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INLAND REVENUE ORDINANCE

INLAND REVENUE ORDINANCE (Replaced 2 of 1971 s. 35) 58. Signature and service of notices (1) Every notice to be given by the Commissioner, an assistant commissioner, an assessor or an inspector under this Ordinance shall bear the name of the Commissioner, assistant commissioner, assessor or inspector, as the case may be, and every such notice shall be valid if the name of the Commissioner, assistant commissioner, assessor or inspector is duly printed or signed thereon. (Replaced 26 of 1969 s. 31) (2) Every notice given by virtue of this Ordinance may be served on a person either personally or by being delivered at, or sent by post to, his last known postal address, place of abode, business or employment or any place at which he is, or was during the year to which the notice relates, employed or carrying on business or the land or buildings or land and buildings in respect of which he is chargeable to tax under Part II: (Amended 49 of 1956 s. 42; 26 of 1969 s. 31; 8 of 1983 s. 17) Provided that a notice of assessment under section 62 shall be served personally or by being sent by registered post (or in the case of an assessment to property tax under Part II either by registered post or by ordinary post) to any such place as aforesaid. (Replaced 30 of 1950 Schedule) (3) Any notice sent by post shall be deemed to have been served on the day succeeding the day on which it would have been received in the ordinary course by post.

(4) In proving service by post it shall be sufficient to prove that the letter containing the notice was duly addressed and posted.

(5) Every name printed or signed on any notice or signed on any certificate given or issued for the purposes of this Ordinance which purports to be the name of the person authorized to give or issue the same shall be judicially noticed.

(6) If a notice given under this Part requires something to be done within a time stated in the notice, the Commissioner or, in the case of a notice given by an assessor, an assessor may by notice in writing extend the time for complying with the notice. (Added 2 of 1971 s. 36) 58A. (Repealed 43 of 1989 s. 18) PART X ASSESSMENTS 59. Assessor to make assessments (1) Every person who is in the opinion of an assessor chargeable with tax under this Ordinance shall be assessed by him as soon as may be after the expiration of the time limited by the notice requiring him to furnish a return under section 51 (1): Provided that the assessor may assess any person at any time if he is of opinion that such person is about to leave Hong Kong, or that for any other reason it is expedient to do so. (Amended 7 of 1986 s. 12) (1A) Notwithstanding subsection (1), where an assessor is of the opinion that an election by an individual under section 41 for personal assessment on his total income would result in a refund becoming due of the whole of the amount which he might lawfully be assessed for property tax if such amount were paid, the assessor shall not be obliged to proceed to make an assessment in respect of that tax. (Added 26 of 1969 s. 32) (1B) Notwithstanding subsection (1), where an assessor is satisfied that- (a) an individual or his or her spouse, not being a spouse living apart from that individual, carries on (not jointly with another person) a trade, profession or business in Hong Kong and the individual is eligible to elect under section 41 for personal assessment on his total income; and (b) the assessable profits of that individual in respect of his trade, profession or business in Hong Kong for any year of assessment do not exceed the amount specified in the second column of item 1 (c) of the Fourth Schedule; and (Amended 32 of 1981 s. 8; 29 of 1982 s. 13; 28 of 1987 s. 6; 28 of 1988 s. 5; 17 of 1989 s. 15; 30 of 1990 s. 4) (c) the individual, and his or her spouse, not being a spouse living apart from that individual, has no income, property, or profits chargeable to tax under this Ordinance for that year of assessment, other than in respect of such trade, profession or business, the assessor shall not be obliged to proceed to make an assessment of profits tax in respect of such assessable profits. (Added 2 of 1971 s. 37.

Amended 7 of 1975 s. 35; 7 of 1986 s. 12; 43 of 1989 s. 19) (1C) Notwithstanding subsection (1), where an assessor is satisfied that- (a) an individual or his or her spouse, not being a spouse living apart from that individual, carries on a trade, profession or business in Hong Kong, either solely or jointly with another person, and the individual is eligible to elect under section 41 for personal assessment on his total income; and (Amended 7 of 1986 s. 12) (b) the individual, and his or her spouse, not being a spouse living apart from that individual, has no income, property or profits chargeable to tax under this Ordinance for any year of assessment, other than in respect of such trade, profession or business; and (c) the assessable profits of the individual or his or her spouse, not being a spouse living apart from that individual, in respect of such trade, profession or business for such year of assessment, or his or her share of those profits if he or she is a partner in the trade, profession or business, are such that if there were an election for personal assessment under section 41 and after taking into account the allowances that would have to be deducted under Part V, no tax would be charged on either of them, (Replaced 71 of 1983 s. 29) the assessor shall not be obliged to proceed to make an assessment of profits tax in respect of such assessable profits and, if he has made such an assessment, he may notwithstanding section 70, annul the assessment or in case of assessment of a partnership may reduce it insofar as it relates to the share of profits of such individual or his or her spouse. (Added 2 of 1971 s. 37. Amended 71 of 1983 s. 29; 43 of 1989 s. 19; 19 of 1991 s.

5) (2) Where a person has furnished a return in accordance with the provisions of section 51 the assessor may either- (Amended 49 of 1956 s.

43) (a) accept the return and make an assessment accordingly; or (b) if he does not accept the return, estimate the sum in respect of which such person is chargeable to tax and make an assessment accordingly; or (Amended 49 of 1956 s. 43) (c) in relation to the years of assessment up to and including the year of assessment commencing on 1 April 1974, if he accepts the return as substantially correct but considers it necessary to make further inquiries on any matter, make immediately a provisional assessment in the amount of the return. (Added 2 of 1971 s. 37. Amended 7 of 1975 s. 35) (3) Where a person has not furnished a return and the assessor is of the opinion that such person is chargeable with tax, he may estimate the sum in respect of which such person is chargeable to tax and make an assessment accordingly, but such assessment shall not affect the liability of such person to a penalty by reason of his failure or neglect to deliver a return. (Amended 49 of 1956 s. 43) (4) In the case of profits from a trade or business, if accounts of such trade or business have not been kept in a satisfactory form, the assessor may assess the profits or income of such trade or business on the basis of the usual rate of net profit on the turnover of such trade or business, and the Board of Inland Revenue may prescribe the amounts of such usual rates of profits in particular classes of trade or business.

59A. Provisional assessments (1) A provisional assessment under section 59 (2) (c) shall be a valid assessment for all purposes except that section 64 (1) shall not apply unless the provisional assessment is confirmed under section 62 (2).

(2) Where it appears to an assessor that a provisional assessment which has not been confirmed under section 62 (2) should be increased or reduced for any year of assessment, the assessor may, in place of such provisional assessment, within the year of assessment or within 6 years after the expiration thereof, assess the person assessed at the amount at which according to his judgement such person ought to have been assessed: Provided that where the under-assessment of any person in a provisional assessment for any year of assessment is due to fraud or wilful evasion, the assessment under this subsection may be made at any time within 10 years after the expiration of that year of assessment. (Added 2 of 1971 s.

38) 60. Additional assessments (1) Where it appears to an assessor that for any year of assessment any person chargeable with tax has not been assessed or has been assessed at less than the proper amount, the assessor may, within the year of assessment or within 6 years after the expiration thereof, assess such person at the amount or additional amount at which according to his judgement such person ought to have been assessed, and the provisions of this Ordinance as to notice of assessment, appeal and other proceedings shall apply to such assessment or additional assessment and to the tax charged thereunder: (Amended 16 of 1951 s. 10; 49 of 1956 s. 44) Provided that- (a) (Repealed 2 of 1971 s. 39) (b) where the non-assessment or under-assessment of any person for any year of assessment is due to fraud or wilful evasion, such assessment or additional assessment may be made at any time within 10 years after the expiration of that year of assessment. (Amended 49 of 1956 s. 44) (2) Where it appears to an assessor that the whole or part of any tax repaid to a person (otherwise than in consequence of an assessment having been determined on objection or appeal) has been repaid by mistake, whether of fact or law, the assessor may, within the year of assessment to which the repayment relates or within 6 years after the expiration thereof, assess such person in the amount of tax so repaid by mistake, and the provisions of this Ordinance as to notice of assessment, objection, appeal and other proceedings shall apply to such assessment and to the tax charged thereunder. (Added 2 of 1971 s. 39) (3) No assessment shall be made under subsection (2) if the repayment was in fact made on the basis of, or in accordance with, the practice generally prevailing at the time when the repayment was made. (Added 2 of 1971 s. 39) 61. Certain transactions and dispositions to be disregarded Where an assessor is of opinion that any transaction which reduces or would reduce the amount of tax payable by any person is artificial or fictitious or that any disposition is not in fact given effect to, he may disregard any such transaction or disposition and the person concerned shall be assessable accordingly.

61A. Transactions designed to avoid liability for tax (1) This section shall apply where any transaction has been entered into or effected after the commencement of the Inland Revenue (Amendment) Ordinance 1986 (7 of 1986) (other than a transaction in pursuance of a legally enforceable obligation incurred prior to such commencement) and that transaction has, or would have had but for this section, the effect of conferring a tax benefit on a person (in this section referred to as "the relevant person"), and, having regard to- (a) the manner in which the transaction was entered into or carried out; (b) the form and substance of the transaction; (c) the result in relation to the operation of this Ordinance that, but for this section, would have been achieved by the transaction; (d) any change in the financial position of the relevant person that has resulted, will result, or may reasonably be expected to result, from the transaction; (e) any change in the financial position of any person who has, or has had, any connection (whether of a business, family or other nature) with the relevant person, being a change that has resulted or may reasonably be expected to result from the transaction; (f) whether the transaction has created rights or obligations which would not normally be created between persons dealing with each other at arm's length under a transaction of the kind in question; and (g) the participation in the transaction of a corporation resident or carrying on business outside Hong Kong, it would be concluded that the person, or one of the persons, who entered into or carried out the transaction, did so for the sole or dominant purpose of enabling the relevant person, either alone or in conjunction with other persons, to obtain a tax benefit.

(2) Where subsection (1) applies, the powers conferred upon an assessor under Part X shall be exercised by an assistant commissioner, and such assistant commissioner shall, without derogation from the powers which he may exercise under that Part, assess the liability to tax of the relevant person- (a) as if the transaction or any part thereof had not been entered into or carried out; or (b) in such other manner as the assistant commissioner considers appropriate to counteract the tax benefit which would otherwise be obtained.

(3) In this section- "tax benefit" means the avoidance or postponement of the liability to pay tax or the reduction in the amount thereof; "transaction" includes a transaction, operation or scheme whether or not such transaction, operation or scheme is enforceable, or intended to be enforceable, by legal proceedings.

(Added 7 of 1986 s. 10) 61B. Utilization of losses to avoid tax Where the Commissioner is satisfied that- (a) any change in the shareholding in any corporation, as a direct or indirect result of which profits have been received by or accrued to that corporation during any year of assessment, has been effected by any person after the commencement of the Inland Revenue (Amendment) Ordinance 1986 (7 of 1986); and (b) the sole or dominant purpose of the change was for the purpose of utilizing any loss or any balance of any loss sustained in a trade, profession or business carried on by the corporation, in order to avoid liability on the part of that corporation or any other person for the payment of any tax or to reduce the amount thereof, the set off of any such loss or balance of loss against any such profits shall be disallowed.

(Added 7 of 1986 s. 10) 62. Notice to be issued by Commissioner (1) The Commissioner shall give a notice of assessment to each person who has been assessed stating the amount assessed, the amount of tax charged, and such due date for payment thereof as may be fixed by the Commissioner.

(Amended 2 of 1971 s. 40) (2) Where the assessment is a provisional assessment made under section 59 (2) the person assessed shall be notified accordingly by the Commissioner, and he shall further be notified in due course by the Commissioner if such provisional assessment is confirmed. The confirmation of a provisional assessment shall not preclude the making of an additional assessment subsequently under section 60.

(3) Where by reason of an amendment of the law it is necessary to vary the amount of tax charged in any notice of assessment the Commissioner may give such notification as may be necessary to the person assessed in that notice of assessment, and any notification so given shall, as regards any particulars of the assessment contained in the notification which have not been included in the notice of assessment, have effect as if the notification were a notice of assessment.

