CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 31

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In this I have been guided to some extent by the remarks of

the Chancellor of the Sxchequer when introducing his Budget

of 25th April 1944.

In Section 20 I have provided for the carrying

forward of losses against future profits in the manner

recommended by the Model urdinance, with suitable modification

I

in the ease of indivičual assessment having been selected.

have not thought it necessary to allow for refund of tax paid

in respect of a year of assessment in which it is ultimately

found that a loss has been incurred. This I consider might

be held in reserve as an inducement to the ultimate moceptance

of a more general income tax basis.

6.

7.

Interest Tax (Chapter V).

This virtually re-enacts the 1941 provisions.

salaries Tax (Chapter III).

The general conditions remain largely as in 1941,

with a widening of the exemption of the governor's emolumon te

to those of the 0.A.G. and a revision of the exemption

regarding sums drawn from a provident fund so as to tax those

sume which reprosent deferred earnings previously exempted.

The allowancee reɑmin the same in plan as in 1941,

but the amounts I have left to be settled in Hong Kong.

In view of a need to increase rates of tax and having

in mind the burden on the lower incomes, I have provided for

rates of t. and to be applied as well as the full rate.

§

The amounts of income chargeable at each rate I have left for

settlement in Hong Kong.

8. vergona? sessment (Chapter VII).

This most essential chapter is largely self-

explanatory. I have set out above the reasons for ita introduction. Its provisions place the taxpayer who eleets

to be personally assessed in a similar position to that of a

salary carner,

I have omitted any provision for earned income

relief