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31 1936

FINANCE ACT, 1936

PART I.

Income Tax.

Income tax and sur-tax for the year 1936-37.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1936, at the rate of four shillings and six pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1936, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates as those at which it was charged for the year beginning on the 6th day of April, 1935.

(3) The several statutory and other provisions which were in force during the year beginning on the 6th day of April, 1935, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1936.

Certain assessments on officers of local authorities.

2. —(1) In this section the word “salary” has the meaning given to it for the purposes of the Local Services (Temporary Economies) Act, 1934 (No. 16 of 1934), by sub-section (1) of section 3 of that Act as modified or qualified by the subsequent sub-sections of the said section.

(2) This section applies to every person who, for the year beginning on the 6th day of April, 1934, was entitled under sub-section (2) of section 3 of the Finance Act, 1934 (No. 31 of 1934), to the deduction mentioned in that sub-section and was charged for both the said year beginning on the 6th day of April, 1934, and the year beginning on the 6th day of April, 1935, under Schedule E of the Income Tax Act, 1918, by reference to the income of the year which was, in the case of each such year, the preceding year.

(3) Where the aggregate amount (in this sub-section referred to as the first aggregate) of—

(a) the income as computed for the purpose of the assessments made under Schedule E of the Income Tax Act, 1918, for the year beginning on the 6th day of April, 1934, upon a person to whom this section applies in respect of his salary, and

(b) the income as computed for the purpose of the assessments made under the said Schedule E for the year beginning on the 6th day of April, 1935, upon such person in respect of his salary,

exceeds the aggregate amount (in this sub-section referred to as the second aggregate) of—

(c) the salary (as reduced under the Local Services (Temporary Economies) Act, 1934 ) actually earned by such person for the year beginning on the 6th day of April, 1933, and

(d) the salary (as reduced as aforesaid) actually earned bysuch person for the year beginning on the 6th day of April, 1934,

the amount by which the first aggregate exceeds the second aggregate may, unless allowance for income tax in respect thereof has been given otherwise, be treated as a deduction in computing the amount of the income of such person assessable to income tax for the year beginning on the 6th day of April, 1936, in respect of his salary.

(4) Where the aggregate amount (in this sub-section referred to as the first aggregate) of—

(a) the salary (as reduced under the Local Services (Temporary Economies) Act, 1934 ) actually earned by a per son to whom this section applies for the year beginning on the 6th day of April, 1933, and

(b) the salary (as reduced as aforesaid) actually earned by such person for the year beginning on the 6th day of April, 1934,

exceeds the aggregate amount (in this sub-section referred to as the second aggregate) of—

(c) the income as computed for the purpose of the assessments made under Schedule E of the Income Tax Act, 1918, (as adjusted by repayment or otherwise) for the year beginning on the 6th day of April, 1934, upon such person in respect of his salary, and

(d) the income, as computed for the purpose of the assessments made under the said Schedule E (as adjusted by repayment or otherwise) for the year beginning on the 6th day of April, 1935, upon such person in respect of his salary,

the amount by which the first aggregate exceeds the second aggregate may be treated as an addition in computing the amount of the income of such person assessable to income tax for the year beginning on the 6th day of April, 1936, in respect of his salary.

Extension of certain time limits for making assessments.

3. —(1) Section 8 (which relates to time limits for making assessments) of the Finance Act, 1925 (No. 28 of 1925), shall be and is hereby amended by—

(a) deleting in sub-section (1) the words “not later than six years after the expiration of the year of assessment”, and

(b) deleting in sub-section (2) the words “not later than six years after the end of the year for which the person surcharged ought to have been charged”, and

(c) deleting in sub-section (3) the words “not later than six years after the end of the year of assessment”.

(2) Rule 18 (as amended by section 5 of the Finance Act, 1932 (No. 20 of 1932)) of the General Rules applicable to Schedules A, B, C, D, and E, of the Income Tax Act, 1918, shall be and is hereby amended by—

(a) deleting in paragraph (1) the words “one or more of the six years next preceding that year” and inserting in the said paragraph, in lieu of the said words so deleted, the words “previous year not earlier than the year beginning on the 6th day of April, 1922”, and

(b) deleting in paragraph (2) the words “later than six years after the expiration of the year of assessment, nor in any case”.

(3) Sub-section (3) of section 8 of the Finance Act, 1925 (No. 28 of 1925), shall, in its application to sur-tax by virtue of sub-section (3) of section 3 of the Finance Act, 1928 (No. 11 of 1928), have effect with and subject to the amendment thereof made by sub-section (1) of this section.

Alteration of allowance in respect of children.

4. —Sub-section (3) (which amends the sub-section next hereinafter-mentioned) of section 3 of the Finance Act, 1932 (No. 20 of 1932), is hereby repealed, and in lieu thereof it is hereby enacted that sub-section (1) (which relates to allowances in respect of children) of section 21 of the Finance Act, 1920, shall be construed and have effect as if the words “each such child to a deduction of sixty pounds” were substituted therein for the words “one child to a deduction of thirty-six pounds and in respect of each subsequent child to a deduction of twenty-seven pounds.”

Extension of allowance for wear and tear of machinery.

5. —Throughout Rules 6 and 7 (which relate to the allowance of deductions in respect of the wear and tear of machinery and plant and in respect of the replacement of obsolete machinery and plant) of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, every reference to the profits or gains of a trade shall be construed as including profits or gains of a profession or vocation chargeable to income tax under the said Schedule D, and the said Rules 6 and 7 shall apply and have effect accordingly.

Relief from double income tax on profits from the business of air transport.

6. Section 4 (which relates to relief from double income tax on profits from the business of shipping) of the Finance Act, 1927 (No. 18 of 1927), shall apply in relation to profits or gains arising from the business of air transport in like manner in all respects as it applies in relation to profits or gains arising from the business of shipping, and, in order to give effect to such application, the said section 4 is hereby amended as follows, that is to say:—

(a) by the insertion in sub-section (1) of the words “or the business of air transport” after the words “business of shipping”, and

(b) by the insertion in sub-section (6) of the words “the expression ‘business of air transport’ means the business carried on by an owner of aircraft” after the words “owner of ships”, and

(c) by the deletion of the word “definition” where it occurs in the said sub-section (6) and the insertion in that sub-section of the word “sub-section” in lieu of the word so deleted.