Commonwealth and State Income Taxes Agreement Act of 1924 (15 Geo v No. 15) (Qld)

10936 INCO}IE TAX. Income Taxes Agreement Act. 15 GEO. V. No. 15, INCOME TAX. Commonwealth and State Income Taxes Agreement Act of 1924 .. ] 5 Geo. V. No. 15 Income Tax Act of 1924 .. 15 Geo. V. No. 34 15 Geo. V. An Act to Ratify and Confirm an Agreement made No. 15. THE between the Commonwealth of Australia CO:\lMON· WEALTH and the State of Queensland relating to A~D STATE INCOME the Assessment and Collection of Common- TAXES .-\GREEMENT wealth Income Tax and State Income Tax ACT OF 1\)24. by One Agency, and for other incidental purposes. Pream bIe. [ASSENTED TO 28TH OCTOBER, 1924.] W HEREAS by an Act of the Parliament of the Commonwealth of Australia intituled *The Income Tax Collection Act, 1923, it is provided that the Com- monwealth may arrange with any State for the collection by State officers of the whole or part of the income tax payable in that State under Commonwealth law, and that the Agreement relating to any such arrangement. may make provision for any other matters necessary or convenient to be provided for carrying out the arrange- ment, including the transfer of officers from the Service of the Commonwealth to the Service of the State, and their re-transfer from the Service of the State to the Service of the Commonwealth, and the rights and obligations of suoh officers; and that any such pro- vision shall be valid and effectual for all purposes: AND WHEREAS, pursuant to such provision, an Agreement dated the thirty-first day of October, one thousand nine hundred and twenty-three, was made by and between the Commonwealth of Australia and the State of Queensland, a copy whereof is set forth in the Schedule to this Act: AND 'WHEREAS it is necessary that the said Agree- ment should be ratified and confirmed by an Act of the Parliament of Queensland so as to carry the same into full execution and effect: Be it therefore enacted by the King's Most Excellent Majesty, by and with the advice and consent of the * No. 28 of 1923, 21 CommonwegIth Statutes, pe.ge 67.

INCO~ IE TAX. 10937 1924. Income l'axe,s Ag1'eement Act. Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows :- 1. This Act may be cited as "The Commonwealth Short title. and State Income Taxes Agreement Act oj 1924." 2. (1.) The Agreement made on the thirty-first day of Confirmation October, one thousand nine hundred and twenty-three, ~ ~ reement between the Commonwealth of Australia and the State of 31st of Queensland, a copy whereof is set forth in the Schedule ? ~~~ ~er, to this Act, is hereby ratified and confirmed as from the Schedule.. said date; and all acts, matters, and things done or performed under or pursuant to the said Agreement prior to the passing of this Act, or to be done or per- formed under or pursuant to the said Agreement after the passing of this Act, are ratified and confirmed and are authorised and have been and are and shall be valid and effectual for all purposes whatsoever. (2.) The Governor in Council may authorise and Performance cause any work or services to be performed for the ~ ~ ~ ~ r: ffi~ ~ r Government of the Commonwealth by any officer in for Common- the Public Service of the State who, pursuant to any wealth. Act of the Parliament of the Commonwealth, has been appointed by the Government of the Commonwealth to any office which is deemed necessary or expedient to be filled in order to ensure that the said Agreement may be carried into full execution and effect. THE SCHEDULE. AN ~ 4.GREEMENT made the thirty-first day of October One thousand nine hundred and twenty-three BETWEEN THE COMMON- WEALTH OF AUSTRALIA (hereinafter called "the Commonwealth") of the one part and THE STATE OF QUEENSLAND (hereinafter called "the State) of the other part WHEREAS it is desirable in the public interest and to avoid duplication of services that the income tax payable from time to time to the Commonwealth (hereinafter ealled "the Commonwealth Tax") and the income tax payable from time to time to the State (hereinafter called "the State tax") should so far as practicable be assessed and collected by the one agency AND WHEREAS it is necessary that any arrangement for that purpose should preserve inviolate the respective sovereign powers and rights of the Commonwealth and the State AND WHEREAS the Commonwealth and the State have agreed to co-operate. in the collection of the Commonwealth tax and the State tax under the conditions hereinafter contained Now IT IS AGREED as follows:- 1. 'rHE Commonwealth and the State agree to collect the Commonwealth tax within the State and the State tax respectively in the manner and subject to the conditions set forth in this Agreement.

