1959-HKRS29-8-26_Part01 — Page 15

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Beneling from company to theceased. 3 & 4 Goo, 6. 4. 29.

s. 4701).

Surrender

of benefits. 3 & 4 Cheo,

6. c. 29, £ 48.

Benefits

deemed to be surrendered.

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33. The following shall be treated as benefits accruing to the deceased from the company, that is to say-

(a) any profits of the company, and any periodical payment out of the resources or at the expense of the company, which the deceased received for his own benefit whether directly or indirectly, and any enjoyment in specie of land or other property of The company or of a right thereover which the deccased had for his own benefit whether directly or indirectly:

(b) any such profits or payment or enjoyment which the deceased was entitled to receive or have na aforesaid; and

(c) any such profits or payment or enjoyment which the deceased could have become entitled to receive or have as aforesaid by an exercise in the three years ending with his death of any power exer- cisable by him or with his consent:

and where the deceased could, by an exercise in the said three years of any such power as aforesaid, have become entitled to receive as aforesaid any payment out of the resources or at the expense of the company not being a periodical payment, but did not in fact receive or become entitled to receive that payment, there shall be treated as 2 benefit accruing to the deceased from the company interest on that payment at the average rate from the earliest date on which he could have become entitled to receive it.

34. (1) Subject to the provisions of subsection (3), if the deceased has made, whether for value or not, a surrender of his title to receive any such profit or payment or enjoyment as is mentioned in section 33, or of any such power as is therein mentioned, section 33 shall have effect as if the surrender had not been made.

(2) The deceased shall be deemed to have made such a surrender as aforesaid if u right which he had to receive any such profit or payment or enjoyment as aforesaid, or if any such power as aforesaid, has been extinguished or suspended by the effect solely or partly of any disposition made by him or with his consent of shares in or debentures of a company or of any other property or right, or of the exercise or the leaving unexercised by him or with his consent of any power or right, or of the extinguishment or suspension by him or with his consent of any power or right, otherwise than in a fiduciary capacity, or if apart from such a disposition or other act or omission he would

Exemptions.

Determina-

tion of net pratios of a company.

3 and 4 Gro. 6,

£. 29, & 49. (Cap. 112. 1956 Reprint).

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have become entitled to receive any such profit or payment or enjoyment as aforesaid but by the effect solely or partly thereof he did not become entitled to receive it.

(3) This section shall not apply to a surrender bom hide made before the beginning of the three years ending with the death of the deceased, or, if it was made for such purposes as are recognized by the Commissioner as public or charitable, one year before the beginning of the year ending with his death, if the deceased was at all times during those three years, or during that year, as the case may be, entirely excluded from receiving, or being entitled to receive, or having any capacity by an exercise of any power exercisable by him or with his consent to receive, any periodical payment by virtue of the surrender or of any associated operations of which the surrender was one,

35. (1) The profits of the company for any accounting year, or for the period between the end of the last account- ing year and the death of the deceased, hereinafter referred to as the assessable profits, shall be determined by ascer- taining the profits of the company from all sources, in accordance with the provisions of the Inland Revenue Ordinance relating to the ascertainment of assessable profits as if that Ordinance applied to profits not arising in or not derived from the Colony, in the same way as it does to profits arising in or derived from the Colony, subject to the modification that such assessable profits shall be computed by reference to the actual profits for that year or period, and got by reference to the profits for any other period:

Provided that –

(a) there shall be excluded from the ascertainment of such assessable profits any profits which were not bona fide acquired in the ordinary course of business nor the produce of income yielding assets: and

(b) in determining such assessable profits no account shall be taken of the provisions of sections 19 and 26 of the Inland Revenue Ordinance.

(2) The net profits of the company for the purpose of this Ordinance for any accounting year shall be determined by adding to the assessable profits for that year computed in accordance with subsection (1) the amount of any interest on debentures in the company deduction for which has already been made under the Inland Revenue Ordinance in assessing the assessable profits of the company.