1956-HKRS29-8-23_Part03 — Page 6

Amendment

(b) a premium, other than an ordinary annual

premium, in respect of a contract of insurance! under an approved retirement scheme, such payment shall, to the extent that it is made in respect of individuals employed by such person for the purposes of producing profits in respect of which he is chargeable to tax under this Part and that it is not excessive in view of all the relevant circumstances, be deemed to be an expense wholly and exclusively incurred in the production of such profits and shall be allowed as a deduction therefrom in accordance with subsection (2).

(2) For the purpose of making the deduction provided for in subsection (1), one fifth part of the payment shall be deemed to have been expended during the basis period in which the payment was actually made and the remaining four parts shall be deemed to have been expended at the rate of one part in the basis period for each of the succeeding four years of assessment ;

Provided that in no case shall the total amount of the deductions exceed the amount of the payment.

(3) For the avoidance of doubt it is hereby declared that this section is applicable only to pay- ments made in or after the basis period for the year of assessment commencing on the 1st day of April, 1955.''.

13. Subsection (r) of section 17 of the principal Ordinance of section is amended-

17.

(a) by the deletion of the words ''assessable profits" and the

substitution therefor of the following—

"profits in respect of which a person is chargeable to tax under this Part";

(b) by the deletion of paragraph (h) and the substitution

therefor of the following-

"(h) any sum paid by an employer being either an ordinary annual contribution to a fund duly established under an approved retirement scheme or an ordinary annual premium in respect of a contract of insurance under an approved retire-

ment scheme, to the extent that such payment exceeds 15% of the total emoluments of each employee concerned for the period in respect of which the payment is made.".

14. Section 18 of the principal Ordinance is repealed and Repeal and

replace- replaced by the following section-

ment of

"Basis for computing profita

18. (r) Save as provided in this section, the section 18. assessable profits for any year of assessment from any trade, profession or business carried on in the Colony shall be computed on the full amount of the profits therefrom arising in or derived from the Colony during the year preceding the year of assessment.

(2) Where the Commissioner is satisfied that the accounts of a trade, profession or business carried on in the Colony are usually made up to some day other than the gist day of March, he may direct that the assessable profits from that source be computed on the amount of the profits therefrom arising in or derived from the Colony during the year ending on that day in the year preceding the year of assessment,

Where, however, the assessable profits from any trade, profes- sion or business have been computed by reference to an account made up to a certain day, and no account is made up to the corresponding day in the year follow- ing, the assessable profits from that source both for the year of assessment in which such failure occurs and for the two years of assessment following shall be computed on such basis as the Commissioner in his discretion thinks fit.

(3) Where a person commences to carry on a trade, profession or business in the Colony on a day within a year of assessment, the assessable profits from that source for such year of assessment shall be com- puted on the amount of the profits therefrom arising in or derived from the Colony during the period begin- ning on the date of commencement and ending on the last day of that year of assessment,

(4) Where a person has commenced to carry on

a trade, profession or business in the Colony on a day within the year preceding a year of assessment, the assessable profits from that source for that year of