Hong Kong Ordinances

INLAND REVENUE ORDINANCE - SECT 59

Assessor to make assessments

PART X

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.
        (Amended 49 of 1956 s. 43; 19 of 1996 s. 11)

   (c)  (Repealed 56 of 1993 s. 24)

(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.