Income Tax Act Amendment Act of 1922 (13 Geo v No. 32) (Qld)

10048 ss. 1, 2. HOSPITALS.-INCOME TAX. Income Tax Act Amendment Act. 13 GEO. V. No. 32. Provided that no person shall be refused the benefits of an institution by reason of. inability to pay therefor. All such rules and regulations, upon being published in the Gazette, shall have the same effect as if they were. enacted in this Act, and shall be judicially noticed, and shall not be questioned in any proceedings whatsoever. All such rules and regulations shall be laid before Parliament within fourteen days after the making thereof if Parliament is then in session, or if not, then within fourteen days after the commencement of the next session thereof. Expenses to 8. All expenses of carrying this Act into execution obfe mpaoindeyosut shall be paid out of moneys to be from time to time appropri- appropriated by Parliament for the purpose. ated. Annual 9. The Minister shall submit to the Governor in report. Council an annual report on the working and operation of this Act. Such report shall be laid before Parliament. INCOME TAX. 13NCoi.oo3. 2 v . . An Act to further Amend "The Income Tax Act THE INCO~ IE TAX ACT of 1902" in certain particulars. A~IENDMF.NT ACT OF 1922. [ASSENTED '1'0 18TH OCTOBER, 1922.] B E it enacted by the King's Most Excellent Majesty,. by and with the advice and consent of the Legis- lative 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 ~ ~ l~ struction Amendment Act of 1922," and shall be read as one of Aot. with *" The Income Tax Act of 1902" and its several amendments (herein collectively referred to as the Principal Act). Amendmeni 2. The following amendments are made in section of s. 3. three of the Principal Act:- (1.) In the definition of "Agent," after the words "as agent" the words "and any person declared by the Commissioner to be an agent" are inserted. * 2 Edw. VII. No. 10 and Amending Acts, supra, pages 9379, 9568. and 9698. •

INCOME TAX. s.3. 10049 1922. Income Tax Act Amendment Act. (2.) To the definition of "Company" the words "the term also includes any body or association of persons which is not a body corporate but to which the Commissioner declares the provisions of this Act relating to a company are applicable, but this shall not apply to any bona fide partnership" are added. . (3.) To the definition of "Dividend" the words "the term includes any payment to a shareholder as a bonus or a director's fee in excess of the amount allowed under subsection (xii.) of section sjxteen of this Act" are added. (4.) In the definition of "Trustee," the words" the Curator in Intestacy and Insanity or any Deputy Curator" .are repealed, and the words "the Public Curator or any Deputy Public Curator" are inserted in lieu thereof. (5.) After the definition of "Year" the following definition is inserted;- " " Year of Assessment "-The year during which Year of income tax becomes due and payable." assessment. 3. The following amendments are made in section Amendment. seven of the Principal Act;- of s. 7. (1.) The following subparagraph is added to para- graph (iv.) of subsection one;- " (c) For the purposes of this paragraph the amount of a taxpayer's income which is exempt from tax under paragraph (vii.) of section twelve of this Act (less the expense of earning such exempt income) shall be taken into consideration in determining the amount of exemption to be allowed to the taxpayer." (2.) In paragraph (v.) of subsection one, the words "foreign companies the incomes whereof are assessable under section thirty-one, section thirty-two, or section thirty-three of this Act" are repealed, and the words "those foreign companies for which special rates of tax are prescribed under paragraph (viii.) of this sub- section" are inserted in lieu thereof; also after the word "profits," where it first occurs, the words "liable to tax under this Act" are inserted. (3.) In paragraph (vi.) of subsection one, after the word" profits," where it first occurs, the words" liable to tax under this Act" are inserted. (4.) The second proviso in paragraph (vii.) of sub- section one is repealed.

10050 s. 3. INCOME TAX. Income Ta.I: Act Amendment Act. 13 GEO. V. No. 32, (5.) Paragraph (viii.) oi subsection one is repealed, and the following paragraph is inserted in lieu thereof :- "(viii.) On the taxable incomes of the foreign companies hereunder mentioned (not being public utility companies or monopoly companies), the incomes whereof are assessable under section thirty-one, section thirty-two, or section thirty-three of this Act, the rates of tax shall be as follows : - l Banking companies, fire, accident, Rate of Tax. fidelity, guarantee, or marine insurance companies assessed on twenty-five per centum of the premiums, life assurance com- panies which have shareholders who are entitled to receive the whole profits, other companies assessed under paragraph (iv.) of section thirt',c-one of this Act on seven pounds ten shillings per centum of the gross sales made in Queensland or of the revenue derived from Queensland, and companies assessed under sec- tion thirty-bvo or section thirty- three of this Act 24d. in each and every £ of the tax- able income Mutual life assurance companieS} 18d. in each (that is, life assurance companies and every £ all the profits from which are di- of the tax- vided among the policy-holders) able income Life assurance companies w'hich have shareholders who are entitled to receive a share of the profits but which divide a part of their profits among the policy-holders- (a) On so much of the taxable"') income as bears the same pro-\, portion to the total taxable , income as the profits divided ~ 18d. in each for the sam,.e year amongst the and every £ J policy-holders of the company bear to the total profits of the company 10r the same year (b) On the remainder of the tax- I. 24d. in each able income .. J and every £

