Finance Act, 1965

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Miscellaneous amendments.

55.—(1) The following rule shall be substituted for Rule 11 of the Rules applicable to Cases I and II of Schedule D :

“11. (1) If at any time after the 5th day of April, 1965, a trade, profession or vocation which immediately before that time was carried on by an individual person (hereafter in this paragraph referred to as the predecessor) becomes carried on by another individual person or by a partnership of persons (including a partnership in which the predecessor is a partner), the tax payable for all years of assessment by the predecessor shall be computed as if the trade, profession or vocation had been permanently discontinued at that time.

(2) If at any time after the 5th day of April, 1965, an individual person (hereafter in this paragraph referred to as the successor) succeeds to a trade, profession or vocation which immediately before that time was carried on by another individual person or by a partnership of persons (including a partnership in which the successor was a partner), the tax payable for all years of assessment by the successor shall be computed as if he had set up or commenced the trade, profession or vocation at that time.

(3) In the case of the death of a person who, if he had not died, would, under the provision of this rule, have become chargeable to income tax for any year, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators, and shall be a debt due from and payable out of his estate.”

(2) Paragraph (2) of Rule 19 of the Rules applicable to Cases I and II of Schedule D is hereby amended by the substitution of “any of the provisions of the Income Tax Acts” for “Rule 11 of these Rules (as amended by section 13 of the Finance Act, 1929 (No. 32 of 1929))”.

(3) Rule 5 of the General Rules is hereby amended by the addition of the following proviso:

“Provided that in the case of a partnership, the precedent partner, or if there is no precedent partner, the factor, agent, receiver, branch, or manager shall be deemed to be the agent of a non-resident partner.”

(4) Subsection (3) of section 31 of the Finance Act, 1959 , is hereby amended by the substitution of “of the provisions of the Income Tax Acts” for “provisions in Rule 11 of the Rules applicable to Cases I and II of Schedule D”.

(5) Subsection (1) of section 37 of the Finance Act, 1959 , is hereby amended by the insertion of “, subject to section 52 of the Finance Act, 1965 ,” before “be made to or on the person”.

(6) Subsection (2) of section 37 of the Finance Act, 1959 , is hereby amended by the substitution of “arising to any partner from” for “of” where that word occurs firstly.

(7) Subsection (4) of section 37 of the Finance Act, 1959 , is hereby amended by the insertion of “, under subsection (3) of section 51 of the Finance Act, 1965 ,” before “the profits and gains”.

(8) Subsection (3) of section 57 of the Finance Act, 1959 , is hereby amended by the substitution of “any of the provisions of the Income Tax Acts” for “Rule 11 of the Rules applicable to Cases I and II of Schedule D”.

(9) Subsection (2) of section 63 of the Finance Act, 1959 , is hereby amended by the insertion of “Rule 6 of the Rules applicable to Cases I and II of Schedule D, Part V of the Finance Act, 1956 , Part IV of the Finance (Miscellaneous Provisions) Act, 1956 , or” before “any of the provisions” and the insertion of “, subject to section 52 of the Finance Act, 1965 ,” before “be made to or on the person”.

(10) Subsection (7) of section 4 of the Finance Act, 1960 , is hereby amended by the insertion of “prior to 1965-66” in paragraph (a) before “for which” and the insertion of “for the year of assessment 1964-65” in paragraph (b) before “shall be”.

(11) Subsection (8) of section 4 of the Finance Act, 1960 , is hereby amended by the insertion of “or where by reference to subparagraph (ii) of paragraph (a) of subsection (1) of section 51 of the Finance Act, 1965 , a several trade of a partner has been deemed to have been permanently discontinued,” after “Cases I and II of Schedule D”.

(12) Subsection (2) of section 5 of the Finance Act, 1963 , is hereby amended by the addition of the following proviso:

“Provided that, where a claim under section 34 of the Income Tax Act, 1918, is made for 1964-65 by a person who is a partner in a partnership in respect of a loss sustained in the partnership trade, then, if the year 1964-65 is the basis year for an assessment on him for the year 1965-66 in respect of the profits arising to him from the same partnership trade, he may require his share of the loss for 1964-65 to be determined as if an amount equal to his appropriate share of a joint allowance under subsection (7) of section 52 of the Finance Act, 1965 , were to be deducted in computing his share of the profits or gains or losses of the trade for the year of claim 1964-65, and a claim may be so made notwithstanding that apart from this allowance a loss has not been sustained in the trade by the partner making the claim.”