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Group Title: West Indies gazette
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Title: The West Indies gazette
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Place of Publication: Port of Spain Trinidad
Publication Date: July 15, 1960
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Subject: Politics and government -- Periodicals -- West Indies (Federation)   ( lcsh )
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    Legal Supplement
        A-11
    Legal Supplement: pt. 1 Acts of The Federal Legislature (No. 3 of 1960): The Income Tax (Federal Emoluments) Act, 1960
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Full Text



















THE WEST INDIES GAZETTE


Vol. 3 FRIDAY, 15th JULY, 1960 No. 23

LEGAL SUPPLEMENT

PART I-ACTS OF THE FEDERAL LEGISLATURE

TABLE OF CONTENTS
No. Page
3 of 1960 The Income Tax (Federal Emoluments)


Act, 1960


12


x


0 5S 3
7z.2P








12 The Income Tax (Federal Emoluments) Act, 1960


THE WEST INDIES

ACT No. 3 of 1960.

THE INCOME TAX (FEDERAL EMOLUMENTS)
ACT, 1960

ARRANGEMENT OF SECTIONS
Section
1. Short title and commencement.
2. Application to Turks and Caicos and Cayman Islands.
3. Interpretation.
4. Appointment of administrative authority.
5. Official secrecy.
6. Charge of income tax.
7. Basis of assessment-Apportionment of lump sum payments.
8. Exemptions.
9. Deductions in respect of annuities, etc.
10. Deduction for individuals.
11. Deduction for wife-Maintenance and alimony-Deduction for
children-Deduction in respect of relative taking charge of
widower's or widow's children or acting as housekeeper-Deduction
in respect of dependent relatives.
12. Deduction in respect of life insurance and contribution to Widows'
and Orphans' fund.
13. Deduction in respect of wife's earned income.
14. No deductions allowable save those expressly provided for-
Personal allowances in the case of individuals in receipt of Terri-
torial income.
15. Wife's income.
16. Rates of tax as per Schedule.
17. Persons in receipt of income on behalf of incapacitated persons.
18. Chargeability of agent of person residing out of the Federation.
19. Lists to be prepared by representative or agent.
20. Agents, etc. of non-residents to be assessed.
21. Indemnification of representative.








The Income Tax (Federal Emoluments) Act, 1960


22. Deceased persons.
23. Artificial transactions, transfers to minors and in trust.
24. Returns of personal incomes.
25. Power of Commissioner to require returns.
26. 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.
27. Appointment of agent in the United Kingdom.
28. Lists of persons assessed and notices of assessment.
29. Notices to be served on persons assessed-Objections to assessment.
30. Appeals against assessment-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.
31. Assessments, etc., not void by reason of errors therein in names and
descriptions.
32. Omissions, undercharges and overcharges.
33. Circumstances under which repayment may be made.
34. Tax credits.
35. Other tax credits.
36. Period within which a claim may be made for relief by way of tax
credit.
37. Power of Commissioner to require schedule of particulars-Power
of Commissioner to require persons to attend before him.
38. Tax payable by deduction at source.
39. Date of payment-Procedure in cases where objection or appeal is
pending-Collection of tax after determination of objection or
appeal.
40. Penalty for nxonppayment of tax; and enforcement of payment.
41. Recovery of tax.
42. Issue of warrants to enforce payment.
43. When assessment has already been made-When assessment has not
been made-Charging tax during a chargeable year and before
assessment.
44. Construction.
45. Certificates-Judgments.
46. Garnishments-Service of garnishees.
47. Signatures of notices.
48. Service of notice.
49. False statements and returns.
50. Penalties for offences.
51. Limitation of time for prosecutions.
52. Saving for criminal proceedings.
53. Governor-General may remit tax.
54. Regulations.
55. Repeal and savings.








14 The Income Tax (Federal Emoluments) Act, 1960


I ASSENT

HAILES
[L.S.]
GOVERNOR-GENERAL

8th July, 1960.







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
enement (Federal Emoluments) Act, 1960.

(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
anda aicos Islands and to the Cayman Islands.
and
Cayman
Islands.
Interpreta- 3. In this Act, unless the context otherwise
tion. requires-
requires-







The Income Ta. (Federal Emoluments) Act, 1960 15

"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
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 administra-
tion 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 Federa-
tion, carries on business 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 .employ-
.ment, 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 12 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 other-
wise, but not including the payment for
any passage from, to or within 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
allowance, deferred pay or compensation







16 The Income Tax (Federal Emoluments) Act, 1960

for loss of office given in respect of the
past services of the individual whether
the individual shall have contributed to
such pension, superannuation or other
allowance or not;

"federal income" means income liable to tax
under section 6 of this Act;

"incapacitated person" means any infant, 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;

"personal allowances" means-

(a) in relation to federal* income, the allow-
ances provided for by sections 10, 11, 12
and 13 of this Act;

(b) in relation to Territorial income, any
allowances which in the opinion of the
Commissioner are of a personal nature
and which are granted under the law of
the Territory of residence to an indivi-
dual but not to a body of persons;

"Territorial income" means income liable to tax
under any law of the Territory of residence
which provides for the levying of income tax;

"Territory of residence" means the Territory in
which the taxpayer ordinarily resides during
the income year.