(Amended 35 of 1965 s. 27) 63. Validity of assessments, etc.

No notice, assessment, certificate, or other proceeding purporting to be in accordance with the provisions of this Ordinance shall be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect, or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of this Ordinance, and if the person assessed or intended to be assessed or affected thereby is designated therein according to common intent and understanding.

63A. Appointment of agent in the United Kingdom For the purposes of facilitating the assessment of the income or profits of a person residing in the United Kingdom the Governor may appoint an agent in the United Kingdom who may exercise in respect of any United Kingdom resident who may apply to be dealt with through him all the powers conferred by this Ordinance on an assistant commissioner. The agent appointed under this section shall report to the Commissioner the amount of the assessable income or profits of any such person ascertained in accordance with the provisions of this Ordinance and shall forward to the Commissioner the accounts and computations upon which his assessment is based: Provided that nothing in this section shall affect the right of objection or appeal under Part XI. (Amended 35 of 1965 s. 28) (Added 49 of 1956 s. 45) PART XA PROVISIONAL SALARIES TAX 63B. Liability for provisional salaries tax (1) Every person who is chargeable to salaries tax under Part III in respect of any year of assessment shall be liable to pay provisional salaries tax in respect of that year of assessment in accordance with this Part.

(2) In the case of a husband and wife, where either the husband or wife is assessed to salaries tax under section 10 (3) on the aggregate of their net chargeable incomes in respect of the year of assessment preceding that in respect of which provisional salaries tax is payable- (a) such provisional salaries tax shall be payable on the net chargeable income adjusted as necessary under section 63C (1); and (b) the person who is assessed to salaries tax in respect of that preceding year of assessment shall be solely liable to pay that provisional salaries tax. (Replaced 43 of 1989 s. 20) (Replaced 71 of 1983 s. 30) 63C. Amount of provisional salaries tax [1] (1) Subject to subsections (2) and (3), provisional salaries tax in respect of any year of assessment shall be payable at the rates specified in Schedule 2 for that year of assessment by reference to the amount of the net chargeable income for the preceding year of assessment adjusted, for the purposes of this section, as follows- (a) any loss set off under section 12A in calculating the net assessable income, or net assessable incomes, on which that net chargeable income is based, shall be added; (Amended 71 of 1983 s. 31 (a) (i)) (b) any loss which may be set off under section 12A in the year of assessment shall be set off against that amount: Provided that- (i) in respect of the year of assessment up to and including the year of assessment commencing on 1 April 1984, in no case shall the amount of provisional salaries tax charged on any person under this subsection exceed the amount which would have been chargeable on him had the standard rate for the year of assessment been charged on the whole of his assessable income for the preceding year of assessment as reduced by the outgoings, expenses and allowances provided for in section 12 (1) and any excess set off under section 12A; and (ii) in respect of the year of assessment commencing on 1 April 1985 and subsequent years of assessment, in no case shall the amount of provisional salaries tax charged under this subsection exceed the amount which would have been chargeable had the standard rate been charged on the whole of- (A) the net assessable income for the preceding year of assessment as reduced by approved charitable donations provided for under section 12BA; or (B) in the case of a husband and wife to whom section 63B (2) applies, the aggregate of their net assessable incomes for the preceding year of assessment as reduced by approved charitable donations provided for under section 12BA. (Replaced 43 of 1989 s. 21) (1A) (Repealed 43 of 1989 s. 21) (2) If a person commences to derive income from a source on a day within any year of assessment, an assessor may estimate the sum in respect of which provisional salaries tax is payable in that year and the succeeding year of assessment. (Amended 71 of 1983 s. 31) (3) If a person ceases to derive income from a source within any year of assessment an assessor may estimate the sum in respect of which provisional salaries tax is payable for that year of assessment and for the year preceding that year of assessment. (Amended 71 of 1983 s. 31) (4) If a person is liable to pay provisional salaries tax, an assessor shall, as soon as may be after the expiration of the time limited by the notice requiring that person to furnish a return under section 51 (1), assess or estimate the amount of the provisional salaries tax which he is liable to pay.

(5) Notwithstanding subsection (4), an assessor may assess or estimate the amount of provisional salaries tax which any person is liable to pay if he is of the opinion that the person is about to leave Hong Kong or that for any other reason it is expedient to do so. (Amended 7 of 1986 s. 12) (6) When an assessor has assessed or estimated the amount of provisional salaries tax which a person is liable to pay, the Commissioner shall give a notice to that person stating the amount of provisional salaries tax to be paid, and such due date for payment thereof as may be fixed by the Commissioner.

(6A) Where in any year of assessment a notice for payment of provisional salaries tax has been given under subsection (6) and thereafter any rate specified in Schedule 2, or any allowance provided for in Part V, for that year of assessment is amended, the amount of provisional salaries tax stated in the notice shall nevertheless be payable. (Added 32 of 1981 s.

9. Amended 43 of 1989 s. 21) (7) For the purposes of Part XII, provisional salaries tax shall be deemed to be a tax charged under the provisions of this Ordinance and a notice under subsection (6) shall be deemed to be a notice of assessment. (Added 8 of 1973 s. 13. Amended 7 of 1975 s. 36) 63D. Demands for provisional salaries tax (1) In any year of assessment, a notice for payment of provisional salaries tax may be- (a) given separately to any person liable to pay provisional salaries tax; or (b) included in a notice of assessment to salaries tax. (Amended 7 of 1975 s. 37) (2) (Repealed 7 of 1975 s. 37) (Added 8 of 1973 s. 13) 63E. Holding over of payment of provisional salaries tax (1) Where, in relation to any year of assessment, a person is liable to pay provisional salaries tax, he may, by notice in writing lodged with the Commissioner not later than 14 days before the day by which the provisional salaries tax is to be paid, apply to the Commissioner on any of the grounds specified in subsection (2) to have the payment of the whole or part of such tax held over until he is required to pay salaries tax for that year of assessment or, in the case of an application on the ground set out in subsection (2) (d), until- (a) the determination of the objection or settlement thereof under section 64 (3); (b) he is required to pay salaries tax for that year of assessment, whichever is the sooner. (Amended 7 of 1975 s. 38; 71 of 1983 s. 32; 43 of 1989 s. 22) (2) The grounds referred to in subsection (1) are- (a) that the person assessed to provisional salaries tax has become entitled during the year of assessment to an allowance under Part V, which allowance was not taken into account in the ascertainment of his net chargeable income for the year preceding the year of assessment or in estimating the sum in respect of which such person is liable to pay provisional salaries tax; (Amended 33 of 1973 s. 4; 79 of 1978 s. 3; 43 of 1989 s. 22) (b) that the net chargeable income during the year of assessment of the person assessed to provisional salaries tax is, or is likely to be, less than 90% of the net chargeable income for the year preceding the year of assessment or of the estimated sum in respect of which such person is liable to pay provisional salaries tax; (Amended 7 of 1975 s. 38) (c) that the person assessed to provisional salaries tax has ceased, or will before the end of the year of assessment cease, to derive income chargeable to salaries tax; or (d) that the person assessed to provisional salaries tax has objected under section 64 to his assessment to salaries tax for the year preceding the year of assessment. (Added 7 of 1975 s. 38) (3) On receipt of an application under subsection (1), the Commissioner shall consider the same and may hold over the payment of the whole or part of the provisional salaries tax.

(4) The Commissioner shall, by notice in writing, inform the person applying under subsection (1) of his decision.

(5) (Repealed 43 of 1989 s. 22) (Added 8 of 1973 s. 13) 63F. Provisional salaries tax to be applied against salaries tax (1) When any person had paid provisional salaries tax in respect of any year of assessment, the Commissioner shall, not later than when he gives notice of assessment of salaries tax, apply the amount of provisional salaries tax so paid in payment first of- (a) the salaries tax payable by that person for that year of assessment; then (b) the provisional salaries tax payable in respect of the year of assessment succeeding that year of assessment, and shall refund to the person paying the provisional salaries tax the amount of the provisional salaries tax not so applied. (Replaced 7 of 1975 s. 39) (2) (Repealed 43 of 1989 s. 23) (Added 8 of 1973 s. 13) PART XB PROVISIONAL PROFITS TAX 63G. Liability for provisional profits tax Every person who is chargeable to profits tax under Part IV in respect of the year of assessment commencing on 1 April 1975 or any succeeding year of assessment shall be liable to pay provisional profits tax in respect of that year of assessment in accordance with this Part.

(Added 7 of 1975 s. 40) 63H. Amount of provisional profits tax (1) Subject to subsections (2), (3) and (4), provisional profits tax in respect of any year of assessment shall be payable at the standard rate by reference to the amount of assessable profits for the year preceding the year of assessment, but after the set off of any loss available for set off in the year of assessment under section 19 or 19C: Provided that, in the case of a corporation, provisional profits tax shall be payable- (a) for the year of assessment commencing on 1 April 1975, at the rate of 16 1/2%; (b) for the year of assessment commencing on 1 April 1976 and all subsequent years of assessment up to and including the year of assessment commencing on 1 April 1979, at the rate of 17%; (c) for the year of assessment commencing on 1 April 1980 and all subsequent years of assessment up to and including the year of assessment commencing on 1 April 1983, at the rate of 16 1/2%; (Replaced 32 of 1981 s. 10. Amended 36 of 1984 s. 6; 28 of 1987 s. 7) (d) for the year of assessment commencing on 1 April 1984 and all subsequent years of assessment up to and including the year of assessment commencing on 1 April 1986, at the rate of 18 1/2%; (Added 36 of 1984 s.

6. Amended 28 of 1987 s. 7; 28 of 1988 s. 6) (e) for the year of assessment commencing on 1 April 1987, at the rate of 18%; (Added 28 of 1987 s. 7. Amended 28 of 1988 s. 6; 17 of 1989 s. 16) (f) for the year of assessment commencing on 1 April 1988, at the rate of 17%; (Added 28 of 1988 s. 6. Amended 17 of 1989 s. 16; 34 of 1992 s. 3) (g) for the year of assessment commencing on 1 April 1989 and all subsequent years of assessment up to and including the year of assessment commencing on 1 April 1991, at the rate of 16 1/2%; and (Added 17 of 1989 s. 16. Amended 34 of 1992 s. 3) (h) for the year of assessment commencing on 1 April 1992 and all subsequent years of assessment, at the rate of 17 1/2%. (Added 34 of 1992 s. 3) (2) In calculating any assessable profits for a year preceding a year of assessment for the purposes of computing provisional profits tax under subsection (1), there shall be disregarded any loss available for set off in that year.

(3) Where the amount of assessable profits of a person for the year preceding the year of assessment was calculated on a basis period of more or less than 1 year, an assessor may estimate the sum in respect of which such person is liable to pay provisional profits tax in that year of assessment.

(4) If a person commences to carry on a trade, profession or business in Hong Kong on a day within a year of assessment commencing on or after 1 April 1974, an assessor may estimate the sum in respect of which such person is liable to pay provisional profits tax in that year and the succeeding year of assessment. (Amended 7 of 1986 s. 12) (5) If a person is liable to pay provisional profits tax, an assessor shall, as soon as may be after the expiration of the time limited by the notice requiring that person to furnish a return under section 51 (1), assess or estimate the amount of provisional profits tax which he is liable to pay.

(6) Notwithstanding subsection (5), an assessor may assess or estimate the amount of provisional profits tax which any person is liable to pay if he is of the opinion that the person is about to leave Hong Kong or that for any other reason it is expedient to do so. (Amended 7 of 1986 s. 12) (7) When an assessor has assessed or estimated the amount of provisional profits tax which a person is liable to pay, the Commissioner shall give a notice to that person stating the amount of provisional profits tax to be paid, and such due date for payment thereof as may be fixed by the Commissioner.

