Income Tax Assessment Act Amendment Act 1939 (WA)

1939.]

Income Tax Assessment.

[No. 25.

INCOME TAX ASSESSMENT.

3° and 4° GEO. VI., No. XXV.

No. 25 of 1939.

AN ACT to make provision in the Income Tax Assess- ment Act, 1937, for the payment and collection of income tax by instalments in certain cases and for other purposes incidental thereto.

[Assented to 16th December, 1939.]

BE it enacted by the King's Most Excellent Majesty,by and with the advice and consent of the Legis- lative Council and Legislative Assembly of Western Australia, in this present Parliament assembled, and by the authority of the same, as -follows:—

1. This Act may be cited as the Income Tax Assess-

Short title.

ment Act Amendment Act, 1939, and shall be read as one

with the Income Tax Assessment Act, 1937 (No. 13 of

1937), hereinafter referred to as the principal Act.

2. This Act shall come into operation on a day to be Commence-

fixed by Proclamation, but such Proclamation shall not ment"

fix a day previous to the first day of July, One thousand

nine hundred and forty.

3. Section four of the principal Act is amended as Amendment

of a. 4 of

principal Act.

(a) by deleting the words and figures "Part VI.—Col- lecti on and Recovery of Tax ss. 175-190" and

No. 25.]

Income Tax Assessment.

[1939.

inserting in lieu thereof words and figures as

follows :-

"Part Vt—Collection and Recovery of Tax.

Division 1—General ss. 175-190.

Division 2—Payment and collection by instal-

ments ss. 191-209";

(b)	by deleting the figures "191-212" where they appear after the words "Part VII.—Penal Pro- visions and Prosecutions ss." and inserting in lien thereof the figures "210-231";

appear after the words "Part

laneous ss." and inserting in lieu thereof the

figures "232-247."

Amendment

of Part VI.	4. Part VI. of the principal Act is amended as fol-
of principal

Act.

lows :—

(a)

by inserting immediately below the heading

"Part -NT—Collection and Recovery of Tax" a

sub-heading as follows: "Division 1—General";

(b)

by inserting after section one hundred and ninety

a new division as follows :—

Division 2—Payment and Collection of Income

Tax by Instalments.

Interpreta-

191. (1) In this Division, unless the contrary

tion.

Vic. No. 4440	intention appears
of 1936, a.

187. "Employee" means any person who receives wages, and includes a director of a com- pany.

S.A. No. 2296
of 1996, a.	or is entitled to receive any salary or "Employer" includes any person or any body corporate or unincorporate who or which pays or is liable to pay any salary or wages.
200.
"Salary or wages" means salary, wages, commission, bonus or allowance paid (whether at piecework rates or other- wise) to any employee as such, and in- cludes

(a) any salary or wages paid to any officer or other person employed in any public department;

1939.]

Income Tax Assessment.

[No. 25.

(b)

any payments made for labour only or substantially for labour only to any

person under any classes of contracts or

service or of contracts for service, which are prescribed by the Governor, for the purposes of this definition under and in accordance with subsection (2) of this section ; and

(c)

any payments by way of remunera-

tion made by a company to a director of

such company.

"Tax payable by an employee" or "Tax pay- able by the employee" means any tax due and payable by the employee or which may become payable by the employee under any assessment made or to be made on any return which he has lodged or has been required to lodge, or under any assess- ment made or to be made in default of any such return.

"Tax stamps" means tax instalment stamps caused to be prepared and placed on sale by the Commissioner pursuant to this Division.

(2) The Governor may by Order in Council As t r

to ta"

published in the Government Gazette prescribe e° ae

classes of contracts of service and contracts for

service under which payments made for labour

only or substantially for labour only to any per-

son shall be deemed to be salary or wages.

192. Subject to Parliament declaring rates ?:(1=1,100"s

of and authorising such deductions, deductions arIttherq

/eclareili

from salary or wages shall be made under or fv	id.
pursuant to this Division notwithstanding that	887 ib

the rates of tax have not been declared for the &it

year of tax in which the deductions so authorised

are to be made.

