavoidable cause, the
Commissioner may vacate the order of dismissal and fix a time and
place for hearing of the appeal.

(5) The Commissioner shall have power to summon any person
whom he may consider able to give evidence respecting the appeal to
attend before him at the hearing and may examine such person on oath
or otherwise. Any person so attending may be allowed by the
Commissioner any reasonable expenses necessarily incurred by such
person in so attending. The Commissioner shall for the purposes of
this section have the powers granted under paragraph (i) of section 3
of the Commissioners Powers Ordinance, subject to the provisions of
section So hereof.

(6) In disposing of an appeal the Commissioner may confirm,
reduce, increase or annul the assessment, and shall record his
determination in writing and announce it orally.

(7) Where the Commissioner authorizes an assistant
commissioner to hear appeals, such authority shall not
empower such assistant commissioner to hear an appeal
against an assessment which he has himself signed and
allowed or against a penalty which he has himself
imposed.

65. (1) For the purpose of hearing appeals in the manner
hereinafter provided, there shall be a panel for a Board of Review
consisting of not more than twenty members who shall be appointed
froni time to time by the Governor. The members of the panel shall hold
office for a term of three years but shall be eligible for reappointment.

(2) There shall be a clerk to the Board of Review (hereinafter
referred to as the Board) who shall be appointed by the Governor.

(3) The Governor may if requested by the Board appoint a legal
adviser to assist the Board in the determining of any





question relevant to an appeal to the Board provided that such legal
adviser shall not be a member of the Board.

(4) Three or more members of the panel, one of whom shall be
nominated as chairman, shall be nominated by the Colonial Secretary
and summoned by the clerk to attend meetings of the Board at which
appeals are to be heard. At any such a meeting a quorum shall consist
of three members. All matters coming before the Board shall be decided
by a majority of votes and in the case of an equality of votes the
chairman shall have a second or casting vote.

(5) At the request of the Colonial Secretary, the clerk to the Board
shall summon a meeting of the Board consisting of all the members of
the panel available in the Colony. At such a meeting a quorum shall
consist of five members

(6) The remuneration (if any) of the members of the
Board, the clerk, and the legal adviser shall be fixed by the
Governor.

66. (1) Any appellant, or the authorized representative of any
appellant, who is dissatisfied with the determination by the
Commissioner of an appeal under section 64 may declare his
dissatisfaction with that determination. Such declaration shall be made
orally immediately after the announcement by the Commissioner of his
determination or shall be communicated in writing to the Commissioner
within one week froni the date of such announcement.

(2) Where the appellant has declared or communicated his
dissatisfaction in accordance with subsection (i), the Commissioner
shall, within one month of the determination of the appeal, transmit in
writing to the appellant or his authorized representative his
determination and reasons therefor

(3) Within one month of the transmission of such written
determination and reasons by the Commissioner, the appellant may
give notice of appeal to the Board. Such notice shall not be entertained
unless it is given in writing to the clerk to the Board and is
accompanied by a copy of the Commissioner's written determination,
together with a statement of the grounds of appeal therefrom.





(4) Save with the consent of the Board and on such
terms as the Board may determine the appellant may not at
the hearing by the Board rely on any grounds of appeal
other than the grounds stated in accordance with subsection
(3), and may not adduce any evidence other than evidence
adduced at the bearing of the appeal before the Commissioner


67. Notwithstanding the provisions of section 64 where
the Commissioner is of opinion that no useful purpose would
be served by his hearing an appeal, he may refer it to the
Board of Review, and the Board shall hear and deterniine
such appeal and the provisions of section 68 shall apply
accordingly.

68. (1) As soon as may be after the receipt of a notice of appeal,
the clerk to the Board shall fix a time and place for the hearing of the
appeal, and shall give fourteen clear days' notice thereof both to the
appellant and to the Commissioner.

(2) Every appellant shall attend at the meeting of the Board at
which the appeal is heard in person or by an authorized representative :
Provided always that the Board may postpone the hearing of the
appeal for such time as it thinks necessary for the attendance of the
appellant.

(3) The assessor who made the assessment appealed against or
some other person authorized by the Commissioner shall attend such
meeting of the Board in support of the assessment.

(4) The onus of proving that the assessment as determined by
the Commissioner on appeal, or as referred by him under section 67, as
the case may be, is excessive shall be on the appellant.

(5) All appeals shall be heard in camera.

(6) The Board shall have power to summon to attend at the
bearing any person whom it may consider able to give evidence
respecting the appeal and may examine him as a witness either on oath
or otherwise. Any person so attending may be allowed by the Board
any reasonable expenses necessarily incurred by him in so attending.