The Income Tax (Federal Emoluments) Act, 1960 17

4. For the due administration of this Act theAppoint-
Governor-General may appoint a Commissioner or Commis-adminis
sioners and such other officers and persons as may be neces- trative
sary and shall furnish such Commissioner or Commissionersauthrity
with warrants of appointment under his hand.

5. (1) (a) Every person having any official duty or being Official
employed in the administration of this Act shall regard andsecrecy.
deal with all documents, information, returns, assessment
lists, 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 pre-
scribed to the effect.

(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 income
of any person who at any time communicates or attempts 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








18 The Income Tax (Federal Emoluments) Act, 1960

Federation the obligation as to secrecy imposed by this sec-
tion 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 country or place aforesaid.

Charge of 6. Income tax shall, subject to the provisions of this
income tax. Act, be payable upon earned income, whether received in
the Federation or not, derived from emoluments or
allowances (including pensions, gratuities and other like
allowances but not including travelling and subsistence
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 Representa-
tives or to persons who are or have been 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.

Basis of 7. (1) 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.

Apportion- (2) Where the income of any person in respect of an
mep sum income year includes a sum paid from the source specified
payments, in section 6 of this Act under the terms of a contract of
service with the Crown in respect of the government of the
Federation, on account of the termination or completion of
the contract, the tax payable by the person by reason of the
receipt of that sum shall be reduced so as not to exceed the
total amount of tax which would have been payable by him
if that sum had been apportioned over the years to which
it relates and a proportionate instalment had been payable
in each of those years.
Exemp- 8. (1) The following income shall be exempt from tax
tions. under this Act and under any other law in force in any
Territory which provides for the levying of income tax-







The Income Tax (Federal Emiolumeints) Act, 1960 19

(a) the official emoluments received by the officer
administering the Government of the Federa-
tion in respect of the period during which he
is administering the government and the
official emoluments drawn by the Governor-
General in respect of any period spent on
leave;

(b) any allowance to any person referred to in
section 6 of this Act which is certified by the
Financial Secretary to represent compensa-
tion-

(i) for the extra cost of having to live out-
side the Federation in order to perform
his duties, or

(ii) for the actual expenses incurred by such
person in performing his duties as a
representative of the Federation outside
the Federation;

(c) the value of any quarters or residence granted,
in respect of his office, to a Minister or to the
Speaker of the House of Representatives, or
any allowance payable in lieu thereof;

(d) any allowance payable, in respect of his office,
to a Minister or to the Speaker of the House
of Representatives which but for the provi-
sions of this paragraph would be liable to tax
under this Act;

(e) the value of any quarters or residence granted
to any officer or soldier of the West India
Regiment in respect of his service therein,
or any allowance payable in lieu thereof;

(f) the value of any food or drink supplied in kind
to any officer or soldier of the West India
Regiment in respect of his service therein, or
any allowance payable to such officer or






20 The Income Tax (Federal Emoluments) Act, 1960

soldier in lieu thereof or payable in respect
of such officer or soldier as a contribution to
the expenses of a mess.

(2) Federal income shall be exempt from tax under
any other law in force in any Territory which provides for
the levying of income tax.

Deductions 9. For the purpose of ascertaining the chargeable
Respect income of any individual there shall be allowed the following
annuities, deductions:-
etc.
(a) any annuity or other annual payment paid out
of federal income where such annuity or
annual payment is secured by a deed of cove-
nant for a period of at least five consecutive
years:
Provided that no deduction shall be
allowed in respect of any annuity or other
annual payment paid to or for the benefit of
the wife or the husband of the person claiming
the deduction; and
(b) such other deductions as may be authorised
by resolution of the Senate and the House of
Representatives.

Deduction 10. In ascertaining the chargeable income of an
for individual there shall be allowed a deduction of one thou-
sand two hundred dollars.

Deduction 11. (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 para-
graph (a) of subsection (2) hereof there shall be allowed
a deduction of four hundred and eighty dollars.

cMain- (2) In ascertaining the chargeable income of an
alimony. individual who proves to the satisfaction of the Commissioner
that he had, during the income year, paid-







The Income Tax (Federal Emoluments) Act, 1960 21

(a) a maintenance or separation allowance to his
wife in accordance with the terms of a 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.

