CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 168

14

Imposition

of Interest Tax

Deduction of tax by person pay- ing interest

Certificate of deduction, etc., by

person pay ing interest

Set off and refund of deduction

tax is paid or payable by the company.

(2) Every such company shall upon payment of a dividend whether tax is deducted therefrom or not furnish each shareholder with a certificate 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.

Provided that this section shall not apply to any divi- dend declared in respect of any period ending prior to the first day of April, 1947.

CHAPTER V.

Interest Tax.

29. Interest Tax shall be charged at the standard rate on the full amount of any sum accruing 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

paid or payable under any mortgage, debenture or bill of sale registered with any public authority or public officer; or

(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 Commissioner;

(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 accruing after the thirty-first day of March, 1947, being interest chargeable with tax under section 29, he shall, notwithstanding any agreement to the contrary whether made before or after the passing of this Ordinance deduct ten per centum from such sum, and every such deduction shall be a debt due from such person to the Government of Hong Kong and shall be recoverable forthwith as such or may be assessed and charged upon such person in addition to any tax otherwise payable by him under this Ordinance. Where any such person fails to make a deduction which he is required to make under this section he shall nevertheless be deemed to have made the deduction.

31. Any person who deducts Interest Tax in accordance with the provisions of section 30 shall, at the request of the recipient, issue to him a Certificate in the prescribed form showing-

(i) the gross amount of the payment;

(ii) the amount of tax deducted;

(iii) the net amount paid or credited; (iv) the period of accrual.

32. (1) Where the profits of any person which are liable to tax under the provisions of sections 15 and 16 include any sum from which a deduction has been made in accordance with section 30, he shall be entitled, on production of a

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