(7) At the hearing of the appeal the Board may, subject to the
provisions of subsection (4) of section 66, admit or reject any evidence
adduced, whether oral or documentary, and the provisions of the
Evidence Ordinance, relating to the admissibility of evidence shall not
apply.

(8) After hearing the appeal, the Board shall confirm, reduce,
increase or annul the assessment as determined by the Commissioner
on appeal, or as referred by hini under section 6-1, as the case may be,
or may remit the case to the Commissioner with the opinion of the
Board thereon. Where a case is so remitted by the Board, the
Commissioner shall revise the assessment as the opinion of the Board
may require.

(9) Where under subsection (8), the Board does not
reduce or annul such assessment, the Board may, order the
appellant to pay as costs of the Board a sum not exceeding
one hundred dollars, which shall be added to the tax charged
and recovered therewith.

69. (1) The decision of the Board shall be final : Provided that
either the appellant or the Commissioner may make an application
requiring the Board to state a case on a question of law for the opinion
of the Supreme Court. Such application shall not be entertained unless
it is made in writing and delivered to the clerk to the Board, together
with a fee of fifty dollars, within one month of the date of the Board's
decision. If the decision of the Board shall be notified to the
Commissioner or to the appellant in writing, the date of the decision,
for the purposes of determining the period within which either of such
persons may require a case to be stated, shall be the date of the
communication by which the decision is notified to him : And provided
also that the appellant or the Commissioner may appeal to the Supreme
Court on a question of fact with the leave of such Court.

(2) The stated case shall set forth the facts and the decision of the
Board, and the party requiring it shall transmit the case, when stated
and signed, to the Supreme Court within fourteen days after receiving
the same.

(3) At or before the time when lie transmits the stated case to the
Supreme Court, the party requiring it shall send





to the other party notice in writing of the fact that the case
has been stated on his application and shall supply him with
a copy of the stated case.

(4) Any judge of the Supreme Court may cause a stated case to
be sent back for amendment and thereupon the case shall be amended
accordingly.

(5) Any judge of the Supreme Court shall hear and determine
any question of law arising on the stated case and may in accordance
with the decision of the court upon such question confirm, reduce,
increase or annul the assessment determined by the Board, or may
remit the case to the Board with the opinion of the court thereon.
Where a case is so remitted by the court, the Board shall revise the
assessment as the opinion of the court may require.

(6) In any proceedings before the Supreme Court under this
section, the court may make such order in regard to costs in the
Supreme Court and in regard to the sum paid under subsection (i) as to
the court may seem fit.

(7) Appeals from decisions of the Supreme Court under
this section shall be governed by the provisions of the
Supreme Court Ordinance, the Code of Civil Procedure, the
Full Court Ordinance, and the Orders and Rules governing
appeals to the Privy Council.

70. Where no valid objection or appeal has been lodged within the
time limited by this Part against an assessment as regards the amount
of the assessable income assessed thereby, or where the amount of
the assessable income has been agreed to under subsection (2) of
section 64, or where the amount of such assessable income has been
determined on objection or appeal, the assessment as made or agreed
to or determined on appeal, as the case may be, shall be final and
conclusive for all purposes of this Ordinance as regards the amount of
such assessable income : Provided that nothing in this Part shall
prevent an assessor from making an assessment or additional
assessment for any year of assessment which does not involve re-
opening any matter which *has been determined on appeal for the
year.





PART XII

Payment and Recovery of Tax.

71. (1) The tax charged by any assessment shall be paid in the
manner directed in the notice of assessment on or before a date
specified in such notice. Any tax not so paid shall be deemed to be in
default, and the person by whom such tax is payable or, where any tax
is payable by more than one person or by a partnership, then each of
such persons and each partner in the partnership, shall be deemed to
be a defaulter, for the purposes of this Ordinance.

(2) Tax shall be paid notwithstanding any notice of objection or
appeal, unless the Commissioner orders that payment of tax or any part
thereof be held over pending the result of such objection or appeal.

(3) Where the Commissioner is of opinion either that the tax or
any part thereof be held over under subsection (2) is likely to become
irrecoverable, or that the appellant is unreasonably delaying the
prosecution of his appeal, he may cancel any order made under that
subsection and make such fresh order as the case may appear to him to
require.

(4) Where, upon the final determination of an appeal under Part
X1, or upon any order made by the Commissioner any tax which lias
been held over under subsection (2) becomes payable or the tax
charged is increased, the Commissioner shall give to the appellant a
notice in writing fixing a date on or before which any tax or balance of
tax shall be paid. Any tax not so paid shall be deerned to be in default.

