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Group Title: West Indies gazette
Title: The West Indies gazette
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00076857/00031
 Material Information
Title: The West Indies gazette
Physical Description: : ; 34 cm.
Language: English
Creator: West Indies (Federation)
Publisher: Govt. Print. Off.
Place of Publication: Port of Spain Trinidad
Publication Date: June 25, 1958
 Subjects
Subject: Politics and government -- Periodicals -- West Indies (Federation)   ( lcsh )
Spatial Coverage: Trinidad and Tobago -- Trinidad
 Notes
Dates or Sequential Designation: v.1- Jan. 3, 1958-
General Note: Includes supplements consisting of bills, ordinances, statutory rules & orders, etc.
 Record Information
Bibliographic ID: UF00076857
Volume ID: VID00031
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ltuf - ABV7930
oclc - 01646171
alephbibnum - 000328383

Table of Contents
    Table of Contents
        Page 63
        Page 64
    The Income Tax (federal Emoluments) Bill
        A-1
        A-2
        A-3
        A-4
        A-5
        A-6
        A-7
        A-8
        A-9
        A-10
        A-11
        A-12
        A-13
        A-14
        A-15
        A-16
        A-17
        A-18
        A-19
        A-20
        A-21
        A-22
        A-23
        A-24
        A-25
        A-26
        A-27
        A-28
        A-29
        A-30
        A-31
        A-32
        A-33
        A-34
        A-35
        A-36
        A-37
        A-38
        A-39
        A-40
        A-41
        A-42
        A-43
        A-44
        A-45
        A-46
        A-47
        A-48
        A-49
        A-50
        A-51
        A-52
    The Supplementary Appropriation Bill
        B-1
        B-2
        B-3
        B-4
Full Text

EXTRAORDINARY


The West Indies


VOL. 1


TABLE OF CONTENTS
GAZETTE NOTICE
SUBJECT MATTER


89 Publication of Bills ...


... ... ... 63


89
PUBLICATION OF BILLS
NOTICE is hereby given by the Clerk to the House of Representatives that the following Bills are published in this
Gazette for public information: -
(1) The Income Tax (Federal Emoluments) Bill.
(2) The Supplementary Appropriation Bill.


GOVERNMENT PRaTING OFFICE, TRWIDAD, B.W.I.-1958


77
(,1 7a p


No.







The Income Tax (Federal Emoluments) Bill


THE WEST INDIES


THE INCOME TAX (FEDERAL EMOLUMENTS) BILL


OBJECTS AND REASONS

The object of this Bill is to provide for the levying
of tax upon income derived from the sources specified in
paragraph 9 of the Exclusive Legislative List, that is to say,
emoluments and allowances paid from federal funds to mem-
bers of the Federal Legislature and of the public service of
the Federation. The purpose of the legislation is not to
provide for a new form of taxation, but simply to ensure
that tax on income derived from federal funds should accrue
to federal, and not, territorial revenue. In view of this,
and of the fact that by far the majority of the persons who
will be liable to the tax will reside in Trinidad, the Bill does
not introduce a new scheme of principles or rates and
allowances but merely adopts the system in force in Trinidad.

The Bill therefore reproduces the provisions of
the Income Tax Ordinance of Trinidad and Tobago (Chapter
33 No. 1), subject to such modifications as are necessarily
required by the fact that the law is being applied to federal
circumstances. The modifications follow the general
principle that those provisions of the Trinidad Ordinance
should be omitted which, by reason of the special nature of
the income which may be taxed under federal law, cannot
under any circumstances apply, as for example, provisions
relating to company dividends. In the result a number of
provisions of the 'Trinidad Ordinance appear in the Bill
because they are theoretically applicable although in practice
it is not likely that any case falling under them will arise.

Insofar as the Bill applies to a person whose entire
income is derived from the source specified in paragraph 9 of
the Exclusive List, the liability of the taxpayer is exactly the
same as if he were liable under the law of Trinidad and
Tobago. When, however, the person in receipt of income
liable to tax under the Bill is also in receipt of other income
liable to tax under one or other of the income tax laws of







2 The Income Tax (Federal Emoluments) Bill

the various Territories, the Bill provides in rule 4 of the
Second Schedule, a formula whereby the tax payable to the
Federation may be calculated. This formula is based upon the
principle that the imposition of federal income tax should
not alter a taxpayer's total tax liability in respect of a given
total income to any greater extent than results directly from
the application of federal rates and allowances to the income
or part thereof in substitution for the rates and allowances
applicable had no federal law been enacted. The principle
adopted involves the proposition that a taxpayer should not
receive personal allowances twice in full and the formula
therefore has the effect of giving the taxpayer the benefit
of a proportion of the total federal allowances calculated
upon the proportion of federal income to total income.
Federal legislation cannot, however, affect non-federal
income or the tax thereon. The formula therefore does not
regulate the amount of tax payable under territorial income
tax laws.

Rule 5 of the Second Schedule deals with the special
case of a married woman who is in receipt of federal income
and who lives with her husband. In such cases the standard
practice in all Territories is to aggregate the incomes of
husband and wife and to treat the husband as the sole tax-
payer entitled to one set of personal allowances. When such
a married woman is in receipt of federal income and her
husband is in receipt only of income liable to tax under the
law of the Territory of residence, the rule provides that for
the purpose of applying the formula in rule 4 so as to deter-
mine the amount of tax payable by the wife on her federal
income, the husband and wife shall be regarded as one tax-
payer represented by the husband and therefore entitled only
to a proportion of the federal personal allowances (applicable
to a married man) calculated on the proportion of federal
to total income.

Clause 9 of the Bill exempts the emoluments of
the Governor-General from tax under the Bill and under
any of the income tax laws of the Territories, and also
exempts any income liable under the Bill, from tax under
any Territorial law imposing income tax.

Clause 44 of the Bill provides that the tax shall
be deducted at source and the Third Schedule contains rules








The Income Tax (Federal Emoluments) Bill 3

regulating the manner in which the deductions shall be cal-
culated and made. These provisions establish what is
commonly known as a P.A.Y.E. system. In as much as all
income liable to tax under the Bill is to be collected by this
method it has been thought appropriate to provide that the
tax shall be levied upon the income of the year in respect
of which the tax is payable, and the necessary modifications
to the Trinidad provisions embodied in the Bill, have been
made.









4 The Income Tax (Federal Emoluments) Bill



THE WEST INDIES


ACT No. of 1958

THE INCOME TAX (FEDERAL EMOLUMENTS) BILL


ARRANGEMENT OF CLAUSES
Clause
1. Short title and commencement.
2. Application to Turks and Caicos and Cayman Islands.
3. Interpretation.
-1. Appointment of administrative authority.
5. Official secrecy.
6. Charge of income tax.
7. Residents.
8. Basis of assessment.
9. Exemptions.
10. Deductions allowed.
11. Allowance for wear and tear.
12. Deductions not to be allowed.
13. Deduction for individuals.
14. Deduction for wife-Maintenance and alimony-Deduction for
children-Deduction in respect of relatives taking charge of
widower's or widow's children or acting as housekeeper-
Deduction in respect of dependent relatives.
15. Deduction in respect of life insurance and contribution to Widows'
and Orphans' fund.
16. Deduction in respect of wife's earned income.
17. Deductions to be made only in the case of residents and non-resident
British subjects.
18. Wife's income.
19. Rates as per schedule.
20. Chargeability of trustees, etc.
21. Chargeability of agent of person residing out of the Federation.
22. Acts, etc., to be done by trustees, etc.
23. Lists to be prepared by representative or agent.
24. Agents, etc., of non-residents to be assessed.
25. Indemnification of representative.
26. Deceased persons.
27. Artificial transactions, transfers to minors and in trust.
28. Returns of personal incomes.








The Income Tax (Federal Emoluments) Bill 5


29 Power of Commissioner to require returns.
30. Commissioner to make assessments-Acceptance of return-Refusal
of return-Assessment in default of -return-Additional tax for
non-return of income-Commissioner may remit additional tax-
Judge's discretion re additional tax.
31. Appointment of agent in the United Kingdom.
32. Lists of persons assessed and notices of assessment.
33. Notices to be served on persons assessed-Objections to assessment.
34. Appeals against assessments-Notice of appeal and delay for
appealing-Attendance of appellant-Notice of date of hearing to
be given to Commissioner and the appellant-Burden of proof-
Judge's power as to assessment-Notice to appellant of Judge's
assessment-Mode of hearing appeal-Costs of appeal-Finality of
appeal-Power to state case-Rules-Appellant to give security
for payment of tax.
35. Assessments, etc., not void by reason of errors therein in names and
descriptions.
36. Omissions and undercharges may be rectified within three years.
37. Circumstances under which repayment may be made.
38. Relief in respect of United Kingdom Income tax-Certificate of
United Kingdom Commissioners-Computation of rate of tax.
39. Relief in respect of Commonwealth income tax-Residents-Non-
residents-Commonwealth income tax defined-Computation of rate
of tax-Resident defined.
40. Period within which a claim may be made for relief from double
taxation.
41. Arrangements for relief from double taxation of income.
42. Tax credits, Interpretation-General requirement of residence-
Limits on total credit-Effect on computation of income of
allowance of credit-Miscellaneous.
43. Power of Commissioner to require schedule of particulars-Power
of Commissioner to require persons to attend before him.
44. Tax payable by deduction at source.
45. Date of payment-Procedure in cases where objection or appeal is
Spending-Collection of tax after determination of objection or
appeal.
46. Penalty for non-payment of tax; and enforcement of payment.
47. Recovery of tax.
48. Issue of warrants to enforce payment.
49. When assessment has already been made-When assessment has not
been made-Charging tax during a chargeable year and before
assessment.
50. Construction.
51. Certificates-Judgments.








6 The Income Tax (Federal Emoluments) Bill

52. Garnishments-Service of garnishees.
53. Signatures of notices.
54. Service of notice.
55. False statements and returns.
56. Penalties for offences.
57. Limitation of time for prosecutions.
58. Saving for criminal proceedings.
59. Governor-General may remit tax.
60. Regulations.



A Bill intituled

An Act to provide for levying income tax upon
income derived from the sources specified in paragraph 9
of the Exclusive Legislative List in the Third Schedule to the
Constitution.

Be it enacted by the Queen's Most Excellent
Majesty, by and with the advice and consent of the Senate
and the House of Representatives of The West Indies, and
by the authority of the same, as follows:-

Short title 1. (1) This Act may be cited as the Income Tax (Federal
and cent. Emoluments) Act, 1958.
mencement.

(2) This Act shall be deemed to have come into
operation on the 3rd day of January, 1958.

Application 2. This Act shall apply to the Turks and Caicos
to Turks
and Caicos Islands and to the Cayman Islands.
and
Cayman
Islands.