(3) In ascertaining the chargeable income of anyDeduction
individual who proves to the satisfaction of the Commissioner children.
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 out-
side that territory but did not receive full-
time instruction as a student outside that
territory at a university, university 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 instruc-
tion as a student at a university, university
college, secondary school, trade or other
technical school in the territory of residence
of the individual and for that purpose resided
away from the place where such individual
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;







22 The Income Tax (Federal Emoluments) Act, 1960

(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 instruction as
a student outside the territory of residence
of the individual 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 or
other similar educational endowment, or of any emoluments
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
ofrelative individual who proves to the satisfaction of the Commis-
taking sioner that during the income year he was a widower and
charge of
wider'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 care of any child of his or in the capacity of a housekeeper,
akep hse there shall be allowed, subject as hereinafter provided, a
deduction of two hundred dollars in respect of that female
relative:







The Income Tax (Federal Emoluments) Act, 1960 23

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 sub-
section 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

(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 indi-Deduction
o in respect
vidual who proves to the satisfaction of the Commissioner f
that during the income year he maintained at his own expense dependent
any person being his or his wife's father or mother (notelatve
being an unmarried or widowed mother) or his or his wife's
aunt, grandmother or grandfather or a child, brother or
sister of his or of his wife, who is incapacitated by old age







24 The Income Tax (Federal Emoluments) Act, 1960

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".

(6) For the purposes of subsection (3) of this section
"territory of residence" means the territory or place
(whether within the Federation or not)in which the indivi-
dual ordinarily resides during the income year.

Deduction 12. (1) In ascertaining the chargeable income of any
in respect of individual who -
life insur-
rance and
contribu- (a) has made insurance on his life or the life of
tion to
Widows' his wife, or has contracted for any deferred
and annuity on his life or the life of his wife, with
fund. any company, as defined in this Act, carrying
on the business of life insurance, or with any
other body of persons carrying on the busi-
ness of life insurance which is legally estab-
lished 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 per-
sons carrying on the business of life in-
surance; or







The Income Tax (Federal Emoluments) Act, 1960 25

(b) before the 1st 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
Kingdom 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 10, 11 and 13 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 con-
tribution to such fund or scheme by the employee.

(3) In this section-

"any Commonwealth country" includes any
British Protectorate or protected State,
South West Africa, and any territory
administered by any of Her Majesty's
Governments under the trusteeship system of
the United Nations;

"approved" means approved by the Governor-
General;







26 The Income Tax (Federal Emoluments) Act, 1960

"contract" means an agreement which provides
for the payment to the individual by a com-
pany 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 thn first day
of July, 1958, the deduction allowed by the said subsection
shall, subject to the provisions of the said subsection, be limi-
ted 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,

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.








The Income Tax (Federal Emoluments) Act, 1960


13. (1) In ascertaining the chargeable income of anyDeduction
in respect
individual there shall be allowed a deduction, not exceedingof wife's
in any case two hundred and forty dollars, equal to the ce.d
amount of any earned income of his wife which is federal
income.

(2) For the purposes of this section any earned income
of an individual's wife arising in respect of any pension,
superannuation or other allowance, deferred pay or compen-
sation for loss of office given otherwise than in respect of her
past services in the service of the Crown in respect of the
government of the Federation shall be deemed not to be
earned income of his wife.

14. (1) No deductions or allowances shall be allowed deduc-
tions
under this Act save such as are expressly provided for in allowable
this Act. save those
expressly
provided
for.
(2) Subject as hereinafter provided, no personal Personal
allowances shall be granted against the federal income of an in the
individual who is in receipt of Territorial income in respect ase of
individuals
of the same income year as that in which the federal income in receipt
was due: of Terri-
torial
income.
Provided that in the case of any such individual
a deduction in respect of the personal allowances which would
have been given had the individual not been in receipt of
Territorial income may be allowed of an amount which bears
to such total federal personal allowances the same propor-
tion as the federal gross chargeable income bears to the
aggregate of the federal gross chargeable income and the
Territorial gross chargeable income:

Provided further that no such proportion shall be
given in the case of any individual unless he satisfies the
Commissioner as to the amount of his Territorial gross
chargeable income.

(3) 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







28 The Income Tax (Federal Emoluments) Act, 1960

or vocation are usually made up for an annual period ending
on a date other than the 31st day of December (such period
being hereafter 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.

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

wife's 15. (1) The federal income of a married woman living
income. with her husband shall, if the income of the husband is also
federal income, for the purpose of this Act be deemed to be
the income of her husband, and shall be charged in the name
of the husband and not in her name nor in that of her trustees:
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 Income Tax (Federal Emoluments) Act, 1960 29

the wife bore to the amount of the total income of the
husband and wife may, if necessary, be collected from the
wife, notwithstanding that no assessment has been made
upon her.
(2) Where a married woman living with her husband
receives federal income and the husband is not in receipt of
any such income, the tax payable shall be calculated as if
the husband were regarded as the person in receipt of the
income, the proportion of the personal allowances which may
be given being determined in accordance with the provisions
of the last preceding section:
Provided that no proportion shall be given in
respect of any allowance or deduction arising under section
13 of this Act.
16. There shall be levied and paid upon the charge-Rates of
able income of every person liable to tax under this Act taxtax as per
in accordance with the rates set out in the First Schedule to
this Act.
17. Any person in receipt of federal income on behalf Persons in
of an incapacitated person shall be chargeable to tax inrecei of
respect of such income in like manner and to the like amountbehalf of
as such incapacitated person would be chargeable if he had inapacita
received such income and every person so receiving such
income 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 an incapacitated person to be himself charged
to tax in his own name.
18. A person not resident in the Federation (herein-charge-
after in this section referred to as a non-resident person), ability of
agent of
whether a British subject or not, shall be assessable andperson
chargeable in the name of his agent, whether such agent has residnge
the receipt of the income or not, in like manner and to theFederation.
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 and such agent 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:








30 The Income Tax (Federal ELmoluments) Act, 1960


Provided that nothing in this section shall affect
the liability of any non-resident person to be himself charged
to tax in his own name.

