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Reduction of income tax when margin above a certain limit is small.
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32.—(1) Where owing to the fact that the total income of any person exceeds a certain limit—
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(a) he is liable to pay income or super-tax at a higher rate; or
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(b) he ceases to be entitled to any exemption or abatement; or
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(c) he becomes entitled to a reduced exemption or abatement,
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the amount of income tax or super-tax payable by that person shall, where necessary, be reduced so as not to exceed the sum of the following amounts:—
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(i) the amount which would have been payable if his income had reached, but had not exceeded that limit; and
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(ii) the amount by which his total income exceeds that limit.
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(2) where income tax is charged at different rates on different parts of the total income, the deduction from total income requried in calculating the maximum duty payable under this section for the purpose of bringing the total income down to the limit shall be made from that part of the total income which is taxed at the lowest rate.
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(3) All the provisions of the Income Tax Acts which relate to claims for exemption or abatement, or the proof to be given with respect to those claims, shall apply to claims for relief under this section and the proof to be given with respect to those claims.
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