Interpreta- 3. In this Act, unless the context otherwise
tion. requires-

"body of persons" means any body politic, cor-
porate, or collegiate and any company, fraternity,
fellowship or society of persons whether corporate
or not corporate;
"chargeable income" means the aggregate
amount of the income of any person from the source








The Income Tax (Federal Emoluments) Bill 7

specified in section 6 of this Act remaining after
allowing the appropriate deductions and exemptions
under this Act;
"Commissioner" means the Commissioner or
Commissioners charged with the administration of
this Act;
"company" means any company incorporated or
registered under any law in force in the Federation,
and any company which, though incorporated or
registered outside the Federation, carries on busi-
ness or has an office or place of business therein:
"earned income" means, in relation to any
individual, any income arising in respect of-

(a) any gains or profits from any employment,
including any contribution of the employee
paid by the employer on behalf of the
employee to an approved fund or scheme
referred to in paragraph (c) of subsection (1)
of section 15 of this Act and the estimated
annual value of any quarters or board,
residence or of any other allowance granted
in respect of employment whether in money
or otherwise, but not including the payment
for any passage from or to the Federation for
the purpose of leave granted in respect of the
employment where such passage is actually
utilised; or

(b) any pension, superannuation or other allow-
ance, deferred pay or compensation for loss
of office given in respect of the past services
of the individual or of the husband or parent
of the individual or given to the individual
in respect of the past services of any deceased
person, whether the individual or husband or
parent of the individual shall have contributed
to such pension, superannuation or other
allowance or not;
"guardian" in relation to an infant, includes
parent;







The Income Tax (Federal Emoluments) Bill


"incapacitated person" means any infant,
married woman, person of unsound mind, idiot or
insane person;
"income tax" includes surtax and any other tax,
however described, which is imposed, charged or
levied upon income;
"income year" means any year following the 31st
day of December, 1957 in respect of which was paid
the income in relation to which the expression is
used;
"law of the Territory of residence" does not
include this Act;
"person" includes a body of persons;
"personal allowances" means-

(a) in relation to federal income, the allowances
provided for by sections 13, 14, 15, and 16 of
this Act;

(b) in relation to territorial income the allowances
provided for from time to time under the
provisions specified in the First Schedule of
this Act.

"Territory of residence" means the Territory in
which the taxpayer ordinarily resides during the
income year, and the term "territorial" shall be
construed accordingly.

Appoint- 4. For the due administration of this Act the
ment of Governor-General may appoint a Commissioner or Commis-
trative sioners and such other officers and persons as may be
authority, necessary and shall furnish such Commissioner or Commis-
sioners with warrants of appointment under his hand.

Official 5. (1) (a) Every person having any official duty or
secrecy. being employed in the administration of this Act shall regard
and deal with all documents, information, returns, assessment
list, and copies of such lists relating to the income or items
of the income of any person, as secret and confidential, and
shall make and subscribe a declaration in the form prescribed
to that effect.








The Income Tax (Federal Emoluments) Bill 9

(b) Every such oath as is required by this section
may be made and subscribed-

(i) by the Commissioner, before the Regis-
trar of the Federal Supreme Court, and

(ii) by any person other than the Commis-
sioner, before the Commissioner who is
hereby authorised to administer such
oath.

(2) Every person having possession of or control
over any document, information, returns, or assessment lists
or copies of such lists relating to the income or items of in-
come of any person who at any time communicates or at-
tempts to communicate such information or anything
contained in such documents, returns, lists or copies to any
person-

(a) other than a person to whom he is authorised
by the Governor-General to communicate it,
or

(b) otherwise than for the purposes of this Act,
shall be guilty of an offence.

(3) Where, under any law in force in any Common-
wealth country or in any place under Her Majesty's protec-
tion, provision is made for the allowance of relief from income
tax in respect of the payment of income tax in the Federation
the obligation as to secrecy imposed by this section shall not
prevent the disclosure to the authorised officers of the
Government in that Commonwealth country or in that place
under Her Majesty's protection of such facts as may be
necessary to enable the proper relief to be given in cases
where relief is claimed from income tax in the Federation or
from income tax in that part or place aforesaid.

6. Income tax shall, subject to the provisions of this Charge of
Act, be payable in accordance with the rules specified in the income tax.
Second Schedule to this Act, upon earned income, whether
received in the Federation or not, derived from emohunents
or allowances (including pensions, gratuities and other like







The Income Ta&y (Federal Emoluments) Bill


allowances) paid on or after the 3rd day of January, 1958
from the public funds of the Federation to the President,
Vice-President or a member of the Senate, or to the Speaker,
Deputy Speaker or a member of the House of Representatives
or to persons who are in the service of the Crown in respect
of the government of the Federation, which service, for the
purposes of this Act, includes service as a judge of any
federal court or as a member of the Council of State.
Residents. 7. For the purposes of this Act a person shall be
deemed to be resident in the Federation who-

(i) resides in any of the Territories, or

(ii) is in the service of the Crown in respect
of the government of the Federation in
an office the duties of which require that
he shall reside outside the Federation
and who immediately before his appoint-
ment to any such office was normally
resident in a Territory, and for the
purposes of this Act that Territory shall
be deemed to be the Territory of residence
for such person for any income year
during which such person was so required
to reside outside the Federation.
Basis of 8. Subject to the provisions of this Act, tax in
assessment. respect of the year 1958 and each succeeding year shall be
charged, levied and collected, upon the chargeable income of
any person in respect of such year whether such income is
received in such year or in any subsequent year.
Exemptions 9. (1.) The official emoluments received by the officer
administering the government of the Federation in respect
of the period in which he is administering the government,
and the official emoluments drawn by the Governor-General
in respect of any period spent on leave, shall be exempt from
tax under this Act and under any other law in force in any
Territory which provides for the levying of income tax.

(2) Any income liable to tax under section 6 of this Act
shall be exempt from tax under any other law in force in any
Territory which provides for the levying of income tax.







The Income Tax (Federal Emoluments) Bill


10. (1) For the purpose of ascertaining the chargeable Deductions
income of any person there shall be deducted all outgoings
and expenses wholly and exclusively incurred during the
income year by such person in the production of the income,
including-

(a) sums paid by such person by way of interest
upon any money borrowed by him, where the
Commissioner is satisfied that the interest
was paid on capital employed in acquiring
the income:

Provided that-

(i) the income of the person who receives or
is entitled to receive the interest is
specifically exempted from tax under the
law of the Territory of residence of the
taxpayer, or

(ii) where such person's income is not so
exempt, the interest is chargeable to tax
under the law of the Territory of resi-
dence of the taxpayer;

(b) rent paid by any tenant of land or buildings
occupied by him for the purpose of acquiring
the income;

(c) where any person engaged in any trade,
business, profession, or vocation has expended
any sum in replacing any plant or machinery
which was used or employed in such trade,
business, profession, or vocation, and which
has become obsolete, an amount equivalent to
the cost of the plant or machinery replaced,
after deducting from that cost such sum as
shall represent the total depreciation which
has occurred by reason of exhaustion or wear
and tear since the date of purchase of such
plant and machinery and any sum realized by
the sale thereof;







The Income Tax (Federal Emoluments) Bill


(d) any sum expended for repair of premises,
plant, and machinery employed in acquiring
the income or for the renewal, repair, or
alteration of any implement, utensil, or article
so employed;

(e) annuities or other annual payments paid out
of income liable to tax under section 6 of this
Act and whether payable within or out of the
Federation, either as a charge on any property
of the person paying the same by virtue of
any deed or will or otherwise, or as a reserva-
tion thereout, or as a personal debt or obliga-
tion by virtue of any contract:

Provided that no voluntary allowances or
payments of any description shall be deducted;

Provided further that no deduction
under this paragraph shall exceed an amount
which bears to the total annuities and other
annual payments the same proportion as the
amount liable to tax under section 6 of this
Act bears to the amount of his total income
from all sources;

(f) rates and taxes on real estate (but not includ-
ing income tax);

(g) premiums paid on any fire insurance policy
entered into with an insurance company
approved by t h e Governor-General on
property used in acquiring the income upon
which the tax is payable;

(h) such other deductions as may be authorised
by resolution of the Senate and the House of
Representatives.

(2) The Governor-General may, by regulations,
provide for the method of calculating or estimating the
deductions allowed or prescribed under this section.







The Income Tax (Federal Emoluments) Bill


11. In ascertaining the chargeable income of any Allowance
for wear
person engaged in a trade, business, profession, or vocation, and tear.
there shall be allowed as a deduction a reasonable amount for
the exhaustion by wear and tear of any plant and machinery,
and any buildings used exclusively for housing such plant
and machinery, owned by him, arising out of the use or
employment of such plant or machinery in the trade,
business, profession, or vocation during the income year:

Provided that such plant or machinery was used
or employed in the production of such income.

12. For the purpose of ascertaining the chargeable Deductions
not to be
income of any person, no deduction shall be allowed in allowed.
respect of-

(a) domestic or private expenses;

(b) any disbursements or expenses not being
money wholly and exclusively laid out or
expended for the purpose of acquiring the
income;

(c) any capital withdrawn or any sum employed
or intended to be employed as capital;

(d) any capital employed in improvements;

(e) any sum recoverable under an insurance. or
contract of indemnity;

(f) rent of or cost of repairs to any premises or
part of premises not paid or incurred for the
purpose of acquiring the income;

(g) any amounts paid or payable in respect of the
United Kingdom income tax or surtax or
Commonwealth income tax as defined by this
Act.

13. In ascertaining the chargeable income of an Deduction
individual there shall be allowed a deduction of one thousand ivfo
two hundred dollars.







The Income Tax (Federal Emiolinments) Bill


Deduction 14. (1) In ascertaining the chargeable income of an
for
wife. individual who proves to the satisfaction of the Commissioner
that he had during the income year his wife living with him
or wholly maintained by him and that he is not entitled in
computing the amount of his income for that year for the
purposes of this Act to make any deduction in respect of the
sums paid for the maintenance of his wife under paragraph
(a) of subsection (2) hereof there shall be allowed a deduc-
tion of four hundred and eighty dollars.

