Income Tax Act Amendment Act of 1915 (6 Geo v No. 33) (Qld)

6838 INCOME TAX. Income Tax Act Amendment Act. 6 GEO. V. No. 33·, ENEMY CONTRACTS, ANNULMENT OF. See MERCANTILE. EXCHANGES, LABOUR. See LABOUR. EXECUTORS. See TRUSTEES. INCOME TAX. , 6NGoe.o3. 3V. . An Act to Further Amend "The Income Tax Act THE INCOME of 1902." TAX ACT AMENDMENT ACT OF 1915. [ASSENTED TO 29TH DECEMBER, 1915.] B E it enacted by the King's Most Excellent Majesty, hy 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 Aot may be oited as "The Income Tax Act :!truction Amendment Act 0/1915,') and shall be read as one with of Act. .. The Income Tax Act 0/1902,"* herein referred to as the Prinoipal Aot. Commenoe- 2. The first period for whioh assessments of inoome m pe e r n io t d o o f f shall be made under the Prinoipal Aot as amended by assessment subsequent Aots and by this Aot shall oommenoe on the first day of January, one thousand nine hundred and fifteen, and, subjeot to the Prinoipal Aot, all subsequent annual periods shall be reokoned from that date. and to that extent this ~ot shall have retrospeotive operation. * 2 Edw. VII. No. 10, supra, page 970. For a consolidation of the Acts relating to Income Tax see Appendix.

INCOME TAX. 6839 1315. Income Tax Act Amendment Act. 3 The definition of "Absentee" in section three of Amendment the Principal Act is repealed, and the following definition of s. 3. is inserted in lieu thereof :- " .A bsentee"-A person who does not ordinarily Absentee. reside in Australia or in a Territory under the authority of the Commonwealth: the term includes a person who- (a) Is absent from Australia and such Territories at the time when the tax is assessed; or (b) Has been absent from Australia and such Territories during more than half of the period of twelve months immediately pre- ceding that date, unless he satisfies the Commissioner that he ordinarily resides in Australia or a Territory under the authority of the Commonwealth: the term does not include a public officer of the Commonwealth or of a State who is absent in the performance of his duty. The following provision is added to the definition of "Income derived from personal exertion" in the said section :-- The income subject to tax includes all net gains or profits arising or accruing to the taxpayer from the sale of any real or personal property whatsoever over and above its true value on the first day of January, one thousand nine hundred and fifteen, or accruing to the tax- payer as commission, fee, or other considera- tion arising out of such sale notwithstanding that such profits have not arisen or accrued from or in connection with any business carried on by the taxpayer. 4. The following subsections are added to section five Amendment of the Principal Act :_ of s. 5. [3.] Notwithstanding anything herein contained, it . shall be lawful for the Commissioner, and he is hereby authorised, to afford to the Commonwealth Commissioner of Income Tax or to his deputy in Queensland any information in his possession with respect to the adminis- tration of this Act or the incomes of taxpayers there- under; and the affording of such information shall not be deemed to be a contravention of this section. F

(f840 INCOME TAX. Income Tax Act Amendment Act. 6 GEO. V. No. 33, This subsection shall not come into operation unless or until reciprocal authority to afford similar information to the Commissioner has been duly conferred on the Commonwealth Commissioner of Income Tax or his deputy in Queensland. [4. J Notwithstanding anything herein contained, it shall b~ lawful for the Commissioner, and' he is hereby authorised, to afford to any other Commissioner of Income Tax in Australia any information in his possession with respect to the business done in Queensland by any person or company carrying on business in any Australian State as well as in Queensland; and the affording of such information shall not be deemed to be a contravention of this section. o A f m s. en 7. dment subse 5 q . uSenect tAiocntsseivsernepoef atlheed, Parnindcitphael fAoclltoawsinagmseencdteiodn b i y s inserted in lieu thereof :-.- Rates of income tax. [7.J Subject to this Act, there shall be charged, levied, collected, and paid for the use of His Majesty in aid of the 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.) On all income derived from personal exertion- Ifithe total income subject to the tax- Does not exceed £500 S 7id. in each and .. I, every £. Exceeds £500 and does not {9d. in eaQh and exceed £1,000 . . every £. Exce'eds £1,000 and does not { 12d. in each and exceed £1,500 . . . . every £. Exceeds £1,500 and does not {15d. in each and exceed £3,000 . . every £. Exceeds £3,000 .. { 18edv. einrye£ a.ch and . Provided that, from the amount of the tax payable on the income of any taxpayer derived from any agricul- turalor grazing pursuits carried on by him, there may be deducted the amount of any land tax actually paid by the taxpayer in respect of the same year under any Act

