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It is hereby certified that the balance standing in the books of the Post Office Savings Bank to the credit of the depositor......


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amounts in the whole to the sum of....


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General Post Office Johannesburg.

Proc. No. 33 of 1902.

Proc. No. 34 of 1902.

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Definition of "cost of production."

Now, therefore, by virtue of the authority in me vested I do hereby, declare, proclaim, and make known as follows:1. The regulations published in the Staatscourant, of the tions of 15th Feb., 15th February, 1899, regarding the "payment of the five per

Repeal of Regula


cent. tax on the net profits of Gold Mines," and so much of any other law or regulations inconsistent with the provisions of this Proclamation, shall be, and are hereby repealed.

Definition of



By His Excellency the Administrator of the Transvaal.

(DATED 5TH JUNE, 1902.)

Tax of 10 per cent. 2. There shall be levied a tax of ten per cent. on the on annual net pro- annual net produce obtained from the working of claims duce of gold-bearing mynpachts and other gold-bearing properties situated in this

Colony; such net produce shall be taken to be the value of the gold produced after deduction there from of the cost of production, and of such sums as may be allowed in respect of the exhaustion of capital as hereinafter defined.

WHEREAS it is desirable to repeal the "Regulations regarding the payment of a five per cent. tax on the net profits of Gold Mines," published in the Staatscourant of the 15th February, 1899, and make other provisions in lieu thereof :


3. For the purposes of this Proclamation cost of production shall mean :

(1.) All amounts not being capital outlay actually expended during the year on winning and treating the ore under the heads specified in Account No. 1, contained in the Schedule annexed thereto.

(2.) All amounts actually expended on general charges as specified in the aforesaid Schedule.

4. Capital shall mean for the purposes of this Proclamation :

(1). All amounts actually expended in mine equipment, shaft sinking, and development, whether incurred before or after the commencement of production not. being of a recurrent character, or such as are ordinarily defrayed out of revenue.

́2) All amounts expended for ordinary purposes of administration prior to the commencement of production.

5. (1) The amount to be deducted under Section two by way of allowance for exhaustion of capital shall be such sum as, if paid by way of annuity from the date of the commencement of production (or from the date of the expenditure of the capital if such expenditure took place subsequent to such commencement) for the whole period during which the property is estimated to continue to be workable, would at 3 per cent. compound interest produce an amount equal to the amount of such capital.

(2) The period referred to in the last preceding sub-section shall, subject to the provisions of Section nine of this Proclamation, be determined by the Commissioner of Mines on the estimate contained in Account No. II. of the statement to be furnished in accordance with the provisions of section sir hereof.

Proc. No. 34 of 1902.

Amount to be de

deducted under Section 2 hereof.

Determination of

Section 5 (1).

(3) For the purpose of determining this period it shall be open to the Commissioner of Mines, or any person authorised period mentioned in by him, thereto to call for such further particulars as he shall think fit, and to make, or cause to be made, any examination of the property, and any plans or documents which may appear to him to be necessary for the purpose.

(5) In any such revision the same provisions shall apply as in the original determination of the period.

Revision of period

lation of deduction.

(4) Such period having been determined as herein provided, shall, for the purpose of calculating the deduction to be for purpose of calcu allowed in respect of exhaustion of working capital, be subject to revision in every fifth year after the year in which it was first determined. If on such revision it shall appear according to a just estimate then to be made that the period determined originally, or, by any subsequent revision, was greater or less than the true period according to such estimate, such adjustment shall be made in the deduction to be allowed as shall be necessary, due regard being had to the time which shall have elapsed since such original or subsequent determination, and to the total amount of the deductions already allowed.

Statement rendered

bearing properties to

6. (1) A statement shall be rendered by every company or partnership owning claims, mynpachts or other gold-bearing by owners of goldproperties to the Receiver of Revenue at Johannesburg, in the the Receiver of form prescribed in the Schedule annexed hereto, or in any similar Revenue, according form which may be accepted by the Controller of the Treasury, to form in Schedule. within one month after the date of the making up of the first accounts rendered to the shareholders or partners of such company or partnership after the taking effect of this Proclamation; and if no accounts are made up by such company or partnership prior to the 30th June, 1903, then such statement as aforesaid shall be rendered on such last-mentioned date. In the case of properties not owned by any company or partnership the statement shall be rendered on the 30th June, 1903, or on such other date as shall be allowed by the Controller of the Treasury. The said statement shall be in respect of the twelve months immediately preceding the date up to which such accounts are rendered as aforesaid, or the 30th of June, as the case may be.

Proc. No. 34 of 1902.

By whom signed.

Duty to be paid.

Annual Statement.

Colonial Treasurer

may call for evidence to satisfy himself of correctness of state





(5) On any such statement being rendered, and the duty Statement to Colonial paid as herein provided, the Receiver shall forthwith transmit the statement and any documents connected therewith to the Controller of the Treasury.



