Hong Kong Ordinances

MASS TRANSIT RAILWAY ORDINANCE - SECT 45

Taxation

Taxation and revenue matters

(1) For the purposes of the Inland Revenue Ordinance ( Cap 112), on and from
the appointed day the Corporation is treated as if it were the continuation of
and the same person in law as MTRC.

(2) Accordingly (and without affecting the generality of subsection

(1))-

   (a)  a vesting in the Corporation of any property, right or liability by
        virtue of this Part does not constitute a sale or other disposal of or
        a change in the nature of that property, right or liability for any
        purpose under the Inland Revenue Ordinance ( Cap 112);

   (b)  the aggregate amount of any losses sustained by MTRC which are capable
        of but have not been carried forward and set off against assessable
        profits of MTRC for the purposes of section 19C of the Inland 
        Revenue Ordinance ( Cap 112) as at the end of the last complete
        financial  year of MTRC are deemed to be losses of the Corporation
        and, accordingly, available for set off against the assessable profits
        of the Corporation

(or the Corporation's share of assessable profits of a partnership in which it
is a partner) for the purposes of that Ordinance.

(3) The profits of MTRC treated as profits of the Corporation in accordance
with section 43(3)-

   (a)  shall not be taken into account for the purpose of computing the
        profits of MTRC which are chargeable to tax under Part IV of the
        Inland Revenue Ordinance ( Cap 112) for any year of assessment; and

   (b)  shall be taken into account for the purpose of computing the profits
        of the Corporation which are chargeable to tax under Part IV of the
        Inland Revenue Ordinance ( Cap 112) for the year of assessment the
        basis period for which includes the appointed day.