Hl15. INCOME TAX. Income Tax Act Amendment Act. ·of the Parliament of Queensland on land on which such .agriculturalor grazing pursuits are carried on. For the' purposes of this provision, "agricultural or grazing pursuits" mean the grazing of stock or dairying on areas not in either case exceeding an unimproved value in -the aggregate -of one thousand two hundred and eighty jpounds. ,(ii.) Ona11 income derived from the produce of pr0,perty- If the total income subject to the tax- Does not ex"Ceed £500 . . { 12edv. einrye£ a.ch and Exceeds £500 and does not) 13td. in each and exceed £1,000 .. t every £. Exceeds £1,000 and does not { 15d. in each and exceed £1,500 . . . . ' every £. Exceeds £1,500 and does not { 18d. in each and exceed £3,000 . . . . every £. Exceeds £3,000 . . { 20edv. einrye£ a.ch and (iii.) Provided that- (a) A person, not being a company or an absentee, whose total income, whether derived from per- sonal exertion or from the produce of property, or partly from personal exertion and partly from the produce of property, during the year in respect of which the assessment is made, did not exceed £200, shall not be liable to tax; ;(b) In respect to any person, not being a company or an absentee, whose total assessable income, whether derived from personal exertion or from the produce of property or partly from personal exertion and partly from the produce of property, during the year in respect of which the assess- ment is made, amounted to more than £200, then £200 of such income shall not be deemed to be part of the total income subject to tax, and accordingly shall be exempt from tax; and in deducting such £200 the income from personal ·exertion, if any, shall be first resorted to. 6841,

6842 INCOME TAX. Income Tax Act Amendment Act. 6 GEO. V. No. 33, (iv.) On the incomes of all absentees- If the total income subject to the tax- Does not exceed £500 •. { 12edv. einrye£ a.ch and Exceeds £500 and does not {14d. in each and exceed £1,000 . . every £. Exceeds £1,000 and does not { 17d. in each and exceed £1,500 . . . . every £. Exceeds £1,500 and does fiot {20d. in each and exceed £3,000 . . . . every £. E xceeds £3,000 . . { 24edv. eirnye£ a.ch and (v.) On the incomes of all companies not being public- utility companies or monopoly companies as herein defined- If the total profits do .not exceed { 12d. in each and 6 per cent. on the capitaJ .• every £. If such profits- I IeIvI eeyaych £ aonfd the amount representing 6 per cent. as llIforesaid. In each and every £ over that amount. Exceed 6 per cent. and do not exceed 7 per cent. 12d. 13d.. ~ ~ Exceed 7 per cent. and not exceed 8 per cent. I 12d. Exceed 8 per cent. and do not exceed 9 per cent. 12d. 14d.. 15d. Exceed 9 per cent. and do I not exceed 10 per cent. .. I 12d. Exceed 10 per cent. and do . · not exceed 11 per cent. . 12d. Exceed 11 per cent. and do · . not exceed 12 per cent. 12d. Exceed 12 per cent. and do ·. not exceed 13 per cent. 12d. Exceed 13 per cent. and do : 16d. 17d. 18d. 19d. not exceed 14 per cent. ·. 12d. Exceed 14 per cent. and do . 20d. not oxceed 15 per cent. ·. Exceed 15 per cent. and do · . not exceed 16 per cent. Exceed 16 per cent. and do 120. 12d. 21d. 22d. · not exceed 17 per cent. Exceed 17 per cent. • 12d. 12.d. 23d. 24<1

INcmm TAX. ---------------------------------------------- 1315. Income Tax Act Amendment Act. (vi.) On the incomes of all public utility companies and monopoly companies- If the total profits do not exceed {12d. in each and 6 per cent. on the capital ". every £. If such profits-. -------- ----- In each and every £ of the amount representing 6 per cent. In each and every £ over that amount. as aforesaid. Exceed 6 per cent. and do not exceed 7 per cent. 12d. 14d. Exceed 7 per cent. and do not exceed 8 per cent. 12d. 16d. Exceed 8· per cent. and do not exceed 9 per cent. 12d. 18d. Exceed 9 per cent. and do .not exceed 10 per cent. 12d. 20d. Exceed 10 per cent. and do not exceed 11 per cent. .• 12d. 22d. Exceed 11 per cent. and do not exceed 12 per cent..• 12d. 24d. Exceed 12 per cent. and do not exceed 13 per cent. .. 12d. 26d. Exceed 13 per cent. and do not exceed 14 per cent. .. 12d. 28d. Exceed 14 per cent. and do not exceed 15 per cent. .. 12d. 30d. Exceed 15 per cent. and do not exceed 16 per cent. 12d. 32d. Exceed 16 per cent. and do not exceed 17 per cent. 12d. 34d. Exceed 17 per cent... 12(1. 36d, (vii.) For the purposes of this section- (a) "Public utility" includes street tramway ser- vices, the manufacture or supply of coal gas for any purpose, the production or supply of electricity for light or power, and any other undertaking declared by resolutions of the Legislative Council and Legislative Assembly respectively to be a public utility; (b) "Public utility company" m,eans any company carrying on in Queensland the business of a public utility; 6843