INCOME TAX. s. 3. 1922. Income Tax Act Amendment Act. On the taxable incomes of other foreign companies, the incomes whereof are assessable under section thirty- one of this Act the rates of tax shall be as provided in paragraph (v.) or paragraph (vi.) of this subsection, as the case may require." (6.) Paragraph (ix.) of the said subsection is repealed and the following paragraph is inserted in lieu thereof;- " (ix.) On the taxable incomes of foreign companies the incomes whereof are assessable under paragraph (ii.) and paragraph (iv.) of section thirty-one of this Act, at the rate which applies under paragraph (v.) or paragraph (vi.) of this subsection, as the case may require; Provided that if the company-- Has no paid-up capital; or Is such that the capital invested in Queensland cannot be ascertained; or Has not supplied full information as to its paid-up capital and profits; or Fails to supply to the Commissioner any information which he deems necessary to enabIe a proper assessment to be made, income tax shall be charged at the highest rate in the £ . fixed by paragraph (v.) or paragraph (vi.) of this sub- section, as the case may require, on each and every £ of its income." (7.) Subsection three is repealed, and the following subsection is inserted in lieu thereof :- " (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 so much of the average amount over a full year- (i.) Paid up in cash or value on all shares actually issued by.the company; and (ii.) Of all reserves invested in the business which have been created out of profits- (a) On which the additional tax that would be chargeable tmder subsection five of this section on their distribution has been paid; or 10051

10052 s.3. INCOME TAX. Income Ta.?: Act Amendment Act. 13 GEO. V. No. 32", (b) On which the full amount of tax applicable to the income of the year during which those profits were earned has been paid; as was, during the year in which the profits were earned, invested in the assets of the business ami used for the purpose of producing the profits of the company liable to tax under this Act; but in arriving at such avera,ge, where tax has been paid as aforesaid on any such reserves during the year' in which the profits were earned, such reserves shall not be taken as invested and used as aforesaid until the date on which tax thereon has been so- paid: Provided that- (a) If a company has written down its capital tl~e Commissioner may treat as paia-up capital payments by any shareholder holding shares during the year in which the profits were earned who held shares at the time the writing off took place to the extent of the amount paid by him which was written off on any of his existing shares; (b) So much of the amount of any goodwill appearing as an asset in the company's accounts shall be deducted from the paid-up capital as was not paid for in cash on the purchase of a business by the company or on which tax under this Act was not paid by the vendor of a business when selling to the company; (c) If any shareholder sells or transfers to a company in which he is a shareholder any property and receives shares in payment for the property or for part payment of the. property, and owes money to the company, the paid-up value of such shares for the purposes of this subsection shall be the value. of such property at the date of sale or transfer less the amount of the shareholder's indebtedness to the company. This provision shall also apply if a company- In consideration for any property trans- ferred to it by any person has issued shares to him and has also made itself responsible for any debt due by him on such property; or

INCOME TAX. s.3. 1922. Income Tax Act Amendment Act. Has advanced money to a shareholder which has been used by him in acquiring any shares of the company and is still owing to the company." (8.) In subsection four, after the word "assessed" the words "for any year" are inserted, and the words " during the year in respect of which the assessment is made" are repealed. (9.) Subsection five is repealed, and the following . subsection is inserted in lieu thereof :- " (5.) With respect to the taxable profits of any Queensland company which were earned prior to the first day of January, one thousand nine hundred and fifteen, and which were undis- . tributed on the thirtieth day of June, one thousand nine hundred and twenty-one, if after the lastmentioned date any part of such undistributed profits have been or shall be distributed, tax shall be charged thereon at the rate ot sixpence in each and every pound of the amount distributed. With respect to the taxable profits of any Queensland .3ompany which were earned after the thirty-first day of December, one thou- sand nine hundred and fourteen, and which were undistributed on the thirtieth day of .June, one thousand nine hundred and twenty- one, if after the lastmentioned date any part of such undistributed profits have been or shall be distributed, and with respect to the profits of any Queensland company which were or shall be earned after the' thirtieth day of June, one thousand nine hundred and twenty-one, and which are undistributed at the close of the year in which the profits were made if any part of· such undistributed profits are afterwards distrib:uted, tax shall be charged thereon at the rate that would have been chargeable if the profits had been distributed in the year in which they were made, less any amount already paid as tax thereon. For the purposes of this Act profits ot a company shall be deemed to be distributed if they are paid or credited to shareholders by way of dividend or by the 10058