(7A) Where in any year of assessment a notice for payment of provisional profits tax has been given under subsection (7) and thereafter the rate of provisional tax for that year of assessment is amended, the amount of provisional profits tax stated in the notice shall nevertheless be payable. (Added 32 of 1981 s. 10) (8) For the purposes of Part XII, provisional profits tax shall be deemed to be a tax charged under this Ordinance and a notice under subsection (7) shall be deemed to be a notice of assessment.

(Added 7 of 1975 s. 40) 63I. Demands for provisional profits tax In any year of assessment, a notice for payment of provisional profits tax may be- (a) given separately to the person liable to pay that provisional profits tax; or (b) included in a notice of assessment to profits tax. (Added 7 of 1975 s.

40) 63J. Holding over of payment of provisional profits tax (1) Where in relation to any year of assessment a person is liable to pay provisional profits tax, he may, by notice in writing lodged with the Commissioner not later than 14 days before the day by which the provisional profits tax is to be paid, apply to the Commissioner on any of the grounds specified in subsection (2) to have the payment of the whole or part of such tax held over until he is required to pay profits tax for that year of assessment or, in the case of an application on the ground set out in subsection (2) (e), until- (a) the determination of the objection or settlement thereof under section 64 (3); or (b) he is required to pay profits tax for that year of assessment, whichever is the sooner.

(2) The grounds referred to in subsection (1) are- (a) that the assessable profits for the year of assessment of the person assessed to provisional profits tax are, or are likely to be, less than 90% of the assessable profits for the year preceding the year of assessment or of the estimated sum in respect of which the person is liable to pay provisional profits tax; (b) that the amount of any loss brought forward for set off to that year of assessment under section 19 of 19C has been omitted or is incorrect; (c) that the person assessed to provisional profits tax has ceased, or will before the end of the year of assessment cease, to carry on his trade, profession or business and that the assessable profits to be assessed under section 18D for that year of assessment are, or are likely to be, less than the assessable profits for the year preceding the year of assessment or of the estimated sum in respect of which the person is liable to pay provisional profits tax; (d) that the person assessed to provisional profits tax has elected or is deemed to have elected to be personally assessed under Part VII for that year of assessment and that such personal assessment is likely to reduce his liability to tax; or (e) that the person assessed to provisional profits tax has objected under section 64 to his assessment to profits tax for the year preceding the year of assessment.

(3) On receipt of an application under subsection (1), the Commissioner shall consider the same and may hold over the payment of the whole or part of the provisional profits tax.

(4) The Commissioner shall, by notice in writing, inform the person applying under subsection (1) of his decision.

(Added 7 of 1975 s. 40) 63K. provisional profits tax to be applied against profits tax When any person has paid provisional profits tax in respect of any year of assessment, the Commissioner shall, not later than when he gives notice of assessment of profits tax, apply the amount of provisional profits tax so paid in payment first of- (a) the profits tax payable by that person for that year of assessment; then (b) the provisional profits tax payable in respect of the year of assessment succeeding that year of assessment, and shall refund to the person paying the provisional profits tax the amount thereof not so applied.

(Added 7 of 1975 s. 40) PART XC PROVISIONAL PROPERTY TAX 63L. Liability for provisional property tax Every person who is chargeable to property tax under Part II in respect of any year of assessment commencing on or after 1 April 1983 shall be liable to pay provisional property tax in respect of that year of assessment in accordance with this Part. (Added 8 of 1983 s. 18) 63M. Amount of provisional property tax (1) Provisional property tax in respect of any year of assessment shall be payable at the standard rate on the net assessable value of land or buildings or land and buildings for the year preceding the year of assessment.

(2) Where the amount of assessable value of land or buildings or land and buildings for the year preceding the year of assessment was calculated in respect of a period of less than one year, an assessor may estimate the assessable value in respect of which provisional property tax is payable.

(3) Where a person becomes chargeable to property tax during a year of assessment, an assessor may estimate the assessable value in respect of which provisional property tax is payable in that year and the succeeding year of assessment.

(4) Where a person is liable to pay provisional property tax, an assessor shall, as soon as may be after expiration of the time limited by the notice requiring that person to furnish a return under section 51 (1), assess or estimate the amount of provisional property tax which he is liable to pay.

(5) Notwithstanding subsection (4), an assessor may assess or estimate the amount of provisional property tax which any person is liable to pay if he is of the opinion that the person is about to leave Hong Kong or that for any other reason it is expedient to do so.

(6) When an assessor has assessed or estimated the amount of provisional property tax which a person is liable to pay, the Commissioner shall give a notice to that person stating the amount of provisional property tax to be paid, and such due date for payment thereof as may be fixed by the Commissioner.

(7) Where in any year of assessment a notice for payment of provisional property tax has been given under subsection (6) and thereafter the allowance mentioned in section 5 (1A) or the rate of provisional property tax for that year of assessment is amended, the amount of provisional property tax stated in the notice shall nevertheless be payable. (8) For the purposes of Part XII, provisional property tax shall be deemed to be a tax charged under this Ordinance and a notice under subsection (7) shall be deemed to be a notice of assessment.

(Added 8 of 1983 s. 18) 63N. Demands for provisional property tax In any year of assessment, a notice for payment of provisional property tax may be- (a) given separately to the person liable to pay that provisional property tax; or (b) included in a notice of assessment to property tax.

(Added 8 of 1983 s. 18) 63O. Holding over of payment of provisional property tax (1) Where in relation to any year of assessment a person is liable to pay provisional property tax, he may, by notice in writing lodged with the Commissioner not later than 28 days before the day by which the provisional property tax is to be paid, apply to the Commissioner on any of the grounds specified in subsection (2) to have the payment of the whole or part of such tax held over until he is required to pay property tax for that year of assessment or, in the case of an application on the ground set out in subsection (2) (d), until- (a) the determination of the objection or settlement thereof under section 64 (3); or (b) he is required to pay property tax for that year of assessment, whichever is the sooner.

(2) The grounds referred to in subsection (1) are- (a) that the assessable value for the year of assessment is, or is likely to be, less than 90% of the assessable value for the year preceding the year of assessment or of the estimated assessable value in respect of which the person is liable to pay provisional property tax; (b) That the person assessed to provisional property tax has ceased, or will before the end of the year of assessment cease, to be an owner of land or buildings or land and buildings and that the assessable value for the year of assessment is, or is likely to be, less than the assessable value for the year preceding the year of assessment is, or is likely to be, less than the assessable value for the year preceding the year of assessment or the estimated sum in respect of which the person is liable to pay provisional property tax; (c) that the person assessed to provisional property tax has elected or is deemed to have elected to be personally assessed under Part VII for that year of assessment and that such personal assessment is likely to reduce his liability to tax; or (d) that the person assessed to provisional property tax has objected under section 64 to his assessment to property tax for the year preceding the year of assessment.

(3) On receipt of an application under subsection (1), the Commissioner shall consider the same and may hold over the payment of the whole or part of the provisional property tax.

(4) The Commissioner shall, by notice in writing, inform the person applying under subsection (1) of his decision.

(Added 8 of 1983 s. 18) 63P. Provisional property tax to be applied against property tax When any person has paid provisional property tax in respect of any year of assessment, the Commissioner shall, not later than when he gives notice of assessment of property tax, apply the amount of provisional property tax so paid in payment first of- (a) the property tax payable by that person for that year of assessment; then (b) the provisional property tax payable in respect of the year of assessment succeeding that year of assessment, and shall refund to the person paying the provisional property tax the amount thereof not so applied.

(Added 8 of 1983 s. 18) PART XI OBJECTIONS AND APPEALS (Amended 26 of 1969 s. 33) 64. Objections (1) Any person aggrieved by an assessment made under this Ordinance may, by notice in writing to the Commissioner, object to the assessment; but no such notice shall be valid unless it states precisely the grounds of objection to the assessment and, in the case of an assessment other than a provisional assessment, is received by the Commissioner within 1 month after the date of the notice of assessment or, in the case of a provisional assessment, within 1 month after the date of the notice under section 62 (2) confirming such assessment: (Amended 2 of 1971 s. 41) Provided that- (a) if the Commissioner is satisfied that owing to absence from Hong Kong, sickness or other reasonable cause, the person objecting to the assessment was prevented from giving such notice within such period, the Commissioner shall extend the period as may be reasonable in the circumstances; (Amended 7 of 1986 s. 12) (b) where any assessment objected to has been made under section 59 (3) in the absence of any return required under section 51, no notice of objection against such assessment shall be valid unless, in addition to such notice being valid in accordance with the foregoing provisions of this subsection, the return required as aforesaid has been made within the period provided by this subsection for objecting to the assessment or within such further period as the Commissioner may approve for the making of such return; (c) where the assessment is a reassessment of the tax due from a person having the effect of either increasing or reducing that person's liability to tax, the person so reassessed shall have no further right of objection than he would have had if the reassessment had not been made except to the extent to which, by reason of the reassessment, a fresh liability in respect of any particular is imposed on him or an existing liability in respect of any particular is increased or reduced. (Replaced 2 of 1971 s.

41) (2) On receipt of a valid notice of objection under subsection (1) the Commissioner shall consider the same and within a reasonable time may confirm, reduce, increase or annul the assessment objected to, and for the purpose of discharging his functions under this subsection may, by notice in writing, require the person giving the notice of objection to furnish such particulars as the Commissioner may deem necessary with respect to the matters which are the subject of the assessment and to produce all books or other documents in his custody or under his control relating to such matters, and may summon any person who in his opinion is able to give evidence respecting the assessment to attend before him and may examine such person on oath or otherwise. Where the Commissioner proposes to examine any person on oath under this subsection, he shall, by prior notice in writing, afford a reasonable opportunity to the person giving the notice of objection or his authorized representative to be present at such examination.

(2) In the event of the Commissioner agreeing with any person assessed, who has validly objected to an assessment made upon him, as to the amount at which such person is liable to be assessed, any necessary, adjustment of the assessment shall be made.

(4) In the event of the Commissioner failing to agree with any person assessed, who has validly objected to an assessment made upon him, as to the amount at which such person is liable to be assessed, the Commissioner shall, within 1 month after his determination of the objection, transmit in writing to the person objecting to the assessment his determination together with the reasons therefor and a statement of the facts upon which the determination was arrived at, and such person may appeal therefrom to the Board of Review as provided in section 66.

(5) The Commissioner shall for the purpose of this section have the powers granted under section 4 (1) (d), (e), (f) and (g) of the Commissions of Inquiry Ordinance (Cap. 86), subject to the provisions of section 80 of this Ordinance. (Amended 26 of 1969 s. 34) (6) Any person, other than the person giving the notice of objection or his authorized representative, may be allowed by the Commissioner any reasonable expenses necessarily incurred by him in attending before the Commissioner under subsection (2).

(7) No objection by a person to a personal assessment on his total income under part VII shall- (a) extend the time for making any objection under any other provision of this Ordinance; (b) make valid any objection which is otherwise invalid; or (c) authorize the revision of any amount which has been included in the total income of an individual pursuant to the provisions of section 42 (1), where such amount has been the subject of, or formed a part of, any assessment made under Part II, III or IV which has become final and conclusive under section 70: (Amended 17 of 1989 s. 17) Provided that nothing in this paragraph shall operate to prevent an objection by an individual on the grounds that an amount included in the calculation under section 42 of his total income as a share of the assessable profits or losses of a partnership has not been ascertained in accordance with section 22A. (Added 40 of 1972 s. 7. Replaced 7 of 1975 s.

