Income Tax Acts Amendment Act of 1932 (23 Geo v No. 29) (Qld)

HOSPITALS-INCOME TAX. 23 GEO. V. No. 29, 1932. Income Tax Acts Amendment Act. 1415a 14. Part I. of the Schedule to the Principal Act Amendment IS amended as follows:- of Schedule. (a) Clause four is repealed and the following new clause is inserted in lieu thereof, namely : - " [4.] In order that a person may be or become a candidate for election he shall- (a) In the case of the members to be elected by the Local Authorities be a member of one of the component Local Authorities and be nominated by not less than two members thereof who are entitled to vote; (b) In the case of the members to be elected by the contributors, be nominated by not less than two contributors entitled to vote." (b) Clause eleven is amended by the inclusion therein of the following new paragraph, namely:- "In case of accident or omission the Governor in Council may appoint some fit and proper person to act as Returning Officer." INCOME TAX. An Act to Amend "The Income Tax Acts, 1924 23NGo.eo2. 9. V. to 1931," in certain particulars. THE INCOME TAX ACTS [ASSENTED TO 15TH DECEMBER, 1932. ] AMENDMENT ACT OF 1932. B E it enacte~ by the Ki~ g' s Most Excellent Majes~ Yl 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:- 1. This Act may be cited as "The Income Tax Acts Short title Amendment Act of 1932," and shall be read as one with :::struction. *" The Income Tax Acts, 1924 to 1931," herein referred to as the Principal Act. The Principal Act and this Act may collectively be cited as " The Income Tax Acts, 1924 to 1932." * 15 Geo. V. No. 34 and amending Acts, supra, pages 10945 et seq. Alphabetical Table.) F (See

14154 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, Amendments of the Principal Act. Amendment 2. Section four of the Principal Act is amended of s. 4. as follows:- (a) The definition of "Absentee" is repealed and the following definition is inserted in lieu thereof, namely:- Absentee. ""Absentee"-A person who is not domiciled in Australia or in a Territory under the authority of the Commonwealth: the term does not include a public officer of the Commonwealth or of a State who is absent from the Commonwealth in the performance of his duty." Company. (b) In the definition of " Company" the words and brackets " (whether a Queensland company or a foreign company as may be declared) " are repealed. Repeal of definition of "Foreign company." (c) The definition of " Foreign company" is repealed. Life (d) In the definition of " Life assurance company" casosmupraanncye. abfyte * r " th T e he w I o n r s d u s r " anAccet oAfc 1 t 9 o 0 f 11" 9"23th" e" waroerdasd" deads. amended Person. (e) In the definition of "Person," after the word "company" the semi-colon (;) is deleted, and a comma (,) and the words "partnership, or trustee" are inserted in lieu thereof. (f) The definition of "Queensland company" is repealed and the following definition is inserted in lieu thereof :- Queensland company. " "Queensland company "-A company the principal place of business of which is in Queensland: the term also includes a company registered or deemed to be registered under t" The Companies Act of 1931," the principal place of business of which is out of Queensland but the head or principal office of which is in Queensland, and which is declared by the Commissioner to be a Queensland company." * 14 Geo. V. No. 29, 8upra, page 10574. t 22 Geo. V. No. 53, 8upra, page 13433.

INCOME TAX. 14155 1932. Income TC!J; Acts Amendment Act. 3. Section seven of the Principal Act is amended Amendment by inserting the following proviso to the first paragraph of s. 7. thereof, namely:- " Provided that in the case of a person whose income Acc.ounting cannot be conveniently returned as for the period of perIOds. twelve months fixed by this Act, and from whom the Commissioner has, under section thirty of this Act, accepted returns made up for an accounting period substituted for such period of twelve months, income tax shall be charged, levied, collected, and paid as prescribed by this section upon the taxable income earned or derived by that person during such accounting period." 4. Section eight of the Principal Act is amended as Amendment follows :_ of s. 8. (a) In provision three the word "stock-raising," occurring after the word" viticultural," is repealed. (b) Provision eight is repealed and the following provision is inserted in lieu thereof ;- " (8.) Dividends from any company, which dividends were distributed out of profits which are exempt from income tax under this Act, or dividends from any company which has paid Queenshi,nd income tax on the profits of the company from which such dividends are paid : Provided that nothing in this provision eight shall be construed as exempting from income tax- (i.) Income derived as liquidation dividends; (ii.) The amount derived or received from dividends as an annuity or any part thereof; or Ciii.) Income referred to in subsection three of section nine of this Act; " The dividends mentioned in this provision eight, less the expenses of earning or deriving such dividends, are in this Act referred to as "income from dividends." " (c) The following additional provisions are also inserted, namely;- " (14.) Income derived by a person from the working of a mining property in Queensland principally for the purpose of obtaining gold

14156 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, or gold and copper (provided that in this case the output of gold shall not be less than forty per cent. of the total value of the output of the mine). This exemption under this provision fourteen shall operate for a period of five years commencing from the first day of July, one thousand nine hundred and twenty-nine; (15) The proceeds of the sale, transfer, or assign- ment of the lease of a mining property (other than coal mining) where the Commissioner is satisfied that the lease has been sold, assigned, or transferred by a bona fide prospector. The term "bona fide prospector" means a person who has personally carried out the whole or major part of the field work of prospecting in the particular area of such . mining property (other than coal mining), and includes any person other than a company who has contributed to the expenditure incurred in the work of prospecting and development in that area; (16) All payments received from the State Public Service Superannuation Fund under *" The Public Service Superannuation Acts, 1912 to 1927," and the Queensland Railway Superannuation Fund under t" The Railway Superannuation Acts, 1930 to 1932," except payments therefrom received by any person for services rendered in the administration thereof." Amendment 5. Section nine of the Principal Act is amended of s. 9. by deleting subsection two and inserting in lieu thereof a new subsection as follows : - Primary, " (2.) In any case where a Primary Producers' Co- CProo- doupceerarstive opera t' lve A ssoCl . a, t' IOn or P n . mary P ro d ucers ' C o-opera t' lve Associations. Federation, registered under t" The Primary Producers' Co-operative Associations Acts, 1923 to 1926," distributes (other than as dividends or interest on shares), or transfers * 3 Geo. V. No. 28 and 18 Geo. V. No. 5, supra, pages 5696 and 12026. t 21 Geo. V. No. 12 and amending Acts, supra, pages 13079 et seg. t 14 Geo. V. No. 4.> and amending Acts, supra, pages 10776 et seg.

INCOME TAX. 14157 1932. Income Tax Acts Amendment Act. to a reserve fund to provide deferred payments to producing suppliers, within nine months after the close of any income year for which such registered Association or Federation makes a return of income, any profits made during that year, such registered Association or Federation shall not be liable to pay income tax on the amount of such profits so distributed or transferred: Provided that if any part of the profits transferred to a reserve fund and exempted from income tax by virtue of the foregoing provisions of this subsection is subsequently disposed of other than for the purpose of a distribution (not being a distribution of dividends or interest on shares), the exemption allowed under this section shall be revoked and the company shall be reassessed as if such profit so disposed of had not been transferred to a reserve fund." 6. Section ten of the Principal Act is amended as Amendment follows :_ of s. 10. (a) All words from the words "'Without limiting the force or effect of any other provision of this Act," occurring at the commencement of the said section ten, up to and including the words "shall not be liable to income tax," occurring at the end of the second paragraph of subsection two, are repealed, and the following words are inserted in lieu thereof:- " [l 0.] Without limiting the force or effect of Specific sec t l · Ons f our an d seven 0 f t h I ' S A c t , assessabel ' Income cinlacsosmesesof shall . expressl • y include, as income from personalf p r e o r m sonal exertlOn- exertion (1 . ) All net gam' s or profits arI.s.mg f rom t h e sa1e liable to tax. of any real property whatsoever, whether or not arising from any business carried on by the taxpayer, arrived at by deducting from the total sale price of such real property the expenses of sale and the cost to the vendor (less any amount in respect of depreciation which the Commissioner considers just) of such real property: Provided that- (i.) Unless the taxpayer purchased or acquired such property (other than real property purchased or acquired for sale in the ordinary course of business) during the year in which the sale took place or the six years 'prior

14158 INCOl\IE TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, thereto, any profit made shall not be liable to income tax. Without in any wise limiting the meaning of the term "in the ordinary course of business," such term shall also extend and apply to any case where a person has purchased or acquired real property for sale; (ii.) If any standing crop is sold with a property, such profit as in the opinion of the Com- missioner has been derived from the sale of such crop shall be taxable irrespective of the number of years during which the property was owned by the vendor; (iii.) If a sale is subsequently cancelled or a reduction made in the sale price, an allowance may be made to the taxpayer in the assess- ment with respect to the income year in which such cancellation or reduction takes place, or a refund may be made of any tax over charged in connection with the profit made or supposed to be made, but any deposits and instalments received in connection with the sale shall be treated as income; (iv.) If a sale is cancelled or a reduction made in the sale price during the same income year in which the sale takes place, the assessment shall include any profit or gain arising out of such sale and subsequent cancellation or reduction; (v.) The cost to the vendor of property sold (other than a standing crop) which has been acquired by the vendor as a beneficiary or as a trustee in the estate of a deceased person, shall be deemed to be the cost price of such property to such deceased person, and the date on which such property was purchased or acquired by such deceased person shall be taken for the purposes of this subsection one to be the date on which such beneficiary or trustee acquired such property; (vi.) In calculating any profits under this sub- section one, the cost price shall not include any amounts which have been already allowed 'as deductions in arriving at any assessments of a taxpayer or the net income

INCOME TAX. V. No. 29, 1932. Income Tax Acts Amendment Act. be liable limiting rdinary hall also a person perty for roperty, e Cora- e sale of ve of the property led or a lowance assess- in which s place, ax over fit made deposits on with de in the year in essment ing out ation or d (other acquired a trustee shall be property date on ased or shall be ion one ciary or his sub- include already at any income of any partnership of which taxpayer was a member, or trust estate in which he was a beneficiary. (2.) All net gains or profits arising from the sale of any personal property whatsoever (except where other- wise provided in the next succeeding subsection of this section and in section eleven of this Act), whether or not arising from any business carried on by the taxpayer, arrived at by deducting from the total sale price of such personal property the 'expenses of sale and the cost to the vendor (less any amount in respect of depreciation which the Commissioner considers just) of such personal property: 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 thereto, any profit made shall not be liable to income tax." (b) Also subsection two of the said section is further amended as follows :— (i.) The following proviso is.. added to provision numbered (i.) of the said subsection as follows "Provided that if any company in the course of liquidation pays or advances any moneys or distributes any of its other assets to its shareholders (other than as payment for services rendered or for goods supplied), and such payment, advance, or distribution (wholly or in part) represents, in the opinion of the Commissioner, a distribution by way of a liquidation dividend, the amount of the money advanced or loaned or the value of any other asset distributed (or, in either case, the part thereof as determined by the Commissioner), shall be deemed to be a liquidation dividend within the meaning of this provision (i.)." (ii.) The following proviso is added to provision numbered (iii.) of the said subsection as follows :— "Provided that in the case of the sale of a business by a partnership, provision numbered (iv.) of this subsection shall be applicable to the share or interest of each member of the partnership." (iii.) Provision numbered (v.) is repealed and provisions numbered (vi.) and (vii.) are renumbered (v.) and (vi.) accordingly. 14151

