DETAILS
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Wednesday, May 10, 1972
CHANGE IN BASIS OF SALARIES TAX ASSESSMENT
Has Yet To Be Worked Out Mr. Haddon-Cave
The Financial Secretary, the Hon. C.P. Haddon-Cave, said today
details of the change in the basis of assossing salaries tax proposed by
him in his Budget speech had yet to be worked out, embodied in legislation
and put to the Legislative Council for enactment,
Ho was speaking in the Legislative Council in reply to the Hon.
G.M.B. Salmon who had asked whether, under the Financial Secretary's proposels,
deductions for premiums for life assurance and charitable donations would
be allowed for the current year ending March 31, 1973.
Mr. Haddon-Cave said both the income and the deductible allowances
for the year ending March 31, 1973 would not be used as the basis of a
final assessment to tax in respect of the first year after transition,
namely 1973-74.
"In that year, provisional tax will be calculated with reference
to income earned in 1972-73 and deductible allowances based on the circumstances
of the taxpayer in that year.
"But his final assessment will be based on the actual income earnod
in 1973-74 and the deductions for which he is eligible in that year, "he said.
In other words, he said, so far as the great majority of taxpayers
who are in continuing employment are concerned, they will be assessed to
tax in 1972-73 on the present preceding year basis using 1971-72 figures.
In 1973-74, they will be finally assessed on the basis of 1973-74
figures of both income and deductible allowances, he added.
"In each of these years of assessment, the Commissioner of Inland
Revenue will still be concerned with one year's income and one year's deductions
only."
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