54
Clause of Bill.
2
Table of Correspondence,—Continued.
Source if any.
9
No. 13 of 1940,
s. 9.
10
11
Remarks.
(2) The words "held or exercised within the Colony" are deleted from paragraph (a).
(3) In the third proviso the total exemption of income not exceed- ing $4,800 is reduced to income not exceeding $3,600.
(4) The
original fourth proviso exempting "any income which is liable to Income Tax in the United Kingdom or in any other part of the British Empire" has been removed from this clause; but its effect has been preserved and clarified in the new clause 12.
(5) The fourth proviso is new. It will exempt from salaries tax *any gratuity received on termination of employment or any sum received by way of commutation of pension or an- nuity or any sum withdrawn from a provident fund". This is considered fair and also advisable in view of the word gratuity in clause 9 (1) (i).
(6) The fifth proviso re-enacts, with necessary change in the section reference number, the fifth pro- viso introduced by Ordinance No. 29 of 1940.
(7) The sixth proviso is new. It is
considered fair and is intended
to cover the case of the non- resident or temporary resident.
This section is unchanged.
This clause is new. It provides for the aggregation of the salaries of husband and wife where both are employed locally, with provision that where necessary the wife should pay her own share of the combined tax.
This clause is new. It replaces sec- tion 10 of the principal 1940 Ordinance as enacted by section 3 of Ordinance No. 29 of 1940, which provided for a system of assessment based on residence in favour of assessment on actual as against theoretical income. The latter system has proved on trial to be unsatisfactory in practice and has given rise to discontent and ill-feeling.
The new clause places assessment on a simpler basis than the clause replaced.
Clause of Bill.
3
Table of Correspondence,--Continued.
12
13
Source if any.
No. 13 of 1940,
11
S.
amended
as
by
No. 29 of
1940, s. 4.
Remarks.
This clause is new; but sub-section (1) has the effect of preserving and clarifying the original fourth proviso to section 8 of Ordinance No. 18 of 1940. Sub-section (2) embodies a decision of the Board of Review.
(1) In the second line of sub-section (1) the words "liable to salaries tax" are substituted for "charge- able to salaries tax".
(2) In paragraph (b) the allowance in respect of a wife is raised from two thousand dollars to three thousand dollars.
(3) The original paragraph (c) pro- vided for allowances in respect of children under the age of eighteen (increased to twenty- five if they were receiving full time education). This educa- tional provision is considered unsuitable for the Colony and is omitted, but the allowance of one thousand dollars for each child (not exceeding six) has been altered to two thousand for the first child under the age
in
of twenty-two, one thousand for the second and seven hundred and fifty each for the third and fourth. In proviso (i) which excluded allowance in respect of a child 6 one with an income exceeding thousand dollars the words "two thousand" are substituted. In proviso (iii) the words **no allowances shall be made respect of any number of children exceeding four" have been substituted for the words "the total allowances under paragraph (b) and (c) shall not exceed six thousand dollars". The fourth proviso which gave no allowance to a married woman for a child in respect of whom allowance had been made in favour of her husband is omitted as unnecessary in view of Clause 10 which provides for the aggregation of married persons incomes liable to salaries tax.
(4) In sub-section (2) (a) the exclusion of wives living apart from their husbands under court decrees or deeds of separation from the definition of "wife" has been omitted as it is not considered to have operated fairly in the few eases to which it applied.
55
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