CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 29

AUNO KOKO

RE

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3

In preparing the attached draït ordinance I have

andeavoured to incorporate as many as possible of the features of a normal income tax whilst not departing too ar from the general underlying scheme of the 1941 Bar devenus Ordinance. I have also plarmed to make it financially advantageous to the indivimul to be dealt with more on the normal income tax

lines then on the lines of the 1941 Ordinance.

2.

essential aifference between a normal incoRVE

tax and the 1941 Ordinance is that whereas the basis of

assessment of income tax is the individual, the basis of tax

under the 1941 ordinance is the source of injowe.

in designed to bridge this difference.

Chapter VII1

3. In accordance with the recomendations of the

Taxation Dommittee I have raaintained the four distinct taxes:-

Property Tax

Balarios Tax

Frotite "ax

Interact TX.

each with its own chapter and conditions.

But except in the

case of salaries Tax, the blais of which hee, of course,

always been individus】 assessment, I have provided for no allowances or rebates whatsoever when taxing the source of

income. In this respect the draft differs essentially from

the 1941 rcinanoe, which by means of rebates and reduced

rates endeavoured to apply something equivalent to personal allowances without requiring the disclosure of personal

intercata. he finite variety of parcial interests and

circumstances rake wa equitable working out of allowSNGES

impossible in such a system, especially if it is to be a

permanent measure, and are an additional argument in favou

of some means of assessment on the individual. I have

therefore in the chapters dealing with Property Tax, Profits

Tax and interest Tax, provided for taxation at the full

standard rate only. The same rate is applicable to all three

classes/