Income Tax Assessment Act Amendment Act of 1941 (5 Geo Vi No. 2) (Qld)

84 INCOME TAX. Income Tax Assessment, Etc., Act. 5 GEO. VI. No. 2, 5 G N E o O . . 2 V . I. An Act to Amend" The Income Tax Assessment Act THE INCOME TAX of 1936" in certain particulars. ASSESSMENT ACT AMENDMENT ACT OF [ASSENTED TO 12TH SEPTEMBER, 1941.] 1941. B E it enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Legis- lative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows:- Short title. 1. (1.) This Act may be cited as " The Income Tax Assessment Act Amendment Act of 1941," and shall be read as one with *" The Income Tax Assessment Act of 1936," herein referred to as the Principal Act. Collective (2.) The Principal Act and this Act may collectively title. be cited as " The Income Tax Assessment Acts, 1936 to 1941." Commence. (3.) This Act shall come into operation on the first ment of Act'day of October, one thousand nine hundred and forty- one. Amendments of the Principal Act. Amendment 2. Section three of the Principal Act is amended by OfB.3. inserting after the words "PART VI.-COLLECTION AND RECOVERY OF TAX (s. 49)" the words" PART VIA.- COLLECTION OF INCOME TAX BY INSTALMENTS (ss. 49A- 49y)." hI n ne e sa w edri P tni a go r nt t oof follow 3 i . ngMhteeardsiencgtitoon PfoarrttyV- nIAin.eaonfdthseectPiorinnsci4p9aAl Aancdt, 4t9hBe VIA. and are inserted, namely :- BB. 49A and 49B. Collection o T f a I x nc b o y me "PART VIA.-COLLECTION OF INCOME TAX BY Instahnel1ts. INSTALMENTS. Itinotne.rpreta. appe[ 4a9rAs-.] In this Part, unless the contrary intention Employee. "Employee" means any person who receives, or is entitled to receive, any salary or wages, and- (a) Includes a member of Parliament, and a person employed by the State or by an authority of the State; and * 1 E. 8 No. 32. See v. 4, p. 6.

1941. INCOME TAX. Income Tax Assessment, Etc., Act. 85 (b) Where the Governor in Council has entered into an arrangement with the Governor-General of the Common- wealth in accordance with section 49B of this Act, subject to the terms of any such arrangement, includes a member of the Parliament of the Common- wealth and a person employed by the Commonwealth or by an authority of the Commonwealth; " Employer" means any person who pays or is Employer. liable to pay any salary or wages, and includes- (a) In the case of an unincorporate body of persons other than a partnership-the manager or other principal officer of that body; and (b) In the case of a partnership-each partner, and, except in relation to the imposition of any penalty- (c) Also includes the State and any authority of the State; and (d) Where the Governor in Council has entered into an arrangement with the Governor-General of the Common- wealth in accordance with section 49B of this Act, subject to the terms of any such arrangement, also includes the Commonwealth and any authority of the Commonwealth; "Salary or wages" means salary, wages, com- Salary or mission, bonuses, or allowances paid (whether wages. at piece-work rates or otherwise) to any employee as such, and, without limiting the generality of the foregoing, includes any payments made- (a) Under any prescribed classes of contracts to the extent to which that payment is attributable to labour; (b) Bya company by way of remuneration to a director of that company; (c) By way of superannuation, pension, or retiring allowance; or

86 INCOME TAX. Income Tax Assessment, Etc., Act. 5 GEO. VI. No. 2, Tax payable by the employee. Tax stamp. (d) By way of commission to an insurance or time-payment canvasser or collector, but does not include payments of exempt income; "Tax payable by the employee" means any income tax which is or may become due and payable by an employee under any assessment made or to be made on any return which he has furnished or has been required to furnish, or may be required to furnish, or under any assessment made or to be made in default of any such return; "Tax stamp" means any stamp which the Commissioner causes to be prepared in pursuance of this Part or (where the Governor in Council has entered into an arrangement with the Governor-General of the Common- wealth pursuant to this Part for the use,. for the purposes of this Part, of tax stamps prepared in accordance with the provisions of Part VI., Division 2, of the *lncome Tax Assessment Act 1936-1940 of the Common- wealth) any stamp prepared in accordance with the said Part VI., Division 2. Arrange- [49B.] (1.) The Governor in Council may enter into mCoemntms owni- th an arrangement with the Governor-General of the wealth. Commonwealth to provide for the carrying-out by the Commonwealth (including any authority of the Commonwealth) of the obligations imposed by this Part on employers and/or for the carrying-out by this State (including any authority of this State) of the obligations imposed by Part VI., Division 2, of the *lncome Tax Assessment Act 1936-1940 of the Commonwealth on employers. (2.) The agreement relating to any such arrangement may make provision for any other matters necessary or convenient to be provided for carrying out the arrangement." Sections 4. The following sections 490 to 49E are inserted 490 to 49B. in the Principal Act after section 49B previously inserted, namely:- Deductions " [490.] (1.) Where an employee is entitled to receive by employ~r from an employer in respect of any week or part thereof, farnodmwsaagleasn.es saIary or wages I . D excess 0 f two pounds ande·lghteen * No. 27, 1936, and amending Acts.

