Income Tax Act Amendment Act of 1904 (4 Edw VII No. 9) (Qld)

:8718 INCOME TAX. Income Tax Act Amendment. 4 EDW. VII. No. 9, INCOME TAX.* -.EdNwo. . V9.II. An Act to Continue the Operation of "The Income THE INOOMiE TAxAOT Tax Act of 1902" and to further amend the AMENDMENT AOT OF 1904. said Act in respeot ofthe rate andincidence of the Tax, and in certain other particulars, and to repeal "The Dividend Duty Act of 1890." [ASSENTED TO 1ST DECEMBER, 1904.] Preamble. W E Your Majesty's most dutiful and loyal subjects the members of the Legislative Assembly of Queensland in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows : - 'Short title 1. This Act may be cited as. "The Income Tax Act . 4 c I o Jl n d struction Amendm(3nt Act of 1904," and shall be read and con.,. -of Act. strued as one with" The Income Tax Act of 1902,"t herein caned the Principal Act. (Jommence- ment of period of .assessment. 2. The first period for which assessments of income shall be made under the Principal Act as amended by this Act shall commence on the first day of .January, one thousand nine hundred and four, and subject to the Principal Act all subsequent annual periods shall be reckoned from that date, and to that extent this Act shall have retrospective operation. ..Amendment 3. In the second paragraph of section three of the P; ; ~ c~ p~ the Principal Act, all the words after "Absentee" are repealed, Act. and the words "A person not domiciled in Australia" are inserted in lieu thereof. Amendment 4. The following words are added to subsection one of 1; ~ C~ P~Act. section five of the Principal Act :-,-" or except to the Auditor-General or some officer of his Department for the • For reprint of Consolidated Acts, see Appendix I., infra. t 2 Edw. VII. No. 10, supra, page !i275. •

INCOME TAX. 8719 1904. Income Tare Act Amendment. purposes of audit under the laws in force relating to the • 'audit of public accounts. And to this extent the Auditor- General and any such officer shall be deemed to be persons .appointed or employed under this Act." 5. Sections seven and eight of the Princil)al Act are repealed, and the following section is inserted in lieu of the said section seven :- .. [7.J Subject to this Act there shall be charged, levied, ~ates of ·.collected, and paid for the use of His Majesty in aid of the mcome tax. Consolidated Revenue for each year an income tax in respect of the annual amount of the incomes of all persons ;at the rates following, that is to say- (i.) If the total income subject to the J. tax does not in the aggregate Exempt. exceed £100 ... ... '" Provided that such exemption shall not apply to the incomes of companies or of absentees: Provided. further that where the total income subject to the tax does not in the aggregate exceed £3()O, and such income is derived partly from personal exertion and partly from the produce of property, in deducting the £100 exempt the income derived from personal exertion shall first be resorted to. <ii.) On all income derived from personal exertion- If the total income subject to the tax- Exceeds £100 and does not} The fixed sum exceed £125 ... .... of 10s. Exceeds £125 and does not} The fixed sum of exceed £150 ... £1. £1UO exempt, Exceeds £150 and does not} and od. in exceed £300 ... each andevery . £ over £100. Exceeds £300 and does not} od. in each and exceed £500 ... every £. I 6d. in each and I every £ of Exceeds £500 and does not ~ the first £500, exceed £1,000 ... I and 7d.in each I and every £ j over £500.

8720 INCOME TAX. Income Tax Act Amendment. 4 EDW. VII. No. 9, - - ~ - - - - - - - - - - - - - - - - - - - - - - - l 7d. in each and every £ of the Exceeds £1,000 and does not ~ first £1,000,. exceed £1,500 ... I and 8d.in each I and every £ j over £1,000. Exceeds £1,500 ... } 8d. evienryea£ c.h and" (iii.) On all income derived from the produce of property- If the total income subject to the tax- Exceeds £100 and does not} The fixed sum of: exceed £ 120 ... £1. ) £100 exempt,. Exceeds £120 and does not ( and Is. in each exceed £300 , and every £ / over£10U. Exceeds £300 ... } Is. evineryea£ c.h and J (iv.) aOndn othf eailnl caobmseenstoefesalolncothmepatnoiteasl l s. ' m e~ hand income subject to the tax ... every. Provided that the income subject to the tax of every coml)any having its head office or chief pla,ce of business in Queensland shall be assessed at not less than the amount of the dividends declared by such company during the year in respect of which the assessment is made: . Provided further that where any of the profits of such company remain undistributed amongst the shareholders then upon such undistributed profits only sixpence in each pound shall be payable as. income tax; and should any part of such undis- tributed profits be afterwards distributed as divi- dends, the amount already paid as tax shall be allowed for in computing the amount of tax payable on such dividend: Provided further that in the case of companies which carry on in Queensland the business of mining the following rules shall be applied in estimating the income subject to the tax: - (1) The first and subsequent dividends declared or paid by the company shall be taken to be applied, in the first place, in repayment of