Main- (2) In ascertaining the chargeable income of an
alimonyd individual who proves to the satisfactionr of the Conmmissiooner
that he had, during the income year, paid-

(a) a maintenance or separation allowance to his
wife in accordance with the terms of a
registered deed of separation or an order of
any court of competent jurisdiction, or

(b) alimony to a previous wife whose marriage
with him has been dissolved by any court of
competent jurisdiction,

there shall be allowed a deduction of such maintenance or
separation allowance or such alimony.
Deduction (3) In ascertaining the chargeable income of any
for
children, individual who proves to the satisfaction of the Commissioner
that he had the custody of and maintained at his own expense
any child born in the income year or who at the commence-
ment of that year was under the age of sixteen years or who
in the course of that year received full time instruction as a
student at a university, university college, college, school,
trade, or other technical school, or was serving as an appren-
tice under articles entered into for a period of not less than
two years, there shall be allowed a deduction-

(a) in respect of every such child who in the
course of that year resided in the Territory of
residence of the individual or resided
outside that Territory but did not receive
full time instruction as a student outside
that Territory at a university, university







The IJpcome Tax (Federal Emoluments) Bill


college, secondary school, trade or other
technical school, the sum of two hundred and
forty dollars;

(b) in respect of every such child, who has attained
the age of ten years and who in the course of
that year received full time instruction as a
student at a university, university college,
secondary school, trade or other technical
school in that Territory and for that purpose
resided away from the place where such indivi-
dual is ordinarily resident, the sum actually
paid for his board and lodging and education
in such year, but not exceeding in any case
the sum of nine hundred and sixty dollars;

(c) in respect of every such child who has
attained the age of ten years and who in the
course of that year received full time instruc-
tion as a student outside that Territory at a
university, university college, secondary
school, trade or other technical school the
sum actually paid for his board and lodging
and education in such year, but not exceeding
in any case the sum of twelve hundred
dollars:

Provided that no deduction shall be allowed under
paragraph (a) hereof in respect of any child who was
entitled in his own right to an income equal to or exceeding
two hundred and forty dollars in the income year:

Provided further that the deduction allowed
under paragraph (b) or paragraph (c) hereof, in respect of
any child who was entitled in his own right to an income
in the income year, shall not exceed the amount by which
the sum so expended on his board and lodging and education
exceeds such income:

Provided further that in calculating the income
of the child for the purpose of the foregoing provisos no
account shall be taken of any income to which the child is
entitled as the holder of a scholarship, exhibition, bursary,







16 The Income Tax (Federal Emoluments) Bill

or other similar educational endowment, or of any emolu-
ments paid to the child during his period of service as an
apprentice.

The expression "child" in this subsection includes
a step-child or an adopted child.
Deduction (4) In ascertaining the chargeable income of an
in respect
of relatives individual who proves to the satisfaction of the Commissioner
taking that during the income year he was a widower and
charge of
widower's that a female relative of his or of his deceased wife was
or widow's resident with him for the purpose of having the charge and
children or
acting as care of any child of his or in the capacity of a housekeeper,
house there shall be allowed, subject as hereinafter provided, a
deduction of two hundred dollars in respect of that female
relative:
Provided that-
(a) no deduction shall be allowed under this
subsection unless the claimant proves that no
other individual is entitled to a deduction in
respect of the female relative under the pro-
visions of this Act or if any other individual
is so entitled, that the other individual has
relinquished his claim thereto; and

(b) no deduction shall be allowed under this
subsection where the female relative is a
married woman living with her husband, and
the husband has claimed and been allowed a
deduction under the provisions of subsection
(1) of this section; and
(c) no deductions shall be allowed under this
subsection where the claimant has claimed and
been allowed in respect of the female relative
a deduction under the provisions of subsection
(5) of this section; and

(d) not more than one deduction of two hundred
dollars shall be allowed to any claimant under
this subsection in any year; and







The Income Tax (Federal Emoluments) Bill 17

(e) this subsection shall apply to a claimant being
a widow as it applies to a claimant being a
widower with the substitution of "her
deceased husband" for "his deceased wife";
and the expression "child" means a child in
respect of whom a deduction is allowed under
this Act.

(5) In ascertaining the chargeable income of an Deduction
individual who proves to the satisfaction of the Commissioner in epdecnto
that during the income year he maintained at his own expense relatives.
any person being his or his wife's father or mother (not
being an unmarried or widowed mother) or his or his wife's
aunt or grandmother or a child, brother or sister of his or
of his wife, who is incapacitated by old age or infirmity
from maintaining himself or herself, or being his or his
wife's unmarried or widowed mother whether incapacitated
or not, and in any of the above cases, being a person whose
total income from all sources does not exceed two hundred
dollars a year, there shall be allowed a deduction of two
hundred dollars in respect of each person whom he so
maintained:

Provided that-

(a) where two or more persons jointly maintain
any such person as aforesaid, the deduction
to be made under this subsection shall be
apportioned between them in proportion to
the amount or value of their respective con-
tributions towards the maintenance of that
person; and

(b) this subsection shall apply to a claimant being
a female person as it applies to a claimant
being a male person with the substitution of
"husband" for "wife".

15. (1) In ascertaining the chargeable income of any Deduction
individual who- respect
insurance
(a) has made insurance on his life or the life of and cotri-
his wife, or has contracted for any deferred Widows'
annuity on his life or the life of his wife, with and
Scom a di Ac Orphans'
any company, as defined in this Act, carrying fund.






18 The Income Tax (Federal Emoluments) Bill

on the business of life insurance, or with any
other body of persons carrying on the
business of life insurance which is legally
established in the United Kingdom or in any
Commonwealth country or in the Republic of
Ireland, or with any registered friendly
society, or with any approved body of persons
carrying on the business of life insurance; or

(b) before the first day of July, 1958 has made
insurance on his life or the life of his wife,
or has contracted for any deferred annuity
on his life or the life of his wife, with any
body of persons legally established in any
foreign country and not carrying on the
business of life insurance in the Federation;
or

(c) has made a contribution to any widows and
orphans pensions scheme under any law in
force in the Federation or in the United King-
dom or in any Commonwealth country, or to
any approved fund or scheme,

there shall be allowed a deduction of the annual amount of
the premium paid by him for such insurance or contract or of
the annual amount of such contribution, as the case may be:

Provided that the aggregate of the premiums and
contributions in respect of which relief is given to any person
under this subsection shall not exceed an amount equal to
one-sixth part of the chargeable income of such person esti-
mated in accordance with the provisions of this Act before
making the deductions specified in this section and in sec-
tions 13, 14 and 15 of this Act.

(2) For the purposes of this section a contribution of
an employee paid by an employer on behalf of the employee
to an approved fund or scheme referred to in paragraph (c)
of subsection (1) of this section shall be deemed to be a
contribution to such fund or scheme by the employee.


(3) In this section-







The Income Tax (Federal Emoluments) Bill


"approved" means approved by the Governor-
General;
"any Commonwealth country" includes India,
Pakistan, any British Protectorate or protected
State, South West Africa, and any territory adminis-
tered by any of Her Majesty's Governments under
the trusteeship system of the United Nations;
"contract" means an agreement which provides
for the payment to the individual by a company of
a pension or annuity to commence at a specified age,
or for the payment of a lump sum in lieu of such
pension or annuity;
"foreign country" means any country other
than the United Kingdom, any Commonwealth
country or the Republic of Ireland;
"pension age" means the specified age at which
the payment of a pension or annuity under a contract
is due to commence;
"registered friendly society" means a friendly
society registered under any law in force in the
Federation providing for the registration of friendly
societies.
(4) Where the insurance or contract referred to in
subsection (1) of this section was made after the first day of
July, 1958, the deduction allowed by the said subsection shall,
subject to the provisions of the said subsection, be limited
to seven per centum of the capital sum payable on the
insurance policy or contract and no such deduction shall be
allowed in respect of the insurance policy unless there is a
capital sum payable at death whether in conjunction with
any other benefit or not:

Provided that where the insurance or contract
was made for a period of not less than ten years by an
individual who has attained the age of fifty years, and-
(a) the insurance policy does not mature before
the individual attains the age of sixty-five
years; or
(b) the pension age under such contract is not
less than sixty-five years,







20, The Income Tax (Federal Emoluments) Bill

the provisions of this subsection limiting the amount of the
deduction to be allowed to seven per centum of the capital
sum payable on the insurance policy or contract shall not
apply:

Provided further that if-

(a) any such contract is surrendered before the
individual attains the pension age, the amount
payable to the individual on such surrender
shall be deemed to be part of his income for
the year in which the surrender is made;

(b) the individual who has made any such con-
tract dies before he attains the pension age,
the amount payable under the contract on
such death shall in equal shares be deemed
to be part of the income of the individual for
the year in which he died and for each of the
two years immediately preceding such year,
and the estate of the individual shall accord-
ingly be liable to be assessed by the
Commissioner at such amount or additional
amount as according to the judgment of the
Commissioner ought to be charged, and the
provisions of this Act as to notice of assess-
ment, appeal, and other proceedings shall
apply to such assessment or additional assess-
ment and to the tax charged thereunder.
Deduction 16. (1) In ascertaining the chargeable income of any in-
in respect
of wife's dividual there shall be allowed a deduction equal to the
earned amount of any earned income of his wife but not exceeding
in any case two hundred and forty dollars.

(2) A deduction shall not be allowed under subsection
(1) of this section unless the individual proves to the satis-
faction of the Commissioner that his wife has devoted sub-
stantially the whole of her time to the conduct of the trade,
business, profession or vocation or to the performance of the
duties of the employment from which such income is derived.

(3) For the purposes of this section any earned income
of an individual's wife arising in respect of any pension,








The Income Tax (Federal Emoluments) Bill


superannuation or other allowance, deferred pay or compen-
sation for loss of office given otherwise than in respect of
her past services in any office or employment or profit shall
be deemed not to be earned income of his wife.

17. Subject as hereinafter provided, no allowances Deductions
to be made
under sections 13, 14, 15 and 16 shall be made in the case of only in the
any individual who is not resident in the Federation: asde ts
and non-
Provided that the foregoing provisions shall not resident
apply in the case of any individual who satisfies the Commis- subjects.
sioner that he is a British subject, so, however, that no such
allowance or relief as aforesaid shall be given so as to reduce
the amount of the income tax payable by that individual be-
low an amount which bears the same proportion to the amount
which would be payable by him by way of tax if the tax were
chargeable on his total income from all sources, including in-
come which is not subject to income tax charged in the
Federation, as the amount of the income subject to income tax
so charged bears to the amount of his total income from all
sources.

18. The income of a married woman living with her Wife's
husband, which is liable to tax under this Act shall, if theincome.
income of the husband is also liable to tax under this Act for
the purpose of this Act, be deemed to be the income of the
husband, and shall be charged in the name of the husband
and not in her name nor in that of her trustee:

Provided that that part of the total amount of tax
charged upon the husband which bears the same proportion
to that total amount as the amount of the income of the wife
bore to the amount of the total income of the husband and
wife may, if necessary, be collected from the wife, notwith-
standing that no assessment has been made upon her.

19. There shall be levied and paid upon the chargeable Rates as
income of every person tax in accordance with the rules set cedule.
forth in the First Schedule to this Act.

20. A receiver, trustee, guardian, curator or commit- Charge-
tee in receipt of income liable to tax under section 6 ofa tus'tes,
this Act on behalf of any person, shall be chargeable to tax etc.








