Repeal and replace. ment of section 7.
3.
(3) The management and the administrative stuff, or an effective majority thereof to the satisfac- tion of the Governor in Council, shall also be British, subjects."
Section 7 of the principal Ordinance is repealed and replaced by the following sections-
"Royalty.
7. (1) As from the 1st day of January, 1955. the company shall pay to the Government a royalty of twenty-five per cent of the pet profit of the company for each year.
(2) The net profit as aforesaid shall be ascertained (Cap. 112). in accordance with Part IV of the Inland Revenue:
Ordinance :
Provided that in making the deductions 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 fimiled 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 thei opinion of the Financial Secretary is a reasonable price for such asset :
Provided further that 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 company to the Government.
(3) The Financial Secretary and any person authorized by him in writing shall for the purpose of ascertaining the net profit be an authorized represent- ative of the company 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 company as the Financial Secretary or
Power of the Finan cial Secre-
tary to call upon the
company and
certain
persona
dealing
such authorized person may require, and such dis- closure shall not be deemed to be a breach of the duties imposed upon the person making it by the said section.
(4) In the event of the company failing to agree with the assessment 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.
(3) As from the 1st day of May, 1955, the company shall make monthly payments on account of the royalty accruing during each current accounting year of the company and the amount of each such payment shall be a sum equal to one twelfth of twenty-live per cent of the estimated net profit for the current year or such sum as the Financial Secretary may determine, As soon as the net profit for the current year has been ascertained a final adjustment shall be made and the Government shall refund any sum paid on account in excess of the royalty due for that year or if the amounts paid on account by the company are less than the royalty due, the company shall pay the Government the balance thereof.
TA. (1) It shall be lawful for the Financial Secretary for the purpose of ascertaining the net profit of the company during any period in respect of which royalty is payable under the provisions of section 7 or of ascertaining whether any deduction which the company has made or may be seeking to make from profits is reasonable, by writing under his hand to call upon the company and any person (other to produce than a bank) who has entered into any agreement with the company or to whom it has made any payment 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.
with the company
books and statements
of account,