Aucertain- mment di profits of
ARON, ANA
14
J
(4) For the purposes of this acction investment income of the Life Insurance Fund means, in the case of a com- pany whose sole business is life insurance, the whole of its income from investments, and, in the case of any other company, such part of its income from investments as appears fairly attributable to its life insurance business.
26.--(1) Where a person carries on a business of shipowner or aircraft owner or charterer and any ship or shipowars, aircraft owned or chartered by such person calls at a port airdraft in the Colony the full amount of the profits arising from the carriage of passengers, mails, livestock and goods shipped in the Colony shall be deemed to arise in the Colony: Provided that this section shall not apply to goods which are brought to the Colony solely for transhipment.
charterers.
Ascertain
ment of incams of clubs, trade
associations,
eko.
(2) The following provisions shall apply to the deter- mination of such profits :-
(a) the profits arising in Hong Kong from shipping or air transport, business for any accounting period shall be the sum bearing the same ratio to the suma receivable in respect of carriage of passengers, nails, livestock and goods shipped in the Colony as the total profits for the said period shown by that person's accounts bear to the total sums receivable by him in respect of the carriage of passengers, mails, livestock and goods: Provided that where the said total profits bave been computed on a basis which differs materially from that prescribed in this Chapter for the ascertainment of profits, The ratio of profits shall be adjusted so as to correspond as nearly as may be to the ratio which would have been arrived t if the profits had been computed in accordance with the provisions of this Chapter relating to the ascertainment of profits:
(b) where the provisions of paragraph 2 (a) of this section cannot for any reason be satisfactorily applied, the profits arising in the Colony may be computed on a fair percentage of the full sum receivable on account of the carriage of passengers, mails, livestock and goods shipped in the Colony: Provided that where any person has been assessed for any year of assessment by reference to such percentage, he shall be entitled to claim at any time within one year of the end of such year of assessment that his liability to tax for that year be recomputed on the basis provided by paragraph 2 (a) of this section;
(d) where the Commissioner decides that the call of a ship or aircraft belonging to a particular shipowner or charterer at a port of the Colony is casual and that further calls by that ship or aircraft or others in the same ownership are improbable, he may in his discretion exempt the profits of such ship or aircraft from the provisions of this section, and thereupon such profits shall be treated as they do not arise in the Colony, and not liable to taxation
(3) The master of any ship or aircraft owned OF chartered by a person whose profits are calculated under the provisions of this section shall (though not to the exclusion of any other agent) be deemed the agent of auch person for all the purposes of the Ordinance.
27.-(1) Where a body of persons, whether corporate or unincorporate, carries on a club or similar institution and receives from its members not less than half of its gross receipts on revenue account (including entrance fees and
15
subscriptions), it shall not be deemed to carry on a business; but where less than half of its gross receipts are received from members, the whole of the income from transactions both with members and others (including entrance fees and subscriptions) shall be deemed to be receipts from a business, and the body of persons shall be chargeable in respect of the profits therefrom.
(2) Where a body of persons, whether corporate or unincorporate, carries on a trade association in such circum- stances that more than half its receipts by way of entrance fees and subscriptions are from persons who claim or would be entitled to claim that such sums were allowable deduc- tions for the purposes of section 18, such body of persons shall be deemed to carry on a business, and the whole of its income from transactions both with members and others (including entrance fees and subscriptions) shall be deemed to be receipts from a business, and the body of persona shall be chargeable in respect of the profits therefrom.
(8) In this section, members", in relation to a body of persons, means those persons who are entitled to vote at a general meeting of the body at which effective control is exercised over its' affaira,
of Property
28. There shall be deducted from any profits tax payable Deduction under this Chapter in respect of any trade, profession or Tas from business any property tax payable under Chapter II of this audis Tax Ordinance, in respect of any land and/or buildings, by such trade, profession or business.
divldoods
29-(1) For the purposes of assessment the dividende Certain of a corporation, which is subject to tax under this Chapter, excluded shall not be included in the profits of any other person for from the purposes of taxation under this Ordinance.
(3) For the purposes of assessment no part of the profit
or loss of a trade, profession or busineas, which is subject to tax under this Chapter, shall be included in the profits of any other trade, profession or business for the purposes of taxation under this Ordinance.
CHAPTER V.
INTEREST TAX.
AKSASENTAZI and profits.
of Interest
30. Interest Tax shall be charged at the rate of fourteen Imposition per cent. on the full amount of any sum falling due after Tax. the thirty-first day of March, 1941, being interest arising in or accruing in the Colony on any debenture, mortgage, "bill of sale, loan, deposit or advance, and
(a) paid or payable under any mortgage, debenture or bill of sale registered with any public authority or public officer;
(b) paid or payable by any person carrying on trade, profession or business in the Colony and allowable as a deduction in ascertaining the profits of such trade, profes- sion or business in accordance with section 15: