105
Clause of Bill.
44
Table of Correspondence,-Continued.
Source if any.
Remarks.
13
No. 18 of 1940.
14
$. 11 88
amended bv
No. 29
of
1940, s. 4.
No. 13 of 1940,
s. 12.
(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 of twenty-two, one thousand for the second and five hundred each for the third and fourth. In proviso (i) which excluded al- lowance in respect of a child with an income exceeding "one thou- sand dollars the words "two thousand" are substituted. In proviso (iii) the words "the total allowances under this paragraph (c) shall not exceed four thousand dollars" have been substituted for the words "the total al- lowances 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 18 un- necessary in view of Clause 10 which provides for the aggrega. tion of married persons incomes liable to salaries tax.
(4) In sub-section (2) (u) 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 cases to which it applied.
(1) In sub-section (1) "sections 9 to 13" have been substituted for "sections 9, 10 and 11”.
(2) In paragraph (a) the salaries tax on the first five thousand dollars
is raised from "four per cent" to "six per cent".
45
Table of Correspondence,—Continued.
Clause of Bill.
Source if any.
15
}
17
16
Remarks.
No. 13 of 1940,
s. 13.
No. 13 of 1940,
s. 14.
No. 13 of 1940,
s. 15.
(3) In paragraph (b) the salaries tax on the remainder is raised from "ten per cent" to "twelve per cent".
(1) This section dealing with profits tax has been redrafted. -The words "subject to the provisions of this Ordinance" have been added to the first line. The words "on the full amount of the profits of such trade or business which are made from transactions in the Colony of such trade or business, ascertained in ac- cordance with the provisions of this Ordinance at the rate of ten per cent" have been deleted and the following words have been substituted "at the rate of twelve per cent, in respect of the profits arising in or derived from the Colony from such trade ΟΙ business'. See Note (1) to clause 2 in this Table.
(2) It will be noticed that the rate of tax has been raised from "ten per cent" to "twelve per cent".
This clause has been redrafted as it provides for taxation of a trade, profession or business on a different basis to that of the old business profits tax which failed to realize expectations. The replaced tax provided for the payment, on profits exceeding $10,000 and not exceeding $100,000 of a tax of five per cent of the profits in excess of $10,000 and on profits in excess of $100,000 ten per cent of the excess. No tax was payable on profits which did not exceed $10,000. The new clause pro- vides for a tax at six per cent upon the first $50,000 and at twelve per cent upon
the remainder, subject to a proviso for no taxation where the profits do not exceed $5,000. A second proviso secures that the tax payable shall not be more than the amount by which the profits exceed $5,000, just as an in- dividual liable to salaries tox
does not pay more than the amount by which his assessable income exceeds $4,800. A third proviso deals with the aggrega- tion of profits of a husband and wife.
There has been no change in this clause except the necessary renumbering.
106
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