10054 ss. 4-6. INCOME TAX. Income Ta.r: Act Amendment Act. 13 GEO. V. No. 32, issue to shareholders of debentures or if they are trans- ferred to capital in any way whether with or without the issue of fresh shares, or are applied in any way in reduction of assets. (10.) Subsection six is repealed. (11.) In subsection eight, all words from and includ- ing the words "but the rate of tax" to and including the words "under such paragraph" are repealed. (12.) In subsection twelve, the words "but not- withstanding the provisions of paragraph (i.) of sub- section 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 taxable income" are repealed. 4. After section seven of the Principal Act the following section is inserted:- Tax on cash " [7A.] There shall also be collected as income tax pdrraizweining.a on each ticket issued in a drawing for a cash prize an amount equal to five per centum ot ~ he selling price of the ticket. The minimum tax charged on any such ticket shall be threepence. The tax shall be paid within one week after the orawing takes place, and shall be accompanied by a return signed by a person responsible for the drawing, showing the number of tickets sold and the amount realised by the sale thereof.." Amendment 5. (1.) In section eight of the Principal Act,· the of B. 8. words "du,ring the continuance of the present War and the year next succeeding the year in which Peace is procJai med" are repealed. (2.) The amendment ofthe said section eight hereby made shall be deemed to have been made therein on the twenty-ninth day of June, one thousand nine hundred and twenty-one. Amen.dment 6. The following amendments are made in section oi s. 1.2. twelve of the Principal Act:- (1.) Before paragraph (ix.) the following provision is inserted:- . " (viii a.) Income derived as interest from deposits in the Commonwealth ..Government Savings Bank."

INCOME TAX. S. 7. 10055 1922. Income 'I'ax Act Amendment Act. (2.) In paragraph (ix.), after the word "War" where it first occurs, the words "pensions and war" are inserted. (3.) After paragraph (ix.) the following paragraph is inserted:- " (x.) The profits of any comp~ny carrying on business of a co-operative nature whose articles of association provide that profits shall not be distributed amongst the shareholders as dividends and which company is declared to be exempt from taxation by the Governor in Council." 7. The following amendments are made in section Amendment 12A of the Principal Aot ; - of s. 12A. (1.) In subsection one, under heading (I.), afteJ; the word "taxpayer" the words "where such real property was purchased or acquired by'him during the year in which the sale took place or the six years prior thereto" are inserted; also after the WOI d cost, the words "to the vendor" are inserted. Proviso (b) in the said subsection one is repealed. (2.) In subsection two, under heading (I.), after the word "whatsoever" the words "except where otherwise provided under heading (H.) of this section" are inserted; and after the word" taxpayer," where it first occurs, the words "provided that unless the taxpayer purchased or acquired such property (other than stock-in-trade including in this term live stock) during the year in which the sale took place or the six years prior thel'eto,. any profit made shall not be liable to tax" are inserted. (3.) Paragraph (i.) of the said subsection two is repealed, and the following paragraph is inserted in lieu thereof ;- " (i.) When a shareholder has purchased or acquired shares in a company and subse- quently receives liquidation dividends in excess of the purchase price of such shares,. such excess shall be treated as income arising from a sale of the shares. If a person receives by way of payment on any account whatsoever certificates issued by or shares in a company, the market value of such certificates or shares on the date on

10056 S.7. INCOME TAX. Income Tax Act Amendment Act. 13 GEO. V. No. 32, which they were so received by such person shall be treated as income of such person but not arising from a sale; if, however, all or any of these certificates or shares are subsequently sold by him or are redeemed or paid for by the company, any excess of moneys received by such person on such sale, redemption, or payment, over and above the market value of the same on the date aforesaid, shall be treated as income of such person arising from a sale during the year in which such excess was received. In the event of the sale of any such certificates or shares before such redemption thereof or payment therefor by the company and the purchaser receiving such redemption money or payment from the company, the net excess, if any, of such redemption money or payment over and above the purchase price paid by him for such certificates or shares shall be treated as income of such purchaser during the year in which such redemption money or payment was received by him." (4.) In subparagraph (b) of paragraph (iiA.) of the said subsection two, before the word "profits" the word "taxable" is inserted. (5.) In paragraph (iii.) of the said subsection two, after the word "business" the words "except as provided in subsection two under heading (H.) of this section" are inserted; also all words from and includ- ing the word "Provided" to the end of the paragraph are repealed. (6.) Subsection (2A), under heading (1.) is repealed, and the following subsection is inserted in lieu thereof ; - "(2A.) The rate of tax in respect of taxable income which consists of or includes taxable income' derived from any sale to which the foregoing subsection one or subsection two of this section applies, shall be arrived atasfollows;- The taxable income derived from any sale under subsection one or subsection two (excluding any sale of stock-in-trade, but including any sale of live stock in excess of

