Imposition
of Interest Tax.
Daduction of tax brg
person pay ing interest.
Certificate of deduction, atc., by poreon pay
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lax is paid or payable by the corporation.
(2) Every such corporation shall upon payment of a dividend, whether tax is deducted therefrom or not, furnish cach shareholder with a certificate setting forth the amount of the dividend paid to that shareholder and the amount of tax which the corporation has deducted or is entitled to deduct in respect of that dividend.
Provided that this section shall not apply to any divi- dend declared in respect of any period ending prior to the first day of April, 1947.
CHAPTER V.
Interest Tax.
29. Interest Tax shall be charged at the standard rate on the full amount of any sum accruing after the thirty-first day of March, 1947, being interest arising in or accruing in the Colony on any debenture, mortgage, bill of sale, loan, deposit or advance, and
(a) paid or payable under any mortgage, debenture or bill of sale registered with any public authority or public officer; or
(b) paid or payable by any person carrying on trade, profession or business in the Colony and allowable as a deduction in ascertaining the profits of such trade, profession or business in accordance with section 17:
Provided that there shall be exempt from Interest Tax (a) any interest paid or payable by or to a banker approved by the Commissioner;
(b) any interest paid or payable to a Corporation carrying on trade or business in the Colony.
30. Where any person in the Colony pays or credits to any other person any sum accruing after the thirty-first day of March, 1947, being interest chargeable with tax under section 29, he shall, notwithstanding any agreement to the contrary whether made before or after the passing of this Ordinance deduct ten per centum from such sum, and every anch dednation shall be a debt due from such person to the Government of Hong Kong and shall be recoverable forthwith as such or may be assessed and charged upon such person in addition to any tax otherwise payable by him under this Ordinance. Where any such person fails to make a deduction which he is required to make under this section he shall nevertheless be deemed to have made the deduction.
31. Any person who deducts Interest Tax in accordance with the provisions of section 30 shall, at the request of the recipient, issue to him a Certificate in the prescribed form ing interest, showing---
Set of and refund of deduction.
(i) the gross amount of the payment;
(ii) the amount of tax deducted;
(iii) the net amount paid or credited;
(iv) the period of accrual.
32. (1) Where the profits of any person which are liable to tax under the provisions of sections 16 and 16 include any sum from which a deduction has been made in accordance with section 30, he shall be entitled, on production of a
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Certificate issued in accordance with section 31, to a set off against the tax payable by him under the provisions of Chapter IV of the amount of the deduction shown on such Certificate: Provided that if the amount of the deduction should exceed the amount of Profits Tax, the excess shall be refunded in accordance with section 80.
(2) Where for any year of assessment a person is assessed to Profits Tax under the provisions of section 19 (5), the Commissioner may in addition to the relief duc under paragraph (1) of this section grant such further relief as he may decide to be reasonable.
(3) The aggregate relief granted under this section in respect of any sum deducted by way of Interest Tax sball in no circumstances exceed the amount of such deduction.
33. Any person who has been deemed to have made a deduction from interest payable to another person under the provisions of section 30, may retain out of any assets of auch other person coming into his possession or control, so much thereof as shall be sufficient to produce the amount of such deduction, and he shall be and is hereby indemnifier against any person whomsoever in respect of his retention of such assets; and where no assets of such other persons come into his possession or control out of which he could retain the amount deducted, the airount of such deduction shall be a debt dne to him from such other person.
Bucovery of doduction.
tax by direct alsok- ment,
34. Where, in the opinion of the Commissioner, the Recovery of provisions of section 30 relating to the deduction of Interest Tax have failed or are likely to fail to secure payment of any sum being tax upon interest charged by section 29, it shall be lawful for him to recover any such sum by way of direct assessment upon the recipient of such interest or upon his agent.
CHAPTER VI.
Depreciation, etc.
35. (1) Where in or after the basis period for the year of assessment 1947/48 a person incurs capital expenditure on the construction of a building or structure which is to be an industrial building or structure occupied for the purposes of
Initial and ab
allowances. Industri Hailding zud
a trade there shall be made to the person who incurred the tracturns. expenditure for the year of assessment in the basis period for which the expenditure was incurred an allowance to be known as an "initial allowance" equal to one-tenth thereof.
(2) (6) Where any person is, at the end of the basis period for any year of assessment, cutitled to an interest in a building or structure which is an industrial building or structure and where that interest is the relevant interest in relation to the capital expenditure incurred on the construction of that building or structure an allowance, to be known as an annual allowance," equal to one-üftieth of that expenditure shall be made to him for that year of assessment,
(b) Where at any time in or after the basis period for the year of assessment 1947/48 the interest in a building or structure which is the relevant interest in relation to any ex- penditure is sold while the building or structure is an industrial building or structure the annual allowance, in the years of assessment the basis periods for which end after the time of
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