68
CAP. 112]
Inland Revenue
[1989 Ed.
(b) should the corporation so elect, be that part of the adjusted surplus ascertained in accordance with the provisions of subsections (2) to (7) deemed to arise in the basis period for that year less any dividend received which is required to be excluded by virtue of section 26(a): (Amended 49 of 1956 s. 19)
Provided that-
(i) any such election once made shall be irrevocable and in addition shall be deemed to apply to all future years of assessment; and (Added 49 of 1956 s. 19)
(ii) until such part of the adjusted surplus is ascertained, the assessable profits shall be calculated provisionally in accordance with paragraph (a) of this subsection, and tax charged and collected as if no such election had been made. (Amended 49 of 1956 s. 19)
(2) A corporation which elects to be assessed in the manner provided in subsection (1)(b) shall submit to the Commissioner a certified true copy of the latest abstract of the report of the actuary submitted to the Insurance Authority under section 18 of the Insurance Companies Ordinance (Cap.41) or, in the case of a corporation to which section 52(3) of that Ordinance applies, a copy of the latest such abstract submitted under that section. (Replaced 11 of 1985 s. 2)
(3) Any election under subsection (1)(b) shall be effective only if the actuarial report is submitted not later than 2 years after the end of the period in respect of which it is made. Where an effective election has been made it shall be lawful to give effect to such election notwithstanding the provisions of section 70. (Amended 49 of 1956 s. 19)
(4) (a) The surplus shall be the amount by which the life insurance fund exceeds the estimated liability of the corporation on the life insurance fund at the end of the period in respect of which any actuarial report is made.
(b) The adjusted surplus shall be ascertained by adding to the surplus-
(i) any deficit in respect of a period prior to the period in respect of which the relevant actuarial report is made where such deficit is included in such report;
(ii) any outgoing or expense charged against the life insurance fund in the relevant actuarial report which is not such that it would be allowed as a deduction in ascertaining assessable profits under the provisions of section 16;
(iii) any expense disbursement or loss charged against the life insurance fund in the relevant actuarial report which is such that it would not be allowed as a deduction in ascertaining assessable profits by reason of the provisions of section 17;