Clause 3

by deleting paragraph (c) of subsection (2) thereof and substituting therefor the following: —“(c)the annual value of any place of residence provided by the employer and for the purposes of this paragraph —

if the place of residence is “premises” within the Control of Rent Act (Cap. 266) and is provided to a director of a company, or, if the remuneration received by a director of a company is less than the annual value of the premises, the full annual value shall be deemed to be gains or profits of the employment;

except as provided in sub-paragraph (i) of this paragraph, if the annual value of the premises exceeds ten per cent of the gains or profits from the employment mentioned in paragraphs (a) and (b) of this subsection less the rent, if any, paid by the employee for the use of the premises, the excess shall be disregarded;

where the premises are shared, “place of residence” means the part of the premises occupied by the person chargeable.”; and

by inserting immediately after subsection (4) thereof the following subsection: —“(5) Any gains or profits directly or indirectly derived by any person by the exercise, assignment or release of a right or benefit whether granted in his name or in the name of his nominee or agent to acquire shares in a company shall, where the right or benefit is obtained by that person by reason of any office or employment held by him, be deemed to be income and for the purposes of this subsection —

such gains or profits shall be the price of the shares in the open market at the time of the exercise, assignment or release of the right or benefit, less the amount paid for such shares;

if it is not possible to determine the gains or profits under paragraph (a) of this subsection, the Comptroller may use the net asset value of the shares, less the amount paid for the shares, as the basis for determining the gains or profits; and

“shares” includes stocks.”.