1964_INLAND_REVENUE_ORDINANCE — Page 48

1989 Ed.]

Inland Revenue

[CAP. 112

47

(c) The reference in paragraph (a) to the time of sale shall be construed as a reference to the time of completion or the time when possession is given, whichever is the earlier.

(4) (a) In this section-

"an approved research institute" means any university, college, institute, association or organization which is approved in writing for the purposes of this section by the Director of Education as an institute, association or organization for undertaking scientific research which is or may prove to be of value to Hong Kong; (Amended 7 of 1986 s. 12) "scientific research" means any activities in the fields of natural

or applied science for the extension of knowledge. (b) An approval for the purposes of paragraph (a) may-

(i) operate as from a date, whether before or after the date of

approval, specified in the instrument of approval; and (ii) be withdrawn at any time.

(5) In this section-

(a) references to expenditure incurred on scientific research do not include any expenditure incurred in the acquisition of rights in, or arising out of, scientific research, but, save as aforesaid and subject to subsection (1)(b), include all expenditure incurred for the prosecution of, or the provision of facilities for the prosecution of, scientific research; and

(b) references to scientific research related to a trade or business or class of trade or business shall be read as including a reference to-

(i) any scientific research which may lead to or facilitate an extension, or an improvement in the technical efficiency, of that trade or business, or, as the case may be, of trades or businesses of that class; and

(ii) any scientific research of a medical nature which is of special relation to the welfare of workers employed in that trade or business or, as the case may be, in trades or businesses of that class.

(6) For the purposes of this section-

(a) expenditure shall not be regarded as incurred by a person in so far as it is, or is to be, met directly or indirectly by the Crown or by any government or public or local authority, whether in Hong Kong or elsewhere, or by any person other than the first-mentioned person; and (Amended 7 of 1986 s. 12) (b) any expenditure of a capital nature incurred on scientific research related to any trade or business by a person about to carry on that trade or business shall be treated as if it had been incurred by