1978-HKRS28-16-26_Part03 — Page 63

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(b) by inserting after subsection (1) the following subsection-

(2) For the purposes of the definition of "financial institution" in subsection (1)

Aprendiment of

3.

pection IS.

Amenditemt af

section 16.

"associated corporation", in relation to a bank or deposit-

taking company, means-

(a) a corporation over which the bank or deposit-taking

Company has contral;

(b) a corporation which has control over the bank or

deposit-taking company; or

(c) a corporation which is under the control of the same person as is the bark or deposit-taking company,

"control". in relation to a corporation, means the power of

a person to secure-

[ │

(a) by means of the holding of shares or the posses- sion of voting power in or in relation to that or any other corporation; or

(b) by virtue of any powers conferred by the article

of association or other document regulating that or any other corporation,

that the affairs of the first-mentioned corporation are conducted in accordance with the wishes of that person".

Section 15 of the principal Ordinance is amended-

(a) in subsection (1)—–—–

(i) by deleting the full stop at the end of paragraph (1) and substituting a semicolon; and

(i) by inserting after paragraph (A) the following paragraph- “() sums, not otherwise chargeable to rax under this Pat. received by or accrued to a financial institution by way of interest which arises through or from the carrying oo by the financial institution of its business in the Colony. potwithstanding that the moneys in respect of which the interest is received or accrues àre made available outside the Colony”; and

(b) by inserting after subsection (2) the following subsection~~-~-

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"(3) Where in the basis period for any year of asset- ment & fipancial institution was not a financial institution for the whole of that period, in that, if the institution in a bank it was not licensed for the whole of that period or if the institution is a deposit-taking company it was not regu tered for the whole of that period, then subsection (10) shall apply only in respect of such part of the basfa period during which the bank or deposit-taking company was licensed or registered, as the case may be.".

Section 16(1) of the principal Ordinance is amended by inserting after paragraph (b) the following paragraph-

"(c) tax of substantially the same nature as tax imposed under this Ordinance, proved to the satisfaction of the Commissioner le have been paid elsewhere, whether by deduction or otherwist. by any financial institution which is managed and controlled bo

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the Colony, during the basis period for the year of assessment in respect of profits chargeable to tax by virtue of section 15(1)(7):

Provided that no deduction shall be made under this para- graph if the financial institution concerned is eligible for relict under Part VIII ja respect of such profits;”.

Passed by the Hong Kong Legislative Council this 16th day of August, 1978.

Pian

Clerk to the Legislative Council.

This printed impression has been carefully compared by me with the bill, and is found by me to be a true and correctly primed copy of the said bit.

Plan

Clerk to the Legislative Council.