41) (8) Where an individual makes an objection in the circumstances described in the proviso to subsection (7) (c), such objection shall be deemed to be an objection by all the partners as to the share of assessable profits or losses ascertained under section 22A and any determination or agreement made under this section as to such ascertainment shall be binding on all the partners. (Added 7 of 1975 s. 41) (9) For the purposes of subsection (1) where a person is chargeable to salaries tax under section 10 (3) (a), the spouse of that person shall have, subject to this subsection, the same right to object as has the person assessed, but any such objection shall be limited to the manner in which the assessable income or net assessable income of such spouse is to be determined, the entitlement of such spouse to any allowance under Part V or other matters to which that spouse could have objected had that spouse been the person so chargeable. (Added 43 of 1989 s. 24) (10) Where an objection to which subsection (9) applies is made- (a) the powers of the Commissioner under subsection (2) shall include the power to annul such assessment and make an assessment against the person objecting; (b) subsection (3) shall not apply but- (i) where the Commissioner agrees with both the spouse who has objected and his or her spouse as to the amount at which either of them is liable to be assessed, any necessary adjustment of the assessment shall be made; and (ii) where the Commissioner fails to come to any such agreement as is referred to in subparagraph (i), such agreement shall be deemed to be a failure to agree for the purposes of subsection (4), and the reference in that subsection to the person objecting shall be construed as a reference to the person objecting under paragraph (a) and his or her spouse, with the consequence that either or both of them may appeal to the Board of Review. (Added 43 of 1989 s. 24) (Replaced 35 of 1965 s. 29) 65. Constitution of the Board of Review (1) For the purpose of hearing appeals in the manner hereinafter provided, there shall be a panel for a Board of Review consisting of a chairman and 10 deputy chairmen, who shall be persons with legal training and experience, and not more than 150 other members, all of whom shall be appointed from time to time by the Governor. The members of the panel shall hold office for a term of 3 years but shall be eligible for reappointment. (Amended 49 of 1956 s. 48; 35 of 1965 s. 31; 51 of 1969 s.

2; 65 of 1970 s. 9; 32 of 1977 s. 3; 11 of 1985 s. 4; 4 of 1989 s. 3) (2) There shall be a clerk to the Board of Review (hereinafter referred to as the Board) who shall be appointed by the Governor.

(3) (Repealed 49 of 1956 s. 48) (4) 3 or more members of the panel, one of whom shall always be either the chairman or a deputy chairman, shall be nominated by the Chief Secretary and summoned by the clerk to attend meetings of the Board at which appeals are to be heard. At any such a meeting a quorum shall consist of 3 members. All matters coming before the Board shall be decided by a majority of votes and in the case of an equality of votes the chairman or deputy chairman shall have a second or casting vote. (Amended 49 of 1956 s. 48; 65 of 1970 s. 9) (5) At the request of the Chief Secretary, the clerk to the Board shall summon a meeting of the Board consisting of all the members of the panel available in Hong Kong. At such a meeting a quorum shall consist of 5 members. (Amended 7 of 1986 s. 12) (6) The remuneration, if any, of the chairman, deputy chairmen and other members of the Board and the clerk to the Board shall be determined by the Governor. (Replaced 49 of 1956 s. 48. Amended 65 of 1970 s. 9) 66. Right of appeal to the Board of Review (1) Any person (hereinafter referred to as the appellant) who has validly objected to an assessment but with whom the Commissioner in considering the objection has failed to agree may within- (a) 1 month after the transmission to him under section 64 (4) of the Commissioner's written determination together with the reasons therefor and the statement of facts; or (b) such further period as the Board may allow under subsection (1A), either himself or by his authorized representative give notice of appeal to the Board; but no such notice shall be entertained unless it is given in writing to the clerk to the Board and is accompanied by a copy of the commissioner's written determination together with a copy of the reasons therefor and of the statement of facts and a statement of the grounds of appeal. (Replaced 2 of 1971 s. 42) (1A) If the Board is satisfied that an appellant was prevented by illness or absence from Hong Kong or other reasonable cause from giving notice of appeal in accordance with subsection (1) (a), the Board may extend for such period as it thinks fit the time within which notice of appeal may be given under subsection (1). This subsection shall apply to an appeal relating to any assessment in respect of which notice of assessment is given on or after 1 April 1971. (Added 2 of 1971 s. 42. Amended 7 of 1986 s. 12) (2) The appellant shall at the same time as he gives notice of appeal to the Board serve on the Commissioner a copy of such notice and of the statement of the grounds of appeal.

(3) Save with the consent of the Board and on such terms as the Board may determine, an appellant may not at the hearing of his appeal rely on any grounds of appeal other than the grounds contained in his statement of grounds of appeal given in accordance with subsection (1).

(Replaced 35 of 1965 s. 32) 67. Transfer of appeals under section 66 for hearing and determination by High Court instead of Board of Review (1) Where notice of appeal is given to the Board under section 66, the appellant or the Commissioner may give notice in writing in accordance with this section that he desires the appeal to be transferred to the High Court: Provided that if both the appellant and the Commissioner give such notice, the notice given by the Commissioner shall have no effect and shall be deemed not to have been given.

(2) A notice under subsection (1) shall, if given by the appellant, be given to the Commissioner, or, if given by the Commissioner, be given to the appellant, not later than 21 days after the date on which the notice of appeal is received by the clerk to the Board, and the person giving such notice shall at the same time send a copy thereof to the Board.

(3) If the person to whom notice is given under subsection (1) consents thereto, he shall, not later than 21 days after the date on which the notice is given, notify his consent in writing to the Board and serve a copy of such notification on the person giving the notice, and on receipt of such notification by the Board the clerk to the Board shall transmit the notice of appeal to the High Court together with the documents delivered to the Board under this section and section 66 (1) in connection with the appeal. (Amended L. N. 262 of 1985) (4) An appeal in respect of which notice of appeal is transmitted to the High Court under subsection (3) shall be heard and determined by the High Court as in all respects an appeal to the High Court against the determination to which the notice of appeal relates.

(5) The following provisions shall apply in relation to the hearing of an appeal under this section- (a) the High Court shall give 14 clear days' notice to the appellant and the Commissioner of the date fixed for the hearing of the appeal, and may adjourn the hearing to any other date as the High Court may deem fit; (b) the Commissioner shall be entitled to appear and be heard at the hearing of the appeal; (c) save with the leave of the High Court and on such terms as to costs or otherwise as the High Court may order, the appellant shall not at the hearing of the appeal rely on any grounds of appeal other than the grounds contained in his statement of grounds of appeal given with the notice of appeal under section 66 (1); (d) the onus of proving that the assessment appealed against is excessive or incorrect shall be on the appellant; (e) the High Court may summon any person appearing to the High Court to be able to give evidence respecting the appeal to attend at the hearing of the appeal and may examine any such person as a witness on oath or otherwise.

(6) An appeal in respect of which notice of appeal is transmitted to the High Court under subsection (3) shall not be withdrawn without the leave of the High Court and except on such terms as to costs or otherwise as the High Court may order. (7) In determining an appeal under this section, the High Court may- (a) confirm, reduce, increase or annul the assessment determined by the Commissioner; (b) make any assessment which the Commissioner was empowered to make at the time he determined the assessment, or direct the Commissioner to make such an assessment, in which case an assessment shall be made by the Commissioner so as to conform to that direction; (c) make such order as to costs as the High Court may deem fit.

(Added 12 of 1979 s. 3) 68. Hearing and disposal of appeals to the Board of Review (1) Except where a notification of consent in respect of the transfer of any appeal under section 67 is received by the Board within the time allowed in that behalf by that section, every appeal under section 66 shall be heard by the Board in accordance with this section and the clerk to the Board shall, as soon as may be after the receipt of the notice of appeal, fix a time and place for the hearing of the appeal, and shall give 14 clear days' notice thereof to the appellant and the Commissioner: Provided that the time so fixed for the hearing of the appeal shall not be earlier than- (a) in the case of an appeal in respect of which neither party to the appeal gives notice under section 67 (1), the expiration of the time allowed by that section for giving such notice; or (b) in the case of an appeal in respect of which notice under section 67 (1) is given- (i) by the appellant; or (ii) by the Commissioner but not by the appellant, the expiration of a period of 21 days after the date on which such notice is given. (Replaced 12 of 1979 s. 4) (2) Subject to subsection (2B), an appellant shall attend at the meeting of the Board at which the appeal is heard in person or by an authorized representative. (Amended 40 of 1972 s. 8) (2A) At any time before the hearing of an appeal, the appellant may withdraw the appeal by notice in writing addressed to the clerk to the Board. (Added 40 of 1972 s. 8) (2B) If, on the date fixed for the hearing of an appeal, the appellant fails to attend at the meeting of the Board either in person or by his authorized representative the Board may- (a) if satisfied that the appellant's failure to attend was due to sickness or other reasonable cause, postpone or adjourn the hearing for such period as it thinks fit; (b) proceed to hear the appeal under subsection (2D); or (c) dismiss the appeal. (Added 40 of 1972 s. 8) (2C) If an appeal has been dismissed by the Board under subsection (2B) (c) the appellant may, within 30 days after the making of the order for dismissal by notice in writing addressed to the clerk to the Board, apply to the Board to review its order and the Board may, if satisfied that the appellant's failure to attend at the meeting of the Board for the hearing of the appeal was due to sickness or any other reasonable cause, set aside the order for dismissal and proceed to hear the appeal. (Added 40 of 1972 s. 8) (2D) The Board may, if satisfied that an appellant will be or is outside Hong Kong on the date fixed for the hearing of the appeal and is unlikely to be in Hong Kong within such period thereafter as the Board considers reasonable on the application of the appellant made by notice in writing addressed to the clerk to the Board and received by him at least 7 days prior to the date fixed for the hearing of the appeal, proceed to hear the appeal in the absence of the appellant or his authorized representative.

(Added 40 of 1972 s. 8. Amended 7 of 1986 s. 12) (2E) The Board may, if it hears an appeal in the absence of an appellant or his authorized representative under subsection (2D), consider such written submissions as the appellant may submit to the Board. (Added 40 of 1972 s. 8. Amended 7 of 1975 s. 42) (3) The assessor who made the assessment appealed against or some other person authorized by the Commissioner shall attend such meeting of the Board in support of the assessment.

(4) The onus of proving that the assessment appealed against is excessive or incorrect shall be on the appellant. (Replaced 35 of 1965 s. 34) (5) All appeals shall be heard in camera, but any appeal may be reported in such publications as may be approved by the Attorney General in such a manner that the identity of the appellant is not disclosed. (Replaced 2 of 1971 s. 43) (6) The Board shall have power to summon to attend at the hearing any person whom it may consider able to give evidence respecting the appeal and may examine him as a witness either on oath or otherwise. Any person so attending may be allowed by the Board any reasonable expenses necessarily incurred by him in so attending.

(7) At the hearing of the appeal the Board may, subject to the provisions of section 66 (3), admit or reject any evidence adduced, whether oral or documentary, and the provisions of the Evidence Ordinance (Cap. 8), relating to the admissibility of evidence shall not apply.

(8) (a) After hearing the appeal, the Board shall confirm, reduce, increase or annul the assessment appealed against or may remit the case to the Commissioner with the opinion of the Board thereon.

(b) Where a case is so remitted by the Board, the Commissioner shall revise the assessment as the opinion of the Board may require and in accordance with such directions (if any) as the Board, at the request at any time of the Commissioner, may give concerning the revision required in order to give effect to such opinion. (Replaced 35 of 1965 s. 34) (9) Where under subsection (8), the Board does not reduce or annul such assessment, the Board may order the appellant to pay as costs of the Board a sum not exceeding $ 1,000, which shall be added to the tax charged and recovered therewith. (Amended 11 of 1985 s. 5) (10) The Board shall for the purpose of this section have the powers granted under section 4 (1) (d), (e), (f) and (g) of the Commissions of Inquiry Ordinance (Cap. 86), subject to the provisions of section 80 of this Ordinance. (Added 35 of 1965 s. 34. Amended 26 of 1969 s. 35) 69. Appeals to the High Court (1) The decision of the Board shall be final: Provided that either the appellant or the Commissioner may make an application requiring the Board to state a case on a question of law for the opinion of the High Court. Such application shall not be entertained unless it is made in writing and delivered to the clerk to the Board, together with a fee of $450, within 1 month of the date of the Board's decision. If the decision of the Board shall be notified to the Commissioner or to the appellant in writing, the date of the decision, for the purposes of determining the period within which either of such persons may require a case to be stated, shall be the date of the communication by which the decision is notified to him. (Amended 49 of 1956 s. 50; 11 of 1985 s. 6; 4 of 1989 s. 4) (2) The stated case shall set forth the facts and the decision of the Board, and the party requiring it shall transmit the case, when stated and signed, to the High Court within 14 days after receiving the same.

