42
CAP. 111]
Estate Duty
[1983 Ed.
1936 c. 34. s. 19(1).
1936 c. 34, s. 20(3).
1936 c. 34, s. 19(2).
(Cap. 38.)
1922 c. 17. s. 21(6).
1922 c. 17, s. 21(6).
(b) if any 5 or fewer persons together possess, or are entitled to acquire, either the greater part of the issued share capital of the company, or such part of that capital as would, if the whole of the profits of the company had been in fact distributed to the members, entitle them to receive the greater part of the amount so distributed; or
(c) if in any relevant accounting year, more than half of the profits of the company have been, or could have been, apportioned among not more than 5 persons; or
(d) if any 5 or fewer persons would, if the company were wound up, be entitled as members or loan creditors of the company to receive more than half of the assets of the company which would be available for distribution to members and loan creditors.
(3) In determining for the purposes of subsection (2) whether a company is deemed to be under the control of not more than 5 persons, persons in any one of the following classes shall be treated as a single person with other persons of that same class, namely-
(a) persons who are relatives of one another;
(b) nominees of another person together with that person;
(c) persons in a partnership within the meaning of section 3 of the Partnership Ordinance; and
(d) persons interested in any shares or obligations of the company which are subject to any trust or are part of the estate of a deceased person.
(4) For the purposes of subsection (3), a person shall be deemed to be the nominee of another person if, whether directly or indirectly, he possesses on behalf of that other person, or may be required to exercise on the direction of or on behalf of that other person, any right or power which is material in determining whether a company is, or is not to be deemed to have been under the control of not more than 5 persons.
(5) A company shall be deemed to be-
(a) "a subsidiary company" if, by reason of the beneficial ownership of shares therein, the control of the company is in the hands of a company not being a company to which the provisions of this section apply, or of 2 or more companies none of which is a company to which the said provisions apply; and
(b) "a company in which the public were substantially interested" if shares of the company (not being shares entitled to a fixed rate of dividend, whether with or without a further right to participate in profits) carrying not less than 25 per cent of the voting power were allotted unconditionally to, or acquired unconditionally by, and were at the end of the year or other period for which the
42
CAP. 111]
Estate Duty
[1983 Ed.
1936 c. 34. s. 19chte.
1936 c. 34, s. 2013).
1936 c. 34, s. 19(2).
(Cap. 38.)
1922 c. 17. s. 21(6).
1922 c. 17, s. 216).
(b) if any 5 or fewer persons together possess, or are entitled to acquire, either the greater part of the issued share capital of the company, or such part of that capital as would, if the whole of the profits of the company had been in fact distributed to the members, entitle them to receive the greater part of the amount so distributed; or
(c) if in any relevant accounting year, more than half of the profits of the company have been, or could have been, apportioned among not more than 5 persons; or
(d) if any 5 or fewer persons would, if the company were wound up, be entitled as members or loan creditors of the company to receive more than half of the assets of the company which would be available for distribution to members and loan creditors.
(3) In determining for the purposes of subsection (2) whether a company is deemed to be under the control of not more than 5 persons, persons in any one of the following classes shall be treated as a single person with other persons of that same class, namely-
(a) persons who are relatives of one another;
(b) nominees of another person together with that person; (c) persons in a partnership within the meaning of section 3 of
the Partnership Ordinance; and
(d) persons interested in any shares or obligations of the company which are subject to any trust or are part of the estate of a deceased person.
(4) For the purposes of subsection (3), a person shall be deemed to be the nominee of another person if, whether directly or indirectly, he possesses on behalf of that other person, or may be required to exercise on the direction of or on behalf of that other person, any right or power which is material in determining whether a company is, or is not to be deemed to have been under the control of not more than 5 persons.
(5) A company shall be deemed to be-
(a)
"a subsidiary company" if, by reason of the beneficial ownership of shares therein, the control of the company is in the hands of a company not being a company to which the provisions of this section apply, or of 2 or more companies none of which is a company to which the said provisions apply; and
(b) "a company in which the public were substantially in- terested" if shares of the company (not being shares entitled to a fixed rate of dividend, whether with or without a further right to participate in profits) carrying not less than 25 per cent of the voting power were allotted unconditionally to, or acquired unconditionally by, and were at the end of the year or other period for which the
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