(5) Where any tax is in default, the Commissioner may in his
discretion order that a sum or sums not exceeding five per cent in all of
the amount in default shall be added to the tax and recovered
therewith.

(6) Notwithstanding anything contained in the previous
subsections of this section the Commissioner may agree to accept
payment of salaries and annuities tax by instal
ments.





72. In the succeeding sections of this Part, 'tax'

includes any sum or sums added under subsection (5) of if
section 71 by reason of default, together with any fines,
penalties, fees, or costs incurred.

73. (1) Save as provided in subsection (2), tax in default shall be a
first charge upon all the assets of the defaulter : Provided that

(a)such charge shall not extend to or affect any assets sold by
the defaulter to a bona 'fide purchaser for value prior to the
seizure of the same in accordance with the provisions of
section 74;

(b)as regards immovable property, the tax shall not rank in
priority to any lease or encumbrance created bona fide for
value and registered prior to the date of such seizure; and

(c)-is regards movable property, where tax for more than one
year of assessment is in default, the tax for one year only, to
be selected by the Commissioner, shall rank in priority to any
lien or encumbrance created bona fide for value prior to the
date of default.

(2) A receiver shall pay out of the assets under his
control the tax charged or chargeable for one complete year
of assessment prior to the date of the insolvency, bankruptcy,
or liquidation, to be selected by the Commissioner, as a
first charge on such assets and any other tax charged or
chargeable for periods prior to such date shall be an unsecured
debt :Provided that where the receiver proves to the
satisfaction of the Commissioner that any tax to which this
subsection applies is excessive, the Commissioner may
notwithstanding the provisions of section 70, review the
assessment in respect of which the tax is charged and
make such adjustment as lie may in his discretion think
reasonable.

74. (1) The Commissioner may appoint persons to be collectors.

(2)(a) Where any tax is in default, the Commissioner may issue a
certificate to any collector or bailiff containing particulars of
such tax and the name of the defaulter, and the officer to
whom such certificate





is issued shall be empowered and is hereby required to
cause the tax to be recovered from the defaulter named in the
certificate by seizure and sale of his movable property.

(b)The said seizure shall be effected in such manner as may be
prescribed and any property so seized shall be kept for five
days at the costs aiid charges of the defaulter. If the
defaulter does not pay the tax in. default together with the
costs and charges within -the said five days, the collector or
bailiff shall cause the said property to be sold by public
auction.

(c) The sum realized by the sale shall be applied-

(i) firstly, in payment of the costs and charges of seizing,
keeping, and selling the property, and

(ii) secondly, in satisfaction of the tax in default, and any
balance shall be restored to the owner of the property seized.

(3) Whenever the Commissioner issues a certificate
under this section, he shall at the same time issue to the
defaulter a notification thereof by personal service, registered
post, or telegraph; but the. non-receipt of such notification
by the defaulter shall not invalidate proceedings under this
section.

75. (1) Where the Commissioner is of opinion in any case that
recovery of tax in default by seizure and sale is impracticable or
inexpedient, or where the full amount of the tax has not been recovered
by seizure and sale, he may issue a certificate containing particulars of
such tax and the name and last known place of business or residence
of the defaulter to a magistrate. The magistrate shall thereupon
summon such defaulter before him to show cause why further
proceedings for the recovery of the tax should not be taken against
him, and in default of sufficient cause being shown, the tax in default
shall be deemed to be a fine imposed by a sentence of the magistrate
on such defaulter for an offence punishable with fine only or not
punishable with imprisonment, and the provisions of the Magistrates
Ordinance relating to default of payment of a fine imposed for such an
offence shall thereupon apply, and the magistrate may make





any direction which, by the provisions of that Ordinance, he could
have made at the time of imposing such sentence : Provided that
nothing in this section shall authorize or require the magistrate in any
proceeding thereunder to consider, examine, or decide the correctness
of any statement in the certificate of the Commissioner.

(2) In any proceeding under subsection (i) the Commissioner's
certificate shall be sufficient evidence that the tax has been duly
assessed and is in default, and any plea that the tax is excessive,
incorrect, or under appeal shall not be entertained, except that where
any person proceeded against has not appealed within the proper time
against all the assessment in respect of which the tax is charged and
alleges that the tax is in excess of the sum which would have been
charged if lie had so appealed, the court may adjourn the matter for not
more than thirty days to enable such person to. submit to the
Commissioner his objection to the tax.

