1959-HKRS29-8-26_Part01 — Page 16

74 & Ged. 6. c. 13, 9. 37.

Allowances in the

valuation of assets.

3 & 4 Geo.

6. c. 29,

Basis of

valpation.

3 & 4 Gep.

6. c. 29,

6. 5000).

Allowance for partial con- sideration for distributed

3 & 4 Geo. 6. 2. 279. *. 50(3).

28

(3) The provisions of subsection (3) shall, for a like purpose and with any necessary adaptations, apply to the determination of any loss sustained by a company, as it applies to the determination of the assessable profits of a company.

36. (1) In determining the value of the estate for the purpose of estate duty the provisions of subsection (1) of section 10, as to making allowance for debts and incum- brances shall not have effect as respects any debt or incumbrance to which assets of the company passing on the death by virtue of section 32 were liable. but the Commissioner shall make an allowance from the principal value of those assets for all liabilities of the company (computed as regards liabilities which have not matured al the date of death. by reference to the value thereof, at that date, and, as regards contingent liabilities, by reference to such estimation as appears to the Commissioner to be reasonable) other than-

(e) abilities in respect of shares in or debentures of

the company; and

(6) liabilities incurred otherwise than for the purposes of the business of the company wholly and exclusively.

(2) In estimating for the purpose of subsection (1). the principal value of the assets deemed to pass on the death by virtue of section 32, the Commissioner shall fix the price thereof on the basis of a sale of the business of the company as a going concern, and the proportion of that value upon which estate duty is payable by virtue of section $ as modified by paragraph (6) of section 7, shall be ascertained by comparing-

(a) the aggregate value at the date of death of the deceased of those items of property which together form the assets of the company other than those situate at that date outside the Colony: with

(b) the aggregate value at that date of those items of

property wheresoever situate, which together for the assets of the company.

(3) Where the assets passing on the death by virtue of section 32 include any distributed assets, if partial con- sideration, other than the extinguishment, or an alteration of rights attaching to shares in or debentures of a company to which that section applies, was given for the distribution in money or money's worth received by the company for

Valuation of distri buted Berets.

3 & 4 080,

6. c. 29,

*. 50(4).

Limitation on charge. 3 & 4 Geo. 6. c. 29, *. $101)

Tacer+ pretation.

3 & 4 Gen. 6. c. 29,

• SKIL

Limitation

of value where considera- tina given. 14 Gap. 6, c. 15, s. 47. 15 & 16

29

its own use and benefit, a further allowance shall be made, in addition to the allowances specified in subsection (1), of an amount equal to the value of the consideration given.

(4) For the purpose of the estimation of the principal value of any distributed assets, paragraph (a) of subsec- tion (4) of section 10, shall have effect with the substitution for the reference therein to the time of the death of the deccased of a reference to the time of the distribution, and effect shall be given to the proviso to paragraph (6) of the said subsection as at the time of the distribution only, due regard being had to the expectation of life of the deceased at that time.

37. (1) If it is shown to the satisfaction of the Commissioner that-

the value of all such property as is mentioned in sub- section (1) of section 32 of which the deceased made a transfer to the company, together with an amount equal to any excess of interest at the average rate on the value thereof from the date or respective dates of transfer to the death of the deceased over the aggregate amount of the benefits received by the deceased by virtue of the transfer is less than the value on which estate duty would be chargeable on the death under section 32 if all benefits accruing to him from the company other than benefits received by him by virtue of the transfer were disregarded.

then, an amount equal to the deficiency shall be deducted from the proportion of the value of the company's assets that corresponds to the benefits received by him by virtue of the transfer,

(2) References in subsection (1) to benefits received by the deceased by virtue of a transfer shall be construed as references to benefits accruing to him from the com- pany which he received or had as consideration for the transfer, or in consequence of his having received as con- sideration therefor shares or debentures or other property which produced any of those benefits.

(3) Where the following conditions are satisfied, that is to say, that the deceased has, within three years before his death, disposed of any shares in or debentures of the company for consideration in money or money's worth paid to him for his own use or benefit, and that any benefits accrued to the deceased from the company by virtue of