1975-HKRS28-16-23_Part01 — Page 20

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5

Addition

of new section 129.

Amendment

of section

13.

Amendment

of section IS.

5. The principal Ordinance is amended by adding, after section 12A, the following new section—–

**Ascertain- Tent of not chargeable income.

6.

12B. The net chargeable income for any year of assessment of a person chargeable to tax under this Part shall be such amount as is arrived at after first || giving effect to sections 12 and 12A in relation to his assessable income for the relevant year of assessment and then deducting the allowances provided for under section 428.**.

Section 13 of the principal Ordinance is amended in paragraph (6) of the proviso by deleting "section 12(1)(b) and (c) and any allowance under section 42B(1)(e)" and substituting the following-

"section 1201) and any excess set off under section 12A", 7. Section 15(1) of the principal Ordinance is amended by deleting paragraph (e).

Repeal of

8.

Section 15A of the principal Ordinance is repealed.

Section

15A.

Amendment

9.

of section 16.

Addition of

new section

160.

Section 16 of the principal Ordinance is amended- (a) in subsection (1) by deleting paragraph (c); and (b) by deleting subsection (2).

10. The principal Ordinance is amended by adding, after section 160, the following new section-

"Approved charitable donations.

16D. (1) Subject to subsection (2), a person chargeable to tax under this Part may deduct the aggregate of approved charitable donations made by that person in the basis period for a year of assess. ment, if such aggregate is not less than one hundred dollars, from what would otherwise have been the assessable profits of such person for that year of

assessment.

(2) A person shall not be entitled under sub- section (1) to deduct for any year of assessment-

(a) any sum which is allowable as a deduction under paragraph (c) of subsection (1) of section 12 or section 16, 16B, or 160; (b) a sum in excess of ten per cent of such balance of that person's assessable profits after making any adjustment for the allow- ances and charges provided under Part VI.".

Amendment of section

II. Section 18 of the principal Ordinance is amended- (a) in subsection (3) by deleting "Where a person com- 18.

mences" and substituting the following-

**Subject to section 18C, where a person commences": (b) in the proviso to subsection (4) by inserting, after

"respectively", the following-

" but where the commencement is in the year of

+

assessment commencing on the 1st April 1973, such

claim for recomputation shall relate only to the

year of assessment commencing on the 1st April 1974;": and

(e) by deleting subsection (7) and substituting the follow-

ing-

"(7) This section shall apply to the years of assessment up to and including the year of assess- ment commencing on the 1st April 1974.“.

12. The principal Ordinance is amended by adding, after Addition section 18, the following new sections-

sections

"Assessable profits for the year of Assessment 1974/5.

of new

180, 180.

IBA. (1) Where the assessable profits for the 18A, 189, year of assessment commencing on the 1st April 1974 18E and from any trade, profession or business fall to be 18F, computed under section 18(1) but the actual profits from that source for that year of assessment exceed those assessable profits as so computed, then, not- withstanding section 18, the assessable profits for the year of assessment commencing on the 1st April 1974 shall be computed on the basis of those actual profits.

(2) Where the assessable profits for the year of assessment commencing on the 1st April 1974 from any trade, profession or business fall to be computed under section 18(2) on the amount of profits from that source for the year ending on a day other than the 31st March in the year preceding that year of assess- ment but the actual profits from that source—

(a) for the year ending on the corresponding

day in the year of assessment; or (b) if the accounts for that trade, profession or business were made up to more than one day in the year of assessment, for the year ending ou such of those days as the Commissioner may direct,