1959-HKRS28-8-26_Part01 — Page 18

7&B Geo, 6. c.23. * 38.

Meaning

of exemp- tion.

* * 8 Geo.

6. c. 23.

2. JR.

Value of

Assets

acerthing (a deceased.

3 & 4 Gro. 6, c. 29.

4. 51(3).

32

then, unless the exemption takes the form of a deduction from the value of the shares or debentures of a fixed amount which is independent of the value of the shares or debentures. the references in paragraphs (a) and (6) of subsection (4) to the value of the shares or debentures therein mentioned shall have effect as if they were references to the value thereof reduced to the extent to which, in the opinion of the Commissioner, that value is attributable to that transfer, extinguishment or alteration.

(6) Where, by reason of an exemption from estate duty, that duty is payable on part only of the value of the shares or debentures, subsection (4) shall, with the necessary adaptations, be applied to the part of the value of the shares or debentures on which duty is payable and sub- section (5) shall be applied to the part of the value of the shares or debentures affected by the exemption; and, where there are two or more exemptions from estate duty each of which operates on part only of the value of the shares or debentures and the exemptions are such that subsection (5) would operate differently in relation to them, then. whether or not there is any part of the value of the shares or debentures on which estate duty is payable, subsection (5) shall, with the necessary adaptations, be applied separ- ately in relation to the parts of the value of the shares or debentures affected by each exemption.

(7) In this section the expression "exemption from estate duty" includes any exemption conferred by any provision of this or any other enactment which bas the effect of exempting property, in whole or in part, from estate duly, whether that provision takes the form that the property is not to be deemed to pass, or the form that the duty is not to be payable, or the form that a deduction is to be made from the value of the property, or any other form; and the reference in paragraph (b) of the proviso to subsection (5) to an increase in the value of shares or debentures includes, where those shares or debentures have been acquired in substitution for any other property, any increase in the value of any property which those shares or debentures directly or indirectly represent.

(8) References in this section to the proportion of the value of the company's assets that corresponds to any particular benefits shall be construed as references to so much of the value on which estate duty is chargeable on the death by virtue of section 32 as is chargeable by reason of the bringing of those benefits into the compulation made under subsection (2) of that section,

Allowance for cason- able re- muneration.

3 & 4 Geo. 6. c. 29.

* $804).

Limitation

of excep- tions.

1 & 4 Geo. 4. 29,

* 56(1) *

14 Gee. 6, c. 13, s. 47

3 & 4 Geo. 6, 4. 29. * 1802) & 14 Geo. 6. C. 15.

431).

Duty o

formation

ou death.

33

(9) So much of any profit or periodical payment or enjoyment of a kind mentioned in section 33 as is shown to the satisfaction of the Commissioner to have represented. or to have been such that it would if received have repre- sented, reasonable remuneration the deceased for

any services rendered by him as the holder of an office under the company shall, notwithstanding anything in that section, not be treated for the purposes of sections 31 to 42 inclusive, as a benefit accruing to the deceased from the company; and any liability of the company in respect of the remuneration of any person as the holder of an office under the company shall be treated for the purposes of the aforesaid sections as incurred for the purposes of the business of the company wholly and exclusively to the extent to which it is shown to the satisfaction of the Com- missioner that the amount thereof was reasonable, and that extent only.

38. (1) If a company to which section 12 applies was concerned in a transaction falling within the scope of that section, or in any one or more of associated operations of which that transaction formed one, the provisions of paragraph (a) of section 7. und of subsection (3) of section 37, shall have no effect as respects that transaction or opération.

(2) Where a disposition has been made or an interest determined or surrendered to which either the proviso to paragraph (b) of subsection (1) of section 6, or subsection (3) of section 34, applies and, that disposition, determina- tion or surrender, or one or more associated operations of which that disposition or determination or surrender formed one. concerned-

(a) a company to which section 32 applies, and (6) another person being the owner of the beneficial

interest involved.

then the conditions as to the entire exclusion of the person referred to in paragraph (b) above, shall not be treated for the purpose of the aforesaid provisions as having been satisfied if it can be shown that at the time of the said disposition, determination or surrender, or at any time there- after, the said person had any benefit by virtue of that dis- position, determination or surrender.

39. (1) A company to which section 32 applies shall be under obligation to inform the Commissioner. within one month from the date of the death of the deceased, of