1964_TELEVISION_ORDINANCE — Page 43

42

CAP. 52]

Television

[1989 Ed.

:

41. Royalty

(1) A licensee shall, as regards each of its accounting years, pay to the Government a royalty determined by reference to the amounts which, having regard to this section, are the appropriate amounts for fees or other charges in respect of advertising, whether in the form of display or other advertisements, advertising magazine programmes, sponsored or promoted programmes or in any other form of broadcast by the licensee, and as regards a particular such year the amount of such royalty shall be determined in accordance with the following rates—

(a) where such amounts for that year do not exceed $100 million, 1%

of that $100 million;

(b) where such amounts for that year exceed $100 million-

(i) as regards the first $100 million of those amounts, 1% of

those amounts;

(ii) as regards the second $100 million of those amounts (or in case those amounts are less than $200 million but are not less than $100 million, as regards the excess over $100 million), 5% of that $100 million or excess;

(iii) as regards the third $100 million of those amounts (or in case those amounts are less than $300 million but are not less than $200 million, as regards the excess over $200 million), 10% of that $100 million or excess;

(iv) as regards the fourth $100 million of those amounts (or in case those amounts are less than $400 million but are not less than $300 million, as regards the excess over $300 million), 15% of that $100 million or excess;

(v) as regards the fifth $100 million of those amounts (or in case those amounts are less than $500 million but are not less than $400 million, as regards the excess over $400 million), 20% of that $100 million or excess;

(vi) as regards those amounts in so far as they exceed $500

million, 25% of the excess:

Provided that the amount of the royalty payable under this section as regards any such accounting year shall not exceed an amount which is equal to 12% of such appropriate amounts for

that year.

(2) The appropriate amount referred to in subsection (1) shall be the amount which in the circumstances of a particular case would reasonably be expected to be agreed to between the parties concerned were they negotiating in the open market and at arm's length.

(3) (a) The royalty created by this section shall be payable quarterly in

accordance with paragraph (b).