14160 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (iv.) A new provision is inserted after provision now renumbered (vi.) of the said subsection, as follows :- " (vii.) In calculating any profits under this sub- section two, the cost price shall not include any amounts which have been already allowed as deductions in arriving at any assessments of a taxpayer or the net income of any partnership of which taxpayer was a member, or trust estate in which he was a beneficiary." (c) Subsection three of the said section ten is repealed and the following subsection three is inserted in lieu thereof :- ' " (3.) All net gains or profits arising or accruing to any taxpayer domiciled in Queensland from the sale of shares in any company whatsoever, and whether or not arising from any business carried on by the taxpayer: Provided that- (i.) Unless the taxpayer purchased or acquired such shares (other than shares purchased or acquired for sale in the ordinary course of business) during the year in which the sale took place or the six years prior thereto, any profit thus arising or accruing shall not be liable to income tax. Without in any wise limiting the meaning of the term "in the ordinary course of business," such term shall also extend and apply to any case where a person has purchased or acquired shares for sale; (ii.) The cost to the vendor of the shares sold which have been acquired by the vendor as a beneficiary or as a trustee in the estate of a deceased person shall be deemed to be the cost price of such shares to such deceased person, and the date on which such shares were purchased or acquired by such deceased person shall be taken for the purpose of this subsection three to be the date on which such beneficiary or trustee acquired such shares; iii.) In calculating any profits under this sub- section three, the cost price shall not include any amounts which have been already allowed as deductions in arriving at any assessments of a taxpayer or the net income

INCOME TAX. 1932. Income Tax Acts Amenament Act. ~ - - - - - -- - -- - - - - - - - - - -- - -- of any partnership of which taxpayer was a member, or trust estate in which he was a beneficiary.', (d) A new subsection four is inserted to the said section ten as follows :- " (4.) All net gains or profits arising from the sale outside Queensland of property in Queensland or of goods or articles manufactured in Queensland or produced in Queensland, or of live stock exported or sent from Queensland for sale outside Queensland." And subsections four, five, six, seven, eight, and nine are renumbered five, six, seven, eight, nine, and teil accordingly. (e) Subsection six, now renumbered seven, is amended as follows :- The provisoes numbered (i.) to (iii.) of the said subsection are repealed, and the following provisoes are inserted in lieu thereof:- "Provided that- (i.) "Value," in the case of trading stock (not being live stock), means the actual cost price or market selling value of each article of trading stock, or the price at which each article of trading stock can be replaced, at the option of the taxpayer in respect of each article; (ii.) "Value," in the case of live stock, means such value or values as may be determined from time to time by the Commissioner; (iii.) 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 an income year, but such persons shall return the numbers and values of live stock purchased during the year, and return as income the proceeds of any live stock sold by them during the year." (1) Subsection seven, now renumbered eight, is repealed and the following subsection eight is inserted in lieu thereof:- "(8.) (a) The amount by which the book value of any asset, or of the assets as a whole, of any person 14161

14162 INCO:i\1:E TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, carrying on business is increased by writing into the books or by the writing up in the books of the value of such asset or assets. (b) The excess of the amount at which any asset or the whole of the assets of any person carrying on a business is brought to account in his books of account upon acquisition over the consideration, if any, given by that person for such asset or assets: Provided that, for the purposes of this paragraph (b), where a company issues shares as the consideration or in part consideration for such asset or assets, the consideration satisfied by the issue of such shares shall be deemed not to exceed the value to which such shares are actually paid up." (g) Subsection eight, now renumbered nine, is amended by inserting after the word "redemption," where it first occurs, the words "in any manner whatsoever." Amendment 7. Section eleven of the Principal Act is amended of B. 11. as follows :_ (a) The words "any other provision" occurring in the first paragraph thereof are repealed, and the words " sections four and seven" are inserted in lieu thereof. (b) In paragraph (c) of subsection one of the said section, the words" p.aragraphs (0) and (p) " are repealed, and the words" paragraphs (n) and (0)" are inserted in lieu thereof. (c) The proviso numbered (iii.) to subsection one of the said section is repealed. (d) A new subsection is also added to the said section as follows : - "(6.) The amount of an annuity derived or received from any source whatsoever." Section 14. 8. Section fourteen of the Principal Act is repealed and the following new section is inserted in lieu thereof, namely:-. Assessment "[14.J (1.) Without limiting the force or effect of c o o f mpanies. any other provision of this Act, the following provisions shall apply in the assessment of companies : - (a) The taxable income of every Queensland company may be assessed for any income year at not less than the amount of the dividends declared by the company out of profits made during that year.

1932. INCOME TAX. Income Tax Acts Amendment Act. 14163 (b) When any Queensland company, not being a metalliferous mining company, issues any of its shares at a premium, 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 paid-up value of all such shares allotted and issued by the company, shall, for the purposes of this Act, be assessable income of the company. (c)- Assel!8ment .. of income of (i. ) If the company carrIes on m Queensland the companies. business of banking and no other business Bankin~ whatsoever, its taxable income shall be a sum compames. which bears the srome proportion to the total profits (after excluding therefrom the profits, if any, included therein and arising from income exempted under provision nine of section eight of this Act), of the company as the amount of its assets and liabilities in Queensland (not including any of the assets specified in provision nine of section eight of this Act nor liabilities to capital or reserves), bears to its total assets and liabilities (not including any of the assets specified in provision nine of section eight of this Act, nor liabilities to capital or reserves) ; (ii. ) If the taxable income of a company which InBura~e carries on in Queensland fire, accident, fidelity, compames. guarantee, or marine insurance business, and no other business whatsoever, cannot, in the opinion of the Commissioner, be otherwise satisfactorily determined pursuant to the provisions of this Act, 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 and any amount assessable under the provisions of subsection eight of section ten of this Act in respect of any assets held in Queensland;

14164 Life assurance companies. Insurance and life assurance oompanies. INCOME TAX. Income Ta,x Acts Amendment Act. 23 GEO. V. No. 29, (iii.) If the company is a life assurance company and carries on in Queensland life assurance business, and no other business whatsoever, its taxableincome shall be a sum equal to twenty- five pounds per centum of the premiums on account of ordinary Queensland business received by the company and fifteen pounds per centum of the premiums on account of industrial Queensland business received by the company, together with any profits derived from the sale of any assets in Queensland and any amount assessable under the provisions of subsection eight of section ten of this Act in respect of any assets held in Queensland, from which total sum shall be deducted any amount received as interest from the Queensland Government Loan of 1920 or any conversion thereof after deducting therefrom the expenses of earning such interest, and in estimating such expenses such amount as the Commissioner thinks just may be allowed in respect of interest paid by the company on money borrowed and invested in such loan; (iv.) If the company carries on in Queensland fire, accident, fidelity, guarantee, or marine insurance business, and life assurance business, its taxable income derived from all its fire, accident, fidelity, guarantee, or marine insur- ance business shall be separately assessed from its taxable income derived from its life assurance business. If its taxable income derived from all such fire, accident, fidelity, guarantee, or marine insurance business cannot, in the opinion of the Commissioner, be otherwise satisfactorily determined pursuant to the provisions of this Act, such taxable income shall be an amount equal to twenty-five pounds per centum of the premiums on account of such 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).

1932. INCOME TAX. - - - - - - - - - - -- - - - - - - - - - - - ~ ~ ~ ~ - Income Tax Acts Amendment Act. 14165 Its taxable income derived from its life assurance business shall be an amount equal to twenty-five pounds per centum of the premiums on account of ordinary Queensland life assurance business received by the company, and fifteen pounds per centum of the premiums on account of industrial Queensland life assurance business received by the company. The total taxable income of the company shall be the sum of the taxable income derived from all its fire, accident, fidelity, guarantee, or marine insurance business, ascertained pursuant to the provisions of this subparagraph (iv.), and the taxable income derived from its life assurance business, ascertained pursuant to the provi- sions of this subparagraph (iv.), together with any profits derived from the sale of any assets in Queensland, and any amount assessable under the provisions of subsection eight of section ten of this Act in respect of any assets held in Queensland, from which total sum shall be deducted any amount received as interest from the Queensland Government Loan of 1920 or any conversion thereof, after deducting therefrom the expenses of earning such interest, and in estimating such expenses such amount as the Commissioner thinks just may be allowed in respect of interest paid by the company on money borrowed and invested in such Loan. (v.) If the taxable income of any company not Other . specified in subparagraphs (i.), (ii.), (iii.), or companIes. (iv.) of this paragraph cannot, in the opinion of the Commissioner, be otherwise satis- factorily determined pursuant to the pro- visions of this Act, the taxable income of such company may be assessed by the Commissioner at a sum which he considers reasonable, being not less than two pounds ten shillings per centum and not greater than twenty pounds per centum of the sum of the total sales made in Queensland and

14166 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO, V. No. 29, the total revenue (if any) derived In Queensland; or, if there are no sales, at a sum which he considers reasonable, being not less than two pounds ten shillings per centum and not greater than twenty pounds per centum of the total revenue derived from Queensland, together with any profit made on the sale of any assets held in Queensland, and any amount assessable under the provisions of subsection eight of section ten of this Act in respect of any assets held in Queensland: Provided that in calculating the taxable income of companies which carry on in Queensland the business of mining, the following rules shall be applied :- (i.) The profits made by the company shall be taken to be applied, in the first place, in recoupment of the cost actually incurred by the company in respect of labour or material employed in developing the mine (including expenditure on housing for employees of the company, roads, dams, and community services), and any expendi- ture on plant used for the preparation or treatment of gold, silver, base metals, rare minerals, or oil for the market, and, in the second place in recoupment of three-fourths of the cost of any machinery erected for raising ores and other materials from the mine: Provided that where any plant or machinery in respect of which a deduction is allowable under this paragraph is acquired from one person by another person, the person acquiring that plant or machinery shall not be entitled to any greater deduc- tion under this paragraph than that which would have been allowed to the person from whom it was acquired if he had retained it. Where, however, the person acquiring the plant or machinery is not a company in which the transferor is substan- tially interested as a shareholder, or is not a company the shareholding interests

INCOME TAX. 1932. Income Ta;]; Acts Amendment Act. of whlch are in substantially the same hands as those of the company from which it was acquired, and the Commissioner is satisfied that the circumstances are such that a deduction under this paragraph based upon the actual amount of the consideration given should be allowed, the deduction calculated on that basis may be allowed. (ii. ) So much of the profits as is shown to thf' satisfaction of the Commissioner to have been applied during the income year for the purposes specified in rule (i.) hereof shall be deducted from the income of the company for t,hat year, and shall be exempt from income tax; (l:,'i.) If the company carries on other business besides the business of mining, the Commis- sioner may require the company to submit to him accounts verified in like manner as the returns hereby prescribed, and showing separately the transactions of the company with respect to its mines and with respect to its other business, and the company shall be entitled to exemption from income tax upon so much of its profits as is shown to the satisfaction of the Commissioner to have been applied during the income year for the purpose.s specified in rule (i.) hereof; (iv.) When a mining company is reconstructed and it is shown to the satisfaction of the Commissioner that after reconstruction the company is to all intents and purposes the same as before reconstruction, such recon- structed company shall be entitled to the same exemption from income tax as the company was entitled to before reconstruction; Cv.) The decision of the Commissioner in every case arising under this proviso shall be final and conclusive. (d) Notwithstanding any other provision in this Act, when any business which is carried on in the State 14167

14:168 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (other than a business to which subparagraphs (i.), (ii.), (iii.), or (iv.) of paragraph (c) of this subsection one or section seventeen of this Act apply)- (a) Is controlled principally by persons not domiciled in Queensland or by a foreign company; or (b) Is carried on by a company, a majority of the shares in which is held by or on behalf of- (i.) A foreign company; or (ii.) Another company which carries on business outside the State; or (iii.) Persons who hold a majority of the shares in a company such as is referred to in headings (i.) and (ii.) of this subparagraph (b); or (c) Is carried on by a Queensland company which holds, or on behalf of which other persons hold, a majority of the shares in a foreign company or a company carrying on business outside the State, and it appears to the Commissioner that on account of these circumstances, or on account of any other circum- stances, the course of the business can be so arranged, and is so arranged, that the business produces either no taxable income or less than the ordinary taxable income which might be expected to arise from that business, the person or company carrying on the business in the State shall be assessable and chargeable with income tax on a taxable income equal to an amount which the Commissioner considers reasonable, being not less than two pounds ten shillings per centum and not greater than twenty pounds per centum of the sum of the total sales made in Queensland and the total revenue (if any) derived in Queensland; or, if there are no sales, at a sum which he considers reasonable, being not less than two pounds ten shillings per centum and not greater than twenty pounds per centum of the total revenue derived from Queensland, together with any profit made on the sale of any assets held in Queensland, and any amount assessable under the provisions of subsection eight of section ten of this Act in respect of any assets held in Queensland.