22 The Income Tax (Federal Emoluments) Bill

in respect of such income in like manner and to the like
amount as such person would be chargeable if he had
received such income, and every such receiver, trustee,
guardian, curator or committee shall be answerable for doing
all matters and things required to be done under this Act
for the purpose of assessment and payment of tax:

Provided that nothing in this section shall affect
the liability of any person represented by any such receiver,
trustee, guardian, curator or committee to be himself
charged to tax in his own name.
Charge- 21. A person not resident in the Federation (herein-
ability of
agent of after in this section referred to as a non-resident person),
residing whether a British subject or not, shall be assessable and
out of chargeable in the name of his trustee, guardian, curator, or
the
Federation. committee, or of any attorney, factor, agent or receiver,
whether such attorney, factor, agent or receiver has the
receipt of the income or not, in like manner and to the like
amount as such non-resident person would be assessed and
charged if he were resident in the Federation and in the
actual receipt of such income.

Acts, etc., 22. The person who is chargeable in respect of an
by trustees incapacitated person, or in whose name a non-resident is
etc. chargeable, shall be answerable for all matters required to
be done by virtue of this Act for the assessment of the
income of any person for whom he acts and for the payment
of the tax chargeable thereon.

Lists to be 23. (1) Every person who, in whatever capacity, is in
pbrepred receipt of any money or value being income arising from
tentative or the source specified in section 6 of this Act of or belonging
agent. to any other person who is chargeable in respect thereof, or
would be so chargeable if he were resident in the Federation
and not an incapacitated person, shall, whenever required
to do so by any notice from the Commissioner, prepare and
deliver within the period mentioned in such notice a list in a
form approved by the Commissioner, signed by him,
containing-

(a) a true and correct statement of all such
income;







The Income Tax (Federal Emoluments) Bill


(b) the name and address of every person to
whom the same shall belong.

(2) Every person who refuses, fails or neglects to
comply with the provisions of this section shall be guilty of
an offence.

24. Any resident agent, trustee or other person who Agents,
etc., of
transmits income liable to tax under this Act, to a non- non-
resident person shall be deemed to be the agent of such non- residetdo
resident person and shall be assessed and shall pay the tax
accordingly.

25. (1) Every person answerable under this Act for the Indemnifi-
cation of
payment of tax on behalf of another person may retain out of representa-
any money coming to his hands on behalf of such other person e.
so much thereof as shall be sufficient to pay such tax, and
shall be and is hereby indemnified against any person whatso-
ever for all payments made by him in pursuance and by
virtue of this Act.

(2) For the purposes of this section, every person who
is liable under any contract to pay money to a non-resident
shall be deemed to be the person having the control of money
and to be acting in a representative capacity for the payment
of income tax belonging to the non-resident and all money
due by him under the contract shall be deemed to be money
which comes to him on behalf of the non-resident.

26. When any person dies during the income year or Deceased
within two years after the expiration thereof, and no assess-persons.
ment has been made upon him for that year, the personal
representative of such person shall be liable for and charged
with the payment of the tax with which such person would
have been chargeable, and shall be answerable for doing all
such acts, matters and things as such person, if he were alive,
would be liable to do under this Act.

27. (1) Where the Commissioner is of opinion that any Artificial
transaction which reduces or would reduce the amount of tns
tax payable by any. person is artificial or fictitious, or that transfers to
full effect has not, in fact, been given to any disposition,in tust.ad







The Income Tax (Federal Emoluments) Bill


the Commissioner may disregard any such transaction or
disposition, and the persons concerned shall be assessable
accordingly.

(2) Where, under or by virtue of a disposition made
directly or indirectly by any disponer, the whole or any part
of what would otherwise have been the income of that dis-
poner is payable to or for the benefit, whether present or
future and whether on the fulfilment of a condition or the
happening of a contingency, or as the result of the exercise
of a power or discretion conferred on any person, or other-
wise, of a minor, such, disponer shall, nevertheless, during the
period of the minority of such minor, be liable to be taxed
in respect of the sums so payable as if the disposition had
not been made, and subsequent to such period of minority,
such disponer shall continue to be liable to be taxed in respect
of the sums so payable as if such disposition had not been
made unless the Commissioner is satisfied that the disposition
was not made for the purpose of avoiding tax.

(3) Subsections (1) and (2) of this section shall have
effect whether the transaction or disposition was effected or
made before or after the commencement of this Act.

(4) In this section, "disposition" includes any settle-
ment, trust, grant, covenant, agreement, arrangement or
transfer of assets.

(5) A discretion conferred on the Commissioner by
this section may be exercised, on appeal under section 34, by
the Judge of the Federal Supreme CourL hearing the appeal.

(6) Nothing in this section shall prevent any income
under any disposition from being treated for the purposes
of tax as the income of the person making the disposition
in any case in which this section does not apply.

Returns of 28. (1) Every person chargeable with tax under this Act
incomes. shall, on or before the prescribed date in every year, deliver
to the Commissioner a true and correct return of the whole
of his income from every source whatsoever for the income
year, and shall, if absent from the Federation, give the name
and address of an agent residing in the Federation.







The Income Tax (Federal Emoluments) Bill 25

(2) Returns required under the provisions of this
section shall be in a form approved by the Commissioner.

(3) Any person who refuses, fails or neglets to deliver
any return required under the provisions of this section shall
be guilty of an offence.

29. (1) The Commissioner may, by notice, require any Power of
Commis-
person, or the attorney of any person, or the secretary, sioner to
attorney, manager, agent or other principal officer of a cor- require
pany residing in the Federation, to make returns under this rns
Act within the time specified in such notice.

(2) Any person who, after being required by the
Commissioner to make a return, fails or neglects to do so
within the time specified, shall, whether or not any liability
to tax is involved, be guilty of an offence.

30. (1) The Commissioner shall proceed to assess every Commis-
person chargeable with the tax as soon as may be after the s*o'er to
day prescribed for delivering the returns. assess-
ments.
(2) Where a person has delivered a return, the Com-
missioner may-

(a) accept the return and make an assessment Acceptance
accordingly; or of return.

(b) refuse to accept the return and, to the best of Refusal
his judgment, determine the amount of theofreturn.
chargeable income of the person and assess
him accordingly.

(3) Where a person has not delivered a return and Assessment
ithtscin default
the Commissioner is of the opinion that such person is liable of return.
to pay tax, he may, according to the best of his judgment,
determine the amount of the chargeable income of such
person and assess him accordingly, but such assessment shall
not affect any liability otherwise incurred by such person
by reason of his refusal, failure, or neglect to deliver a return.

(4) If at any time within three years after the
expiration of the income year, the Commissioner shall make







26 The Income Tax (Federal Emoluments) Bill

an assessment which results in a person being charged to
tax for the income year in an amount in excess of the amount
of tax calculated on the basis of the return of income rendered
by such person, the Commissioner may (unless the person
assessed proves to the Commissioner's satisfaction that the
omission or incorrectness of the return did not amount to
fraud, covin, art of contrivance, or gross or wilful neglect)
charge such person, in addition to the total tax otherwise
charged in the assessment, further tax not exceeding the
amount of the excess so disclosed.

Additional (5) If any person neglects or refuses to render a return
tax for
non-return of income as required by this Act, the Commissioner may
of income. (unless such person proves to the Commissioner's satisfaction
that the neglect or refusal was for reasonable cause and ought
fairly to be excused) charge such person additional tax not
exceeding the amount of tax which would have been payable
if this subsection had not been enacted.

(6) Nothing in the preceding subsections shall be con-
strued as derogating from any other provisions of this Act.

(7) The provisions of this Act shall apply to any
additional tax charged by virtue of this section as they do to
tax ordinarily chargeable under this Act.

Commis- (8) Without prejudice to the powers conferred by
sioner may
remit section 60 the Commissioner may for reasons which may
additional appear to him sufficient, at any time remit in whole or in part
any additional tax charged under this section.

Judge's (9) A discretion to charge additional tax vested in
discretion
re addi- the Commissioner by this section may be exercised, on appeal
tional tax under section 34 by the Judge of the Federal Supreme Court:

Provided that, if the Judge shall confirm the
decision of the Commissioner to charge additional tax and
shall find that the additional tax imposed by the Com-
missioner did not exceed the maximum additional tax which
could properly be charged, the appeal as regards the
additional tax shall be dismissed.








The Income Tax (Federal Emoluments) Bill


31. For the purposes of facilitating the assessment Appoint-
ment of
of the income of persons residing in the United Kingdom, agent in
the Governor-General may appoint an agent in the United the United
Kingdom who shall make enquiries on behalf of the Com-
missioner in respect of any such person as may apply to be
dealt with through such agent, and shall ascertain and report
to the Commissioner the amount of the chargeable income of
such person in accordance with this Act, and shall forward
to the Commissioner the accounts and computations upon
which his report is based. The Commissioner, on receipt of
the report, shall enter the amount reported in the assessment
list:

Provided that if it appears to the Commissioner
that any error has occurred in the accounts or computation
he may refer the report back for further consideration:

Provided also, that nothing in this section shall
prevent the right of appeal to a Judge of the Federal Supreme
Court conferred by section 34.

32. (1) After completing his assessment, the' Comn-Lists of
persons
missioner shall prepare lists of persons liable to tax under asssessed
this Act. and notices
s At. of assess-
ment.
(2) Such lists (herein called the assessment lists)
shall contain the names and addresses of the persons assessed
to tax, the amount of the chargeable income of each person,
the amount of the tax payable by him, and such other parti-
culars as may be necessary.

33. (1) The Commissioner shall cause to be served on each Notices to
be served
person whose name appears on the assessment lists a notice on persons
addressed to him at his usual place of abode or businessassessed.
stating the amount of his chargeable income and the amount
of tax payable by him, and informing him of his rights under
the next subsection.

(2) If any person disputes the assessment he may objections
apply to the Commissioner, by notice of objection in writing, me asess-
to review and to revise the assessment upon him. Such







28 The Income Tax (Federal Emoluments) Bill

application shall state precisely the grounds of his objections
to the assessment and shall be made within twenty-one days
from the date of the service of the notice of assessment:

Provided that the Commissioner, upon being
satisfied that, owing to absence from the Territory of
residence, sickness, or other reasonable cause, the person
disputing the assessment was prevented from making the
application within such period, shall extend the period as
may be reasonable in the circumstances.

(3) On receipt of the notice of objection referred to
in subsection (2) of this section, the Commissioner may
require the person giving the notice of objection to furnish
such particulars as the Commissioner may deem necessary
with respect to the income of the person assessed, and to pro-
duce all books or other documents in his custody or under
his control relating to such income and may summon any
person who, he thinks, is able to give evidence respecting the
assessment to attend before him and may examine such
person except the clerk, agent, servant, or other person con-
fidentially employed in the affairs of the person to be charged,
on oath or otherwise.

