Change of accounting date and apportion- ments.
10
(7) A claim made under subsection (6) shall be regarded as an objection to an assessment under section 64 for the purposes of Part XL
18E. (1) Where the assessable profits of a per- son from any trade, profession or business carried on in the Colony have been computed by reference to an account made up to a certain day in any year of assessment and either-
(a) that person fails to make up an account to the corresponding day in the following year of assessment; or
(b) that person makes up accounts to more than one day in the following year of assessment.
then-
(i) the assessable profits from that source for the year of assessment in which the circum- stances described in either paragraph (∞) or (b) prevail shall be computed on such basis as the Commissioner thinks fit; and (U) the assessable profits for the year preceding that year of assessment shall be recomputed on such basis as the Commissioner thinks 6t.
(2) For the purposes of subsection (1)—–
(a) where the accounts of any trade, profession or business are made up to the end of the Lunar year, the Commissioner may accept those accounts as being made up to a cor- responding day in each year of assessment;. and
(6) in the case of a trade, profession or business which was commenced on or after the 1st April 1974, the Commissioner may, if he considers it necessary, make a computation under subsection (1) in respect of a basis period which exceeds twelve months.
(3) For the purposes of this Part, where in the case of a trade, profession or business it is necessary in order to arrive at the assessable profits or the losses for any year of assessment to divide or appar- tion to specific periods the profits and losses for any period for which accounts have been made up, or to
Adjust- ment of assessable profits.
aggregate any such profits or losses or any appor- tioned parts thereof, it shall be lawful to make such division and apportionment or aggregation, and any such apportionment shall be made in proportion to the number of days or months in the respective periods unless the Commissioner, having regard to any special circumstances, otherwise directs.
18F. (1) The amount of assessable profits 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 on that person under Part VI and decreased by the allowances made to that person under Part VI for that year of assessment to the extent to which the relevant assets are used in the production of the assessable profits.
(2) Where in any year of assessment the amount of the allowances made under Part VI to any person chargeable to tax under this Part exceeds the total amount of that person's assessable profits, as in- creased by any balancing charge, the amount of such excess shall, for the purposes of section 190, be deemed to be a loss of that person for that year of asscasment.
(3) This section shall apply to the year of assess- ment commencing on the 1st April 1975 and to subsequent years of assessment.”.
13.
Section 19 of the principal Ordinance is amended—
(a)
in subsection (1) by inserting, after "any year of assess- 19. ment", the following-
"up to and including the year of assessment com- mencing on the 1st April 1974"; and
(b) by deleting subsection (2) and substituting the follow-
ing
"(2) Where the amount of loss which may set off under subsection (1) is such that it cannot be wholly set off against the assessable profits of a person chargeable to tax under this Part for the year of assessment in which the loss occurred, the amount not so set off shall be carried forward and shall be set off against what would otherwise have been assessable profits of that person for the future years of assessment in succession:
Amendment of section
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