Dividend Duties Act Amendment Act 1918 (WA)

WESTERN AUSTRALIA.

ANNO NONO

GEORGII QUINT' REGIS,

XII.

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No. 22 of 1918.

AN ACT to further amend the Dividend Duties

Act, 1902.

[Assented to 13th June, 1918.]

Legislative Assembly of Western Australia, in this present Par-B E it enacted by the King's Most Excellent Majesty, by andwith the advice and consent of the Legislative Council and

liament assembled, and by the authority of the same, as follows:-

1. This Act may be cited as the Dividend Duties Act Amend- ment Act, 1918, and shall be read as one with the Dividend Duties	Short title.
Act, 1902, hereinafter referred to as the principal Act, and its amendments.

2.

Section two of the principal Act is hereby amended by omitting the interpretation of the term "Minister" and insert-	Amendment of
Section 2.
ing in place thereof the words '' 'Commissioner of Taxation' means the Commissioner of Taxation appointed under the Land and Income Tax Assessment Act, 1907," and by inserting after the words A Life Assurance Company as hereinafter defined" the words " in relation to its life assurance business, except in respect of interest on its investments."

3.    The principal Act and the Acts amending the same are Substitution of

amended by substituting for the word "Minister" the words Commissioner of	Taxation• ' for
"Commissioner of Taxation" throughout the said Acts.	"Minister."

1918, No. 22.] Dividend Duties—Amendment. [9 GEO. V.

Amendment of

Section 3. 4.

Section three of the principal Act is repealed, and the fol- lowing is inserted in its place:-

Administration

of Act.

" 3. (1) The Commissioner of Taxation, under the Colonial

Treasurer, shall be charged with the administration of tins Act."

(2.) The Commissioner of Taxation and all other persons

appointed for carrying out the provisions of this Act shall

keep secret and aid in preserving secrecy with regard to all

matters which may come to their knowledge in their official

capacity, and shall not, except as hereinafter provided, com-

municate any such matter to any other person unless in the

performance of their duties."

Amendment of

Section 4. 5.

Subsection one of Section four of the principal Act is amended by omitting the words "every person employed by the Minister" and inserting in place thereof "the Commissioner of Taxation and all persons appointed for carrying out the provi- sions of this Act."

Amendment of	6.	Section seven of the principal Act is amended as follows :-
Section 7.

(1.) By omitting in subsection two the word "Trea- surer," and inserting in its place the words " Commissioner of Taxation."

(2.) By omitting in subsection two the words "one shil- ling," and inserting in their place the words "one shilling and threepence."

See Section 4

of Act No. 30	(3.) By omitting in subsection five the words "shipping (4.) By omitting in subsection six the words "until an agreement as in the last preceding subsection mentioned shall have been made," and inserting in place thereof "Subject to any agreement under the last preceding subsection."
of 1906.	companies or other."
(5.) By omitting in. paragraph (a) of subsection six the words "five per centum of five per centum," and inserting the words "six and one-fourth per centum of five per centum," in place thereof, and by omitting in paragraphs (b) and (c) of the said subsection the words "five per centum " and inserting in each case the words " six and one-fourth per centum " in place thereof.

(6.) By inserting the following additional subsection:—

" (7.) The Commissioner of Taxation may disallow as ex-

penditure any money paid by a company as salary, fees, or otherwise to any director, officer, or employee of the company in so far as, in the opinion of the Commissioner, such payment was not made bona fide as remuneration for services rendered, but as a means of avoiding taxation."

(7.) By adding to Subsection (3.) the following words " or Section 8a.

9 GEO. V.] Dividend Duties—Amendment. [1918, No. 22.

7. Section eight of the principal Act is hereby amended as Amendment of

follows:— Section 8.

(a) by omitting the word "twenty," in paragraph (b) of subsection (1), and inserting the word "forty" in place thereof ; and

(b) by adding thereto a subsection as follows: (3.) Where any company not engaged in insurance

business exclusively carries on within Western Australia, insurance business (not being life assurance) whether as principal or as agent for another company carrying on business outside Western Australia, or where any such first- mentioned company, under the authority of a general cover or floating policy issued by any company or person carrying on insurance business outside Western Australia, issues declaration of insurance or other documents in the nature thereof in Western Australia, such first mentioned company shall be liable to forward returns and to pay duty in respect of such business in the manner and at the rate prescribed by this section.

