1964_INLAND_REVENUE_ORDINANCE — Page 129

128

CAP. 112]

Inland Revenue

[1989 Ed.

(a) accept the return and make an assessment accordingly; or (b) if he does not accept the return, estimate the sum in respect of which such person is chargeable to tax and make an assessment accordingly; or (Amended 49 of 1956 s. 43)

(c) in relation to the years of assessment up to and including the year of assessment commencing on 1 April 1974, if he accepts the return as substantially correct but considers it necessary to make further inquiries on any matter, make immediately a provisional assessment in the amount of the return. (Added 2 of 1971 s. 37. Amended 7 of 1975 s. 35)

(3) Where a person has not furnished a return and the assessor is of the opinion that such person is chargeable with tax, he may estimate the sum in respect of which such person is chargeable to tax and make an assessment accordingly, but such assessment shall not affect the liability of such person to a penalty by reason of his failure or neglect to deliver a return. (Amended 49 of 1956 s. 43)

(4) In the case of profits from a trade or business, if accounts of such trade or business have not been kept in a satisfactory form, the assessor may assess the profits or income of such trade or business on the basis of the usual rate of net profit on the turnover of such trade or business, and the Board of Inland Revenue may prescribe the amounts of such usual rates of profits in particular classes of trade or business.

59A. Provisional assessments

(1) A provisional assessment under section 59(2)(c) shall be a valid assessment for all purposes except that section 64(1) shall not apply unless the provisional assessment is confirmed under section 62(2).

(2) Where it appears to an assessor that a provisional assessment which has not been confirmed under section 62(2) should be increased or reduced for any year of assessment, the assessor may, in place of such provisional assessment, within the year of assessment or within 6 years after the expiration thereof, assess the person assessed at the amount at which according to his judgment such person ought to have been assessed:

Provided that where the under-assessment of any person in a provisional assessment for any year of assessment is due to fraud or wilful evasion, the assessment under this subsection may be made at any time within 10 years after the expiration of that year of assessment.

(Added 2 of 1971 s. 38)

60. Additional assessments

(1) Where it appears to an assessor that for any year of assessment any person chargeable with tax has not been assessed or has been assessed at less than the amount which ought to have been charged, the assessor may, within the year of assessment or within 6 years after the expiration thereof, assess such person at the amount at which according to his judgment such person ought to have been assessed: (Amended 49 of 1956 s. 44)