Income Tax Ordinance [New Version]

FOUNDATION – under the laws of the Netherlands, Liechtenstein, Panama, the Bahamas or the Netherlands Antilles;

ESTABLISHMENT – under the laws of Liechtenstein;

REG. TRUST – under the laws of Liechtenstein.

Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu

(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu)

In this Schedule –

"the guardian" – the Custodian of Enemy Property appointed under section 2 of the Trading with the Enemy Ordinance, 1939, or the Custodian of Absentees' Property within the meaning of the Absentees' Property Law, 5710-1950;

"laws relating to trading with the enemy" – the Trading with the Enemy Ordinance, 1939, or the Absentees' Property Law, 5710-1950, or any other law relating to trading with the enemy or with absentees, and wherever this Schedule refers to money, property or income received by the Custodian or held by him – including money, property or income held to his order;

"property" – as its meaning in section 9 of the Trading with the Enemy Ordinance, 1939, or absentee property within the meaning of the Absentees' Property Law, 5710-1950;

"blocked property" – money or property in the hands of the guardian;

"blocked income" – income paid to the guardian that would have been included in the taxable income of a person for a particular tax year but for the laws relating to trading with the enemy, and "income owner" – such a person.

Blocked income shall be deemed to be the taxable income of the owner of the income, and the guardian may be assessed in respect of that income in the same manner as the owner of the income would have been assessed had it been included in his taxable income for that year.

Where a guardian has been assessed under section 2 of the Schedule in respect of blocked income, or has received blocked income paid after deduction of tax, and it has been proved to the satisfaction of the assessing officer that the owner of the blocked income would have been entitled, on his claim, to relief from tax but for the trading with the enemy laws, that entitlement shall also be granted to the guardian, whether by way of repayment or in any other manner.

Where the assessing officer is of the opinion, on the basis of information in his possession, that the taxable income of a particular individual owner of income ought to have included income that is not blocked income, the assessing officer may assess that person in respect of that non-blocked income without a notice of assessment.

Tax with which a guardian has been assessed under section 2 of the Schedule in respect of blocked income shall be paid by the guardian personally or through another, out of the funds of the owner of the income held by the guardian.

Out of the funds of an individual owner of income held by a guardian, the guardian shall pay — unless this Schedule expressly provides otherwise — all tax due upon demand by the assessing officer from that individual for any year of assessment or tax year, and any amount so paid shall be deemed to have been paid by that individual; in such a demand, the assessing officer may include an amount in respect of which the assessment is still, or may yet be, the subject of an objection or appeal.

Where a guardian has released to a person, or for the benefit of a person or his legal representative, anything held by the guardian to which that person would have been entitled but for the trading with the enemy laws, then thereafter —

Where a guardian who has been assessed under the provisions of this Schedule has, before or after the assessment, paid, transferred or released the income or part thereof to another person, or has authorised such action to be taken, that portion of the tax payable under the assessment which the guardian is unable to pay under the provisions of this Schedule shall be a debt owed to the State by the person deemed to be the owner of that income under section 7 of the Schedule, or his legal representative, if this is a case to which that section applies, or by the person to whom the income was paid, transferred or released, and that portion shall be recovered accordingly and the guardian shall cease to be liable for the tax.

Notwithstanding the limitations in this Ordinance on the making of assessments, objections and appeals, assessments may be made under sections 2 and 4 of the Schedule at any time before the date fixed by the Minister of Finance, and an objection and an appeal against such an assessment and a claim for relief from tax may be lodged at any time before that date.

For the purposes of sections 2 to 4 of the Schedule — unless the contrary is proved — it is presumed that since the third day of September 1939 nothing has occurred that would have the effect of replacing the owner of blocked income or the owner of a blocked asset, and in every assessment under section 2 of the Schedule the name of the owner of the income shall be specified.

Where income from a particular source in a particular year ought to have been paid to a guardian but for the fact that from that source there was in that year no income available for payment, yet that income would nevertheless have been liable to tax but for the trading with the enemy laws, the provisions of the Schedule shall apply as if income from that source had been available for payment in that year and had been paid to the guardian.

The provisions of this Schedule shall apply to the year of assessment commencing on the first day of April 1947, and to all subsequent years of assessment and tax years.