INCOME TAX. s.7. -1922. Income Tax Act Amendment Act. the average number of live stock disposed of from the property during the last preceding three years and otherwise excluding any sale of live stock) shall be divided by the number of years not exceeding seven, during which the taxpayer owned the property sold, and the amount arrived at shall be added to the tax- payer's other taxable income if any (including taxable income derived from any sale of stock- in-trade or of live stock not already taken into account under the foregoing provision) and there shall be charged on each and every pound of the taxpayer's taxable income the rate that would be chargeable if the amount so ascer- tained together with any income derived as mentioned in paragraph (vii.) of section twelve of this Act were the taxpayer's total taxable income. In any such case an exten- sion of time for paying the tax may be allowed by the Commissioner without penalty." (7.) The second paragraph of subsection four, under heading (1.) is repealed, and the following paragraph is inserted in lieu thereof:- "The rate of tax in respect of taxable income which consists of or includes taxable income derived from such retiring allowance or gratuity shall be arrived at by adding to the other taxable income, if any, of the taxpayer one-fifth of the taxable income derived from such retiring allowance or gratuity, and applying to the taxpayer's taxable income the rate that would be chargeable if the amount so ascertained, together with any income derived as mentioned in paragraph (vii.) of section twelve of this Act, were the total taxable income of the taxpayer. In any such case an extension of time for paying the tax may be allowed by the Commissioner without penalty." (8.) After subsection four, the following paragraph is inserted:- "(5.) Under this heading (1.) shall be treated as gross income the income derived by persons dealing in beche-de-mer, pearls, pearl-shells, and other shells, who carry on business in Queensland." 10057

10058 s.7. INCOME !l'AX. Income Tax Act Amendment Act. 13 GEO. V. No. 32, (9.) The paragraph under heading (1.). beginning with the words "For the purpose of" and ending with the words "in respect of such live stock" shall be numbered "(6)", and after subparagraph (b) of that paragraph the following subparagraphs are inserted:- "(c) The distribution in specie of the whole or any of the assets of a business among partners or shareholders of a company. (d) The vesting of any property in any constructing authority by a Proclamation or other instrument pursuant to any Act in respect of which property compensation is received by the late owner." Also, the words "shall be the market price of the pro- perty transferred or taken over as at the date of transfer or death" are repealed, and the words "in cases to which subparagraph (a)or (b) or (c) refers shall be the market price of the property transferred, taken over, or distri- buted as at the date of transfer, death, or distribution,. and in cases to which subparagraph (d) refers shall be the total amount or value of such compensation as aforesaid" are inserted in lieu thereof. (10.) In subsection two under heading (H.), the' word "premium," wherever it occurs, is repealed, and the word "consideration" is inserted in lieu thereof; also, after the words" (including Crown Land)", the following words are inserted: "or for the cancellation of any lease of land or premises or for the sale of the goodwill of a hotel property." In the first proviso of the said subsection two, after the word "sublessee," where it secondly occurs, the, words "or agrees to the cancellation of a lease" are inserted; also all words after the words "so received by him," where they first occur, are repealed, and the; following words are inserted in lieu thereof:- "any allowance under subsection (xiv.) of section thirteen of this Act to which he wa.s still entitled at the date of ttle sale by him or the cancellation of the lease by him, but not exceeding the amount of the consideration so received by i}im; and in the event of the lease sold having been a lease of Crown land acquired by him before the first day of July, one thou- sand nine hundred and eighteen, less such an

1922. INOOME TAX. Income Tax Act Amendment Act. s.7. 10059 amount as bears the same proportion to the consideration paid by him as the period for which the lease had to run at the date of the sale thereof by him bears to the period the lease for which had to run at the date of the purchase thereof by him. And if a lease is granted by the owner of any freehold who has paid a con- sideration for the cancellation of a lease or for the purchase of the goodwill of a hotel property" he shall be entitled to deduct from the considera- tion received for the granting of such lease any allowance to which he was entitled under sub- section (xiv.) or subsection (xv.) of the said section thirteen at the date when he granted such lease, but such deduction shall not be allowed in excess of the consideration so received by him." In the second proviso of the said subsection two, the words "premium on such lease by a lessee or sublessee" are repealed, and the words" consideration aforesaid" are inserted in lieu thereof. The provision in the said paragraph (2) beginning with the words "The rate of tax" and ending with the words" without penalty" is repealed, and the following provision is inserted in lieu thereof:- "The taxable income derived from any such premium paid for a lease or the cancellation of a, lease if paid in one year shall be divided by the number of years (not exceeding seven) during which the taxpayer held the lease prior to the date . of sale, and the taxable income derived from the sale of the goodwill of a hotel property if paid in one year shall be divided by five; and the amount, so arrived at shall be added to the taxpayer's othe~ taxable income, and there shall be charged on each' and every pound of the taxpayer's taxable income the rate that would be chargeable if the amount so ascertained together with any income derived as mentioned in paragraph (vii.) of section twelve of this Act were the taxpayer's total taxable income. In any such case an extension of time for paying the tax may be allowed by the Commi~ sioner without penalty."

