Repeal and replace- ment of section 28.
Addition
of new section 28A.
Amend- meat of section 30.
38. Section 28 of the principal Ordionner is repealed and replaced by the following section-
"Charge of interest tax.
(Vol. IX. p. 356),
(Cap. 185).
28. Interest tax shall, subject to the provisions of this Ordinance be charged for each year of assessment on the recipient of any sum paid or credited to him in that year being-
tax-
(4) interest arising in or derived from the Colony on any debenture, mortgage, hill of sale, deposit, loan, advance or other indebtedness whether evidenced in writing or not; (b) that part of an annuity payable in the Colony computed and deemed to be interest charge. able to interest tax under the provisions of rale 6 of the Inland Revenue Rules :
Provided that there shall be exempt from interest
(4) any interest paid or payable by Guverament or a bank licensed under the Banking Ordin- ance which accrues at a rate not exceeding 21 per centum per annum;
(b) any interest paid or payable to a bank licensed under the Banking Ordinance or to a corpora- tion carrying on trade or business in the Colony:
(c) any interest paid or payable on a Tax Reserve Certificate issued by the Commissioner.”
39. The principal Ordinance is amended by the addition after section 38 of the following new section-
"Calcule- tion of interest tex.
28A. Tax under this Part shall be calculated aL the standard rate on the full amount of all interest charged to lax under the provisions of section 28."
40. Section 30 of the principal Ordinance is amended by the substitution of a semi-colon for the full stop at the end thereof and the addition after paragraph (d) of the following new paragraph-
"(e) the date of the payment or credit."
29
41. Section 34 of the principal Ordinance is amended-
Amend- ment of
(a) hy the substitution of a colon for the full stop at the end section 34.
of subsection (1) and the addition thereafter of the following-
"Provided that such initial allowance shall no longer be made for any year of assessment sub- sequent to the year of assessment commencing on the 1st of April, 1957;";
(b) by the insertion in the seventh line of paragraph (4) of subsection (2) after the word ''allowance"' of the follow- ing-
"for depreciation by wear and tear".
42. Section 36 of the principal Ordinance is repented and Repeal and replaced by the following section→→
"Rebuilding Allowance
for a
36. Where at the end of the basis period for any year of assessment a person owns a commercial build- commercial ing or structure, an allowance to be known as a building or
"rebuilding allowance" equal to three quarters of one alructure.
per centum of the capital expenditure incurred on the construction of such building or structure shall be made to him for that year of assessment."
replace- ment of section 31.
of new
43. The principal Ordinance is amended by the addition after Addition section 37 of the following new section—
section 27A.
"Initial and ammual
and planl acquired
37A. (1) Where a person carrying on a trade, allowances profession or business incurs capital expenditure under in respect of a hire purchase agreement on the provision of machin- machinery
ery or plant for the purposes of his trade, profession or business there shall be made to him for each year of assessment in the basis period for which he has agreement. made an instalment payment under such agreement, an initial allowance equal to 1/5 of the capital portion only of such payment.
under hire purchase
(2) Where at the end of the basis period for any year of assessment a person has in use for the purposes of his trade, profession or business, machinery or plant acquired by him under a hire purchase agreement there shall be made to him in respect of that year of assess- nient an annual allowance for depreciation by wear and tear on such machinery or plant.