1956-HKRS29-8-23_Part03 — Page 10

Ascertain-

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"ship" includes aircraft;

"total profits" for any period means the world profits of a person from his business as an owner of ships as shown by his accounts for such period :

Provided that where the said total profits have been computed on a basis which differs materially from that prescribed in this Part for the ascertain- ment of assessable profits, such profits shall be adjusted so as to correspond as nearly as may be to the sum which would have been arrived at had they been computed in accordance with the provi- sions of this Part relating to the ascertainment of assessable profits.

230. (1) Where a person to whom the provisions ment of the of section 23B do not apply carries on a business as asdessable profits of

an owner of ships and any ship owned or chartered 3 100- resident

by him calls at the Colony such person shall be ship-owner. deemed to be carrying on that business in the Colony, and the assessable profits from such 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 attributable to a permanent establishment maintained by such person in 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, livestock 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 out- ward freight is payable in the Colony.

(a) Where in the opinion of the Assessor the provisions in subsection (1) for computing assessable profits cannot for any reason be satisfactorily applied

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in the case of any particular person, the assessable profits of such person for any year of assessment may be computed on a fair percentage of 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 attributable to a permanent establishment maintained by such person in the Colony :

Provided that where the profits of any person have been assessed for any year of assessment in accordance with this subsection, such person strall, notwithstand- ing the provisions of section 70, be entitled to claim at any time within two years of the end of such year of assessment that his assessable profits for that year be recomputed on the basis' provided by subsection (1) of this section.

(3) Where the Commissioner is satisfied that the call of a ship owned or chartered by a person to whom the provisions of this section apply is casual and that further calls at the Colony by that ship or others in the same ownership are improbable, he may in his discretion direct that such person shall not be deemed to be carrying on business in the Colony by reason of such casual cali.

(4) The master of any ship owned by a person to whom the provisions of this section apply shall, though not to the exclusion of any other agent, be deemed to be the agent of such person.

(5) 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 habil- ually exercises, a general authority to negotiate and conclude contracts on behalf of his principal;