INCOME TAX. 1932. Income Tax Acts Amendment Act. For the purposes of this paragraph (d), the following provisions shall apply:- (i.) Shares held by or in the names of persons who are relatives by blood, marriage, or adoption may be treated by the Commissioner as if they were held by anyone of such persons; and (ii.) The term " foreign company" means a company the head or principal office or the principal place of business of which is out of Queensland. (2.) Notwithstanding anything contained in this Act, where any person (referred to in this section as "the insured") enters into a contract of insurance or guarantee against loss, damage, or risk of any kind whatever in respect of any property whatsoever situated or produced in Queensland (not being a contract of life insurance)- (a) With any person not resident in Queensland (referred to in this section as "the insurer") who is not carrying on in Queensland an insurance business either in a principal office or by means of a branch; or (b) With a person in Queensland acting on behalf of the insurer, any premium paid or payable under that contract shall be deemed to be assessable income derived from sources in Queensland by the insurer. The insurer shall be deemed, in respect of the premiums, to have derived in any year a taxable income equal to twenty-five pounds per centum of the total amount of premiums paid or payable during that year to the insurer or to the person in Queensland acting on behalf of the insurer: Provided that, where the actual profit or loss derived or made by the insurer in respect of those premiums is established to the satisfaction of the Commissioner, the taxable income of the insurer or the amount of the loss so made by him shall, subject to the other provisions of this Act, be calculated by reference to receipts and expenditure which were taken into account in calculating that profit or loss. The insured, and any person in Queensland acting on behalf of the insurer, shall be the agents of the insurer, and shall be jointly and severally liable as such for all G 14169

14170 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, purposes of this Act, and if either of those persons pays or credits any amount in respect of that contract to the insurer before arrangements have been made to the satisfaction of the Commissioner for the payment of any income tax which has been or may be assessed under . this section in respect of that amount, the person paying or crediting that amount shall be personally liable for payment of so much of the income tax, if any, as is or may become payable by the insurer on twenty-five pounds per centum of that amount." Aofms.en1d5m. ent as fo9l.loSwecst: i-on fif.teen of the Principal Act is amended (a) (i.) In subsection three the words" but if the" are repealed and the words and commas "but, in either case, if the" are inserted in lieu thereof. (ii.) The following is inserted as a proviso to the first paragraph of the said subsection three :- " Provided that, for the purposes of this subsection, in arriving at the total profits of any income year, effect shall be given to the provisions of subsection three of section nineteen of this Act; also, any amounts charged or written off during such income year in any appropria- tion, reserve, suspense, or similar account and which are allowed as deductions from the assessable income of that income year must be included in the deductions in arriving at such profits of such income year." (b) The following additional paragraph (c) is added to subsection four of the said section fifteen :- " (c) If any amounts are advanced or assets are distributed by any company (not being a company in course of liquidation) to any of its shareholders by way of advances or loans to such shareholders, and the amounts advanced or assets distributed represent, in the opinion of the Commissioner, a distribution of income wholly or in part, the amount advanced or the value of the assets distributed (or such part thereof as the Com- missioner determines) to such shareholders shall be a declaration of dividends and a distribution of dividends within the meaning of this section, and shal1 be treated as a dividend from a company in the hands of the recipient.' ,

INCOME TAX. 14171 1932. Income Tax Acts Amendment Act. 10. Sections sixteen and 16A of the Principal Act Amendment are am.ended as follows:- of ss. 16 and 16A. (a) Subsection one is repealed and a new subsection one is inserted in lieu thereof:- " (1.) When an absentee or person absent from Assessment oQ f ueaencsolmanpdan( yherreeginl . stteerrem d e ' md" Q t.hueeepnrsi 1 nacni d paolr") c,abrryym . mgeaonns ooafrbsapebensrest onfnrteosems business therein or by means of any person in Quee:r;sland Q ueensIand (h. erel' n termed " t he ag"ent)- cbaursriynmesgs ionn . , Queensland (a) Earns or derIves any lllcome, whether such by agent. income is received by the agent personally or is received or is receivable by the principal directly or otherwise; or (b) Sells or disposes of any property, whether such property is in Queensland or is by the contract to be brought into Queensland, and whether the contract· is made by the agent in Queensland or by or on behalf of the principal out of Queensland, and whether the moneys arising therefrom are paid to or received by the principal directly or otherwise, the income referred'to in paragraph (a) hereof and the moneys arising from the sale or disposition referred to in paragraph ( b ) hereof shall be deemed to be assessable income accruing to the principal from a business carried on by him in Queensland. If such income cannot, in the opinion of the Commissioner, be satisfactorily determined, the Commissioner may make an assessment of the taxable income of the principal as provided by section thirty-four of this Act as if the principal were the person referred to in the said section thirty-four." (b) Section 16A is now renumbered as subsection three of section sixteen of the Principal Act. The following amendments are made in the said subsection now renumbered three. (i.) In paragraph (a) the words" the last preceding" are repealed and the word "this" is inserted in lieu .thereof; also the words "ordinarily a resident of" are repealed and the words "domiciled in" are inserted in lieu thereof.

14172 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (ii.) In paragraph (b) the words" a foreign company or" are repealed and the word "an " is inserted in lieu thereof; also the words " the last preceding" are repealed and the word "this" is inserted in lieu thereof. (iii.) In the third last paragraph' of the said sub- section, now renumbered three, the words "ordinarily a resident of" are repealed and the words " domiciled in" are inserted in lieu thereof; also the words "section .sixteen " are repealed and the words "subsection one of this section" are inserted in lieu thereof; also the words "twelve pounds ten shillings," where they twice occur, are repealed and the words "twenty pounds" are respectively inserted in lieu thereof. (iv.) In the last paragraph the words" ordinarily a resident of" are repealed and the words "domiciled in" are inserted in lieu thereof. A (If m s e . n 1 d 7 m . en t amen 1 d 1 ed . Saesctfioonlloswevse:n- teen of the Principal Act is (a) In the :first paragraph of subsection one the words "a foreign company or" are repealed and the word "any" is inserted in lieu thereof; also the words "company or", "by itself or", "its or ", and " to it or " are repealed. The second paragraph is repealed and the following paragraph is inserted in lieu thereof, namely:- " Such person, agent, or representative shall be assessed theron, and the taxable income earned or derived therefrom shall, if such income cannot in the opinion of the Commissioner be otherwise satisfactorily determined, be assessed at an amount equal to seven pounds ten shillings per centum of the amount so payable as aforesaid, together with any other taxable income earned or derived by such person from sources in Queensland." (b) In subsection two the words "company or" are repealed. (c) In subsection three the words "com,pany or" are repealed; also the word "company," secondly. occurring in the subsection, is repealed.

INCOME TAX. 14173 1932. Income Tax Acts Amendment Act. 12. Section eighteen of the Principal Act is repealed Amendment and the following new section is inserted in lieu thereof, of s. 18. namely:- "[18.] (1.) Every corporation, company, society, Compani~ s assoC.latI'On, I.nst'ItUt·IOn, publ· 10 aut hor' Ity, and publ 1 ' 0 aauntdhopruibtileIcs trust body in Queensland, or trading in Queensland by liable to pay whatsoever means (in this section collectively referred to t: ' : e~ e~ t as the company) shall pav income tax on interest paid payable to or credited -in respect of debentures or bonds payable to taxpayers. bearer, the names and addresses of the holders of which are not supplied to the Commissioner by the company, as if the total amount so paid or credited were the income of one individual: Provided that- (i.) The company shall be entitled to deduct and retain from the interest payable to any person who is a holder of debentures or bonds payable to bearer an amount which bears the same proportion to the amount paid by it as the interest payable to that person bears to the total interest payable in respect of those debentures or bonds; (ii.) Where the Commissioner is satisfied that the holder of debentures or bonds payable to bearer is a person domiciled in Queensland and who is not liable to furnish a return, the Commissioner may refund to that person the amount of the tax paid by such company in respect of the debentures or bonds of that person; (iii.) The company, notwithstanding any contract, agreement, or arrangement entered into by it, may, with the approval of the Commis- sioner, charge pro rata the amount of the tax actually paid by it against those persons to whom such interest has been paid or credited. (2.) vVhere interest is payable to a person who is Interest not . dom . iciled in Queensland, the company or person apapyearbsloentonot paymg It shall pay to the Commissioner income tax on domiciled in the amount, together with super tax, and may deduct Queensland. the amount of the tax thereon from moneys (if any) _.... ~ . due and payable by such company or person to such person not domiciled in Queensland.

