CAP. 112]
Inland Revenue
[1989 Ed.
Tenant (Consolidation) Ordinance (Cap. 7) if (Amended 39 of 1979 s. 26; 76 of 1981 s. 60)
(a) the tenant undertook to pay all usual tenant's rates and taxes;
and
(b) the landlord undertook to pay the Crown rent, the costs of repairs and insurance and any other expenses necessary to maintain the property in a state to command that rent.
(2) In any other case, the assessable value of land or buildings or land and buildings shall be an amount equal to the rent at which on the first day of any year of assessment such property might reasonably be expected to let from year to year if
(a) the tenant undertook to pay all usual tenant's rates and taxes;
and
(b) the landlord undertook to pay the Crown rent, the costs of repairs and insurance and any other expenses necessary to maintain the property in a state to command that rent:
Provided that--
(i) in respect of any property which became chargeable to property tax on a date after the first day of the year of assessment for which an assessable value falls to be ascertained, the assessable value of such property shall be ascertained by reference to that date;
(ii) where in relation to any year of assessment a fresh assessable value of any property has not been ascertained, the assessable value of the property for that year shall be deemed to be the same as that last ascertained in respect of such property.
(3) For the purpose of ascertaining the assessable value of land or buildings or land and buildings under this section-
(a) subject to paragraph (b), all machinery (including lifts) used as adjuncts to the property shall be regarded as part of the property, but the reasonable expenses incurred in working such machinery shall be allowed for in arriving at the assessable value of the property;
(b) no account shall be taken of the value of any machinery in or on the property for the purpose of manufacturing operations or trade processes.
(3A) Subject to subsection (3B), where any land or buildings or land and buildings are wholly let on the first day of any year of assessment and the Commissioner is satisfied that the assessable value of the land or buildings or land and buildings as ascertained in accordance with this section exceeds the annual rent in respect of the land or buildings or land and buildings, the assessable value for that year of assessment shall, if paragraphs (a) and (b) of subsection (1A) or (2) apply, be reduced to the annual rent. (Added 5 of 1982 s. 3)