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4.
Section 12, Subsection (1): Provided that for the year of assessment 1947/48, a person assessable to Solaries and Annuities Tax, by giving notice in writing to the Commissioner on or before 31st March, 1949, may require that his assessment be adjusted to the incomo as defined in Section 10 arising during that year of assessment. Section 19, Subsection (1): Provided that for the year of assessment 1947/48 a person assessable to Profits Te by giving notice in writing to the Commissioner on or before 31st March, 1949, may require that his assessment be adjust -ed to the profits arising during that year of assessment.
We appreciate that large sections of the community hav suffered heavy losses as a result of the war, and we have considered at some length the question of allowing such losses as a set-off against taxable income.
We are advised that to set off capital losses against tax- able income is contrary to the principles underlying taxation of this nature, whilst, in the case of revenue losses, it would be dif- ficult to device any meguro of relief which is equitablo to ali the have suffered such losses.
We have accordingly arrived at the conclusion that relief to persons and corporations who have suffered losses as a result of the war muust await such time as this matter is dealt with by way of compensation or reparation. In the meantime, the option which re propose concerning the basis of assessment for the year 1947,45 may be regarded as some measure of consideration for revenue losses.
5. In a number of instances the Commissioner is empowered to Go certain acts "in his own discretion", Whilst we agree that it is ausirable that the Commissioner should be allowed to exercise Jorie discretion, it has been pointed out to us that the wording of Ve Graft Bill when dealing with the discretion of the Commissioner or the opinion of the Assessor might preclude any appeal tribunal from interfering with the discretion exercised or the opinion given. The taxpayer would in effect be deprived of the right of appeal We therefore recommend the following amendments: -
Section 16 (2): Delete and replace by:
Where the ultimate controlling interest in two or more trades, professions or businesses is owned by the same person, the Commissioner shall cause the profits and losses of those trades, professions or businesses to b aggregated and a single assessment thereon shall be made in the sum of the profits.
Section 17 (1)(a): Delete "where the Commissioner is satisfied" and substitute "provided".
Section 17 (1)(a): Delete "to the satisfaction of the Commissioner" and "are respectively estimated to the satisfaction of the Commissioner to".
Section 22: Delete the words "Commissioner in his discretion considers that" and delete the proviso,
Section 60 (4): To require "a satisfactory form" instead of a form satisfactory to the Assessor".