14174 INCOME TAX. Income Tam .Acts Amendment Act. 23 GEO. V. No. 29, In any case the Commissioner shall have the same powers of recovery as if such tax were tax levied on the income of the payer of such interest. Credits and (3.) Where any person, to whom the interest rreesfupnecdts o in f referred to in this section has been paid, includes such tax on interest in his return of income, the amount of the tax ainssteersesestd or the proportionate amount of the tax, as the case may under this be, paid pursuant to the provisions of subsection one of section. this section, or the amount of the tax paid, pursuant to the provisions of subsection two of this section, shall be credited to the tax payable in respect of such interest by the person receiving such interest; and in any case, where such amount or such proportionate amount of the tax, as the case may be, or such amount of the tax, paid by the company or person paying such interest, is greater than the amount of tax payable in respect of such interest by the person receiving such interest, a refund of the excess of such amount or such propor- tionate amount of the tax, as the case may be, or of the excess of such amount of the tax, paid by the company or person paying such interest, may be made to the person receiving such interest, or such excess may be credited to any other income tax payable by the person receiving such interest under this Act accordingly: Provided that- (a) Where the company or person paying such interest does not deduct the amount of the tax paid by such company or person from moneys due and payable by such company or person to the person receiving such interest, the provisions of this subsection three shall not apply; (b) In any case where the company or person paying such interest pays the tax in respect of such interest but does not deduct the amount of the tax paid thereon from moneys due and payable by such company or person to the person receiving such interest, and such lastmentioned person includes such interest in his return of income and pays tax (if any) thereon, a refund of the amount of the tax so paid by such company or person in respect of such interest may be made to such company or person, or such

INCOME TAX. 14175 1932. Income Tax Acts Amendment Act. amount of the tax so paid may be credited to any income tax payable by such company or person under this Act accordingly." 13. Section nineteen of the Principal Act is Section 19. repealed and the following new section nineteen is inserted in lieu thereof, namely:- "[19.J (1.) In calculating the taxable income of a Deductions. taxpayer, the total assessable income earned in or derived by the taxpayer in or from all sources in Queensland shall be taken as a basis. From such total assessable income the following deductions shall be made:- (a) All losses and outgoings (including commission, Losse~ and dI· scoun t , t rave 11 m " g expenses, m" terest and outgoings. expenses, and not being in the nature of losses. and outgoings of capital), a0-tually incurred in Queensland in earning or deriving the assessable income: Provided that- (i.) For the purposes of this paragraph, the amount of interest actually incurred in Queensland in earning 0:' deriving the assessable income shall be deemed to be a sum which bears the same proportion to the total interest incurred by the taxpayer during the income year as the value at the end of such income year of his assets (not being shares in companies or securities of the kind mentioned in provision nine of section eight of this Act), which were used in earning or deriving the assessable income of the taxpayer bears to the value at the end of such income year of his total assets, and no sum on account of interest shall be allowed as a deduction beyond the amount so ascertained. "Total assets" in this paragraph shall not include any assets used by a taxpayer (other than a company), exclusively for his private purposes. The provisions of this proviso (i.) as aforesaid shall be deemed to have been inserted in the Principal Act as and from the first day of July, one thousand nine hundred and twenty-three;

.14176 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, Rates and taxes. (ii.) Where a company carries on in Queensland the business of insurance (other than life insurance), and reinsures risks with a person or company carrying on a similar business but not in Queensland, the company carrying on business in Queens- land shall be entitled to deduct so much of the premiums received on those risks as is credited or paid to that person or company and on which tax as provided by section thirty-nine of this Act has been paid. (b) All rates and taxes under any Act of the Parliament of Queensland except under this Act, *" The Stamp Acts, 1894 to 1930 " (other than the stamp duty on receipts and cheques), t" The Gift Duty Act of 1926," t" The Succes- sion and Probate Duties Acts, 1892 to 1931," and §" The Racecourses Acts, 1923 to 1930" (other than the tax prescribed in section three of such Act) and any land tax in respectofland situated in Queensland under any Act of the Parliament of the Commonwealth actually paid by him on his own behalf during the income year, except so much of the land tax so paid by him as is allowed as a deduction under section twenty-two of this Act. Notwithstanding anything contained in the Principal Act, the above part of paragraph (b) (being the words from and including the words "All rates" to and including the words "this Act") shall be deemed to have been inserted in the Principal Act as and from the first day of July, one thousand nine hundred and twenty-three, and the Principal Act as amended by II"The Income Tax Acts Amendment Act of 1932" shall be read and construed accordingly: Provided that in any case where any person or persons pays or pay any rates and * 58 Vie. No. 8 and. amending Acts, supra, p:1ges 8939 et seq. Alphabetical Table). t 17 Geo. V. No. 23, supra, page 11569. t 56 Vie. No. 13 and amending Acts, supra, pageq 8939 et (See Alphabetical Table). § 14 Geo. V. No. 23 and ameniing Acts, supra, pages lO526 et seq. 11 23 Geo. V. No. 29 (this Act). (See seq.

1932. INCOME TAX. Income Tax Acts Amendment Act. 14177 taxes allowable as deductions pursuant to this paragraph (b), and any land tax in respect of his or their individual interest in a partnership, such rates, taxes, and land tax being in respect of land the subject of the partnership, and where for the purposes of section twenty-four of this Act-· (i.) The whole of the income of the partnership which is derived from such land is assess- able in respect of one person only as if sucp. person received the total income of such partnership comprised of himself and the person or persons first abovementioned ; or (ii.) Any person is assessable in respect of that part of the income of the partnershi.;J derived from such land as is represented by the shares of himself and any other member or members of such partnership being the person or persons first above- mentioned, then the person so assessable for the purposes of section twenty-four of this Act shall be deemed to have himself paid such rates, taxes, and land tax paid by the person or persons first abovementioned, and such person so assessable shall for the purposes of this paragraph be entitled to be allowed such sums so paid as a deduction: Provided further that when a taxpayer receives a refund of the whole or any part of the rates and taxes allowed as deductions under this paragraph, the amount of such refund shall be brought to account as income in the income year in which the refund is received, notwithstanding that such rates and taxes, to the extent that they have been refunded, may have been wrongly levied and collected in the first place by the respective taxing authorities. (c) In Q uetehnes 1 acna d se wo h fosae tnaex t paI · ynecromdeom d icoielsed noin t O wm ~ io i f l eth d , r ea e rn n . , d exceed six hundred and forty pounds- The amount of sixty pounds in respect of each child under the age of sixteen years on the

14178 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, first day of the year preceding the year for which the tax is payable, and in respect of any invalid child of such taxpayer over the age of sixteen years, if either such child or such invalid child, as the case may be, is wholly maintained by him. The amount of seventy-two pounds in respect of the wife of such taxpayer, and, in the case of a widower, such other female relative as may reside with him for the purpose of caring for any child of his who is under sixteen years of age, or for any invalid child of such taxpayer over sixteen years of age if either his wife or female relative, as the case may be, is wholly maintained by him. The amount of sixty pounds in respect of the mother of such taxpayer if she resides in Queensland and is wholly maintained by him: Provided that-- (i.) If the net income of a taxpayer domiciled in Queensland exceeds six hundred and forty pounds, each of the allowances of sixty pounds or part thereof to which he would otherwise be entitled shall be reduced by one pound for each six pounds- by which his net income exceeds six hundred and forty pounds. (ii.) If the net income of a taxpayer domiciled in Queensland exceeds six hundred and forty pounds, the allowance of seventy-two pounds or part thereof to which he would otherwise be entitled shall be reduced by one pound for each five pounds by which his net income exceeds six hundred and forty pounds. (iii.) If any dependent mentioned in this para- graph (c) is in receipt of any net income whatsoever, the allowance with respect to such dependent shall be reduced by the amount of such net income. (1:'/).) In arriving at the net income of the tax- payer for the purposes of any of the pro- visions of this paragraph (c), the amount

INCOME TAX. 14179 1932. Income Tax Acts Amendment Act. of any deduction to which the taxpayer may be entitled under any of such provisions shall be disregarded; also there shall be taken into account the amount of the taxpayer's income from dividends. (d) Payments not exceeding one hundred pounds S.uperannull.. in the aggregate made for' the personal ~ ~ ~ funds. benefit of a taxpayer domiciled in Queens- land or his wife or children during the income year of such taxpayer who is in receipt of salary, wages, allowances, stipends, or annuity, or whose net income (disregarding the amount of any deduction under this paragraph) does not exceed eight hundred pounds, to any superannuation, sustentation, or widows or orphans fund established in Australia or any society duly registered under *" The Friendly Societies Act of 1913." The limit of one hundred pounds shall not apply to payments made to the funds under t" The Public Service Superannuation Acts, 1912 to 1927," or to t" The Railway Superannuation Acts, 1930 to 1932," or to any Acts amending or altering either of the said Acts. (e) Every premium or sum paid by a taxpayer Insurance. domiciled in Queensland during the income year on insurance on his own life or that of his wife or children or for a deferred annuity or other like provision for his wife or children, or in respect of any fidelity or guarantee or bond which the taxpayer is required to provide in the exercise of his business: Provided that in no case shall any' deduction be allowed under this paragraph beyond the sum of fifty pounds in the aggregate. er) The amount which represents the repayment Annuitants. of capital invested by an annuitant in an annuity in his own favour or the part of the * 4 Geo. V. No. 13. supra, page. 5991. t 3 Geo. V. No. 28 and 18 Geo. V. No. 5, supra, pages 5696 and 12026. t 21 Geo. V. No. 12 and amending Acts, supra, pages 13079 et seq.

14180 Repairs. Deprecia- tion. INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, annuity ,received by an annuitant which represents purchase money of any property sold by him which is being paid for in the shape of such annuity in his own favour. (g) Sums expended by the taxpayer during the income year for repairs to or on that part of any property occupied for the purpose of producing income, or from which income is derived or is deemed to have been derived, and for the repair of machinery, imple- ments, utensils, rolling-stock, and articles used by the taxpayer for the purpose of earning or deriving income. (h) Such sum as the Commissioner thinks just and reasonable as representing the diminu- tion in value per centum to the owner by reason of depreciation by wear and tear, during the income year, of any building, machinery, implements, utensils, rolling-stock, and articles used by the taxpayer or his tenant for the purpose of earning or deriving income, and also by reason of depreciation by wear and tear of any bore, well, dam, or other improvement for the conservation of water, or of any fence; or, at the option of the taxpayer, such sum as the Commis- sioner thinks just and reasonable as repre- senting the diminution in value per centum during the income year of any building, machinery, implements, utensils, rolling-stock, and articles used by the taxpayer or his tenant for the purpose· of earning or deriving income, and also by reason of depreciation of any bore, well, dam, or other improvement for the conservation of water, or of any fence: Provided that- (i.) Where a deduction has been allowed under paragraph (g) of this subsection, the Com- missioner shall take into consideration the sum allowed under that paragraph in determining the sum to be allowed under this paragraph; (ii.) In calculating the deduction to be allowed under this paragraph, the estimated life

INCOME TAX. 1932. Income Tax Acts Amendment Act. of the unit of property in respect of which the deduction is allowable shall be ascer- tained for the purpose of fixing the diminution in value per centum of that property. The estimated life of the unit of property shall be determined by the Commissioner and shall be his estimate of its reasonably effective life, assuming it is maintained in good order and condition; (iii.) In any case in which any building, machinery, implements, utensils, rolling- stock, improvements for the conservation of water, and any fences and articles are acquired from one person by another person for valuable consideration of a value in excess of the value to which the cost price of the same had been reduced by the amount of the deduction in respect of depreciation allowed by the Commissioner under this paragraph (h), the person acquiring the same shall not be entitled to any greater deduction under this paragraph (h) than that which would have been allowed to the person from whom they were acquired if he had retained them. Where, however, the Commissioner is satisfied that the circumstances are such that a deduction under this paragraph (h) based upon the actual amount of the consideration given should be allowed, the deduction calculated on that basis may be allowed; (iv.) Where a person, from whose assessable income a deduction has been made under this paragraph, sells any property in respect of the depreciation of which the deduction was made, there shall be deducted from his assessable income of the year in which the sale was effected the amount (if any) by which the sale price is less than the depreciated value of the property, as at the time of sale, as determined in accord- ance with this paragraph. If the sale price exceeds that depreciated value, the amount of the excess, to the extent of the total sum of the amounts allowed by the Com- missioner in any previous assessments and 14181