(1) Where an employee is entitled to Tniouytrer of

193. tomake

receive salary or wages from an employer tdmu c tsiaorasr y

respect of any week or part thereof amounting A",„Z„nf

in all to thirty-seven shillings or more, the vatuctlooind. 3

employer shall at the time of payment make 189.:

deductions from such salary or wages for or on

No. 25.]

Income Tax Assessment.

[1939.

account of the tax payable by such employee at the rates declared or authorised by Parliament.

Where salary

Or wages paid

(2)

Where the salary or wages for any week or part of a week is or are paid in two or more separate sums, all sums so paid shall, for the purpose of computing the amount of deduction under this section, be treated as one sum and the deduction may be made at the option of the employer either wholly from any one of the sums or in part from each of two or more of the sums.

in separate

sums.

Where meals,

quarters, etc.,	(3) Where an employee receives, in addition to his salary or wages, meals, sustenance, the use of premises, or quarters or any of them from his employer as part consideration for Ins ser- vices, the employee shall for the purpose only of computing the deduction under this section be deemed to have received as salary or wages, in addition to any money actually payable to him a sum ( at the rate 'of fifteen shillings per week for meals or sustenance, and five shillings per week for the use of premises or quarters) for each week during which meals or sustenance or the use of premises or quarters are or is re- ceived.
received by
employee.

('(fence.

(4)

(a) If any employer fails to make any deduction required by this section to be made he shall be guilty of an offence and for every such offence shall. he liable to a penalty of not more than twenty pounds and in addition be liable to pay to the Commissioner any amounts omitted to be deducted.

(b) The Commissioner may recover those amounts from the employer by action in any court of competent jurisdiction or the court may in proceedings for any offence under this sec- tion order payment of those amounts.

If the Commissioner recovers any such

amount he shall retain the same as payment of

any tax payable by the employee.

(c)

(d)

The employer may recover from the em- ployee any amounts omitted to be deducted which lie has paid to the Commissioner under this sub- section.

1939.]

Income Tax Assessment.

[No. 25.

194. (1) At the time of paying to any em- it loyeit

r to

ployee ally salary or wages from which a deduc- tonvooroPop.s

tion under this Division is made, the employer rg,7

or the person making the payment on his behalf m ibid.

shall deliver to the employee adhesive tax

stamps denoting the amount deducted.

(2) Forthwith after receiving from Ins em- Employee

t o

affix stamps

ployer any tax stamps in accordance with this i n a hook.

Division every employee shall securely affix them to a clear space on a page of the book which he is required to provide and keep pursuant to the next succeeding section but shall not affix any stamp to one side of a page if a stamp has already been affixed to the other side of that page.

(3) Every employee who has received any initialling

stamps.

stamps from his employer as aforesaid shall, forthwith after affixing them in the said book and in the presence of his employer or the per- son making the payment on behalf of such em- ployer, write in ink on every such stamp his name or initials and the date of payment:

Provided that this subsection shall not apply in the case of any employee who receives such stamps as aforesaid from any employer who has obtained the authority in writing of the Com- missioner to deliver to his employees tax stamps marked in such manner as the Commissioner approves.

(4) Any person who commits any contraven- Offence.

tion of or fails to comply with any provision of

this section shall be guilty of an offence.

Penalty: Twenty pounds.

195. (1) Every employee from whose salary or wages a deduction under this Division is re- tr?,,k'orbt'odole."

fLactioilogannipto

quired to be made shall provide and keep a book 1 ibid. s. of convenient size and shape for the purpose of ibid. s. having tax stamps issued to him by his employer "

under this Division affixed therein.

(2) Every employee who, when required to do so by the Commissioner or any officer authorised in writing by the Commissioner, without reason- able excuse refuses or fails within a reasonable

No. 25.]

Income Tax Assessment.

[1939

time after such requirement to produce such book with the stamps affixed to the pages thereof as required by this Division shall be guilty of an offence and for every such offence be liable to a penalty of not more than twenty pounds.

Employee may

produce book	196. (1) Any employee from whose salary or
to Commis-

sioner.	wages deductions have been made under this
Vic., ibid. s.
192.	Division may, subject to the regulations, at any time produce to the Commissioner the book con- taining the stamps issued to him under this Divi- sion, and the Commissioner shall thereupon cancel the said stamps.

