SCHEDULE I. AMENDMENT TO THE INCOME TAX ORDINANCE, 1947

NO. 4 OF 1967
FINANCE ACT 1967

SCHEDULE I. AMENDMENT TO THE INCOME TAX ORDINANCE, 1947
(State of Malaya: M.U. No.48 of 1947)

SCHEDULE I. Deductions not allowed for royalties and other payments in respect of extraction of timber from forest.

SCHEDULE 1
[Section 2(1)

1. There shall be inserted in the Ordinance after section 15 the following new section:

15A. Notwithstanding the provisions of section 14, for the purpose of ascertaInIng the Income of any person for the year of assessment 1967 and for subsequent years of assessment no deduction shall be allowed in respect of-

(i) one half of the amount of any royalty paId or payable to a State Government for the extraction of timber from
the forest or, where no such royalty is payable, one-half of the amount of any duty paid or payable on the
export of the timber so extracted, or

(ii) any sum, by whatever name called, paid or payable to a person other than a State Government for the use of a

licence or permit to extract timber from the forest.",

Section 22C is repealed.

3. There shall be inserted in the Ordinance between Parts VI and VII the following new Part:

PART VIA

DEVELOPMENT TAX

33A. Charge of development tax

(1) Subject to the provisions of the Fifth Schedule, a tax to be known as development tax shall be assessed for the year of
assessment 1967 and subsequent years of assessment, upon every person having development income, ascertained under
that Schedule, for any such year, or having a development source at any time in that year, in an amount ascertained in
accordance with that Schedule, and the development tax so assessed shall be payable for that year, and save as otherwise
provided in that Schedule the provisions of this Ordinance relating to a company or to any other person, as the case may be, shall
apply, with any necessary modifications, for all purposes to development tax as they do to income tax and, subject to any such
modifications, development tax shall be deemed for all the purposes of this Ordinance to be income tax.

(2) For the purposes of this section and the Fifth Schedule a person shall be treated as having a development source in a year of assessment if for income tax he has statutory income for that year in respect of any trade, business, profession or vocation or in respect of rents or premiums derived from property situated in the States of Malaya, or if he has a loss incurred by him in any trade, business, profession or vocation which, if it had been a profit, would have been statutory income for that year in respect of the trade, business, profession, or vocation or if he has a property loss (as defined in that Schedule) for that year:

Provided that where an individual has for a year of assessment statutory income or such a property loss from the letting of a residence in which he normally resides and the statutory income or that property loss, as the case may be, does not arise from the habitual letting of that residence, he shall be treated as not having a

development source in respect of that residence in that year.

4. In section 84 (l) (a) the word "ten" shall be substituted for the word "five".