s.8. INCOME TAX. Income Ta.x Act Amendment Act. 13 GEO. V. No. 32, (H.) Mter the first paragraph of subsection three under heading (H.), the following proviso is inserted:- "Provided, however, that the Commissioner shall, in arriving at the rate of tax to be charged to the taxpayer, add to the other taxable income of the taxpayer an amount arrived at by dividing the taxable income assessed under this subsection by the number of years of the tenancy (not exceeding seven) after the date when the improve- ments were effected; and there shall be charged on each and every pound of the taxpayer's taxable income the rate that would be chargeable if the amount so ascertained together with any income derived as mentioned in paragraph (vii.) of section twelve of this Act were the taxpayer's total taxable income. In any such case an exten- sion oftime for paying the tax may be allowed by the Commissioner without penalty." Amendment 8. The following amendments are made in section -of s.-13. thirteen of the Principal Act:- (1.) In paragraph (i.) of subsection one, after the word "outgoings" the words" (not being in the nature of losses and outgoings of capital, but excluding an losses by cyclone which are proved, to the satisfaction of the Commissioner, to have occurred and to be irrecoverable either directly or by way of insurance at a reasonable premium)" are inserted. (2.) In paragraph (iii.) of subsection one, the words "in respect of which the assessment is made upon money borrowed" are repealed, and the words "during which the income was earned upon money borrowed by the taxpayer" are inserted in lieu thereof. (3.) In paragraph (iv.) of subsection one, before the word "income" the word "taxable" is inserted. (4.) In paragraph (v.) of subsection one, after the words "is wholly maintained by him," the words" H the income of a wife does not exceed twenty-six pounds in any year she shall be deemed to have been wholly main- tained by her husband during that year" are inserted; and in the first proviso, after the words "eight hundred pounds," where they first occur, the words "each of" are inserted; and after the word "allowances" the words "of twenty-six pounds" are inserted.

INCO~ IE TAX. s. 8. ]922. Income Tax Act Arnendment Act. The following provisions are added to the said ;paragraph (v.) : - " Provided also that in arriving at such net income of a taxpayer there shall be taken into account the amount ot a taxpayer's income which is exempt from tax under para- graph (vii.) of section twelve of this Act (less the expense of earning such exempt income) : Provided also that where a taxpayer entitled to deductions under this paragraph has earned income in the State for part only of a year, the deduction to which he shall be entitled shall be a sum which bears the same proportion to twenty-six pounds (or part thereof) in each case as the part of the year during which the taxpayer earned the income in the State bears to the whole year." (5.) In paragraph (vii.) of subsection one, the words "'who is in receipt of salary, wages, allowances, or stipends" are repealed. (6.) The last proviso of paragraph (viiia.) of sub- section one is repealed, and the following proviso is inserted in lieu thereof :- "Provided further that, where I in any business income is set apart by the t/1xpayer to cover depreciation under any of t4e head- ings mentioned in this paragraph, the lamount so set apart for the year during which the income was earned may, subject to the ap- proval of the Commissioner, be the sum to be deducted for depreciation." (7.) In paragraph (ix.) of subsection one, the words " paragraphs (vi.) and (vii.)" are repealed, and the words H paragraphs (v.), (vi.), and (vii.)" are inserted in lieu thereof. (8.) In paragraph (xiii.) of subsection one, after the word "money" the words "or kind made directly" are inserted; and after the word "Commissioner" the words ." provided that the value of the contribution if in kind shall be verified to the satisfaction of the Commissioner" are inserted. After paragraph (xiii.) of subsection one, the following paragraphs are inserted:- "(xiv.) When any taxpayer has paid a sum of money for a lease or a renewal of a lease 10061

10062 s. 8. I~ CO) IE TAX. Income Tax Act Amendment A.ct. 13 GEO. V. No. 32,. of premises or land occupied by him, or for the cancellation of a lease of premises or land owned by him, he shall be allowed as a deduction from his income the amount so paid, but such allowance shall be distributed proportionately over the period for which the lease had to run from the date of purchase or cancellation; but so that such deduction shall only be made, with respect to the purchase of a lease granted by the Crown, in cases where such purchase was made after the thirtieth day of June, one thousand nine hundred and eighteen, and such deduction shall not be allo"\;v'ed after the sale by the taxpayer of such lease or the cancellation of such lease. (xv.) When it is proved to the satisfaction of the Commissioner that any taxpayer who pur- chases a hotel property has paid a sum of money for the purchase of the goodwill of the property, he shall be allowed as a deduc- tion the amount so paid, distributed propor- tionately over a period. of fi ve years; but if he subsequently grants a lease of such property before such period expires the allowance shall cease. (xvi.) Contributions in money to any bona fide industrial union, trade or professional associa- tion, or agricultural society approved of by the Commissioner, but not exceeding ten guineas to each respectively. (xvii.) Sums set aside or paid by an employer of labour a£ or to a fund to provide individual personal benefits, pensions, or retiring allow- ances to employees: Provided that the deduction shall not be allowed unless the Commissioner is satisfied that the fund has been established or the payment made in such a manner that the rights of the employees to receive the benefits~ pensions, or retiring allowances have been fully secured"; and paragraph (xiv.) is renumbered (xviii.) accordingly.

