Income Tax Act Amendment Act of 1920 (10 Geo v No. 35) (Qld)

IlfCOME TAX. -.---- -----.-- .. _--.- - ~ .- - -- r·· · -- - --· ~~- -·· --- --- -- - - - - - - - - ~ - - ~ ~ ~ - - - 10GEo. V. No. 35, 1920. Income Tax Act Amendment Act. '1 . ~ , I f;2; ',- ( ~ ~ j! INCOME TAX. \&'" r"// An Act to Further Amend "The Income Tax Act of 10 ~ Ge:I:-V: 1902" i1·certain particulars. N; ~ ! 5. INOOME 'fAX [As ENTED TO 11TH MARCH, 1920.] A Ac~ r MENDMENT B E it enacted by t e King's Most Excellent M'ajesty, AOT OF 1920. by and with the advice and consent of the Legis- lative Council and Legislative Assembly of Queensland in Parliament assmp.bled, and by the authority of the same, as follows :- . 1. This Act may be cited as "The Income Tax Act Short title Amendment Act of 19~ , " and .shall be read as one with: ~ ! truction *" The Income Tax A t of 1902" and its several amend-of Act. ments (herein collectiv ly referred to as the Principal Act). 2. The following amendments are made in section Amendment three of the Principal Act :- of s. 3. (i.) After the definition of "Foreign Company" the following definition is inserted :- " Gross income"-Income without any deductions Gross or exemptions allowable under this Act. income (li.) In the definition of "Income derived from personal exertion," after the word" allowances" where it first occurs, the words" fees, commissions, or consideration in the nature of or in lieu of commission," are inserted. The second paragraph of the said definition is repealed and the following provision is inserted in lieu thereof:- "Without limiting the genera}ity of the foregoing provision, the income subject to tax expressly includes all income referred to in the respective subsections under heading I. in section 12A of this Act." (iii.) The fo1lowing prOV]SlOn is added to the definition of " Income derived from the produce of property" :- "Without limiting the generality of the foregoing provision, the income subject to tax expressly includes all income referred to in the respective subsections cmder heading n. in section 12A of this Act." 7 "> 7 '1 " . : , : . ' . ' - ; ~ " ~ 1 v . . . 6 / . ' , (// ft. * 2 Edw. VII. No. 10, 8'/J,pm, page 8687. F

9130 INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, (iv.) After the definition of "Local Authority" the following definition is inserted : - Net ineome. "Net income"-Save as herein otherwise expressly provided, gross income less all deductions and exemptions allowable under this Act with the exception of the special exemption of two· hundred pounds or any part thereof provided for in section seven of this Act. (v.) After the definition of "Public notice" the following definitions are inserted :- . Queensland Company. "QueenslandCompany"-A company the head or principal office or the principal place of business of which is in Queensland; Taxable income. " Taxable income"-Income on which income tax is chargeable after allowing for all deductions and exemptions allowable under this Act; (vi.) After the definition of "Trustee" the following definition is inserted :- Year. " Year"-The period of time commencing on the first day of July in a year and ending on the thirtieth day of June in the succeeding year. Amendment 3. In section six of the Principal Act the words of s. 6. " or police magistrate" are repealed. 4. Section seven of the Principal Act is repealed and the following section is inserted in lieu thereof :- Rates of [7.] (1.) Subject to this Act, there shall be charged, income tax. 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 taxable income derived from personal exertion- On the first £1 the rate shall be 6 1060 od. and the rate shall progressively increase by 1 060 od. for each and every additional £ until the taxable income reaches £4,000, when the rate shall be 30d. in the £; On all such taxable income in excess of £4,000 the rate shall be 30d. in the £ on the first £4,000 and 36d. in the £ on each and every £ in excess of £4,000: Provided that, from the amount of the tax payable on the income of any taxpayer derived I

INCOME TAX. 1920. Income Tax Act Amendment Act. from any agricultural, dairying, or 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 of the Parliament of Queensland on land of which he is the owner for an estate of freehold and on which such agricultural, dairying, or grazing pursuits are carried on. For the purposes of this provision, "grazing pursuits" means the grazing of stock on freehold areas the unimproved value whereof does not in the aggregate exceed £1,280, and where both dairying and grazing pursuits are carried on by the taxpayer on the same lands and the greater part of his income is derived from such dairying pursuits he shall be entitled to the deduction aforesaid as if dairying pursuits only were so carried on by him. (ii.) On all tax~ ble income derived from the produce of property; and on the taxable incomes of all .absentees- On the first £1 the rate shall be 12104ood. alid th~ rate shall progressively increase by 10400d. for each and every additional £ until the taxable income reaches £3,000, when the rate shall be 24d. in the £; On such taxable income of £3,001 the rate shall be 241 0 6 0od. and the rate shall progressively increase by 10 6 0od. for each and every additional £ until the taxable income reaches £4,000, when the rate shall be 30d. in the £; On all such taxable income in excess of' £4,000 the rate shall be 30d. in the £ on the first £4,000 and 36d. in the £ on each and every £ in excess of £4,000. (lii.) Provided that where a taxpayer receives ·income from personal exertion and also from the produce of property he shall be charged on the taxable income derived from personal exertion at the rate' that would be chargeable if his tbtal taxable income had be~ n derived from personal exertion, and on his taxable income derived from the produce of pro- perty at the rate that would be chargeable if his total taxable income had been derived from the produce of property. 9J31 '" . ~ ~ I

9132 INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, (iv.) Provided further that- (a) A person (not being a company 'or an absentee) whose net 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, does not amount to more than £200, shall not be liable to tax; (b) With respect to any person (not being a company or an absentee) whose net income (whether derived from personal exertion or from the produce of property or partly from personal exertion and partly from the produce of pro- perty) during the year in respect of which the assessment is made, amounts to more than £200 but does not amount to more than £1,000, a part, but not exceeding £200, of such income shall be exempt from tax and shall not be deemed to be part of the taxable income. The amount of such exemption shall be ascertained as follows :-The amount of £200 shall be exempt if the net income does not amount to more than £203. The amount of £199 shl;tll be exempt if the net income is £204, and the amount of exemption shall be reduced by £1 for each £4 of net income in excess of £204, so that there shall not be any exemption if the net income is £1,900. In deducting the amount of such exemption the income derived from personal exertion, if any, shall be first resorted to. (v.) On the taxable incomes of all companies not being public utility companies or monopoly companies as herein defined or foreign companies the incomes whereof are assessable under section thirty-one, section thirty-two, or section thirty-three of this Act- If the total profits do no~ exceed 6{15d. in each per cent. on the capItal and everyl£. If such profits- Exceed 6 per cent. and do not{16!d. in each" exceed 7' per cent. .. . . ,and every £. Exceed 7 per cent. and do not{18d. in each exceed 8 per pent. .. . . and every £. . -\

