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FRIDAY, NOVEMBER 15, 1974
OTHER FEATURES OF THE BILL RELATING TO RECOMMENDATIONS BY THE REVIEW COMMITTEE INCLUDE :-
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* ACCOUNTS MADE UP ANNUALLY ON THE BASIS OF THE CHINESE
LUNAR NEW YEAR AND THUS FOR PERIODS VARYING IN LENGTH FROM YEAR TO YEAR, WILL BE ACCEPTED AS A YEAR'S ACCOUNTS.
*
*
WHERE PERSONAL ASSESSMENT APPLIES, POST-CHANGE LOSSES OF AN INDIVIDUAL INCURRED AS A SOLE PROPRIETOR OR HIS SHARE OF LOSS INCURRED AS A PARTNER IN A PARTNERSHIP BUSINESS, WILL BE SET OFF IN CALCULATING HIS TOTAL INCOME UNDER PERSONAL ASSESSMENT FOR THAT YEAR OF ASSESSMENT AND SUBSE- QUENT YEARS OF THE ASSESSMENT UNTIL FULLY RELIEVED.
CORPORATIONS HAVING POST-CHANGE LOSSES WILL BE ABLE TO SET OFF A SHARE OF A PARTNERSHIP LOSS IN THEIR COMPUTATION OF ASSESSABLE PROFITS, OR TO SET OFF A LOSS IN THEIR OWN BUSINESS AGAINST THEIR SHARE OF ANY PARTNERSHIP ASSESSABLE PROFIT.
* THERE WILL BE NO CESSATION TREATMENT WHERE THE BUSINESS
DOES NOT IN FACT CEASE BUT IS CARRIED ON IN WHOLE OR PART BY A SUCCESSOR. THIS PROVISION ALSO ACTS AS PART OF THE TRANSITIONAL SAFEGUARDS AGAINST ENGINEERED CESSATIONS.
THE SPOKESMAN SAID THAT THE IMMEDIATE EFFECT (IN 1975/76) ON GOVERNMENT REVENUE WOULD BE MINIMAL AND IN THE LONG TERM THERE SHOULD BE NO SIGNIFICANT DIFFERENCE BETWEEN YIELD UNDER THE REVISED SYSTEM PROPOSED AND YIELD UNDER THE PRESENT SYSTEM. HOWEVER, IN THE SHORT TERM, THE PROVISIONAL TAX SYSTEM WOULD CAUSE ANY PROGRESSION OR REGRESSION OF PROFITS TO HAVE AN EARLIER EFFECT ON YIELD, WITH OBVIOUS ADVANTAGES WHEN BUDGETTING FOR EXPENDITURE.
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