Repeal and replace- ment of
cection 23.
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(e) by the deletion from subsection (4) of all the words following the word "partner" and the substitution there- for of a full stop.
32. Section 23 of the principal Ordinance is repeated and replaced by the following section-
"Ascertain- 23. (1) The assessable profits for any year of
ment of 18ssanble
profits of
life insurance companies.
(Cap. 36).
assessment of a corporation, whether mutual or pro- prietary, from the business of life insurance, shall→→ (a) be deemed to be five per centum of the premiums from life insurance business in the Colony of the corporation during the basis period for that year; or
(b) should the corporation so elect, be that part of the adjusted surplus ascertained in accord- ance with the provisions of subsections (3) and (4), which is deemed under subsection (7) to arise in the basis period:
Provided that, until such part of the adjusted surplus is ascertained, the assessable profits shall be calculated provisionally in accordance with paragraph (a) of this sub- section, and tax charged and collected as if no such election had been made.
(2) A corporation which elects to be assessed in the manner provided in paragraph (b) of subsection (1) shall-
(a) if subject to the requirements of section 12 of the Life Insurance Companies Ordinance. submit to the Commissioner a certified true copy of the abstract of the report of the actuary (hereinafter referred to in this section as "an actuarial report") caused to be made in compliance with the said section of the said Ordinance;
(b) if exempt from the requirements of section 12 of the Life Insurance Companies Ordinance submit to the Commissioner certified true copies of every account, balance sheet, abstract
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statement or other document (hereinafter re- ferred to in this section as "an actuarial report") required by the Assurance Com- panies Acts, 1909 and 1946, to be deposited with the Board of Trade,
(3) Any election under paragraph (b) of subsec- tion (1) shall be effective only if the actuarial report is submitted not later than two years after the end of the period in respect of which it is made.
(4) (a) The surplus shall be the amount by which the life insurance fund exceeds the estimated liability of the corporation on the life insurance fund at the end of the period in respect of which any actuarial report is made.
(b) The adjusted surplus shall be ascertained by
adding to the surplus-
(i) any deficit in respect of a period prior to the period in respect of which the relevant actuarial report is made where such deficit is included in such report;
(i) any outgoing or expense charged against the life insurance fund in the role- vant actuarial report which is not such that it would be allowed as a deduction in ascer- taining assessable profits under the provisions of section 16;
(ii) any expense disbursement or loss charged against the life insurance fund in the relevant actuarial report which is such that it would not be allowed as a deduction in ascertaining assessable profits by reason of the provisions of section 17;
(iv) any incomte or profits of the corporation arising in the period in respect of which the relevant actuarial report is made, not being profits from the business of insurance other dan life insurance, and not credited to the life insurance fund in such report;