AUNO KOKO
RE
29
3
In preparing the attached draït ordinance I have
andeavoured to incorporate as many as possible of the features of a normal income tax whilst not departing too ar from the general underlying scheme of the 1941 Bar devenus Ordinance. I have also plarmed to make it financially advantageous to the indivimul to be dealt with more on the normal income tax
lines then on the lines of the 1941 Ordinance.
2.
essential aifference between a normal incoRVE
tax and the 1941 Ordinance is that whereas the basis of
assessment of income tax is the individual, the basis of tax
under the 1941 ordinance is the source of injowe.
in designed to bridge this difference.
Chapter VII1
3. In accordance with the recomendations of the
Taxation Dommittee I have raaintained the four distinct taxes:-
Property Tax
Balarios Tax
Frotite "ax
Interact TX.
each with its own chapter and conditions.
But except in the
case of salaries Tax, the blais of which hee, of course,
always been individus】 assessment, I have provided for no allowances or rebates whatsoever when taxing the source of
income. In this respect the draft differs essentially from
the 1941 rcinanoe, which by means of rebates and reduced
rates endeavoured to apply something equivalent to personal allowances without requiring the disclosure of personal
intercata. he finite variety of parcial interests and
circumstances rake wa equitable working out of allowSNGES
impossible in such a system, especially if it is to be a
permanent measure, and are an additional argument in favou
of some means of assessment on the individual. I have
therefore in the chapters dealing with Property Tax, Profits
Tax and interest Tax, provided for taxation at the full
standard rate only. The same rate is applicable to all three
classes/