1989 Ed.]
Inland Revenue
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(5) The amendments to this section effected by the Inland Revenue (Amendment) (No. 2) Ordinance 1986 (19 of 1986) shall apply to sums received or accrued by way of interest, gains or profits on or after 1 April 1986, and the provisions of this section in force immediately prior to the coming into force of that Ordinance shall continue to apply to such sums received or accrued prior to 1 April 1986 as if such amendments had not been enacted. (Added 19 of 1986 s. 2)
(Replaced 2 of 1971 s. 9. Amended 7 of 1986 s. 12)
15A. Transfer of right to receive income
(1) Subject to subsection (3) where
(a) a right to receive income from property is transferred by a person
to another person; and
(b) consideration has been received or is receivable in respect of the transfer,
the amount of the consideration shall, notwithstanding the exclusion relating to the sale of capital assets contained in section 14, be treated as a trading receipt arising in or derived from Hong Kong by the transferor from a trade, profession or business carried on in Hong Kong.
(2) The reference in subsection (1) to the amount of consideration shall, in the case where consideration is paid or given otherwise than in cash, be construed as a reference to the money value of the consideration.
(3) Subsection (1) shall not apply in relation to a transfer of a right to receive income from property where the right arose from the ownership by the transferor of a legal or equitable estate or interest in the property and, before or at the time of that transfer, the transferor also transferred that estate or interest to the transferee.
(4) In this section-
"income" means any profits, rent, interest or royalty chargeable to tax under
Part IV;
"property" means any property whatsoever;
"right to receive income from property" means a right to have income that will or may be derived from property paid to, or applied or accumulated for the benefit of, the person owning the right.
(5) This section shall apply to any agreement made for the transfer of a right to receive income from property within the meaning of subsection (4) entered into or effected after 25 February 1987 other than an agreement made in pursuance of a legally enforceable obligation incurred on or before that date.
(Added 28 of 1987 s. 4)
15B. (Repealed 71 of 1983 s. 13)
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