1941-HKRS28-8-2_Part01 — Page 26

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(2) The precedent partner shall make and deliver a statement of the profits or losses of such trade, profession or business, on behalf of the partnership, ascertained in accord- ance with the provisions of this Chapter relating to the ascertainment of profits.

Where no active partner is resident in the Colony the return shall be furnished by the manager or agent of the partnership in the Colony.

(3) If after the 31st day of March, 1940, a change occurs in a partnership of persons carrying on any trade, profession or business, by reason of retirement or death, or the dissolution of the partnership as to one or more of the partners, or the admission of a new partner, in such circum- arances that one or more of the persons who until that time were engaged in the trade, profession or business continue to be engaged therein, or a person who until that time was engaged in any trade, profession or business on his own account continues to be engaged in it, but as a partner in a partnerslip, the tax payable by the person or persons who carry on the trade, profession or business after that time shall, notwithstanding the change be computed according to the profits or gains of the trade, profession or business in accordance with section 20 as if no such change had occurred: Provided that on application made in writing by all the persons engaged in the trade, profession or business both immediately before and immediately after the change, and signed by all of them or, in the case of a deceased person, by his legal representative, and received by the Examiner within twelve months after the change took place, the Examiner may compute the profits for any year of assess- ment as if the trade, profession or business had been dis- continued at the date of the change and a new trade, pro- fession or business had been then set up and commenced.

(4) Tax upon the partnership shall be recoverable by all means provided in this Ordinance out of the assets of the partnership, or from any partner, or from the Manager or Agent of the partnership in the Colony, and in the case of an assessment made in accordance with sub-section (3) not- withstanding a change in the partnership shall be recoverable if necessary from any person who quitted the partnership at the change or from the estate of any such person deceased.

(3) Tax may be assessed on the profits of a partnership notwithstanding the cessation or dissolution of such partner- ship and shall be recoverable from the former partners and from the assets of the partnership at the time of its cessation.

24.-(1) A non-resident person shall be assessable either directly or in the name of his agent in respect of all non-resident his profits arising in or derived from the Colony of any trade, profession or business carried on in the Colony whether such agent has the receipt of the profits or not, and the tax so assessed whether directly or in the name of the agent shall be recoverable by all means provided in this Ordinance out of the assets of the non-resident person or from the agent Where there are more agents than one they may be assessed jointly or severally in respect of the profits of the non- resident person and shall be jointly and severally liable for tax thereon.

(2) Every person chargeable with tax as agent, or from whom tax is recoverable in respect of the profits of another

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person, may retain out of any assets coming into his possession or control on behalf of such other person or in his capacity as agent so much thereof as shall be sufficient to produce the amount of such tax, and he shall be and is bereby indemnified against any person whomsoever in respect of his retention of such assets.

(3) Where a person chargeable with tax or from whom tax is recoverable in respect of the profits of another person has paid such tax, and no assets of such other person come into his possession or control out of which he could retain the tax so paid, such tax shall be a debt due to him from such other person.

25.-(1) The profits of a company, whether mutual or Ascertain proprietary, from the business of life insurance shall be the ment of

profits of investment income of the Life Insurance Fund less the insounc management expenses (including commission) attributable to Campramiņu, that business;

Provided that where such a company transacts life insur- ance business both in the Colony, whether directly or through an agent, and elsewhere, the profits from business in the Colony shall be deemed to be the same proportion of the total investment income of the Life Insurance Fund of the company as the premiums from life insurance business in the Colony bear to the total life insurance premiums received by it, subject to a deduction of agency expenses in the Colony (including commission) and a fair proportion of the expenses of the head office of the company, due account being taken in each case by set-off against such expenses of any income or profits other than life insurance premium or investment income.

(2) The profils of a company, whether mutual or pro- prietary, from the business of insurance (other than life insurance) shall be ascertained by taking the gross premiums from insurance business in the Colony (less any premiuma returned to the insured and premiums paid on re-insurance) and deducting therefrom a reserve for unexpired rinks at the percentage adopted by the company in relation to its opera- tions as a whole for such risks at the end of the period of which the profits are being ascertained, and adding thereto a reserve similarly calculated for unexpired risks outstanding at the commencement of such period, and from the net amount so arrived at deducting the actual losses (less the amount recovered in respect thereof under re-insurance), the agency expenses in the Colony, and a fair proportion of the expenses of the head office of the company, due account being taken in each case by set-off against such expenses of any income or profits other then premiums.

(3) Where the Commissioner is satisfied that by reason

of the limited extent of the business transacted in the Colony by a non-resident insurance company it would be unreason- able to require the company to furnish the particulars necessary for the application of sub-sections (1) and (2), he may, notwithstanding the provisions of those sub-sections, permit the profits of the company to be ascertained by reference to the proportion of the total profits and income of the company corresponding to the proportion which its premiums from insurance business in the Colony bear to its total premiums, or on any other basis which appears to him to be equitable.