10938 INCOME TAX. Income Taxes Agreement Act. 15 GEO. V. No. 15, . 2. (a) SUBJECT to this Agreement the Commonwealth tax and the State tax shall be collected by an officer acting for the Common- wealth and the State. (b) The Commonwealth shall appoint the State Commissioner of Taxes for the time being (hereinafter called" the State Commis- sioner") to be the Deputy Commissioner for the State under the Income Tax Assessment Acts of the Commonwealth (hereinafter called "the Deputy Federal Commissioner"). 3. Ca) THE State Commissioner in his capacity as such Deputy Federal Commissioner shall be responsible to the Commonwealth Commissioner of Tamtion (hereinafter called "the Commonwealth Commissioner") for the due assessment and collection of the Commonwealth tax and the administration of the laws of the Commonwealth relating thereto and shall in relation to such assessment collection and administration be free from interference or control by the State. The Commonwealth Commissioner shall delegate to the State Commissioner such powers and functions of the Commonwealth Commissioner as are necessary or convenient for the purpose of the administration in the State of the laws of the Commonwealth relating to Income Tax PROVIDED that nothing in this subclause shall affect the right of the State Commissioner to have full control of all State officers including officers transferred from the service of the Commonwealth in pursuance of this Agree- ment and employed in the assessment and collection of the Commonwealth tax within the State. (b) All matters arising in connection with the exercise by the State Commissioner of his powers and functions under the laws of the Statf' shall be dt:ltermined by him in accordance with those laws and without mterference by the Commonwealth. (c) The receipt of money by any person authorised to receive money in connection with the collection of the Commonwealth tax and the State tax shall be as against the Commonwealth and in favour of the State a receipt thereof by the Commonwealth and as against the State and in favour of the Commonwealth a receipt thereof by the State. 4; (a) THE State shall accept the transfer to the permanent service of the State of all Commonwealth officers who on the first day of July One thousand nine hundred and twenty-three were and at the date when this Agreement comes into operation are engaged in Income Tax work in the © State of Queensland and who in the opinion of the Commonwealth' Commissioner are required t-o perform the normal work necessary under the Commonwealth Income'l'ax Assessment Acts at the date of such transfer. . . The. Commonwealth Commissioner shall notify the State CommiSsion!)r. as soon as practicable after the date of this Agree- ment· of il).enumber and grades of the officers who in his opinion are require,d to perform the normal work as aforesaid. For the purpose of this subclause "Commonwealth officers" ineans' ~ nd includes permanent and probationary permanent officers in: the service of the Commonwealth and returned soldiers who have passed the qualifying examination for appointment as' permanent

INCOME TAX. 1924. Income Taxes Agl'ecmcnt Act. officers and who are employed by the Commonwealth in a temporary capacity awaiting appointment as permanent officers in the service of the Commonwealth. (b) SUbject to this Agreement each officer so transferred- (i.) shall be subject in all respects to the laws of the State regulating the Public Service; and (ii.) without prejudice to the last preceding paragraph shall preserve all his existing and accruing rights as at the date of this agreement and shall be required to continue to contribute to the Superannuation Fund of the Commonwealth such sums as he would have been liable to contribute if he had remained an officer of the Commonwealth and shall be entitled to retire from office at the time and on the pension or retiring allowance which would be permitted by the laws of the Commonwealth if his service with the State were a continuation of his service with the Commonwealth; and (iii.) (a) shall so far as practicable be employed on duties of a status not lower than the status of the duties of the class or grade in which such officer is classified at the date of this Agreement; and (b) shall as soon as practicable be allotted a classifica·· tion in the State Public Service corresponding with the State classification for the position to which he shall have been appointed; or (c) if the position to which he shall have been appointed shall come within the automatic range of salary of the awards of the Court of Industrial Arbitration of Queensland relating to the State Public Service, shall be allotted the salary which the State Public Service Commissioner shall determine to be the salary payable under such Awards. In this subclause the phrase" existing and accruing rights" means rights of sick leave and long service leave and rights to receive payments from the Commonwealth by way of compensation, bonuses, retiring allowances, or payments in lieu of furlough to which the transferred officer would have become entitled had he remained an officer of the