PROVISIONAL TAX

Press, Volume CV, Issue 30976, 4 February 1966, Page 12

PROVISIONAL TAX

Explanation Of Procedure

Provisional tax is neither a charge on the previous year’s income nor on income not yet received. It is a charge on the current year’s income, Mr C. K. Jones, assistant district commissioner of the Inland Revenue Department said in a statement yesterday. Mr Jones was commenting on a letter from a correspondent, “Bewildered,” who said that an officer of the Inland Revenue Department had spent some time explaining that the tax was a charge on the previous year’s income, and not for the year ahead.

“I regret that this point was not sufficiently explained to ‘Bewildered’ when he spoke to the officer from the department,” said Mr Jones. Under the P.A.Y.E. system the salary or wage-earner pays tax by deductions from his pay either weekly, fortnightly or monthly as the case may be. The provisional taxpayer normally pays his £~ a > Ux by only two instalments payable by September 7 and March 7. He has already earned nearly six '“tmtiis of his income by SepwMe r [J"** alm<)St the v yea { s income by Hv^ h ?’ so he is also in realaHvPh^ng he earns - Natur ’ hc WIII not know the nount of his income .mV 1 “ fter March 31 - and for w's'inmm 016 previous bMiVrIS- me “ used as the &art a ~I npUtin « his P r <>