Lists to be 19. (1) Every person who, in whatever capacity, is in
representa- receipt of any money or value being income arising from the
tive or source specified in section 6 of this Act of or belonging to
agent. any other person who is chargeable in respect thereof 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;
(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.

Agents, 20. Any person who transmits federal income to a
residents to non-resident person shall be deemed to be the agent of such
be assessed. non-resident person and shall be assessed and shall pay the
tax accordingly.
Indemnifi- 21. (1) Every person answerable under this Act for the
reopen oa- payment of tax on behalf of another person may retain out
tive. of any money coming to his hands on behalf of such other
person so much thereof as shall be sufficient to pay such
tax, and shall be and is hereby indemnified against any
person whatsoever 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.

Deceased 22. When any person dies during the income year or
persons. within three years after the expiration thereof, and no







The Income Tax (Federal Emoluments) Act, 1960 31

assessment 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.

23. (1) Where the Commissioner is of opinion that anyArtificial
transaction which reduces or would reduce the amount of taion
tax payable by any person is artificial or fictitious, or thattransfers
full effect has not, in fact, been given to any disposition, anc in0
the Commissioner may disregard any such transaction ortrust.
disposition, and the persons concerned shall be assess-
able 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
disponer 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
otherwise, 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
settlement, 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 30
of this Act by the Judge of the Federal Supreme Court
hearing the appeal.







32 The Income Tax (Federal Emoluments) Act, 1960


(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 24. (1) Every person chargeable with tax under this Act
personal
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 federal income for the income year, and shall, if
absent from the Federation, give the name and address of an
agent residing in the Federation.
(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 neglects to
deliver any return required under the provisions of this
section shall be guilty of an offence.

Power of 25. (1) The Commissioner may, by notice, require any
sioneroi person, or the attorney of any person, to make returns under
require this Act within the time specified in such notice.
returns.
(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.

Commis- 26. (1) The Commissioner shall assess every person
er to chargeable with tax under this Act.
assess-
ments. (2) Where a person has delivered a return, the
Commissioner may-
Acceptance (a) accept the return and make an assessment
of return. accordingly; or

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

Assess- (3) Where a person has not delivered a return and
menait o the Commissioner is of the opinion that such person is liable
return. to pay tax, he may, according to the best of his judgment,
determine the amount of the chargeable income of such







The Income Tax (Federal Emoluments) Act, 1960


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 expira-
tion of the income year, the Commissioner shall make 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 or 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.

(5) If any person neglects or refuses to render a Additional
return of income as required by this Act, the Commissioner ta for
non-
may (unless such person proves to the Commissioner's return of
satisfaction that the neglect or refusal was for reasonableincome.
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
construed 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.

(8) Without prejudice to the powers conferred bycommis-
sloner
section 53 of this Act the Commissioner may for reason mayremit
which may appear to him sufficient, at any time remit in additional
whole or in part any additional tax charged undertax.
this section.

(9) A discretion to charge additional tax vested inlJudge's
the Commissioner by this section may be exercised, on appeal discretion
under section 30 of this Act by the Judge of the Federaltax.
Supreme Court:


~~







34 The Income Tax (Federal Emoluments) Act, 1960


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 Commis-
sioner did not exceed the maximum additional tax which
could properly be charged, the appeal as regards the
additional tax shall be dismissed.
Appoint- 27. For the purposes of facilitating the assessment of
ment of
agent in the income of persons residing in the United Kingdom, the
the Governor-General may appoint an agent in the United
United
Kingdom. Kingdom who shall make enquiries on behalf of the
Commissioner 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 charge-
able 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 30 of this Act.

Lists of 28. (1) After completing his assessment, the Commis-
persons
assessed sioner shall prepare lists of persons liable to tax under this
and Act.
notices of
assessment. (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
particulars as may be necessary.

Notices to 29. (1) The Commissioner shall cause to be served on
served each person whose name appears on the assessment lists a
persons notice addressed to him at his usual place of abode or
assessed. business 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 and of the date on or before
which the tax is to be paid.






The Income Tax (Federal Emoluments) Act, 1960 35

(2) If any person disputes the assessment he mayObjee-
apply to the Commissioner, by notice of objection in writing, taons t
to review and to revise the assessment upon him. Suchment.
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 and personal allowances of the
person assessed, and to produce all books or other documents
in his custody or under his control relating to such income
and allowances 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 confidentially 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.






