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15 1947

FINANCE ACT, 1947

PART I.

Income Tax.

Income tax and sur-tax for the year 1947-48.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1947, at the rate of six shillings and sixpence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1947, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1946.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1947, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1947.

Alteration of personal allowances.

2. —Subsection (1) of section 18 of the Finance Act, 1920, as amended by section 3 of the Finance Act, 1939 (No. 18 of 1939), shall be construed and have effect as if the words “two hundred and sixty pounds” were substituted therein for the words “two hundred and twenty pounds” and the words “one hundred and forty pounds” substituted therein for the words “one hundred and twenty pounds”.

Amendments as to liability of assurance companies.

3. —(1) Where the profits of an assurance company in respect of its life assurance business are, for the purposes of the Income Tax Acts, computed in accordance with the rules applicable to Case I of Schedule D of the Income Tax Act, 1918, then, subject to subsection (3) of this section, the following provisions shall have effect:—

(a) such part of those profits as belongs or is allocated to, or is expended on behalf of, policy-holders or annuitants shall be excluded in making the computation;

(b) such part of those profits as is reserved for policy-holders or annuitants shall also be excluded in making the computation, but if any profits so excluded as being so reserved cease at any time to be so reserved and are not allocated to, or expended on behalf of, policy-holders or annuitants, then those profits shall be treated as profits of the company for the year in which they ceased to be so reserved.

(2) Where an assurance company carries on both ordinary life assurance business and industrial life assurance business, then, subject to subsection (3) of this section, the business of each such class shall, for the purposes of the Income Tax Acts, be treated as though it were a separate business and section 33 of the Income Tax Act, 1918, shall apply separately to each such class of business.

(3) Neither subsection (1) nor subsection (2) of this section shall apply to an assurance company in respect of any year of assessment unless the company elects, by giving notice in writing to the inspector of taxes within twelve months after the end of that year, that the said subsections (1) and (2) shall both apply to it in respect of that year.

Amendment of Rule 6 of Miscellaneous Rules applicable to Schedule D.

4. —Where—

(a) the proper officer having the management of the accounts of a body may, in pursuance of Rule 6 of the Miscellaneous Rules applicable to Schedule D of the Income Tax Act, 1918, be charged with tax for any year of assessment, and

(b) in that year that body occupies any property, in respect of which any tax under Schedule A of the said Act for that year would, but for this section, be ultimately borne by that body,

then, in computing the amount on which the said proper officer may be so charged for that year, a deduction shall be made of a sum equal to whichever of the following is the lesser—

(i) the amount on which, but for this section, the said proper officer might be so charged,

(ii) the net amount on which the tax, referred to in paragraph (b) of this section, would, but for this section, be ultimately borne by that body.