1981 Ed.]
Pearl Culture (Control) Regulations
[CAP. 307
A 3
7. (1) The net profit referred to in regulation 6 shall be ascertained in accordance with Part IV of the Inland Revenue Ordinance:
Provided that-
(a) in making the deduction set forth in section 16 of the said Ordinance due regard shall be had to the current level of prices and costs, so that any such deduction shall be limited to a sum which in the opinion of the Financial Secretary is reasonable, and so that allowance of any sum by way of depreciation of a capital asset shall be limited to an amount which represents the allowance approved under Part VI of the said Ordinance on what in the opinion of the Financial Secretary is a reasonable price for such asset;
(b) in ascertaining the net profit as aforesaid, no deduction shall be made in respect of any sum which may be payable as royalty by the licensee to the Government;
(c) for the purpose of ascertaining the net profit as aforesaid, all sales of pearl oysters and pearls shall be deemed to have taken place in the Colony.
(2) The Financial Secretary and any person authorized by him in writing shall for the purpose of ascertaining the net profit be an authorized representative of the licensee for the purposes of section 4 of the Inland Revenue Ordinance to the intent that the Commissioner of Inland Revenue and any assessor or person appointed to carry out duties under the said Ordinance shall, on demand by the Financial Secretary, disclose all such matters relating to the affairs of the licensee as the Financial Secretary or such authorized person may require, and such disclosure shall not be a breach of the duties imposed by the said section upon the person making it.
(3) In the event of the licensee failing to agree with the ascertainment of net profit made by the Financial Secretary, an appeal, by way of petition, shall lie to the Governor in Council whose decision shall be final.
8. (1) It shall be lawful for the Financial Secretary for the purpose of ascertaining the net profit of the licensee during any period in respect of which royalty is payable under the provisions of regulation 6 or of ascertaining whether any deduction which the licensee has made or may be seeking to make from profits is reasonable, by writing under his hand to call upon the licensee and any person (other than a bank) who has entered into any agreement with the licensee to produce to such person and at such time and place as may by any general or particular description be specified in such writing such books and statements of account (including bank statements) as he may by such writing require.
(2) The licensee or any person aggrieved by any exercise of the discretion conferred upon the Financial Secretary may appeal, by way of petition, to the Governor in Council whose decision shall be final.
[Subsidiary]
Ascertainment of net profit.
(Cap. 112)
Power of the Financial Secretary to call upon the licensee and certain persons dealing with the licensee to produce books and statements of account.