14182 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, in any subsequent assessments in respect of the depreciation of the property, shall be brought to account as income of that year; but notwithstanding anything hereinbefore contained, this paragraph shall not apply in any case in which the taxpayer is assessed on the same transaction under the provisions of sections ten or eleven of this Act, nor to permit the deduction of any amount which is allowed as a deduction under the provisions of section twenty-one of this Act; (v.) If no separate value is allocated to any property to which this paragraph applies when sold with other assets, or if such property is disposed of otherwise than by sale, the Commissioner shall determine the amount which shall, for the purposes of proviso (iv.), be deemed to be the selling price of that property ; (vi.) In calculating the deduction under this paragraph in respect of fences, the amount of the value of the fences by reference to which the deduction should be calculated shall not include the amount or the sum of the amounts allowable or allowed as deductions under paragraph (u) of subsec- tion one of this section in the assessments of the taxpayer; (vii.) In calculating the deduction under this paragraph in respect of plant and machinery the amount of the value of the plant and machinery by reference to which the deduction should be calculated shall not include the amount or the sum of the amounts allowable or allowed as deductions under rule (ii.) of the proviso to paragraph (c) of subsection one of section fourteen of this Act in respect of such plant and machinery; (viii.) Where a taxpayer has in respect of his assessment for any income year exercised his option under this paragraph he shall not, except with the consent of the Commissioner, have the right to make a

INCOME TAX. 14183 1932. Income Tax Acts Amendment Act. further option in respect of that assessment or in respect of his assessment for any subsequent income year; (ix.) In ascertaining the sum to be allowed under the second provision of this paragraph (h), the Commissioner shall determine the estimated remaining life of the particular property under consideration and shall, subject to the foregoing provisoes, allow as a deduction in each year of the estimated remaining life the sum obtained by dividing the cost of the property by the number of years of its estimated total life ; (x.) Where in any business, income is set apart by the taxpayer to cover depreciation under any of the matters or things mentioned in this paragraph (h), the amount so set apart for the income year may, subject to the approval of the Commissioner, be the sum to be d,educted in respect of such depreciation. (i) Amounts expended in legal expenses incurred Legal in collecting debts owing to persons in expenses. business or for preparation of a lease or in connection with any award relating to the taxpayer's business, or incurred in drawing up agreements for the sale or purchase of goods or service agreements with employees. (j) In the case of a member of Parliament the Expenses of amoun • t of one hundred pound . s by way of P me ar ~ l b Ia e m rs enotf. travellmg expenses, and also the actual expenses of their own elections incurred by members of Parliament of the State or of the Commonwealth, or by members of a Local Authority, under the Local Authorities Acts or *" The City of Brisbane Acts, 1924 to 1930," but not exceeding seventy-five pounds for anyone election. (k) Contributions in money or. kind made directly Charities. to any charitable institution in Queensland approved by the Commissioner: Provided that the value of the contribution, if in kind, shall be verified to the satisfaction of the Commissioner. * 15 Geo. V. No. 32, supra, pages 11140 et Beg and amending Acts.

14184 Patriotic contribu. tions. Union sub. scriptions. Premiums on leases. INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (l) Contributions in money or kind made to the Department of Repatriation or to any public authority for the purpose of being handed over to the Department of Repatriation, and contributions in money or kind made to the Returned Sailors and Soldiers' Imperial League of Australia: Provided that the value of the contribution, if in kind, shall be verified to the satisfaction of the Commissioner. (m) Annual subscriptions in money to any bona fide industrial union, trade or professional association, or fees paid by professional practitioners to recognised professional insti- tutes in Australia, or contributions to any agricultural society approved by the Commis- sioner, but not exceeding ten guineas to each respectively. (n) A proportion of the amount paid by any taxpayer (being the lessee under a lease or the assignee or transferee of a lease) as a premium fine or foregift, or consideration in the nature of a premium fine or foregift for a lease, or a renewal of a lease, or of an amount for the assignment or transfer of a lease of land, premises, or machinery used for earning or deriving income, or a proportion of the amount paid by a taxpayer for the cancellation of a lease of land, premises, or machinery owned by him, arrived at by distributing the sum so paid proportionately over the unexpired period of the lease at the date the amount was so paid: Provided that- (i.) The taxpayer proves to the satisfaction of the Commissioner that he has paid such an amount, and that the Commissioner is satisfied that the transaction was entered into in good faith and not for the purpose of evading or avoiding taxation; (ii.) Where the transferor of a lease has been assessed on the market price of the lease in accordance with the provisions of section

INCOME TAX. 14185 1932. Income Tax Acts Amendment Act. twelve of this Act, the transferee, for the purposes of proviso (i.), shall be deemed to have paid such an amount for the lease; \ iii.) If the taxpayer subsequently sells, assigns, transfers, or cancels such lease the allowance shall cease; (iv.) The deduction shall not be made with respect to the purchase of a lease granted by the Crown in cases where such purchase was made before the first day of July, one thousand nine hundred and eighteen; (v.) Where the taxpayer proves to the satis- faction of the Commissioner that he has paid such an amount, but dies before the expiration of the lease, the deduction under this paragraph shall be allowed to the beneficiary or trustee beneficially entitled to the income therefrom. (0) The amount paid for the purchase of the Goodwill of goodwill of an hotel property distributed hotel. proportionately over a period of five years from the date of purchase: Provided that- (i.) 'Vhere the transferor of the goodwill of an hotel property has been assessed on the market price of the goodwill of such hotel property in accordance with the provisions of section twelve of this Act, the transferee, for the purposes of this paragraph, shall be deemed to have paid such an amount for the goodwill of such hotel property; (ii.) If the taxpayer subsequently grants a lease or sells the goodwill of such property before such· period expires, the allowance shall cease; (iii.) If the taxpayer dies before the expiration of such period of five years, the dedubtion under this paragraph shall be allowed to the beneficiary or trustee beneficially entitled to the income from such hotel property; H

14186 Benefits to employees. Educating children. INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (iv.) The provisions of this paragraph (0) shall not apply to the amount paid for the goodwill of an hotel property where such goodwill was purchased after the passing of *" The Finance Act of 1930." (p) So much of the assessable income as is set aside or paid by an employer of labour as or to a fund to provide individual personal benefits, pensions, or retiring allowances for employees: Provided that- (i.) A deduction shall not be allowed under this paragraph (p) unless the Commissioner is satisfied that the fund has been established, that the rights of the employees to receive the benefits, pensions, or retiring allowances have been fully secured, that in the event of the winding-up of such fund the balance thereof is to be distributed solely amongst the persons beneficially entitled thereto, and that the employees have reasonable representation on the committee, executive, or other body appointed to control the fund; (ii.) If the Commissioner is satisfied that any part of the assessable income of any person (whether an employer of labour or not) has been so set aside or paid by that person to provide individual personal benefits, pensions, or retiring allowances to employees in any business or class of business, the person setting aside or paying the sum shall be entitled to deduct it. (q) Expenses actually incurred by a taxpayer in educating his children under sixteen years of age (not exceeding fifty pounds for each child during the income year) 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. * 21 Geo. V. No. 19, supra, page 13178.

INCOME TAX. 14187 1932. lncome Tax Acts Amendment Act. (r) So much of the assessable income as is paid C~ ll~ in in application or allotment moneys or in ~ e~ ~ es. calls on shares in a mining company or syndicate carrying on mining operations in Queensland for gold, silver, base metals, rare minerals, or oil, or in any company or syndicate carrying on in Queensland afforestation as its principal business. (8) The sum actually expended by the taxpayer Food, during the income year for food and for rent & uar~ ers, of quarters provided for an employee (other e::ploo;ees. than a member of the taxpayer's own family under the age of sixteen years) who is employed exclusively in a business of the taxpayer: Provided that, if the taxpayer is unable to state the sum actually expended on such food, such sum may be deducted as the Commissioner thinks just. (t) The annual sum necessary to recoup the Improve- expenditure agreed to be made on improve- l m ea e s n e t h s o o ld n s. ments on land by a lessee who has no tenant rights in the improvements, and on which the landlord is assessable under subsection five of section eleven of this Act, or the annual sum necessary to recoup the expenditure agreed to be made by the owner of a franchise issued under *" The Tolls on Privately Constructed Road Traffic Facilities Act of 1931." The deduction under this paragraph shall be ascertained by dividing the amount (not exceeding the sum agreed upon) expended on the improvements by the lessee or owner of the franchise by the number of years in the unexpired period of the lease or the franchise at the date the improvements were effected; Provided that this deduction shall not be withheld where the landlord is exempt from taxation under section eight of this Act; and provided further that if the lessee subsequently sells the lease he shall be entitled to a deduction from the proceeds of * 22 Geo. V. No. 14, supra, page 13916.

14188 Expenditure on wire netting fences to protect land against vermin. University. INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, such sale of the balance of such expenditure to which he was still entitled pursuant to the provisions of this paragraph. (u) In the case of any person who proves to the Commissioner that he is carrying on agri- cultural or pastoral pursuits in a district which is subject to the ravages of animal pests, and has expended money for or entered into a contract or undertaking with the Government or an authority of the State or of the Commonwealth for· the purchase of wire or wire netting for use in the construction of a wire or wire netting fence to prevent animal pests entering upon the land used by him in the production of assessable income- (i.) In the assessment of the income derived by him in the year in which he places the wire or wire netting in position on the fence, such sum as the Commissioner is satisfied has been expended by such person in the purchase of the wire or wire netting so placed and in placing it in position on the fence; or (ii.) In the case of a person who purchased the wire or wire netting under a contract or undertaking with the Government or an authority of the State or of the Common- wealth, the amount paid by him in respect of that wire or wire netting in the income year as purchase money or interest thereon and the amount (if any) expended by him in that year in placing the wire or wire netting in position on the fence. (v) Gifts of one pound and upwards made out of the assessable income derived during the year in which the gifts are made to the University of Queensland or to any college affiliated therewith. For the purpose of this paragraph- "Affiliated college" means a residential educational institution affiliated under statutory provisions with the University of Queensland;

INCOME TAX. ~ ~ - ~ . ~ - - - - - - -- - - 1!):12. Income Tax A.cts A.mendment Act. 1418!} " Gift" means a gift in the form of money or a gift in kind when the Commissioner is satisfied that the donor has used part of his assessable income of the year for the acquisition of such gift. Notwithstanding anything contained in the Principal Act, this paragraph (v) shall be deemed to have been inserted in the Principal Act as and from the first day of July, one thousand nine hundred and twenty-six, and the Principal Act as amended by *" The Income Tax Acts A mendment Act of 1932 " shall be read and construed accordingly. (w) Such part of the income of a taxpayer Medical domiciled in Queensland whose net income expenses. does not exceed nine hundred pounds-- (i.) As is paid by him to any legally qualified medical practitioner, public or private hospital, nurse, or chemist in respect of any illness of or operation upon the tax- payer, or his wife, or any of his children under the age of twenty-one years; and (ii.) Not exceeding in the aggregate the sum of twenty pounds as is paid by him to any undertaker for funeral and burial expenses arising out of the death of the wife of the taxpayer or of any of his children under the age of twenty-one years. In arriving at the net income of the taxpayer for the purposes of any of the provisions of this paragraph (w) the amount of any deduction under paragraph (c) of this subsection or this paragraph (w) shall be disregarded, and there shall be taken into. account the amount of a taxpayer's income from dividends. (x) In the case of a person carrying on primary Eradication production on any land, expenditure incurred of pests. by the taxpayer in the income year in any of the following operations :- (i.) Eradication or extermination of animal or vegetable pests from the land; * 23 Geo. V. No. 29 (this Act).

