1989 Ed.]
Inland Revenue
[CAP. 112
71
Provided that any such premiums returned to the insured and any corresponding premiums paid on reinsurance shall be deducted from the premiums so receivable. (Amended 7 of 1986 s. 12)
(Replaced 36 of 1955 s. 32)
23A. Ascertainment of assessable profits of
insurance corporations other than
life insurance corporations
(1) The assessable profits of a corporation, whether mutual or proprietary, from the business of insurance other than life insurance, shall be ascertained by taking the gross premiums from such insurance business in Hong Kong less any such premiums returned to the insured and any premiums paid on corresponding reinsurance and adding thereto any interest or other income arising in or derived from Hong Kong and the amount of any balancing charge directed to be made under Part VI, and deducting therefrom a reserve for unexpired risks at the percentage adopted by that corporation in relation to its operations as a whole for such risks at the end of the period for which such profits are ascertained, and adding thereto a reserve similarly calculated for unexpired risks outstanding at the commencement of such period, and from the amount so arrived at deducting the actual losses less the amount recoverable in respect thereof under reinsurance, the agency expenses in Hong Kong and the allowances provided under Part VI to the extent to which the relevant assets are used in the production of such profits, and a fair proportion of the expenses of the head office of the corporation: (Amended 49 of 1956 s. 20; 7 of 1975 s. 22)
Provided that where the Commissioner is satisfied that, by reason of the limited extent of such business transacted in Hong Kong by a non-resident insurance corporation it would be unreasonable to require such corporation to furnish the particulars necessary for the application of this section, he may permit the assessable profits of the corporation to be ascertained by reference to the proportion of the total profits and income of the corporation corresponding to the proportion which its premiums from insurance business in Hong Kong bear to its total premiums or on any other basis which appears to him to be equitable.
(2) For the purposes of this section "premiums from insurance business in Hong Kong" shall include-
(a) all premiums in respect of contracts of insurance other than life
insurance made in Hong Kong; and
(b) all premiums on contracts of insurance other than life insurance the proposals for which were made to the corporation in Hong Kong. (Amended 49 of 1956 s. 20)
(Added 36 of 1955 s. 33. Amended 7 of 1986 s. 12)