S.L. 372.14 Art. 7Application of the FSS Main Tax Deduction Method.

(1) Tax deduction under the FSS Main Tax Deduction

Method referred to under rule 6(1)(a) and computed in accordance with Schedule B shall apply in respect of:

(a) all local pensions receivable by the payee other than those regulated by the provisions of sub-rule (3); and

(b) any income from emoluments as defined under rule 2(i) (excluding those payable in respect of part-time work to which the provisions of article 90A of the Income Tax Act and of the Part-time Work Rules apply) indicated by the payee in his Payee Status Declaration form as constituting the main source of his emoluments: Provided that where the payee is in receipt of one or more local pensions as aforesaid, no further emoluments arising to him shall qualify for tax deduction under the FSS Main Tax Deduction Method: Provided further that where the payee is not in receipt of any such pension, he shall, at any one time, indicate only one source of income from emoluments, as defined under rule 2(i), as constituting the source to which the said method applies.

(2) Where any payment of emoluments made to a payee is to be considered for deduction purposes under the FSS Main Tax Deduction Method referred to in sub-rule (1), the payer shall compute the amount of tax deduction therefrom by applying either -

(a) the Main Cumulative Tax Deduction Formula; or

(b) the Main Tax Deduction Tables, in the manner set out in Part I and Part II of Schedule B, respectively, and in accordance with sub-rule (3).

(3) Notwithstanding the other provisions of this rule, where the Director of Social Security effects payment of a pension payable under the Social Security Act to a payee, who is also the recipient of one or more pensions from any other source, such Director shall, subject to appropriate information being brought to his notice by the Commissioner, take into account, for the purpose of tax deduction, the aggregate amount of the pensions receivable by such payee and compute the relative amount of the tax to be deducted in the manner directed by the Commissioner.

(4) Unless the Commissioner otherwise directs, payers paying emoluments which fall to be considered under the FSS Main Tax Deduction Method shall, for the purposes of sub-rule (2), compute the amount of tax deduction by applying the Main Cumulative Tax Deduction Formula, so however that payers paying emoluments to less than ten full-time payees may, at any time, on their own account, opt to make use of the Main Tax Deduction Tables: Provided that no payer may concurrently apply both methods of computation referred to in sub-rule (2).

(5) For the purposes of this rule:

"full-time payee" means any individual whose emoluments are subject to tax deduction under the FSS Main Tax Deduction Method.