CO129-615-3 Income tax 24-2-1948 - 12-8-1948 — Page 25

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profits were transferred to Personal Assessment and no tax

actually charged. Assessments were as follows:-

Corporations Businesses

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204 assessments 742

946

#1

$ 70,891,408 54,924,454

$125,815,862

The tax charged on these assessments totalled $12,417,166.

The average profits, as finally assessed, were:-

Corporations Businesses

$347,507 74,022

These averages should be compared with the averages as

returned, although it must be pointed out that the actual

assessments, especially of corporations, include an undue

proportion of large units.

Even allowing for this consideration,

however, the increase in the profits after examination and

assessment is striking. Taxpayers have yet to learn that

many items of expenditure, such as capital expenditure, private

living expenses, and interest on capital are not allowable

deductions.

22.

Of the returns rendered, 6,001 comprised returns

and accounts in Chinese. By 31st March, 2,759 of these

had been translated, leaving 3,242 still to be dealt with.

Salaries and Annuities Tax:

23. The first step in the assessment to Salaries and

Annuities Tax is to obtain information from employers as to

probable taxpayers. 1,705 Employers' files ("E.R." files)

were open at 31st March, 1948 and 1,579 returns had been received.

From the information thus supplied, 6,718 personal files for

assessment to Salaries and Annuities Tax had been opened and

6,020 individual return forms sent out. 5,441 returns were

received back in the Department from the persons concerned and,

of these, 4,091 were dealt with during the year. 2,886 were

found to be exempt by reason of allowances, and assessments

to tax totalling $918,538.79 were made in the remaining 1,205

cases. 1,350 returns remained to be dealt with at 31st March,

1948, and 579 returns had not yet been received back in the

Department.

24. The staff position in this Section has not been as