(4) In the event of any person assessed, who has
objected to an assessment made upon him, agreeing with the
Commissioner as to the amount at which he is liable to be
assessed, the amount so agreed shall be the amount at which
such person shall stand assessed, and the assessment shall
be confirmed or amended accordingly:

Provided always, that in the event of any person
who under subsection (2) of this section, has applied to the
Commissioner for a revision of the assessment made upon him
failing to agree with the Commissioner as to the amount at
which he is liable to be assessed, his right of appeal to a
Judge of the Federal Supreme Court, under the provisions
of this Act, against the assessment made upon him, shall
remain unimpaired.







The Income Tax (Federal Emoluments) Bill 29

34. (1) Any person who, being aggrieved by an assess-Appeals
against
ment made upon him, has failed to agree with the Commis-assess-
sioner in the manner provided in subsection (4) of the last "t.c of
preceding section, may appeal against the assessment to aappealand
delay for
Judge of the Federal Supreme Court in chambers within appealing.
twenty-one days from the date of the refusal of the Com-
missioner to amend the assessment as desired and in such
case shall give notice in writing of such appeal to the
Commissioner within twenty-one days from the date of such
refusal:
Provided that, notwithstanding the lapse of sucl
period of twenty-one days, any person may appeal against
such assessment if he shows to the satisfaction of a Judge of
the Federal Supreme Court in chambers, that owing to
absence from the Territory of residence, sickness or other
reasonable cause, he was prevented from appealing or from
giving such notice to the Commissioner within such period,
and that there has been no unreasonable delay on his part.

(2) Such appeal shall be by summons, and
evidence shall be received at the hearing if tendered.

(3) Every person appealing shall attend before Attendance
the Judge in person on the day and at the time fixed for the fantel-
hearing of his appeal:

Provided that if it be proved to the satisfaction
of the Judge that, owing to absence from the Territory of
residence, sickness, or other reasonable cause, any person is
prevented from attending in person at the hearing of his
appeal on the day and at the time fixed for that purpose,
the Judge may postpone the hearing of the appeal for such
reasonable time as he thinks necessary for the attendance
of the appellant, or he may admit the appeal to be made
by any agent, clerk, or servant of the appellant, on his behalf.

(4) Thirty clear days' notice shall, unless rules made Notice of
date of
hereunder otherwise provide, be given to the Commissioner hearing to
and the appellant of the date fixed for the hearing of thebe given to
Commis-
appeal. sioner and
the appel-
lant.







The Income Tax (Federal Emoluments) Bill


Burden of (5) The onus of proving that the assessment com-
proof. plained of is excessive shall be on the appellant.

Judge's (6) If the Judge is satisfied that the appellant is
power as
to assess- overcharged he may reduce the amount of the assessment
meant. by the amount of the overcharge, and if he is satisfied that
the appellant is undercharged he may increase the amount
of the assessment by the amount of the undercharge.

Notice to (7) Notice of the amount of tax payable under the
appellant
of judge's assessment as determined by the Judge shall be served by the
assessment. Commissioner upon the appellant.

Mode of (8) All appeals shall be heard in camera, unless the
appeal. Judge shall, on the application of the appellant, otherwise
direct.

osts of (9) The costs of the appeal shall be in the discretion
appeal of the Judge hearing the appeal and shall be a sum fixed by
the Judge.

Finality of (10) The decision of the Judge hearing the appeal shall
appeal. be final:

Power to Provided that the Judge hearing such appeal
state case. may, if he so desires, and shall, on the application of the
appellant or the Commissioner, state a case on a question of
law for the opinion of the Full Court.

Rules. (11) Rules of court may be made by the authority
having for the time being power to make rules or orders.
regulating the practice and procedure of the Federal Supreme
Court for the purpose of governing such appeals and pro-
viding for the method of tendering evidence, and appointing
places for the hearing of such appeals and prescribing the
procedure to be followed on a case being stated.

Appellant (12) Notwithstanding anything contained in sub-
to give
security for section (2) of section 45 if the Judge is satisfied that
payment of tax in accordance with his decision upon the appeal may not
be recovered, the Judge may require the appellant forth-
with to furnish such security for payment of the tax, if any,







The Income Tax (Federal Emoluments) Bill 31

-which may become payable by the appellant as may seem to
the Judge to be proper. If such security is not given the
tax assessed shall become payable forthwith and shall be
recoverable forthwith.

35. (1) No assessment, warrant or other proceeding pur-Assess-
.ments. etc.,
porting to be made in accordance with the provisions of this fot voby
Act shall be quashed, or deemed to be void or voidable, forreasonof
want of form, or be affected by reason of a mistake, defect, or therein
omission therein, if the same is in substance and effect in in nmes
S. and des-
conformity with or according to the intent ana meaning of criptions.
this Act or any Act amending the same, and if the person
assessed or intended to be assessed or affected thereby is
designated therein according to common intent and under-
standing.

(2) An assessment shall not be impeached or
affected-

(a) by reason of a mistake therein as to-

(i) the name or surname of a person
liable, or
(ii) the description of any income, or
(iii) the amount of tax charged;

(b) by reason of any variance between the assess-
ment and the notice thereof:

Provided that in cases of assessment, the notice
thereof shall be duly served on the person intended to be
charged, and such notice shall contain, in substance and
.effect, the particulars on which the assessment is made.

36. Where it appears to the Commissioner that any Omissions
person liable to tax has not been assessed, or has been andgunder
assessed at a less amount than that which ought to have been be rectified
charged, the Commissioner may, within three years after the within three
-expiration of the income year assess such person at such
amount or additional amount as according to his judgment
ought to have been charged, and the provisions of this Act








32 The Income Tax (Federal Emoluments) Bill

as to notice of assessment, appeal, and other proceedings
under this Act shall apply to such assessment or additional
assessment and to the tax charged thereunder.
Circum- 37. (1) If the Commissioner is satisfied that any person
stances
under in respect of any income year has paid tax, by deduction or
which re- otherwise, in excess of the amount with which he is properly
payment
may be chargeable, the Conunissioner shall cause the amount so paid
made. in excess to be refunded to the person as soon as practicable.

(2) Except as regards sums repayable on an objection
or appeal, no repayment shall be made to any person in re-
spect of any income year as regards which that person has
failed or neglected to deliver a return or has been assessed
in a sum in excess of the amount contained in his return, pro-
vided that he has received notice of the assessment made
upon him for that year, unless it is proved to the satisfaction
of the Commissioner that such failure or neglect to deliver
a true and correct return did not proceed from any fraud or
wilful act or omission on the part of.that person.

Relief in 38. (1) Any person who has paid, by deduction or other-
respect of
United wise, or is liable to pay, tax under this Act for any income
inom x. year on any part of his income and who proves to the satis-
faction of the Commissioner that he had paid, by deduction or
otherwise, or is liable to pay income tax in the United
Kingdom for that year in respect of the same part of his
income, shall be entitled to relief from tax under this Act
paid or payable by him on that part of his income at a rate
equal to the amount by which the rate of tax appropriate to
his case under this Act exceeds half the appropriate rate of
United Kingdom tax. If, however, the rate of tax appropriate
to his case under this Act exceeds the appropriate rate of
United Kingdom tax, he shall be entitled only to relief at
a rate equal to half the appropriate rate of United Kingdom
tax:

Provided that where in the case of any individual,
but for this proviso, the amount of tax payable under this
Act after allowance of any relief as aforesaid, when added
to the amount of income tax payable in the United Kingdom
in respect of the same part of his income after allowance of
such relief as is granted by section 27 of the Finance Act,








The Income Tax (Federal Emoluments) Bill 33

1920 (which amount is hereinafter referred to as "the net
United Kingdom tax") would exceed the greater of the
amounts of tax which, but for the reliefs aforesaid, would be
payable under this Act and in the United Kingdom respec-
tively (which amounts are hereinafter referred to respective-
ly as "the gross Federal tax" and "the gross United Kingdom
tax"), the Commissioner may, if he is satisfied that special
hardship would otherwise be caused, grant such additional
relief from the tax payable under this Act as he may think
fit up to an amount which, when added to the net United
Kingdom tax, will be equivalent to the gross Federal tax or
the gross United Kingdom tax, whichever is the greater.

(2) For the purposes of this section, a certificate Certificate
of United
issued by or on behalf of the Commissioners of Inland Kingdom
Revenue in the United Kingdom shall be receivable in commis-
evidence to show what is the appropriate rate of Unitedsioners.
Kingdom tax or the net United Kingdom tax in any
particular case.

(3) For the purposes of this section, the expres-Computa-
sion "rate of tax" when applied to tax paid or payable under ton of
this Act, means the rate determined by dividing the amount tax.
of the tax paid or payable for the year (before the deduction
of any relief granted under this section) by the amount of
the income in respect of which the tax paid or payable under
this Act has been charged for that year.

39. (1) If any person resident in the Federation who has Relief in
respect
paid, by deduction or otherwise, or is liable to pay tax, of Common-
under this Act for any income year on any part of his income, wealth
proves to the satisfaction of the Commissioner that he has income tax.
paid by deduction or otherwise, or is liable to pay, Common-
wealth income tax for that year in respect of the same part
of his income, he shall be entitled to relief from tax under Residents.
this Act paid or payable by him on that part of his income at
a rate thereon to be determined as follows-

(a) if the Commonwealth rate of tax does not
exceed one-half of the rate of tax appropriate
to his case under this Act the rate at which
relief is to be given shall be the Common-
wealth rate of tax;








34 The Income Tax (Federal Emoluments) Bill

(b) in any other case the rate at which relief is
to be given shall be half the rate of tax
appropriate to his case under this Act.

ents- (2) If any person not resident in the Federation
who has paid by deduction or otherwise, or is liable to pay,
tax under this Act for any income year on any part of his
income, proves to the satisfaction of the Conmmissioner that he
has paid, by deduction or otherwise, or is liable to pay,
Commonwealth income tax for that income year in respect
of the same part of his income, he shall be entitled to relief
from tax paid or payable by him under this Act on that part
of his income at a rate thereon to be determined as follows-

(a) if the Commonwealth rate of tax appropriate
to his case does not exceed the rate of tax
appropriate to his case under this Act, the
rate at which relief is to be given shall be one-
half of the Commonwealth rate of tax;

(b) if the Commonwealth rate of tax appropriate
to his case exceeds the rate of tax appropriate
to his case under this Act, the rate at which
relief is to be given shall be equal to the
amount by which the rate of tax appropriate
to his case under this Act exceeds one-half
of the Commonwealth rate of tax.

Common- (3) For the purposes of this section, the expression
incme "Commonwealth income tax" means any income tax charged
tax under any law in force in any Commonwealth country or
defined. in any place under Her Majesty's protection( other than the
United Kingdom or the Federation), provided that the
legislature of that part or place has provided for relief in
respect of tax charged on income both in that part or place
and the Federation in a manner similar to that provided in
this section.

Computa- (4) For the purposes of this section, the rate of tax
tion of
rate of under this Act shall be computed in the manner provided
tax. by subsection (3) of the last preceding section, and the
Commonwealth rate of tax shall be computed in a similar
manner.







