Ascertain- ment of profits of
wompanies.
12
place, or where the change took place during the year ending 31st March, 1947, within two years after the change took place, the Assessor shall compute the profits for any year of ussessment as if the trade, profession or business harl been discontinued at the date of the change and a new trade, profession 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) notwithstanding a change in the partnership shall be recover- able if necessary from any person who quitted the partnership at the clunge or from the estate of any such person deceased.
(0) 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) The profits of a company, whether mutual or proprietary, from the business of life insurance shall be the investment income of the Life Insurance Fund less the management expenses (including commission) attributable to that business :
Provided that where such a company transacts life insurance business both in the Colony, whether directly or through an agent, and elsewhere, the profits from busincas 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 the company, 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 profits of a company, whether mutual or proprietary, 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 premiums returned to the insured and premiums paid on re-insurance) and deducting therefrom a reserve for unexpired risks at the percentage adopted by the company in relation to its operations 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, die account being taken in each case by set-off against such expenses of any income or profits other than premiums.
(3) Where the Commissioner is satisfed that by reason of the limited extent of the business transacted in the Colony by a non-resident insurance company it would be unreasonable 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
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the profits of the company to be ascertained by reference to the proportion of the total profits and income of the com- pany corresponding to the proportion which its premiums froin insurance business in the Colony bear to its total premiums, or on any other basis which appears to him to be equitable.
(4) For the purposes of this section "investment income of the Life Insurance Fund'' means, in the case of a company 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.
25. (1) Where a body of persons, whether corporate or unincorporate, carries on a club or similar institution and reccives from its members not less than half of its gross receipts on revenue account (including entrance fees and 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 hoth 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 carpornte 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 deductions for the purposes of section 17, 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 business, and the body of persons aball be chargeable in respect of the profits therefrom.
(3) In this section. "members'', în 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 affairs.
26. There shall be deducted from any profits tax payable onder this Chapter in respect of any trade, profession or business any Property Tax payable under Chapter II of this Ordinance, in respect of any land and/or buildings, by such trade, profession or business,
27. For the purposes of assessment the dividenda of a corporation, which is subject to tax under this Chapter, shall not be included in the profits of any other person for the purposes of taxation under this Chapter,
Clubs, trade
*ke,
citious,
Deduction of Property Tax from Protu Tax
Certain dividends
excluded frost ment of profits,
ages-
tax from dividenda of corporations.
28. (1) Every corporation which is registered in the Dedaction of Colony shall be entitled to deduct from the amount of any dividend paid to any shareholder tax at the rate paid or payable by the corporation (as reduced by any relief granted under sections 45 and 46) on the income out of which such dividend is paid, provided that where tax is not paid or pay- able by the corporation on the whole income out of which the dividend is paid the deduction shall be restricted to that portion of the dividend which is paid out of income on which
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