1964_ESTATE_DUTY_ORDINANCE — Page 53

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CAP. 111]

Estate Duty

[1983 Ed.

penalty.

Collection and incidence of

duty:

1940 c. 29, s. 54.

interpretation:

foreign corporations;

31/90510

company has been wound up and dissolved before that date, who was an officer of the company at any time, shall be under the like obligation as respects such of the facts aforesaid as are within his knowledge, unless he knows, or has reasonable cause for believing, that the information in question has already been given to the Commissioner by the company or some other person.

(2) If such company or any such person as aforesaid who is under obligation by virtue of subsection (1) to give any information to the Commissioner makes default in the performance of that obligation, every such defaulter shall be liable to a penalty of $10,000 and shall also be liable to a further penalty equal to 3 times the amount of the estate duty at the rate set out in the applicable Schedule payable upon the whole estate of the deceased.

( Added, I of 1959, s. 10)

43. (1) The following persons shall be accountable for the duty payable on the death of the deceased by virtue of section 35, that is to say--

(a) the company;

(b) any person, other than a bona fide purchaser for full consideration in money or money's worth received by the company for its own use and benefit, who receives, whether directly from the company or otherwise, or disposes of, any assets which the company had, whether as capital or as income, at the death or at any time thereafter;

(c) any person who received any distributed assets of the

company on their distribution:

Provided that a person shall not-

(i) by virtue of paragraph (b), be accountable in respect of any assets for any duty in excess of the value of those assets; or (ii) by virtue of paragraph (c), be accountable in respect of any assets for more than a part of the duty bearing to the whole thereof the same proportion that the value of the distribu- tion of those assets bears to the principal value of the assets of the company passing on the death by virtue of section 35 after making the allowances to be made under section 39.

(2) For the purposes of subsection (1), the expressions "dis- tributed assets" and "assets of the company passing on the death" do not include any distributed assets of the company which the deceased received on their distribution; and a person who, having received any distributed assets of the company, has died before the deceased shall be deemed to have been a person accountable by virtue of paragraph (c) of that subsection.

•Hong Kong

(3) Where a company incorporated outside the Colony is accountable for any duty by virtue of subsection (1) or of this subsection, every person who is a member of that company at the death shall also be accountable for a rateable part of that duty in proportion to the value of his interest in that company.