1920. INCOlVIE TAX. Income Tax Act Amendment Act. Exceed 8 per cent. and do not {.19ld. in each exceed 9 per cent. .. . . and every £. Exceed 9 per .cent. and do not{21d. in each exceed 10 per cent. . . and every £. Exceed 10 per cent. and do not{22l d. in each exceed 11 per cent. . . and every £. Exceed 11 per cent. and do not{24d. in each exceed 12 per cent. . . and every £. Exceed 12 per cent. and do not{25l d. in each exceed 13 per cent. . . and every £. Exceed 13 per cent. and do not{27d. in. each exceed 14 per cent. •• and every £. Exceed 14 per cent. and do not{28l d. in each eXCeed{5 per cent. . . and every £. Exceed 1 .per cent. and do not{30d. in' each exceed .6 per cent. . . and every £. Exceed H~ per cent. and do not f31ld. in each exceed 17 per cent. . . L and every £. Exceed 17~ per cent. and do not{33d. in each exceed ~ 8 per cent.. . . and every £. Exceed 18 per cent. and do not{34 i d. in each exceed 9 per cent. . . and every £. Exceed 1 per cent. .. . . { 36edv. einryea £ c. h and (vi.) On the tax ble incomes of all public utility com- panies and onopoly companies-.. If the total p ofits do not exceed{ 15d. in each 6 per cent on the capital . . and every £. If such profits Exceed 6 er cent. and do notf18d. in each and exceed per cent. .. . . L every £. Exceed 7 er cent. and do not{21d. in each and exceed per cent. .. . . every £. Exceed 8 er cent. and do not{24d. in each and exceed per cent. .. . . every £. Exceed 9 er cent. and do not{27d. in each and exceed 0 per cent. . . every £. Exceed 10 per cent. and do not{30d. in each and exceed 1 per cent. . . every £. Exceed 11 per cent. and do not{33d. in each and exceed 2 per cent. . . every £. .

9134 • INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35f' Exceed 12 per cent. and do not{36d.in each and exceed 13 per cent. . . every £. Exceed 13 per cent. and do not{39d. in eac,h and exceed 14 per cent. .. every £. Exceed 14 per cent. and do not{42d. in each and exceed 15 per cent. . . every £. ' Exceed 15 per cent., and do not{45d. in each and exceed 16 per cent. . . every £. Exceed 16 per cent. .. . . { 48de. veinryea£ c . h and ( vii.~ For the purposes of paragraph (v.) and paragraph (vi.) of this subsection, the Commissioner may accept the total profits as ascertained and shown by a company to be its total profits: Provided that if the Commissioner is not satisfied that its total profits have, been correctly so ascertained and shown he shall have the power to declare what are its total profits for the purposes of the said para- graph (v.) or paragraph (vi.) as the case may require. (viii.) On the taxable incomes of foreign companies the incomes whereof are assessable under paragraph (i.), or paragraph (ti.), or paragraph (iii.), or para- graph (iv.) (if the taxable amount is assessed at 7t per centum of the total amount of sales in Queens- land), or paragraph (v.) of section thirty-one, or under section thirtv-two or under section thirty- three of this Act ~ the rate shall, save as next hereinafter provided, be 24d. in the £ on each and every £ of such income : Provided that- (a) In the case of a mutual life assurance company (that is, a life assurance compa;ny all the profits of which are divided among the policy holders) such rate shall be 18d. in the £ on each and every £ of such income; and (b) In the case of a life assurance company which has shareholders who are entitled to receive a share of the profits, but which divides a part of its profits among the polic,Y holders, such rate shall be 18d. in the £ on ea<!h and every. £ of so much of the taxable income assessed as aforesaid as bears the, same proportion to

INCOME TAX. 9135 1920. Income Tax Act Amendment Act. the total taxable income so assessed as the profits divided for the same year amongst the policy-holders of the company bear to the total profits of the company for the same year; and 24d. in the £ on each and every £ of the remainder of the taxable income so assessed. (ix.) On the taxable incomes of foreign companies the incomes whereof are assessable on the profits , made on Queensland business under paragraph (iv.) of section thirty-one of this Act- (a) Where information is supplied as to the total profits and the total paid-up capital of the company, income tax shall be assessed in accord- ance with the scale set forth in paragraph (v.) or paragraph (vi.) of this subsection as the case may require: Provided, however, that if the per- centage of profits ascertained in accordance with the said paragraph appropriate to the' company in question is less than the percentage which the Queensland profits bear to the total paid-up capital of the company, the Queensland profits shall be substituted for the total profits for the purpose of af;lcertaining the rate of the tax under the said paragraph. (b) Where information is not supplied as to the total profits and the total paid-up capital of the company,. the rate of the tax under paragraph (v.) or paragraph (vi.) of this subsection, as the case may require, shall be arrived at by taking. the percentage which the Queensland profits bear to the net capital of the company invested in Queensland, and the· said paragraph shall for .that purpo.se be construed as if for the words "total profits" the words "Queensland profits" were substituted, and as if for the word" capital ,,. the words "net capital of the company invested in Queensland" were substituted: "Net capital of the company invested in Queensland" for the purposes of this provision is the amount of the surplus of the ~ ssets in Queensland over the liabilities in Queensland of the company. (c) If a company- . Has no paid-up capital; or . ~ I,

INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, Is such that the net capital invested in Queensland cannot be ascertained; or Has 'not supplied information as to its paid-up capital, and it appears to the Commis- sioner that its liabilities in Queensland exceed its assets in Queensland, income tax shall be charged at the highest rate in the £ fixed by paragraph (v.) or paragraph (vi.) of this subsection, as the case may require, on each and every £ of its income. (2.) In 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" means any company carrying on in Queensland the business of a public utility; (c) "Monopoly company" means any company declared by resolutions of the Legislative Council and Legislative Assembly respec- tively-- To be a company in possession or partial posses- sion of a monopoly within Queensland for the production, distribution, transport, or exchange of goods or commodities 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 pro- duction, distribution, transport, or exchange of goods or commodities to the detriment of the public interests. (3.) For the purposes of this section, except where otherwise expressly provided, the capital on which the percentage of profits of any company shall be calculated shall be the amount actually paid up in cash or value on all shares actually issued by the company. (4.) The taxa'bIe income of every Queensland com- pany may be assessed at not less than the amount of the

INCOME TAX. 1920. Inc01ne Tax Act Amendment Act. dividends declared by such company during the year in respect of which the assessment is made out of profits made during that year. (5.) With respect to the profits of any. Queensland company which were undistributed on the thirtieth day Df June, one thousand nine hundred and eighteen, should :any part of such undistributed profits be afterwards distributed as dividend the company shall pay tax thereon at the rate that would have been chargeable if the whole Df the profits had been distributed in the year when they were made, and the amount already paid as tax shaH be allowed for in computing the amount of tax payable on such dividend: Provided that with respect to any undistributed 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 six pence in the pound shall be payable upon their distribution by way of divi- dend to shareholders, or their transfer to capital in any way, or their application in any way in reduction of assets. . (6.) A dividend shall be taken to have been paid out of the profits for the year preceding that in which the' .dividend was paid (unless it was an interim dividend paid out of the profits of the year in which it was so paid) ; but if the total amount of dividends paid (other than interim dividends as aforesaid) exceeds the total profits for the year preceding that in which such dividends were paid, then the amount by which such total amount of' dividends exceeds such total profits shall be taken to have been paid out of the profits accumulated prior to the first day of January, one thousand nine hundred and fifteen, or if there are no such accumulated profits, or such profits when so applied do not· exhaust the excess of dividends over profits as aforesaid, then the profits of . each year after the year one thousand nine hundred and fourteen shall be resorted to in rotation. (7.) If a Queensland company has no paid-up capital, the tax payable shall be at the maximum rate fixed under paragraph (v.) or paragraph (vi.) of sub- section one of this section for companies of that class. (8.) In the case of a Queensland company carrying on business outside Queensland, tax shall be charge d on 7/ ~ . '> C-. / ";, d Z-. '.

\ : , , . !1138 . INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, the profits made in Queensland, bu.t the rate of tax; shall be fixed as follows: -- . (a) The percentage which the total profits of the company bear to the capital of the company as defined by subsection three hereof; and· (b) The percentage which the Queensland profits of the company bear to the capital of the company as defined by . su.bsection three hereof; and (c) The percentage which the Queensland profits of the company bear to the net capital of the company invested in Queensland (meaning by that expression the amount of the surplu.s of the assets in Queensland over the liabilities in Queensland of the company), shall each be ascertained, and the rate of tax shall be the rate that would apply u.nder paragraph (v.) or para- graph (vi.) of subsection one hereof, as the case may requ.ire, if the greatest of the percentages so ascertained were the percentage of the total profits of the company on the capital of the company under su.ch paragraph: Provided that- (i.) The deduction allowed for head office expenSes shall be reduced by an amount which bears the same proportion to the total head office expenses as the sales made outside Queensland bear to the total sales, or where no sa.les have . taken place by an amount to be fixed by the Commissioner; (ii.) The undistributed profits shall be arrived at by deducting from the taxable income the divi- dends paid from that income less an amount which bears the same proportion to the total dividends paid from that income as the profits made outside Queensland bear to the total profits made during the year in, respect of which the assessment is made. (9.)-. (a) When any undistributed profits of any Queens- land company standing to the credit of Profit and Loss Account or of Reserves are trans- ferred to capital in any way or applied in any way in reduction of assets--then such transfer or application; or

I,. " 'INCOME TAX. 1920. Income Tax Act Amendment Ad. (b) When the assets of any Queensland company are 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 shareholders 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 accruing on such debentures; shall be and it is hereby declared. that the same always. has been a declaration of dividends and a distribution of dividends within the meaning of this section. (10.) When any Queensland company issues any of its shares at a premium, 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 com- pany and assessable for income tax accordingly. (11.) 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 profits made by the company shall be taken to be applied, in the first place, in repaym.ent of the cost actually incurred by the company 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 profits as is shown to the satis- faction of the Commissioner to have been applied during the year in respect of which the- assessment is mad~ 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. 91391

9140 INCOME TAX. Income T(J,x Act Amendment Act. 10 GEO. V. No. 35, (c) If the company carries on other business besides the business of mining, the Com- missioner may require the company to suhmit 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 profits 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 speci- fied 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 com- pany shall be entitled to the same exemption from payment of tax as the company was entitled to before reconstruction. (e) The decision of the Commissioner in eyery case arising under this subsection shall be final and conclusive. (12.) The amount of the taxpayer's income which is exempt from tax under paragraphs (vii.) and (viii.) of section twelve of this Act shall; notwithstanding any- thing in this Act or any other Act contained, be taken to be part of the taxpayer's gross income, and shall be returned in the taxpayer's return; and the rate of tax shall be calculated as if the amount so exempted were part of. his taxable income, but notwithstanding the pro-' visions of paragraph (i.) of subsection one of section thirteen of this Act he shall be entitled for the purposes of any deductions allowable under this Act to treat the amount so exempted as if it were part of his taxableincome. o A Of m s e . n 8 d . ment is rep 5 e . aTlehde apnrdovtihsoe tfoollsoewctiinogn perigovhitsoof itshiensPerritnecdipianl lAiecut thereof :- Provided that- (a) Where the taxable income of any person (not being a company or an absentee) after deduct- ing the statutory exemption of £200 (or part