6844 INCOME TAX. Income Tax Act Amendment Act. 6 GEO. V. No. 33, (c) "Monopoly company" means any company declared by resolutions of the Legislative Council and Legislative Assembly respectively-- To be a company in possession or partial' possession of a monopoly within Queens- land for the production, distribution,> transport, or exchange of goods or com- modities to the detriment of the public' interests; or To be associated with any trust or combine- for the purpose of securing a monopoly or partial monopoly in Queensland of the· production, distribution, transport, or' exchange of goods or commodities to the detriment of the public interests; (d) The capital on which the percentage of profits of any company shall be calculated shall include the amount actually paid up in cash or value on all shares actually issued by the company, less. any amount appearing as goodwill in the assets of the company; and the amount of all loans. raised by the company and secured by debentures- or bonds of the company-but no other capital. (viii.) Th~ income subject to the tax of every company having its head office or chief place 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. (ix.) Where any of the profits of such company remain undistributed amongst the members, then upon such undistributed profits only ninepence in each pound shall be payable as income tax; and should any part of such undistributed profits be after- wards distributed as dividends, the amount already paid as tax shall be allowed for in computing the· amount of tax payable on such dividend. (x.)- (a) When any undistributed profits of any com- pany standing to the credit of Profit and_ Loss Account or of Reserves are transferred to capital in any way or applied in any way in reduction of assets, such transfer or- application; or, (b) When the assets of any company are revalued~ and on such revaluation such assets are:

INCOME T'AX. 1':ll5. Income Tax Act Amendment Act. increased in value,and shares whether fully or partly paid up or debentures (which term includes debentures or stock or any other instrument of value by whatever name called), representing the whole or any part of such increase, are issued to its share- holders as such, then the issue of such shares to the amount of the nominal value of such shares if issued fully paid up, or of such portion of such value as is deemed to be paid up if such shares are issued partly paid up, or the issue of such debentures to the amount of the sum stated or alleged to be secured thereby, and the payment of. interest from time to time accrmng on such debentures; . shall be and it is hereby declared that the same always has been a declaration of divi- dends and a distribution of dividends within the meaning of the two last preceding subsections: Provided that with respect to any undis- tributed profits on which income tax at the rate of sixpence in the pound has already been paid, or was duly payable on the first day of ,January, one thousand nine hundred and fifteen, a further rate of sixpence in the pound only shall be payable upon their distribution by way of dividend to shareholders, or their transfer to capital in any way, or 'their application in any way in reduction of assets. (xi.) When any company issues any of its shares at a pre~ ium, then all sums of money received by the company in respect of such premiums-that is to say, all sums, so received in excess of the nominal value of all such shares allotted and issued by the company--shall, for the purposes of this Act, be profits of the company and assessable for income tax accordingly. (xii.) 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 :- (a) The first and subsequent dividends declared or paid by the company shall be taken to be . -,

6846 INCOME TAX. Income Tax Act Amendment Act. 6 GEO. V. No. 33, applied, in the first place, in repayment of 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. (b) 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 purposes 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. (c) 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. (d) When a mining company- is reconstructed and it is shown to the satisfaction of the Commis- sioner that after reconstruction the company is to all intents and purposes the same as before reconstruction, such reconstructed company shall be entitled to the same exemption from payment of tax as the· company was entitled to before reconstruction. The decision of the Commissioner in every such case shall be final and conclusive. Amendment 6. The following words are added to paragraph (ii.) of s. 13. of subsection one of section thirteen of the Principal Act :-" and also the amount of any land tax or income tax actually paid under any Act of the Parliament of the Commonwealth."

INCOME TAX. 6847 Income Tax Act Amendment Act. Mter paragraph (iv.) of the said I!!ubsection, the -following subsections are inserted : - (v.) The amount of fifteen pounds in respect of .each and every child under the age of seventeen years who is actu~ lly dependent on the tax- payer; (00.) The amount of any war pension paid to the taxpayer whether by the Imperial Govern- ment or the Commonwealth Government; 7. In paragraphs (iv.) and (v.) of section thirty-one Amendment ·()f the Principal Act, the words "five pounds" are of s. 31. repealed, and the words "seven pounds ten shillings" -are respectively inserted in lieu thereof. 8. In the .second paragraph of section 31A of the ~e~ ~ent Principal Act, the words" at the rate of five pounds per 0 s. A. ocentum of the amount of such dividend" are repealed, and the words "in acc.ordance with such of the rates prescribed in subseotion (v.) or (vi.) of section seven of this Act as may be applicable to the company" are i:p.serted in lieu thereof. 9. In subsection .one of section thirty-two of the Amendment Principal Act, the words" five pounds" are repealed, and of s. 32. the words" seven pounds ten shillings" are inserted in 1ieu thereof. 10. In the second paragraph of subsection one of ~ e~ c; nent -section thirty:-three of the Principal Act, the words o s. . "three pounds" are repealed, and the words "five qlounds" are inserted in lieu thereof. repea 1 l 1 e . d. Section thirty-five of the Principal Act is 8 R . e 3 p 5 e . al of INSPECTION OF MACHINERY. See LABOUR. INSPECTION OF SCAFFOLDING. See LABOUR.