This Act may be cited as the Land and Income Tax Amendment Act, 1922, and shall be read together with and deemed part of the Land and Income Tax Act, 1916 (hereinafter referred to as the principal Act).

The Schedule to the Land-tax (Annual) Act, 1922, is hereby amended by omitting from clause three the reference to twenty per centum, and substituting a reference to ten per centum.

For the purposes of the principal Act, when a new valuation of any land is made by the Valuer-General pursuant to section thirty-six of the Valuation of Land Act, 1908, the amended value shall be deemed to be the value appearing on the district valuation roll on the thirty-first day of March next succeeding the date of the application for a new valuation, notwithstanding that the new valuation may not then have been actually made.

This section shall be deemed to have been in force as from the first day of April, nineteen hundred and twenty-one.

Notwithstanding anything to the contrary in section twenty-six of the Finance Act, 1917, no Native shall, for any year of assessment, be chargeable with an amount of land-tax in respect of his interest in Native land in excess of one-fourth of the total revenue derived or derivable from that land in respect of the year ending on the thirty-first day of March preceding the year of assessment.

For the year commencing on the first day of April, nineteen hundred and twenty-two, income-tax shall be assessed, levied, and paid pursuant to the principal Act at the rates specified in the Schedule hereto.

Nothing in this section shall apply with respect to any loss incurred by a taxpayer prior to the year commencing on the first day of April, nineteen hundred and twenty-three.

For the purposes of this section any loss incurred by a taxpayer shall be ascertained in accordance with the provisions of the principal Act for the calculation of assessable income.

Notwithstanding anything to the contrary in the principal Act, any taxpayer who satisfies the Commissioner that he has in any year incurred a loss in any business carried on by him shall be entitled to claim that such loss be carried forward and, so far as may be, deducted from or set off against his assessable income for the three following years:

Provided that any relief under this section shall be given so far as possible from the first assessment within the aforesaid period of three years, and, so far as it cannot then be given, shall be given from the next assessment, and so on.

Any company resident in New Zealand and carrying on business exclusively in any of the islands of the Pacific Ocean, not being British possessions, shall be assessable for income-tax only in respect of such part of its income as is received in New Zealand.

The special exemption allowed by section eighty-two of the principal Act, in respect of the dependent children of a taxpayer, shall apply in respect of his dependent stepchildren or grandchildren:

Provided that a special exemption for any year shall not be allowed to any taxpayer in respect of any grandchild if an exemption in respect of such child has been allowed for that year to either parent of the child.

In addition to the exemptions provided for by section eighty-four of the principal Act, the income derived by any person from any pension under the War Pensions Act, 1915, shall be exempt from taxation.

The proviso to paragraph (d) of section eighty-five of the principal Act, as appearing in section twenty-nine of the Finance Act, 1917, is hereby amended by inserting, after the word “timber” wherever it occurs, the words “or coal.”

Section eighty-six of the principal Act is hereby amended—

Section nine of the Finance Act, 1921 (No. 2), is hereby amended by omitting from subsection one the words “ten per centum,” and substituting the words “five per centum.”

Section thirteen of the Finance Act, 1921 (No. 2), is hereby amended by omitting the word “assessable,” and substituting the word “taxable.”

For the purposes of the principal Act a husband and wife carrying on business together shall not be deemed to be carrying on business as partners unless in fact they are carrying on business under a deed of partnership.