INCOME TAX. 9141 1920. Income Tax Act Amendment Ad. thereof) provided in paragraph (iv.) of sub section one of section seven of this Act, does not exceed £200, then such person shall not be liable to pay any super tax; (b) Where the taxable income of any person (not being a company or an absentee) after deduct- ing the statutory exemption as aforesaid of £200 (or part thereof) exceeds £200, then from the super tax which would be otherwise payable by such person there shall be allowed the amount of super tax on the exemption allowed under paragraph (iv.) (b) of subsection one of section seven of this Act, computed at the rate at which the income tax of such person is computed, and such rate shall be as on income derived from personal exertion, if any, in the first instance. 6. In paragraph (viii.) . of section twelve of the Amendment Principal Act, after the word "Stock" the words ·of s. 12. lA "Bonds, Certificates" are inserted; also, the words- 7~ ; z: "or of the Commonwealth of Australia" are added to the /. said paragraph. After the said paragraph (viii.) the following para- graph is inserted:- (ix.) War gratuities granted by the Government of the Commonwealth in respect of service on active service abroad during war. 7. After section twelve of the Principal Act the . following section is inserted :-. [12A.] Without limiting the force or effect of any Specific other provision of this Act, incomes liable to tax shall h! ~ ~ : ~ of expressly include- liable to tax. (1.) As income derived from personal exertion- (1) All net gains or profits arising from the sale of any real property (not including the grant by the owner in fee-simple, or the grant, whether by way of sublease or of transfer or assignment by any lessee, of any estate or interest less than freehold) whether or' not arising or accruing from any business carried on by the tax- payer-arrived.at by deducting from the amount realised by the sale the expenses of sale and the cost (less any amount for depreciation which the Commissioner considers just) of the property : ~ '> CJ-:/f) 6.

, I' 9142 INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, Provided that- . (a) If a sale is subsequently cancelled an allowance may be made to the tax- payer in the year in which the cancella- tion takes place, or a refund may be made of any tax overcharged in connec- tion with the profit made or supposed to be made; (b) Where the taxpayer owned the property at the first day of January, one thousand nine hundred and fifteen, for the pur- pose of arriving at the amount to be deducted from the sale price the market value at that date shall be taken to be the cost of the property at that date, to which shall be added the amount of any further expenditure on the pro- . perty since that date and from whic4 depreciation, if any, allowed as afore- said, shall be subtracted. (2) All net gains or profits arising from the sale of any personal property whatsoever-whether or not arising or accruing from any business carried on by the taxpayer. The following provisions shall apply to the 'cases of sales of personal property respectively referred to in such provisions:- (i.) In determining the net gains or profits, arising from a sale of shares in a com- pany carrying on business in Queens-,- land, any losses arising from the sale of shares in other companies carrying on business in Queensland during the same year shall be deducted: Provided that if the taxpayer owned any of the shares in question at the first day of January. one thousand nine hundred and fifteen, the market value of such shares at that date shall be taken to be the cost price thereof at that date for the purpose of deter- mining whether there has been any net gain or profit or loss upon the sale thereof.

INCOME TAX. 9143 1920. Income Tax Act Amendment Act. (ii.) On the sale of any business, the net gainS or profits shall be arrived at by deducting from the amount realised by the sale the expenses of sale and the cost of any stock-in-trade (including in this term, live stock) comprised in the sale, and the cost (less 'any amount of depreciation which the Commissioner considers just) of any furniture, fittings, and other items comprised in the sale. (iii.)IOn the sale of the goodwill of any business, the net gains or profits snaIl be arrived at by deducting from the amount realised by the sale any sum paid by the taxpayer to the previous vendor for the· purchase of the good- will: Provided, however, that where the taxpayer owned the business at the first day of January, one thousand nine hundred and fifteen, for the purpose of arriving at the amount to be deducted from the sale price the market value of the goodwill at that date shall be taken to be the purchasing price thereof paid to the previous vendor. - (iv.) In connection with live stock owned by a grazier or farmer· or other person dealing in live stock the following . provisions shall be applicable :- (a) If a business (whether carried on by an individual persoil or by a partnership or by a company), is sold and the whole or part of the stock in trade of the business con- 'sists of live stock, the full and actual market value in money of such live stock shall be expressly stated in the contract relating to such sale, whether such sale is for a lump sum or not. - If such value is not so stated or . not truly so stated, or if such contract ,has not been reduced to writing, then :" c \'

INCOME TAX. lnoome Tax Act Amendment Act. 10 GEO. V. No. 35, such value shall be assessed by the Commissioner at such amount as he deems just and reasonable. In every such case the purchaser shall, for the purposes of this Act,. be entitled to claim that the sum of money so expressly stated or so. assessed is the amount paid by him for the live stock upon such sale. Moreover, such sum shall be deemed to be income of the vendor. The tax on such income shall,. until paid, be and remain a charge upon the whole of the property included in such sale and upon every part thereof; and, if not paid by such vendor,may be recovered from the purchaser in the same manner as if it were income of the purchaser:. Provided that- If the vendor has not taken advan- tage of section 20A of this Act, in computing his income there shall be allowed as a deduetion- The value of such of the stock sold as was on hand at the close of the last preceding year at the price shown in the income tax return for that year, and The purchase price of such of the. live stock sold as were pur- chased since that date. If the vendor has taken advan- tage of the provisions of section 20A of this Act, in computing his income there shall be allowed, according to. the circumstances hereinafter men- tioned, the deductions therein speci- fied, viz. :- If he has owned the business or interest sold continuouslysince' the thirtieth day of December, one thous8·nd nine hundred and six, there shall be de- ducted the value of live stock

INCOME TAX. 9145 1920. Income Tax Act Amendment Ad. owned by him in connection with such business or interest at the end of the year one thousand nine hundred and six, as shown in his return to the Commissioner for that year (less any portion of such value which has been already allowed to him) together with the purchase price of such of the live stock sold as were purchased during the year when the sale took place; or r f he has purchased the business or interest since the thirty- first day of December, one thousand nine hundred and six, there shall be deducted the value of live stock at the time of such purchase as expressed in the contract of sale or assp-ssed by the Com- missioner (less any portion of such value which has been already allowed to the tax- payer), together with the pur- chase price of such of the live stock sold as were purchased during the year when the sale took place. (b) If the sale is not of a business as aforesaid but of a share or interest m a partnership which carries on such a business, then the foregoing provi- sions shall· be applicable with the modification that the value of the vendor's interest in the live stock comprised in the sale by him of his share or interest in the partnership shall be deemed to bear the same pro- portion to the total value of the live . stock owned by the partnership as. the share or interest so sold by him bears to the total shares or interests. of the partnership. \

