Clause 8

by deleting paragraph (a) of subsection (2) thereof and substituting therefor the following: —“(a)the amount of a loss incurred by that person during any year preceding the year of assessment in any trade, business, profession or vocation, which, if it had been a profit would have been assessable under this Ordinance, and which has not been allowed against his statutory income of a prior year:Provided that a deduction under this subsection shall be made as far as possible from the statutory income of the first year of assessment after the year in which such loss was incurred, and, so far as it cannot be so made, then from the statutory income of the next year of assessment, and so on;”;

by deleting paragraph (b) of subsection (2) thereof;

by deleting subsection (3) thereof and substituting therefor the following: —“(3) For the purposes of subsection (2) of this section the loss incurred during any year shall be computed, where the Comptroller so decides, by reference to the year ending on a day in such year which would have been adopted under subsection (2) of section 35 of this Ordinance for the computation of the statutory income of the following year of assessment if a profit had arisen.”; and

by adding immediately after subsection (4) thereof the following new subsections: —“(5) Notwithstanding anything contained in subsection (2) of this section, the amount of any loss incurred by a company in any trade or business shall be disregarded unless the Comptroller is satisfied that the shareholders of the company on the last day of the year in which the loss was incurred were substantially the same as the shareholders of the company on the first day of the year of assessment in which such loss would otherwise be deductible under subsection (2) of this section.(6) A loss disregarded under subsection (5) of this section shall not be allowed in any subsequent year of assessment.(7) For the purposes of subsection (5) of this section —

the shareholders of a company at any date shall not be deemed to be substantially the same as the shareholders at any other date unless, on both those dates, not less than fifty per cent of the paid-up capital of the company was held by or on behalf of the same persons, nor unless, on both those dates, not less than fifty per cent of the nominal value of the allotted shares in the company were held by or on behalf of the same persons; and

shares in a company held by or on behalf of another company shall be deemed to be held by the shareholders of the last-mentioned company, and shares held by or on behalf of the trustee of the estate of a deceased shareholder or by or on behalf of the person entitled to those shares as beneficiaries under the will or any intestacy of a deceased shareholder shall be deemed to be held by that deceased shareholder.”.