TNAG-1989-FCO40-2822-Hong-Kong-Telecommunications-(Amendment)-Ordinance-1989-(No.-1989 — Page 16

A418

Ord. No. 43/89

INLAND REVENUE (AMENDMENT) (NO. 3)

"(4) Notwithstanding anything contained in this section, a charitable donation shall not be taken into account in ascertaining the net chargeable income of more than one person and, where a deduction of the same donation is claimed or allowed in respect of the net chargeable income of more than one person, subsections (2) to (4) of section 33 shall apply with the necessary modifications to such a deduction as they do to a dependent parent allowance or a child allowance; and section 33 shall, where this subsection applies, be construed as if a reference to such an allowance included, in the case of a donation so claimed, a reference to an allowance to which section 33(2) applies and, in the case of a donation so allowed, an allowance to which section 33(3) applies.".

Section substituted

8.

Section 13 is repealed and the following substituted—

"Calculation of salaries tax

13. (1) Subject to subsection (2), salaries tax shall be charged at the rates specified in the Second Schedule on the net chargeable income of a person for each year of assessment ascertained in accordance with this Part.

(2) The amount of salaries tax so charged shall not exceed the amount which would have been chargeable had the standard rate been charged on the whole of— (a) the net assessable income as reduced by approved charitable donations

provided for under section 12BA; or

(b) in the case of a spouse chargeable to salaries tax under section 10(3), the aggregate amount of his or her net assessable income and that of his or her spouse as reduced by approved charitable donations provided for under section 12BA.".

Treatment of losses after 1 April 1975

9.

Section 19C is amended-

(a) in subsections (1)(b) and (2)(b)-----

(i) by adding "or wife" prior to "does not elect";

(ii) by repealing "or is not deemed to have elected to be personally assessed”; (b) by repealing subsection (3)(b) and substituting—

Part V added

"(b) in the case of a husband and wife, not being a wife living apart from her husband, the husband or wife is personally assessed under Part VII,”.

10. The following Part is added after section 26A—

"PART V

ALLOWANCES

Allowances, general provisions

27. (1) This Part prescribes the allowances which shall be granted to persons chargeable to tax under Parts III and VII and the circumstances in which such allowances are grantable.

+

*)

INLAND REVENUE (AMENDMENT) (NO. 3)

Ord. No. 43/89

A419

(2) Every person who claims an allowance under this Part shall make his claim in the specified form and an allowance shall be granted only if the claim contains such particulars and is supported by such proof as the Commissioner may require.

(3) In this Part-

“adopted” means adopted in any manner recognized by the laws of Hong Kong; "allowance" means an allowance granted under this Part;

"child" means any child of a person chargeable to tax or of his or her spouse or former spouse whether or not born in wedlock and includes the adopted or step child of either or both of them;

"person" means a person chargeable to tax under Part III or, as the case may be,

Part VII;

"prescribed amount" and "prescribed percentage" mean the amount and percentage specified in the second column of the Fourth Schedule in relation to the provisions of this Part specified in the first column of that Schedule.

Basic allowance

28. (1) The following allowance ("basic allowance") shall be granted in any year of assessment-

(a) an allowance of the prescribed amount;

(b) an additional allowance of the prescribed amount, but this allowance shall

be reduced by the prescribed percentage of the sum, if any, by which—

(i) in the case of a person who is chargeable to salaries tax under Part III, the net assessable income of that person, as reduced under section 12BA by approved charitable donations, exceeds the prescribed amount; and

(ii) in the case of a person who has elected to be assessed under Part VII, the total income of that person, as reduced under section 42(2) and (5), exceeds the prescribed amount referred to in subparagraph (i).

(2) No person may be granted—

(a) both a basic allowance and a married person's allowance; or

(b) a basic allowance where his or her spouse has claimed a married person's

allowance.

Married person's allowance

29. (1) An allowance ("married person's allowance") shall be granted under this section in any year of assessment if a person is, at any time during that year, married and-

(a) the spouse of that person did not have assessable income in the year of

assessment; or

(b) that person and his or her spouse have made, in relation to the year of

assessment, an election under section 10(2); or

(c) that person has elected to be assessed under Part VII.

(2) Where an election has been made under section 10(2) a married person's allowance shall be granted to the person chargeable to salaries tax under sec- tion 10(3).