Retention of

(2)

The Commissioner may apply the amount represented by the face value of those stamps in payment or part payment of any tax payable by the employee, and that amount shall be deemed to have been paid by the employee in satisfaction or part satisfaction of that tax and not otherwise.

stamps by

Commissioner.

Refunds.

(3)

If, however, there is no tax payable by the employee, or if the face value of the stamps pro- duced by the employee exceeds the amount of such tax payable, the Commissioner shall, with- out any further or other authority than this Act, refund to the employee the face value of the stamps, or, as the case may be, the amount by which the face value of the stamps exceeds the amount of such tax.

Payment of

tax wbeic	(4) If the deductions made under this Divi- sion from the salary or wages of any employee up to the last day of May in any financial year are insufficient to pay the tax payable by that employee, the balance of the said tax, if it has not previously become due and payable shall be due and payable fourteen days thereafter, and if not then paid shall bear additional tax as pro- vided for by this Act.
stamps in-
sufficient.
Group

schemes.	197. (1) (a) If arrangements satisfactory to
Vie., ibid. s.

5. the Commissioner are made between any em-

S.A., ibid. s.
208.	ployer and any of his employees whereby for the purpose of paying tax due or to become due by those employees such employees will suffer

1939.]

income Tax Assessment.

[No. 25.

periodical deductions under this Division in accordance with such arrangements from their salary or wages the Commissioner may, in writ- ing, notify the employer that stamps in respect of the salary or wages of those employees need not be delivered or affixed in accordance with this Division during the period mentioned in the notice and thereafter the employer shall make deductions in accordance with such arrange- ments from the salary or wages of those em- ployees during the said period.

(b) If the Commissioner is of opinion that having regard to the nature of the employment of any class or classes of employees it is not desirable that an employer of any employees of any such class should deliver to those employees stamps in accordance with this Division, the Commissioner may in writing notify the em- ployer that stamps in respect of the salary or wages of those employees shall not be delivered or affixed in accordance with this Division dur- ing the period mentioned in the notice; and thereafter the employer shall make deductions in accordance with the requirements of such notice from the salary or wages of those em- ployees during the said period.

Amount of

(2)

The amount of any deductions so made or purporting to have been so made shall be deemed	deductions to be paid
periodically by employer
to be a debt due to the Crown, and shall be paid	to Commis clones.
to the Commissioner by such employer at such times or intervals as the Commissioner appoints.

(3)	If any employer fails to pay such amount Offence.

to the Commissioner within seven days after the time or interval appointed by the Commissioner he shall be guilty of an offence.

Penalty : One hundred pounds.

(4) If the amount so deducted from the salary Refund

or wages of any such employee during ally year of tax exceeds the amount of tax payable by the employee, the Commissioner shall upon payment of the tax and without any further or other

No. 25.]

Income Tax Assessment.

[1939.

authority than this Division refund to such em- ployee the excess amount, and if the Commis- sioner is satisfied that there is no tax payable by the employee the Commissioner shall, with- out any further or other authority than this Division, refund to such employee the amount so deducted.

Payment of

tax where	(5) If the amount so deducted from the salary or wages of any employee during any year of tax up to the fifteenth day of June of that year is insufficient to pay the tax payable by the employee, the balance of such tax shall be due and payable on that date.
deduction
insufficient.
(6) Every employer notified in writing by the Commissioner under subsection (1) of this sec- tion shall

(a)	furnish to the Commissioner at such times or intervals as the Commissioner appoints, statements, lists, or any other information which the Commissioner requires for the purposes of this Divi- sion; and
(b)	issue to any employee at such time as the Commissioner appoints a certificate showing the amount deducted under this section during such period or periods as the Commissioner deter- mines.

(7) The Commissioner may cancel a notice under this section at any time, and thereafter the duties of the employer and the employee under this Division shall be the same as if the said notice had not been given.

State Govern-

ment	198. (1) Except where arrangements are
employees.

SA., ibid. s.	made under the last preceding section this Divi-
209.	sion shall apply to all employees of the State and the Permanent Head of the Department in which any such employee works shall be deemed

1939.]

