Repeal and
replace-
ment of section 12.
Addition
of new section
124.
10
16. Section 12 of the principal Ordinance is repealed and replaced by the following section--
"Ascertain- ment of net of chargeable
imtume,
12. (1) The net chargeable income for any year 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) ali outgoings and expenses, other than capitai 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 assessabile income the Amound 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 die produc- tion of assessable income."
17. The principal Ordinance is amended by the addition after section 12 of the following new section-
"Treatment of losses.
12A. Where the aggregate of the outgoings, expenses and allowances deductable under paragraphs (b) and (c) 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 that-
11
J
(a) in no circumstances shall the aggregate 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 nguinst 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 Section 13 of the principal Ordinance is repealed and Repeat and replaced by the following section-
"Calcula- tion of salaries
LAX. Recom Schedule.
13. Salaries tax shall be charged at the rates 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 rz."
replace-
ment of
section 13.
new soc-
18. The principal Ordinance is amended by the addition after Addition of section 13 of the following new sections-
tions 13A "Provision
in regard to doubt
#s to whether income is income arising in or derived
from the Colony.
13A. (1) Jn 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.