(3) The Commissioner, shall notwithstanding the provisions of
section 70, consider such objection and give his decision thereon,
which shall be final, and ~hall be certified by him to the magistrate, and
proceedings under this section shall thereupon be resumed to enforce
payment of the tax as reduced or confirmed under such decision.

76. (1) Where tax payable by any person is in default and it
appears to the Commissioner to be probable that any person

(a) owes or is about to pay money to the defaulter; or

(b) holds money for or on account of the defaulter ; or

(c)holds money on account of some other person for payment
to the defaulter; or

(d)has authority from some other person to pay money to the
defaulter,

the Commissioner may give to such person notice in writing (a copy of
which shall be sent by post to the defaulter) requiring him to pay any
such moneys not exceeding the amount of the tax in default to the
officer named in such notice. The notice shall apply to all such moneys
which are in his hands or due from him or about to be paid by him at
the date of receipt of such notice, or come into his hands or





become due from him or about to be paid by him at any time within a
period of thirty days thereafter.

(2) Any person who has made any payment in pursuance of this
section shall be deemed to have acted under the authority of the
person by whom the tax was payable and of all other persons
concerned, and is hereby indemnified in respect of such payment
against all proceedings, civil or criminal, notwith standing the
provisions of any written law, contract or agreement.

(3) Any person to whom a notice has been given under
subsection (i) who is unable to comply therewith owing to the fact
that the moneys in question do not come into his hands or become due
from him within the period referred to in subsection (i) shall within
fourteen days of the expiration thereof give notice in writing to the
Commissioner acquainting him with the facts.

(4) Where any person to whom a notice has been given under
subsection (i) is unable to comply therewith and has failed to give
notice to the Commissioner as provided in subsection (3), or where lie
has deducted or could have deducted the tax to which the notice
relates or any part thereof and has not paid over as directed by the
Commissioner the amount of such tax or part thereof within fourteen
days after the expiration of the period referred to in subsection (i), he
shall be personally liable for the whole of the tax which lie has been
required to deduct, which may be recovered froni him by all means
provided in this Ordinance for the recovery of tax from a person who
has made default in payment.

77. (1) Where the Commissione is of opinion that any person is
about to or likely to leave the Colony without paying all tax assessed
upon him, he may issue a certificate containing particulars of such tax
and the nanie of such person to a magistrate, who shall on receipt
thereof issue a direction to the Commissioner of Police to take such
measures as may be necessary to prevent such person froni leaving
the Colony without paying the tax or furnishing security to the
satisfaction of the Commissioner for payment thereof.

(2) At the time of issue of his certificate to the magistrate, the
Commissioner shall issue to such person a





notification thereof by personal service, or registered post ; but the
non-receipt of any such notification by such person shall not
invalidate proceedings under this section.

(3) Production of a certificate signed by the Commis-
sioner, deputy commissioner, or an assistant commissioner
stating that the tax has been paid, or that security has been
furnished for payment of the tax, to a police officer in charge
of a police station shall be sufficient authority for allowing
such person to leave the Colony.

78. Where the Commissioner is of opinion that applica-
tion of any of the provisions of this Part has failed or is
likely to fail to secure payment of the whole of the tax due
frorn any person it shall be lawful for him to proceed to
recover any sum remaining unpaid by any other means
of recovery provided in this Part.

PART XIII.

Repayment.

79. (1) If it is proved to the satisfaction of the Commissioner by
claim duly made in writing within three years of the end of a year of
assessment that any person lias paid tax in excess of the amount with
which he was properly chargeable for the year, such person shall be
entitled to have refunded the amount so paid in excess: Provided that
nothing in this section shall operate to extend or reduce any time limit
for appeal or repayment specified in any other section or to validate
any objection or appeal which is otherwise invalid, or to authorize the
revision of any assessment or other matter which has become final aiid
conclusive.

(2) Where through death, incapacity, bankruptcy, liquidation, or
other cause a person who would but for such cause have been entitled
to make a claim under subsection (i) is unable to do so, his executor,
trustee, or receiver, as the case may be, shall be entitled to have
refunded to him for the benefit of such person or his estate any tax
paid in excess within the meaning of subsection (1).







PART XIV.

Penalties and Offences.

80. (1) Any person who without reasonable excuse-

(a)fails to comply with the requirements of a notice given to
him under section 5I (1), (3) or (4) (a) or section 52 (1) or (2) ; or

(b)fails to attend in answer to a notice or summons issue under
section 5I (4) (b), section 64 (5) or section 68 (6), or having
attended fails without sufficient cause to answer any
questions lawfully put to him; or

(c)fails to comply with the requirements of section SI (2) or (6)
or section 73 (2),

shall be guilty of an offence : Penalty a fine of two thousand dollars.