Income Tax Assessment.

[No. 25.

to be his employer within the meaning of this

Division.

(2) If any person receives salary or wages

out of the general revenue of the State, but is

not employed in any department, the Treasurer

shall be deemed to be the employer.

199.

The State may enter into all agreement Arrangements

with Com-

with the Commonwealth for the deduction by inonwealth.

V	c.., ibid.

the Commonwealth from periodical payments 19i4

of salary or wages paid to persons who are 210.	S	A, ibid.
officers within the meaning of section two of the Income Tax Collection Act, 1938, of the Commonwealth of the tax payable under this Act in respect of salaries or wages paid by the Commonwealth to such persons. Any amounts deducted in pursuance of an agreement made under this section shall be paid by the Common- wealth authority making the deduction to the Commissioner as representing the State, in such manner and at such times as are provided by the agreement. In such agreement such adapta- tions of the provisions of section one hundred and ninety-seven of this Act as are necessary may be made, and where any such agreement is entered into and so long as it continues in opera- tion the provisions of that section shall, with all necessary adaptations, extend and apply accordingly.

200.

(1) The Commissioner may issue to Certificate of

exemption

any employee a certificate that no deductions from deduc. from his salary or wages need be made during ibid. s.

any period specified in the certificate: Provided to ibid. a.

that where it is subsequently ascertained that 211.

there is or will be tax payable by the employee,

the Commissioner may, by notice to the em-

ployee, cancel the certificate.

ployer to whom the said certificate is exhibited certificate.

(2)

During the period so specified no em- Effect of

shall make any deductions tinder this Division

from the salary or wages of that employee.

(3)

Any person who—

Offences in

(a) alters any certificate issued as afore- leairar‘iot: of

certificates of

said, or

exemption.

No. 25.]

Income Tax Assessment.

[1939.

V i e., ibid. a.

195. (b) exhibits to any employer any certificate

S.A., ibid. s.

211. which has been so altered, or

(c)	without lawful excuse has in his pos- session any colourable imitation of a certificate issued as aforesaid, or
(d)	falsely pretends to be the person named in any certificate or causes any em- ployer to refrain from making the deductions from his salary or wages by the production of any document other than the certificate issued to himself and for the time being in force

shall be guilty of an offence. Penalty: Fifty pounds.

Other

offences.

201. (1) Any person who presents any docu-

Presenting	ment under the hand of the Commissioner for
document re-
hating to an-	the purpose of obtaining credit with respect to
other person.
S.A., ibid. s.	or a refund of the value of tax stamps which
211.	have been delivered in respect of the salary or wages of some person, other than the person named in such document, shall be guilty of an offence.

Penalty: Fifty pounds. (2) Any person who-

Personation.	(a)	endeavours to obtain for his own ad-
Vie., ibid. s.

195. vantage or benefit credit with respect

S.A., ibid. s
212.	to or a refund of the value of tax stamps which have been delivered in respect of the salary or wages of some person other than himself; or

(b)	presents any document under the hand of the Commissioner and pretends to be the person named therein for the purpose of obtaining credit with re- spect to or a refund of the value of tax stamps

shall be guilty of an offence.

Penalty: One hundred pounds, with a mini- mum of Two pounds, or imprisonment for twelve months.

1939.]

Income Tax Assessment.

[No. 25.

(3) Any person who-	Frauds in re-
gard to 'Pas
Stamps.

(a)

fraudulently removes or causes to be

Vic., ibid

202.

removed from the stamp book of ally	S.A.. ibid. s.
employee any tax stamp affixed	206.
therein; or

(b)	affixes a tax stamp so removed to any

other book; or

(e) utters any tax stamp which has, to his knowledge, been fraudulently re- moved from any book to which it had previously been affixed

shall be guilty of an offence.

Penalty: One hundred pounds.

