14
(b) by inserting the following after the semicolon at the end
of paragraph (c)
"or":
ล
(c) in paragraph (d), by deleting "section 34, 35 or 36;" and
substituting the following-
his Ordinance.": and
(d)
by deleting paragraphs (e) and ().
Amendment of section 40.
19.
Section 40 of the principal Ordinance is amended-
(al
in subsection (1)—–
Repeal and
replacement of section 41.
(i) paragraph (2), by inserting the following after "names".
"and places of residence"; and
(ii) in paragraph (6), by inserting the following after "names
"and places of residence”; and
(b) in subsection (2), by deleting the following-
"The term "disqualified person" bas the meaning attributed to it in subsection (3) of section 11.".
20. Section 41 of the principal Ordinance is repealed and replaced by the following-
"Cakula- tion of royalty
payable by licensees.
(CR 1/2)
41. (1) A licensee shall pay to the Government a royalty of 25 per cent of the net profit of the licensee for each accounting year of the licensee, ascertained in accordance with Part IV of the Inland Revenus Ordinance:
Provided that-
(a) in making the deductions set out in section 16 of that Ordinance due regard shall be had to the current level of prices and costs, so that any such deduction shall be limited to such sum as the Financial Secretary may decide is reasonable and so that allowance of any sum by way of depreciation of a capital asset shall be limited to an amount which represents the allowance approved under Part VI of that Ordinance on what the Financial Secretary may decide is a reasonable price for such asset at the time of acquisition; and
(Cap. 112.3
403 303
Quarterly payments
of royalty.
15
(b) in ascertaining the net profit as aforesaid—
(i) there shall be excluded from the tax- able profits of the licensee any bank interest, interest and dividcads on investments, profits and losses on sale of investments and on redemption of investments and profits and losses on sales of capital assets of the licensee's television broadcasting undertaking but not any balancing charge or balancing allowance which may be allowed under Part VI of that Ordinance in respect of any such capital assels; and
(i) no deduction shall be made in respect of any sum which may be payable as royalty by the licensee to the Government or in respect of any interest on money borrowed by the licensee except such part of any such intereal as, in any year, is in excess of the total dividends and interest received by the licensee from any investments of the licensee. (2) The Financial Secretary and any person authorized by him in writing shall, for the purpose of ascertaining the net profit of a licensee, be an authorized representative of the licensee for the pur- poses of section 4 of the Inland Revenue Ordinance to the intent that the Commissioner of Inland Revenue and any assessor and any person appointed to carry out duties under that Ordinance shall, on demand of the Financial Secretary or such authorized person, disclose all such matters relating to the affairs of the licensee as the Financial Secretary or such authorized person may require and such disclosure shall not be deemed to be a breach of the duties imposed upon the person making it by the said section.
(3) If a licensee disputes any determination of the Financial Secretary under subsection (1) the matter shall be determined under the Arbitration Ordinance.
41A. (1) A licensee shall make quarterly pay- ments to the Accountant General on account of the royalty payable by the licenses under section 41 and accruing during each accounting year of the licensee.
(2) The amount of each payment referred to in subsection (1) shall be a sum equal to one quarter of 25 per cent of the estimated net profit of the
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