14190 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (ii.) The destruction and removal of timber, scrub, or undergrowth indigenous to the land; the destruction of weed or plant growth detrimental to the land; the preparation of the land for agriculture; ploughing and grassing the land for grazing purposes and the draining of swampy or low-lying lands, where that operation improves the agricultural or grazing value of the land so drained. For the purposes of this para- graph "primary production" means the production resulting directly from- (a) The cultivation of land; or (b) The maintenance of animals or poultry for the purpose of selling them or of selling their bodily produce, including natural increase of the animals or poultry: Provided that this deduction shall not be made in any case to which the provisions of paragraph (t) of this subsection apply. (2.) For the purposes of the last preceding subsection the following provisions shall apply:- (i.) The aggregate amounts of the contributions under paragraphs (k), (l), and (m) to be allowed as a deduction from a taxpayer's assessable income shall not exceed twenty per centum of the income of the taxpayer remaining after allowing all deductions to which the taxpayer is entitled under this Act, excepting the deductions under para- graphs (k), (l), and (m), and paragraph (c) of subsection one of this section, and the • statutory exemption; (i'i.) Where a taxpayer entitled to deductions under paragraphs (c), (d), and (e) has earned or derived income in the State for part only of a year, the deductions to which he shall be entitled shall be sums which bear the same proportion to the total allowances under the said paragraphs in each case as the part of the year during which the tax- payer earned or derived the income in the State bears to the whole year;

INCOME TAX. 14191 1932. Income Tax Acts Amendment .flct. (£££.) The amounts and sums which by paragraphs (c), (d), and (e) are directed to be deducted shall be deducted from income from personal exertion; but if such income does not amount to the sum so to be deducted, the difference, or if there is no income from personal exertion, then the whole of such sum, shall be deducted from income from the produce of property; (il'.) Except as last hereinbefore provided, in all cases deductions under this section shall be madefirst from either the income from personal exertion or the income 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 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; (v.) Where the taxpayer is a married woman or a widow she shall be entitled to the deductions specified in paragraphs (d), (e), and (w) of subsection one of this section, and any reference in these paragraphs to the wife of the taxpayer shall be read as a reference to the husband of the taxpayer. (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 or derived during the income year when the expenditure was incurred.', 14. Section twenty of the Principal Act is repealed Section 20. and the following new section is inserted in lieu thereof, namely:- "[20.J (1.) With respect to any person (not being a Operati?n of company or an absentee) whose net income (whether from exemptlOns. personal exertion or from the produce of property or partly from personal exertion and partly from the produce of property) during the income year does not amount to £850, a part, but not exceeding £150, of such income shall be exempt from income tax and shall

14192 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, not be deemed to be part of the taxable income. The amount of such exemption shall be ascertained as follows :-The amount of £150 shall be exempt if the net income does not amount to more than £253. The amount of £149 shall be exempt if the net income is £254, and the amount of exemption shall be reduced by £1 for each £4 of the net income in excess of £254, so that there shall not be any exemption if the net income is £850. In deducting the amount of such exemption, the income from the produce of property (if any) shall be first resorted to. (2.) For the purposes of this section" net income" includes the amount of income from dividends. (3.) The exemption and any part thereof provided by this section is in this Act referred to as "the statutory exemption" : Provided always, and notwithstanding anything hereinbefore contained, in the case of any person (not being a company or an absentee), who earns or derives income from sources in Queensland during part only of a year, the exemption under this section shall be such part of the sum of £150 or part thereof as the part of the year during which such person earned or derived such income in Queensland bears to the whole year. This proviso shall be applicable to the income which is actually earned by an absentee by his own personal exertion while in Queensland." A of m s e . n 2 d 1 m . ent amen 1 d 5 e . d Saesctfioolnlotwwse:n-ty-one of the Principal Act is (a) In subsection one the words "he shall be entitled to deduct the loss from any income" are repealed, and the words "such loss shall be deducted from any income (including income from dividends, if any)" are inserted in lieu thereof. (b) Subsection three is amended by omitting the words" not connected with or arising out of any business have been made," and inserting in lieu thereof the words "have been made, but not in the ordinary course of business." (c) Subsection four is repealed and the following subsection is inserted in lieu thereof :- " (4.) If a taxpayer earning or deriving income from any agricultural or dairying or grazing pursuits

INCOME TAX. 1932. Income Tax Acts Amendment Act. carried on by him makes a loss in any income year in carrying on such agricultural or dairying or grazing pursuits, after taking into consideration his income for that income year from all other sources whatsoever in Queensland and elsewhere (less expenses of earI~ ing the same), and any expenditure which was not an allow- able deduction under this Act for that income year, this loss (provided the taxpayer is still carrying on such agricultural or dairying or grazing pursuits) may be, carried forward into his subsequent yearly returns (but not exceeding five income years) until the loss has been made good, by setting off such loss proportionately against his income from all sources whatsoever. But in the case of a taxpayer carrying on grazing pursuits, the amount of any such loss which may be carried forward by him shall not exceed one thousand pounds, and for the purposes of this subsect"on any person whose principal business is buying and selling live stock shall not be deemed to be carrying on grazing pursuits: Provided that the loss to which such taxpayer may be entitled to have carried forward pursuant to the provisions of this subsection four shall not be carried forward into the return of any other person or taxpayer.', (d) Thecollowing additional subsection is added to the said section :- " (5.) Provided that in subsection three of this ~ , ection, "profit" means profit liable to tax under section ten of this Act, and " loss" in the said subsection means loss on sale which, had there been a profit instead of such loss, such profit would have been liable to tax under section ten of t,his Act." 16. In section twenty-two of the Principal Act Amendment after the words "actually paid," where those words of s. 22. twice occur, the words" during the year" are respectively inserted. 1 7. Section twenty-three of the Principal Act is Amendment amended as follows:- of s. 23, (a) The following words "Except as otherwise provided in this Act, in calculating the taxable income no sum shall be deducted from the assessable income for or on account of the following matters or things :-" occurring at the commencement of the said section

14194 INCOME TAX. Income Tax A_cts Amendment Act. 23 GEO. V. No. 2D, are repealed, and the following words are inserted in lieu thereof, namely :-" A deduction shall not, in any case, be made in respect of any of the followin ':S matters :--". (b) The following proviso is added to provision ton, namely:- "Provided that any loss which may be allowable under this provision shall be reduced by any amount which has already been made good to him in his assess- ments or to which he is entitled as a deduction in his assessments pursuant to any other section of this Act." (c) Provision fifteen is repealed and the following provision is inserted in lieu thereof, namely :- Payments to " (15.) Any payment made by husband to wife or hwuifsebaonrd. by wife to husband in excess of what the Commissioner considers a reasonable amount, and no such payments shall be allowed unless the Commissioner is satisfied that the payments have been made bona fide in the course of business and for services rendered." Interest. (d) The following new provisions are added to the said section, namely:- " (16.) Any amount of interest beyond that part of the total interest incurred by the taxpayer which would be assessable income or be exempt from tax under this Act in the hands of the recipients thereof unless income tax is paid by the payor of such interest on the excess of the total interest incurred over any such part at the rate provided for in section forty of this Act. Insurance (17.) Insurance premiums upon which tax has not premiums. been paid in pursuance of the provisions of subsection two of section fourteen of this Act by the insurer." Amendment 18. Section twenty-four of the Principal Act is of s. 24. amended as follows :- In proviso (iv.) all words occurring after the word~ "in the business" are repealed, and the following words are inserted in lieu thereof, namely :- " Provided always and notwithstanding anything hereinbefore contained, but subject to the proviso next hereunder, any person shall be assessed as if he received the income represented by the shares in any such partner- ship of himself and his wife:

INCOME TAX. 14195 1932. Income Tax Acts Amendment Act. Provided further, and notwithstanding anything hereinbefore contained, any person shall be assessed as if he received the income represented by the shares in any such partner- ship of himself and any such relative who, in the opinion of the Commissioner, has directly or indirectly been provided by such person with at least seventy-five per centum of the capital of such relative's share in such partnership." 19. Section twenty-five of the Principal Act is Amendment amended as follows :_ of s. 25. Before subsection four the words " Provided always that-" are inserted. Subsections four and five shall respectively form provisoes (i.) and (ii.) to the said section, and shall be renumbered accordingly. A new proviso is also inserted, namely : - " (iii.) Where the grantor of a trust has at any time during the income year the power to revest in himself title to any part of the corpus of the trust, then the income of such part of such trust for such income year shall be assessable income of the grantor." 20. Subsection two of section thirty-five of the Amendment Principal Act is repealed and a new subsection two is of s. 35. inserted in lieu thereof, namely :- "(2.) If after any income tax has been paid the Commissioner is satisfied that too much in amonnt has been paid, he shall issue a certificate for a refund of the amount overpaid, subject to the provisions of subsection three of this section." 21. Section thirty-eight of the Principal Act is Section 38. repealed and a new section thirty-eight is inserted III lieu thereof, namely :- " [38.] (1.) The rates of income tax in respect of : ~ ~: eofrom income from personal exertion shall be as follow : - the different sources. When the taxable income does not exceed £8,000 the rate on each and every £ of the taxable income shall be 6d. plus as many times loQood. as there are pounds in the taxable income;

14196 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, When the taxable income exceeds £8,000 the rate shall be 54d. in the £ on the first £8,000, and 60d. in the £ on each and every £ in excess of £8,000. (2.) The rates of income tax in respect of income from the produce of property and in respect of all income of absentees shall be as follow :- When the taxable income does not exceed £3,000, the rate on each and every £ of the taxable income shall be 12d. plus as many times 1d!:ood. as there are pounds in the taxable income; When the taxable income exceeds £3,000, but does not exceed £8,000, the rate on each and every £ of the taxable income shall be 6d. plus as many times 10 6 0od. as there are pounds in the taxable income; When the taxable income exceeds £8,000, the rate shall be 54d. in the £ on the first £8,000, and 60d. in the £ on each and every £ in excess of £8,000: Provided that the rate of income tax in respect of income actually earned by an absentee by his own personal exertion while in Queensland shall be the rate as provided in subsection one of this section. (3.) The rates of income tax in respect of income partly from personal exertion and partly from the produce of property shall be as follow : - On the taxable income from personal exertion, at the rate that would be chargeable if his total taxable income had been from personal exertion, and on his taxable income from the produce of property at the rate that would be chargeable if his total taxable income had been from the produce of property. (4.) For the purposes of this section the following provisions shall apply: ~ (i.) Gross income from dividends shall, notwith- standing anything in this Act or any other Act contained, be deemed to be part of the taxpayer's taxable income and shall be returned in the taxpayer's return; and the

INCOME TAX. ]!"J32. Income Tax Acts Amendment Act. rate of tax shall be calculated as if the amount of income from dividends were part of his taxable income; (ii.) The rate of tax in respect of taxable income which consists 0:£ or includes taxable income derived from any sale to which the provisions of section ten of this Act apply, shall be arrived at as follows;- The taxable income derived from such sale (excluding any sale of stock-in-trade or standing crop, but, in the case of a sale or a station or farming property walk-in walk-out, including any sale of live stock in excess of the average number of live stock disposed of by the taxpayer from the property during-· (a) The last preceding three income years; or (b) If the taxpayer has owned such property for a period less than three income years, the period so held, and otherwise excluding any sale of live stock), shall be divided by the number of years (including a part of a year) not exceed- ing seven years, during which the taxpayer owned the property sold, and the amount arrived at shall be added to the taxpayer's other taxable income, if any (including taxable income derived from any sale of stock-in-trade, or of standing crop, 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 ascertained, together with any income from dividends, were the taxpayer's total taxable income; {iii.) The taxable income derived as mentioned in subsection eight of section ten of this Act shall be divided by the number of years (including a part of a year) not exceeding .seven years, during which the assets were owned prior to the writing into, the writing 14197

