CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 52

52

If the

first be set off against the other income of that member,

amount of the loss falling on a member cannot be wholly set-off

against his other income for the year of assessment following the

year in which it was incurred the amount of the loss not so set-off

shall be set-off against what would otherwise have been his charge-

able income for the next five years in succession; provided that th

amount of such loss allowed to be set-off in computing the chargeable

income for any year anall not be set-off in computing the chargeable

income of any other year and provided also that in no case shall such

set-off be allowed to an extent which would reduce the tax payable

for any year of assesment (other than the year of assessment next

following that in which the loss was incurred) to less than one

half of the amount which would have been payable had the set-off

not been allowed.

21.(1) For the purposes of this section -

(a) a person is closely connected with another person where

the Comissioner in his descretion considers that such persons are

substantially identical or that the ultimate controlling interest of

each is owned or deemed under this section to be owned by the same

person or personaj

(b) the controlling interest of a company shall be deemed

to be owned by the beneficial owners of its shares, whether held

directly or through nominees, and shares in one company held by or on

behalf of another company shall be deemed to be held by the share-

holders of the last-mentioned company.

(2) Where a non-resident person carried on cusiness with

resident person with whom he is closely connected and the course of

such business is so arranged that it produces to the resident person

either no profits or less than the ordinary profits which might be

expected to arise, the business done by the non-resident person in

pursuance of his connexion with the resident parson shall be deemed

to be carried on in the Colony, and such non-resident person shall be

assessable and chargeable with tax in respect of his profits from

such business in the name of the resident person as if the resident

person were his agent, and all the provisions of this Ordinance shall

apply accordingly.

/22.