INCOME TAX. 8721 Income Tax Act Amendment. the cost actually incurred by the company before the declaration of the first dividend in respect of labour or material employed in developing the mine, and, in the second place, in repayment of three-fourths of the cost of any machinery erected for raising ores and other materials from the mine; (2) So much of the dividends as is shown to the satisfaction of the Commissioner to have been applied during the year in respect of which the assessment is made for the pur- poses specified in the last preceding rule shall be deducted from the income of the company for that year, and shall be exempt from the tax; (3) In the case of companies carrying on other business besides the business of mining, the Commissioner may require the company to submit to him accounts verified in like manner as the returns hereby prescribed, and showing separately the transactions of the company with respect to its mines and with respect to its other business, and the company shall be entitled to exemption from payment of the tax upon so much of its dividends as is shown to the satisfaction of the Commissioner to have been applied during the year in respect of which the assessment is made for the purposes specified in the first of these rules; (4) When a mining company is reconstructed and it is shown to the satisfaction of the Commissioner that after reconstruction the company is to all intents and purposes the same as before reconstruction, such recon- structed company shall be entitled to the same exemption from payment of tax as the com- pany was entitled to before reconstruction. The decision of the Commissioner in every such case shall be final and conclusive. . 6. Subsection three of section twelve of the Principal Amendment Act is repealed .• o P f rm ~. c ~ lp 2 a o l f Act. In subsection seven of the said section the words "a duty on such dividends" are repealed, and the words ," income tax on the profits of the company from which such , ~ ~ vidends. are paid," are inserted in lieu thereof.

8722 INCOME TAX. Income 'l'ax Act Amendment. 4 EDW. VII. No. 9, Amendment 7. In paragraph two of subsection one of section ~~ c~;lA.ct. thirteen of the Principal Act, the words "payable by him' ~ are repealed, and the words " actually paid by him during the year in respect of which the assessment is made ,,- are inserted in lieu thereof. Paragraph three of the said subsection is repealed, and the following provision is inserted in lieu thereof : - (ill.) All interest actually paid by him in the year- in respect of 'which the assessment is made- upon money borrowed and used with intent to the production of income or borrowed on property in Queensland: Provided that where- such interest is payable to a person residing beyond Queensland, the person paying it shall, for the purposes of this Act, be deemed to be the agent of the person entitled to receive- it, and before making payment of any interest. shall pay to the Oommissioner income tax on the amount at the rate of :five pounds per centum, and may deduct from such interest the· amount of the tax thereon; and only such interest upon which the tax has been so paid shall be allowed as a deduction from the tax- payer's income: It Sia in Gazette, semble should be "this Act." Provided that where it can be shown to the satisfaction of the Oommissioner that such borrowed moneys were so borrowed before the passing of the Principal Act, * and that the person paying interest on money so borrowed is unable to deduct the tax payable in respect of such interest, the Commissioner may allow the deduction of interest, notwith- standing that the tax has not been paid thereon. Paragraphs :five and eight of the said subsection are repealed: Provided that where the income of a taxpayer- does not exceed one hundred and :fifty pounds all sums expended by him in the maintenance or support of any infirm, aged, or indigent relative shall be exempt from taxation. Paragraph nine of the said subsection is repealed, and the following provision is inserted in lieu thereof : - (ix.) The amounts and sums which by the la'St two preceding subsectionsare directedto be deducted shall be deducted from income derived from personal exertion; but if such income does not amount to the sum so to be deducted, the difference, 01' if there is no income d-erived from

