1986 Ed.]
Inland Revenue Rules
[CAP. 112
(d) where the Assessor is of the opinion that it would be impracticable or inequitable to adopt the provisions of sub-paragraphs (b) and (c) of this paragraph he may compute the amount of the profits arising in or derived from Hong Kong on a fair percentage of the turnover of the person in Hong Kong:
Provided that the decision of an Assessor under this rule shall be subject to objection and appeal in accordance with the provisions of Part XI of the Ordinance.
A 7
[Subsidiary]
L.N. 101/65.
Method of apportioning an annuity between capital and interest
6. (1) For the purposes of an assessment to interest tax under Part V of the Ordinance, an annuity payable in respect of valuable consideration given shall first be apportioned as between capital and interest in accordance with this rule; and the proportion which the capital element in any annuity payment bears to the total amount of that payment shall be constant for all payments on account of the annuity.
(2) In the case of an annuity where neither the term of the annuity nor the amount of any annuity payment depends on any contingency other than the duration of a human life or lives, the capital element shall be the same proportion of the annuity as the proportion which the total amount or value of the consideration bears to the actuarial value of the annuity payments as determined in accordance with paragraph (3); and the amount of the excess of the annuity over the capital element so determined shall be deemed to be interest chargeable to interest tax.
(3) The actuarial value of the annuity payments shall-
(a) be their value as at the date when the first of such payments begins to accrue; and
(b) be determined in accordance with the select tables in the volume of tables published in 1953 at the University Press, Cambridge, for the Institute of Actuaries and the Faculty of Actuaries entitled The a(55) Tables for Annuitants in the United Kingdom,
without discounting any payment for the time to elapse between the date when the first payment begins to accrue and the date on which payment is made.
(4) In the case of an annuity payable for a term of years certain the capital element shall be obtained by dividing the total amount or value of the consideration for the annuity by the number of years in the term; and the excess of the annuity over the amount so obtained shall be deemed to be interest chargeable to interest tax.
723-9898.23
L.N. 120/71.
Apportionment of annuity. L.N. 140/71.