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REASSURANCE ON PROPOSED
TUESDAY, DECEMBER 10, 1974
PROVISIONAL PROFITS TAX SYSTEM
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A GOVERNMENT SPOKESMAN TODAY ALLAYED FEARS EXPRESSED BY SOME PEOPLE THAT THE TIMING OF THE PROPOSED PROVISIONAL PROFITS TAX SYSTEM WAS IN ANY WAY +UNTIMELY OR BURDENSOME TO INDUSTRY.+
+ON THE CONTRARY,+ HE SAID, NOW IS THE RIGHT TIME. IF PROFITS ARE LOWER THIS YEAR, AS HAS BEEN IMPLIED, THERE WILL BE NO TRANSITIONAL ADJUSTMENT FOR MANY BUSINESSES IN THE CHANGEOVER TO THE PROPOSED NEW SYSTEM.+
THIS IS BECAUSE, IN THE CHANGEOVER, BUSINESSES WILL BE ABLE TO DROP OUT THE SMALLER OF THE PROFITS FOR 1973-74 OR 1974-75. AS 1973-74 WAS GENERALLY A MORE PROFITABLE YEAR IT WILL BE THE PROFITS FOR THE CURRENT FINANCIAL YEAR WHICH WILL TEND NOT TO BE USED FOR ASSESSMENT.
REFERRING TO A STATEMENT REPORTEDLY MADE BY THE CHAIRMAN OF THE COTTON SPINNERS ASSOCIATION, THE SPOKESMAN SAID THAT IF THE PROPOSED NEW SYSTEM IS IMPLEMENTED AS FROM APRIL 1, 1975, THE TAX WHICH BUSINESSES WOULD BE REQUIRED TO PAY IN RESPECT OF THIS YEAR (1974-75) WOULD STILL BE CALCULATED BY REFERENCE TO THE PROFITS MADE IN 1973-74.
+IN OTHER WORDS TAX BILLS NOW PAYABLE OR DUE TO BE PAID WITHIN THE NEXT MONTH OR SO UNDER THE PRESENT SYSTEM, WILL BE ON EXACTLY THE SAME BASIS AS IN PREVIOUS YEARS,+ HE SAID.
THE SPOKESMAN EXPLAINED THAT IF 1973-74 WAS GENERALLY A MORE PROFITABLE YEAR THAN THE CURRENT FINANCIAL YEAR, THEN THE SITUATION WILL REMAIN THE SAME AND THERE WILL BE NO TRANSITIONAL ADJUSTMENT OR ADDITIONAL TAX PAYABLE IN RESPECT OF ACTUAL PROFITS FOR 1974-75.
+ IT IS ONLY IN THE CASE OF BUSINESSES WHICH HAVE INCREASED THEIR PROFITS IN 1974-75 COMPARED WITH THE PREVIOUS YEAR THAT THERE WILL BE A TRANSITIONAL ADJUSTMENT AND AN ADDITIONAL AMOUNT OF TAX PAYABLE.+
HOWEVER, THE AMOUNT OF SUCH ADDITIONAL TAX, IF ANY, WILL ONLY BE CALCULATED WHEN THE ACCOUNTS FOR 1974-75 ARE AVAILABLE, SOME TIME NEXT YEAR.
THE SPOKESMAN EMPHASISED THAT THERE IS NO QUESTION OF ANY ADDITIONAL TAX LIABILITY IN RESPECT OF 1974-75 BEING PAID WITHIN THIS PRESENT FINANCIAL YEAR,
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