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Ord. No. 43/89
INLAND REVENUE (AMENDMENT) (NO. 3)
(d) by repealing subsection (10) and substituting—
"(10) Where an election is made by a husband and wife under sec- tion 41(1A) the total income (as reduced under subsections (2) and (5) ) of each of them shall be separately calculated under this section before both incomes are aggregated under section 42A.”.
Section substituted
14. Sections 42A and 42B are repealed and the following substituted—
"Assessment to tax
42A. (1) In giving effect to an election under section 41 the assessor shall make a single assessment-
(a) in the sum of the total income, as reduced under section 42(2) and (5), of
the individual making the election; or
(b) in the case of an election under section 41(1A), in the sum of the joint total income resulting from the aggregation of the total income of the one spouse, as so reduced, with that of the other, as also so reduced,
as reduced in each case by such of the allowances prescribed in Part V as may be appropriate.
(2) In the case of an election under section 41(IA) by a husband and wife who married one another in the year of assessment to which the election relates, they shall be deemed for the purpose of ascertaining their joint total income under subsection (1)(b) to have married at the commencement of that year.".
Rates of charge
15. Section 43 is amended—
(a) by repealing subsection (1) and substituting-
"(1) Tax shall be charged on the amount of the assessment referred to in section 42A(1) at the rates specified in the Second Schedule---
(a) on the individual; or
(b) in the case of a husband and wife making an election under section 41(1A) on both of them subject to apportionment in the manner prescribed by subsection (2B).";
(b) in subsection (2) by repealing all words following "on that person"; (c) by repealing subsections (2B) and (2C) and substituting—
"(2B) Any tax chargeable on a husband and wife under subsection (1)(b) in any year of assessment shall be apportioned between them so that each spouse shall, in respect of that year, be charged such proportion of the tax as the total income of that spouse (as reduced under section 42(2) and (5)) bears to joint total income of the husband and wife.”; and
(d) in subsection (3)—
(i) by repealing "subsections (2) and (2B)” and substituting "subsection (2)”; and
(ii) by repealing "form specified by the Board of Inland Revenue" and substituting "specified form”.
INLAND REVENUE (AMENDMENT) (NO. 3)
Ord. No. 43/89
A425
Returns and information to be furnished
16. Section 51 is amended-
(a) in subsection (1) by repealing everything after “Board of Inland Revenue”
where this appears for the second time; and
(b) by adding after subsection (2)—
“(2A) An assessor shall give notice to any individual who has elected to be personally assessed under Part VII requiring that individual within a reasonable time stated in the notice to furnish a return in the specified form of his total income assessable under this Ordinance.
(2B) Where a notice is required to be given under subsection (2A) to an individual who is married and not living apart from his or her spouse— (a) such notice shall be given to both that individual and his or her
spouse; and
(b) they shall be required to furnish a return of their joint total
income assessable under this Ordinance.".
Information to be furnished by officials and employers
17. Section 52 is amended-
(a) in subsections (4), (5) and (8) by repealing "woman" wherever it occurs and
substituting "person"; and
(b) in subsection (8) by repealing "she nor her husband" and substituting "that
person nor his or her spouse".
Election by spouses to be separately charged
18. Section 58A is repealed.
Assessor to make assessments
19. Section 59 is amended-
(a) in subsections (1B) and (1C) by repealing "his wife, not being a wife living apart from her husband" wherever it appears and substituting "his or her spouse, not being a spouse living apart from that individual"; and
(b) in subsection (1C)(c) by repealing "section 42B" and substituting "Part V”.
Liability for provisional salaries tax
20. Section 63B is amended by repealing subsection (2) and substituting
"(2) In the case of a husband and wife, where either the husband or wife is assessed to salaries tax under section 10(3) on the aggregate of their net chargeable incomes in respect of the year of assessment preceding that in respect of which provisional salaries tax is payable—
(a) such provisional salaries tax shall be payable on the net chargeable income
adjusted as necessary under section 63°C(1); and
(b) the person who is assessed to salaries tax in respect of that preceding year
of assessment shall be solely liable to pay that provisional salaries tax.".