14198 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, up in, or the bringing to account in the books of the taxpayer; and the amount so arrived at shall be added to the taxpayer's other taxable income, if any, 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 from dividends, were the taxpayer's total taxable income; (iv.) The taxable income of a lessee or sublessee under subsection one of section eleven of this Act if received in one income year shall be divided by the number of years (including a part of a year), not exceeding seven years, during which the taxpayer held the lease prior to the date of the transaction referred to in that subsection, and the taxable income derived from the sale of the goodwill of an interest in an hotel property under sub- section two of the said section if received in one income year shall be divided by the number of years (including a part of a year) not exceeding seven years, during which the taxpayer held such goodwill prior to the date of the transaction referred to in that subsection; .and the amount so arrived at shall be added to the taxpayer's other taxable income, if any, 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 from dividends, were the taxpayer's tot~ l taxable income; (v. ) The taxable income under subsection five of section eleven of this Act shall be divided by the number of years (including a part of a year) of the tenancy, not exceeding seven years after the date when the improvements were effected, and the amount arrived at shall be added to the taxpayer's other taxable income, if any, and there shall be charged on each and every pound of the taxpayer's taxable income the rate that would be

INCOME TAX. HJ!)!} 1932. Income Tax Acts Amendment Act. chargeable if the amount so ascertained, t.ogether with any income from dividends, were the taxpayer's total taxable income." 22. Section thirty-nine of the Principal Act is Amendment repealed and the following new section is inserted in of s. 39. lieu thereof, namely:- "[39.] Where any company carrying on in Queens- Fire, land fire, accident, fidelity, guarantee, or marine insurance ~ ccident, business actually pays away any portion of any premiums ~ ~ ance by way of treaty reinsurance. effected outside Queensland companies. with any other company, the first-named company shall for the purposes of this Act be deemed to be the agent of the last-named company so receiving such portion of such premiums, and before paying away such portion shall pay to the Commissioner income tax on the amount at the rate of nine and one-half pence in the pound, together with super tax, and may deduct from such portion of premiums the amount of tax thereon : Provided that, for purposes of this section, when the first-named company credits in.its books to the last-named company such portion of such premiums, the first-named company shall be deemed to have actually paid away such portion of such premiums so credited to such last-named company, and such first-named company shall pay to the Commissioner income tax at the rate aforesaid. on such portion of such premiums so credited." 23. Section forty of the Principal Act is repealed Section 40. and the following new section is inserted in lieu thereof, namely:- " [40.] The rate of income tax in respect of income Interest which is assessable pursuant to. the. provisions of payable to :r subsection two of section eighteen of this Act shall be ~ ~~ son twenty-eight pence in the pound together with super ~ omicilfd tax, at the rate provided in subsection one of section ueens an . forty-four of this Act." 24. Section forty-two of the Principal Act is Amendment repealed and the following new section forty-two is of s. 42. inserted in lieu thereof, namely :- " [42.] The rates of income tax in respect of the Rates oftax: income of companies shall be as follow:- o of n incomes (1.) On the taxable incomes· of all companies, not companies. being public utility companies or monopoly companies

H200 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, or those companies for which special rates of tax are prescribed under subsection three of this section :- 1 If the total Queensland profits, after excluding therefrom any profits exempt from tax under this Act except profits transferred to reserve ~ . fund and exempted under section nine of this 21d. in each and Act and except profits every £. exempted under rule (ii.) of the proviso to para- graph (c) of subsection one of section fourteen of this Act, do not exceed 6 per cent. on the capital If such profits- Exceed 6 per cent. and do f 24d. in each and not exceed 7 per cent. .. l every £. Exceed 7 per cent. and dO{27d. in each and not exceed 8 per cent. . . every £. Exceed 8 per cent. and dO{30d. in each and not exceed 9 per cent. .. every £. Exceed 9 per cent. and do f 33d. in each and not exceed 10 per cent. l every £. . Exceed 10 per cent. and do f36d. in each and not exceed 11 per cent. l every £. Exceed 11 per cent. and dO{39d. in each and not exceed 12 per cent. every £. Exceed 12 per cent. and do f 42d. in each and not exceed 13 per cent. l every £. Exceed. 13 per cent.. and dO{45d. in each and not exceed 14 per cent. every £. Exceed 14 per cent. and dO{48d. in each and not exceed 15 per cent. every £. Exceed 15 per cent. and dO{51d. in each and not exceed 16 per cent. every £. Exceed 16 per cent. and dO{54d. in each and not exceed 17 per cent. every £.

INCOME TAX. 1932. Income Tax Acts Amendment Act. Exceed 17 per cent. and dO{57d. in each and not exceed 18 per cent. every £. Exceed 18 per cent. and do{60d. in each and not exceed 19 per cent. every £. Exceed 19 per cent. . . { 63edv. e i r n y £ e . ach and (2.) On the tltxable incomes of all public utility companies and monopoly companies- If the total Queensland profits, after excluding therefrom any profits 21d. in each and exempt from tax under every £. this Act, do not exceed 6 per cent. on the capital If such profits-. 14201

14202 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (3.) On the taxable incomes of companies hereunder mentioned (not being public utility companies or monopoly companies), the incomes whereof are assessable under paragraph (c) of subsection one of section fourteen, or section sixteen, or section seventeen of this Act, the rates of tax shall be as follow:- (a) Banking companies 48d. in each and . . { every £ of the taxable income. (b) Fire, accident, fideli~ y, ~ uarantee, or :narme msurance companIes as- sessed under subpara- graph (ii.) of the said paragraph (c) on twenty- five per centum of the premiums, life assurance companies assessed under subparagraph (iii.) of the I said paragraph (c) which I have shareholders who are entitled to receive the whole profits, com- panies assessed under subparagraph (iv.) of the said paragraph (c) which have shareholders 39d. in each and who are entitled to re- every £ of the ceive the whole profits, taxable income other companies assessed under subparagraph (v.) of the said paragraph (c) on a percentage being not less than two pounds ten shillings per centum and not greater than twenty pounds per centum of the total sales made in Queensland or of the total revenue derived from Queensland as de- termined by the Commis- sioner, and companies assessed under section sixteen or section seven- teen of this Act ..

INCOME TAX. 1932. Income Tax Acts Amendment Act. 1 (c) Mutual life assurance companies (that is, life 28d' hd I assurance companI.es . a11 the profits from WhICh ev. eIrny e £ ac 0 f atnhe bl . are. dI· VI' ded among t he j' taxa e mcome. polIcy-holders) ., .• (d) Life assurance companies which have shareholders who are entitled to receive a share of the profits but which divide a part of their profits among the policy-holders- (i.) On so much of the tax- able income as bears the same proportion to the total taxable income as the profits divided for the same income year amongst the shareholders of the company bear to the total profits of the company for the same Income year .. 39d. in each and every £ of the taxable income. 1 (ii.) On the rem. aI.nder 0 f the 28edv. eirny e £ ac 0 hf atnhde taxable Income . . taxable I.ncome. (e) Companies assessed under subparagraph (iv.) of the said paragraph (c) (other than those companies re- ferred to in paragraph (b) of this subsection )._- 14203

14204 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (i.) On the sum of so much of the taxable income derived from its life assurance business as bears the same propor- tion to such taxable income as the profits from its life assurance business divided for the same income year 39d. in each and amongst the share- every £ of the holders of the company taxable income. bear to the total profits from its life assurance business for the same income year together with the taxable in- come assessed in respect of all its fire, accident, fidelity, guarantee, or marine insurance business J (ii.) On the remainder Of} 28d. in each and the total taxable in- every £ of the come .. .. taxable income. (4.) Notwithstanding anything hereinbefore con- tained, the rate of tax in respect of so much of the taxable income of mining companies as is derived from their metalliferous mining operations shall be 12d. in each and every £ of such part of the taxable incomes. (5.) If a company- (a) Has no paid-up capital; or (b) Is such that the capital invested ill Queensland cannot be ascertained; or (c) Has not supplied full information as to its paid-up capital and profits; or (d) Fails to supply to the Commissioner any information which he deems necessary to enable a proper assessment to be made, income tax shall be charged at the highest rate in the pound fixed by subsection one or subsection two of this section, as the case may require, on each and every pound of its taxable income.

INCOME TAX. 14205 1932. Income Tax Acts Amendment Act. (6.) With respect to the profits of any Queensland company which were earned or derived prior to the first day of January, one thousand nine hundred and fifteen, and which were undistributed on the first day of July, one thousand nine hundred and twenty-three, if any part of such undistributed profits has been or shall be distributed, income tax shall be charged thereon at the rate of six pence in each and every pound of the amount distributed. With respect to the profits of any Queensland company which were earned or derived after the thirty- first day of December, one thousand nine hundred and fourteen, and which were undistributed on the first day of July, one thousand nine hundred and twenty-three, if any part of such undistributed profits has been or shall be distributed, income tax shall be charged thereon at the rate that would have been chargeable if the profits had been distributed in the income year in which they were earned or derived, less any amount already paid as income tax thereon." 25. Section forty-three of the Principal Act is Amendment amen d e d as f 0 11 ows:- of s, 43. (a) In subsection one, before the word "profits," wherever such word occurs, the word " Queensland" is respectively inserted. (b) A new subsection two is inserted after subsection one, as follows : - "(2.) With respect to a company assessed pursuant to the provisions of paragraph (d) of subsection one of section fourteen of this Act, its total Queensland profits shall be deemed to be its taxable income of that year as determined pursuant to the said paragraph (d) after deducting therefrom the amount of income taxes assessed under this Act or any Act of the Parliament of the Commonwealth in respect of Queensland income and incurred during the same income year, and all items of expenditure which are properly deductible in arriving at the company's Queensland profits, but which are not allowable deductions under this Act." And subsections two and three are renumbered three and four accordingly. (c) In subsection two (now renumbered three) after the word "companies" and before the bracket the words "or securities of the kind mentioned in provision nine of section eight of this Act " are inserted.

14:206 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (d) The proviso numbered (iii.) of subsection three (now renumbered four) is repealed and the following new proviso is inserted in lieu thereof :- "(iii.) So much of the amount of any goodwill, franchise issued under *" The Tolls on Privately Oonstructed Road Traffic Facilities Act of 1931," Order in Council, copyright, patent right, or undertaking 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: Notwithstanding any payment in cash for goodwill, franchise issued under *" The Tolls on Privately Oonstructed Road Traffic Facilities Act of 1931," Order in Council, copyright, patent right, or undertaking on the purchase of a business by the company, the amount paid shall be deducted from the paid-up capital if the Commissioner is not satisfied that the transaction was entered into or payment in cash made in good faith and that such transaction was not entered into, or such payment not made for the purpose of evading or avoiding taxation." Sections 44 and 44A. Super tax. 26. Sections forty-four and 44A of the Principal Act are repealed and the following new section is inserted in lieu thereof, namely:- "[44.] (1.) There shall be charged, levied, collected, and paid for the use of His Majesty in aid of the Consoli- dated Revenue, in addition to the income tax provided by this Act, income tax (called the super tax) in respect of the annual amount (subject to the exemption or deduction hereinafter mentioned) of the incomes of all persons (except mutual life assurance or insurance companies or societies, except other life assurance or insurance companies whose business is partly mutual, but to the extent only to which the taxable incomes of such lastmentioned companies are subject to the rate of tax provided in subparagraph (ii.) of paragraph (d) of subsection three of section forty-two of this Act, except companies assessed under subparagraph (iv.) of paragraph (c) of subsection one of section fourteen of this Act, but to the extent only to which the taxable incomes of * 22 Geo. V. No. 14, supra, page 13916.

