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Chapter: | 112A
 | Title: | INLAND REVENUE RULES | Gazette Number: | |
| Rule: | 3 | Heading: | Banks; Hong Kong branch offices | Version Date: | 30/06/1997 |
METHOD OF ASCERTAINMENT AND DETERMINATION OF THE PROFITS OF
THE HONG KONG BRANCH OF A BANK WHOSE HEAD OFFICE
IS ELSEWHERE THAN IN HONG KONG
(1) In this rule-
"bank" (銀行) means any bank whose head office is elsewhere than in Hong Kong;
"Hong Kong branch" (香港分行) means the business carried on in Hong Kong by any such bank.
(2) Where any accounts prepared by a bank for its own purposes disclose, in the opinion of the Assessor, the true profits of the Hong Kong branch, the assessable profits shall be computed on the basis of such accounts.
(3) Where no accounts are prepared which in the opinion of the Assessor disclose the true profits of the Hong Kong branch, the following provisions shall apply in the determination of such profits-
- (a) the same proportion of the total profits of the bank as the assets of the Hong Kong branch bear to the total assets of the bank shall be treated as profits made from transactions in Hong Kong and shall be assessed accordingly;
(b) for the purposes of determining the total profits of the bank, similar adjustments for tax purposes will be made in the accounts of the bank as would have been necessary had the whole of those profits been liable to tax under this Ordinance;
(c) where the Assessor is of the opinion that it would be impracticable or inequitable to adopt the provisions of sub-paragraphs (a) and (b) of this paragraph, he may estimate the amount of the profits of the Hong Kong branch, and assess such profits accordingly:
(7 of 1986 s. 12)