XN000022-1974-12-13 — Page 9

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FRIDAY, DECEMBER 13, 1974

+HOWEVER, THE PROPOSED LEGISLATION MAKES ALLOWANCE FOR THIS AND ENABLES BUSINESSMEN TO ASK THAT PROVISIONAL TAX BE STOOD-OVER WHERE THE ACTUAL PROFITS FOR A YEAR OF ASSESSMENT ARE 80 PER CENT OR LESS THAN 80 PER CENT OF THE PROFITS OF THE PRECEDING YEAR. THIS STAND-OVER ALSO APPLIES IN THE CASE WHERE THE ACTUAL PROFITS ARE LIKELY TO BE LESS THAN 80 PER CENT.+

IN THESE CIRCUMSTANCES, THE SPOKESMAN SAID, THE FIRM OR BUSINESSMAN WOULD BE ASKED TO PAY ONLY PROVISIONAL TAX ON WHAT HE HAD EARNED UP TO THE TIME THE PROVISIONAL TAX DEMAND NOTE WAS DUE FOR PAYMENT.

THE TABLE BELOW ILLUSTRATES WHAT THE POSITION IS WHEN PROFITS ARE FALLING EACH YEAR

YEAR ENDED ACTUAL PROFIT

31ST MARCH

PROVISIONAL TAX

PROVISIONAL TAX PAYABLE

BALANCE OF FINAL TAX

1975

1976

1977

1978

1979

$250,000

$200,000

$37,500

JAN. 1976

$140,000

$30,000

JAN. 1977

$100,000

$21,000

JAN. 1978

$ 80,000

$15,000

JAN. 1979

$7,500

$9,000

$6,000

- $3,000

IN THIS EXAMPLE, THE PROFITS FOR THE YEARS 1976, 1977, 1978

AND 1979 ARE RESPECTIVELY 80 PER CENT, 70 PER CENT, 71.4 PER CENT AND 80 PER CENT OF THOSE FOR THE PRECEDING YEARS AND THE BUSINESSMAN WOULD, THEREFORE, BE ENTITLED TO ASK FOR STAND-OVER OF AN APPROPRIATE PROPORTION OF HIS PROVISIONAL TAX BILLS.

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