310171-1941-Supplementary-Bills-read-a-first-time--War-Revenue — Page 36

521

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Table of Correspondence,--Continued.

Clause of Bill.

Source if any.

9

No. 13 of 1940,

s. 9.

10

11

Remarks.

(2) The words "held or exercised within the Colony" are deleted from paragraph (a).

(3) In the third proviso the total

exemption of income not exceed- ing $4,800 is reduced to income not exceeding $3,600.

(4) The

original fourth proviso exempting "any income which is liable to Income Tax in the United Kingdom or in any other part of the British Empire" has been removed from this clause; but its effect has been preserved and clarified in the new clause 12.

(5) The fourth proviso is new. It will exempt from salaries tax

any gratuity received on termination of employment or any sum received by way of commutation of pension or an- nuity or any sum withdrawn from provident fund". This is considered fair and also advisable in view of the word gratuity in clause 9 (1) (i).

а

(6) The fifth proviso re-enacts, with

necessary change in the section reference number, the fifth pro- viso introduced by Ordinance No. 29 of 1940.

(7) The sixth proviso is new. It is considered fair and is intended to cover the case of the non- resident or temporary resident.

This section is unchanged.

This clause is new. It provides for the aggregation of the salaries of husband and wife where both are employed locally, with provision that where necessary the wife should pay her own share of the combined tax.

This clause is new. It replaces sec. tion 10 of the principal 1940 Ordinance as enacted by section 3 of Ordinance No. 29 of 1940, which provided for a system of assessment based on residence in favour of assessment on actual as against theoretical income. The latter system has proved on trial to be unsatisfactory in practice and has given rise to discontent and ill-feeling. The

new clause places assessment on a simpler basis than the clause replaced.