(2) Any person who without reasonable excuse-

(a)makes an incorrect return by omitting or understating any
income or profits of which he is required by this Ordinance
to make return, either on his behalf or on behalf of another
person or a partnership; or

(b)makes an incorrect statement in connexion with a claim for
any deduction or allowance under this Ordinance; or

(c)gives any incorrect information in relation to any matter or
thing affecting his own liability to tax or the liability of any
other person or of a partnership,

shall be guilty of an offence: Penalty a fine of two thousand dollars
and the amount of tax which has been undercharged in consequence
of such incorrect return, statement, or information, or would have been
so undercharged if the return, statement or information had been
accepted as correct.





(3) No person shall be liable to any penalty under this section
unless the complaint concerning such offence was made in the year of
assessment in respect of or during which the offence was committed or
within three years after the expiration thereof.

(4) The Commissioner may compound any offence under
this section and may before judgment stay or compound any
proceedings thereunder.

81. Any person who-

(a)acts under this Ordinance without taking an oath of secrecy
as required by subsection (2) of section 4; or

(b)acts contrary to the provisions of subsection (i) of section 4
or to an oath taken under subsection (2) Of section 4; or

(c)aids, abets, or incites any other person to act contrary to the
provisions of this Ordinance,

shall be guilty of an offence: Penalty a fine of one thousand
dollars.

82. (1) Any person who wilfully with intent to evade or to assist
any other person to evade tax

(a)omits from a return made under this Ordinance any sum
which should be included; or

(b)makes any false statement or entry in any return made under
this Ordinance; or

(c)makes any false statement in connexion with a claim for any
deduction or allowance under this Ordinance; or

(d)signs any statement or return furnished under this
Ordinance without reasonable grounds for believing the
same to be true; or

(e)gives any false answer whether verbally or in writing to any
question or request for information asked or made in
accordance with the provisions of this Ordinance; or





prepares or maintains or authorizes the preparation or
maintenance of any false books of account or other records
or falsifies or authorizes the falsification of any books of
account or records; or

(g)makes use of any fraud, art, or contrivance, ,vhatsoever or
authorizes the use of any such fraud, art, or contrivance,

shall be guilty of a misdemeanor: Penalty on summary conviction a fine
of two thousand dollars and treble the amount of tax for which he is
liable under this Ordinance for the year of assessment in respect of or
during which the offence was committed, and to imprisonment for six
months, and on indictment a fine of ten thousand dollars and treble the
amount of the tax and to imprisonment for three years.

(2) The Commissioner may compound any offence under
this section and may before judgment stay or compound anv
proceedings thereunder.

83. The institution of proceedings for, or the imposition of, a
penalty, fine, or term of imprisonment under this Part shall not relieve
any person from liability to assessment, or payment of any tax for
which he is or may be liable.

84. No prosecution in respect of an offence under
section 80 or 82 may be commenced except at the instance
of or with the sanction of the Commissioner.

PART XV.

General.

85. (1) The Board of Inland Revenue may from time to time make
rules generally for carrying out the provisions of this Ordinance and
for the ascertainment and determination nation of any class of income
or profits.

(2) Without prejudice to the generality of the foregoing power
such rules may

(a)prescribe the procedure to be followed on application for
refunds and relief;





(b)provide for any matter which by this Ordinance is to be or
may be prescribed.

(3) Such rules may prescribe fines recoverable on summary
conviction for any contravention thereof or failure to comply therewith
not exceeding in eacli case a sum of two hundred dollars.

(4) All such rules made by the Board of Inland Revenue
shall be submitted to the Governor, and shall be subject to
the approval of the Legislative Council.

86. The Board of Inland Revenue may prescribe any
forms which may be necessary for carrying this Ordinance
into effect.

87. The Governor in Council may by order exempt any person,
office or institution from payment of the whole or any portion of any
tax chargeable under this Ordinance.

88. Notwithstanding anything to the contrary in. this Ordinance
contained there shall be exempt aiid there shall be deemed always to
have been exempt frorn tax any charitable ecclesiastical or educational
institution of a public character : Provided that where a trade or
business is carried on by aily such institution the profits derived from
such trade or business shall be exempt and shall be deeined to have
been exempt froni tax only if such profits are applied solely for
charitable purposes and either

(a)the trade or business is exercised in the course of the actual
carrying out of a primary purpose of such institution ; or

(b) the work in connexion with the trade or business is
mainly carried on by persons for whose benefit such
institution is established.

