524
Table of Correspondence,—Continued.
Clause of Bill.
Source if any.
Remarks.
17
No. 13 of 1940,
s. 15.
18
19
20
20
21
s. 16.
proviso secures that the tax payable shall not be more than the amount by which the profits exceed $5,000, just as an in- dividual liable to salaries tax
does not pay more than the amount by which his assessable income exceeds $3,600. A third proviso deals with the aggrega- tion of profits of a husband and wife.
There has been no change in this clause except the necessary renumbering.
No. 13 of 1940, (1) This clause has been redrafted so as to put the question of the meaning of depreciation, for which reasonable allowance is made, on a clearer basis; also the expression "trade, profession or business" is substituted for the expression "trade or busi- ness" but this involves no change as professions were treated as business concerns under the 1940 Ordinances. The word "asset" is substituted for "plant, machinery or fixtures”.
(2) Paragraph (f) is new. It provides for an allowance by way of deduction where sums are placed annually to reserve to Cover passages and/or leave pay.
No. 13 of 1940,
s. 17.
No. 13 of 1940,
s. 18.
The words "or loans" have been added at the end of sub-section (2). It has been found in practice difficult to distinguish between partners' capital and partners' loans, so it is made clear that profits from partners' loans are put on the same basis for interest as profits on partners' capital.
Sub-sections (1), (3), (4) and (5) are new and are intended to provide a more simple and easily under- stood basis of assessment in place of that provided by sub-sections (1) and (5) (as enacted by section 5 of Ordinance No. 29 of 1940) of the original Ordinance. Sub- sections (2), (3) and (4) of the original Ordinance are re-enacted as sub-sections (2), (6) and (7).
No. 13 of 1940, This clause is unchanged, except for
s. 19.
necessary renumbering.
22
No. 13 of 1940,
s. 20.
do.