Imposition
tion Profits Tax
8
shall be reduced in the proportion which the number of days during which he is so liable bears to the number of days in that year of assessment, and provided also that in no case shall the amount of Salaries and Annuities Tax chargeable on any individual exceed the amount which would have been charge- able on him had the standard rate of tax been charged on the whole of his income chargeable to Salaries and Annuities Tax before deducting the allowances provided in Section 13.
CHAPTER TV.
Profits Tur.
15. Corporation Profits Tax shall, subject to the of Compare provisions of this Ordinance, be charged on every corporation carrying on trade or business in the Colony at the standard rate, in respect of the profits arising in or derived from the Colony from such trade or business.
Imposition Profita Tas
of Business
Ascertain-
mant of Trofita
16. (1) Business Profits Tax shall, subject to the provisions of this Ordinance, be charged at the standard rate on every person other than a corporation carrying on trade, profession or business in the Colony in respect of the profits arising in or derived from the Colony from such trade, profes- sion or business,
(2) 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 be aggregated and a single assessment thereon shall be made in the sum of the profits.
Provided that-
(1) where the profits assessable under this section from a trade, profession or business, or trades, professions or businesses aggregated under the provisions of sub- section (2) of this section, do not exceed the sum of seven thousand dollars no tax shall be chargeable in respect thereof;
(i) the Profits Tax payable by any person other than à corporation in respect of the profits from any trade, profession or business shall not be more than the amount by which the profits from such trade, profession or business exceed the sum of seven thousand dollara.
(i) for the purpose of assessing the profits of a trade, profession or business, a busband and wife who are not living apart from each other under the decree of a competent court or a duly executed deed of separation shall be deemed to be one person,
17. (1) For the purpose of ascertaining the profits of any person there shall be deducted all outgoings and expenses wholly and exclusively incurred during the basis period for the year of assessment by such person in the produc- tion of the profits, including--
(a) sums payable by such person by way of interest upon any money borrowed by him, provided that the interest was payable on capital employed in acquiring the profits;
(b) rent paid by any tenant of land or buildings occupied by him for the purpose of acquiring the profits;
·
(c) the allowances provided by Chapter VI (Depreciation)
(d) bad debts incurred in any trade, business or profession, proved to have become bad during the basis period for the year of assessment, and doubtful debts to the extent that they have become bad during the said basis period notwith- standing that such bad or doubtful debts were due and payable prior to the commencement of the said basis period, provided that all sums recovered during the said basis period on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Ordinance be treated as receipts of the trade, business or profession for that basis period;
(e) such other deductions as may be prescribed by any rule nade under this Ordinance.
(2) The Governor in Council may by rules provide for the method of calculating or estimating the deductions allowed or prescribed under this Ordinance.
18. (1) For the purpose of ascertaining profite nu deduction shall be allowed in respect of--
(a) domestic or private expenses, including the cost of travelling between residence and place of business;
(b) any disbursements or expenses not being money expended for the purpose of producing the profits;
(c) any expenditure of a capital nature or any loss or withdrawal of capital;
(d) the cost of any improvement»,
(e) any sum recoverable under an insurance or contract of indemnity;
(f) rent of, or expenses in connexion with, any premises or part of premises not occupied or used for the purpose of producing the profits;
(g) any tax paid or payable under this Chapter. (2) Ju computing the profits or losses of a partnership. nothing shall be deducted for salaries or other remuneration of partners or for interest on partners' capital or loans.
19.
Deductions bot allowed.
(1) Save as provided in this section, the assessable au for profits liable to Profits Tax of any trade, profession or business computing
profits. for any year of assessment shall be the full amount of its profits arising in or derived from the Colony during the year preceding the year of assessment: Provided that for the year of assessment 1947/48 a person assessable to Profits Tax, by giving notice in writing to the Commissioner on or before the thirty-first day of March, 1949, may require that his assessment be adjusted to the profits arising during that year of assessment.
(2) Where the Commissioner is satisfied that the accounts of a trade, profession or business carried on or exercised in the Colony are usually made up to some day other than the thirty-first day of March, he may direct that the profits from that source be computed on the amount of the profits of the year ending on that day in the year preceding the year of assessment. Where, however, the profits of any trade, profession or business have been computed by reference to an account made up to a certain day, and no account is made up to the corresponding day in the year following, the profits from that "source" both of the year of assessment in which such failure occurs and of the two years of assessment following shall be computed on such basis as the Commis- sioner in his discretion thinks fit.