No. 21. Income Tax. 1967.


 returned to the insured and premiums paid
 on re-insurances), and deducting from the
 balance so arrived at a reserve for unexpired
 risks at the percentage adopted by the com-
 pany in relation to its operations as a whole
 for such risks at the end of the basic year
 and adding thereto a reserve .similarly cal-
 culated for unexpired risks outstanding at
 the commencement of the basic year, and
 from the net amount so arrived at deducting
 the actual losses (less the amount recovered
 in respect thereof under re-insurance), the
 agency expenses in the Colony and a fair
 proportion of the expenses of the head office
 of the company;

 (b) in the case of a life insurance company,
 whether mutual or proprietary, the gains or
 profits on which tax is payable shall be the
 investment income less the management ex-
 penses (including commission) :

 Provided that where such a company re-
 ceived premiums outside the Colony, the
 gains or profits shall be the same proportion
 of the total investment income of the com-
 pany as the premiums received in the Colony
 bore to the total premiums received after
 deducting from the amount so arrived at the
 agency expenses in the Colony and a fair
 proportion of the expenses of the head office
 of the company;

 (c) in the case of a shipowner or owner of air
 craft, the gains or profits of his business as
 shipowner or owner of aircraft shall, if he
 produces or causes to be produced to the
 Comptroller the certificate mentioned in sub-
 paragraph (ii) of this paragraph, be taken
 to be a sum bearing the same ratio to the
 sums payable in respect of fares or freight
 for passengers, goods, or mails shipped in the
 Colony as his total profits for the relevant
 accounting period shown by that certificate
 bear to the gross earnings for that period.