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Ord. No. 43/89
INLAND REVENUE (AMENDMENT) (NO. 3)
(a) under subsection (2)(a), the spouse who would have been chargeable to
salaries tax in the absence of such an election;
(b) under subsection (2)(b), the spouse who is nominated by them, shall be chargeable to salaries tax in respect of such aggregated net chargeable income.
(4) Where a husband or wife is deceased an executor shall have the same right to make an election under subsection (2) as the deceased would have had if the deceased had not died.
(5) For the purposes of subsection (3), where an election is made under subsection (2) by a husband and wife who married one another in the year of assessment to which the election relates, they shall be deemed, for the purposes of ascertaining their aggregated net chargeable income for that year, to have married at the commencement of that year.
The time and manner in which an election or the withdrawal
of an election for joint assessment is to be made
11. (1) An election shall be made in the specified form jointly by the husband and wife and, subject to subsection (3), may be withdrawn by them jointly by notice in writing given to the Commissioner.
(2) An election shall relate to the year of assessment specified in such form and it, and any withdrawal thereof under this section, may be made at any time—
(a) within that year of assessment or the following year of assessment; or (b) before the expiration of a period of one month following the time when the assessment for the year of assessment becomes final and conclusive under section 70, whichever is the later, or within such further time, if any, as the Commissioner may allow as being reasonable in the circumstances.
(3) Where an election is withdrawn under this section it shall, for the purpose of assessing the net chargeable income of the husband and wife, be deemed never to have been made and any assessment made prior to such withdrawal on the basis of the election may be adjusted by the Commissioner to take account of the withdrawal.
(4) A husband and wife who under this section have withdrawn an election may not again make an election in relation to the year of assessment to which the withdrawn election relates.
(5) In this section "election" means an election made under section 10(2) and, where a nomination under section 10(3)(b) is required, includes such nomination.".
Adjustments to assessable income
4. Section 12(3) is amended by repealing "If in the case of a husband and wife, not being a wife living apart from her husband" and substituting "If in the case of a husband and wife who have made an election under section 10(2)”.
Treatment of losses
5.
Section 12A is amended by repealing subsection (4) and substituting—
"(4) Where in any year of assessment the net chargeable incomes of the husband and wife are aggregated by reason of an election made under section 10(2), any excess carried forward into that year under this section shall-
INLAND REVENUE (AMENDMENT) (NO. 3)
Ord. No. 43/89
A417
(a) be set off primarily against the assessable income of the spouse whose deductions resulted in the excess and then, so far as it cannot be so set off, against the assessable income of the other spouse; and
(b) then, and so far as it cannot be set off in accordance with paragraph (a)—– (i) where no election is made under section 10(2) in respect of the following year of assessment, in accordance with subsection (3); or
(ii) where an election is made under section 10(2) in respect of the following year of assessment, in accordance with paragraph (a),
and so on from year to year until the excess has been completely set off.".
Ascertainment of net chargeable income
6.
Section 12B is amended-
(a) in subsection (1)(b) by repealing "section 42B(1)” and substituting “Part V”;
and
(b) by repealing subsections (2) and (3) and substituting--
"(2) In the case of a person chargeable to salaries tax under section 10(3), that person and his or her spouse shall have but one net chargeable income, and it shall be the amount arrived at after deducting from the aggregate of their net assessable incomes-
Charitable donation
7.
(a) such approved charitable donations as are provided for under
section 12BA; and
(b) such allowances as are under Part V permitted in their case.".
Section 12BA is amended-
(a) by repealing subsection (1) and substituting-
"(1) Subject to subsections (2) and (3), the amount of charitable donations that, in ascertaining net chargeable income, may be deducted— (a) in the case of a person whose assessable income is aggregated with that of his or her spouse by reason of an election made under section 10(2), from the aggregate of their net assessable incomes; and
(b) in the case of any other person, from the net assessable income of
that person,
shall be the aggregate of approved charitable donations which are made during that year by that person and by his or her spouse, if in any case such aggregate amount is not less than $100.";
(b) in subsection (2) by repealing "the form specified by the Board of Inland
Revenue" and substituting "the specified form”;
(c) by repealing subsection (3)(b)(ii) and substituting—
"(ii) in the case of a husband and wife who have made an election under section 10(2), the aggregate of the assessable incomes of both spouses as reduced in each case by the deductions provided for under section 12(1)(a) and (b)."; and
(d) by adding after subsection (3)—
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