Repeal and
replace- ment of section 19.
of business
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Calculation 188. (1) Business profits tax shall, subject to profits tax. the provisions of subsection (2), be charged for each
year of assessment at the standard rate on the assess- able profits of a person other than a corporation for that year ascertained in accordance with the provisions of this Part.
(a) Where such assessable profits-
(a) do not exceed the sum of seven thousand dollars no tax shall be charged in respect thereof, or
(b) are of such an amount that tax charged thereon would exceed one half of the amount by which such profits exceed the sum of seven thousand dollars the charge to tax in respect thereof shall not be in excess of half the amount by which such profits exceed the sun of seven thousand dollars:
Provided that this subsection shall not apply in favour of a person who is chargeable to both business profits tax and salaries tax for the same year of assess- ment."
28. Section 19 of the principal Ordinance is repealed and replaced by the following section-
"Treatment of losses.
19. (1) Subject to the provisions of subsection (3) where a loss is incurred in any year of assessment by a person chargeable to tax under this Part the amount of such loss attributable to activities in the Colony shall be set off against what would otherwise have been the assessable profits of such person for that year of assessment,
(2) Where the amount of loss which may be set off under subsection (1) is such that it cannot be wholly set off against the assessable profits for the year of assessment in which the loss occurred, the amount not so set off shall be carried forward and shall be set off against what would otherwise have been assessable profits for the future years in sucres- sion.
19
(3) For the avoidance of doubt it is hereby declared that fosses incurred during the basis period. for any year of assessment prior to that commencing on the 1st of April, 1955, shall be ascertained and treated in accordance with the relevant provisions of this Ordinance in force on the 31st day of March, 1955.
(4) Notwithstanding anything in subsection (3), where a loss is sustained in respect of the basis period for the year of assessment commencing on the 1st of April, 1955 such part of such loss as is attributable to that portion (including the whiple) of the basis period which is prior to the 1st of April, 1955, shall for the purposes of this section be deemed to have been sus- tained during the said year of assessment."
29. Subsection (2) of section 20 of the principal Ordinance Amend is amended-—-
(a) by the insertion in the fourth line after the word "profits"
of the following-
"which arise in or derive from the Colony'';
(b) by the insertion in the fifth line after the word "arise"
of the following-
"in or derive from the Colony".
ment of section 20.
ment of section 21.
30. Section 21 of the principal Ordinance is amended by Amend the insertion in the first line after the word "profits" of the following-
"arising in or derived from the Colony".
31. Section 22 of the principal Ordinance is amended-
Amend- ment of
(a) by the deletion of subsection (1) and the substitution section 22.
therefor of the following subsection—
"(1) Where a trade, profession or business is carried on by two or more persons jointly the assess- able profits therefrom shall be computed in one sum and the tax in respect thereof shall be charged in the partnership name.";
(b) by the insertion in the eighth line of subsection (3) before
the words "a person" of the following-
LESSI