The Income Tax (Federal Emoluments Bill


(5) Where a person is, for any income year, resident Resident
both in the Federation and in a part or place in which deed.
Commonwealth income tax is charged, he shall, for the
purposes of this section, be deemed to be resident where,
during that year, he resides for the longer period.

40. A claim for relief under sections 38 and 39 shall withi
be made within two years from the end of the income year which a
to which it relates: claim may
for relief
Provided that such a claim, though not made from double
within the said period of two years shall be admitted if made
within six years from the end of the said income year and
within six months from the date upon which the relevant
amount of United Kingdom income tax or of Commonwealth
income tax, as the case may be, has been ascertained.

41. (1) If the Governor-General by order declares that Arrange-
ments for
arrangements specified in the order have been made with the relief from
Government of any territory outside the Federation with a double
taxation of
view to affording relief from double taxation in relation to income.
income tax and any tax of a similar character imposed by
the laws of that territory, and that it is expedient that those
arrangements should have effect, the arrangements shall have
effect in relation to income tax notwithstanding anything in
any enactment.

(2) On the making of an order under this section with
respect to arrangements relating to the United Kingdom
section 38 of this Act shall cease to have effect and shall be
deemed to have ceased to have had effect from the beginning
of the first income year for which arrangements are
expressed to apply except in so far as the arrangements
otherwise provide.

(3) On the making of an order under this section with
respect to arrangements relating to the United Kingdom,
part of the Commonwealth countries (other than the United
Kingdom or the Federation) section 39 of this Act shall cease
to have effect as respects that territory except in so far as
the arrangements otherwise provide.

(4) Any order made under his section may be revoked
by a subsequent order.







36 The Income Tax (Federal Emoluments) Bill

(5) Where any arrangements have effect by virtue of
this section, the obligation as to secrecy imposed by section
5 of this Act shall not prevent the disclosure to any autho-
rised officer of the government with which the arrangements
are made of such information as is required to be disclosed
under the arrangements.

(6) The Governor-General may make rules for carry-
ing out the provisions of any arrangements having effect
under this section.

Tax 42.(1) The provisions of this section shall have effect
credits.
Interpre- where, under arrangements having effect under section 41 of
station. this Act, tax payable in respect of any income in the terri-
tory with the Government of which the arrangements are
made is to be allowed as a credit against tax payable in
respect of that income under this Act; and in this section the
expression "foreign tax" means any tax payable in that
territory which under the arrangements is to be so allowed
and the expression "income tax" means tax chargeable under
this Act.

General (2) The amount of the income tax chargeable in
require- respect of the income shall be reduced by the amount of ihe
ment of credit:
residence.
Provided that credit shall not be allowed against
income tax for any income year unless the person entitled
to the income was resident in the Federation for that year.
Limits on (3) The credit shall not exceed the amount which
total credit
would be produced by computing the amount of the
income in accordance with the provisions of this
Act and then charging it to income tax at a rate ascer-
tained by dividing the income tax chargeable (before allow-
ance of credit under any arrangements having effect under
section 41 of this Act) on the total income of the person
entitled to the income by the amount of his total income.

(4) Without prejudice to the provisions of the pre-
ceding subsection, the total credit to be allowed to a person
for any income year for foreign tax under all arrangements
having effect under section 41 of this Act shall not exceed
the total income tax payable by him for that income year.







The Income Tax (Federal Emoluments) Bill


(5) In computing the amount of the income no deduc- Effect on
tion shall be allowed in respect of foreign tax (whether in ion taof
respect of the same or any other income), but notwithstand- income of
allowance
ing anything in the preceding provisions of this subsection of credit.
a deduction shall be allowed of any amount by which the
foreign tax in respect of the income exceeds the credit
therefore.

(6) The preceding subsection shall apply to the com-
putation of total income for the purposes of determining the
rate mentioned in subsection (3) of this section, and shall
apply thereto in relation to all income in the case of which
credit falls to be given for foreign tax under arrangements
for the time being in force under section 41 of this Act.

(7) Credit shall not be allowed under the arrange- Miscel-
ments against income tax chargeable in respect of the income
of any person for any income year if he elects that credit
shall not be allowed in the case of his income for that year.

(8) Any claim for an allowance by way of credit shall
be made not later than two years after the end of the income
year, and in the event of any dispute as to the amount
allowable the claim shall be subject to objection and appeal
in like manner as an assessment.

(9) Where the amount of any credit given under the
arrangements is rendered excessive or insufficient by reason
of any adjustment of the amount of any tax payable either
under this Act or otherwise, nothing in this Act limiting the
time for the making of assessments or claims for relief shall
apply to any assessment or claim to which the adjustment
gives rise, being an assessment or claim made not later than
two years from the time when all such assessments, adjust-
ments and other determinations have been made, whether
under this Act or otherwise, as are material in determining
whether any and if so what credit falls to be given.

43. (1) The Commissioner may, by notice in writing, Power of
require any person to furnish him within a specified time sommnis-
with a schedule containing such particulars as he may require
require for the purposes of this Act with respect to the inm- cheiul of
come of such person.







38 The Income Tax (Federal Emoluments) Bill

(2) Any person who fails or neglects duly to furnish
such schedule shall be guilty of an offence.
Power of (3) The Commissioner may, by not less than fourteen
Commis- m
sioner to days' notice in writing, require any person to attend before
require him or any person designated by him and give evidence with
persons to
attend respect to his income, and to produce all books or other docu-
before him. ments in his custody or under his control relating to such
income.

(4) Any person who, without lawful excuse, refuses
or neglects to attend or give evidence in pursuance of such
notice or to produce such books or other documents,.
or who refuses to answer any lawful question touching the
matters under consideration or knowingly or wilfully gives
any false evidence under this section, shall be guilty of an
offence.

Tax pay- 44. (1) The tax payable under this Act shall be paid by
able by
deduction way of deductions from any payments made from the public
at source, funds of the Federation of or on account of the emoluments.
or allowances specified in section 6 of this Act, being the
income upon which the tax is chargeable:

Provided that-

(i) nothing in this section shall be construed as
to affect a person's liability for the payment
of any tax payable under this Act otherwise
than by way of deduction under this section;

(ii) where after an assessment has been made in
accordance with the provisions of this Act-

(a) any amount collected by way of deduction
is found to be in excess of the amount of
tax shown in the assessment to be pay-
able, the excess shall be refunded as soon
as practicable;
(1) the amount of tax shown in the assess-
ment to be payable is found to be in
excess of the amount collected by way of
deduction, the excess may be deducted
from any subsequent payments made







The Income Tax (Federal Emoluments) Bill 39

from the public funds of the Federation
of or on account of the emoluments or
allowances specified in section 6 of this
Act.

(2) All deductions of tax payable under section 6 of
this Act shall be made in accordance with the rules set out
in the Third Schedule to this Act.

(3) The Governor-General may from time to time and
for the purposes of this section amend or revoke the rules
:set out in the Third Schedule to this Act, or make new rules.

45. (1) Subject to the provisions of section 44 of this Act Date for
the tax appearing in the assessment lists shall be payable to payment.
the Commissioner on or before the prescribed date, or dates,
-and a different date or dates may be prescribed for different
-classes of persons.

(2) Collection of any tax remaining due after an Procedure
1in cases
assessment has been made shall in cases where notice of an where
objection or an appeal has been given, remain in abeyance"' appeia
until such objection or appeal is determined: is pending.

Provided that the Commissioner may in any such
*case enforce payment of that portion of the tax (if any)
which is not in dispute.

(3) Where payment of tax in whole or in part has Collection
been held over pending the result of a notice of objection orter deter-
of an appeal, the tax outstanding under the assessment as minationof
determined on such objection or appeal, as the case may be, objection
:shall be payable within thirty days from the receipt by the or appeal
person assessed of the notification of the tax payable and
if such tax is not paid within such period, payment thereof
may be enforced under the provisions of this Act.

46. If any tax is not paid on or before the prescribed Penalty for
non-pay-
*date, a sunm shall be added thereto calculated at the rate of int of tax;
-twelve per centum per annum of the amount of such tax and enforce-
remaining unpaid, and if any amount of such tax is not paid payment.
within twelve months after the prescribed date, at the rate
of fifteen per centum per annum of the amount of such tax







40 The Income Tax (Federal Emoluments) Bill

remaining unpaid, and the provisions of this Act relating to
the collection and recovery of tax shall apply to the collec-
tion and recovery of such sum.

Recovery 47. In the event of any tax or any portion thereof
of tax. not being paid on or before the date on which it becomes
payable, the same shall be recoverable by distress and sale
of the goods, chattels, and lands belonging to the person
making default in payment or in any other manner provided
by this Act.

Issue of 48. (1) It shall be lawful for the Commissioner to issue
warrants to directions under his hand. addressed to the Commissioner of a
enforce
payment. Territory requiring him to enforce payment of the tax pay-
able under this Act, in the same manner as the tax due under
the law of the Legislature of that Territory which provides
for the levying of income tax (in this section referred to as
the "territorial tax law") may be recovered or collected or
as payment of such tax may be enforced.

(2) Where the Commissioner issues a direction under
the provisions of this section, any amount of tax stated there-
in to be due shall for the purposes of the territorial tax law
be deemed to be tax due under that law:

Provided that any tax collected by the Commis-
sioner of a Territory pursuant to the provisions of this section
shall be paid to the Commissioner.

(3) The production of a direction issued under the
provisions of this section shall be prima facie evidence in
all courts of the amount of tax stated therein to be due.

(4) For the purpose of this section the expression
"Conunissioner of a Territory" means the person charged
with the administration of the territorial tax law.

When 49. (1) If in any particular case the Commissioner has
assessment
has already reason to believe that a person who has been assessed to tax
been made. may leave the Federation before such tax becomes payable
without having paid such tax, he may by notice in writing
to such person demand payment of such tax within the time
to be limited in such notice. Such tax shall thereupon be
payable at the expiration of the 'time so limited and shall







The Income Tax (Federal Emoluments) Bill 41

in default of payment, unless security for payment thereof be
given to the satisfaction of the Commissioner, be recover-
able forthwith.

(2) If in any particular case the Commissioner has When
assessment
reason to believe that tax payable under this Act may not be has not
recovered, he may at any time and as the case may require- been made.

(a) forthwith by notice in writing require any
person within the time to be specified in such
notice to make a return and to furnish parti-
culars of the income of the person who is liable
to such tax;

(b) make an assessment upon such last mentioned
person on the amount of the chargeable in-
come so returned, or if default is made in
making such return or the Commissioner is
dissatisfied with such return, in such amount
as the Commissioner may think reasonable;

(c) by notice in writing to the person assessed
require that security for the payment of the
tax assessed be forthwith given to his satis-
faction.

