1964-HKRS28-8-31_Part02 — Page 22

Amendment

3.

Section 12 of the principal Ordinance is amended by the inser- of section 12. tion, after subsection (2), of the following new subsection—

Amcodment

of section 14.

Amendment

“(2A) Where, under the provisions of subsection (2), the amount of any allowance provided for in paragraph (c) of sub- section (1) is reduced, such reduction shall not affect the calculation of subsequent allowances or charges provided for in the said para- graph which shall be computed in the first place as if the full amount of the allowance had been granted and may then be apportioned in relation to the extent to which the machinery or plant concerned is or has been used in the production of such assessable income.”.

4. Section 14 of the principal Ordinance is amended by the inser- tion in subsection (1), after the words "from such trade or business”, of the following--

excluding profits arising from the sale of capital assets".

5. Section 15 of the principal Ordinance is amended by the inser

of section 15. tion in subsection (1), after the words "from such trade, profession or

business", of the following-

Amendment of section 150.

Repçal and replacement

of section 16.

*. excluding profits arising from the sale of capital assets”.

6.

Section 15C of the principal Ordinance is amended—

(a) by the deletion of the words "the assessable profits of that

person” and the substitution therefor of the following-

"the profits in respect of which that person is chargeable to tax under this Part"; and

(b) by the deletion, in sub-paragraph (ii) of paragraph (a), of the words "his assessable profits from such trade or business" and the substitution therefor of the following-

"the profits from such trade or business in respect of which such purchaser is chargeable 10 tax under this Part". Section 16 of the principal Ordinance is repealed and replaced by the following-

7.

"Ascerlain-

COL of chargeable profits.

16. (1) In ascertaining the profits in respect of which a person is chargeable to tax under this Part for any year of assessment there shall be deducted all outgoings and expenses wholly and exclusively incurred during the basis period for that year of assessment by such person in the production of profits in respect of which he is chargeable to tax under this Part for any period, including-

(a) sums payable by such person by way of interest upon any money borrowed by him, if such money was borrowed for the purpose of producing such profits;

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(b) rent paid by any tenant of land or buildings occupied by him for the purpose of acquiring such profits;

(c) the allowances provided by Part VI (Depreciation, etc.) to the extent to which the relevant assets are used in the production of such profits;

(d) bad debts incurred in any trade, business or pro- fession, proved to the satisfaction of the assessor to have become bad during the basis period for the year of assessment, and doubtful debts to the extent that they are respectively estimated to the satisfaction of the assessor to have become bad during the said basis period notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of the said basis period:

Provided that-

() deductions under this paragraph shall be limited to debts which were included as a trading receipt in ascertaining the profits, in respect of which the person claiming the deduction is charge- able to tax under this Fart, of the period within which they arose, and debts in respect of money lent, in the ordinary course of the business of the lending of money within the Colony, by a person who carries on that business;

(ii) all sums recovered during the said basis period on account of amounts previously allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as part of the profits of the trade, business or profession for that basis period:

(e) expenditure incurred in the repair of any premises, plant, machinery, implement, utensil or article employed in the production of such profits;

(f) expenditure incurred in the replacement of any implement, utensil or article employed in the production of such profits:

Provided that no allowances have been or shall be made under the provisions of Part VI io respect of such implement, utensil or article,