Amendment of
section 2.
(Cap. (13)
Amendment of section 12.
Amendment of section 13.
Addition of new section
198.
2
1. Section 2 of the principal Ordinance is amended in sub- section (1) by inserting, after the definition of "agent", the following
*“approved charitable donation" means a donation of money to an institution or trust specified for the purposes of this definition by the Governor in Council under section 89:".
3. Section 12 of the principal Ordinance is amended by inserting, after subsection (1), the following new subsections→→
*(1A) For the purpose of calculating allowances under paragraph (a) of subsection (1), "total income", in subsection (1) of section 42B, means the assessable income of the individual for the relevant year of assessment as reduced by the outgoings, expenses and allowances provided for in para- graphs (6) and (c) of subsection (1).
(1B) Notwithstanding paragraph (a) of subsection (1). for the purpose of ascertaining the net chargeable income for any year of assessment of a person chargeable to salaries tax, an individual shall not be entitled to an allowance under paragraph (f) of subsection (1) of section 42B in any year of assessment unless the individual has, in such year of assess- ment, assessable income other than income of his wife which is deemed to be his under section 10.".
4. Section 13 of the principal Ordinance is amended by deleting paragraph (5) of the proviso and substituting the following-
**(6) in no case shall the amount of salaries tax charged on any person exceed that amount which would have been chargeable on him had the standard rate been charged on the whole of his assessable income as reduced by the outgoings, expenses and allowances provided for in paragraphs (b) and (c) of subsection (1) of section 12 and any allowance under paragraph (e) of subsection (1) of section 423.".
5. The principal Ordinance is amended by adding, after section 19A. the following-
"Approved charitable donations.
19B. (1) Subject to subsection (2), a person chargeable to tax under this Part may deduct the aggregate of approved charitable donations made by that person in the basis period for a year of assess- ment, if such aggregate is not less than one hundred dollars, from what would otherwise have been the
6.
3
assessable profits of such person for that year of assessment after first giving effect, where appropriate, to section 19.
(2) A person shall not be entitled under sub- section (1) to deduct for any year of assessment-
(a) any sum which is allowable as a deduction
under section 16, 16B or 16C;
(b) a sum exceeding ten per cent of the assess-
able profits of that person for that year.".
Section 42 of the principal Ordinance is amended in sub- section (1) by deleting the full stop at the end thereof, substituting a colon and adding the following proviso-
"Provided that there shall be deducted from that part of the total income arising from paragraphs (a) and (d) the amount of any interest payable on any money borrowed for the purpose of producing that part of the total income where the amount of such interest has not been allowed and deducted under the provisions of Part TV.”.
7. Section 428 of the principal Ordinance is amended-
(a) in subsection (1), by deleting paragraph (c) and sub-
stituting the following
"(e) an allowance of the aggregate of approved charitable donations made by the individual in the year preced- ing the year of assessment, if such aggregate is not less than one hundred dollars, to the extent that such donations have not been deducted under sec- tion 19B, but an allowance under this paragraph shall not exceed in any year of assessment ten per cent of the total income of the individual in that
year:
() an allowance of three thousand dollars if at any time during the year of assessment the individual was married to a wife whose income was deemed under section 10 to be the income of that individual, but an individual shall not be granted an allowance under this paragraph in any year of assessment-
(1) greater than the income of his wife which is deemed in that year to be his; and
(ii) unless the Commissioner is satisfied that the income of his wife which is so deemed to be his is reasonable in amount having regard to the services rendered in respect of which the income accrued:
Amendment of section 42.
Amendment of section 428.