INLAND REVENUE ORDINANCE. (Chapter 112).
INLAND REVENUE (AMENDMENT) RULES 1971.
In exercise of the powers conferred by section 85 of the Inland Revenue Ordinance, We, the Board of Inland Revenue, hereby make the following rules—
1. These rules may be cited as the Joland Revenue (Amend- ment) Rules 1971.
1. The heading to rule 6 of the principal rules is amended by deleting "income" and substituting the following-
"interest".
3. Rule 6 of the principal rules is revoked and replaced by the following rule-
"Apportion. ment of annvity,
6. (1) For the purposes of an assessment to interest tax under Part V of the Ordinance. an annuity payable in respect of valuable consideration given shall first be apportioned as between capital and interest in accordance with this rule; and the proportion which the capital element in any annuity payment bears to the total amount of that payment shall be constant for all payments on account of the annuity,
(2) In the case of an anauity where neither the term of the annuity nor the amount of any annuity payment depends on any contingency other than the duration of a human life or lives, the capital element shall be the same proportion of the annuity as the proportion which the total amount or value of the consideration bears to the actuarial value of the annuity payments as determined in accordance with paragraph (3); and the amount of the excess of the annuity over the capital element so determined shall be deemed to be interest chargeable to interest tax.
(3) The actuarial value of the annuity payments shall
(a)
be their value as at the date when the first of such payments begins to accrue; and
(8) be determined in accordance with the select tables in the volume of tables published in
Citation
Amendment of heading to rule 6
(Cap. 111. mba- Jem.)
Revocation and replacement of rule 6,