310075-1941-Supplementary-Draft-Bill--War-Revenue — Page 11

Liability of certain non-resident persons.

Profits of

certain busi- computed on a percentage

nesses to be

of the turnover.

Assessment of partner- ships.

124

(5) Where a person ceases to carry on a trade, profes- sion or business, the assessable profits therefrom as regards the year of assessment in which the cessation occurs shall be the amount of the profits of the period beginning on the first day of April in that year and ending on the date of cessation.

(6) Notwithstanding the provisions of section 55 a claim made under this section to an adjustment of any assessment by reference to the profits for any period other than the year preceding the year of assessment shall be entertained if it is made within the period of twelve months next succeeding the year of assessment. A claim so made shall be regarded as an appeal for the purposes of Chapter VIII.

(7) Where in the case of any trade, profession or business it is necessary in order to arrive at the profits or losses of any year of assessment or other period to divide and apportion to specific periods the profits and losses for any period for which accounts have been made up, or to aggregate any such profits or losses or any apportioned parts thereof, it shall be lawful to make such a division and appor- tionment or aggregation, and any apportionment under this section shall be made in proportion to the number of days in the respective period.

21. (1) For the purposes of this section-

(a) a person is closely connected with another person where the Commissioner in his discretion considers that such persons are substantially identical or that the ultimate con- trolling interest of each is owned or deemed under this section to be owned by the same person or persons;

(b) the controlling interest of a company shall be deemed to be owned by the beneficial owners of its shares, whether held directly or through nominees, and shares in one company held by or on behalf of another company shall be deemed to be held by the shareholders of the last-mentioned company.

(2) Where a non-resident person carried on business with a resident person with whom he is closely connected and the course of such business is so arranged that it produces to the resident person either no profits or less than the ordinary profits which might be expected to arise, the business done by the non-resident person in pursuance of his connexion with the resident person shall be deemed to be carried on in the Colony, and such non-resident person shall be assessable and chargeable with tax in respect of his profits from such business in the name of the resident person as if the resident person were his agent, and all the provisions of this Ordinance shall apply accordingly.

22. Where the Commissioner in his discretion considers that the true amount of the profits of a non-resident person in respect of a trade, profession or business carried on in the Colony cannot be readily ascertained, such profits may be computed on a fair percentage of the turnover of that trade or business in the Colony:

Provided that the amount of such percentage shall be subject to appeal in accordance with the provisions of Chapter VIII.

23.-(1) Where a trade, profession or business is carried on by two or more persons jointly, the tax in respect thereof shall be computed and stated jointly in one sum and a joint assessment shall be made in the partnership name.