1959-HKRS28-8-26_Part01 — Page 20

Accounting god charging.

Vahse of thares and

controlled

companies.

1 & 4 Gep..

6. c. 29, s. 4s

36

which he may have apart from this subsection, recover the amount of duty so paid or raised as aforesaid from any person who is accountable therefor otherwise than by virtue of paragraph (c) of subsection (1).

(8) No part of the duty paid by the company sball be recoverable by it from any person on the ground only that he is entitled to any interest in, or to any sum charged on, the assets which the company had at the death of the deceased.

(9) The following provisions shall not have effect in relation to the duty payable by virtue of section 32, that is to say-

(a) so much of subsection (2) of section 9 as relates to payment of estate duty on all property of which the deceased was competent to dispose at his death;

(6) so much of subsection (4) of section 11 as relates to the accountability of the executor of the deceased in respect of all property of which the deceased was competent to dispose at his death, and subsection (5) of that section,

and subsection (1) of section 15 shall have offect in relation to the estate as if the property passing by virtue of section 32 had been property passing to the executor as such.

41. (1) Where for the purposes of estate duty there debentures of pass shares in or debentures of a company to which by virtue of section 31 this section applies, then if the deceased had the control of the company at any time during the three years ending with his death, the principal value of the shares or debentures, in lieu of being estimated in accordance with the provisions of paragraph (a) of subsection (4) of section 10, shall be estimated by reference to the net value of the assets of the company in accord- ance with the provisions of subsection (2) of this section:

and 2 & 3

Eliz. 2, c. 44.

s. 29(1) (@).

2, c. 44,

2 & 3 Eliz.

* 30(3),

Provided that any liability of the company arising. or which may arise, after the death for corporation profits tax shall be taken into account as if it were an actual but contingent liability at the date of the death, in so far as the liability or its amount is referable to profits accruing before the death, whether then realized or not; and in estimating any such liability for taxation charged on profits arising after the death the Commissioner shall

3 & 4 Geo. 4. c. 29,

B. 55(2),

Person

deemed to bave control of company for purposes of valuation.

37

take into account the extent, if any, to which the fast- mentioned profits are likely to be insufficient to meet the liability.

(2) The principal value of the shares and debentures mentioned in subsection (1) shall be estimated as follows- (a) the net value of the assets of the company shall be taken to be the principal value thereof estimated in accordance with the said paragraph (a) of subsection (4) of section 10, less the like allowance for liabilities of the company as is provided by subsection (1) of section 36 in relation to the assets of a company passing on

a death by virtue of section 32, but subject to the modification that allowance shall be made for such a liability as is mentioned in paragraph (b) of subsection (1) of section 36 unless it also falls within paragraph (a) thereof;

(b) the aggregate value of all the shares and deben- tures of the company issued and outstanding at the death of the deceased shall be taken to be the same as the net value of the assets of the company:

(c) in a case in which there are both shares in and debentures of the company issued and outstand- ing at the death, or different classes of either, the net value of the assets of the company shall be apportioned between them with due regard to the rights attaching thereto respectively; and (d) the value of any share, or of any debenture, or of a share or debenture of any class, shall be a rateable proportion, ascertained by reference to nominal amount, of the net value of the assets of the company as determined under paragraph (a), or, in the case mentioned in paragraph (c), of the part thereof apportioned under that para- graph to the shares of the company, or to its debentures, or to that class thereof, as the case may be.

(3) For the purposes of this section a person shall be deemed-

(a) to have control of a company at any time if he then bad the control of powers of voting on all questions, or on any particular question, affecting