1964_ESTATE_DUTY_ORDINANCE — Page 47

46

CAP. 111]

Estate Duty

[1983 Ed.

benefits deemed to be surrendered:

exemptons.

Determination

of net profits of company. 1940 c. 29. s. 49.

31/90310

(Cap. 112.3

(Cap. 112.)

(2) The deceased shall be deemed to have made such a surrender as aforesaid if a right which he had to receive any such profit or payment or enjoyment as aforesaid, or if any such power as aforesaid, has been extinguished or suspended by the effect solely or partly of any disposition made by him or with his consent of shares in or debentures of a company or of any other property or right, or of the exercise or the leaving unexercised by him or with his consent of any power or right, or of the extinguishment or suspension by him or with his consent of any power or right, otherwise than in a fiduciary capacity, or if apart from such a disposition or other act or omission he would have become entitled to receive any such profit or payment or enjoyment as aforesaid but by the effect solely or partly thereof he did not become entitled to receive it.

(3) This section shall not apply to a surrender bona fide made before the beginning of the 3 years ending with the death of the deceased, or, if it was made for such purposes as are recognized by the Commissioner as public or charitable, one year before the beginning of the year ending with his death, if the deceased was at all times during those 3 years, or during that year, as the case may be, entirely excluded from receiving, or being entitled to receive, or having any capacity by an exercise of any power exercisable by him or with his consent to receive, any periodical payment by virtue of the surrender or of any associated operations of which the surrender

was one.

( Added, I of 1959, s. 10)

38. (1) Ths profits of the company for any accounting year, or for the period between the end of the last accounting year and the death of the deceased, hereinafter referred to as the assessable profits, shall be determined by ascertaining the profits of the company from all sources, in accordance with the provisions of the Inland Revenue Ordinance relating to the ascertainment of assess- able profits as if that Ordinance applied to profits not arising in or not derived from the Colony, in the same way as it does to profits arising in or derived from the Colony, subject to the modification that such assessable profits shall be computed by reference to the actual profits for that year or period, and not by reference to the profits for any other period:

Provided that-

(a) there shall be excluded from the ascertainment of such assessable profits any profits which were not bona fide acquired in the ordinary course of business nor the produce of income yielding assets; and

(b) in determining such assessable profits no account shall be taken of sections 19, 19C and 26 of the Inland Revenue Ordinance. (Replaced, 7 of 1975, s. 43)

(2) The net profits of the company for the purpose of this Ordinance for any accounting year shall be determined by adding to the assessable profits for that year computed in accordance with

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