INCOME TAX. 14207 1932. Income Tax Acts Amendment Act. such lastmentioned companies are subject to the rate of tax provided in subparagraph (ii.) of paragraph (e) of subsection three of section forty-two of this Act and except metalliferous mining companies, but to the extent only to which taxable incomes are derived from their metalliferous mining operations), at the rate of twenty pounds per centum on the amount of the income tax payable under this Act: Provided that-- (i.) Where the taxable income of any person (not being a company or an absentee or a person who earns or derives his income from sources in Queensland during part only of a year) does not exceed £250, then such person shall not be liable to pay any super tax; (ii.) Where the taxable income of any person (not being a company or an absentee or a person who earns or derives his income from sources in Queensland during part only of a year) exceeds £250, then from the super tax which would be otherwise payable by any person (not being a company or an absentee or a person who earns or derives his income from sources in Queensland during part only of a year) there shall be allowed the amount of super tax on the amount of statutory exemption allowed to such person pursuant to the provisions of section twenty of this Act, calculated at the rate at which the income tax of such person is calculated, and such rate shall be as on income from personal exertion, if any, in the first place. (2.) There shall be charged, levied, collected, and Additional paid for the use of His Majesty in aid of the Consolidated tax. Revenue, in addition to the income tax (including super tax) provided by this Act, an additional income tax on the incomes of an persons (except companies) calculated as hereunder set forth:- (i.) In the case of the taxable income of any person (not being a company or an absentee) which exceeds £779 but does not exceed £849, an additional tax equal to fifteen per centum of the amount of income tax (including super tax) calculated in accordance with the provisions of this Act;

14208 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, (ii.) In the case of the taxable income of any person (not being a company or an absentee) which exceeds £849 but does not exceed £899, an additional tax equal to sixteen per centum of the amount of income tax (including super tax) calculated in accordance with the provisions of this Act ; (iii.) In the case of the taxable income of any person (not being a company or an absentee) which exceeds £899 but does not, exceed £949, an additional tax equal to eighteen per centum of the amount of income tax (including super tax) calculated in accordance with the provisions of this Act ; (iv. ) In the case of the taxable income of any person (not being a company or an absentee) which exceeds £949 but does not exceed £999, an additional tax equal to twenty per centum of the amount of income tax (including super tax) calculated in accordance with the provisions of this Act; . (v. ) In the case of the taxable income of any person (not being a company or an absentee) which exceeds £999, an additional tax equal to twenty-seven and one-half per centum of the amount of income tax (including super tax) calculated in accordance with the provisions of this Act ; (vi.) In the case of the taxable income of any absentee, an additional tax equal to twenty- seven and one-half per centum of the amount of income tax (including super tax) calculated in accordance with the provisions of this Act." Amendment 27. Sections fifty, 50A, and fifty-one of the aonf sds. 5510. , 50A, p - n ' nCl . pa I A c t are amen d e d as f 0 11 ows;- (a) In paragraph (a) of section fifty the words" does not ordinarily reside" are repealed, and the words "is not domiciled" are inserted in lieu thereof; also the words "two hundred" are repealed and the words " one hundred" are inserted in lieu thereof. (b) The last proviso, being the proviso, is numbered proviso (i.) of the said section, and the words" Provided that-" are inserted before such last proviso; also the words" Provided that if," occurring in such last proviso, are repealed and the word " If " is inserted in lieu thereof. I ~

INCOME TAX. 1420!) 1932. Income Tax Acts Amendment Act. (c) Section fifty-one shall constitute and be renumbered proviso (ii.) of section fifty. (d) Section 50A shall constitute and be renumbered section fifty-one, and in the said section as so renumbered the words" subsection two of section twenty-one" are repealed and the words "subsections one and two of section ten " are inserted in lieu thereof. 28. Section fifty-three of the Principal Act is Amendment repealed and a new section fifty-three is inserted in of s. 53. lieu thereof, namely:- "[53.] Notwithstanding the provisions of the last Penal tax. preceding section, if the income tax or additional income tax payable on an amended assessment is not paid before the expiration of the time specified in the notice of assessment, additional tax shall he payable at the rate of ten per centum per annum upon the amount of tax unpaid, to be computed for the period commencing on the day specified for payment in the notice of assessment and ending on the day upon which the tax is paid: Provided that- (i.) Where a person would be liable pursuant to the provisions of this section to pay additional tax of an amount of less than two shillings and six pence, the additional tax payable by such person shall be two shillings and six pence; (ii.) The Commissioner may in any particular case, for reasons which in his discretion he thinks sufficient, remit the additional tax imposed or any part thereof; (iii. ) Notwithstanding anything herein contained, the Commissioner may sue for recovery of any income tax unpaid immediately after the expiry of the due or extended date for payment." 29. Section fifty-four of the Principal Act is Amendment amended by the insertion of two provisos to subsection of s. 54. one as follows : - "Provided that any such liquidator shall not disburse any part of the property of such company until he has been notified by the Commissioner that there is no claim for income tax against any shareholder

14210 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, in such company who is an absentee for any financial year up to and including the financial year succeeding that during which the company is finally wound up or until he has set aside such sum out of the property of such company as appears to the Commissioner to be sufficient to provide for any income tax which is or may become payable as aforesaid by any such shareholder: Provided further, that any liquidator shall not, for the purpose of the foregoing proviso, be required to set aside in respect of any such shareholder any amount beyond the amonnt to which, in the opinion of the Commissioner, such shareholder is or will become beneficially entitled during the liquidation of the company." Section 60. 30. Section sixty of the Principal Act is repealed and the followlll2' new section is inserted in lieu thereof, namely:---=- Notice to "[60.] (1.) The Commissioner may, by notice in pofaymtoanxeyosut writing, require any person (which expression, without due to limiting its ordinary meaning, shall be deemed to include & ta 0 x . payer, any public authority)-- (a) By whom any money is due or accruing due to a taxpayer, or to a partnership of which taxpayer is a partner; (b) Who holds money or may in future hold money for or on account of a taxpayer, or for or on account of a partnership of which taxpayer is a partner; (c) Who holds money on account of some other person for payment to a taxpayer, or to a partnership of which taxpayer is a partner; or (d) Having authority from some other person to pay money to a taxpayer, or to a partnership of which taxpayer is a partner, to pay to the Commissioner forthwith, or within such time as he allows, the money or so much thereof as is sufficient to pay the income tax due by the taxpayer. (2.) Any person who fails to comply with any notice under this section shall be guilty of an offence, and shall be liable to a penalty of not less than one pound nor more than fifty pounds.

1932. INCOME TAX. Income Tax Acts Amendment Act. 14211 (3.) Where the amount payable by the person to the taxpayer or partnership is less than the amount of income tax due by the taxpayer, the person shall pay to the Commissioner in reduction of the amount due the amount payable by that person to the taxpayer or partnership. (4.) If the income tax due by the taxpayer is paid before any payment is made under a notice given to any other person in pursuance of this section, the Commissioner shall forthwith give notice to that person of the payment." 31. Part VIII. of the Principal Act is amended as Amendment f o 11 ows:- of Part VIII. (a) Section sixty-four is amended as follows : - Section 64. (i.) In the third paragraph of subsection two, after the words "notice of objection," all words to the end of the paragraph are repealed and the words "as prescribed by section forty-five of this Act to such amount he shall be entitled to have such objection dealt with as prescribed by the said section forty-five" are inserted in lieu thereof. (ii.) The last paragraph of the said subsection two is repealed and the following paragraph is inserted in lieu thereof:- " At any time after such amount has been ascertained by the Commissioner or determined as prescribed by the said section forty-five, the second conviction may be formally drawn up adjudging the defendant to pay double the amount so ascertained or determined, and shall be forthwith enforceable." (b) Section seventy-six is repealed and the following Section 76. new section is inserted in lieu thereof, namely : - "[76.J (1.) If, in any proceedings against a tax- sub~ tituted payer for the recovery of income tax, the defendant- serVICe. (a) Is absent from Qneensland and has not to the knowledge of the Commissioner after reasonable inquiry in that behalf any attorney or agent in Queensland on whom service of process can be effected; or (b) Cannot after reasonable inquiry be found,

14212 INCOME TAX. Income Tax Acts Amendment Act. 23 GEO. V. No. 29, service of any process ill the proceedings may, without leave of the Court, be effected on him by posting the same or a sealed copy thereof in a letter addressed to him at his last known place of business or abode in Australia. (2.) Where proceedings against a taxpayer for the recovery of income tax have been instituted in the Magistrates Court, service of any process in the proceedings may, without leave of the Court, be effected on him by posting the same by prepaid registered letter post addressed to him at his address for service. When a summons has been served in this manner the officer of the Commissioner who posted the registered letter may attend before a justice of the peace and depose on oath to the time, place, and manner of such posting. Such deposition shall be attached to a copy of the summons together with the registration receipt, and a written acknowledgment from the defendant (the card returned by the post office where a letter is posted "avis de reception") and on production to the court shall be sufficient proof of the service." A men d men t 32. Part IX. of the Principal Act is amended as of Part IX. follows;- Seotion 89. (a) Subsection three of section eighty-nine is repealed. Section 90. (b) Section ninety is amended as follows ; - (i.) In subsection seven the words" Act of 1910 " " are repealed and the words " Acts, 1910 to 1929 " " are inserted in lieu thereof. (ii.) A new subsection is inserted as follows ; - "(8.) The Commissioner shall, during the month of September in each year, publish in the Gazette a list of the full names and "addresses of all tax agents registered as on the first day of July then last past." Seotion 91. (c) Section ninety-one is amended by inserting after the words "made or done," where they first occur, in subsection one, the words" by the Commissioner."

INCOME TAX. 14213 1932. Income Tax Acts Amendment Act. 33. Except as in this Act is otherwise expressly First provided, the first assessments of income tax to be made assessmenb under the Principal Act (as amended by this Act) shall i: - ~ ~ s~ ax be in respect of income earned or derived during the un~ e~ year which commenced on the first day of July, one ! ~ ~ ~ ~ pal thousand nine hundred and thirty-one, and ended on a~ended by the thirtieth day of June, one thousand nine hundred thIs Act. and thirty-two, or such other period accepted by the Commissioner in accordance with the provisions of section thirty of the Principal Act, and the first levy of income tax under the Principal Act (as amended by this Act) shall be for the year which commenced on the first day of July, one thousand nine hundred and thirty- two, and ends on the thirtieth day of June, one thousand nine hundred and thirty-three. INCOME (UNEMPLOYMENT RELIEF) TAX. See LABOUR (1). INDUSTRIAL ARBITRATION. See LABOUR (2). INDUSTRIAL COURT. See LABOUR (2).