1956-HKRS28-8-23_Part03 — Page 9

Amendment of section 23.A.

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(c) by the addition at the end of subsection (3) of the

following-

"Where an effective election has been made it shall be lawful to give effect to such election notwithstand- ing the provisions of section 70.";

(d) by the deletion from subsection (7) of the words "basis periods which comprise" and the substitution therefor of the following-

"years or other periods which make up";

(*) by the deletion from subsection (7) after the word "such"

of the word "basis";

(f) by the deletion from paragraph (c) of subsection (8) wherever they occur of the words "of assessment";

(g) by the deletion from paragraph (c) of subsection (8) of the word "comprise" and the substitution therefor of the following-

**make up".

20. Section 23A of the principal Ordinance is amended- (a) by the insertion in subsection (1) after the phrase

'corresponding reinsurance" of the following-

"and adding thereto any interest or other income arising in or derived from the Colony'';

(b) by the deletion from subsection (1) of the following-

"', due account being taken in each case by set-off against such expenses of any income or profits other than premiums";

(0) by the addition after the semi-coton at the end of

paragraph (a) of subsection (2) of the following-

"and"

(d) by the deletion of the semi-colon and the word "and" at the end of paragraph (b) of subsection (2) and the substitution therefor of a full stop.

(e) by the deletion of paragraph (c) of subsection (2).

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21. The principal Ordinance is amended by the addition Addition after section 23A of the following new sections-

"Ascer-

Lainment of the assessable profits of a resident ship-owner.

of new Bections 29B and

238. (1) Where a person carries on a business as 23C. an owner of ships and either—-

(a) the business is normally controlled or

managed from within the Colony, or

(b) such person is a company incorporated in the

Colony,

such person shall be deemed to be carrying on that business in the Colony and the assessable profits from that business for any year of assessment shall be the sum bearing the same ratio to the aggregate of the sums receivable during the basis period for such year of assessment by such person in respect of the carriage of passengers, mails, livestock and goods shipped in the Colony and in respect of charter hire other than charter hire attributable to a permanent establishment maintained by such person outside the Colony as his total profits for the basis period bear to the aggregate of the total sums receivable by him during that period in respect of the carriage of passengers, mails, live- stock and goods and in respect of charter hire:

Provided that in calculating the sums receivable in respect of the carriage of passengers, mails, live- stock and goods shipped in the Colony nothing shall be included in respect of the shipment of goods brought to the Colony solely for transhipment unless the outward freight is payable in the Colony,

(2) In this section-

'charter hire" means sums receivable by a ship-owner

under a charter party;

"owner" includes a charterer;

"permanent establishment" means a branch, manage- ment or other place of business, but does not include an agency unless the agent has, and habit- ually exercises, a general authority to negotiate and conclude contracts on behalf of his principal: