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"1st April, 1947, though the tax collected will of course "be based on receipts during the year ending 31st March, "1947. The possibility of changing the tax year to the "calendar year was considered but as most. Chinese "businesses terminate their year of accounting at "Chinese New Year the effect would be to reduce very "considerably the amount of business profits tax collect- "able during the year 1947. As it is a matter of paramount importance that we should raise sufficient revenue to balance our recurrent expenditure during "the coming financial year, the Committee decided that "the tax year should remain as it is at present.
The object of this Bill, shortly intituled the Inland Revenue Ordinance, 1947, is to give effect to these recommendations.
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"
3. The Comparative Table annexed to these Objects and Reasons reveals that the Bill largely follows the 1941 Ordinance, with certain changes arising, in the main, from the more permanent nature of the present proposals. Among such changes, the principal are—
(i) Change of title, "War Revenue" being no
longer appropriate.
(ii) The standard rate for 1947/48 is to be 10%.
The rate in 1941 was 14%. (Clause 5).
(iii) The charging of Property Tax, Profits Tax and Interest Tax at the full standard rate throughout (Clauses 6, 15, 16 & 29) coupled with provisions for allowances under certain conditions (Chapter VII).
(iv) A 20% allowance for repairs of property
(Clause 6).
(v) Extension of Salaries Tax to cover annuities and the consequent amendment of the tax description.
(vi) Increases in personal and family allowances-
Personal Allowance increased from $3,000
to $7,000,
Wife Allowance increased from $3,000 to
$5,000,
2nd Child Allowance increased from $1,000
to $2,000,
3rd Child Allowance increased from $750
to $1,000,
4th Child Allowance increased from $750
to $1,000,
new allowances for children beyond the fourth, the granting of an allowance for life assurance premiums, and the allowance of necessary expenses against salaries (Clauses 13 & 43). (vii) The extension of allowances, previously grant- ed only to those assessed to Salaries Tax, to all persons who elect to be personally assessed on the disclosure of their total income (Chapter VII).
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