《LAWS OF HONG KONG INLAND REVEUE ORDINANCE CHAPTER 112》

CHAPTER 112INLAND REVENUE ORDINANCE7

ARRANGEMENTOF SECTIONS7

PART ⅠINTRODUCTORY7

1. Short title7

2. Interpretation7

3. Establishment of Board of Inland Revenue. Power of Governor to appoint a Commissioner and other officers12

3A. Exercise of powers and duties12

4. Official secrecy13

PART ⅡPROPERTY TAX14

S. Charge of property tax14

5A. Ascertainment of assessable value18

5B. Ascertainment of assessable value on or after 1 April 198320

6. [Repealed]20

7. Reduction and refund in case of unoccupied property20

7A. Interpretation21

7B. Claims for refund of property tax21

7C. Bad debts21

PART ⅢSALARIES TAX22

8. Charge of salaries tax22

9. Definition of income from employment24

10. Aggregation of incomes of spouses27

11. [Repealed]27

11A. [Repealed]27

11B. Ascertainment of assessable income27

11C. Office or employment of profit27

11D. Receipt of income27

12. Adjustments to assessable income28

12A. Treatment of lossess29

12B. Ascertainment of net chargeable income30

12BA. Charitable donation30

13. Calculation of salaries tax31

PART ⅣPROFITS TAX32

14. Charge of profits tax32

15. Certain amounts deemed trading receipts32

15A. [Repealed]35

15B. [Repealed]35

15C. Valuation of trading stock on cessation of business35

15D. Post-cessation receipts and payments35

16. Ascertainment of chargeable profits35

16A. Special payment under an approved retirement scheme allowable as a deduction37

16B. Expenditure on scientific research38

16C. Payments for technical education40

16D. Approved charitable donations40

16E. Purchase and sale of patent rights, etc41

17. Deductions not allowed41

18. Basis for computing profits42

18A. Assessable profits for the year of assessment 1974 544

18B. Basis for computing assessable profit for years of assessment commencing on 1 April 197545

18C. Commencement of source of profits in years of assessment commencing on or after 1 April 197445

18D. Cessation of source of profits in years of assessment commencing on 1 April 197545

18E. Change of accounting date and apportionments48

18F. Adjustment of assessable profits49

19. Treatment of losses50

19A. Computation of losses50

19B. Approved charitable donations51

19C. Treatment of losses after 1 April 197551

19D. Computation of losses after 1 April 197553

19E. Adjustment of losses54

20. Liability of certain non-resident persons54

20A. Persons chargeable on behalf of a non-resident54

21. Assessable profits of certain businesses to be computed on a percentage of the turnover55

21A. Computation of assessable profits from cinematograph films, patents, trade-marks, etc55

22. Assessment of partnerships55

22A. Ascertainment of share of partnership profits or losses56

23. Ascertainment of assessable profits of life insurance corporations57

23A. Ascertainment of assessable profits of insurance corporations other than life insurance corporations60

23AA. Mutual insurance corporations61

23B. Ascertainment of the assessable profits of a resident ship-owner61

23C. Ascertainment of the assessable profits of a non-resident ship-owner62

24. Clubs, trade associations, etc64

25. Deduction of property tax from profits tax64

26. Exclusion of certain dividends and profits from the assessable profits of other persons65

26A. Exclusion of certain profits from tax65

27. [Repealed]66

PART ⅤI NTERE ST TAX66

28. Charge of interest tax66

28A. Rate of interest tax68

29. Deduction and payment of interest tax68

29A. Interest payable to exempted persons69

30. Failure to deduct interest tax69

31. [Repealed]70

32. Reimbursement by recipient of gross interest70

33. Recovery of tax by direct assessment70

PART ⅥDEPRECIATION, ETC.70

34. Initial and annual allowances. industrial buildings and structures70

35. Balancing allowances and charges. industrial buildings and structures72

35A. Special provisions on termination of leasehold interest72

35B. Buildings and structures bought unused73

36. Rebuilding allowance for a commercial building or structure74

36A. Application of provisions to machinery or plant74

37. Initial and annual allowances, machinery or plant74

37A. Initial and annual allowances in respect of machinery and plant acquired under hire purchase agreement76

38. Balancing allowances and charges, machinery or plant77

38A. Determination of cost of individual assets sold together for one price78

38B. Commissioner's power to determine the true value of an asset on sale79

38C. Special provision as to allowances on a change in partnership79

39. Replacement of machinery or plant79

39A. Reduction of allowances not to affect calculation of subsequent allowances80

