Hong Kong Ordinances

INLAND REVENUE ORDINANCE - SECT 7C

Bad debts

(1) In ascertaining the assessable value of any land or buildings 
or land and buildings under this Part for any year of assessment commencing on
or after 1 April 1983, there shall be deducted any consideration in money or
money's worth, payable or deemed to be payable on or after 1 April 1983 to, to
the order of, or for the benefit of, the owner in respect of the right of use
of that land or buildings or that land and buildings and proved to the
satisfaction of the assessor to have become irrecoverable during that
year of assessment.

(2) Consideration previously deducted as irrecoverable and recovered during
any year of assessment shall be treated as consideration mentioned in
section 5B(2) payable in that year of assessment in respect of the right of
use of the land or buildings or land and buildings in respect of which that
consideration was payable.

(3) Notwithstanding section 70, where a person is entitled to deduct any
consideration under subsection (1) but the land or buildings or 
land and buildings has no or insufficient assessable value from which to
deduct that consideration in the year of assessment in which, under that
subsection, that consideration is deductible, that consideration, or that
consideration to the extent to which it cannot be deducted in that year, shall
be deducted from the assessable value of that land or buildings or that land
and buildings in the latest year of assessment in which that assessable value
is sufficient. (Added 8 of 1983 s. 9)