1975-HKRS28-16-23_Part01 — Page 19

Amendment.

7

"authorized representative" means a person au- thorized in writing by any other person to act on his behalf for the purposes of this Ordinance:"; and

(b) in the definition of "tax" by inserting, after “Part XA".

the following-

"and provisional profits tax charged under Part XB".

3. Section 9(2) of the principal Ordinance is amended by of section 9. deleting "the outgoings and expenses referred to in section 12(1)(b) the allowances referred to to section 12(1)(c)" and substituting the following-

Repeal and

"the outgoings, expenses and allowances provided for in section 12(1)(a) and (b) to the extent to which they are incurred during the period for which the place of residence is provided".

4. Sections 12 and 12A of the principal Ordinance are replacement repealed and replaced by the following-

of sections 12 and 12A.

***Adjust-

ments to assessable

income.

12. (1) In ascertaining the net chargeable income in respect of which a person is chargeable to tax under this Part for any year of assessment, there shall be deducted from the assessable income of that

person-

(a) all outgoings and expenses, other than ex- penses of a domestic or private nature and capital expenditure, wholly, exclusively and necessarily incurred in the production of the assessable income;

(b) allowances calculated in accordance with Part VI in respect of capital expenditure on machinery or plant the use of which is essential to the production of the assessable income; and

(c) subject to subsection (4), the aggregate of approved charitable donations which are made during the year of assessment by that person or his wife, not being a wife living apart from her husband, if such aggregate amount is not less than one hundred dollars. (2) Where any machinery or plant is not used wholly and exclusively in the production of assessable

Treatment of losses.

income, the amount of the allowances provided for in subsection (1)(b) shall be reduced in the proportion considered by the assessor to be fair and reasonable.

(3) Every person who claims a deduction by virtue of subsection (1) shall make his claim on the form specified by the Board of Inland Revenue and the deduction shall be permitted only if the claim contains such particulars and is supported by such proof as the Commissioner may require.

(4) A person shall not be entitled under sub- section (1)(c) to deduct for any year of assessment-- (a) any sum which is allowable as a deduction

under section 16, 16B, 16C or 16D;

(D) a sum in excess of ten per cent of such balance of that person's assessable income after deducting from his assessable income the outgoings, expenses and allowances pro- vided for under subsection (1)(a) and (b). (5) The amount of assessable income for any year of assessment of a person chargeable to tax under this Part shall be increased by the amount of any balancing charge directed to be made under Part VI on that person in respect of the machinery or plant used in the production of the assessable income.

12A. (1) Where in any year of assessment the aggregate of the outgoings, expenses and allowances deductible under section 12(1)(a) and (b) from the assessable income of a person exceeds the amount of his assessable income, the amount of the excess shall be carried forward and set off against his assessable income in subsequent years of assessment.

(2) The aggregate amount set off against a person's assessable income in subsequent years of assessment shall not exceed the amount of any excess under subsection (1),

(3) A set off by a person under this section shall first be made against his assessable income for the year of assessment next succeeding the year of assess- ment in respect of which the excess occurred and, so far as it cannot be so made, against his assessable income for the next year of assessment and so on until the excess bas been completely set off.".