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39447.

No. 111.

(Leeward Islands: Dominica.)

LAW OFFICERS TO COLONIAL OFFICE.

Construction of the General Tax Acts Consolidation Ordinance No. 7 of 1899.

SIR,

Royal Courts of Justice,

November 8, 1901.

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

15 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

We were honoured with your commands signified in Mr. C. P. Lucas's letter of the 17th ultimo stating that he was directed by you to request the favour of our Report upon a question that had arisen as to the true construction of the Dominica Ordinance No. 7 of 1899,

That in January, 1901, Mr. L. P. Hodge, late Colonial Engineer in Dominica, was awarded a gratuity of £150, subject to the deduction of the sum of £15 158., which was stated by the Administrator of Dominica to be due from him to the Colonial Government in respect of Income Tax.

That on the 4th of February Mr. Hodge wrote a letter to the Colonial Office, in which he protested against the payment of the above-named sum on the ground that the Income Tax had been levied on hia gross instead of his nett income.

That a copy of that letter having been submitted to the Governor of the Leeward Islands, a despatch numbered 261, and dated 13th of May, was received from the latter covering a despatch from the Administrator and a Minute by the Chairman of the Commissioners of Assessed Taxes, maintaining that Mr. Hodge had no ground for complaint.

That those documents, and also a copy of your despatch in answer to the Governor of the Leeward Islands, No. 264 of 24th June, were enclosed for our information.

That in a further despatch, No. 176 of the 23rd August, the Governor of the Leeward Islands transmitted a despatch from the Administrator of Dominica covering Minutes by the Assistant to the Attorney General and the Chairman of the Commis- sioners of Assessed Taxes, dealing with the questions raised in your despatch above referred to.

That it would appear to you that, though it was impossible to read section 51 of the Imperial Income Tax Act, 1853 into the Dominica Ordinance as Mr. Hodge suggested, the expression "annual profits or gains in section 4 of that Ordinance--though not defined in the Ordinance-must be taken to signify not the gross amount payable but that amount subject to allowance for any deductions and expenses which naturally and ordinarily reduce them to "profits or "gains" in the ordinary sense.

"

That with regard to the years 1898 and 1899 on which Mr. Hodge claimed a refund of excess of income tax, Mr. Lucas was to point out that the provisions of the law under Ordinances 2 of 1879 and 7 of 1886 were similar to those of Ordinance 7 of 1899, which came into force on the 1st January, 1900.

That Mr Lucas was to request us to be good enough to report:—

1. What was the true construction of the words "annual profits or gains" in

section 4 of the Ordinance 7 of 1899 ?

2. Whether section 15 of that Ordinance was to be read in connection with section 4,

so as to make the words "annual profits or gains" in section 4 applicable to the salaries dealt with under section 15 ?

3. What deductions Mr. Hodge was entitled to have made in his assessment ?

4. Whether Mr. Hodge was entitled to any refund in respect of past years ?

We have taken the papers into our consideration, and, in obedience to your commands, have the honour to

Report-

1. That, in our opinion, in section 4 of the Ordinance 7 of 1899 the words "annual profits or gains" mean such sums as are received as income after deducting all expenses necessarily incurred in producing such sums.

10261-26-11/1901 W859 D & B

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