FIRST SCHEDULE [ss. 2, 5 14
15, 28, 29.]
Standard Rate.

For the year of assessment 1947/48 and until supersFor the year of assessment 1950/51 and until superseded Twelve and one-
half per cent.





SECOND SCHEDULE. [ss. 13,
43(1).

Rates

For the year of assessment 1947/48 and each year
thereafter until superseded.

SECOND COLUMN. THIRD COLUMN.

(a)Upon the first five thousand dollarsA standard rate
(b)Upon the next five thousand dollars 1
(c) do a
(d) - do The full standard rate
(e) do 1 1/4 standard rate

(f) do 1 1/2

(g) - do - 1 3/4

(h) Upon the remainder Twice the standard rate
NOTE: -Where a person is liable to the appropriate tax for a part only of any
year of assessment the amounts in the second column against items (a)
to (g) will be reduced in the proportion which the number of days he is
so liable bears to the number of days in that year of assessment.

For the year of assessment 1950/51 and each year thereafter
until superseded.

SECOND COLUMN. THIRD COLUMN.

(a) Upon the first five thousand dollars standard rate
(b) Upon the next five thousand dollars d

(c) do
(d) do
(e) do The full standard rate
(f) do 1 1/5 standard rate

(g) do 1 2/5 ' '
(h) do 1 3/5 ' '
(i) do 1 4/5 ' '
(j) Upon the remainder Twice the standard rate
20 of 1947. 3 of 1949. 9 of 1950. 10 of 1950. 30 of 1950. 37 of 1950. Short title. Interpretation. (Cap. 20.) 3 of 1949, s. 2. (Cap. 20.) 3 of 1949, s. 2. [s. 2 cont.] (Cap. 117.) 30 of 1950, Schedule. First Schedule. 30 of 1950, Schedule. Board of Inland Revenue. Official secrecy. [s. 4 cont.] 30 of 1950, Schedule. Imposition of property tax. (Cap. 116.) (Cap. 255.) 3 of 1949, s. 3. 3 of 1949, s. 3. (Cap. 116.) By whom payable. 30 of 1950, Schedule. Refund in case of unoccupied property. Imposition of Salaries and Annuities Tax. 30 of 1950, Schedule. 30 of 1950, Schedule. Definition of income from employment. 3 of 1949, s. 4. 9 of 1950, Schedule. 10 of 1950, s. 3. [s. 9 cont.] Aggregation of married persons' incomes. 3 of 1949, s. 5. Ascertainment of assessable income. 30 of 1950, Schedule. Allowances. Rates of Salaries and annuities tax., Second Schedule. 30 of 1950, Schedule. 37 of 1950, Schedule. Imposition of corporation profits tax. Imposition of business profits tax. Ascertainment of profits. 3 of 1949, s. 6. Deductions not allowed. [s. 17 cont.] 3 of 1949, s. 7. Basis for computing profits. 30 of 1950, Schedule. 3 of 1949, s. 8. Treatment of losses. [s. 19 cont.] Liability of certain non-resident persons. Profits of certain businesses to be computed on a percentage of the turnover. Assessment of partnerships. 30 of 1950, Schedule. 30 of 1950, Schedule. [s. 22 cont.] Ascertainment of profits of insurance companies. Clubs, trade associations, etc. [s. 24 cont.] Deduction of property tax from profits tax. 3 of 1949, s. 9. Certain dividends excluded form assessment of profits. Deduction of tax from dividends of corporations. 3 of 1949, s. 10. 30 of 1950, Schedule. Imposition of interest tax. 3 of 1949, s. 11. (15 of 1933.) (cap. 73.) ( Cap. 76.) [s. 28 cont.] 30 of 1950, Schedule. Deduction of tax by person paying interest. 10 of 1950, s. 5. 30 of 1950, Schedule. Certificate of deduction, etc. 30 of 1950, Schedule. Set-off and refund of deduction. Recovery of deduction. Recovery of tax by direct assessment. Initial and annual allowances, industrial buildings and structures. 