(3) At or before the time when he transmits the stated case to the High Court, the party requiring it shall send to the other party notice in writing of the fact that the case has been stated on his application and shall supply him with a copy of the stated case.

(4) Any judge of the High Court may cause a stated case to be sent back for amendment and thereupon the case shall be amended accordingly.

(5) Any judge of the High Court shall hear and determine any question of law arising on the stated case and may in accordance with the decision of the court upon such question confirm, reduce, increase or annul the assessment determined by the Board, or may remit the case to the Board with the opinion of the court thereon. Where a case is so remitted by the court, the Board shall revise the assessment as the opinion of the court may require.

(6) In any proceedings before the High Court under this section, the court may make such order in regard to costs in the High Court and in regard to the sum paid under subsection (1) as to the court may seem fit.

(7) Appeals from decisions of the High Court under this section shall be governed by the provisions of the Supreme Court Ordinance (Cap. 4), the Rules of the Supreme Court (Cap. 4 sub. leg.), and the Orders and Rules governing appeals to the Privy Council. (Amended 92 of 1975 s. 58) (Amended 92 of 1975 s. 59) 69A. Right to appeal directly to Court of Appeal against decision of Board of Review (1) Notwithstanding section 69, the appellant or the Commissioner may, with the leave of the Court of Appeal granted on the application of the appellant or the Commissioner, as the case may be, appeal directly to the Court of Appeal against the decision of the Board.

(2) Leave to appeal under this section may be granted on the ground that in the opinion of the Court of Appeal it is desirable that, by reason of the amount of tax in dispute or of the general or public importance of the matter or its extraordinary difficulty or for any other reason, the appeal be heard and determined by the Court of Appeal instead of the High Court.

(3) Section 69 shall apply in relation to appeals under this section as it applies in relation to appeals under that section except that for references in that section to the High Court or a judge of the High Court there shall be substituted references to the Court of Appeal.

(Added 12 of 1979 s. 5) 70. Assessments or amended assessments to be final Where no valid objection or appeal has been lodged within the time limited by this Part against an assessment as regards the amount of the assessable income or profits or net assessable value assessed thereby, or where an appeal against an assessment has been withdrawn under section 68 (2A) or dismissed under subsection (2B) of that section, or where the amount of the assessable income or profits or net assessable value has been agreed to under section 64 (3), or where the amount of such assessable income or profits or net assessable value has been determined on objection or appeal, the assessment as made or agreed to or determined on objection or appeal, as the case may be, shall be final and conclusive for all purposes of this Ordinance as regards the amount of such assessable income or profits or net assessable value: (Amended 49 of 1956 s. 51; 35 of 1965 s.

35; 40 of 1972 s. 9; 7 of 1979 s. 4) Provided that nothing in this Part shall prevent an assessor from making an assessment or additional assessment for any year of assessment which does not involve re-opening any matter which has been determined on objection or appeal for the year. (Amended 35 of 1965 s. 35) 70A. Powers of assessor to correct errors (1) Notwithstanding the provisions of section 70, if, upon application made within 6 years after the end of a year of assessment or within 6 months after the date on which the relative notice of assessment was served, whichever is the later, it is established to the satisfaction of an assessor that the tax charged for that year of assessment is excessive by reason of an error or omission in any return or statement submitted in respect thereof, or by reason of any arithmetical error or omission in the calculation of the amount of the assessable income or profits assessed or in he amount of the tax charged, the assessor shall correct such assessment: Provided that under this section no correction shall be made to any assessment in respect of an error or omission in any return or statement submitted in respect thereof as to the basis on which the liability to tax ought to have been computed where the return or statement was in fact made on the basis of or in accordance with the practice generally prevailing at the time when the return or statement was made.

(2) Where an assessor refuses to correct an assessment in accordance with an application under this section he shall give notice thereof in writing to the person who made such application and such person shall thereupon have the same rights of objection and appeal under this Part as if such notice of refusal were a notice of assessment. (Added 35 of 1965 s. 36) (Replaced 28 of 1964 s. 11) 70B. Husband and wife Where, following an election under section 41 (1A) for personal assessment by a husband and wife, either spouse makes an objection, appeal or application under this Part in respect of any assessment made in consequence of the election- (a) the other spouse shall be deemed to be joined in the objection, appeal or application; (b) nothing in section 70 shall prevent a re-assessment being made in respect of either spouse; and (c) Amended assessments may be issued to both spouses. (Added 71 of 1983 s. 34; Amended 43 of 1989 s. 25) PART XII PAYMENT AND RECOVERY OF TAX 71. Provisions regarding payment of tax (1) Tax charged under the provisions of this Ordinance shall be paid in the manner directed in the notice of assessment on or before a date specified in such notice. Any tax not so paid shall be deemed to be in default, and the person by whom such tax is payable, or where any tax is payable by more than one person or by a partnership then each of such persons or each partner in the partnership, shall be deemed to be a defaulter for the purposes of this Ordinance. (Replaced 49 of 1956 s. 53) (2) Tax shall be paid notwithstanding any notice of objection or appeal, unless the Commissioner orders that payment of tax or any part thereof be held over pending the result of such objection of appeal: (Amended 7 of 1985 s. 2) Provided that where the Commissioner so orders he may do so conditionally upon the person who or on whose behalf the objection or appeal is made providing security for the payment of the amount of tax or any part thereof the payment of which is held over either- (a) by purchasing a certificate issued under the Tax Reserve Certificates Ordinance (Cap. 289); or (b) by furnishing a banker's undertaking, as the Commissioner may require.

(Added 7 of 1985 s. 2) (3) Where the Commissioner is of opinion either that the tax or any part thereof held over under subsection (2) is likely to become irrecoverable, or that the person objecting or appealing is unreasonably delaying the prosecution of his objection or appeal, he may cancel any order made under that subsection and make such fresh order as the case may appear to him to require. (Amended 49 of 1956 s. 53; 35 of 1965 s. 37) (4) Where, upon the final determination of an objection or appeal under Part XI, or upon any order made by the Commissioner, any tax which has been held over under subsection (2) becomes payable or the tax charged is increased, the Commissioner shall give to the person objecting or appealing a notice in writing fixing a date on or before which any tax or balance of tax shall be paid. Any tax not so paid shall be deemed to be in default. (Amended 30 of 1950 Schedule; 49 of 1956 s. 53; 35 of 1965 s. 37) (5) Where any tax is in default, the Commissioner may in his discretion order that a sum or sums not exceeding 5% in all of the amount in default shall be added to the tax and recovered therewith.

(5A) Where on the expiry of a period of 6 months from the date when any tax is deemed to be in default, whether such date was before of after 1 August 1984, there remains unpaid any amount of the aggregate of- (a) the tax deemed to be in default; and (b) any sum added thereto under subsection (5), the Commissioner may order that a sum or sums not exceeding 10% in all of the unpaid amount shall be added to the unpaid amount and recovered therewith. (Replaced 52 of 1984 s. 2) (5B) Any amount charged by the Commissioner prior to 1 August 1984 in the purported exercise of his powers under subsection (5A) by way of surcharge upon the unpaid amount of any sum added to tax under subsection (5) shall, notwithstanding that the tax was not in default at the time of making such charge, be deemed to have been validly charged and to be recoverable as if the tax had been in default at the time of making such charge. (Added 52 of 1984 s. 2) (6) Notwithstanding anything contained in the previous subsections of this section the Commissioner may agree to accept payment of tax by instalments. (Amended 49 of 1956 s. 53) (7) Where the Commissioner exercises his powers under the proviso to subsection (2) and a person is required to purchase a certificate under paragraph (a) of that proviso- (a) a certificate in an amount equal to the tax or any part thereof the payment of which is held over shall be purchased within a period of 14 days from the date of the order of the Commissioner, or on or before the date for the payment of tax specified in the notice of the assessment, whichever is the later, failing which the provisions of subsection (2) shall apply as they would if there had been no order; (b) the Commissioner shall, when he issues a certificate so purchased, note on it particulars sufficient to identify the objection or appeal to which it relates; (c) upon the withdrawal or final determination of the objection or appeal a certificate or part of a certificate so purchased shall be accepted by the Commissioner in payment of so much of the tax held over as becomes or is found to become payable, and no interest shall be payable upon any certificate or part of a certificate so accepted; (d) where, upon the final determination of the objection or appeal, and after all tax held over which becomes, or is found to be, payable has been paid in the manner specified in paragraph (c), any certificate or part of a certificate so purchased has not been accepted as payment by the Commissioner under paragraph (c), the holder thereof may surrender that certificate of part to the Commissioner and- (i) if 36 months or less since the date of purchase of the certificate has elapsed, at his option require the Commissioner to- (A) issue a new certificate in the place of the old certificate or part of the old certificate bearing the same date of issue and rate of interest as that old certificate; or (B) repay the principal value represented by the certificate or part together with the interest thereon at the rate prescribed by the rules from the date of issue of the certificate to the date of the final determination of the objection or appeal; or (ii) if more than 36 months since the date of purchase of the certificate has elapsed, the Commissioner shall repay to the holder the principal value represented by the certificate or part together with interest thereon, at the rate prescribed by the rules, from the date of issue of the certificate to the date of the final determination of the objection or appeal; and (e) no certificate so purchased shall be valid for any purpose except as specified in the preceding paragraphs. (Added 7 of 1985 s. 2) (8) The provisions of subsection (7) shall apply notwithstanding anything to the contrary in the rules relating to such certificates made under the Tax Reserve Certificates Ordinance (Cap. 289) and any reference to the rules relating to such certificates in that subsection shall refer to the rules so made. (Added 7 of 1985 s. 2) (9) Where the Commissioner exercises his powers under the proviso to subsection (2) and a person is required to furnish a banker's undertaking under paragraph (b) of that proviso, the undertaking shall- (a) be in a from acceptable to the Commissioner; (b) be furnished to the Commissioner within a period of 14 days form the date of the order of the Commissioner, or on or before the date for the payment of the tax specified in the notice of assessment, whichever is the later; (c) be given by a bank (as defined in the Banking Ordinance (Cap. 155); (d) not be revocable without the consent of the Commissioner; (e) be expressed to be an undertaking to pay- (i) an amount equal to the tax or any part thereof the payment of which is held over; and (ii) interest on that amount, from the date for the payment of the tax specified in the notice of assessment to the date of withdrawal or final determination of the objection or appeal, at the rate specified in subsection (11); and (f) provide for payment to the Commissioner upon written notification to the bank by the Commissioner that the objection or appeal has been withdrawn or finally determined and that the amount, and interest, stated by him is now due, and if such person fails to supply such an undertaking in such manner the provisions of subsection (2) shall apply as they would if there had been no order. (Added 7 of 1985 s. 2) (10) Where the Commissioner makes an order under subsection (2) but does not exercise his powers under the proviso thereto, interest shall be payable on so much of the amount of the tax or any part thereof the payment of which is held over as becomes payable or is found to become payable upon the withdrawal or final determination of the objection of appeal, from the date for the payment of the tax specified in the notice of assessment or the date of the order, whichever is the later, to the date of withdrawal or final determination of the objection or appeal, at the rate specified in subsection (11). (Added 7 of 1985 s. 2) (11) The rate of interest specified for the purposes of subsections (9) (e) (ii) and (10) shall be the rate fixed by the Chief Justice by notice in the Gazette under section 50 of the District Court Ordinance (Cap.

336). (Added 7 of 1985 s. 2) 72. Tax to include fines, etc.

In the succeeding sections of this Part, "tax" includes any sum or sums added under section 71 (5) or (5A) by reason of default, together with any fines, penalties, fees, or costs incurred, and any interest payable under section 71 (9) (e) (ii) or (10). (Amended 23 of 1974 s. 5; 7 of 1985 s.

3) 73-74. (Repealed 49 of 1956 s. 54) 75. Tax recoverable as a civil debt through the District Court (1) Tax due and payable under this Ordinance shall be recoverable as a civil debt due to the Crown.

