1964_INLAND_REVENUE_ORDINANCE — Page 43

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CAP. 112]

Inland Revenue

[1989 Ed.

which they arose, and debts in respect of money lent, in the ordinary course of the business of the lending of money within Hong Kong, by a person who carries on that business; (Amended 7 of 1986 s. 12)

(ii) all sums recovered during the said basis period on account of amounts previously allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as part of the profits of the trade, business or profession for that basis period;

(e) expenditure incurred in the repair of any premises, plant, machinery, implement, utensil or article employed in the production of such profits;

(f) expenditure incurred in the replacement of any implement, utensil or article employed in the production of such profits:

Provided that no allowances have been or shall be made under the provisions of Part VI in respect of such implement, utensil or article;

(g) notwithstanding section 17, a sum expended for the registration of a trade mark, design or patent used in the trade, profession or business which produces such profits; (Replaced 26 of 1969 s. 14)

(ga) the payments and expenditure specified in sections 16B and 16C, as provided therein;

(h) such other deductions as may be prescribed by any rule made under this Ordinance.

(2) The conditions referred to in subsection (1)(a) are that—

(a) the money has been borrowed by a financial institution;

(b) the money has been borrowed by a public utility company specified in Schedule 3 at a rate of interest not exceeding the rate specified by the Financial Secretary by notice in the Gazette; (Amended 17 of 1989 s. 5)

(c) the money has been borrowed from a person other than a financial institution or an overseas financial institution and the sums payable by way of interest are chargeable to tax under this Ordinance;

(d) the money has been borrowed from a financial institution or an overseas financial institution and the repayment of the principal or interest is not secured or guaranteed either in whole or in part, and whether directly or indirectly, by any instrument executed or any undertaking given—

(i) by or on behalf of the borrower or any partner of the borrower;

(ii) where the borrower is a body of persons, whether corporate or unincorporate, by or on behalf of any shareholders,

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