TNAG-0351-FCO40-387-Future-of-broadcasting-in-Hong-Kong-1972 — Page 95

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CAP. 52]

Television.

[1964 Ed.

Calculation and payment of

royalty.

41. The following provisions shall apply to the calculation and payment of royalty-

(a) the royalty shall be payable in respect of the gross takings for the accounting year of each licensee on such sliding scale as may be specified in the licence:

Provided that where the licence does not commence on the first day of the accounting year of the licensee, the royalty payable for the period between the commence- ment of the licence and the first day of the accounting year next ensuing and for the period between the last day of the accounting year immediately preceding the termina- tion of the licence and the date of such termination shall be calculated after reducing the amount of the gross takings on each step of the sliding scale in the proportion which the number of days in each such period bears to the number of days in the year in which each such period falls;

(b) the royalty shall be paid in respect of every period of three months (hereinafter referred to as the payment period):

Provided that—

(i) the payment period immediately preceding the beginning of the accounting year of the licensee shall be reduced in such manner that the next payment period shall commence on the first day of the accounting year; and

(ii) the payment period immediately preceding the ter- mination of the licence shall be reduced in such manner that it ends on the date of such termination;

(c) the first payment period shall commence on the day on

which the licence commences;

(d) the royalty shall be paid within one month of the end of

each payment period;

(e) the Financial Secretary may determine the provisional royalty to be paid in respect of the first payment period in which the licensee receives any takings;

(f) subject to paragraph (e) the royalty paid for each payment

period shall be either-

(i) calculated on the gross takings for such payment period after reducing the amount of the gross takings on each step of the sliding scale in the proportion which the number of days in such payment period bears to the number of days in the year; or

(ii) a provisional sum which shall be the sum payable in respect of the previous payment period as adjusted in accordance with paragraph (g);