(2) Whenever any person makes default in payment of tax the Commissioner may recover the same by action in the District Court notwithstanding that the amount is in excess of the sum mentioned in section 33 of the District Court Ordinance (Cap. 336). (Amended 35 of 1966 Schedule; 68 of 1973 s. 5; 79 of 1981 s. 3) (3) In proceedings under this section for the recovery of tax the production of a certificate signed by the Commissioner stating the name and last known postal address of the defaulter and particulars of the tax due by him shall be sufficient evidence of the amount so due and sufficient authority for a District Court to give judgement for the said amount.

(4) In proceedings under this section for the recovery of tax the court shall not entertain any plea that the tax is excessive, incorrect, subject to objection or under appeal, but nothing in this subsection shall be construed so as to derogate from the powers conferred by the proviso to section 51 (4B) (a) to give judgement for a less sum in the case of proceedings for the penalty specified therein. (Amended 35 of 1965 s. 38) (5) In any proceedings in the District Court under this section, the Commissioner may appear in person or may be represented either by a legal officer within the meaning of the Legal Officers Ordinance (Cap. 87) or by any other person authorized by him in writing.

(Replaced 49 of 1956 s. 55) 75A. (Repealed 43 of 1989 s. 26) 76. Recovery of tax from a debtor of the taxpayer (1) Where tax payable by a person is in default, or a person charged to tax has quitted Hong Kong or in the opinion of the Commissioner is likely to quit Hong Kong without paying all the tax charged to him, and it appears to the Commissioner to be probable that any other person (hereinafter in this subsection referred to as "the third party")- (Amended 7 of 1986 s. 12) (a) owes or is about to pay money to such person (hereinafter in this subsection referred to as "the taxpayer"); or (b) holds money for or on account of the taxpayer; or (c) holds money on account of some other person for payment to the taxpayer; or (d) has authority from some other person to pay money to the taxpayer, the Commissioner may give the third party notice in writing (a copy of which shall be sent by post to the taxpayer) requiring him to pay such moneys not exceeding the amount of tax in default or charged, as the case may be, to the officer named in the notice. The notice shall apply to all such moneys which are in the third party's hands or due from him or about to be paid by him at the date of receipt of such notice or which come into his hands or become due from him or about to be paid by him at any time within a period of 30 days thereafter. (Replaced 26 of 1969 s. 36) (2) Any person who has made any payment in pursuance of this section shall be deemed to have acted under the authority of the person by whom the tax was payable or on whom it was charged and of all other persons concerned, and is hereby indemnified in respect of such payment against all proceedings civil or criminal notwithstanding the provisions of any written law, contract or agreement.

(3) Any person to whom notice has been given under subsection (1) who is unable to comply therewith shall within 14 days of the expiration of the period of 30 days from the date of receipt of such notice give notice in writing to the Commissioner acquainting him with the facts.

(4) Any person to whom a notice has been given under subsection (1) who could have complied therewith but failed to do so within 14 days after the expiration of the period referred to in subsection (1), shall be personally liable for the whole of the tax which he was required to pay, and such tax may be recovered from him by all means provided in this Ordinance for the recovery of tax from a person who has made default in payment. (Replaced 49 of 1956 s. 56) 77. Recovery of tax from persons leaving Hong Kong (1) Where the Commissioner is of opinion that any person is about to or likely to leave Hong Kong without paying all tax assessed upon him, he may issue a certificate containing particulars of such tax and the name and last known place of abode, business or employment of such person to a District Judge, who shall on receipt thereof issue a direction to the Commissioner of Police to take such measures including the use of such force as may be necessary to prevent such person from leaving Hong Kong without paying the tax or furnishing security to the satisfaction of the Commissioner for payment thereof. (Amended 49 of 1956 s. 57; 35 of 1969 Schedule) (2) The District Judge shall cause a notice of his direction to the Commissioner of Police to be served on the person affected thereby either personally or by being delivered at his last known place of abode, business or employment. (Replaced 49 of 1965 s. 57. Amended 35 of 1969 Schedule) (3) Production of a certificate signed by the Commissioner stating that the tax has been paid, or that security has been furnished for payment of the tax, to a police officer in charge of a police station shall be sufficient authority for allowing such person to leave Hong Kong. (Amended 30 of 1950 Schedule; 2 of 1971 s. 45) (4) Any person who knowing that a direction has been issued under this section for the prevention of his departure from Hong Kong, leaves or attempts to leave Hong Kong without paying all tax assessed upon him or furnishing security to the satisfaction of the Commissioner for payment thereof shall be guilty of an offence and may be arrested without warrant by any police officer or member of the Immigration Service. Any person who commits an offence under this subsection shall be liable to a fine of $2,000 and to imprisonment for 6 months. (Added 49 of 1956 s. 57) (5) No civil or criminal proceedings shall be instituted or maintained against the Crown, the Commissioner, a District Judge, the Commissioner of Police, or any police officer or member of the Immigration Service in respect of anything lawfully done under the authority of this section.

(Added 49 of 1956 s. 57. Amended 35 of 1969 Schedule) (Amended 7 of 1986 s. 12) 77A. Refusal of clearance to ships and aircraft where tax is in default (1) In addition to any other powers of collection and recovery provided by this Ordinance, where a person has been charged to tax in respect of his profits from the business of shipowner or charterer or aircraft owner or charterer and such tax is in default and whether such person has been assessed directly or in the name of some other person, the Commissioner, with the prior approval of the Chief Secretary, may issue to the Director of Marine, the Director of Civil Aviation or other authority by whom clearance may be granted, a certificate containing the name or names of the said person and the particulars of the tax in default.

(2) On receipt of such certificate the Director of Marine, the Director of Civil Aviation, or other authority, shall be empowered and is hereby required to refuse clearance from any port, aerodrome or airport or place within Hong Kong to any ship or aircraft owned wholly or partly or chartered by such person until the said tax has been paid or until security for payment has been given to the satisfaction of the Commissioner. (Amended 7 of 1986 s. 12) (3) No Civil or criminal proceedings shall be instituted or maintained against the Crown, the Chief Secretary, the Commissioner, the Director of Marine, the Director of Civil Aviation or other authority, in respect of a refusal of clearance under this section, nor shall the fact that a ship or aircraft is detained under this section affect the liability of the owner, charterer or agent to harbour, airport or other dues and charges for the period of detention.

(Added 49 of 1956 s. 58) 78. (Repealed 49 of 1956 s. 59) PART XIII REPAYMENT 79. Tax paid in excess to be refunded (1) If it is proved to the satisfaction of the Commissioner by claim duly made in writing within 6 years of the end of a year of assessment or within 6 months after the date on which the relevant notice of assessment was served, whichever is the later, that any person has paid tax in excess of the amount with which he was properly chargeable for the year, such person shall be entitled to have refunded the amount so paid in excess: (Amended 49 of 1956 s. 60) Provided that nothing in this section shall operate to extend or reduce any time limit for objection, appeal or repayment specified in any other section or to validate any objection or appeal which is otherwise invalid, or to authorize the revision of any assessment or other matter which has become final and conclusive. (Amended 35 of 1965 s. 39) (2) An executor, trustee or receiver shall have the same right to make a claim under the provisions of subsection (1) as the person whom he represents would have had if such person had not been prevented from making such claim by his death, incapacity, bankruptcy or liquidation and shall be entitled to have refunded to him for the benefit of such person or such person's estate any tax paid in excess within the meaning of subsection (1). (Replaced 49 of 1956 s. 60) (3) Where a non-resident person has been assessed in the name of another person under section 20A or 20B and the tax so assessed has been paid by the other person, the other person or the non-resident person, but not both, may make a claim under subsection (1) for a refund of tax overpaid.

In the event of a refund being made to the other person his receipt shall be a valid discharge in respect of the amount of overpaid tax so refunded.

(Replaced 4 of 1989 s. 5) PART XIV PENALTIES AND OFFENCES 80. Penalties for failure to make returns, making incorrect returns, etc.

(1) Any person who without reasonable excuse (a) fails to comply with the requirements of a notice given to him under section 51 (3), 51A (1), 52 (1) or (2), or 64 (2); or (b) fails to attend in answer to a summons issued under section 64 (2) or 68 (6), or having attended fails to answer any questions put to him, being questions which, under section 64 (2) or 68 (6), as the case may be, may be put to him; or (c) fails to comply with the requirements of section 5 (2) (c), 5 (4), 51 (6), (7) or (8), 51C (1), 51D (1), 52 (4), (5), (6) or (7), or 76 (3), shall be guilty of an offence: Penalty a fine of $5,000, and the court may order the person convicted within a time specified in the order to do the act which he has failed to do. (Replaced 35 of 1965 s. 40. Amended 26 of 1969 s. 37; 2 of 1971 s. 46; 43 of 1975 s. 6; 8 of 1983 s. 19; L. N. 411 of 1984; 17 of 1989 s. 18) (1A) (Repealed 43 of 1975 s. 6) (2) Any person who without reasonable excuse- (a) makes an incorrect return by omitting or understating anything in respect of which he is required by this Ordinance to make a return, either on his behalf or on behalf of another person or a partnership; (b) makes an incorrect statement in connection with a claim for any deduction or allowance under this Ordinance; (c) gives any incorrect information in relation to any matter or thing affecting his own liability to tax or the liability of any other person or of a partnership; (d) fails to comply with the requirements of a notice given to him under section 51 (1) or (2A); or (e) fails to comply with section 51 (2), shall be guilty of an offence: Penalty a fine of $5,000 and a further fine of treble the amount of tax which has been undercharged in consequence of such incorrect return, statement or information, or would have been so undercharged if the return, statement or information had been accepted as correct, or which has been undercharged in consequence of the failure to comply with a notice under section 51 (1) or (2A) or a failure to comply with section 51 (2), or which would have been under charged if such failure had not been detected. (Replaced 43 of 1975 s. 6. Amended L. N.

411 of 1984; 43 of 1989 s. 27) (2A) In the case of an offence under subsection (2) (d), the court may order the person convicted to comply with the requirements of the notice given to him under section 51 (1) or (2A) within such time as may be specified in the order. (Added 43 of 1975 s. 6. Amended 43 of 1989 s. 27) (2B) Any person who does not comply with an order of the court under subsection (1) or (2A) or under section 51 (4B) (b) shall be guilty of an offence: Penalty a fine of $ 5,000. (Added 43 of 1975 s. 6) (3) No person shall be liable to any penalty under this section unless the complaint concerning such offence was made in the year of assessment in respect of or during which the offence was committed or within 6 years after the expiration thereof. (Amended 49 of 1956 s. 61) (4) Any person who aids, abets or incites another person to commit an offence under this section shall be deemed to have committed the same offence and to be liable to the same penalty. (Added 49 of 1956 s. 61) (5) The Commissioner may compound any offence under this section and may before judgement stay or compound any proceedings thereunder. (Amended 49 of 1956 s. 61) 80A. (Repealed 17 of 1989 s. 19) 81. Breach of secrecy and other matters to be offences Any person who- (a) acts under this Ordinance without taking an oath of secrecy as required by section 4 (2); or (b) acts contrary to the provisions of section 4 (1) or to an oath taken under section 4 (2); or (c) aids, abets, or incites any other person to act contrary to the provisions of section 4, (Amended 49 of 1956 s. 62) shall be guilty of an offence: Penalty a fine of $50,000. (Amended 43 of 1975 s. 7) 82. Penal provisions relating to fraud, etc.

(1) Any person who wilfully with intent to evade or to assist any other person to evade tax- (a) omits from a return made under this Ordinance any sum which should be included; or (Amended 30 of 1950 Schedule) (b) makes any false statement or entry in any return made under this Ordinance; or (c) makes any false statement in connection with a claim for any deduction or allowance under this Ordinance; or (d) signs any statement or return furnished under this Ordinance without reasonable grounds for believing the same to be true; or (e) gives any false answer whether verbally or in writing to any question or request for information asked or made in accordance with the provisions of this Ordinance; or (f) prepares or maintains or authorizes the preparation or maintenance of any false books of account or other records or falsifies or authorizes the falsification of any books of account or records; or (g) makes use of any fraud, art, or contrivance, whatsoever or authorizes the use of any such fraud, art, or contrivance, shall be guilty of an offence: Penalty on summary conviction a fine of $5,000 and a further fine of treble the amount of tax which has been undercharged in consequence of the offence or which would have been undercharged if the offence has not been detected, and to imprisonment for 6 months, and on indictment a fine of $20,000 and a further fine of treble the amount of tax so undercharged or which would have been so undercharged and to imprisonment for 3 years. (Amended 49 of 1956 s. 63; 40 of 1972 s.

