SCHEDULE 3. AMENDMENT TO THE INLAND REVENUE ORDINANCE, 1960 (Sarawak No. 13 of 1960) (FINANCE ACT 1967

NO. 4 OF 1967
FINANCE ACT 1967

SCHEDULE 3. AMENDMENT TO THE INLAND REVENUE ORDINANCE, 1960 (Sarawak No. 13 of 1960)

SCHEDULE 3. Deductions not allowed for royalties and other payments in respect of extraction of timber from forest.

Schedule 3

[Section 2 (3)]

1. There shall be substituted for section 2 (2) of the Ordinance the following:

"(2) For the purposes of this Ordinance, a wife shall not be deemed to be living apart from her husband unless-

(a) they are separated pursuant to a decree of a competent court or by deed of separation; or

(b) they are in fact separated in such circumstances that the separation is likely to be permanent; or

and the expression 'living with her husband' shall be construed as 'not living apart from her husband'."

2. There shall be inserted in the Ordinance after section 24 the following new section:

24A. Notwithstanding the provisions of section 22, for the purposes of ascertaining the assassable profits for the year of assessment 1967 and subsequent years of assessment in respect of whIch a person is chargeable to tax under this Part no deduction shall be allowed in respect of-

(i) one half of the amount of any royalty paid or payable to the Government of Sarawak or of any other State in Malaysia 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.".

3. In section 86 (5) the word "ten" shall be substituted for the word "five".

4. There shall be included in the Ordinance, at the end thereof after section 107, the following new Part:

"PART XV

DEVELOPMENT TAX

Charge of development tax.

108. (1) Subject to the provisions of the Sixth Schedule, a tax to be known as development tax shall be charged 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 charged shall be payable for that year, and the provisions of this Ordinance shall apply, with any necessary modifications, for all purposes to development tax as they do to profits tax save as otherwise provided in that Schedule.

(2) In this section and in the Sixth Schedule, a person shall be treated as having a development source in a year of assessment if for the purposes of Part IV he has assessable profits for that year or has incurred a loss in the basis period for that year:

Provided that where an individual has for a year of assessment assessable profits or has incurred such a loss from the letting of a residence in which he normally resides and the assessable profits or the loss, as the case may be, do 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.".