Hong Kong Regulations

TAX RESERVE CERTIFICATES (FOURTH SERIES) RULES - RULE 7

Payment of interest and method of calculation

(Past version on 30/06/1997).

(1) Subject to paragraph (1A), simple interest at the prescribed  rate for
each month or part of a month in the period commencing on the date of issue
and ending on the date on which the certificate is accepted for payment of tax
shall be paid on all certificates so accepted: (L.N. 96 of 1967; L.N. 447 of
1996; 24 of 1999 s. 6) Provided that-

   (a)  interest shall not be paid on any certificate for more than 36 months;

   (b)  where a certificate, other than an entry in an account, is only
        partially used in payment of tax, interest shall be calculated on an
        amount to the nearest $50.00 above the amount of the tax. (L.N. 556 of
        1995)

(1A) Where-

   (a)  a certificate is issued on or after the commencement of the Tax
        Reserve Certificates (Amendment) Ordinance 1999 (24 of 1999) pursuant
        to the proviso to section 71(2) of the Inland Revenue Ordinance (
        Cap 112); and

   (b)  during the period commencing on the date of issue of the certificate
        and ending on the date of the final determination of the objection or
        appeal against the assessment issued by the Commissioner to
which the certificate relates ("the holding period"), two or more rates of
interest have been fixed by virtue of paragraph (2)(h), then the interest on
the certificate for the holding period shall be paid and calculated at such
rates for the respective periods during which such rates are in force from
time to time during the holding period. (24 of 1999 s. 6)

(2) In paragraph (1), "the prescribed rate" (訂明利率) means-

   (a)  in relation to certificates issued on or after 19 September 1975 and
        before 17 February 1977, 4.2% per annum;

   (b)  in relation to certificates issued on or after 17 February 1977 and
        before 22 September 1978, 3% per annum; (L.N. 271 of 1978)

   (c)  in relation to certificates issued on or after 22 September 1978 and
        before 24 November 1978, 3.24% per annum; (L.N. 222 of 1978; L.N. 271
        of 1978; L.N. 46 of 1979)

   (d)  in relation to certificates issued on or after 24 November 1978 and
        before 16 February 1979, 5.04% per annum; (L.N. 271 of 1978; L.N. 46
        of 1979; L.N. 115 of 1979)

   (e)  in relation to certificates issued on or after 16 February 1979 and
        before 4 May 1979, 5.76% per annum; (L.N. 46 of 1979; L.N. 115 of
        1979; L.N. 267 of 1979)

   (f)  in relation to certificates issued on or after 4 May 1979 and before
        26 October 1979, 8.04% per annum; (L.N. 115 of 1979; L.N. 267 of 1979;
        L.N. 66 of 1980)

   (g)  in relation to certificates issued on or after 26 October 1979 and
        before 11 April 1980, 8.4% per annum; and (L.N. 267 of 1979; L.N. 66
        of 1980)

   (h)  in relation to certificates issued on or after 11 April 1980, such
        rate of interest as may be fixed by the Financial Secretary from time
        to time and is in force at the date of issue thereof. (L.N. 66 of
        1980)

(2A) Notice of any rate of interest fixed under paragraph (2)(h) shall be
published in the Gazette. (L.N. 66 of 1980)

(3) Where the total amount of interest paid on certificates used at any one
time for the payment of tax includes a number of cents, such number of cents
shall be regarded as $1.00. (L.N. 202 of 1973)

"the prescribed rate" (訂明利率)