12; L. N. 411 of 1984; 50 of 1991 s. 4) (2) The Commissioner may compound any offence under this section and may before judgement stay or compound any proceedings thereunder.

82A. Additional tax in certain cases (1) Any person who without reasonable excuse- (a) makes an incorrect return by omitting or understating anything in respect of which he is required by this Ordinance to make a return, either on his behalf or on behalf of another person or a partnership; or (b) makes an incorrect statement in connection with a claim for any deduction or allowance under this Ordinance; or (c) gives any incorrect information in relation to any matter or thing affecting his own liability to tax or the liability of any other person or of a partnership; or (d) fails to comply with the requirements of a notice given to him under section 51 (1) or (2A); or (e) fails to comply with section 51 (2), shall, if no prosecution under section 80 (2) or 82 (1) has been instituted in respect of the same facts, be liable to be assessed under this section to additional tax of an amount not exceeding treble the amount of tax which- (i) has been undercharged in consequence of such incorrect return, statement or information, or would have been so undercharged if the return, statement or information had been accepted as correct; or (ii) has been undercharged in consequence of the failure to comply with a notice under section 51 (1) or (2A) or a failure to comply with section 51 (2), or which would have been undercharged if such failure had not been detected. (Amended 43 of 1975 s. 8; 43 of 1989 s. 28) (2) Additional tax shall be payable in addition to any amount of tax payable under an assessment, or an additional assessment under section 60.

(3) An assessment of additional tax may be made only by the Commissioner personally or the deputy commissioner personally.

(4) Before making an assessment of additional tax the Commissioner or the deputy commissioner, as the case may be, shall- (a) cause notice to be given to the person he proposes so to assess which shall- (i) inform such person of the alleged incorrect return, incorrect statement or incorrect information or alleged failure to comply with the requirements of the notice given to him under section 51 (1) or (2A) or the alleged failure to comply with section 51 (2) in respect of which the Commissioner or deputy commissioner intends to assess additional tax under subsection (1); (Replaced 43 of 1975 s. 8. Amended 43 of 1989 s. 28) (ii) Include a statement that such person has the right to submit written representations to him with regard to the proposed assessment on him of additional tax; (iii) specify the date, which shall not be earlier than 21 days from the date of service of the notice, by which representations which such person may wish to make under subparagraph (ii) must be received; (b) consider and take into account any representations which he may receive under paragraph (a) from or on behalf of a person proposed to be assessed for additional tax.

(4A) Notwithstanding subsection (4), if the Commissioner or deputy commissioner is of the opinion that the person he proposes to assess to additional tax under subsection (1) is about to leave Hong Kong, he need not serve a notice under subsection (4) (a), but may assess that person to additional tax under subsection (1). (Added 43 of 1975 s. 8. Amended 7 of 1986 s. 12) (5) Notice of intention to assess additional tax and notice of an assessment to additional tax shall be given in the same manner as is provided in section 58 (2) in respect of a notice of assessment under section 62.

(6) Where a person who is liable to be assessed to additional tax has died, an assessment to additional tax may be made on his executor, and the additional tax shall be recovered as a debt due from and payable out of the deceased person's estate.

(7) A person who has been assessed to additional tax under subsection (1) shall not be liable to be charged on the same facts with an offence under section 80 (2) or 82 (1). (Added 26 of 1969 s. 38) 82B. Appeals against assessment to additional tax to Board of Review (1) Any person who has been assessed to additional tax under section 82A may, within 1 month after notice of assessment is given to him, give notice of appeal to the Board; but no such notice shall be entertained unless it is given in writing to the clerk to the Board and is accompanied by- (a) a copy of the notice of assessment; (b) a statement of the grounds of appeal from the assessment; (c) a copy of the notice of intention to assess additional tax given under section 82A (4), if any such notice was given; and (d) a copy of any written representations made under section 82A (4).

(Replaced 43 of 1975 s. 9) (2) On an appeal against assessment to additional tax, it shall be open to the appellant to argue that- (a) he is not liable to additional tax; (b) the amount of additional tax assessed on him exceeds the amount for which he is liable under section 82A; (c) the amount of additional tax, although not in excess of that for which he is liable under section 82A, is excessive having regard to the circumstances.

(3) Sections 66 (2) and (3), 68, 69 and 70 shall, so far as they are applicable, have effect with respect to appeals against additional tax as if such appeals were against assessments to tax other than additional tax.

(Added 26 of 1969 s. 38) 83. Tax payable notwithstanding proceedings The institution of proceedings for, or the imposition of, a penalty, fine, or term of imprisonment under this Part shall not relieve any person from liability to assessment or payment of any tax for which he is or may be liable.

(Amended 49 of 1956 s. 64) 84. Prosecutions, sanction of Commissioner (1) No prosecution in respect of an offence under section 80 or 82 may be commenced except at the instance of or with the sanction of the Commissioner.

(2) Nothing in this section shall derogate from the powers of the Attorney General in respect of the prosecution of criminal offences. (Added 26 of 1969 s. 39) PART XV GENERAL 85. Power to make rules (1) The Board of Inland Revenue may from time to time make rules generally for carrying out the provisions of this Ordinance and for the ascertainment and determination of any class of income or profits.

(Amended 30 of 1950 Schedule) (2) Without prejudice to the generality of the foregoing power such rules may- (a) prescribe the procedure to be followed on application for refunds and relief; (b) provide for any matter which by this Ordinance is to be or may be prescribed; (c) for the purpose of any of the provisions of this Ordinance, prescribe what is or is deemed to be included in, or excluded from, the expression "machinery or plant" and the expression "implement, utensil or article".

(Added 35 of 1965 s. 41) (3) Such rules may prescribe fines recoverable on summary conviction for any contravention thereof or failure to comply therewith not exceeding in each case a sum of $200.

(4) All such rules made by the Board of Inland Revenue shall be submitted to the Governor, and shall be subject to the approval of the Legislative Council.

86. Board of Inland Revenue to specify forms (1) The Board of Inland Revenue may specify any forms which may be necessary for carrying this Ordinance into effect. (Amended 39 of 1969 s.

10) (2) Where a specimen of any form bears an endorsement, purporting to be signed by the secretary to the Board of Inland Revenue, to the effect that the form is specified by the Board of Inland Revenue, it shall be presumed, until the contrary is proved, that the form is a form specified by the Board of Inland Revenue under subsection (1). (Added 8 of 1983 s.

20) 87. General power of Governor in Council to exempt The Governor in Council may by order exempt any person, office or institution from payment of the whole or any portion of any tax chargeable under this Ordinance. (L. N. 164 of 1989) 87A. Approval of Retirement schemes Upon application in such manner as may be prescribed the Commissioner may, for the purposes of this Ordinance, approve, either as a whole or in part, any retirement scheme which, in his opinion, complies substantially with such requirements as may be prescribed, and may withdraw any approval so given.

(Added 49 of 1956 s. 65. Amended 7 of 1986 s. 12) 88. Exemption of charitable bodies Notwithstanding anything to the contrary in this Ordinance contained there shall be exempt and there shall be deemed always to have been exempt from tax any charitable institution or trust of a public character: Provided that where a trade or business is carried on by any such institution or trust the profits derived from such trade or business shall be exempt and shall be deemed to have been exempt from tax only if such profits are applied solely for charitable purposes and are not expended substantially outside Hong Kong and either- (Amended 7 of 1986 s. 12) (a) the trade or business is exercised in the course of the actual carrying out of the expressed objects of such institution or trust; or (b) the work in connection with the trade or business is mainly carried on by persons for whose benefit such institution or trust is established.

(Added 3 of 1949 s. 18. Amended 30 of 1950 Schedule; 49 of 1956 s. 66; 26 of 1969 s. 40; 65 of 1970 s. 10) 89. Transitional provisions The transitional provisions of Schedule 5 shall have effect in relation to the amendments made by the Inland Revenue (Amendment) (No. 3) Ordinance 1989 (43 of 1989). (Added 43 of 1989 s. 29) SCHEDULE 1 STANDARD RATE [ss. 2 & 5] For the years of assessment 1947/48 to 1949/50 -10%. inclusive (Amended 49 of 1956 s. 67) For the years of assessment 1950/51 to 1965/66 inclusive -12 1/2%.

(Amended 15 of 1966 s. 4) For the years of assessment 1966/67 to 1983/84 inclusive -15%.

(Added 15 of 1966 s. 4. Amended 36 of 1984 s. 7) For the years of assessment 1984/85 to 1986/87 inclusive -17%.

(Added 36 of 1984 s. 7. Amended 28 of 1987 s. 8) For the year of assessment 1987/88 -16 1/2%.

(Added 28 of 1987 s. 8.

Amended 28 of 1988 s. 7) For the year of assessment 1988/89 -15 1/2%.

(Added 28 of 1988 s. 7.

Amended 17 of 1989 s. 20) For the year of assessment 1989/90 and -15% until superseded (Added 17 of 1989 s. 20) SCHEDULE 2 RATES [ss. 13 & 43 (1)] For the years of assessment 1947/48 to 1949/50 inclusive (Amended 49 of 1956 s. 68) SECOND COLUMN THIRD COLUMN (a) Upon the first $5,000 1/4 standard rate (b) Upon the next $5,000 1/4 standard rate (c) -do- 3/4 standard rate (d) -do- The full standard rate (e) -do- 1 1/4 standard rate (f) -do- 1 1/2 standard rate (g) -do- 1 3/4 standard rate (h) Upon the remainder Twice the standard rate Note: -Where a person is liable to the appropriate tax for a part only of any year of assessment the amounts in the second column against items (a) to (g) will be reduced in the proportion which the number of days he is so liable bears to the number of days in that year of assessment.

