10
Liability of certain non- resident persons
Profits of
nesses to be computed un
profits of any other year and provided also that in no case shall such set-off be allowed to an extent which would reduce the tax payable for any year of assessment to less than one-half of the amount which would have been payable had the set-off not been allowed.
(2) Notwithstanding anything in the forgoing sub-section where all the members of a person not being a body corporate have elected to be severally assessed under the provisions of Chapter VII the portions of any loss incurred in the basis period for any year of assessment of any trade, profession or business falling on a member shall first be set off against the other income of that member. If the amount of the loss falling on a member cannot be wholly set-off against his other income for the year of assessment following the year in which it was incurred the amount of the loss not so set-off shall be set-off against what would otherwise have been his chargeable income for the next five years in succession; provided that the amount of such loss allowed to be set-off in computing the chargeable income for any year shall not be set-off in computing the chargeable income of any other year and provided also that in no case shall such set-off be allowed to an extent which would reduce the tax payable for any year of assessment (other than the year of assessment next following that in which the loss was incurred) to less than one half of the amount which would have been payable had the set-off not been allowd.
21. (1) For the purposes of this section-
(a) a person is closely connected with another person where the Commissioner in his discretion considers that such persons are substantially identical or that the ultimate control- ling interest of each is owned or deemed under this section to be owned by the same person or persons;
(b) the controlling interest of a company shall be deemed to be owned by the beneficial owners of its shares, whether held directly or through nominees, and shares in one company held by or on behalf of another company shall be deemed to be held by the shareholders of the last-mentioned company.
(2) Where a non-resident person carries on business with a resident person with whom he is closely connected and the course of such business is so arranged that it produces to the resident person either no profits or less than the ordinary profits which might be expected to arise, the business done by the non-resident person in pursuance of his connexion with the resident person shall be deemed to be carried on in the Colony, and such non-resident person shall be assessable and chargeable with tax in respect of his profits from such business in the name of the resident person as if the resident person were his agent, and all the provisions of this Ordinance shall apply accordingly.
22. Where the Commissioner in his discretion considers certain busi that the true amount of the profits of a non-resident person in respect of a trade, profession or business carried on in the percentage Colony cannot be readily ascertained, such profits may be computed on a fair percentage of the turnover of that trade or business in the Colony:
of the
turnover
Provided that the amount of such percentage shall be subject to appeal in accordance with the provisions of Chapter
XI.
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