30 of 1950, Schedule. [s. 34 cont.] 30 of 1950, Schedule. Balancing allowances and charges, industrial buildings and structures. 30 of 1950, Schedule. [s. 35 cont.] Definitions for this Part. 3 of 1949, s. 12. Initial an annual allowances, machinery or plant. 30 of 1950, schedule. [s. 37 cont.] Balancing allowances and charges machinery or plant, 30 of 1950, Schedule. 3 of 1949, s. 13. Replacement of machinery or plant. 30 of 1950, Schedule. [s. 39 cont.] Expenditure on machinery or plant. Election to be personally assessed. 3 of 1949, s. 14. Allowances. [s. 42 cont.] 3 of 1949, s. 15. 37 of 1950, Schedule. Rates of charge. Second Schedule. 30 of 1950, Schedule. 37 of 1950, Schedule. Relief in respect of United Kingdom income tax. [s. 44 cont.] Relief in respect of Commonwealth income tax. 30 of 1950, Schedule. 30 of 1950, Schedule. Official secrecy. 30 of 1950, Schedule. Persons assessable on behalf of a non-resident. Profits of shipowners, aircraft owners and chatterers. 3 of 1949, s. 16. 9 of 1950, Schedule. [s. 48 cont.] Double taxation arrangments. 30 of 1950, Schedule. Tax credits. [s. 50 cont.] [s. 50 cont.] Returns and information to be furnished. [s. 51 cont.] Information to be furnished by officials and employers. Who may act for incapacitated or non-resident persons. Liability of executor of deceased taxpayer. Liability of trustees and executors. Precedent partner to act on behalf of partnership. Principal officer to act on behalf of a company or body of persons. Signature and service of notices. 30 of 1950, Schedule. Assessor to make assessments. [s. 59 cont.] Additional assessments. Certain transactions and dispositions to be disregarded. Notice to be issued by assistant commissioner. Validity of assessments, etc. Procedure on appeals to the Commissioner. [s. 64 cont.] 30 of 1950, Schedule. (Cap. 86.) Constitution of the Board of Review. 3 of 1949, s. 17. [s. 65 cont.] Right of appeal to the Board of Review. Commissioner may refer appeals to the Board of Review. Hearing and disposal of appeals to the Board of Review. [s. 68 cont.] (Cap. 8.) Appeals to the Supreme Court. (Cap. 4.) (Cap. 4 rules) (Cap. 2.) Assessments or amended assessments to be final. Provisions regarding payment of tax. 30 of 1950, Schedule. Tax to include fines, etc. Recovery of tax by seizure and sale. [s. 74 cont.] Recovery of tax on certificate to a magistrate. (Cap. 227.) Recovery from debtor of taxpayer. [s. 76 cont.] Recovery of tax from persons leaving the Colony. 30 of 1950, Schedule. Use of more than on means of recovery. Tax paid in excess to be refunded. Penalties of failure to make returns, making incorrect returns, etc. 30 of 1950, Schedule. Breach of secrecy and other matters to be offences. Penal provisions relating to fraud, etc. 30 of 1950, schedule. [s. 82 cont.] Tax payable notwith-standing proceedings. Prosecutions, sanction of Commissioner. Power to make rules. 30 of 1950, Schedule. Board of Inland Revenue to prescribe forms. General power of Governor in Council to exempt. Exemption of Charitable, ecclesiastical and educational bodies 3 of 1949, s. 18. 30 of 1950, Schedule. 30 of 1950, Schedule. 30 of 1950, Schedule. 37 of 1950, Schedule.