For the years of assessment 1950/51 to 1965/66 inclusive SECOND COLUMN THIRD COLUMN (a) Upon the first $5,000 1/5 standard rate (b) Upon the next $5,000 2/5 standard rate (c) -do- 3/5 standard rate (d) -do- 4/5 standard rate (e) -do- The full standard rate (f) -do- 1 1/5 standard rate (g) -do- 1 2/5 standard rate (h) -do- 1 3/5 standard rate (i) -do- 1 4/5 standard rate (j) Upon the remainder Twice the standard rate (Added 30 of 1950 Schedule. Amended 37 of 1950 Schedule; 15 of 1966 s. 5) For the years of assessment 1966/67 to 1971/72 inclusive SECOND COLUMN THIRD COLUMN (a) Upon the first $5,000 2 3/4% (b) Upon the next $5,000 5 1/2% (c) -do- 8 1/4% (d) -do- 11% (e) -do- 14% (f) -do- 17% (g) -do- 20% (h) -do- 23% (i) -do- 26% (j) Upon the remainder 30% (Added 15 of 1966 s. 5. Amended 40 of 1972 s. 2) For the year of assessment 1972/73 SECOND COLUMN THIRD COLUMN (a) Upon the first $5,000 2 1/2% (b) Upon the next $5,000 5% (c) -do- 7 1/2 (d) -do- 10% (e) -do- 12 1/2% (f) -do- 15% (g) -do- 17 1/2% (h) -do- 20% (i) -do- 22 1/2% (j) -do- 25% (k) -do- 27 1/2% (l) Upon the remainder 30% (Added 26 of 1972 s. 2. Amended 33 of 1973 s. 5) For the years of assessment 1973/74 to 1977/78 inclusive SECOND COLUMN THIRD COLUMN (a) Upon the first $10,000 5% (b) Upon the next $10,000 10% (c) -do- 15% (d) -do- 20% (e) -do- 25% (f) Upon the remainder 30% (Added 33 of 1973 s. 5. Amended 29 of 1979 s. 3; L. N. 137 of 1981) For the years of assessment 1978/79 to 1984/85 inclusive SECOND COLUMN THIRD COLUMN (a) Upon the first $10,000 5% (b) Upon the next $10,000 10% (c) -do- 15% (d) -do- 20% (e) Upon the remainder 25% (Added 29 of 1979 s. 3. Amended 21 of 1985 s. 3) For the years of assessment 1985/86 to 1976/87 inclusive SECOND COLUMN THIRD COLUMN (a) Upon the first $10,000 5% (b) Upon the next $10,000 10% (c) -do- 15% (d) Upon the nest $10,000 20% (e) Upon the remainder 25% (Added 21 of 1985 s. 3. Amended 28 of 1987 s. 9) For the year of assessment 1987/88 SECOND COLUMN THIRD COLUMN (a) Upon the first $10,000 5% (b) Upon the next $10,000 10% (c) Upon the next $20,000 15% (d) Upon the next $20,000 20% (e) Upon the remainder 25% (Added 28 of 1987 s. 9. Amended 28 of 1988 s. 8) For the years of assessment 1988/89 and 1989/90 SECOND COLUMN THIRD COLUMN (a) Upon the first $10,000 3% (b) Upon the next $10,000 6% (c) -do- 9% (d) -do- 12% (e) -do- 15% (f) -do- 18% (g) -do- 21% (h) Upon the remainder 25% (Added 28 of 1988 s. 8. Amended 30 of 1990 s. 5) For the year of assessment 1990/91 SECOND COLUMN THIRD COLUMN (a) Upon the first $10,000 2 per cent (b) Upon the next $10,000 4 per cent (c) -do- 9 per cent (d) -do- 12 per cent (e) -do- 15 per cent (f) -do- 18 per cent (g) -do- 21 per cent (h) Upon the remainder 25 per cent (Added 30 of 1990 s. 5. Amended 42 of 1991 s. 2) For the year of assessment 1991/92 and each year thereafter SECOND COLUMN THIRD COLUMN (a) Upon the first $20,000 2% (b) Upon the next $20,000 9% (c) Upon the next $20,000 17% (d) Upon the remainder 25% (Added 42 of 1991 s. 2) SCHEDULE 3 PUBLIC UTILITY COMPANIES [s. 16 (2) (b) & (6)] The Hong Kong Electric Company, Limited.

China Light and Power Company, Limited.

The Hong Kong and China Gas Company, Limited.

(Added 2 of 1971 s. 48. Amended 17 of 1989 s. 21) FOURTH SCHEDULE ALLOWANCES [s. 27(3)] For the year of assessment 1989/90 FIRST COLUMN SECOND COLUMN (section) (the prescribed amount or percentage) 1. Section 28 (basic allowance)- (a) subsection (1) (a) $32,000 (b) subsection (1) (b), being the first $7,000 reference to the prescribed amount (c) subsection (1) (b), being the $39,000 references to the prescribed amount in subparagraphs (i) and (ii) (d) subsection (1) (b), being the prescribed percentage 10% 2. Section 29 (married person's allowance)- (a) subsection (3) (a) $66,000 (b) subsection (3) (b), being the first $14,000 reference to the prescribed amount (c) subsection (3) (b), being the $80,000 references to the prescribed amount in subparagraphs (i), (ii) and (iii) (d) subsection (3) (b), being the prescribed percentage 10% 3. Section 30 (dependent parent allowance)- (a) subsection (3) (a) $11,000 (b) subsection (3) (b) $3,000 (c) subsection (4) (a) $1,200 4. Section 31 (child allowance)- (a) subsection (1) (i) $13,000 for the first child (ii) $9,000 for the second child (iii) $3,000 for the third child (iv) $2,000 each for the fourth, fifth and sixth child (v) $1,000 for each subsequent child (b) subsection (5) $34,000 5. Section 32 (1) (single parent allowance) $20,000 (Replaced 43 of 1989 s. 30. Amended 30 of 1990 s. 6) For the year of assessment 1990/91 FIRST COLUMN SECOND COLUMN (section) (the prescribed amount or percentage) 1. Section 28 (basic allowance)- (a) subsection (1) (a) $32,000 (b) subsection (1) (b), being the first $7,000 reference to the prescribed amount (c) subsection (1) (b), being the $39,000 references to the prescribed amount in subparagraphs (i) and (ii) (d) subsection (1) (b), being the prescribed percentage 0% 2. Section 29 (married person's allowance)- (a) subsection (3) (a) $66,000 (b) subsection (3) (b), being the first $14,000 reference to the prescribed amount (c) subsection (3) (b), being the $80,000 references to the prescribed amount in subparagraphs (i), (ii) and (iii) (d) subsection (3) (b), being the prescribed percentage 0% 3. Section 30 (dependent parent allowance)- (a) subsection (3) (a) $12,000 (b) subsection (3) (b) $3,000 (c) subsection (4) (a) $1,200 4. Section 31 (child allowance)- (a) subsection (1) (i) $14,000 for the first child (ii) $10,000 for the second child (iii) $3,000 for the third child (iv) $2,000 each for the fourth, fifth and sixth child (v) $1,000 for each subsequent child (b) subsection (5) $36,000 5. Section 32 (1) (single parent allowance) $20,000 (Added 30 of 1990 s. 6. Amended 42 of 1991 s. 3) For the year of assessment 1991/92 FIRST COLUMN SECOND COLUMN (section) (the prescribed amount or percentage) 1. Section 28 (basic allowance)- (a) subsection (1) (a) $34,000 (b) subsection (1) (b), being the first $7,000 reference to the prescribed amount (c) subsection (1) (b), being the $41,000 references to the prescribed amount in subparagraphs (i) and (ii) (d) subsection (1) (b), being the prescribed percentage 0% 2. Section 29 (married person's allowance)- (a) subsection (3) (a) $68,000 (b) subsection (3) (b), being the first $14,000 reference to the prescribed amount (c) subsection (3) (b) being the $82,000 references to the prescribed amount in subparagraphs (i), (ii) and (iii) (d) subsection (3) (b), being the prescribed percentage 0% 3. Section 30 (dependent parent allowance)- (a) subsection (3) (a) $12,000 (b) subsection (3) (b) $3,000 (c) subsection (4) (a) $1,200 4. Section 31 (child allowance)- (a) subsection (1) (i) $14,000 for the first child (ii) $10,000 for the second child (iii) $3,000 for the third child (iv) $2,000 each for the fourth, fifth and sixth child (v) $1,000 for each subsequent child (b) subsection (5) $36,000 5. Section 32 (1) (single parent allowance) $20,000 (Added 42 of 1991 s. 3. Amended 34 of 1992 s. 4) For the year of assessment 1992/93 and each year thereafter- FIRST COLUMN SECOND COLUMN (section) (the prescribed amount or percentage) 1. Section 28 (basic allowance)- (a) subsection (1) (a) $39,000 (b) subsection (1) (b), being the first $7,000 reference to the prescribed amount (c) subsection (1) (b), being the $46,000 references to the prescribed amount in subparagraphs (i) and (ii) (d) subsection (1) (b), being the prescribed percentage 0% 2. Section 29 (married person's allowance)- (a) subsection (3) (a) $78,000 (b) subsection (3) (b), being the first $14,000 reference to the prescribed amount (c) subsection (3) (b), being the $92,000 references to the prescribed amount in subparagraphs (i), (ii) and (iii) (d) subsection (3) (b), being the prescribed percentage 0% 3. Section 30 (dependent parent allowance)- (a) subsection (3) (a) $13,500 (b) subsection (3) (b) $3,000 (c) subsection (4) (a) $1,200 4. Section 31 (child allowance)- (a) subsection (1) (i) $15,500 for the first child (ii) $11,500 for the second child (iii) $3,000 for the third child (iv) $2,000 each for the fourth, fifth and sixth child (v) $1,000 for each subsequent child (b) subsection (5) $39,000 5. Section 32 (1) (single parent allowance) $23,000 (Added 34 of 1992 s. 4) FIFTH SCHEDULE TRANSITIONAL PROVISIONS RELATING TO THE INLAND RE- VENUE (AMENDMENT) (No. 3) ORDINANCE 1989 [S. 89] 1. In this Schedule- "amending Ordinance" means the Inland Revenue (Amendment) (No. 3) Ordinance 1989 (43 of 1989); "tax" means salaries tax and tax under a personal assessment under part VII; "1989 tax year" means the year of assessment commencing 1 April 1989; and reference to other tax years shall be construed in an analogous manner.

2. No assessment to tax in respect of the 1989 tax year made prior to 1 April 1990 shall be variable after 1 April 1990 by the Commissioner by reason of the amendment to the Ordinance by the amending Ordinance save under and in accordance with this Schedule and, until and unless such variation takes place, the correctness or otherwise of such assessment or anything done by the Commissioner in relation thereto shall be determined by the provisions of this Ordinance as they were at the time that the assessment was made notwithstanding the application of the amending Ordinance to the 1989 tax year.

3. Where the person charged by an assessment to which paragraph 2 relates or his wife (not being a wife living apart from her husband) derives assessable income in respect of the 1989 tax year subsequent to the date of the assessment then, if such income if taken into account prior to the commencement of the amending Ordinance would have increased the amount payable under such assessment, nothing in part XI shall prevent an assessor from making an assessment or additional assessment for the 1989 tax year which gives effect to the provisions of this Ordinance as amended by the amending Ordinance.

4. Where a person has been assessed to tax by such an assessment as is described in paragraph 2 and either he or his wife (not being a wife living apart from her husband) derives assessable income in respect of the 1989 tax year prior to the date of the assessment which was not included in that assessment, then the amending Ordinance shall not apply to that income which shall be assessable to tax as if that Ordinance had not been enacted except that such income may be taken into account in the event of an assessment or additional assessment under paragraph 3.

5. Notwithstanding the repeal of sections 13 (2), 58A and 63C (1A) (the repealed provisions), where any lump sum payment to which proviso (i) to section 11D (b) relates is received on or after 1 April 1989 but before 1 April 1992 and is related back under that proviso to the 1988 tax year or any previous year of assessment on the application of the person entitled to claim, then that person and his or her spouse shall be deemed to have elected to be separately assessed in relation to any tax chargeable on such sum in accordance with section 58A as it applied prior to such repeal and the repealed provisions shall apply accordingly with the effect that, subject to those provisions, the person making the application under that provision shall be solely chargeable to tax upon that sum.

6. Where a person, not being a person to whom section 63C (1A), prior to its repeal by the amending Ordinance then applied, has been assessed to provisional salaries tax for the 1989 tax year in respect of income derived by him and his wife, then the provisional salaries tax paid in pursuance of such assessment shall be applied- (a) firstly in payment of the salaries tax payable by that person for the 1989 tax year; (b) secondly, in payment of the provisional salaries tax payable by that person for the 1990 tax year; (c) thirdly, in payment of the salaries tax payable by his wife for the 1989 tax year; (d) fourthly, in payment of the provisional salaries tax payable by his wife for the 1990 tax year, and any tax paid which cannot be so applied shall be refunded to the person paying it. (Added 43 of 1989 s. 30) SCHEDULE 6 [s. 26A (2) & (3)] PART I INSTRUMENTS 1. A bill of exchange within the meaning of section 3 of the Bills of Exchange Ordinance (Cap. 19).

2. A promissory note within the meaning of section 89 of the Bills of Exchange Ordinance (Cap. 19).

3. Any other instrument which evidences an obligation to pay a stated or determinable amount to bearer or to order, on or before a fixed time, with or without interest, being an instrument by the delivery of which, with or without endorsement, the right to receive that stated or determinable amount, with or without interest, is transferable.

PART II BODIES 1. The Asian Development Bank.

2. The International Bank for Reconstruction and Development.

3. The International Finance Corporation.

4. The European Investment Bank.

(Added 17 of 1992 s. 3)

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