CAP. 112]
[r. 5 cont.]
(Cap. 112.)
Apportionment of annuity.
Inland Revenue.
arising in or derived from the Colony and shall be taxed accordingly;
(c) for the purposes of determining a person's total profits, similar adjustments for tax purposes will be made in his accounts as would have been necessary had the whole of those profits been liable to tax under the Ordinance;
(d) where the Assessor is of the opinion that it would be impracticable or inequitable to adopt the provisions of sub-paragraphs (b) and (c) of this paragraph he may compute the amount of the profits arising in or derived from the Colony on a fair percentage of the person's turnover in the Colony:
Provided that the decision of an Assessor under this rule shall be subject to appeal in accordance with the provisions of Part XI of the Ordinance.
Method of apportioning an annuity between capital and income.
6. (1) For the purpose of assessment to Salaries and Annuities Tax under Part III of the Ordinance, an annuity G.N.A. 18/48. payable in respect of valuable consideration given shall first be apportioned as between capital and income in accordance with the provisions of this rule. The capital portion shall be ascertained by dividing the consideration (i.e., premiums paid, or the total of such premiums if more than one, or other valuable consideration given) by the figures ascertained from the Table set out in paragraph (2) hereof by reference to the age of the annuitant at the date of his or her last birthday prior to the first payment of the annuity. The excess of the annual annuity over the capital portion thus computed shall be deemed to be income and liable to Salaries and Annuities Tax. This apportionment between capital and income shall be constant each year until such time as the accumulated total of the capital portions shall equal the total consideration. Thereafter, the whole of the annual amount of the annuity shall be regarded as income for the purpose of Salaries and Annuities Tax: Provided that no apportionment to capital shall be made in respect of any consideration given by a person other than the annuitant, or his or her spouse, and provided further that any premium
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