(3) If in any particular case the Commissioner has Charging
reason to believe that tax upon any income chargeable to chargeabe
such tax may not be recovered, he may at any time-- year and
before
assessment.
(a) by notice in writing to the person by whom
the tax would be payable determine a period
for which tax shall be charged and require
such person to render within the time specified
therein returns and particulars of such income
for that period;

(b) make an assessment upon such person in the
amount of the income returned, or if default
is made in making a return or the Com-
missioner is dissatisfied with such return, in
such amount as the Commissioner may think
reasonable.







The Income Tax (Federal Emoluments) Bill


(4) Notice of assessment made in accordance with the
provisions of subsections (2) and (3) of this section shall be
given to the person assessed, and any tax so assessed (in
accordance with the provisions of subsections (2) and (3)
of this section) shall be payable on demand made in writing
under the hand of the Commissioner, and shall in default of
payment, unless security for the payment thereof be given
to the satisfaction of the Commissioner, be recoverable
forthwith.

(5) Any person who has paid the tax in accordance
with a demand made by the Commissioner or who has given
security for such payment under subsections (2) and (3) of
this section shall have the rights of objection and appeal
conferred by sections 33 and 34, and the amount paid by him
shall be adjusted in accordance with the result of any such
objection or appeal.

(6) The provisions of subsections (2) and (3) of this
section shall not affect the powers conferred upon the Com-
missioner by section 36.

Construc- 50. For the avoidance of doubt it is hereby declared
tion. to be the law that any tax payable under this Act not paid
on the day on which it becomes payable is a debt due to the
Crown in right of its government of the Federation and,
without prejudice to any other manner in which the same
may be lawfully recovered, is recoverable in the manner
provided in any law in force in the Federation which makes
provisions for the determination of claims by the Crown in
right of its government of any Territory.
Certificates. 51. (1) Where any amount payable to the Commissioner
under any of the provisions of this Act has not been paid
within thirty days after payment thereof became due, the
Commissioner may make out a certificate in such form as may
be prescribed stating the amount payable and the name, the
trade or profession and the usual or last known place of abode
of the person by whom such amount is payable.

Judgments. (2) On production thereof to the Registrar of the
Federal Supreme Court, a certificate made under this section
shall be registered by him in the said Court and when so







The Income Tax (Federal Emoluments) Bill


registered shall have the same force and effect, and all pro-
ceedings may be taken thereon, as if the said certificate were
a judgment for the Crown obtained in the said Court for a
debt of the amount specified in the certificate together with
any interest required to be paid by this Act to the day of
payment.

(3) Rules of Court may be made by the authority
having for the time being power to make rules and orders
regulating the practice and procedure of the Federal Supreme
Court providing for the procedure to be followed upon the
registration of such certificates.

(4) All reasonable costs and charges attendant upon
the registration of the certificate shall be recoverable in like
manner as if they had been included in such certificate.

52. (1) When the Commissioner has knowledge or Garnish-
suspects that a person is or is about to become indebted or ments.
liable to make any payment to a person liable to make a
payment of tax under this Act, he may, by registered letter
or by a letter served personally, -require such first-mentioned
person to pay the moneys otherwise payable to such second-
mentioned person in whole or in part to him on account of the
liability of the second-mentioned person under this Act.

(2) The receipt of the Commissioner for moneys paid
as required under this section shall to the extent of the pay-
ment be a good and sufficient discharge of the original
liability-

(a) of the person who pays such moneys to the
Commissioner to the person liable to make a
payment of tax under this Act;

(b) of the person liable to make a payment of tax
under this Act to the Commissioner.

(3) Where the Commissioner, under this section, has
required an employer to pay to him on account of an
employee's liability under this Act moneys otherwise payable
by the employer to the employee as remuneration, the require-
ment shall be applicable to all future payments by the








The Income Tax (Federal Emoluments) Bill


employer to the employee in respect of remuneration until
the liability of the employee under this Act is satisfied and
shall operate to require payments to the Commissioner out of
each payment of remuneration due to the employee of such
amount as may be stipulated by the Commissioner in the
registered or other letter.

(4) Every person who has discharged any liability to.
a person liable to make a payment of tax under this Act
without complying with a requirement under this section
shall be liable to pay to the Commissioner as a debt due to-
the Crown an amount equal to the liability discharged or the
amount which he was required under this section to pay to.
the Commissioner whichever is the less.
Service of (5) Where the person who is or is about to become-
garihe indebted or liable carries on business under a name or style
other than his own name, the registered or other letter under
subsection (1) of this section may be addressed to the name or-
style under which he carries on business and, in the case-
of personal service, shall be deemed to have been validly
served if it has been left with an adult person employed at
the place of business of the addressee.

(6) Where the persons who are or are about to be-
come indebted or liable carry on business in partnership, the
registered or other letter under subsection (1) of this section
may be addressed to the partnership name and, in the case-
of personal service, shall be deemed to have been validly
served if it has been served on one of the partners or left
with an adult person employed at the place of business of
the partnership.

signatures 53. (1) Every notice or direction to be given by the
of notices. Commissioner under this Act shall be signed by the Com-
missioner or by some person or persons from time to time,
appointed by him for that purpose, and every such notice or
direction shall be valid if the signature of the Commissioner-
or of such person or persons is duly printed or written
thereon:

Provided that any notice in writing under this;
Act to any person requiring him to furnish particulars to-







The Income Tax (Federal Emoluments) Bill


the Commissioner, or any notice under this Act requiring
the attendance of any person or witness before the Com-
missioner shall be personally signed by the Commissioner
or by any person duly authorised by him.

(2) A signature attached to any direction or notice
and purporting to be the signature of any person so
appointed shall be taken to be the signature of that person
until the contrary be shown,

54. (1) Notice may be served on a person either per- Service of
sonally or by being sent by post to his last known business notice.
or private address:

Provided that service by post in the case of a
notice requiring the attendance of any person or witness
before the Commissioner shall be by registered post.

(2) A notice sent by post shall be deemed to have been
served, in the case of persons resident in the Territory in
which the notice was posted not later than the fifteenth day
succeeding the day when posted, and in the case of persons
not so resident, not later than the thirtieth day succeeding
the day on which the notice would have been received in
the ordinary course by post, and in proving such service it
shall be sufficient to prove that the letter containing the
notice was properly addressed and posted.

55. Any person who- False state-
ments and
returns.
(a) for the purpose of obtaining any deduction,
rebate, reduction, or payment in respect of
tax for himself or for any other person, or
who in any return, account or particulars
made or furnished with reference to tax,
knowingly makes any false statement or false
representations;

(b) aids, abets, assists, counsels, incites, or
induces another person-

(i) to make or deliver any false return or
statement under this Act, or








The Income Tax (Federal Emoluments) Bill


(ii) to keep or prepare any false accounts or
particulars concerning any income on
which tax is payable under this Act;
shall be guilty of an offence.
Penalties 56. Any person guilty of an offence under this Act
for offences. shall, unless some other penalty is specifically provided for
such offence, be liable, on summary conviction to a fine of
four hundred and eighty dollars.
Limitation 57. Prosecutions for offences under this Act may be
pros ecfo commenced at any time within three years next after the
tions cause of complaint arose.
Saving for 58. The provisions of this Act shall not affect any
criminal
proceedings, criminal proceedings under any other law.
Governor- 59. The Governor-General may subject to such con-
man remit editions as he may think fit, remit or refund the whole or any
tax. part of the tax payable or paid as the case may be by any
person if he is satisfied that it would be just and equitable
to do so.
Regulations. 60. (1) The Governor-General may make regulations
generally for carrying out the provisions of this Act, and may,
in particular, by those regulations provide-
(a) for the deduction of tax from payments made
from the public funds of the Federation of or
on account of the emoluments or allowances
specified in section 6 of this Act;
(1) for the payment of tax by monthly or other
instalments;
(c) for any such matters as are authorised by
this Act to be prescribed; and
(d) for any other matter or thing, whether similar
or not to those above mentioned, in respect of
which it may be expedient to make regulations
for the purpose of carrying this Act into
execution.
(2) The Governor-General may from time to time by
order delete or add to the provisions specified in the First
Schedule to this Act.








The Income Tax (Federal Emoluments) Bill


Section 3


FIRST SCHEDULE


Territory
Antigua

Barbados
Dominica

Grenada

Jamaica

Montserrat

Saint Christ
Nevis and
Saint Lucia

Saint Vincel

Trinidad an


Provisions providing for personal allowances
.. Sections 17, 18, 19, 20, 21 22 and 23 of the Income Tax
Ordinance, 1957 (Ordinance No. 13 of 1957).
.. Section 20 of the Income Tax Act, 1920 (Act 1921 -6).
.. Sections 14, 15, 16, 17 and 18 of the Income Tax
Ordinance, 1925 (Ordinance No. 15 of 1925).
. Sections 16, 17, 18, 19, 20, 21 and 22 of the Income Tax
Ordinance 1956 (Ordinance No. 32 of 1956).
.. Sections 12 and 13 of the Income Tax Law. 1954 (Law
No. 59 of 1954).
.. Sections ,14, 15, 16, 17, 18 and 19 of the Income Tax
Ordinance, 1945 (Ordinance No. 6 of 1945).
opher .. Sections 14, 15, 16, 17, 18, 19 and 19A of the Income
Anguiqla Tax Ordinance 1945 (Ordinance No. 10 of 1945).
. sections 15, 16, 17, 18 and 19 of the Income Tax
Ordinance, 1947 (Ordinance No. 8 of 1948).
nt .. Sections 15, 16, 17, 18 and 19 of the Income Tax
Ordinance, 1948 (Ordinance No. 23 of 1948).
1 Tobago Sections 14, 15, 16, and 18A of the Income Tax
Ordinance (Chapter 33 No. 1).


Section 6
SECOND SCHEDULE

Rules for determining the amount of tax payable under the Act

1. These Rules may be cited as the Income Tax (Federal
Emoluments) (Assessment) Rules, 1958.

2. For the purposes of these Rules -
"federal income" means income liable to tax under section 6 of
the Act.
"gross chargeable income" means -
(a) in relation to federal income, the aggregate amount of
the income -of any person from the source specified in
section 6 of the Act remaining after allowing the
appropriate deductions and exemptions under the Act,
other than personal allowances;








The Income Tax (Federal Emoluments) Bill


(b) in relation to territorial income, the aggregate amount of
the income (other than federal income) of any person
from the sources specified in the law of the Territory of
residence which provides for the levying of income tax as
income upon which tax shall be payable, remaining after
allowing the appropriate deductions and exemptions
under that law, other than personal allowances;
"scheduled rates" means the rates set out in the Table to these
Rules;
"taxpayer" means any person in receipt of income liable, to tax
under section 6 of the Act;
"territorial income" means income liable to tax under any law of
the Territory of residence which provides for the levying of
income tax;
"the Act" means the Income Tax (Federal Emoluments) Act,
1958.

