1989 Ed.]
Inland Revenue
[CAP. 112
73
“ship” includes aircraft;
"total profits" for any period means the world profits of a person from his business as an owner of ships as shown by his accounts for such period:
Provided that where the said total profits have been computed on a basis which differs materially from that prescribed in this Part for the ascertainment of assessable profits in respect of which a person is chargeable to tax, such profits shall be adjusted so as to correspond as nearly as may be to the sum which would have been arrived at had they been computed in accordance with the provisions of this Part relating to the ascertainment of assessable profits in respect of which a person is chargeable to tax. (Replaced 7 of 1975 s. 23)
(3) For the purposes of this section, a sum receivable by a ship-owner under a charter party other than a bare boat, voyage or time charter under which there is a demise of the ship, shall be taken to be receivable from the carriage of passengers, mails, livestock and goods or in respect of towage. (Added 2 of 1971 s. 15)
(Added 49 of 1956 s. 21)
23C. Ascertainment of the assessable profits
of a non-resident ship-owner
(1) Where a person to whom the provisions of section 23B do not apply carries on a business as an owner of ships and any ship owned or chartered by him calls at Hong Kong, such person shall be deemed to be carrying on that business in Hong Kong, and the assessable profits from such business for any year of assessment shall be the sum bearing the same ratio to the aggregate of the sums receivable during the basis period for such year of assessment by such person in respect of the carriage of passengers, mails, livestock and goods shipped in Hong Kong, in respect of outward towage undertaken from Hong Kong and in respect of charter hire attributable to a permanent establishment maintained by such person in Hong Kong as his total profits for the basis period bear to the aggregate of the total sums receivable by him during that period in respect of the carriage of passengers, mails, livestock and goods, in respect of towage and in respect of charter hire: (Amended 35 of 1965 s. 13)
Provided that in calculating the sums receivable in respect of the carriage of passengers, mails, livestock and goods shipped in Hong Kong, nothing shall be included in respect of the shipment of goods brought to Hong Kong solely for transhipment unless the outward freight is payable in Hong Kong. (Amended 7 of 1986 s. 12)
(2) Where in the opinion of the assessor the provisions in subsection (1) for computing assessable profits cannot for any reason be satisfactorily applied in the case of any particular person, the assessable profits of such person for any year of assessment may be computed on a fair percentage of the aggregate