36 The Income Tax (Federal Emoluments) Act, 1960

Appeals 30. (1) Any person who, being aggrieved by an assessment
against
assess- made upon him, has failed to agree with the Commissioner in
entsce of the manner provided in subsection (4) of the last preceding
appeal and section, may appeal against the assessment to a Judge of the
appealing. Federal Supreme Court in chambers within twenty-one days
from the date of the refusal of the Commissioner 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 such
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.

Attendance (3) Every person appealing shall attend before the
appellant. Judge in person on the day and at the time fixed for the
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.

Notice of (4) Thirty clear days' notice shall, unless rules made
hearing to d
be given to hereunder otherwise provide, be given to the Commissioner
Commis- and the appellant of the date fixed for the hearing of the
sioner and
the appeal.
appellant.
Burden of (5) The onus of proving that the assessment com-
proof. plained of is excessive shall be on the appellant.







The Income Tax (Federal Emoluments) Act, 1960 37

(6) If the Judge is satisfied that the appellant is over-Judge's
power as
charged he may reduce the amount of the assessment by the to ssess-
amount of the overcharge, and if he is satisfied that the me"nt
appellant is undercharged he may increase the amount of
the assessment by the amount of the undercharge.

(7) Notice of the amount of tax payable under theNotice to
assessment as determined by the Judge shall be served by ao gean
the Commissioner upon the appellant. assess-
Inent.
(8) All appeals shall be heard in camera, unless theMode of
hearing
Judge shall, on the application of the appellant, otherwise appeal.
direct.

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

(10) The decision of the Judge hearing the appeal shallinality of
be final: appeal.
Provided that the Judge hearing such appeal may, Power to
if he so desires, and shall, on the application of the appellant^ase.
or the Commissioner, state a case on a question of law for
the opinion of the Full Court.

(11) Rules of court may be made by the authorityRules-
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.

(12) Notwithstanding anything contained in sub-Appellant
to give
section (2) of section 39 of this Act if the Judge is satisfied seeurty
that tax in accordance with his decision upon the appeal may~ r
mnot be recovered, the Judge may require the appellant of ta.
forthwith to furnish such security for payment of the tax,
if any, 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.







38 The Income Tax (Federal Emoluments) Act, 1960


Asesss- 31. (1) No assessment, warrant or other proceeding
ments, etc.
not void purporting to be made in accordance with the provisions of
by reason this Act shall be quashed, or deemed to be void or voidable,
of errors
therein in for want of form, or be affected by reason of a mistake,
names and defect, or omission therein, if the same is in substance and
descrip-
tions. effect in conformity with or according to the intent and
meaning of 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 understanding.
(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
assessment and 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.
Omissions, 32. (1) Where it appears to the Commissioner that any
under-
charges person liable to tax has not been assessed or has been
and over- assessed (whether under this Act or under the Income Tax
charges. (Federal Emoluments) Act, 1958) at a less amount than
that which ought to have been charged under this Act, the
Commissioner may, in any case where the person is liable
to tax in respect of the income year 1958 or 1959, within
three years after the enactment of this Act and in any case
where the person is liable to tax in respect of any subsequent
income year, within three years after the expiration thereof,
assess such person at such amount or additional amount as
according to his judgment ought to have been charged under
this Act, and the provisions of this Act as to notice of assess-
ment, appeal and other proceedings under this Act shall
apply to such assessment or additional assessment and to the
tax charged thereunder.








The Income Tax (Pederal Emoluments) Act, 1960 39

(2) Where it appears to the Commissioner that any
person liable to tax in respect of the income year 1958 or
1959 has been assessed under the Income Tax (Federal
Emolument) Act, 1958, at a greater amount than that which
ought to have been charged under this Act, the Commissioner
shall within six months after the date of enactment of this Act
review and revise the assessment and the provisions of this
Act as to notice of assessment, appeal and other proceedings
under this Act shall apply to such revised assessment.

33. (1) If at any time within three years after the enact- ircum-
ment of this Act the Commissioner is satisfied that anyd'er8
person in respect of the income year 1958 or 1959 has paidwhich
tax by deduction or otherwise in excess of the amount with repament
which he is properly chargeable under this Act, themade.
Commissioner shall cause the amount so paid in excess to be
refunded to the person as soon as practicable.