Commonwealth. (c) The Commonwealth shall provide all moneys necessary for the payment of any compensation, bonuses, retiring allowances, and payments in lieu of furlough payable to officers so transferred on death or on the lawful termination of their service with the State and the moneys so provided shall not be included in the cost of collection of the Commonwealth tax and the State tax for the purposes of clause 10 (a) of this Agreement. (d) Any contributions to any Superannuation Fund of the Commonwealth in respect of an officer so transferred (other than contributions payable by the officer) shall be paid by the Common- wealth. (e) On the determination of this Agreement from any cause whatever the Commonwealth shall re-transfer to the Commonwealth Service all officers of the State who have pursuant to this Agreement n 109391

10940 INCOME TAX. Income Taxes Agreement Act. 15 GEO. V. No. 15, been transferred from the Commonwealth Service to the State Service and the State shall permit such re-transfer. (f) Where- (i.) an officer ·so transferred from the Commonwealth Service to the State Service has while in the State Service been promoted to a higher position in the Income Tax Office not previously occupied by the officer so transferred or to any position in the State Service other than a position in the Income Tax Office; and (ii.) the officer so promoted elects to remain in the State Service; and (iii.) the State desires to retain the services of such officer; he shall not be re-transferreu to the Commonwealth Service in accordanee with the last preceding paragraph but the Common- wealth shall transfer to the Commonwealth Service in his place another State Officer holding a position of equal status and -with similar duties to that from which the first named officer was promoted (if there be any such officer) and the State shall permit such transfer. 5. (a) ALIJ officers and employees of the State employed in the Ir~( - '0me Tax Branch of the Land and Income Tax Department of tile StatE and all Commonwealth officers transferred to the State pursuant to this Agreement shall be merged into and form one combined staff. Cb) The State shall provide all office accommodation required. 6. (a) IF by reason of any economy effected by this Agreement the staff of Commonwealth officers transferred to the State Service in accordance with clause 4 of this Agreement together with the existing State Income Tax staff (including temporary officers engaged upon permanent duties) is greater than is required for the work to be performed and a reduction is necessary the number and grades of the positions to be abolished and the number and grades of the officers or employees to be displaced shall as between the officers and employees who prior to this Agreement were respeetively State and Commonwealth officers or employees be as far as practicable proportionate to the numbers and grades of the positions and of the officers and employees of the respective staffs. (b) Whenever during the currency of this Agreement a diminution in the work required to be performed for the Common- wealth occurs by reason of any amendment subsequent to the date of this Agreement of the Commonwealth Income Tax Assessment Acts and it is necessary or advisable for officers or employees to be dispensed with, the State may, if it shall think fit, £01' that reason dispense only with officers who were transferred from the Commonwealth pursuant to clause 4 (a) of this Agreement. (c) The State Commissioner with the approval of the State Public Service Commissioner shall determine the numbers grades and identities of the officers and employees whose income tax services are to be dispensed with pursuant to subclauses (a) and (b) of this clause. 7. SHOULD any dispute or difference arise between the Com- monwealth Commissioner and the State Commissioner on any

INCOME TAX. 1924. Income Taxes Agreement Act. administrative matter arising under this Agreement and not other- wise herein provided for the Treasurers of the Commonwealth and the State respectively shall confer and in the event of their failure to agree on the matter it shall be referred for settlement to some independent person selected for that purpose by the Treasurers and the decision of that person shall be final and conclusive. 8. IN order to secure uniformity throughout the Commonwealth 'Of the interpretation of the laws of the Commonwealth the State Commissioner shall apply the rulings of the Commonwealth Com- missioner in the interpretation of the laws of the Commonwealth. 9. NOTHING in this Agreement shall be deemed to restrict or impede the Commonwealth or the State in the exercise of its rights and powers under the Constitution of the Commonwealth or the State and the laws of the Commonwealth or the State now or here- after in force. 