1969-HKRS29-8-36_Part02 — Page 3

Amendment of section 36.

Amendment of section 37,

Amendment of section 37A.

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able with tax under section 28 which that person pays or credits to any person specifled in the notice who is exempt from interest tax under section 87 or 88, and any person so directed by the Commissioner shall not make and shall not be deemed to have made the deduction.".

18. Section 36 of the principal Ordinance is amended by deleting "owns a commercial building or structure" and substitut- ing the following—

"is entitled to an interest in a commercial building or struc- ture and where that interest is the relevant interest in relation to the capital expenditure incurred on the construction of that building or structure".

19. Section 37 of the principal Ordinance is amended- (a)

in subsection (1). by deleting "for the purposes of thai made, profession or business” and substituting the follow- ing-

"for the purposes of producing profits chargeable to tax under Part IV":

(b) in subsection (2), by deleting "for the purpose of his trade, profession or business" and substituting the follow- ing-

"for the purposes of producing profits chargeable to Lax under Part IV":

(c) by inserting after subsection (2) the following new sub-

section-

"(2A) For the purposes of subsection (2), in any case where machinery or plant is owned and used by a person for any period immediately before he uses it for the purposes of producing profits chargeable to tax under Part IV, "cost of the asset" means the sum computed by deducting from the actual cost the notional amount of the annual allow- ances which would have been made under subsec- tion (2) to the owner if since acquiring the asset he had used it for the purpose of producing profits chargeable to tax under Part IV.”.

20. Section 37A of the principal Ordinance is amended by deleting "for the purposes of his trade, profession or business" wherever it appears in subsections (1) and (2) and substituting in each case the following-

"for the purposes of producing profits chargeable to tax under Part IV".

21. Section 38 of the principal Ordinance is amended by deleting the full stop at the end of subsection (2), substituting a semicolon and adding the following-

"but in a case where an annual allowance has been computed on the cost of the asset as determined in accordance with subsection (2A) of section 37, the cost of the asset as com- puted in accordance with that subsection shall be deemed to be the capital expenditure for the purposes of this sub- section.".

22. Section 40 of the principal Ordinance is amended in sub- section (1)—

(a) by inserting after the definition of "basis period" the

following-

""capital expenditure" does not include expenditure which is reimbursed by way of or attributable to any grant, subsidy or similar financial assist- ance:''; and

(6) by deleting "by the owner" in the definition of "com- mercial building or structure" and substituting the follow- ing-

"by the person entitled to the relevant interest".

23. Section 41 of the principal Ordinance is amended in sub- section (4) by deleting paragraph (D) in the definition of “indivi- dual" and substituting the following-

"(b) a person under the age of eighteen;"

24. Section 42 of the principal Ordinance is amended by deleting paragraph (a) of subsection (1) and substituting the follow- ing-

(a) the sum which is equivalent to that part of the net amount (after deduction of the allowance for repairs and outgoings) on which any property tax is charge- able on the individual which represents proportion- ately the part or parts of the land or buildings or land and buildings in respect of which the property tax is chargeable which have been let for any period during the year of assessment, taking into account both the area or areas let and the period or periods of letting:".

25. Section 428 of the principal Ordinance is amended in Aubsection (1)-

(d) by inserting after "school or other" in paragraph (c) the

following-

"similar":

Amendment of section 38.

Amendment of section 40.

Amendment of section 41.

Amendment of section 43.

Amendment of section 428.