EXCESS PROFITS TAX
Explanation Of Provision
In Act
As there is some doubt regarding the effect of section 5 (2) of the Excess Profits Tax Act, and as the general interpretation appears to be that the deduction of losses carried forward from previous years is disallowed in arriving at the assessable income for the purpose of computing the amount of excess profits tax, the Wellington Chamber of Commerce has investigated this point and gives the ruling of the Commissioner of Taxes, which is as follows: — Section 5 (2) of the Excess Profits Tax Act, 1940, is interpreted to mean that in determining whether or not excess profits have been derived during any income year, a loss carried forward in accordance with the provisions of section 81 of the Land and Income Tax Act, 1923, is first deducted from the assessable income for that year. The application of the section is illustrated by the following example: — £ Assessable income, year ended March 31, 1941 .. * Less loss year ended 31/3/40 2000 Taxable income (for excess profits purposes ™(IO Less standard income (assumed) .. 3000 4000 Less deficiency for year ended March 31, 11)40, in terms of section 5 (9) of the Excess Profits Tax Act. 1940 3000
Basis for calculation of excess profits tax 1000
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/DOM19410212.2.127
Bibliographic details
Dominion, Volume 34, Issue 118, 12 February 1941, Page 9
Word Count
211EXCESS PROFITS TAX Dominion, Volume 34, Issue 118, 12 February 1941, Page 9
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