Page:Inland Revenue Ordinance, 1947 (Cap. 112).pdf/35

A.D. 1947]

(2) The following provisions shall apply to the determination of such profits—
 * (a) the profits arising in Hong Kong from shipping or air transport business for any accounting period shall be the sum bearing the same ratio to the sums receivable in respect of carriage of passengers, mails, livestock and goods shipped in the Colony as the total profits for the said period shown by that person’s accounts bear to the total sums receivable by him in respect of the carriage of passengers, mails, livestock and goods: Provided that where the said total profits have been computed on a basis which differs materially from that prescribed in Chapter IV for the ascertainment of profits, the ratio of profits shall be adjusted so as to correspond as nearly as may be to the ratio which would have been arrived at if the profits had been computed in accordance with the provisions of Chapter IV relating to the ascertainment of profits;
 * (b) where the provisions of paragraph (2) (a) of this section cannot for any reason be satisfactorily applied, the profits arising in the Colony may be computed on a fair percentage of the full sum receivable on account of the carriage of passengers, mails, livestock and goods shipped in the Colony: Provided that where any person has been assessed for any year of assessment by reference to such percentage, he shall be entitled to claim at any time within one year of the end of such year of assessment that his liability to tax for that year be recomputed on the basis provided by paragraph (2) (a) of this section;
 * (c) where the Commissioner decides that the call of a ship or aircraft belonging to a particular shipowner or charterer at a port of the Colony is casual and that further calls by that ship or aircraft or others in the same ownership are improbable, he may in his discretion exempt the profits of such ship or aircraft from the provisions of this section, and thereupon such profits shall be treated as if they do not arise in the Colony.

(3) The master of any ship or aircraft owned or chartered by a person whose profits are calculated under the provisions of this section shall (though not to the exclusion of any other agent) be deemed the agent of such person for all the purposes of the Ordinance.