1965-HKRS30-8-55_Part05 — Page 33

INLAND REVENUE ORDINANCE.

(Chapter 112).

INLAND REVENUE (AMENDMENT) (NO. 2) RULES 1965.

In exercise of the powers conferred by section 85 of the Inland Revenue Ordinance, We, the Board of Inland Revenue, bereby make the following rules-

1. These rules may be cited as the Inland Revenue (Amend. Citation, ment) (No. 2) Rules 1965,

2. The Inland Revenue Rules are amended by the addition, after Addition of rule 2, of the following new rules—

General upportion. ment of owlings

"Method of ascertainment, for the purposes of section 16 of the Ordinance, of the extent to which outgoings and expenses are incurred in the production of profits in respect of which a person is charge- able to tax under Part IV of the Ordinance.

24. (1) No deduction shall be allowed for any out- going or expense incurred in the production of profits not arising in or derived from the Colony, but where any out- and expanses, going or expense was incurred partly in the production of profits arising in or derived from within the Colony and partly in the production of profits arising or derived from outside the Colony, then, for the purpose of ascertaining the extent to which such outgoing or expense is deductible under section 16 of the Ordinance, an apportionment thereof shall be made on such basis as is most appropriate to the activities of the trade, profession or business con- cerned.

Latorest on borrowed

money used I purchase of duures.

(2) Where, apart from or in addition to the circum- stances referred to in paragraph (1) as giving rise to au apportionment, it is necessary to make an apportionment of any outgoing or expense by reason of it having been incurred not wholly and exclusively in the production of profits in respect of which a person is chargeable to tax under Part IV of the Ordinance, such apportionment of further apportionment, as the case may be, shall, subject to the provisions of rules 2B and 2C, be made on such basis as is most reasonable and appropriate in the circum- stances of the case.

28. (1) Where interest is paid or payable on any sum of money borrowed and used partly for the purpose of acquiring shares in a corporation which is chargeable to tax under Part IV of the Ordinance and partly for some

new rules 24, 28, 2C

and 2D.

(Vol. IX, p. 356).