1964_ESTATE_DUTY_ORDINANCE — Page 48

1983 Ed.]

Estate Duty

[CAP. 111

47

subsection (1) the amount of any interest on debentures in the company deduction for which has already been made under the Inland Revenue Ordinance in assessing the assessable profits of the company.

(3) The provisions of subsection (1) shall, for a like purpose and with any necessary adaptations, apply to the determination of any loss sustained by a company, as it applies to the determination of the assessable profits of a company.

( Added, I of 1959, s. 10)

39. (1) In determining the value of the estate for the purpose of estate duty the provisions of section 13(1) as to making allowance for debts and incumbrances shall not have effect as respects any debt or incumbrance to which assets of the company passing on the death by virtue of section 35 were liable, but the Commissioner shall make an allowance from the principal value of those assets for all liabilities of the company (computed as regards liabilities which have not matured at the date of death, by reference to the value thereof, at that date, and, as regards contingent liabilities, by reference to such estimation as appears to the Commissioner to be reasonable) other than

(a) liabilities in respect of shares in or debentures of the

company, and

(b) liabilities incurred otherwise than for the purposes of the

business of the company wholly and exclusively.

(2) In estimating for the purpose of subsection (1), the princi- pal value of the assets deemed to pass on the death by virtue of section 35, the Commissioner shall fix the price thereof on the basis of a sale of the business of the company as a going concern, and the proportion of that value upon which estate duty is payable by virtue of section 5 as modified by section 10(b), shall be ascertained by comparing-

(a) the aggregate value at the date of death of the deceased of those items of property which together form the assets of the company other than those situate at that date outside the Colony, with tlong kong

(b) the aggregate value at that date of those items of property wheresoever situate, which together form the assets of the company.

(3) Where the assets passing on the death by virtue of section 35 include any distributed assets, if partial consideration, other than the extinguishment, or an alteration of rights attaching to shares in or debentures of a company to which that section applies, was given for the distribution in money or money's worth received by the company for its own use and benefit. a further allowance shall be made, in addition to the allowances specified in subsection (1), of an amount equal to the value of the consideration given.

(Cap. 113.)

1944, c. 23, s. 37

Allowances in the valuation of assets: 1940 c. 29, s. 50x01).

basis of valuation;

1940 c. 29, s. 50(2).

31/90×10

allowance for partial consideration for distributed assets: 1940 c 29. s. 5003).