10. (a) THE cost of collection of the Commonwealth tax and the State tax as provided for in this Agreement shall in each financial year ending thirtieth June be apportioned and borne by the Commonwealth and the State 'respectively on the basis of the actual cost of performing the work in connection with the adminis- tration assessment and collection of the respective taxes but so that the cost of administration assessment collection and recovery of the Commonwealth tax assessable for periods up to and including the thirtieth June One thousand nine hundred and twenty-two shall he borne solely by the Commonwealth. (b) The said cost of collection shall include- (i.) salaries of officers and employees including the State Commissioner and officers and employees of the Crown' Law Department of the State properly referable to the assessment and collection of the said taxes; (ii.) all relevant contingent expenditure; (iii.) all other expenditure properly referable to the assess- ment and collection of the said taxes inGluding rent of and (if thc premises so occupied are the property or the State) interest on the cost of premises occupied for the assessment and collection of the said taxes and costs and expem,es of legal proceedings for recovery. (G) The said cost and the apportionment thereof Ishall be determined by agreement between the Commonwealth Commissioner and the State Cammissioner and in default of agreement shall be determined by n pers!'D nominated by the two Commissionees or if they cannot Hgree en a !lomination shall be determined Ly the Auditor-General for the State. The State Commissioner shall from time to time furnish to the Commonwealth Commissioner such information as the Commonwealth Commissioner may require to enable him to ascertain the amount of such cost and the proper apportionment thereof. (d) The estimated proportion of the said cost payable by the Commonwealth shall be paid to the State in quarterly instalments during each financial year and shall be adjusted at the end of such financial year. (e) If the remuneration of an officer transferred to the State in accordance with this Agreement exceeds at the date of such 10941

10942 INCOME TAX. Income Ta.res Agreement Act. 15 GEO. V. No. 15, transfer the remuneration of an officer or employee employed under the State Commissioner and occupying a position of corresponding classification and status and performing approximately similar duties or if any such excess in remuneration arises after the said date by reason of an officer so transferred being granted after the said date an increment or increments of salary and/or allowance or additional allowance in satisfaction of an existing or accruing right of such officer at the said date the amount of the excess in remuneration shall be excluded from the said cost of collection and shall be paid wholly by the Commonwealth. The excess in remunera· tion as at the date of transfer shall not except upon the recommenda- tion of the State Public Service Commissioner in any case be increased by any increase or addition to the salary or allowance paid to any officer. So soon as the said excess ceases the full remuneration received by the officer or employee shall form part of the said cost of collection. (f) Credit for their Commonwealth service shall be given to officers transferred in accordance with this Agreement. When as a result of an existing or accruing right any such officer is entitled to a period of leave in respect of long service or sickness in excess of the period to which he would be entitled under the State Public Service Act and Regulations and the leave is taken before the termination of such officer's services the remuneration payable to the officer in respect of such excess period shall be excluded from the said cost of collection and shall be paid wholly by the Commonwealth. (g) The said cost of collection and the apportionment thereof shall commence on the date on which the respective staffs are merged into one combined staff pursuant to clause 5 (a) of this Agreement. The date of such merger shall be determined by the Commonwealth Commissioner and the State Commissioner jointly. All costs ana expenses incurred by the Commonwealth or the State respectively in respect of matters occurring prior to such merger shall be borne by the party by whom they were incurred. (h) The State by its Government undertakes to endeavour to obtain exemption from the operation of *" The, Salaries Act of 1922" in respect of all officers transferred to the State in accordance with this Agreement to such extent that the salaries of such officers shall not be reduced by the operation of such Act below the salaries which they respectively received at the date of such transfer. 11. IN order that the work of assessment and collection of taxes may proceed expeditiously and economically the Governments of the Commonwealth and the State respectively will submit to Parliament before the thirtieth day of September in each year or as early as practicable thereafter: (a) proposed laws fixing respectively the rates of the Com- monwealth tax and the State tax for that year; and (b) proposed amendments of the Income Tax laws of the Commonwealth and State respectively; and endeavour to have those proposed laws dealt with by the respective Parliaments without delay. 12. (a) THE State Commissioner in his capacity as Deputy Federal Commissioner shall in the manner required from time to * 13 Geo. V. No. 7, supra, page 10195.