39B. Initial and annual allowances on machinery or plant under the pooling system80

39C. Pooling system when not to apply82

39D. Balancing allowances and charges under the pooling system83

40. Interpretation84

40A. Initial allowances in years of assessment 1974 75 to 1975 7687

PART ⅦPERSONAL ASSESSMENT88

40B. Interpretation88

41. Election for personal assessment88

42. Calculation of total income89

42A. Husband and wife91

42B. Allowances91

43. Rates of charge95

43A. Interpretation96

PART ⅧDOUBLE TAXATION RELIEF97

44. [Repealed]97

45. Relief in respect of Commonwealth income tax97

46. Official secrecy98

47-48. [Repealed]98

49. Double taxation arrangements99

50. Tax credits99

PART ⅨRETURNS, ETC.101

51. Returns and information to be furnished101

51A. Power to require statement of assets and liabilities etc104

5lB. Power to issue search warrant105

51C. Business records to be kept107

51D. Rent records to be kept107

52. Information to be furnished by officials and employers108

53. Who may act for incapacitated or non-resident persons109

54. Liability of executor of deceased taxpayer109

55. [Repealed]109

56. Precedent partner to act on behalf of partnership109

56A. Joint owners and co-owners110

57. Principal officer to act on behalf of a corporation or body of persons110

58. Signature and service of notices110

58A. Election by spouses to be separately charged111

PART ⅩASSESSMENTS112

59. Assessor to make assessments112

59A. Provisional assessments14

60. Additional assessments14

61. Certain transactions and dispositions to be disregarded15

62. Notice to be issued by Commissioner15

63. Validity of assessments, etc15

63A. Appointment of agent in the United Kingdom15

PART ⅩAPROVISIONAL SALARIES TAX116

63B. Liability for provisional salaries tax116

63C. Amount of provisional salaries tax116

63D. Demands for provisional salaries tax118

63E. Holding over of payment of provisional salaries tax118

63F. Provisional salaries tax to be applied against salaries tax120

PART ⅩBPROVISIONAL PROFITS TAX120

63G. Liability for provisional profits tax120

63H. Amount of provisional profits tax120

631. Demands for provisional profits tax122

63J. Holding over of payment of provisional profits tax122

63K. Provisional profits tax to be applied against profits tax123

PART ⅩCPROVISIONAL PROPERTY TAX123

63L. Liability for provisional property tax123

63M. Amount of provisional property tax123

63N. Demands for provisional property tax124

63O. Holding over of payment of provisional property tax124

63P. Provisional property tax to be applied against property tax125

PART ⅪOBJECTIONS AND APPEALS126

64. Objections126

65. Constitution of the Board of Review128

66. Right of appeal to the Board of Review128

67. Transfer of appeals under section 66 for hearing and determination by High Court instead of Board of Review129

68. Hearing and disposal of appeals to the Board of Review131

69. Appeals to the High Court133

69A. Right to appeal directly to Court of Appeal against decision of Board of Review133

70. Assessments or amended assessments to be final134

70A. Powers of assessor to correct errors134

70B. Husband and wife135

PART ⅫPAYMENT AND RECOVERY OF TAX135

71. Provisions regarding payment of tax135

72. Tax to include fines, etc136

73-74. [Repealed]136

75. Tax recoverable as a civil debt through the District Court136

75A. Recovery of tax from wife137

76. Recovery of tax from a debtor of the taxpayer137

77. Recovery of tax from persons leaving the Colony138

77A. Refusal of clearance to ships and aircraft where tax is in default138

78. [Repealed]139

PART ⅩⅢREPAYMENT139

79. Tax paid in excess to be refunded139

PART ⅩⅣPENALTIES AND OFFENCES140

80. Penalties for failure to make returns, making incorrect returns, etc140

80A. Penalty for failure to make deduction of interest tax, etc141

81. Breach of secrecy and other matters to be offences142

82. Penal provisions relating to fraud, etc142

82A. Additional tax in certain cases143

82B. Appeals against assessment to additional tax to Board of Review144

83. Tax payable notwithstanding proceedings145

84. Prosecutions, sanction of Commissioner145

PART ⅩⅤGENERAL145

85. Power to make rules145

86. Board of Inland Revenue to specify forms146

87. General power of Governor in Council to exempt146

87A. Approval of retirement schemes146

88. Exemption of charitable bodies146

First Schedule.Standard Rate146

Second Schedule.Rates147

Third Schedule.Public Utility Companies148

Fourth Schedule.Percentage reduction specified for the purposes of s. 42B(1)149