94
CAP. 112]
Inland Revenue
[1989 Ed.
(i) the person holding rights as lessee is not a person who is deemed by section 23B to be carrying on a business as the owner of ships in Hong Kong; and
(ii) the whole or a predominant part of the cost of the acquisition or construction of the ship or aircraft or the part thereof was financed directly or indirectly by a non-recourse debt.
(2) Subsection (1)(a) shall not apply where-
(a) the machinery or plant was acquired by the taxpayer on payment from the end-user at not more than the price which the end-user paid to the supplier (not being a supplier who is himself an end-user); and
(b) no initial or annual allowances have at any time prior to the acquisition of the machinery or plant by the taxpayer been made under section 37, 37A or 39B to the end-user in respect of such machinery or plant.
(3) For the purposes of subsection (2) an allowance shall be deemed not to have been made if the end-user, by notice in writing to the Commissioner within 3 months of the date on which the capital expenditure on the provision of machinery or plant giving rise to the allowance is incurred, or within such further time as the Commissioner may, in any particular case, permit, disclaims such allowance.
(4) For the purposes of this section machinery or plant owned or leased by a trustee shall be deemed to be owned or leased both by the trustee and the beneficiary under the trust or, in the case of a discretionary trust, both by the trustee and by such beneficiary as the Commissioner may, in his discretion, determine to be the beneficiary during the relevant basis period.
(5) In this section-
"acquisition" means acquisition by a person as owner and includes holding or hiring under a hire-purchase agreement or, if the hire-purchase agreement is a conditional sale agreement, holding as purchaser;
"arrangement" includes-
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action or course of action or course of conduct;
"associate", in relation to a person holding rights as lessee under any lease of machinery or plant, means----
(a) where the person holding such rights is a natural person-
(i) a relative of the person holding such rights;
(ii) a partner of the person holding such rights and any relative of that partner;
Page 95
Page 96
94
CAP. 112]
Inland Revenue
[1989 Ed.
(i) the person holding rights as lessee is not a person who is deemed by section 23B to be carrying on a business as the owner of ships in Hong Kong; and
(ii) the whole or a predominant part of the cost of the acquisition or construction of the ship or aircraft or the part thereof was financed directly or indirectly by a non-recourse debt.
(2) Subsection (1)(a) shall not apply where-
(a) the machinery or plant was acquired by the taxpayer on payment from the end-user at not more than the price which the end-user paid to the supplier (not being a supplier who is himself an end-user); and
(b) no initial or annual allowances have at any time prior to the acquisition of the machinery or plant by the taxpayer been made under section 37, 37A or 39B to the end-user in respect of such machinery or plant.
(3) For the purposes of subsection (2) an allowance shall be deemed not to have been made if the end-user, by notice in writing to the Commissioner within 3 months of the date on which the capital expenditure on the provision of machinery or plant giving rise to the allowance is incurred, or within such further time as the Commissioner may, in any particular case, permit, disclaims such allowance.
(4) For the purposes of this section machinery or plant owned or leased by a trustee shall be deemed to be owned or leased both by the trustee and the beneficiary under the trust or, in the case of a discretionary trust, both by the trustee and by such beneficiary as the Commissioner may, in his discretion, determine to be the beneficiary during the relevant basis period.
(5) In this section-
"acquisition" means acquisition by a person as owner and includes holding or hiring under a hire-purchase agreement or, if the hire-purchase agreement is a conditional sale agreement, holding as purchaser;
"arrangement" includes-
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action or course of action or course
of conduct;
"associate", in relation to a person holding rights as lessee under any lease of
machinery or plant, means----
(a) where the person holding such rights is a natural person-
(i) a relative of the person holding such rights;
(ii) a partner of the person holding such rights and any relative
of that partner;
Page 95Page 96
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