Repeal and replace- ment of section 12.
Addition
of new section
124.
10
16. Section 12 of the principal Ordinance is repeuled and replaced by the following section-
"Ascertain- ment of net chargeable
mtume.
12. (1) The net chargeable income for any year of assessment of a person chargeable to salaries tax under this Part shall be his assessable income for that year reduced by the following-
(a) the allowances provided under section 42B;
and
(b) all outgoings and expenses, other than capital expenditure on machinery or plant qualifying for allowances under paragraph (c), wholly exclusively and necessarily incurred in the production of such assessable income; and (c) allowances calculated in accordance with the provisions of Part VI in respect of capital expenditure on machinery or plant the use of which is essential to the production of such assessable income.
(2) Where any machinery or plant is not used wholly and exclusively in the production of such assessable income the amount of the allowances provided for in paragraph (c) of subsection (1) shall be reduced in the proportion considered by the assessor to be fair and reasonable.
(3) Where under the provisions of Part VI a balancing charge arises the amount of such charge shall be deemed to be income derived from the office or employment of profit or the pension in respect of which the plant or machinery was used in the produc tion of assessable income. *T
17. The principal Ordinance is amended by the addition after section 12 of the following new section-
"Treatment of lossea.
12A. Where the aggregate of the outgoings. expenses and allowances deductable under paragraphs (b) and (e) of subsection (1) of section 12 from the assessable income of a person exceeds the amount of his assessable income, the amount of the excess shall he carried forward and set off against his assessable income in subsequent years :
Provided dat-
11
(a) in no circumstances shall the aggregale set off against his assessable income in subsequent years exceed the amount of such excess; and (b) a set off under this section shall first be made against his assessable income for the year of assessment next succeeding the year of assess- ment in respect of which the loss occurred, and, so far as it cannot be so made, against his assessable income for the next year of assess- ment and so on until the loss has been completely set off."
18. Section 13 of the principal Ordinance is repealed and Repent and
replace- replaced by the following section-
"Cafeula- tion of salaries
LAK. Recoud Schedule.
ment of
13. Salaries tax shall be charged at the rates section 13. specified in the Second Schedule on the net chargeable income of a person for each year of assessment ascer- tained in accordance with the provisions of this Part:
Provided that-
(a) where a person is liable to tax under this Part for a part only of any year of assessment prior to the year of assessment 1950/51, the provisions of the Second Schedule shall be modified in the manner specified therein; and (b) in no case shall the amount of salaries tax charged on any person exceed the amount which would have been chargeable on him had the standard rate been charged on the whole of his income chargeable to salaries tax before deducting the allowances provided for in paragraph (a) of subsection (r) of section 12."
18. The principal Ordinance is amended by the addition after Addition of section 13 of the following new sections-- "Provision
in regard to doubt. Es to whether income is income arising in or derived
from the Colony.
Dew sec- tions 13A
13A. (1) In the case of any doubt as to whether and 138. any income is for the purposes of this Part income arising in or derived from the Colony the onus of proving that such income is not income arising in or derived from the Colony shall always be on the person charged to tax in respect of such income.