TNAG-1989-FCO40-2822-Hong-Kong-Telecommunications-(Amendment)-Ordinance-1989-(No.-1989 — Page 257

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Provided that in making the deductions set forth in section 16 of the said Ordinance due regard shall be had to the current level of prices and costs, so that any such deduction shall be limited to a sum which in the opinion of the Financial Secretary is reasonable, and so that allowance of any sum by way of depreciation of a capital asset shall be limited to an amount which represents the allowance approved under Part VI of the said Ordinance on what in the opinion of the Financial Secretary is a reasonable price for such asset :

Provided further that in ascertaining the net profit as aforesaid, no deduction shall be made in respect of any sum which may be payable as royalty by the licensee to the Director of Accounting Services.

(3) The licensee shall, during the continuance of this licence, authorize the Financial Secretary and such other persons as that officer may from time to time require for the purpose of ascertaining the net profit to be authorized representatives of the licensee for the purpose of section 4 of the Inland Revenue Ordinance to the intent that the Commissioner of Inland Revenue and any assessor or person appointed to carry out duties under the said Ordinance shall, on demand by the Financial Secretary, disclose all such matters relating to the affairs of the company as the Financial Secretary or such authorized person may require.

(4) In the event of the licensee failing to agree with the assessment of net profit made by the Financial Secretary, he may appeal to the Governor in Council whose decision upon the assessment of the net profit shall be final.

(5) The licensee shall on the first day of each month make a payment on account of the royalty accruing during the current accounting year of the licensee and the amount of each such payment shall be a sum equal to one twelfth of 12 1/2 per cent of the estimated net profit for the current year or such sum as the Financial Secretary may determine. As soon as the net profit for an expired year has been ascertained, a final adjustment shall be made and the Director of Accounting Services shall refund any sum paid on account in excess of the royalty due for that year. If the amounts paid on account by the company are less than the royalty due, the company shall pay to the Director of Accounting Services

the balance thereof.

(6) The licensee shall produce such.books and statements of account (including bank statements) as the Financial Secretary may require for the purpose of ascertaining the net profit of the licensee for any year or of ascertaining whether any deduction which the licensee has made or may be seeking to make from profits is reasonable to such person and at such time and place as that officer may require :