1964_ESTATE_DUTY_ORDINANCE — Page 6

1983 Ed.]

Estate Duty

[CAP. 111

5

whether those operations are effected by the same person or by different persons, whether they are connected otherwise than as aforesaid or not, and whether they are contemporaneous or any of them precedes or follows any other;

‘average rate” means, in relation to a company, a rate per cent per annum, the percentage being ascertained by-

(a) computing the aggregate amount of the net profits of the company for the relevant accounting years, a deduction being made, where the company sustained a loss in any of those years, of the amount of the loss;

(b) dividing that amount by the number of those years; and (c) comparing the result with the principal value of the assets of the company passing on the death of the deceased by virtue of section 35 after making the allowances to be made under section 39;

"Commissioner" means such person as the Governor may appoint as Commissioner for the purpose of this Ordinance; (Amended, 21 of 1972, s. 2)

"company" includes any body corporate, wheresoever incorporated; "debenture" means, in relation to a company, any obligation of the company in respect of any loan capital issued by the company otherwise than as consideration for a loan made to it in the ordinary course of banking business, or in respect of any debt incurred by the company-

(a) for any money borrowed by the company, otherwise than by way of temporary loan made in the ordinary course of a banking business;

(b) for any transfer of capital assets made to the company by any person, unless the obligation is one resulting from a dealing with a person who transferred such assets to the company in, and on terms consistent with, the ordinary course of a business carried on by him;

(c) without consideration, or for consideration the value of which to the company at the time when the debt was incurred was substantially less than the value at that time of the debt, including any premium thereon; or

(d) where the debt was of such a nature that it would in the ordinary course of business and apart from some special arrangement, have carried interest, if the debt did not carry interest or carried interest at a rate which was either unreasonably high or unreasonably low;

"disposition" includes any trust, covenant, agreement or arrangement, whether made by a single operation or by associated operations, and also, in relation to shares in or debentures of a company, the extinguishment or any alteration of rights attaching thereto, whether effected by a single operation or by associated operations;