CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 263

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Any individual may, by notice in writing to the Commissioner, elect to be personally assessed on his total income. Such election shall be made not later than the last day of the year following the year of assessment to which it relates.

together with the following revised definition of "total income" in subsection (2) of Section 43

"total income" means tho total income of an individual computed in accordance with the provisions of Chapters I III, IV, and V as the case may be, and shall include uho. amount of any dividend from a company which is cntitled to deduct tax under the provisions of Section 28. The amount to be included in respect of such dividend is the net dividend received in the year of assessment plus tax which the company has deducted or is entitled to dednot in respect of that dividend.

Scetion 43: The Chinese members of this Committee have strongly represented that in any measure of direct taxation in the Colony, in which the Chinese constitutos such a overwhelming majority of the population, roliof in the shape of personal allowances should be given in respect of the obligation imposed by Chinese law and tradition to maintain dependents in addition to children. The Commissioner, however, informs us that ho considers the difficulty in the way of granting allowances for specific dependents to be such that this could not be donc equitably. He had therefore taken family obligations into consideration when fixing the amount of personal and wife allowanco. informs us further that he also took into consideration when fixing these allowances the fact that High Cout of Living allowances, necessitated by the present high price level ruling in the Colony, are income within the meaning of Section 10.

Whilst personal and wire allowances are a matter distinct from allowances for dependents, we consider that having regard to the proposed ruto of text and to the allowances under which, for instance, a man with a wife and say, four children, would have to pay no tax on the first eighteen-thousand dollars of his income and only 2 per cent on the next five thousand dollars no substantial injustice would be done if no specific relief were given in respect or dependents other tha children, but it is our view that if, on any future occasion, the rate of tax wore altered to the prejudice of the taxpayer, this question should again be considcred by Government.

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