CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 57

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Ordinance) on the income out of which such dividend is paid, provided

that where tax is not paid or payable by the company on the whole income

out of which the dividend is paid the deduction shall be restricted

to that portion of the dividend which is paid out of income on which

tax is paid or payable by the company.

1

(2) Every such company shall upon payment of a dividend whether

tax is deducted therefrom or not furnish each shareholder with a cert-

ificate setting forth the amount of the dividend paid to that

shareholder and the amount of tax which the company has deducted or is

entitled to deduct in respect of that dividend.

Chapter V

Interest Tax

29.

Interest Tax shall be charged at the standard rate on the

full amount of any sum falling due after the thirty first day of

March, 1947, being interest arising in or accruing in the Colony on

any debenture, mortgage, bill of sale, loan, deposit or advance, and

(a) paid or payable under any mortgage, debenture or bill

of sale registered with any public authority or public officer;

(b) paid or payable by any person carrying on trade, profession

or business in the Colony and allowable as a deduction in ascertaining

the profits of such trade, profession or business in accordance with

section 17:

Provided that there shall be exempt from Interest Tax:

(a) any interest paid or payable by or to a banker approved

by the Comisɛíomer.

(b) any interest paid or payable to a Corporation carrying on

trade or business in the Colony.

30.

Where any person in the Colony pays or credits to any other

person any sum falling due after the thirty-first day of March, 1947

being interest chargeable with tax under section X, be shall,

notwithstanding any agreement to the contrary whether made before or

after the passing of this Ordinance døduct fourteen per centum from

such sum, and every such deduction shall be debt due from such

person to the Government of Hong Kong and shall be recoverable forth-

with as such or may be assessed and charged upon such person ám

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