(2) If at any time within three years after the
expiration of any income year subsequent to the income year
1959, the Commissioner is satisfied that any person in respect
of such income year has paid tax by deduction or otherwise,
in excess of the amount with which he is properly chargeable
under this Act, the Commissioner shall cause the amount so
paid in excess to be refunded to the person as soon as
practicable.
(3) Except as regards sums repayable on an objection
or appeal, no repayment shall be made to any person in
respect 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,
provided 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.
34. (1) Where- Tax
credits.
(a) a person is liable to tax under this Act in
respect of any year; and
(b) such person has also, under the law of any
territory (whether or not such territory be








40 The Income Tax (Pederal Emoluments) Act, 1960

within the Federation) been assessed to
income tax for such year on his emoluments
in respect of the preceding year; and

(c) no provision existed under the law of such
territory requiring the deduction or with-
holding in such preceding year of tax on the
payment of emoluments,

the Commissioner may allow as a credit against the tax
payable under this Act in respect of such year, or where such
tax has already been paid, may refund-

(i) where the person was in receipt through-
out such year of federal income, an
amount equivalent to that part of the
tax paid or payable under the law of the
territory for such year as represents
the tax paid or payable on his emolu-.
ments in respect of the preceding year
(which part is hereinafter referred to as
,'the territorial emoluments tax");

(ii) where the person was in receipt of
federal income for only part of such
year, such proportion of the tax paid or
payable under this Act in respect of such
year as the territorial emoluments tax for
such year bears to the tax which would
have been chargeable under this Act
in respect of such year had the person
been in receipt of a total federal income
for the whole year of an amount which
bears to the amount actually paid the
same proportion as a period of twelve
months bears to the period in respect of
which the actual amount was paid.

(2) A person shall not be entitled to any relief under
this, section in respect of any tax paid or payable under this
Act in respect of any year-


(a) so as to exceed the amount of such tax; or







The Income Tax (Federal Emoluments) Act, 1960 41

(b) unless he furnishes to the satisfaction of the
Commissioner all such particulars as the
Commissioner may require to enable him
adequately to carry out the provisions of this
section.

(3) For the purposes of this section, the territorial
emoluments tax for any year shall be that proportion of the
total tax paid or payable under the law of the territory for
that year as the amount of the individual's emoluments in
respect of the preceding year (excluding any emoluments
which were not, in the opinion of the Commissioner, replaced
by federal income) bears to his total income in respect of
such preceding year.

(4) For the purposes of this section the expression
"emoluments" means all salary, wages, overtime, bonus,
remuneration, perquisites including the value of board and
lodging, stipend, commission or other amounts for services.
directors' fees, retiring allowances or pension, but shall not
include any salary or share of profits arising from a trade,
business, profession or vocation carried on by any person
either by himself or in partnership with any other person.

(5) A discretion conferred on the Commissioner by
this or the next following section may be exercised, on appeal
under section 30 of this Act, by the Judge of the Federal
Supreme Court hearing the appeal.

35. (1) Where a person referred to in section 6 of thisother tax
Act is required in any year to live in a country outside theeredits.
Federation in order to perform his duties (in this section
referred to as "the overseas country") and such person has
paid or is liable to pay income tax under the law of such
country on any part of his federal income for such year,
the Commissioner may allow as a credit against the tax
payable under this Act in respect of such year, or where such
tax has already been paid, may refund an amount equivalent
to that part of the tax paid or payable by such person under
the law of such country as represents the tax paid or
payable on his federal income for that year:







42 The Income Tax (Federal Emnoluments) Act, 1960

Provided that a person shall not be entitled to any
relief under this section in respect of any tax paid or payable
under this Act in respect of any year-

(a) so as to exceed the amount of such tax;

(b) unless he furnishes to the satisfaction of
the Commissioner all such particulars as the
Commissioner may require to enable him
adequately to carry out the provisions of this
section.

(2) For the purposes of this section, that part of the
tax paid or payable by a person which represents tax paid
or payable on his federal income for any year shall be that
proportion of the total tax paid or payable under the law of
the overseas country in respect of that year's income as the
amount of the individual's federal income in that year bears
to his total income in that year which is chargeable to tax
under the law of that country.

Period 36. A claim for relief under section 34 or 35 of this
which a Act shall be made within three years from the end of the
claim may income year to which it relates:
be made
for relief
by way of Provided that such a claim, though not made
tax credit.
within the said period of three 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 there has
been ascertained the relevant amount of tax which the person
making the claim is required to pay under the law of the
territory or country, as the case may be.

Power of 37. (1) The Commissioner may, by notice in writing,
Commis-
sioner to require any person to furnish him within a specified time
sedule of with a schedule containing such particulars as he may require
partieu- for the purposes of this Act with respect to the income of
such person.

(2) Any person who fails or neglects duly to furnish
such schedule shall be guilty of an offence.







The Income Tax (Federal Emoluments) Act, 1960 43

(3) The Commissioner may, by not less than fourteenPower of
Commis-
days' notice in writing, require any person to attend beforesioner to
him or any person designated by him and give evidence withrequre
respect to his income, and to produce all books or otherattend
documents in his custody or under his control relating to him.
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.

38. (1) The tax payable under this Act shall as from theTax pay-
1st day of January, 1959, be paid by way of deductions fromdeduction
any payments made from the public funds of the Federation at source.
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
payable, the excess shall be refunded as
soon as practicable;

(b) 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
from the public funds of the Federation







44 The Income Tax (Federal Emoluments) Act, 1960


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 Second 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 Second Schedule to this Act, or make new rules.