20 of 1947. 3 of 1949. 9 of 1950. 10 of 1950. 30 of 1950. 37 of 1950. Short title. Interpretation. (Cap. 20.) 3 of 1949, s. 2. (Cap. 20.) 3 of 1949, s. 2. [s. 2 cont.] (Cap. 117.) 30 of 1950, Schedule. First Schedule. 30 of 1950, Schedule. Board of Inland Revenue. Official secrecy. [s. 4 cont.] 30 of 1950, Schedule. Imposition of property tax. (Cap. 116.) (Cap. 255.) 3 of 1949, s. 3. 3 of 1949, s. 3. (Cap. 116.) By whom payable. 30 of 1950, Schedule. Refund in case of unoccupied property. Imposition of Salaries and Annuities Tax. 30 of 1950, Schedule. 30 of 1950, Schedule. Definition of income from employment. 3 of 1949, s. 4. 9 of 1950, Schedule. 10 of 1950, s. 3. [s. 9 cont.] Aggregation of married persons' incomes. 3 of 1949, s. 5. Ascertainment of assessable income. 30 of 1950, Schedule. Allowances. Rates of Salaries and annuities tax., Second Schedule. 30 of 1950, Schedule. 37 of 1950, Schedule. Imposition of corporation profits tax. Imposition of business profits tax. Ascertainment of profits. 3 of 1949, s. 6. Deductions not allowed. [s. 17 cont.] 3 of 1949, s. 7. Basis for computing profits. 30 of 1950, Schedule. 3 of 1949, s. 8. Treatment of losses. [s. 19 cont.] Liability of certain non-resident persons. Profits of certain businesses to be computed on a percentage of the turnover. Assessment of partnerships. 30 of 1950, Schedule. 30 of 1950, Schedule. [s. 22 cont.] Ascertainment of profits of insurance companies. Clubs, trade associations, etc. [s. 24 cont.] Deduction of property tax from profits tax. 3 of 1949, s. 9. Certain dividends excluded form assessment of profits. Deduction of tax from dividends of corporations. 3 of 1949, s. 10. 30 of 1950, Schedule. Imposition of interest tax. 3 of 1949, s. 11. (15 of 1933.) (cap. 73.) ( Cap. 76.) [s. 28 cont.] 30 of 1950, Schedule. Deduction of tax by person paying interest. 10 of 1950, s. 5. 30 of 1950, Schedule. Certificate of deduction, etc. 30 of 1950, Schedule. Set-off and refund of deduction. Recovery of deduction. Recovery of tax by direct assessment. Initial and annual allowances, industrial buildings and structures. 30 of 1950, Schedule. [s. 34 cont.] 30 of 1950, Schedule. Balancing allowances and charges, industrial buildings and structures. 30 of 1950, Schedule. [s. 35 cont.] Definitions for this Part. 3 of 1949, s. 12. Initial an annual allowances, machinery or plant. 30 of 1950, schedule. [s. 37 cont.] Balancing allowances and charges machinery or plant, 30 of 1950, Schedule. 3 of 1949, s. 13. Replacement of machinery or plant. 30 of 1950, Schedule. [s. 39 cont.] Expenditure on machinery or plant. Election to be personally assessed. 3 of 1949, s. 14. Allowances. [s. 42 cont.] 3 of 1949, s. 15. 37 of 1950, Schedule. Rates of charge. Second Schedule. 30 of 1950, Schedule. 37 of 1950, Schedule. Relief in respect of United Kingdom income tax. [s. 44 cont.] Relief in respect of Commonwealth income tax. 30 of 1950, Schedule. 30 of 1950, Schedule. Official secrecy. 30 of 1950, Schedule. Persons assessable on behalf of a non-resident. Profits of shipowners, aircraft owners and chatterers. 3 of 1949, s. 16. 9 of 1950, Schedule. [s. 48 cont.] Double taxation arrangments. 30 of 1950, Schedule. Tax credits. [s. 50 cont.] [s. 50 cont.] Returns and information to be furnished. [s. 51 cont.] Information to be furnished by officials and employers. Who may act for incapacitated or non-resident persons. Liability of executor of deceased taxpayer. Liability of trustees and executors. Precedent partner to act on behalf of partnership. Principal officer to act on behalf of a company or body of persons. Signature and service of notices. 30 of 1950, Schedule. Assessor to make assessments. [s. 59 cont.] Additional assessments. Certain transactions and dispositions to be disregarded. Notice to be issued by assistant commissioner. Validity of assessments, etc. Procedure on appeals to the Commissioner. [s. 64 cont.] 30 of 1950, Schedule. (Cap. 86.) Constitution of the Board of Review. 3 of 1949, s. 17. [s. 65 cont.] Right of appeal to the Board of Review. Commissioner may refer appeals to the Board of Review. Hearing and disposal of appeals to the Board of Review. [s. 68 cont.] (Cap. 8.) Appeals to the Supreme Court. (Cap. 4.) (Cap. 4 rules) (Cap. 2.) Assessments or amended assessments to be final. Provisions regarding payment of tax. 30 of 1950, Schedule. Tax to include fines, etc. Recovery of tax by seizure and sale. [s. 74 cont.] Recovery of tax on certificate to a magistrate. (Cap. 227.) Recovery from debtor of taxpayer. [s. 76 cont.] Recovery of tax from persons leaving the Colony. 30 of 1950, Schedule. Use of more than on means of recovery. Tax paid in excess to be refunded. Penalties of failure to make returns, making incorrect returns, etc. 30 of 1950, Schedule. Breach of secrecy and other matters to be offences. Penal provisions relating to fraud, etc. 30 of 1950, schedule. [s. 82 cont.] Tax payable notwith-standing proceedings. Prosecutions, sanction of Commissioner. Power to make rules. 30 of 1950, Schedule. Board of Inland Revenue to prescribe forms. General power of Governor in Council to exempt. Exemption of Charitable, ecclesiastical and educational bodies 3 of 1949, s. 18. 30 of 1950, Schedule. 30 of 1950, Schedule. 30 of 1950, Schedule. 37 of 1950, Schedule.

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