58
6
Table of Correspondence,—Continued.
Clause of
Source if any.
Bill.
23
No. 13 of 1940,
8. 21.
24
No. 13 of 1940,
8. 22.
25
No. 13 of 1940,
8. 23.
26
25
27
No. 13 of 1940,
s. 21.
28
No. 13 of 1940.
8. 25.
29
No. 13 of 1940.
s. 20.
Remarks.
There is no change in the first two sub-sections. Sub-sections (3) and (4) are replaced by new sub- sections (3) and (4) introducing from the United Kingdom Income Tax the 80 called "succession rule" which enables a partner- ship to be assessed regardless of changes in the constitution of the firm and renders unnecessary to a great degree inquiries as to ownership. The change accords with the Chinese Partnership
Ordinance, 1911, whereby registered Chinese Partnership is not dissolved by a change in its constitution owing to death, etc.
This clause is unchanged except for necessary renumbering and sub- stitution of words "arising in or derived from the Colony" for the words "made from transactions in the Colony".
This clause is unchanged except for
necessary renumbering.
This is a new clause in the Ordinance. It is based on Rule I of the rules which was applicable only to non resident shipowners, etc. The new clause is wider as  means of ascertainment of the profits of shipowners, aircraft- owners and charterers liable to tax under the Ordinance.
This clause is unchanged except for
necessary renumbering.
lo.
Sub-section (2) is new and has been
added to give the same relief in respect of the profits of a trade, profession or business
as
at
present exists in respect of cor- poration dividends.
30 to 35
Chapter V (clauses 30 to 35) is new. Clause 80 relates to the imposi- tion of a new tax at the rate of
fourteen per cent on certain classes of readily ascertainable in- terest arising in or accruing in the Colony on debentures, mortgages, bills of sale, and business loans etc., but it is not intended to be charged on bank fixed deposits. savings bank accounts, current accounts or on loans between individuals. Clause 31 deals
with the machinery of collection, which is by deduction at source and places the onus of paying
7
Table of Correspondence,--Continued.
Clause of
Source if any.
Bill.
Remarks.
36
No. 18 of 1940,
s. 27.
$7
No. 13 of 1940,
s. 28.
38
No. 13 of 1940,
s. 30.
39
40
the tax in the first instance on the person paying the interest. Clauses 32 to 84 contain pro- visions for the relief or reimburse- ment of such person, and clause 35 provides for direct assessment on the person ultimately liable.
Sub-section (6) of the original section is omitted as unnecessary and sub-section (7) is therefore renumbered as sub-section (6).
This clause is unchanged except for
necessary renumbering.
do.
Section 29 of the 1940 Ordinance is
omitted as unnecessary.
Clauses 39 and 40 are new in that they rectify an omission in the 1940 Ordinances which contained no express provision for the recovery of unpaid tax from the estate of a deceased taxpayer.
This clause is unchanged except for
necessary renumbering.
do.
41
No. 18 of 1940.
s. 31.
42
No. 13 of 1940,
s. 32.
43
No. 13 of 1940,
do.
s. 33.
44
No. 13 of 1940,
do.
· s. 84.
45
No. 18 of 1940,
s. 35.
do.
No. 13 of 1940.
s. 36.
46
Section 36 of the principal Ordinance No. 13 of 1940 contained pro- visions relating to the departure of persons and the discontinuance of business, which are now considered unnecessary and are therefore not re-enacted.
The clause is new and enables the Examiner to disregard artificial or fictitious transactions.
This clause is unchanged except for
necessary renumbering.
47
No. 13 of 1940.
s. 87.
48
No. 13 of 1940,
do.
s. 38.
49
No. 13 of 1940,
do.
s. 39.
50
No. 18 of 1940,
do.
s. 40.
59