TNAG-1490-FCO40-2047-Hong-Kong-Inland-Revenue-(Amendment)-Bill-1986-1986 — Page 17

Enclosure No: 4

A BILL

Το

Amend the Inland Revenue Ordinance.

Enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof.

1. This Ordinance may be cited as the Inland Revenue (Amendment) (No. 2) Ordinance 1986 and shall apply in relation to the year of assessment commencing on 1 April 1986 and subsequent years of assessment.

2.

Section 15 of the principal Ordinance is amended—

(a) in subsection (1)

(i) by deleting paragraphs (ƒ) and (g) and substituting the following—

"(f) sums received by or accrued to a corporation carrying on a trade, profession or business in Hong Kong by way of interest derived from Hong Kong;

(g) sums received by or accrued to a person, other than a corporation, carrying on a trade, profession or business in Hong Kong by way of interest derived from Hong Kong which interest is in respect of the funds of the trade, profession or business and is exempt from interest tax under Part V:"; and

(ii) by deleting paragraphs (j) and (k) and substituting the following—

"(j) sums received by or accrued to a corporation carrying on a trade, profession or business in Hong Kong by way of gains or profits arising in or derived from Hong Kong from the sale or other disposal or on the redemption on maturity or presentment of a certificate of deposit or bill of exchange;

(k) sums received by or accrued to a person, other than a corporation, carrying on a trade, profession or business in Hong Kong by way of gains or profits arising in or derived from Hong Kong from the sale or other disposal or on the redemption on maturity or presentment of a certificate of deposit or bill of exchange where such gains or profits are in respect of the funds of the trade, profession or business and are exempt from interest tax under Part V; and

(1) sums, not otherwise chargeable to tax under this Part, received by or accrued to a financial institution by way of gains or profits arising through or from the carrying on by the financial institution of its business in Hong Kong from the sale or other disposal or on the redemption on maturity or presentment of a certificate of deposit or bill of exchange notwithstanding that--

(i) the moneys laid out for the acquisition of the certificate or bill were made available outside Hong Kong; or

(ii) the sale, disposal or redemption is effected outside Hong Kong.";

(b) in subsection (3) by inserting after "subsection (1)(i)” the following-

"and (/)"; and

(c) by inserting, after subsection (4), the following subsection-

"(5) The amendments to this section effected by the Inland Revenue (Amendment) (No. 2) Ordinance 1986 shall apply to sums received or accrued by way of interest, gains or profits on or after 1 April 1986, and the provisions of this section in force immediately prior to the coming into force of that Ordinance shall continue to apply to such sums received or accrued prior to 1 April 1986 as if such amendments had not been enacted.".

Short title and application.

Amendment of section 15.

(Cap. 112.)