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the recommendation of the committee.
In doing so, I was
influenced by the fact that these high profits had, to a very
large extent, been used for the rehabilitation of local
businesses and for the meeting of losses arising from the
occupation of the Colony. A proposal had also been put
forward for the inclusion of some provision for the setting
off of war losses against profits but the committee felt that
it would be impossible to devise any measure of relief which
would cover satisfactorily both business losses and losses of
personal property. They therefore decided not to recommend
such
the inclusion of any provision and they felt that the option
in regard to the basis of assessment would go some way towards
meeting the question of war losses. The necessary provisos
in regard to the option have been incorporated in Sections
12 (1) and 19 (1) of the Ordinance.
11.
Before the Bill was referred to the committee, I
had received certain representations from property owners who
felt that some concession should be granted to them in respect
of property tax in view of the fact that, owing to rent
restriction legislation, they had not been able to recoup
themselves in respect of their war losses in the same way as
members of the business community. The Committee was,
therefore, particularly requested to consider whether property
tax, if imposed at the full rate, would impose hardship. They
came to the conclusion that some degree of hardship would
result and they recommended that only half the standard rate
should be charged during such time as rents continued to be
restricted to December, 1941, levels. The committee also
expressed the view that the allowance for repairs should be
increased from 10% to 20%.
12. As originally drafted, the Bill only taxed such
annuities as arose directly from employment. On the
suggestion of the Commissioner of Inland Revenue the committee
recommended that all annuities should be subject to tax under