1964_INLAND_REVENUE_ORDINANCE — Page 57

56

CAP. 112]

Inland Revenue

[1989 Ed.

(a) subsection (2) does not apply by virtue of the proviso thereto;

and

(b) the assessable profits for the year of assessment commencing on 1 April 1974 have not been computed under section 18A(1) or (2); and

(c) the basis period for the year of assessment commencing on 1 April 1974 ended within the year of assessment commencing on 1 April 1973,

then the assessable profits for the year of assessment commencing on 1 April 1975 shall be computed on the amount of the profits arising in or derived from Hong Kong during the period beginning 1 year after the end of the basis period for the year of assessment commencing on 1 April 1974 and ending on the date of cessation.

(4) Notwithstanding anything in this Ordinance to the contrary, where, in the year of assessment commencing on 1 April 1975, a person ceases to carry on a trade, profession or business in Hong Kong which was commenced by him in Hong Kong in the year of assessment commencing on 1 April 1973—

(a) the assessable profits for the year of assessment commencing on 1 April 1974 shall be recomputed on the basis of the actual profits arising in or derived from Hong Kong during such year; and

(b) the assessable profits for the year of assessment commencing on 1 April 1975 shall be computed on the amount of the profits therefrom arising in or derived from Hong Kong during the period beginning on 1 April 1975 and ending on the date of cessation.

(5) Where a person who commenced to carry on a trade, profession or business in Hong Kong in a year of assessment commencing on or after 1 April 1975-

(a) ceases to carry on such trade, profession or business in the year of assessment following that in which such commencement occurred; and

(b) by virtue of section 18C(2), there has been deemed to be no assessable profits for the year of assessment in which the commencement occurred,

the assessable profits for the year of assessment in which the cessation occurs shall be recomputed on the basis of the actual profits arising in or derived from Hong Kong from the date of the commencement to the date of cessation.

(6) Notwithstanding section 70, where a person ceases to carry on a trade, profession or business in the circumstances described in subsection (4), a claim made by that person for an adjustment of any assessment in accordance with that subsection shall be entertained if it is made in writing within 2 years after the end of the year of assessment commencing on 1 April 1975.

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