1947-HKRS28-8-14_Part02 — Page 19

Parsona *ssessable on bahall of

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48. (1) A non-resident person shall be assessable either directly or in the name of his agent in respect of all his profits non-resident 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 Ordinace out of the assets of the non-residevat 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.

Profita of shipowners, ǝircraft. owners and chartazara.

(2) Every person chargeable with tax as agent, or from whom tax is recoverable in respect of the profits of another 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 hereby indemnified against any person whomsoever in respect of his retention of such assets.

49. (1) Where a person carries on a business of ship- owner or aircraft owner or charterer and any ship or sircraft owned or chartered by such person calls at a port in the Colony the full amount of the profits arising from the carriage of passengers, mails, livestock and goods shipped in the Colony shall be deemed to arise in the Colony: Provided that this section shall not apply to goods which are brought to the Colony solely for transhipment.

(2) The following provisions shall apply to the deter- mination of such profits-----

(a) the profits arising in Hong Kong from shipping or air transport business for any accounting period shall be the sum bearing the same ratio to the sums receivable in respect of carriage of passengers, mails, livestock and goods shipped in the Colony as the total profits for the said period shown by that person's accounts bear to the total sums receivable by him in respect of the carriage of passengers, mails, livestock and goods: Provided that where the said total profits have been computed on a basis which differs materially from that prescribed in Chapter TV for the ascertainment of profits, the ratio of profits shall be adjusted so as to correspond as nearly as may be to the ratio which would have been arrived at if the profits had been computed in accordance with the provisions of Chapter IV relating to the ascertainment of profits;

(6) where the provisions of paragraph (2) (a) of this sec- tion cannot for any reason be satisfactorily applied, the profits arising in the Colony may be computed on a fair percentage of the full sum receivable on account of the carriage of passengers, mails, livestock and goods shipped in the Colony: Provided that where any person has been assessed for any year of assessment by reference to such percentage, he shall be entitled to claim at any time within one year of the end of such year of assessment that his liability to tax for that year be recomputed on the basis provided by paragraph (2) (a) of this section;

(c) where the Commissioner decides that the call of a ship or aireraft belonging to a particular shipowner or charterer at a port of the Colony is casual and that further calls by that ship or aircraft or others in the same ownership

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are improbable, he may in his discretion exempt the profite of such ship or aircraft from the provisions of this section, and thereupon such profits shall be treated as if they do not arise in the Colony.

(3) The master of any ship or aircraft owned or chartered by a person whose profits are calculated under the provisions of this section shall (though not to the exclusion of any other agent) be deemed the agent of such person for all the purposes of the Ordinance.

METAK.

ments.

50. (1) If the Governor in Council by Order declares Double that arrangements specified in the Order have been made with taxation the Government of any territory outside the Colony with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory, and that it is expedient that those arrangements should have effect, the arrangements shall have effect in relation to tax under this Ordinance notwithstanding anything in any enactment.

(2) On the making of an Order under this section with respect to arrangements relating to the United Kingdom, Section 46 shall cease to have effect except in so far as the arrangements otherwise provide.

(3) On the making of an Order under this section with respect to arrangements relating to any territory forming part of His Majesty's dominions (other than the United Kingdom or this Colony), Section 40 shall cease to have effect as respects that territory except in so far as the arrangements otherwise provide.

(4) Any Order made under this section may be revoked by a subsequent Order.

(8) Where any arrangements have effect by virtue of this Section, the obligation as to secrecy imposed by section 4 of this Ordinance shall not prevent the disclosure to any authorised officer of the government with which the arrange- ments are made of such information as is required to be disclosed under the arrangements.

(6) The Governor in Council may make rules for carrying out the provisions of any arrangements having effect under this section.

51. (1) The provisions of this Section shall have effect Tax credita. where, under arrangements having effect under Section 50, tax payable in respect of any income in the territory with the Government of which the arrangements are made is to be allowed as a credit against tax payable in respect of that income in the Colony; and in this Section the expression ""foreign tax" means any tax payable in that territory which under the arrangements is to be so allowed and the expression ''tax" means tax chargeable under this Ordinance.

(2) The amount of the tax chargeable in respect of the income shall be reduced by the amount of the credit:

Provided that credit shall not be allowed against tax for any year of assessment unless the person entitled to the income is resident in the Colony for that year.