(4) Where tax is payable under this Act in respect of
income earned prior to the 1st day of January, 1959 such
tax shall be collected by deductions of such amounts male
over such periods as the Commissioner shall direct.

Date of 39. (1) Subject to the provisions of section 38 of this Act
payment. the tax appearing in the assessment lists shall be payable
to the Commissioner and shall in each case be paid on or
before the date stated in the notice served pursuant to sub-
section (1) of section 29 of this Act on the person liable to
pay the tax.

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

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

Collection (3) Where payment of tax in whole or in part has been
of tax
after held over pending the result of a notice of objection or of
determina-
tion of an appeal, the tax outstanding under the assessment as
objection determined on such objection or appeal, as the case may be,
or appeal. shall be payable within thirty days from the receipt by the
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.







The Income Tax (Federal Emoluments) Act, 1960 45

40. If any tax is not paid on or before the prescribedPenalty for
non-pay.
date, a sum shall be added thereto calculated at the rate ofment of
twelve per centum per annum of the amount of such tax tefre-
remaining unpaid, and if any amount of such tax is not paidment of
within twelve months after the prescribed date, at the rate payment.
of fifteen per centum per annum of the amount of such tax
remaining unpaid, and the provisions of this Act relating to
the collection and recovery of tax shall apply to the
collection and recovery of such sum.

41. In the event of any tax or any portion thereof not axery
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.

42. (1) It shall be lawful for the Commissioner to issueIwatss f to
directions under his hand addressed to the Commissioner of enforce
a Territory requiring him to enforce payment of the tax payment.
payable under this Act, in the same manner as the tax due
under the law of the Legislature of that Terrritory 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 therein
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
"Commissioner of a Territory" means the person charged
with the administration of the territorial tax law.







46 The Income Tax (Federal Emoluments) Act, 1960


When 43. (1) If in any particular case the Commissioner has
assess-
ment has reason to believe that a person who has been assessed to tax
already may leave the Federation before such tax becomes payable
been madewithout 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
in default of payment, unless security for payment thereof
be given to the satisfaction of the Commissioner, be
recoverable forthwith.
When (2) If in any particular case the Commissioner has
assessment
has not reason to believe that tax payable under this Act may not
been made. be recovered, he may at any time and as the case may
require-
(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 in the amount of the chargeable
income 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
satisfaction.

Charging (3) If in any particular case the Commissioner has
tax
during a reason to believe that tax upon any income chargeable to
chargeable 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;







The Income Tax (Federal Emoluments) Act, 1960 47

(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 Commis-
sioner is dissatisfied with such return, in
such amount as the Commissioner may
think reasonable.

(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 section 29 and 30 of this Act, 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
Commissioner by section 32 of this Act.

44. For the avoidance of doubt it is hereby declared construc-
that any tax payable under this Act not paid on the day onion.
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 provision for the
determination of claims by the Crown in right of its
government of any Territory.

45. (1) Where any amount payable to the Commissioner Certificates.
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







48 The Income Tax (Federal Emoluments) Act, 1960


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 registered shall have the same force and effect, and all
proceedings 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.

Garnish- 46. (1) When the Commissioner has knowledge or
ments. suspects that a person is or is about to become indebted or
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
payment 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.







The Income Tax (Federal Emoluments) Act, 1960


(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
requirement shall be applicable to all future payments by the
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.

(5) Where the person who is or is about to become serve of
1. garnishees.
indebted or liable carries on business under a name or style garnishees
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 become
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.

47. (1) Every notice or direction to be given by the signatures
Commissioner under this Act shall be signed by the notices.
Commissioner or by some person or persons from time to
time appointed by him for that purpose, and every such







50 The Income Tax (Federal Emoluments) Act, 1960


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
Commissioner, or any notice under this Act requiring the
attendance of any person or witness before the Commissioner
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.

Service of 48. (1) Notice may be served on a person either personally
notice, or by being sent by post to his last known business 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.

False 49. Any person who-
statements
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 falso
representations;








The Income Tax (Federal Emoluments) Act, 1960 51

(b) aids, abets, assists, counsels, incites or induces
another person-
(i) to make or deliver any false return or
statement under this Act, or
(ii) to keep or prepare any false accounts or
particulars concerning any income or
personal allowances affecting the amount
of tax payable under this Act,
shall be guilty of an offence.

50. Any person guilty of an offence under this ActPenalties
shall unless some other penalty is specifically provided forofences.
such offence, be liable, on summary conviction to a fine of
five hundred dollars.

51. Prosecutions for offences under this Act may be.imitation
of time
commenced at any time within three years next after the for prose-
cause of complaint arose. cautions.

52. The provisions of this Act shall not affect any saving for
criminal
criminal proceedings under any other law. proceed-
ings.
53. The Governor-General may subject to such con-Governor-
ditions as he may think fit, remit or refund the whole or anymayremit
part of the tax payable or paid as the case may be by any tax.
person if he is satisfied that it would be just and equitable
to do so.