1922. , INCOME TAX. Income Tax Act Amendment Act. ss. 9,10. 10063 (9.) After the said paragraph (xviii.) of subsection <one, the following paragraphs are inserted : - " (xix.) Provided also that the aggregate amount of the contributions under para- graphs (vb), (xiii.), and (xvi.) hereof to be allowed as a deduction from a taxpayer's income shall not exceed twenty per centum of the net income of the taxpayer before allowing any deduction under paragraph (v.) of this subsection." "(xx.) Expenses incurred by a taxpayer in educating his children under sIxteen years of age, where it is proved to the satisfaction of the Commissioner 'that suitable educational facilities are not provided by the State within reasonable daily travelling distance of the place of residence of the taxpayer." (10.) After subsection two, the following subsection is inserted:- . " (3.) All payments of income tax, land tax, and for other purposes which are not allowed as deductions from a taxpayer's income under this Act, shall be deemed to have been paid out of the income earned during the year when the expenditure was incurred." 9. In section sixteen of the Principal Act paragraph Amendment> (i.) is repealed; in paragraph (ix.) the two provisoes are of 8. 16. repealed; also in paragraph (xi.) the words "taxpayer's taxable income" and the words "his taxable income" wherever they occur, are repealed; and the words "the income of the taxpayer which is not exempt from taxation" are respectively inserted in lieu thereof. 10. The following provision is added to section Amendment> twenty of the Principal Act- of 8. 20. " Provided that if any of the assets of any person -carrying on a business are written-up in value, the increase in value shall be taken as profit in the year in which the writing-up occurs, but the rate of tax shall be arrived at by dividing the amount of profit by the number of years (not exceeding seven years) during which the assets were owned prior to the writing-up; and the amO"Rnt so arrived at shall be added to the taxpayer's oOther taxable income, and there shall be charged on each

10064 ss. 11,12. INCOlVIE TAX. Incomc Tax Act Amendment Act. 13 GEO. V. No. 32" and every pound of the taxpayer's taxable income the· rate that would be chargeabJe if the amount so ascer- tained together with any income derived as mentioned in paragraph ( v~ i. ) of section twelve of this Act were the taxpayer's total taxable income. In any such case an extension of time for paying the tax may be allowed by the Commissioner without penalty." Amendment 11. The following amendment is made in section 20A of S. 20A. of the Principal Act :-After the last proviso add:- "Provided further that the Commissioner may exempt persons who do not own more than one hundred and fifty head of live stock from returning such live stock as on hand at the beginning and end of a year, but such persons shall return as income the proceeds of any sales of live stock made by them." Am<mdment 12. The following amendments a:m made in section of s. 3l. thirty-one of the Principal Act : - Insurance compan;es. (i.) Paragraph (ii.) is repealed, and the following paragraph is inserted in lieu thereof :- " ( ~ . ~ . . ) If the company carries on in Queensland fire, accident, fidelity, guarantee, or marine insurance business, its taxable income shall be the amount of the profits made by the company in Queensland plus any expenses or charges which are not allowable deductions under this Act, and where the company. actually pays away any portion of any premiums by way of reinsurance effected with any other company which does not carry on business in Queensland, the first- named company shall· for the purposes of this Act be deemed to be the agent of the last-named company so receiving s11eh portion of such premiums, and before paying away such portion may pay to the Commissioner jncome tax, together with super tax, if any~ on the amount at the ra.te of two pounds ten shillings per centum, and may deduct from such portion of premium the amount of tax thereon; and only such portion of premium upon which the tax has been so paid shall be an anowab~e deduction as aforesaid. If such profits cannot in the

I::-.JCOJ\IE TAX. ss. 13, 14. 10065. 1922. Income 7'a,1; Act Amendment Act. ~ - - - - - - - - - - - - - - - - - - - - - - opinion of the Commissioner be satisfactorily determined, its taxable income shall be a sum equal to twenty-five pounds per centum of the premiums on account of Queensland business received by the company after deducting any portion of such premiums actually paid away by way of reinsurance effected in Queensland with any other company, together with any profit made on the sale of any assets held in Queensland." (ii.) The following words are added to -paragraph (iii.) ;-" together with any profits derived from the sale of any assets in Queensland or from the writing-up of the value of assets in Queensland, from which total sum shall be deducted any amount received as interest from the Queensland Government Loan of 1920 after deducting therefrom the expenses of earning such interest, and in estimating such expenses such amount as the Commis- sioner thinks just may be allowed in respect of interest paid by the company on money borrowed and invested in such loan." 13. After the third paragraph of section 3lA of the Amendmentr. . Principal Act, the following paragraph is inserted ;_ of s. 31A. "Except in cases where a dividend is declared by the company to be a dividend out of the profits of a specified year or years, a dividend shall be taken to have been paid out of the profits for the year preceding that in which the dividend was paid; but if the total amount of dividends paid 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 ~ Tanuary, 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." 14. In subsection one of section thirty-two of the AmendmenE, Principal Act, after the words "the agent" where they of s. 32. first occur, the words "earns any income for the prin- cipal, whether such income is received by the agent