1924. INCO~ IE TAX. Incomc Taxes Agreement Act. time by the Commonwealth Treasurer deal with and account for all Commonwealth tax collected pursuant to this Agreement; and (b) The State Commissioner shall from time to time furnish to the Commonwealth Commissioner any information which the Commonwealth Commissioner may require in respect of the opera- tion within the State of the laws of the Commonwealth relating to Income 'rax. 13. WITH a view to securing the greatest possible economy from the operation of this Agreement and to simplify the procedure in relation to the furnishing of taxation returns and information the Commonwealth and the State agree as far as practicable to have uniform Income Tax laws enacted by the respective Parliaments. 14. (a) THERE shall be prepared a joint form of Income Tax return suitable for both Commonwealth and State tax purposes in the State of Queensland. The joint form shall be used for purposes of the return of income derived during the year commencing on the first day of July one thousand nine hundred and twenty-three and all subsequent years for which it may be suitable. (b) Returns furnished in the joint form by taxpayers deriving income from sources in the State of Queensland only shall be accepted as sufficient so far as form is concerned. (c) Taxpayers deriving ineomes from sources in the State of Queensland and elsewhere in Australia will be required to furnish returns in the Commonwealth prescribed form at the· Commonwealth Central Income Tax Office and in addition returns in the joint form at the office of the State Commissioner in respect of incomes derived from sourees in the State of Queensland only. e d) Any officer of the Income Tax Office of the State thereto authorised in writing by the State Commissioner may inspect any records kept in the Central Office of the Commonwealth Depart- ment of Taxation and any officer of the Commonwealth Department ()f Taxation thereto authorised in writing by the Commonwealth Commissioner may inspect any records kept in the Income Tax Office of the State and the State undertakes to enact any necessary legislation for this purpose. 15. (a) PROSECUTIONS for offences against the laws of the State relating to the State tax shall be conducted by and at the expense 'of the State and prosecutions for offences against the laws of the Commonwealth relating to the Commonwealth tax shall be condncted at the expense of the Commonwealth and may be conducted by the ~ tate Commissioner in his capacity as Deputy Federal Commis- 81Oner: Provided that 'when the Commonwealth Commissioner and the State Commissioner agree or have agreed that the act or omission constitutes an offence under both the law of the Commonwealth and the law of the State or that the decision of the question under the law of one party is likely to be useful in the administration of the' law of the other party the expense of the prosecution siwll be borne jointlv. (b) When an act or omission constitutes an offence under both the law of the Commonwealth and the law of the State- (i.) as a general rule the prosecution shall be instituted under the law which provides the greater penalty; 10943

10944 INCO~ \ IE TAX. Income Taxes Agreement Act. 15 GEO. V. No. 15,1924. (ii.) any monetary penalty recovered shall be paid into the Consoli(lated Revenue of the party under whose law the prosecntiGn is instituted; and (iii.) the party into whose revenue the penalty is paid shall payor credit to the other party one half of the amount of the penahy; (iv.) the expenses of such prosecution shall be shared equally by the Commonwealth and the Stat.e. (c) When an act or omission constitutes an offence under one law only any monetary penalty recovered shall be paid into the Consolidated Revenue of the party under whose law the prosecution is instituted and be retained wholly by that party. 