9146 INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, (3) When goods or articles manufactured in Queens- land or produced in Queensland are sold outside Queensland,or live stock are exported or sent from Queensland for sale outside Queensland, the amount received· for the sale of the goods, articles, or live stock shall be taxable as income earned in Queensland, but the cost of selling the goods, articles, or live stock outside Queensland shall be allowed as a deduction. For the purpose of any of the foregoing provisions under this heading I., transfers of any property including live stock by any person to any other person by way of gift 01' for a nominal or manifestly inadequate con- Bideration or to any beneficiary under any will or in the distribution of any intestate estate shall be considered to be sales, and the selling price in the case of all such. property other than live stock shall be the market price of the property transferred as at the date of transfer, and in the case of live stock shall be the price per head at which the late owner returned the same class of live stock in the last income tax return in which he returned his live stock on hand at the close of the year in respect of which such return was made, to which shall be added, for the purpose of arriving at the purchasing price to any beneficiary as aforesaid, the amount of any probate and succession duty paid in respect of such live stock. (H.) As income derived from the produce of property- (1) The amount of any annuity p~ id to any person by any other person residing in Queensland or any company carrying on business in Queens- land or in connection with any property situated in Queensland: Provided that if the annuitant has pur~ chased his annuity there shall be deducted from the annuity such amount as represents the repayment of capital invested in the annuity or the purchase money of any property sold by the annuitant which is being paid for in the shape of an annuity: (2) The amount or value of any premium paid upon the grant of a lease of any land (including Crown land) :

] 920. INCOME 'rAX. Income Tax .A.ct Amendment Ad. Provided that· if any lessee or sublessee makes a grant of a lease of the land whereof he is lessee or sublessee and receives any premium therefor and he has paid any premium upon the grant of a lease to him there shall be deducted from the amount of the premium so received by him the amount of the premium so paid by him (less so much thereof as has already been allowed to him in former years under this Act), but not exceeding the amount of the premium so received by him: • Provided further that if the premium on such lease by a lessee or sublessee is paid by instalments tax shall be charged on the amounts paid in the year in respect of which the assess- ment is made after allowing for a proportionate share of any deductions as last aforesaid. In this subsection the term "premium" includes any consideration whatsoever other than the stipulated rent, and the expression "grant of a lease" includes not only a grant from the owner of th6 land but also anyassign- ment transfer (,)r sublease of any lease by any lessee or sublessee. (3) If a landlord agrees with a tenant that the tenant shall effect certain improvements !(including any alterations or repairs) to a property owned by the landlord, and the tenant is not reimbursed for such improvements, the amounts so expended by the t~ nant shall be considered as income of the landlord in the year, or respective years if more than one, in which such i~ provements are effected: , Provided that the tenant may claim as a deduction the amount so spent: The amouq.t to be allowed as a deduction to the tenant in each year shall be determined by dividing the total expenditure of the tenant by the number of years for which the tenant has agreed to rent the property, unless the agree- ment specifies a certain expenditure in each year, in which case that amount shall be the deduction to be allowed to the tenant on his satisfying the Commissioner that the expenditure has actually been incurred: 9147 ..

9148 INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, In determining ·the amount to be allowed to the landlord for depreciation or repairs the expenditure of the tenant shall be taken into account: (4) The amount of any cash prize in any lottery, drawing, or sweep carried on in Queensland: (5) Income received by a beneficiary from any trust estate: (6) Five per centum of the capital value of any land and improvements owned and occupied by . the taxpayer as a residence, or occupied rent free by the taxpayer as a residence: (7) All moneys received by any person as or by way of royalty. Amendment 8. The following amendments are made in section of s. 13. thirteen of the Principal Act : - . (a) In the first paragraph of subsection one, the words "gross amount of every person's income" are repealed and the words " gross income of every person" are inserted in lieu thereof. (b) In paragraph (i.)" of subsection one, the word' "income" is repealed and the words "that part of his income which is not exempted from tax" are inserted in lieu thereof. (c) In paragraph (ii.) of the said subsection, after the words "paid by him" the words "on his own behalf except so much of the land tax so paid by him as is allowed as a deduction under the proviso in paragraph (i.) of subsection one of section seven of this Act" are inserted. (d) In paragraph (iii.) of the said subsection, the words " income or borrowed on property in Queensland" are repealed and the words "that part of his income which is not exempt from tax and any interest actually paid by him in that year on any mortgage of his residence" are inserted in lieU'thereof; also, after the words "income tax" the words "together with super tax if any" are inserted. (e) In paragraph (v.) of the said subsection; after the word "child" the words "of a taxpayer ordinarily resident in Queensland whose net income does not exceed eight hundred pounds" are inserted; also, after the word "years" the words" on the first day of the year in respect of which the assessment is made and" are inserted.