10066 ss. 15-17. INCO~ IE TAX. Income Ta.!; Act Amendment Act. 13 GEO. V. No. 32, personally or is received or is receivable by the principal directly or otherwise, or" are inserted; and after the words "per centum" the words "upon the amount of such income e'1rned, or as the case may be" are inserted. Amendment 15. After subsection one of section thirty-three of -of s. 33. the Principal Act, the following subsection is inserted : - "(lA.) Any agent or representative of such company or person shall as regards such income make the retu rus, be assessed, be liable to income tax, and otherwise be subject to the provisions of this Act, and to do all acts and things thereunder as if such income were actually the income of the agent or representative. The tax shall, however, be assessed as if the income were the income of one company or person, and the agent or representative shall not be allowed any exemp- tion under paragraph (iv.) of subsection one of section seven of this Act. But nothing herein contained shall exempt or dis- charge the principal from liability to make returns or to pay income tax upon such income." Amendment 16. In section thirty-four of the Principal Act, the .{)f s. 34. words" twenty-four pence" are repealed, and the words "eighteen pence" are inserted in lieu thereof. 17. After section forty-one of the Principal Act, the following section is inserted:- Registrat'on "[4lA.] (1.) It shall not be lawful for any person to . .{ a ) g f e t n a t x s. charge or receive any fee for or in relation to the preparation of any income tax return for a taxpayer or for or in relation to the transaction of any business on behalf of a taxpayer in income tax matters, other than a solicitor or barrister appearing in court, unless he is registered as a tax agent with the Commissioner: Provided that the Commissioner may in his discretion exempt any person from the provisions ot this section upon being satisfied that the total income of such person derived as a tax agent does not exceed ten pounds per e,nnum, and may grant to such person a certificate of exemption in that behalf which shall have a currency of one year, but may be annually renewed. (2.) Only such persons as satisfy a Board, consisting of the Auditor-General, the Under Secretary to the Treasury, and a public account?,nt e,ppointed by the

INCOME TAX. S.18. 10067 1922. Income Tax Act Amendment Act. Governor in Council, as to their qualifications and fitness to so act, shall be registered as tax agents. Such Board is hereby authorised and required to deal with all applications for such registration. Where a firm carries on the business of tax agents it shall be sufficient if one member of the firm is so registered on behalf of the firm. Where a registered company carries on the business Df tax agents it shall be sufficient if some person a ppointed in writing by the company is so registered on behalf of the oompany. (3.) Each registered tax agent shall pay to the Commissioner an annual fee of two guineas if carrying on business within the petty sessions district of Brisbane, or of one guinea if cafTying on business elsewhere within the :State. (4.) The Board may cancel or refuse to renew the registration of any tax agent upon its being proved to their satisfaction that such tax agent has prepared a return which is false in any material particular or has persistently neglected to attend to his principal's business. (5.) If through the neglect of a registered tax agent a penalty or additional tax is charged against a taxpayer, the registered tax agent shall be liable to pay this penalty or additional tax, and the amount may be recovered by his principal from him by process of law. 18. (1.) At the beginning of section torty-two of the Amendment Principal Act the following subsection shall be inserted; of s. 42. and subsections (1.), (2.), (3.), and (4.) of the said section shall accordingly be renumbered (2.), (3.), (4.), and (5.) respectively:- "(1.) It shall be the duty of every taxpayer carrying Dn a business and he is hereby required to enter or cause to be entered, in a book or books to be kept for that purpose, full particulars of his business transactions in such a manner that his income can be readily ascertained. The Commissioner may require him to alter his method of keeping his books if in the opinion of the Commissioner they are not kept in a satisfactory manner. Any person offending against this subsection shall be liable to a penalty not exceeding fifty pounds."

10068 . SS. 19, 20. INCOME TAX. Income Tax Act ..o1mendment Act. 13 GEO. V. No. 32,. (2.) In subsection one (now subsection two) of the said section, the words "in writing signed by such person or public officer or by oral communication" are repealed,. and the words "in such manner and form as may be required by the Commissioner" are inserted in lieu thereof. Amendment 19. In subsection three of section forty-three, after of s. 43. the words "employed by" the words "or under engage- ment by contract to" are inserted; and after the word " allowed" the words "or to be paid or allowed under contract" are inserted. Amendment of s. 48. 20. In section forty-eight of the Principal Act,. all words from and including the words " without prejudice" to the end of the section are repealed, and the following provisions are inserted in lieu thereof :- "Without prejudice to the foregoing provisions of this section, any person who- (a) Fails or neglects to duly furnish any return or information as and when required by this ~ ct or the regulations or by the Commis- SIOner; or (b) Fails to include any assessable income in any return; 01 (c) Includes in any return as a deduction an amount which is in excess of that actualJy expended or incurred by him, shall be liable, except as provided in this section, to a fine of one pound to be imposed by the Commissioner or to pay by way of additional tax an amount of ten per centum of the amount of tax assessable to him, whichever is the greater, in any case coming under paragraph (a) hereof, or, if the case comes under paragraph (b) or (Cl hereof, shall be liable to a fine of one pound to be imposed by the Commissioner or to pay by way of additional tax the amount of double the tax which would have been avoided if the assessment had been based on the return lodged, whichever is the greater, in addition to any additional tax which may become payable by him in accordance with section sixty-one of this Act: Provided that the Commissioner may in any par- ticular case, for reasons which he thinks sufficient, remit the fine or additional tax or any part thereof payable under this section."

