1964_INLAND_REVENUE_ORDINANCE — Page 46

1989 Ed.]

Inland Revenue

[CAP. 112

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(4) The Commissioner may for the purposes of subsection (2) determine that a person shall not be recognized as an overseas financial institution if he is of the opinion that that person's banking or deposit-taking business is not adequately supervised by a supervisory authority. (Added 36 of 1984 s. 4)

(5) The amendments to this section effected by the Inland Revenue (Amendment) Ordinance 1984 (36 of 1984) shall not have the effect of disallowing any deduction under subsection (1)(a) which could lawfully have been made immediately prior to the coming into force of that Ordinance where the deduction is in respect of sums payable prior to 1 April 1984. (Added 36 of 1984 s. 4. Amended 7 of 1986 s. 4)

(6) The Governor in Council may, by notice in the Gazette, amend Schedule 3. (Added 17 of 1989 s. 5)

(Replaced 28 of 1964 s. 7. Amended 35 of 1965 s. 9)

:
16A. Special payment under an approved retirement scheme allowable as a deduction

(1) Where a person carrying on a trade, profession or business in Hong Kong makes a payment which is either (Amended 7 of 1986 s. 12)

(a) a contribution, other than an ordinary annual contribution, to a fund duly established under an approved retirement scheme;

or

(b) a premium, other than an ordinary annual premium, in respect of a contract of insurance under an approved retirement scheme, such payment shall, to the extent that it is made in respect of individuals employed by such person for the purposes of producing profits in respect of which he is chargeable to tax under this Part and that it is not excessive in view of all the relevant circumstances, be deemed to be an expense wholly and exclusively incurred in the production of such profits and shall be allowed as a deduction therefrom in accordance with subsection (2).

(2) For the purpose of making the deduction provided for in subsection (1), one fifth part of the payment shall be deemed to have been expended during the basis period in which the payment was actually made and the remaining 4 parts shall be deemed to have been expended at the rate of one part in the basis period for each of the succeeding 4 years of assessment:

Provided that in no case shall the total amount of the deductions exceed the amount of the payment.

(3) For the avoidance of doubt it is hereby declared that this section is applicable only to payments made in or after the basis period for the year of assessment commencing on 1 April 1955.

(Replaced 49 of 1956 s. 12)

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