INCOME TAX. 1920. Income Tax Act Amendment Act. The following provisions are added to the said paragraph :- The amount of twenty-six pounds in respect of the wife and each and every relative by· blood or marriage of a taxpayer ordinarily resident in Queensland whose net income does not exceed eight hundred pounds, if such wife or relative is wholly maintained by him; The amount of twenty-six pounds in respect of a female relative, whether by blood or marriage or by adoption during childhood, of a taxpayer ordinarily resident in Queensland whose net income does not exceed eight hundred po.unds, if. such relative resides with him for t~e purpose of caring for any child or. adopted child of his and is incapacitated either by age or infirmity' and has not an income of her own exceeding t.wenty-five pounds per annum and is actually dependent on him: Provided that if the net income of a ,tax- payer ordinarily resident in Queensland ex- ceeds eight hundred pounds the allowances to which he shall. be entitled under any of the provisions of this paragraph shall be reduced by one pound for each five pounds by which his net income exceeds eight hundred pounds: Provided further that, in arriving at the net income of the taxpayer for the purposes of any of the provisions of this paragraph, the amount of any deduction which the taxpayer may be entitled to under any of such provisions shall be disregarded. (f) The following words are added to paragraph {v A.) of the said s:ubsection:. "if returned as income/' " (g) In paragraph (vi.) and in paragraph (vii.) ,of the said subsection, after the word ~' taxpayer" the words "ordinarily resident in Queensland" are inserted. , (h) So much of paragraph (viii.)' as remains unrepealed is repealed and the following paragraphs are inserted in lieu of paragraph (viii.) : - (viii.) Sums expended °by the owner for repairs to' or on that part of any property occupied by him or a tenant for the purpose of producing income (including any residence owned and 9149:

9150 INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, occupied by the taxpayer or occupied by him. rent-free) and for the repair of machinery~ implements, utensils, rolling-stock, and articles used by such owner for the purpose of producing income: Provided that the sums shall be estimated on the annual average sums expended for such purposes during the year in respect of which the assessment is made and the two years immediately precedi~ g it: (viiia.) Such sum as the Commissioner thinks just and reasonable as representing the diminished value per centum to the owner by reason of . depreciation, during the year in respect of which the assessment is made, of any building (including any residence owned and occupied by the taxpayer or occupied by him rent-free) and machinery, implements, utensils, rolling- stock, and articles used by the taxpayer or his tenant for the purpose of producing income, and also by reason of depreciation of any bore, well, dam, or other improvement made for the conservation of water, or of any fence: Provided that where a deduction has been allowed under paragraph (viii.) of this sub- section the Commissioner shall take into consideration the sum allowed under that paragraph in determining the sum to be allowed under this paragraph: rrovided further that, where in any busi- ness income is set apart by the taxpayer by way of a fund to cover depreciation under any of the headings mentioned in this pala- graph, the amount so set apart for the year in respect of which the assessment is made shall, subject to the approval of the Commis- sioner, be the sum to be deducted for deprecia:..; tion. (i) In paragraph (ix.) of the said subsection, the . words" the last two preceding subsections" are repealed and the words " paragraphs (vi.) and (vii.) hereof" are inserted in lieu thereof. \ .

INCOME TAX.. 9161 1920. Income Tax Act Amendment Act. (i) ';rhe following paragraphs are added to the said subsection :- (x.) Amounts expended in legal expenses incurred in collecting debts owing to persons in business or for preparation of a lease or in connection with any award relating to the taxpayer's business, or incurred in drawing· up agree- ments for the sale or purchase of goods or service agreements with employees; (xi.) Amounts expended by members of Parliament in travelling to and from their constituencies but not exceeding fifty pounds in anyone year, and als,o the actual expenses of their own elections incurred by candidates for election as members of Parliament of the State and of the Commonwealth but not exceeding seventy- five pounds for anyone election; (xii.) To a person employing his own children over the age of sixteen years to whom no payments are made for wages such amount as the Commissioner thinks just and reasonable; (xiii.) Contributions in money to any charitable institution in Queensland ~ pproved by the Commissioner: (xiv.) Provided always that a payment by a husband to a wife or by a wife to a husband by way of I salary or wages shall not be allowed unless the Commissioner is satisfied that the transaction was bona fide. (k) The following subsection is added to the section :- (2.) In all cases deductions under this section shall be made first from either the income derived from personal . exertion or the income derived from the produce of property according to the source of the income to which . the deductions relate, and' in any case. of doubt from the income derived from personal exertion; if the source of income first resorted to is' not sufficient to cover the deductions then the balance of such deductions shall be taken from the other source of income. 9. Section fourteen of the Principal Act is repealed. Repeal of s. 14.

9152' Amendment of 8. 15. Amendment of 8.16. INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, Amendment of B. 20A.

INCOME TAX. 9153 1920. I Income Tax Act Amendment Ad. 13. Sections 20~ and 200 of the Principal Act are Repeal of repea • 1 le 4 d. Section twenty-one of the Principal Act is s A 2 s 0 . m 02• e 0 n B dm an e d nt repealed and the following section is inserted in lieu of s. 21. thereof:- . tol [21.] Subject this Act, income tax shall be payable- (i.) Generally, I by the person to whom the Persons by income arises or accrues, or who, during the who~ltax year in respect 01 which the assessment is paya e. made, is ~ ntitled to the receipt thereof; and particularly (ii.) In respectl of the income of a company, by the publid officer thereof; (Hi.) In respect of income earned, derived, or received Iby a trustee, by such. trustee: Provided ~ hat- . {a) Where iIb-come is earned, derived, or received by a trustee in respect of different trust estates for different beneficial owners who are not for any reaso:q liable to be jointly assessed, the tax payable by the trustee shall bI separately assessed in respect of each of these estates; (b) 'Vhere trustee also earns, derives, or receives income beneficially he shall be separately assessed for that income, and for the income of which he is trustee, unless for any rea~ on he is liable to be jointly assessed indepe:qdently of this section; {c) A trustee shall in respect of any income for which he is trustee be assessed as if the income Were being received by one person: Provided that if any beneficiary is entitled to recei~ e from the trustee and is in receipt of any part of such income as his share the beneficiary shall be assessed on such pa.rt togethelr with any other incom~ ea.rned or derived by him, and the trustee shall be assesse} on the balance of such income for which e is trustee as if it were being receive by one person; notwithstanding' the foregoing ~ rovisions of this paragraph, where the het lUcome of the trust exceeds

