74
CAP. 112]
Inland Revenue
[1989 Ed.
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: (Amended 35 of 1965 s. 13; 7 of 1986 s. 12)
Provided that where the profits of any person have been assessed for any year of assessment in accordance with this subsection, such person shall, notwithstanding the provisions of section 70, be entitled to claim at any time within 2 years of the end of such year of assessment that his assessable profits for that year be recomputed on the basis provided by subsection (1) of this section.
(3) Where the Commissioner is satisfied that the call of a ship owned or chartered by a person to whom the provisions of this section apply is casual and that further calls at Hong Kong by that ship or others in the same ownership are improbable, he may in his discretion direct that such person shall not be deemed to be carrying on business in Hong Kong by reason of such casual call. (Amended 7 of 1986 s. 12)
(4) The master of any ship owned by a person to whom the provisions of this section apply shall, though not to the exclusion of any other agent, be deemed to be the agent of such person.
(5) In this section-
"business as an owner of ships" does not include dealing in ships or agency business in connection with shipping; (Added 2 of 1971 s. 16)
"charter hire" means sums receivable by a ship-owner under a charter party which is either a bare boat, voyage or time charter and under which there is a demise of the ship; (Amended 2 of 1971 s. 16)
"owner" includes a charterer;
"permanent establishment" means a branch, management or other place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of his principal;
"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. 24)
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