3. Where the taxpayer, during the income year, is not resident in
the Federation or is in receipt of no income liable to tax under the law of the
Territory of residence, the tax payable under the Act shall be calculated upon
his chargeable income at the scheduled rates.

4. (1) Where the taxpayer is, during the income year, in receipt of
income liable to tax under the law of the Territory of residence, the tax
payable by him under the Act shall be an amount which bears -
to the figure resulting from the application of the scheduled rates
to the sum remaining after the federal personal allowances to
which he is entitled have been deducted from the aggregate of his
federal gross chargeable income and territorial gross chargeable
income
the same proportion -
as his federal gross chargeable income bears to the aggregate of.
his federal gross chargeable income and territorial gross chargeable
income.

(2) Where the territorial income consists of profits or gains derived
from any business, trade, profession or vocation and the accounts of such
business, trade, profession or vocation are usually made up for an annual
period ending on a date other than the 31st day of December (such period
being hereinafter referred to as the "accounting year"), the Commissioner may
direct that the income in respect of an accounting year which terminates
within an income year shall be treated as the income in respect of that income
year:
Provided that where the Commissioner has given such a direction in
respect of any income year, the income in respect of any subsequent income
year shall be treated as being the income in respect of each succeeding period
of twelve months immediately following the termination of the first accounting
year, subject to any such adjustment as in the opinion of the Commissioner
may be just and reasonable.







The Income Tax (Federal Emoluments) Bill 49


5. Where -
(a) the taxpayer is a married woman living with her husband.
and
(b) the husband is, during the income year. not in receipt of
income liable to tax under this Act and is in receipt of income
liable to tax under the law of his Territory of residence, and
(c) under that law the income of a married woman living with her
husband is deemed to be the income of the husband,
then the tax payable under the Act by the taxpayer shall be calculated in
accordance with the provisions of rule 4 above, as if the husband were regarded
as the person in receipt of the income liable to tax under the Act.

Table of Scheduled Rates

For every dollar of the first 1,000 dollars .. .. .. 6 cents
For every dollar of the next 1,000 dollars .. 8 cents
For every dollar of the next 1,000 dollars .12 cents
For every dollar of the next 1,000 dollars .. .. 18 cents
For every dollar of the next 1,000 dollars .. 25 cents
For every dollar of the next 1,000 dollars .28 cents
For every dollar of the next 1,000 dollasr 30 cents
For every dollar of the next 3,000 dollars .. 35 cents
For every dollar of the next 4,000 dollars .. .. 40 cents
For every dollar of the next 4,000 dollars .. 45 cents
For every dollar of the next 4,000 dollars .. .. 55 cents
For every dollar of the next 6,000 dollars .. 65 cents
For every dollar of the next 32,000 dollars .. .. 75 cents
Fer every dollar of the next 6,000 dollars .. .. .. 85 cents
For every dollar of the remainder of the income .. 90 cents



Section 44
THIRD SCHEDULE

1. These Rules may be cited as the Income Tax (Federal Emolu-
inents) (Deductions) Rules, 1958.

2. In these Rules, unless the context otherwise requires -
"approved" means approved by the Commissioner;
"Commissioner of a Territory" shall have the same meaning as
that assigned under section 48 of the Act;
income payment" means a payment of or on account of emolu-
ments or allowances being income liable to tax under the
provisions of section 6 of the Act, and includes any sum,
which upon the making of such payment, is withheld or
deducted in respect of monies due from the taxpayer;







50 The Income Tax (Federal Emoluments) Bill

the expressions "taxpayer" and "territorial income" shall have-
the same meanings respectively as they have for the purposes-
of the Income Tax (Federal Emoluments (Assessment)
Rules, 1958;
"the Act" means the Income Tax (Federal Emoluments) Act,.
1958.

3. Subject to the provisions of these Rules, the Commissioner shal?
make such arrangements as he may deem necessary to provide for the tax:
payable under the Act to be deducted from income payments made to a.
taxpayer in respect of an income year.

4. (1) Subject to the provisions of these Rules, all deductions of tax
under these Rules shall be calculated -
(a) after taking into account in accordance with the provisions;
of the Income Tax (Federal Emoluments) (Assessment)
Rules, 1958, the federal personal allowances to which the-
taxpayer is entitled and in respect of which he has filed a
statement in accordance with rules 6 and 7 of these Rules;
(b) so as to ensure, as far as possible, that all tax shall have been-
deducted during the income year;
Provided that additional deductions may be made of such
amounts and over such periods as the Commissioner considers
fair and reasonable for the purpose of collecting tax due in
respect of any previous income year;
(c) so as to ensure, as far as possible, that the total amount
deducted in respect of an income year shall be deducted in
equal instalments from all income payments made or due in
respect of that year;
(d) notwithstanding that at the time when a deduction is made-
the entire income on which the tax is payable has not yet
been paid, or become payable, to the taxpayer.

(2) For the purpose of calculating the amount of tax to be deducted
from an income payment it may be assumed -
(a) in relation to any income payment that the total amount of
income payments made in respect of that part of the income-
year which ends with the income payment in question will
hear the same proportion to the total amount of income
payments to be made in respect of the whole income year as.
that part of the year bears to the whole year:
(b) that the total amount of territorial income for the income-
year will be the same as the amount of territorial income last
assessed by the Commissioner for an income year:
Provided that the Commissioner may, in his discretion, direct
that, in respect of any income year, any other amount shall be treated as
representing the estimated total income payments or the estimated totaF
territorial income.









The Income Tax (Federal Emoluments) Bill


(3) Where upon the coming into operation of the Act tax becomes
-payable in respect of income earned prior to the enactment of the Act, such
tax shall be collected by deductions of such amounts made over such periods
-as the Commissioner shall direct.

5. Where an income payment is made to a taxpayer in respect of a
-retroactive increase of emolumients or allowances, the amount to be deducted
from such payment shall be the difference between -
(a) the amount that would have been deducted if such payment
had been made by way of addition in equal instalments to the
total number of income payments made during the period to
which the retroactive payments relates, and -
(b) the amounts actually deducted in respect of that period prior
to the making of the retroactive payment.

6. Every taxpayer who wishes his federal personal allowances to be
-taken into account for the purpose cf calculating the amounts to be deducted
from income payments to him in respect of the income year to which the
-declaration relates, may file with the Commissioner a statement of such
-allowances in the approved form and containing such particulars as the
-Commissioner may require.

7. Subject to the provisions of rule 8, every taxpayer who wishes to
file a statement of personal allowances under rule 6 shall do so -
(a) within seven days of his becoming a taxpayer and within the
first seven days of the commencement of each succeeding
income year;
(b) within seven days of any change in the circumstances of the
taxpayer resulting in a change of the amount of personal
allowances to which he is entitled;
(c) within such other period as the Comnissioner may, in his
discretion, permit.

8. A taxpayer who has filed a statement of personal allowances under
-rile 6 and whose circumstances have changed so as to result in a reduction of
-the allowances to which he is entitled shall, within seven days of suth change,
-file with the Commissioner a revised statement of allowances.

9. Any taxpayer who -
(a) files with the Commissioner under rule 6 a statement of
personal allowances knowing or having reasonable cause to
believe the same to be false, or
(b) wilfully fails or neglects to comply with the provisions of
rule 8 of these Rules,
.-shall be guilty of an offence and shall be liable on conviction by a court of
summary jurisdiction to a fine not exceeding two hundred and fifty dollars
-or to imprisonment for a term not exceeding six months or to both such fine
-and imprisonment.









52 The Income Tax (Federal Emoluments) Bill


10. The Commissioner may require any return of income liable to
tax under the law of the Territory of residence to be certified by the Com-
missioner of that Territory as being the same as the amount of income returned'
by the taxpayer under the law of the Territory.

11. If any question shall arise as to the amount of tax to be deducted
on making any income payment 'such question shall be determined by the
Commissioner.

12. The prescribed date for the purpose of section 28(1) of the Act
is -
(a) in the case o'f a person who received no territorial income in
respect of the income year, the 15th day of January in the
year following the income year;
(b) in the case of a person who received territorial income ir
respect of the income year, the 31st day of March in the year
following the income year;
(c) in the case of a person in respect of whom the Commissioner
has given a direction under rule 4(2) of the Income Tax
(Federal Emoluments) (Assessment) Rules, 1958. the
ninetieth cday after the termination of the accounting year.


Printed by Yuille's Printerie Limited, Port-of-Spain, Trinidad.
By Authority.







The Supplementary Appropriation Bill


THE WEST INDIES


THE SUPPLEMENTARY APPROPRIATION BILL


OBJECTS AND REASONS

The object of this Bill is to make provision out
of the public funds of the Federation for the services of the
year ending 31st December, 1958, in addition to the sum
appropriated by the Appropriation Regulations, 1958.







2 The Supplementary Appropriation Bilb


THE WEST INDIES


ACT No. of 1958.

THE SUPPLEMENTARY APPROPRIATION BILL


ARRANGEMENT OF CLAUSES

Clause
1. Short Title.
2. $1,014,615 appropriated out of public funds..



A Bill intituled

An Act to appropriate an additional sum from the
public funds of the Federation for the services of the year
ending on the thirty-first day of December, one thousand
nine hundred and fifty-eight.

Be it enacted by the Queen's Most Excellent
Majesty, by and with the advice and consent of the Senate
and the House of Representatives of The West Indies, and
by the authority of the same, as follows:-

Short 1. This Act may be cited as the Supplementary
Title. Appropriation Act, 1958.

$1,014,615 2. The Financial Secretary may issue out of the
appro-
priated public funds of the Federation on the warrant of the
out of Governor-General and apply towards the services of the year
public
funds. ending on the thirty-first day of December, one thousand nine
hundred and fifty-eight the sum of one million, fourteen
thousand, six hundred and fifteen dollars, which sum is
appropriated and shall be deemed to have been appropriated
as from the third day of January one thousand nine hundred
and fifty-eight for the services and purposes set out in the
schedule to this Act.








The Supplementary Appropriation Bill


SCHEDULE


Head


V
I


VII
III

IX

IX

XI
XII
XIII
XIV


Governor-General
Supreme Court
Legislature
Secretariat
Law Officers
Prime Minister
Finance
Trade and Industries
Communications and Works
Agriculture
Social Affairs
Miscellaneous
Overseas Commissions-United


.$ 12,474
4,800
114,732
20,680
8,600
23,084
13,230
18,100
26,550
14,500
22,607
.175,642


Kingdom


XVI Overseas Commissions-Venezuela
XVII Overseas Commissions-Student Services-
U.S.A ..
'XVIII~ Meteorological Services
XIX Regional Contributions and Services
XX Trade and Tariffs Commission ..
XXI Colonial Development and Welfare
XXII Special Contingencies ..

XXIII Expenses of Federal Capital

Total Expenditure .. $1


17,732
20,000


4,132
21,384
220,000
32,788
127,580
76,000

40,000

,014,615


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By Authority.




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