INCOME TAX. 8723: 1904. income Tax Act Amendment. personal exertion, then the whole of such sum shall be deducted from income derived from the produce of property. Subsection two of the said section is repealed. 8. Subsection one of section sixteen of the Principal Amendment A C t I.S repea1ed, and the f 0 1o1W' Ing proVI.sIO.n.IS.Insert ed'In o Pr f i s ~c 1 ip 6 a o l f Act_ lieu thereof :- (i.) Any sum expended for repairs of premises for Repairs, &0. which rent is received or for repairs to any machinery or plant used for the purposes of any business beyond the sum usually expended in any year for such purpose or beyond such sum as in the opinion of tile Commissioner is a fair average of the cost of repairs for the three years immediately preceding the year in which the assessment is made. The following subsection is added to the said section:- (ix.) Any wastage or depreciation of lease, or in respect of any improvements upon leasehold property, or in respect of any loss occasioned by the expiration of any lease: Provided that when it shall be proved to the satisfaction of the Commissioner that any taxpayer has paid a sum of money for a lease or a renewal of a lease of premises occupied by him, not being a lease held from the Crown, it shall be lawful for the Commissioner to allow as a deduction from the income of such taxpayer such portion of the amount paid by him as is equal to the amount paid for. the lease or renewal of lease divided by the number of years for which such lease was granted. 9. The following words are added to the first paragraph Amendment of 'section twenty of the Principal Act :-" and in com- 0pf~. ~ o °lfA t puting such profits the value of all live stock, produce, rmClpa c· ~ goods, and merchandise, not disposed of, at the beginning and end of the year in respect of which the assessment is made shall be taken into account. But additions to stock resulting from natural increase shall be reckoned in their first year as being equal to one-fourth of the then value put upon the same class of full-grown stock." The proviso of the said section is repealed. 10. In the first paragraph of section twenty-two of the Amendment Prin • cipal Act after the word " agent" the f • oll • owing wo • rds o P f rm ~. C 2. l 2 pa o l f Act•. are mserted :-" and such agent before remlttmg or paYIng

'8724 INOOME TAX. Income Tax Act .Amendment. 4 EDw. VII. No. 9, to such absentee any income, shall pay to the Commissioner income tax thereon, and shall be entitled to deduct from the income payable to such person the amount of the tax paid thereon." In the first paragraph of section twenty-two of the Principal Act, and in each case where the word" absentee" occurs in section twenty-two, after the word "absentee" insert the words" or person absent from Queensland." Amendment 11. The following words are added to subsection one · - o P f ri s n . c3i1pa o l f Act. 0 f sectI' on th 1 ' 1' ty- one 0 f the PrI' nC.lpa1 Ac : t-" not ' Inc1ud- ing liabilities to capital or reserves." In subsection two of section thirty-one of the Principal Act, after the word" its" and before the word "income," the word" taxable" is inserted. Subsection three of section thirty-one of the Principal Act is repealed, and the following subsection is inserted in lieu thereof:- If the company is a life assurance company and carries on in Queensland life assurance business, its taxable income shall be a sum equal to twenty-five pounds per centum of the premiums on account of ordinary Queens- land business received by the company and fifteen pounds per centum of the premiums on account of industrial Queensland business received by the company. In subsections four and five of the said section the words "such profits may be assessed by the Commissioner at a sum equal to three pounds per centum" are repealed, and the words "the taxable amount of the income of the company may be assessed by the Commissioner at a sum equal to five pounds per centum" are respectively inserted in lieu thereof. 12. After section thirty-one, the following section is inserted :- Divident'ls in [31A.] When and so often as any dividend is declared olococmalpanies. payable to any shareholders in a company having its head office or chief place of business in Queensland, such company shall within thirty days from the time when such dividend has been declared forward to the Commis- sioner a return in the prescribed form and containing the l)rescribed particulars, and verified by statutory declaration under the "Oaths Act of 1867"* under the hand of and made by the public offi'Cer of such company, stating the amount of such dividend and showing the date when the same was so declared. .. 31 Vic. No. 12, supra, page 1670.