!H54 INCOME TAX. ---------- Income Tax Act Amendment Act. 10 GEO. V. No. 35, -------- ------ - -- - ~ - - - - - - - - - - - - ~ ~ - - . - - - - - - - - - - - - - - ~ two thousand five hundred pounds the tax shall be assessed as if such income were being received by one person unless in.any particular case the Commissioner thinks it expedient not to do so ; (iv.) In respect of the income of an absentee, by his agent. Amendment of S. 31A. 15. In the first paragraph of section 31A of the Principal Act the words" company having its head office or chief place of business in Queensland" are repealed and the words "Queensland company" are inserted in lieu thereof; also, the- words "and verified by statutory declaration under the *"Oaths Act of 1867" " are repealed. The second paragraph of the said section is repealed and the following paragraphs are inserted in lieu thereof :- Upon so much of such dividend as consists of a distribution of hitherto undistributed profits the amount already paid as tax shall be allowed for and the balance only of the tax at the rate or respective rates of tax that would have been payable in respect of the year or years in which the undistributed profits were earned shall be paid. Upon so much of such dividend as consists of an interim dividend on profits for the current year, tax at the rate of fifteen pence in the pound shall be paid on account of income tax payable in respect of such year, and that amount when paid shall be allowed for iv- com- puting the tax for the said year. Amendment 16. In subsection one of section thirty-two of the of 11. 32. Principal Act, before the word "amount" where it thirdly occurs the word "net" is repealed; also, the words "after taking into consideration any mortgage thereon" are repealed. _ The following words are added to the first paragraph of subsection two of the said section :-" The tax shall, however, be assessed at the rate appropriate to the principal's income, and the agent shall not be allowed any exemption under paragraph (iv.) of subsection one of section seven of this Act." oAfmse. n 3 d 3 m . ent secti 1 o 7 n . thIinrtyth-tehreseecoofndthpeaPrarignrcaipphal oAfcts,utbhseecwtioonrdosn"efivoef pounds in everyone hundred pounds" are repealed and the words "five pounds per centum of the amount" are inserted in lieu thereof. - - - - - - ~ - . - ~ - - . - - - - - - * 31 Vie. No. 12, supra, pBge 228l.

INCOME TAX. 9155 1920. Income Tax Act) Amendment A,ct. 18. In the first paragraph of section thirty-four of Amendmep.t: .the Principal Act, after the words "calculated on the of s. 34. amount of such interest" the words "at the rate of twenty-four pence in the pound t.ogether with super tax if any" are inserted; also, before the word "thereon" the words" and super tax if any" a.re inserted. The following provision is added to the said section : - Provided further that, if the person entitled to receive such interest is liable to pay tax on any other income, he may be assessed on. .such interest together with his other income, and any amount of tax paid on his behalf in respect of such interest shall be deducted from the tax due by him under such assessment. 19. In subsection one of section thirty-nine of the Amendment> Principal Act, after the word "prescribed" the words of s. 39. , "by every absentee irrespective of the amount of his income and" are inserted. In subsection three of the said section, the words '"the thirty-first day of December" are repealed and th~ words "the thirtieth day of June" are inserted in lieu thereof. ' f 20. After section thirty-nine of the Principal Act the following section is inserted;- [39A.] The price fixed by any proclamation under Prices under *" The Su,gar Acquisition Act of 1915," in respect of any ~ uga~ Sl' ' ' ' on raw sugar, exp I OS · lves, ga I van ' lse d . ' Iron, live stock,mea t , or . A ", c C t, q h W ow .l far- other commodity acquired under that Act, whether during binding. I the present war or after the termination thereof and whether by reason of any shortage in stock, failure of crops, the existence of war, industrial trouble, or other- wise howsoever, shall not be binding on the Commissioner . or on any taxpayer for any of the purposes of this Act. , 21. In section forty of the Principal Act, before the Amendment. word "Persons" the words "Save as is hereinafter ofs. 40. provided" are inserted. The following provisions are added to the said section ;- Provided as follows ; - (a) Where the net income of a partnership exceeds two thousand five hundred pounds after allow- ingany amounts actually paid to any of the * 6 Geo. V. No. 2, 8upra, page 7035.

9156 INCOME TAX. Income Tax Act Amendment Act. 10 GEO. V. No. 35, partners for services actually performed by them in the business, the Commissioner may, if he thinks it expedient so to do, assess the tax as if such income were the income of an indi- vidual person instead of assessing the partners in their separate individual capacities. (b) If any person carrying on business was on the first day of July, one thousand nine hundred and eighteen, in partnership or thereafter has entered or enters into partnership with his wife, or with his wife and any child of his under the age of twenty-one years, or with any such child, he shall be assessed on the profits made in the business as if he received the total income therefrom, but shall be allowed to deduct any amounts actually paid to any such partners for services actually performed by them in the business. (c) If any person carrying on business was on the first day of July, one thousand nine hundred and eighteen, in partnership or thereafter has entered or enters into partnership with any member of his family (including his wife and. children), and -has provided at least seventy- five per centum of the capital of the business; and has at any time during the year inrespect of which the assessment is made the sole control of the income of the business, he shall be assessed as if he received the total income from the business, but shall be allowed to deduct any amounts actually paid to any such partners for services actually performed by them in, the business. Amendment 22. After the first paragraph of subsection one of .of s. 42. section forty-two of the Principal Act, the following provision is inserted:- "Any such information may be required to be fur- nished with respect to the income or supposed income of any designated person or of any class of persons or persons generally with respect to the income or supposed income of whom the Commissioner considers that the person or public officer to whom the requisition is mad& has any information or knowledge. ')

I INCOME ITAX. 9157 1920. Incorne Tax Act Amendment Ad. ' 23. In subsection one of section forty-six of the Amendment.· Principal Act, the words " at the time or times and in the of s. 46. manner prescribed" are repealed. In subsection two of the said section, the words" in accordance with the Regulations" are repealed. 24. Mter the first paragraph of section forty- ~ ven Amendment. of the Principal Act the following provision is inserted:- of B. 47. Such agent of an absentee shall be assessed at the rate of income tax payable by the absentee. 25. The following provision is added to section Amendment. forty-eight of the Principal Act :- of s. 48. Without prejudice to the foregoing provisions of this section, if any person by this Act required to make any return fails so to do, an additional tax amounting to ten per centum of the amount of such person's income tax shall be payable by him in addition by way of penalty: Provided that the Commissioner may in any particu- lar case, for reasons which in his discretion he thinks sufficient, remit the additional tax imposed by way of . penalty or any part thereof. 26. In subsection two of section forty-nine of the Amendment. Principal Act, the words "double duty" are repealed and of s. 49. the words " extra tax" are inserted in lieu thereof. 27. The first two paragraphs of section fifty of the Amendment, Principal Act are repealed and the following provision is of s. 50. inserted in lieu thereof :--- Upon making· any assessment the· Commissioner· shall cause to- be given to each taxpayer whose income has been assessed a notice of the making of the assessment, and such notice shall be in the form and contain such particulars as the Commissioner thinks fit, and shall be posted or delivered to such person in a closed letter or envelope. 28. In section fifty-four of the Principal Act, the Amendment words " assessment-register compiled" are repealed and of B. 54. the wor.ds " assessme~t made" are inserted in lieu thereof ; also, the word "assessment-register" where it secondly occurs is repealed and the word "assessment" is inserted in lieu thereof. .

