CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 252

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accepted as inevitable in the initial stages of the tax. In particular it seems difficult for the Ordinance to catch a firm which went into liquidation prior to 1st April 1947, the proposed date from which the Ordinance is to become effective. It may be more simple to catch a firm which liquidates itself after 1st April 1947 as it is in existence when the Ordinance it self is in force and presumably a special section could be introduced making such a firm liable in respect of the 1946/7 profits, in spite of Section 19 (5), if the liquidation is voluntary.

I should, however, be grateful for any advice you may be able to give us on this point in the light of your experience of Colonial Income Tax legislation.

Yours sincerely,

i