INCOME TAX. 8725 1904. Income Tax Act A.mendment. The company shall at the same time pay to the Commissioner income tax at the rate of five pounds per ~ entum of the amount of such dividend. It shall not be lawful for the person charged with the payment of any dividend to distribute the same amongst the persons entitled thereto until the tax payable in respect hereof has been paid. 13. In subsection one of section thirty-two of the Amendment Principal Act the words "any property in Queensland for ~ r: ~ ! ~ a1fAct. the principal" are repealed, and the words" any property for the principal, whether such property is in Queensland -or is by the contract to be brought into Queensland, and" are inserted in lieu thereof. 14. After section forty of the Principal Act, the following section is inserted :- [40A. J If any person in respect of whose income a Duty of . return is required to be made dies without having made orefpdreecseeanstaetdive the same, it shall be the duty of the legal personal repre- person. sentative of the deceased person to make such return. 15. In subsection one of section forty-three of the Amendment P rl·nC.lpa1. .f \ .l.C t , the words " as may be prescrl' bed" are o P f rin B. c 4 ip 3 a o l A f ct. ' repealed, and the words "as may be required by him" are inserted in lieu thereof. 16. Subsection two of section forty-six of the Principal Amendment Act is • repealed, . and subsection three shall be numbered 0pf rl , I s l . C ~ lp 6 a° I f .d • e t '. subsectIOn two accordmgly. 17. In section fifty of the Principal Act, the provision Am~ ndment "Provided that in all cases where the amount of income ~ r: ~ ! ~ a1~ ct. tax has been assessed at the fixed sum of ten shillings a general public notice of the assessment shall be sufficient," is repealed. 18. After section seventy-two of the Principal Act, the following section is inserted : - [72A.J When the Commissioner has reasonable Evas~ ons by grounds for believing that any person (herein termed iransl~ n~ .,;, the agent") does not reside in Queensland, and that the ~ ~ : r~ : , sslOn .agent has while in Queensland sold or disposed of any property for any other person, and has received or is -entitled to receive as remuneration or part remuneration for such sale or disposal any sum by way of commission or salary, and that the agent intends to leave Queensland with- out paying income tax, the Commissioner or any officer .authorised by him in that behalf may at any time require E

8726 INCOME TAX-LANDS. Special Agricultural Selections. 4 EDw. VII. No. 12, 1904. the agent to forthwith make a return of the amount of every such commission, and may forthwith assess the- income tax payable by the agent thereon and demand immediate payment of the same, and, if the same is not forthwith paid, or arrangements satisfactory to the Com-- missioner are not made for payment, may without warrant cause the agent to be arrested by any member of the police- force and detained until he can be brought before justices~ upon a complaint for evading the payment of the tax. Repeal of Part VIII. of the Principal Act. Repeal of Dividend Duty Act of 1890. 19. Part VIII. of the Principal Act is repealed. 20. "The Bividend Buty Act 0/1890"* is repealed. LANDS. 4 E :N rl o w . . 1 V 2. II. An Act to Extend the Operation of "The Special THE SPECIAL Agricultural Homesteads Act of 1901" so as. AGRICUL- TURAL to include Agricultural Farms. SELECTIONS ACT OF 1904. [ASSENTED TO 6TH DECEMBER, 1904.J B E it enacted by the King's Most Excellent Majesty,_. by and with the advice and consent of the Legis- lative Council and Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same,. as follows : - Short title. 1. This Act may be cited as "The Special Agricul-- tural Selections Act of 1904." Amendment 2. In order that the provisions of "The Special" ~ g~:, w. VII. Agricultural Homesteads Act 0/,1901"t shall be extended so as to enable Agricultural Farms to be selected under- similar conditions, the following amendments of the said Act are hereby made :- Title, (1.) In the title, preamble, and short title, the word preamble, &C? " Homesteads" is repealed, and the word "Selections" is. inserted in lieu thereof. Section 2. (2.) In the first paragraph of subsection one of section two, after the word "Homesteads" the words "or as- Agricultural Farms" are inserted. In the second paragraph of the said subsection, the words "need not also declare the lands mentioned therein ,,. are repealed, and the words "declaring the lands mentioned '" 54 Vie. No. 10, supra, page 3972. t 1 Rdw. VII. No. 12, 8Upra, page 8150.