:9158 INCOME TAX. Income Tax Act Amendment .Act. 10 GEO. V. No. 35, . . o A f m s e . n 5 d 5 m . er..t fifty- 2 fi 9 v . e oTfhtehefoPllroiwncinigpaalmAecnt d:m-ents are made in section (a) Subsection two is repealed and the following subsection is inserted in lieu thereof :- (2.) The Court shall hear and determine all objec- tions transmitted to it as hereinbefore provided, and may alter the assessments accordingly. (b) The second and third paragraphs of subsection four are repealed and the following provision is inserted in lieu thereof :- The decision of the Court shall be recorded on the assessment-notice submitted to it, and such decision shall be signed by the Judge constituting the Court. (c) Subsection five is repealed and the following subsection is inserted in lieu thereof :- (5.) When an assessment has been altered by the Court the assessment as altered shall be the assessment of the taxpayer. (d) In subsection nine the word" assessment-register" is repealed and the word "assessment-notice" is inserted in lieu thereof; also, the words "or extract therefrom" are repealed. _'\mendment 30. In paragraph (ii.) of section fifty-nine of the .of s. 59. Principal Act, the word "income" is repealed and the word "tax" is inserted in lieu thereof; also, the words "or returned at the time and in the manner required by law" are repealed. Paragraph (iii.) of the said section is repealed and the following paragraph is inserted in lieu thereof:- (iii.) Remove from any register the amount of any tax: which he is satisfied ought not to . have been charged. Amendment 31. The following paragraph is added to section of s, 64-. sixty-four of the Principal Act : - (v.) In any such proceeding, if the Court makes an order against the defendant the Court may . order the defendant to pay such costs as it thinks rea:oonable, including in such costs such expenses as have been incurred in connection with the issue and service of the summons and prosecution- of the claim.

. INCOME TAX. ------------ ------ --------------------------- 915!) 1920. Income Tax .clct Amendment Act. - -- --- --- ~- - -- - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 32. In paragraph (ii.) of subsection one of section Amendment seventy-two of the Principal Act the word" Knowingly" of s. 72. is repealed. 33. The following paragraph is added to section Amendment seventy-seven of the Principal Act :__ of s. 77. "In any such proceeding for a penalty, if the justices convict the defendant they may, in addition to any penalty, order him to pay such costs as they think reasonable, including in such costs such expenses as have been incurred in connection with the issue and service of })rocess and the prosecution of the complaint." 34. In section seventy-nine of the Principal Act, Amendment all words frop! and iricluding the words "six months" of s. 79. to the end of the section are repealed and the words "six years next after the date when the offence w.as committed 'or the penalty was incurred" are inserted in lieu thereof. 35. The following amendments are made in section Amendment eighty-one of the Principal Act :_ of s. 81. (a) In subsection four the word" assessment-register" is repealed and the word "assessment" is inserted in lieu thereof; also, after the words" copy of" the words "any such assessment or document" are inserted; also, the words" register or" are repealed; also, the word" register" is repealed and the word" assessment" is inserted in lieu thereof. (b) In subsection six the word" assessment-register" is repealed and the word "assessment" is inserted in lieu thereof. (c) Subsection seven is repealed and the following subsection is inserted in lieu thereof : - (7.) Any assessment and any copy thereof, certified by the Commissioner upon payment of the prescribed fee to be a true copy, and any return of any kind made by any person, by the production thereof alone and without any further evidence, shall be received as prima-facie evidence of the facts therein mentioned. 36. Paragraphs (ii.) and (iii.) of subsection one of Amendment section eighty-four of the Principal Act are repealed and 01 s. 84. the following paragraphs are inserted in lieu thereof : ~ (ii.) Fixing the fees to be paid for copies of or extracts from any books, assessments, or writings;

9160 INCOME TAX. Income Tax Act Amendment Act. 10 GEn. V. No 35,1920. (iii.) The time and mode of making and furnishing returns to the Commissioner and by whom they shall be made. Periods of assessment to be financial years. 37. 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 July, one thousand nine hundred and eighteen, and end on the thirtieth day of June, one thouEand nine hundred and nineteen, and all subsequent annual periods shall be reckoned from that period, and to that· extent this Act shall have retrospective operation, to the intent that the Principal. Act as amended by this Act shall apply to all incomes for the first period commencing and ending as aforesaid, and for every subsequent annual period, and to the assessment levy payment and recovery of tax thereon : Provided that if any taxpayer satisfies the Com- missioner that the taxable income received by him during the period of twelve months ending on the thirtieth day of June, one thousand nine hundred and nineteen, is in excess of such income received by him during the year ending on the thirty-first day of December, one thousand nine hundred and nineteen, the Commissioner may assess such taxpayer on such an amount of taxable income not exceeding the taxable income actually received by such taxpayer during the year ending on the thirty-first 0 day of December, one thousand nine hundred and nineteen, as in the opinion of the Commissioner is just and reasonable: Provided further that income tax under this Act shall not become payable earlier than the thirty-first day of January next succeeding the dose of the financial year in respect of which the assessment is made: Provided further that in the event of the death, on any date subsequent to the first annual period aforesaid, of any person who was a taxpayer as from the commence- ment of that first period and so continued until the end of the annual period immediately precep-ing his death, the Commissioner shall have power to make any adjust- ment of the tax in respect of such last-mentioned annual period and of the period oof time thereafter up to the date of death as will prevent double taxation by reason of the alteration of the period of assessment provided for in this section.