8. A section is hereby inserted in the principal Act, and Life Assurance Companies.

shall have effect, as follows :—

8a. (1.) Every life assurance company shall

(a) on or before the first day of September in every year, or within three months after each of its annual balancing days, forward to the Commis. sioner of Taxation a return in the prescribed form stating the amount of interest on its investments received by the company during the year ending the thirtieth day of June next preceding, or ending on such other balancing day, verified by statutory declaration ; and

(b) pay to the Commissioner of Taxation, as from the first day of July, One thousand nine hundred and seventeen, as duty a sum equal to one shilling and threepence for every twenty shillings of interest so received, subject to such deductions as are permitted in calculating the profi 4 s of a company under this Act.

(2.) Notwithstanding paragraph (2) of Section 19 of " The Land and Income Tax Assessment Act, 1907," a life assurance company shall be exempt from income tax under that Act, in respect of interest on investments received on and after the 1st day of July, 1917.

9. Section eighteen of the principal Act is amended by inserting Amendment of

after the words " His Majesty," in line 9, the words " a sum not Section 18.

exceeding," and by the addition of the following words, namely,

" or to a penalty not exceeding One hundred pounds."

1918, No. 22.] Dividend Duties—Amendment. [9 GEO. V.

Section five of " The Dividend Duties Act Amendment

Act, 1914," is hereby amended by inserting after the words

" section eight " the words " or section eight a."

10.

Amendment of	11. Section six of the Dividend Duties Act Amendment Act, 1914, is hereby amended by inserting after the words "first men- tioned company," in lines four and five thereof, the words "or the greater part of such share capital," and by adding a para- graph to the said section as follows:
No. 24 of 1915.

Section 6 of Act

For the purposes of this section any share capital held by a shareholder or nominee of or trustee for a company shall be deemed to be held by the company.

Exchange of	12. It shall be lawful for the Commissioner of Taxation, and he is hereby authorised, to communicate any matter which may come to his knowledge in the administration of this Act to the Commissioner or Deputy-Commissioners of Taxation for the Commonwealth of Australia, or to the Commissioner of Income Tax for any other State of the Commonwealth or any other per- son occupying a corresponding position in any such State with reference to the collection of duties :
information.
Provided that this section shall not come into operation un- less or until reciprocal authority to afford similar information to the Commissioner of Taxation in Western Australia has been duly conferred on the Commonwealth Commissioner of Taxation and his Deputy in Western Australia, or such other Commissioner of Taxation as the case may be.

Increased duty:to 13.

(1.) Duty shall be payable on all profits made on and seventeen, and in the case of insurance companies on all pre- miums received on and after that date at the increased rates as prescribed by the Act.

be payable on

profits from 1st	after the first day of July, One thousand nine hundred and
January, 1917.
(2.) In the case of companies which balance their accounts on some other day than the thirtieth day of June, duty at the prescribed rate shall, in respect of the period from the first day of July, One thousand nine hundred and seventeen to the next following balancing day, be payable on profits appor- tioned to that period in ratio to the whole of the profits made during the year ending with such balancing day.

Reprinting Act 14.

(1.) All copies of the principal Act hereafter printed by the Government Printer shall be printed as amended by the Divi- dend Duties Amendment Act, 1906, the Dividend Duties Act Amendment Act, 1914, and this Act, under the supervision of the

and showing

amendments.

Clerk of Parliaments, and all necessary references to such Acts

shall be made in the margin.

9 GEo- V.] Dividend Duties—Amendment. [1918, No. 22.

(2.) In such reprint the following directions shall be ob-

served :-

Section seven of the principal Act shall be numbered six, Section five of the Dividend Duties Amendment Act, 1906, shall be inserted as section seven, and the words "or seven of the principal Act" shall be omitted; Sections four, five, six, and seven of the Dividend Duties Act Amendment Act, 1914, shall be inserted as sections fourteen, fifteen, sixteen, and seventeen, respectively, and the words "of the principal Act" shall be omitted from the said section five, and the suc- ceeding sections of the principal Act shall be correspondingly altered; and sections ten, eleven, and twelve of this Act shall be numbered thirty-four, thirty-five, and thirty-six respectively.