SCHEDULE 2. AMENDMENT TO THE INCOME TAX ORDINANCE, 1956(Sabah No. 29 of 1956)

NO. 4 OF 1967
FINANCE ACT 1967

SCHEDULE 2. AMENDMENT TO THE INCOME TAX ORDINANCE, 1956(Sabah No. 29 of 1956)
Part VIA Development Tax. Charge of development tax.

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

PART VIA

DEVELOPMENT TAX

32A. (1) Subject to the provisions of the Fourth Schedule, a tax to be known as development tax shall be assessed for the year of assessment commencing, in the case of a company, on the 1st day of January, 1967, and, in any other case, on the 1st day of July, 1967, and for subsequent years of assessment in either case, 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 Fourth Schedule a person shall be treated as having a development source in a
year of assess-ment 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 Sabah, 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.

(3) In its application to persons other than companies this section shall come into force on the 1st day of July, 1967

3. In sections 61 (2), 71' and 73 (1) (b) the words "one month" shall be substituted for the words "two months".

4. In section 73 (1) (a) the word "ten" shall be substituted for the word "five