1964_INLAND_REVENUE_ORDINANCE — Page 98

1989 Ed.]

Inland Revenue

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(iv) any conjunction of such rights as are referred to in

subparagraphs (i), (ii) and (iii);

(v) rights in respect of a mortgage or other security over the

machinery or plant; or

(vi) rights arising out of any arrangement relating to the financial obligations of the end-user of the machinery or plant towards the taxpayer, being financial obligations in relation to the machinery or plant;

(b) are in the opinion of the Commissioner capable of being limited

as described in paragraph (a), having regard to either or both of the following-

(i) the assets of the taxpayer;

(ii) any arrangement to which the taxpayer is a party; or

(e) where paragraphs (a) and (b) do not apply, are limited by reason that not all of the assets of the taxpayer (not being assets that are security for a debt of the taxpayer other than a debt arising in relation to the financing of the whole or part of the cost of the acquisition of the machinery or plant) would be available for the purpose of the discharge of the whole of the debt so arising (including the payment of interest) in the event of any action or actions by the creditor or creditors against the taxpayer arising out of the debt;

"principal officer" means-

(a) a person employed by a corporation who, either alone or jointly with one or more other persons, is responsible under the immediate authority of the directors for the conduct of the business of the corporation; or

(b)

a person so employed who, under the immediate authority of a director of the body corporate or a person to whom para- graph (a) applies, exercises managerial functions in respect of the body corporate;

"relative" means the spouse, parent, child, brother or sister of the relevant person, and, in deducing such a relationship, an adopted child shall be deemed to be a child both of the natural parents and the adopting parent and a step child to be the child of both the natural parents and of any step parent;

"used" includes held for use.

(Added 7 of 1986 s. 7)

40. Interpretation

(1) In this Part-

"basis period" has the meaning assigned to it by section 2 except that-