(2) The statement in the case of a company shall be made and signed by the Managing Director or Secretary thereof, and in any other case by the principal partner or other person having the control or management of the property within this Colony.

amended statement.

(3) At the same time as such statement is rendered the duty appearing to be due thereon in accordance with the provisions of this Proclamation shall be paid to the said Receiver, who shall grant a receipt therefor.

Copy of assessment to be transmitted to

Receiver of Revenue.

(4) A similar statement shall be rendered annually not later than twelve months after the date of the one previously rendered, and the duty paid as aforesaid.

If not satisfied may


8. (1) If the Controller of the Treasury is not satisfied that call for amended the net produce as disclosed by any such statement as aforesaid, is the full and true amount on which the tax imposed by this Proclamation is payable, he shall cause the company, partnership, or person rendering such statement to be notified in writing of the particulars in which it shall appear to him that such statement should be amended, and shall call for a statement amended in accordance with such notification.

(6) In the case of a property which shall cease to be worked within a year from the taking effect of this Proclamation, or from the date of the last statement rendered under this Proclamation a statement shall be rendered for the period up to the date of ceasing, and the duty chargeable thereon shall be a first charge on such property or any assets existing in connection therewith.

7. The Controller of the Treasury may call for such evidence as he thinks fit with a view to satisfying himself as to the correctness of the statement referred to in the last preceding section, and for this purpose shall have the right at all reasonable times of inspecting the books of the company, partnership, or person rendering such statement, or of causing the same to be inspected by any person authorised thereto in writing.

(2) On such amended statement being rendered to the satisfaction of the Controller of the Treasury, he shall cause an assessment to be made in accordance therewith of the amount on which the tax shall be paid.

Assessment in case

(3) If the Company, partnership, or person in question shall amended statement not render such amended statement to the satisfaction of the

not rendered.

Controller of the Treasury within 14 days or such further period, as may be allowed, the Controller of the Treasury shall cause an assessment to be made of the amount on which in his opinion the tax should be paid according to this Proclamation and shall notify the company, partnership, or person of such assessment, shewing in detail how such assessment is made.

(4) A copy of any assessment made under this section shall be forwarded to the Receiver of Revenue at Johannesburg, and the

duty due thereon according to this Proclamation shall on demand be payable to the said Receiver.

9. It shall be lawful for the company, partnership, or person aforesaid at any time within one month from the date of receiving notification of assessment, as provided in the last preceding section, on payment of the amount demanded as aforesaid to call on the Controller of the Treasury, to have the amount on which the said tax shall be paid determined by arbitration, and if such amount be less than that assessed, the said Receiver of Revenue shall refund to the said company, partnership, or person the difference between the amount of the tax paid by the said company, and the amount payable on the sum determined by arbitration as aforesaid. If the amount determined by such arbitration shall be greater than that assessed as aforesaid, the tax due in accordance with the provisions of this Proclamation or the difference between such amounts shall on demand be payable to the said Receiver.

Proc. No. 34 of 1902.

Arbitration of amount of assessment.

Pr. Tr. 5 of 1902 to

10. The provisions of the "Expropriation of Lands and Arbitration Clauses Proclamation, 1902" relating to arbitration, apply to arbitration shall mutatis mutandis apply to any arbitration under this Proclamation.

11. The demand by the Receiver of Revenue mentioned in the preceding sections, shall be delivered at the office of the made. party liable for the tax, or posted thereto by registered letter properly stamped, and thereupon the amount demanded shall be a debt due to His Majesty, recoverable after four weeks from the date of the said demand, with interest at the rate of ten per cent. per month from the date of such demand.

How demand to

Penalty for failing

12. Any company, partnership, or person failing to render the statement mentioned in Section six of this Proclamation, to render statement. shall be liable to a penalty of ten pounds for every day such company, partnership, or person is in default, after the expiration of one month from the date prescribed in the said Section for rendering such statement.

Penalty for fram

13. Any person wilfully framing any false statement or account for the purposes of this Proclamation, shall be deemed ing false statement. to be guilty of perjury, and shall be liable to the penalties provided for the commission of that crime; and any company, partnership, or person employing such person to frame such account shall be liable to a penalty not exceeding £500, in addition to making good any unpaid duty which was properly payable under this proclamation.

14. Any person who refuses to allow the Controller of the Treasury, or any person duly authorised by him in writing of books. thereto, to inspect such books as he is entitled under this Proclamation to inspect, or who wilfully obstructs him in such inspection, or refuses to allow the Commissioner of Mines or any person deputed by him to make such inspection of the property as he is by this Proclamation authorised to make, or wilfully obstructs him therein, shall be liable to a fine of £50 for every such refusal or obstruction, and in default of payment to im

Penalty for refusal to allow inspection

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