CO129-586-9 War Taxation 24-7-1940 - 28-5-1941 — Page 34

Objects and Reasons.

1. Section 2 of this Bill deletes from section 60 of the principal Ordinance the words "in respect of the property, income and profits of every person for the year preceding the year of assessment, but without prejudice to any provisions of this Ordinance which enact that tax is to be charged in particular cases in respect of property, income and profits for a period other than the year preceding the year of assessment".

2. The intention of section 60 was to fix the starting date of the Taxes under the Ordinance.

3. Provision is already made in sections 10 and 18 for the calculation of salaries and profits taxes on the basis of the preceding year.

4. In the case of property tax however, section 5 pro- vides for charging the tax on the rateable value as assessed for Rating purposes. It does not appear to have been the intention of the War Revenue Committee which framed the principal Ordinance that for property tax the rateable value for the current year should be disregarded and that the value of the previous year should be taken as a basis; but it has been suggested that the construction of the last part of section 60 of the principal Ordinance may have that effect.

5. It has therefore been decided to repeal these words so as to restore the apparent intention of the Committee with regard to that tax. The references to income and profits in the words repealed are unnecessary in view of the provisions of sections 10 and 18 of the principal Ordinance.

C. G. ALABASTER,

Attorney General.

June, 1940.

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