54. The Governor-General may make regulations Begula-
generally for carrying out the provisions of this Act, andtions.
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;

(b) for the payment of tax by monthly or other
instalments;

(c) for any such matters as are authorized by
this Act to be prescribed; and







52 The Income Tax (Federal Emoluments) Act, 1960

(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.

Repeal 55. The Income Tax (Federal Emoluments) Act,
and
savings. 1958, is hereby repealed:
Cap. 151.
Provided that nothing in this repeal shall affect
anything duly done under any provision contained in that
Act previous to the enactment of this Act and any such thing
shall in so far as it could have been done under a correspond-
ing provision contained in this Act, have effect as if it had
been so done and without prejudice to the generality of the
foregoing but subject to the provisions of sections 32 and 33
of this Act-

(a) any appointment of a Commissioner or other
officer or person made under section 4 of that
Act shall be deemed to have been made under
this Act and any warrant of appointment
furnished in respect of any such appointment
to have been so furnished;

(b) any returns, lists or schedules furnished
under the provisions of that Act shall be
deemed to have been furnished under this
Act;

(c) any assessments made, assessment list pre-
pared, notices of assessment served, or
objections or appeals lodged under that Act
shall have effect as if they were made, pre-
pared, served or lodged under this Act; and

(d) any tax charged, levied or collected under
that Act shall be deemed to have been
charged, levied or collected under this Act.









The Income Tax (Federal Emoluments) Act, 1960 53


FIRST SCHEDULE


Section 16


TABLE

the first

the next

the next

the next

the next

the next

the next

the next

the next

the next

the next

the next

the next

the next


OF RATES


1,000

1,000

1,000

1,000

1,000

1,000

1,000

3,000

4,000

4,000

4,000

6,000

.32,000


dollars

dollars

dollars

dollars

dollars

dollars

dollars

dollars

dollars

dollars

dollars

dollars

dollars


every

every

every

every

every

every

every

every

every

every

every

every

every

every


dollar

dollar

dollar

dollar

dollar

dollar

dollar

dollar

dollar

dollar

dollar

dollar

dollar

dollar


For every dollar of the remainder of the income


.6,000 dollars


.. 6

8

.12

18

.25

28

.30

.35

.40

.45

55

.65

.75

.85


cents

cents

cents

cents

cents

cents

cents

cents

cents

cents

cents

cents

cents

cents


.. 90 cents








54 The Income Tax (Federal Emoluments) Act, 1960


SECOND SCHEDULE Section 38

1. These Rules may be cited as the Income Tax (Federal
Emoluments) (Deductions) Rules, 1960.

2. In these Rules, unless the context otherwise requires -

"approved" means approved by the Commissioner;
"income payment" means a payment of or on account of
emoluments 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;

"taxpayer" means any person in receipt of income liable to
tax under the Act;

"the Act" means the Income Tax (Federal Emoluments) Act,
1960.

3. Subject to the provisions of these Rules, the Commissioner
shall 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 Act, the 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.








The Income Tax (Federal Emoluments) Act, 1960 55

(2) For the purpose of calculating the amount of tax to be
deducted from an income payment it may be assumed 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 bear 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:

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.

5. Where an income payment is made to a taxpayer in respect of
a retroactive increase of emoluments 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 pay-
ment had been made by way of addition in equal instal-
ments to the total number of income payments made
during the period to which the retroactive payment
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 personal allowances to be
taken into account for the purpose of 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;

(b) within seven days of any change in the circumstances
of the taxpayer resulting in an increase of the amount
of personal allowances to which he is entitled;

(c) within such other period as the Commissioner may, in his
discretion, permit.

8. A taxpayer who has filed a statement of personal allowances
under rule 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 such change, file with the Commissioner a revised statement of
allowances.








56 The Income Tax (Federal Emoluments) Act, 1960

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.

10. 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.

11. The prescribed date for the purpose of section 24(1) of the
Act is -
(a) in the case of a person who is or has been in the service
of the Crown in respect of the government of the
Federation, the 31st day of January in the year following
the income year;
(b) in the case of a person specified in section 6 of the Act,
not being a person who is or has been in the service of the
Crown in respect of the government of the Federation,
the 31st daytof March in the year following the income
year;
(c) notwithstanding the provisions of paragraph (a) or (b)
of this rule, in the case of any person in respect of whose
income the Commissioner has given a direction under
section 14 of the Act the ninetieth day after the
termination of the accounting year.

Passed by the House of Representatives this 23rd day
of May, 1960.

G. E. L. LAFOREST,
Clerk, House of Representatives.

E. R. L. WARD,
Speaker.

Passed by the Senate this 2nd day of June, 1960.
D. F. MAYERS,
Acting Clerk of the Senate.


Printed by Yuille's Printerie Limited, Trinidad,
by authority of the Government of The West Indies.




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