INCO}fE 'l'AX. ss. 21-27. .i0069 1922. Incmne Tax .Liet Amendment Act. 21. In subsection three of section forty-nine of the Amendment Principal Act, after the word "Commissioner" the words of s. 49. " by the last preceding section and" are inserted; also, before the word "evading" the words "failing to render returns or" are inserted. 22. In section fifty-eight of the Principal Act, the Amendment. words" or police magistrate" are repealed. of s. 58. 23. Section fifty-nine of the Principal Act is Repeal of repealed. s 59. 24. The following prOVISIOn is added to section Amendment sixty-one of the Principal Act :-" in which case the of s. 61. Commissioner may reduce the additional tax to an amount equal to interest (at a rate to be fixed by him but not exceeding six and a-half per centum per annum) from the due date till the date of payment: Provided that the Commissioner may extend the time for payment of any tax on such terms as he considers reasonable." 25. In section sixty-two of the Principal Act, the Amendment words" assessment-register" are repealed, and the word of s. CZ. " assessment" is inserted in lieu thereof. 26. Section seventy of the Principal Act is repealed, Amendment and the following section is inserted in lieu thereof : - of s. 70. " [70.] No application for a refund of an over-pay- Time limited ment of tax shall be entertained by the Commissioner for 1· t. un I ess made W·Ith· III three years after t heth· IrtI.eth d. ay 0 f f a o p r p re lC f a un IO d. ns June of the year of assessment in connection with which the overpayment was made." 27. In paragraph (i.) of subsection one of section Amendment seventy-two of the Principal Act, the words "Being of s. 72. within or having an agent within Queensland, fails" are repealed, and the word " Fails" is inserted in lieu thereof. In subsection three of the said section the words "paragraph (iii.)" are repealed and the words "para- grE'ophs (i.), (ii.), and (iii.) or any of them of subsection one" are inserted in lieu thereof.

10070F.28. INCOME TAX. Income Tax Act Amendment Act. 13 GEO. V. No. 32, 28. Sections 72A and 72B of the Principal Act are repealed, and the following section is inserted in lieu thereof:- "[72A.] (1.)- -Income 'ea.rned during pcwt of year by non· residents. (a) When any person who does not ordinarily reside in Queensland has, while in Queensland during a part only of any year, received or . become entitled to receive any income earned by him in Queensland, whether such income does or does not amount to more than two hundred pounds, and whether such income has been paid or is payable in Queensland or elsewhere; or Transient taxpayers. (b) When the Commissioner has reasonable grounds for believing that any person, whether theretofore residing in Queensland or not, while in Queensland has received or is entitled to receive income, and that such person intends to leave Queensland without paying income tax, the Commissioner or any officer authorised by him in that behalf may at any time require such person to attend at the office of the Commissioner of Taxes for oral examina- tion pursuant to section forty-two of this Act, or may require him (or if he is an employee, his employer, or if he is under engagement by contract, the contractor) to forthwith make a return (if he has not already done so) of the amount of such income, and may forthwith assess the income tax payable by such person thereon, or in the event of his failing to attend at the office as aforesaid or to furnish the required return, as the case may be, on such amount and at such rate of tax as the Commissioner thinks reasonable, and demand immediate payment of the same. (2.) In makh'1g an assessment in cases to which parJ,graph (a) of subsection one hereof applies, such allowance of the 8nm of two hundred pounds or part thereof as providE-d by sub-paragraph (b) of paragraph (iv.) of wbsection one of ssction seven of this Act by way of exemption shall be made as the part of the year during which such person earned such income in Queensland bears to the whole year.

INcn~ fE TAX. ss. 29, 30. 10071 1922. Income Tax Act llmendment Act. (3.) If in any case arising under this section the tax is Remedy. not forthwith paid by the person liable, or arrangements sat,isfactory to the Commissioner are not made for pay- ment, the Commissioner may without warrant cause such person to be arrested by any member of the Police Force and detained until he can be brought before justices upon a complaint for avoiding or attempting to avoid assessment of income or the payment of the tax, or may forthwitb demand the tax from any person declared pursmmt to this Act to be the agent of such person." 29. The first period for which assessments of income Periodd of shall be made under the Principal Act as amended by assessment. this Act shall commence on the first day of July, one thousand nine hundred and twenty-one, and end on the thirtieth day of June, one thousand nine hundred and twenty-two, 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. 30. In all copies of the Principal Act, as amended Reprinting by this Act, hereafter printed by the Government Act. Printer, the sections, subsections, and numbered or lettered paragraphs thereof shall be renumbered or relettered so as to be in consecutive numerical or alpha- betical order throughout, and all specific references to any section, subsection, or paragraph by its number or letter in any enactment therein contained shall be amended by the substitution of the proper number or letter of the reprinted Act. INSURANCE OF UNEMPLOYED WORKERS. See LABOUR. IRRIGATION. See WATER.