451
Table of Correspondence,--Continued.
Clause of Bill,
Source if any.
16
14
15
Remarks.
No. 13 of 1940,
s. 12.
No. 18 of 1940,
s. 13.
No. 13 of 1940,
s. 14.
(1) In sub-section (1) "sections 9 to 13" have been substituted for "sections 9, 10 and 11".
(2) In paragraph (a) the salaries tax on the first five thousand dollars is raised from "four per cent" to "six per cent".
(3) In paragraph (b) the salaries tax on the remainder is raised from "ten per cent" to "fourteen per cent".
(4) In sub-section (2) "four thousand eight hundred dollars" has been reduced to "three thousand six hundred dollars", see note (3) to clause 8; and consequently in the proviso $3,600" is substituted for "$4,800".
(1) This section dealing with profits tax has been redrafted. The words "subject to the provisions of this Ordinance" have been added to the first line. The words "on the full amount of the profits of such trade or business which are made from transactions in the Colony of such trade or business, ascertained in ac- cordance with the provisions of this Ordinance at the rate of ten per cent" have been deleted and the following words have been substituted "at the rate of fourteen per cent, in respect of the profits arising in or derived from the Colony from such trade or business". See Note (1) to clause 2 in this Table.
(2) It will be noticed that the rate of tax has been raised from "ten per cent"
"fourteen per cent".
to
This clause has been redrafted as it provides for taxation of a trade, profession or business on а different basis to that of the old business profits tax which failed to realize expectations. The replaced tax provided for the payment, on profits exceeding $10,000 and not exceeding $100,000 of a tax of five per cent of the profits in excess of $10,000 and on profits in excess of $100,000 ten per cent of the excess. No tax was payable on profits which did not exceed $10,000. The new clause pro- vides for a tax at seven per cent upon the first $50,000 and at fourteen per cent upon the remainder, subject to a proviso for no taxation where the profits do not exceed $5,000. A second