16. WHERE by reason of any act default or omission of a tax- payer a sum has been collected as penalty or additional tax by way of penalty (not being a penalty imposed by a Court) such sum shall be applied dS follows:- (a) if the sum is recoverable under one law only it shall be retained wholly by the party under whose law it is recovered; or (b) if the sum is recoverable under both the law of the Commonwealth and the law of the State it shall be divided between the Commonwealth and the State proportionately to the penalties provided for in the respective laws of the Commonwealth and of the State. 17. IF a taxpayer at any time pays less than the full amount due and payable by him for Commonwealth tax and State tax the amount paid shall (unless the taxpayer otherwise directs) be credited to the Commonwealth and the State respectively pro rata to the full amount then due and payable by the taxpayer to the Commonwealth and the State. 18. No appeal against an assessment under the law of the Com- monwealth shall be referred to a Court by the State Commissioner in his capacity of Deputy Federal Commissioner but every such appeal shall be submitted by him for consideration of the Common- wealth Commissioner: Provided that nothing herein contained shall preclude the State Commissioner in such capacity as aforesaid from dealing with objections to assessments. 19. (a) THE Commonwealth will by its Government take any action within its power to obtain such amendments of any laws of the Commonwealth as may be necessary or advisable to enable this Agreement to be fully and effectively performed on its part. (b) '1'he State will 'by its Government take any action within its power to obtain such amendments of any of the laws of the State as may be necessary or advisable to enable this Agreement to be fully and effectively p.erformed on its part. 20. ANY notice to be given by either party to the other under this Agreement shall be deemed to have been duly given if signed by the Prime Minister or the Premier as the case may be on behalf of the party giving it and sent by prepaid post addressed to the Premier or Prime Minister as the case may be on behalf of the other party.

IXCO~ \ lE TAX. ss. 1, 2. 15 GEO. V. No. 34, 1924. Income Tax Act. 21. THIS Agreement shall come into operation on the day of the date hereof and shall continue in force for a period of five years lmd thereafter until the expiration of not less than six calendar months' notice in writing given by either party to the other of intention to determine it. As WITNESS the hand of the Acting Prime Minister of the Commonwealth of Australia for and on behalf of the said Common- wealth and the hand of the Premier of the State of Queensland for and on behalf of the said State the day and year first above written. SIGNED by the Acting prime} Minister of the Common- wealth of Australia for and (Sgd.) on behalf of the said Com- EARLE PAGE. monwealth in the presence of- (Sgd.) E. K. BOWDEN. SWNED by the Premier of the}' © State of Queensland for and (Sgd.) on behalf of the said State in EDWARD G. THEODORE. the presence 01- (Sgd.) E. K. BOWDEN, Minister for Defence. 10945 An Act to Consolidate and Amend the Law 15 Geo. V. Relating to the I mpositl . on, A ssessmen t , TH N E o I . N 3 C 4 O . ME and Collection of a Tax upon Incomes. . ~ ! Xl~ ~: [ASSENTED TO 1ST NOVEMBER, 1924. ] B E it enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Legis- Jative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows : - PART I.-PRELIMINARY. p~ ~ ~ ~ i~ ¥ . 1. This Act may be cited as " The Income Tax Act Short title. Of 1924." 2. This Act is divided into Parts, as follows :- PART I.-PRELIMINARY; PART n.-ADMINISTRATION; PART lIl.-LIABILITY TO TAXATION; Parts of Act•.