202. (1) Any taxpayer not being an employee may at any time purchase tax stamps from per-	Payment by tax stamps by
persons other than
sons authorised by the Commissioner to sell tax	employees. Vic., ibid. s.
stamps and may after receiving his notice of	190.
assessment and on or before the due date shown	S.A., ibid. s.
214.
thereon produce to the Commissioner such stamps.
(2) The Commissioner shall thereupon cause the said stamps to be retained and defaced and	Retention and
defacement
Produced to
of stamps
the amount of the face value thereof shall be	Commissioner.
deemed to have been paid by such taxpayer in satisfaction (in so far as the same extends) of any tax payable by him.

If the Commissioner is satisfied that there is no tax payable or if the face value of the tax stamps produced by the taxpayer exceeds the amount of tax payable by him the Commis- sioner shall, without any further or other author- ity than this Division, refund to the taxpayer the face value of the stamps or (as the case may be) the amount by which the face value of the stamps exceeds the amount of tax payable.

Refunds.

(3)

(4)	If the face value of the stamps produced payment of

by the taxpayer is less than the amount of tax lTlu001 payable by him the balance of the said tax shall ;efficient.

be due and payable on the date of payment

shown on the notice of assessment.

No. 25.]

Income Tax Assessment.

[1939.

Book of

All stamps so produced shall be affixed in a book of convenient size and shape provided and kept by such taxpayer for the purpose but stamps shall not be affixed on both sides of any page of such book.

stamps to be

(5)

provided.

Liability	203.	(1) Where an employee is employed by
where em-
ployer is an

association.	any unincorporated body of persons other than
Vie., ibid. a.
198.	a firm the manager or other principal official of
S.A., ibid. s.	such body shall be deemed to be the employer
215.
within the meaning of this Division.
employer Is a

Where	(2) Where an employee is employed by a firm
firm or part-

nership.	each partner shall be deemed to be the employer
Vie., ibid. 5.	within the meaning of this Division and any one
198.
S.A., ibid. s.	of them may be proceeded against for any con-
215.	travention of or failure to comply with any of the provisions of this Division in relation to the employee; but not more than one person shall be punished for the same contravention or failure.

Power of	204.	(1) The Commissioner or any officer
Commissioner
to require

delivery of	authorised by the Commissioner may require
stamps held
on behalf of	any person to deliver to him tax stamps which
another per-
son.	are in his possession and are held by him on
Vie., ibid. s.
199.	behalf of some other person; and the Commis-
S.A., ibid. a.	sioner shall issue his receipt for the stamps
218.
which have been so delivered.

offence.

(2)

If any person when so required does not

deliver those stamps to the Commissioner or

other officer he shall be guilty of an offence.

Penalty: Fifty pounds.

Credit or

The Commissioner shall allow credit with respect to or (as the case requires) a refund of the value of such stamps upon application by the employee to whom such stamps were de- livered by his employer.

ref and to

(3)

employee.

(4) Whenever the Commissioner suspects that any tax stamps produced to him have been obtained in contravention of any provision of this Division he may retain those stamps for such period as he thinks fit, and shall not take them in satisfaction of any tax payable or make any refund in respect of them until he has satis-

1939.]

Income Tax Assessment.

[No. 25.

lied himself as to the identity of the person (if any) to whom the stamps were lawfully de- livered by an employer.

Commissioner

205. (1) The Commissioner shall cause to be prepared and placed on sale sufficient tax

to prepare and Issue stamps.

Vic.,

200.

stamps of suitable denominations for the pur-

S.A., ibid. s.

poses of this Division.

216.

(2) Every such stamp shall bear the words "Tax instalment" clearly printed thereon.

Commissioner

206. (1) The Commissioner may by writing under his hand license vendors of tax stamps and

may license vendors of

Stamps.

may direct how and under what conditions

cf. WA., No.

10 of 1922,

stamps may be issued to such vendors for sale,

s. 12.

Vie., ibid. a.

and what accounts of such tax stamps shall. be

200.

S.A.. ibid. s.

kept by such vendors.

216.

Such licenses may be granted as afore-

said for any period of time and may at any time

be revoked by the Commissioner.

(2)

(3) The issue or revocation of any such licenses shall be notified in the Government Gazette.

A licensed vendor of tax stamps may be

remunerated by commission at a rate prescribed

by regulations.

(4)

The Commissioner may and shall, if so required by the Treasurer, authorise any officer of any public department either of the State or the Commonwealth to sell tax stamps.

