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Thursday, 18 September 1958
Page: 1402

Rates of Tax and Contribution Payable by a Company other than a Company in the Capacity of a Trustee.

1.   In the case of a company (not being a private company, a co-operative company, a nonprofit company or a life assurance company) which is a resident, the rates of income tax and social services contribution are -

(a)   for every £1 of so much of the taxable income as does not exceed Five thousand pounds - Six shillings and sixpence; and

(b)   for every £1 of the remainder of the taxable income - Seven shillings and sixpence.

2.   In the case of a company (not being a private company, a co-operative company, a nonprofit company or a life assurance company) which is a non-resident, the rates of income tax and social services contribution are -

(a)   for every £1 of so much of the taxable income consisting of dividends as does not exceed Five thousand pounds - Five shillings and sixpence;

(b)   for every £1 of so much of the taxable income not consisting of dividends as does not exceed the amount (if any) by which the taxable income consisting of dividends is less than Five thousand pounds - Six shillings and sixpence; and

(c)   for every £1 of the part of the taxable income to which neither of the preceding sub-paragraphs of this paragraph applies - Seven shillings and sixpence.

3.   In the case of a company which is a private company, the rates of income tax and social services contribution are -

(a)   for every £1 of so much of the taxable income as does not exceed Five thousand pounds - Four shillings and sixpence;

(b)   for every £1 of the remainder of the taxable income - Six shillings and sixpence; and

(c)   for every £1 of the undistributed amount in respect of which the company is liable under section one hundred and four of the Assessment Act to pay additional tax - Ten shillings.

4.   In the case of a company (not being a private company or a life assurance company) which is a co-operative company or a non-profit company other than a friendly society dispensary, the rates of income tax and social services contribution are -

(a)   for every £1 of so much of the taxable income as does not exceed Five thousand pounds - Five shillings and sixpence; and

(b)   for every £1 of the remainder of the taxable income - Seven shillings and sixpence.

5.   In the case of a non-profit company which is a friendly society dispensary, the rate of income tax and social services contribution is Five shillings and sixpence for every £1 of the taxable income.

6.   In the case of a company (not being a pri vate company) which is a mutual life assurance company, the rates of income tax and social services contribution are -

(a)   for every £1 of so much of the taxable income as does not exceed Five thousand pounds - Four shillings and sixpence; and

(b)   for every £1 of the remainder of the taxable income - Six shillings and sixpence.

7.   In the case of a company (not being a private company) which is a life assurance company other than a mutual life assurance company, the rates of income tax and social services contribution are -

(a)   for every £1 of so much of the mutual income as does not exceed Five thousand pounds - Four shillings and sixpence;

(b)   for every £1 of the remainder of the mutual income - Six shillings and sixpence;

(c)   if the company is a non-resident, for every £1 of so much of the taxable income, other than the mutual income, consisting of dividends as does not exceed the amount (if any) by which the mutual income is less than Five thousand pounds - Five shillings and sixpence;

(d)   for every £1 of so much of the taxable income, other than the amounts of income to which the preceding subparagraphs of this paragraph apply, as does not exceed the amount (if any) by which the total of those amounts is less than Five thousand pounds - Six shillings and sixpence; and

(e)   for every £1 of the part of the taxable income to which none of the preceding sub-paragraphs of this paragraph applies - Seven shillings and sixpence.

8.   For every £1 of interest in respect of which a company is liable, in pursuance of sub-section (1.) of section one hundred and twenty-five of the Assessment Act, to pay income tax and social services contribution, the rate of income tax and social services contribution is Seven shillings and sixpence.

This resolution is submitted to the committee for the purpose of declaring the rates at which income tax and social services contribution shall be payable for the current financial year 1958-59. As indicated in the course of the Budget speech, it is not proposed to provide tax concessions of a general character. Accordingly, the rates proposed in this resolution are the same as those declared last year.

The rates set out in the schedules to the resolution will be applicable to income derived by companies during the 1957-58 income year. In the case of individual taxpayers, however, the pay-as-you-earn system operates so that the proposed rates will be applicable to income derived during the current income year ending on 30th June, 1959.

As the provisions of the resolution now submitted declare the same rates as were discussed and adopted by the Parliament last year, I do not propose to discuss in any detail the paragraphs of the resolution. I submit the resolution for the consideration of the committee.

Progress reported.







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