(5)

207. (1) Every person holding a license to sell tax stamps shall cause a notification of such	Licensed
vendors of
stamps to
notify fact.
fact to be put up and kept affixed outside the	W.A., ibid. s. 12.
place in which such stamps are sold in such man- ner as may be prescribed by the regulations:
Provided that this subsection shall not apply where tax stamps are issued to any officer of any public department either of the State or of the Commonwealth for sale to the public.
(2) Any licensee who fails or refuses to com- ply with the provisions of this section shall be guilty of an offence.

No. 25.]

Income Tax Assessment.

[1939.

Penalty : Five pounds, and in addition a daily penalty of ten shillings for every day or part of a day during- which the offence continues.

Sale of tax

stamps by un-	208. (1) No person, other than a person
authorised

persons pro-	licensed or authorised by the Commissioner to
hibited.	sell tax stamps shall sell or offer for sale such
Vic., ibid. s.
201.	stamps or otherwise dispose of the same except
S.A., ibid. s.
217.	by production of them to the Commissioner as provided in this Division or the regulations, but nothing in this subsection shall be deemed to prohibit the delivery in accordance with this Division of tax stamps by an employer to any of his employees.
stamps from

Purchase of	(2)	No person (except an employee receiving
unauthorised

persons pro-	stamps from his employer in accordance with
hibited.	this Division) shall knowingly purchase or obtain tax stamps from any person other than a person licened or authorised by the Com- missioner to sell such stamps.
Penalty.	(3) Any person who contravenes ally of the provisions of this section shall be guilty of an offence.

Penalty: One hundred pounds.

Jul p ing sev-

eral charges	209. (1) Notwithstanding anything to the
in one

complaint or	contrary contained in Part VII. of this Act or
information.
Vic., ibid. s.	in any other Act or any law to the contrary
202.	charges for any number of offences under this
S.A., ibid. s.
220.	Division may be made against the same person in one complaint or information if those charges are founded on the same facts or form or are part of a series of offences of the same or a similar character ; but where more than one such charge is made in the same complaint or in- formation as aforesaid, the particulars of each offence so charged shall be set out in a separate paragraph.
(2) If such person is found guilty of more than one charge in any such complaint or in formation, one aggregate penalty may be in- flicted in respect of all the charges upon which such person is so found guilty.

19392,

Income Tax Assessment.

[No. 25.

5. Consequentially upon the operation of section four Amend ment

of this Act, the section numbers of all the sections con- iiiinisirorZi

tamed in Part VII. and Part VIII. of the principal Act, ii natsym.' of

principal Act.

that is to say sections one hundred and ninety-one to two hundred and twenty-eight, both inclusive, are hereby amended by substituting the figures "210" for the figures "191" at the commencement of section one hun- dred and ninety-one and making the corresponding arithmetical amendments in the section numbers of all the following sections so that the sections then contained in Part VII. of the principal Act shall be numbered in arithmetical sequence two hundred and ten to two hun- dred and thirty-one, and the sections then contained in Part VIII. of the principal Act shall then be numbered in arithmetical sequence two hundred and thirty-two to two hundred and forty-seven.

6. In the event of tins Act coming into operation on Deduction of

a day when, under any laws of the State relating to the El:earn:L.1°

imposition, levying, assessment and collection of financial La; ()Mgt

emergency tax provision is made and in operation for g ceeitinspe/onsr

the deduction of financial emergency tax from the salary =re:MN

or wages of employees then, notwithstanding the said Act

laws, as from and including the day when this Act comes

into operation as aforesaid, the provisions of the said

laws relating to the deduction of financial emergency tax

from the salary and wages of employees shall by virtue

of this section cease to operate and have effect in so far

as relates to salary or wages earned by such employees

after the said date, and thereafter no deduction of

financial emergency tax under the said laws shall be made

from the said salary or wages of such employees, and no

financial emergency tax shall. be payable by such em-

ployees in respect of such salary or wages.

7. The principal Act as amended by this Act may be Cqaqull of

cited as the Income Tax Assessment Act, 1937-1939. risrmaeganider