INCOME TAX. 87 1941. Income Tax Assessment, Etc., Act. shillings, the employer shall, at the time of making payment of the salary or wages, make deductions therefrom of such weekly amounts as are prescribed. Penalty: Not less than one pound or more than twenty pounds. (2.) Where 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 employer may, at his option, make the deduction wholly from one sum or in part from each of any two or more sums. (3.) Where an employee receives from his employer in addition to his salary or wages, meals, sustenance, or the use of premises or quarters as part consideration for his services, he shall for the purpose 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) For each week or part thereof during which meals or sustenance are received by him- an amount calculated at the rate of fifteen shillings per week; and (b) For each week or part thereof during which the use of premises or quarters is received by him-an amount calculated at the rate of five shillings per week. [49n.] (1.) Notwithstanding anything contained in Variation the last preceding section, the Commissioner may vary of . the amounts to be deducted from any employee or class deductlOns. of employees- (a) In any case where the Commissioner is of the opinion that deductions from the salary or wages of the employee or employees at the prescribed rates would be insufficient to pay the tax which is, or will become, payable by the employee or employees; (b) In any case where the Commissioner is satisfied that deductions at the prescribed rates would impose serious hardship on the employee or employees; or (c) For the purpose of facilitating the carrying out of an arrangement with any employer under section 49K of this Act.

INCOME TAX. Income Tax Assessment, Etc., Act. 5 GEO. VI. No. 2, (2.) Where the Commissioner so varies the amounts to be deducted, he shall notify the employer of the employee or class of employees, in writing, of the variation and the employer shall thereafter make deductions from the salary or wages payable to the employee or employees in accordance with the amounts so notified. Penalty : Not less than one pound or more than twenty pounds. Recovery of [49E.] (1.) Where an employer fails to make any ~ o~ t~ not deduction required to be made by this Part he shall, in e uc e. addition to any penalty for which he may be liable, be liable to pay to the Commissioner the amount which he has failed to deduct, and the Commissioner may sue for and recover that amount in any court of competent jurisdiction or the court before which any proceedings for an offence are taken may order the payment of that amount to the Commissioner. . (2.) The Commissioner shall apply any amount so recovered by or paid to him as payment of any tax payable by the employee. (3.) The employer may recover from the employee any amount which he has failed to deduct and which he has paid to the Commissioner in pursuance of subsection one of this section." Sections 5. The following sections 49F to 49J are inserted in 49F to 49J. the Principal Act after section 49E previously inserted, namely:- Employer to "[49F.] At the time of paying to the employee any ~ te~ ~ ~~ to salary or wages from which a deduction in accordance employee. with the provisions of this Part has been made, the employer, or person making the payment on his behalf, shall deliver to the employee adhesive tax stamps denoting the amount deducted. Penalty : Not less than one pound or more than twenty pounds. Employee [49G.] (1.) Every employee frnm whose salary or itnoitaifaflix and wages a deduction is required to be made under this stamps in Part shall- book. (a) Provide and keep a book of convenient size and shape for the purpose of affixing therein tax stamps issued to him by his employer; and

1941. INCOME TAX. Income Tax Assessment, Et'c., Act. 89 (b) Forthwith after receiving tax stamps in accordance with this Part- (i.) Securely affix the tax stamps to a clear space on a page of the book which has not already had a stamp affixed on the other side of the page; and (ii.) Write in ink on every tax stamp so affixed his name or initials and the date of payment. Penalty: Not less than one pound or more than twenty pounds. (2.) Notwithstanding anything contained in sub- paragraph (ii.) of paragraph (b) of the last preceding subsection, an employer may, with the authority of the Commissioner, deliver to an employee tax stamps marked in such manner as the Commissioner approves, in which case the provisions ofthat sub-paragraph shall not apply. [49H.] (1.) Every employee from whose salary or Application wages a deduction is made in accordance with this Part ~ ! a: : ; s in shall, after receipt of notice of his assessment and not payment later than the date specified in that notice as the last of tax. day for the payment of tax, produce to the Commissioner the pages of the book to which the tax stamps are affixed and the Commissioner shall forthwith deface the tax stamps and credit the amount represented by the face value of those stamps in payment or part payment of any tax payable by the employee. (2.) If there is no tax payable by the employee or if the amount represented by the face value of the stamps so produced is greater than the tax payable by the employee, the Commissioner shall pay to the employee an amount equal to the face value of the stamps or an amount equal to the difference between that face value and the tax payable by the employee, as the case maybe. (3.) If the amount represented by the face value of the stamps so produced is less than the amount of tax payable by the employee- (a) The Commissioner shall apply the amount represented by the face value of the stamps in payment, so far as that amount extends, of such tax payable by the employee as the -Commissioner determines and that amount

90 INCOME TAX. Income Tax Ass:essment, Etc., Act. 5 GEO. VI. No. 2, shall be deemed to have been paid by the employee in satisfaction to that extent of that tax and not otherwise; and (b) The employee shall be liable, or continue to be liable (as the case may be) to pay the balance of the tax payable by the employee on the date or dates specified in the notice or notices of assessment, and all the provisions of this Act relating to the collection and recovery of tax shall apply to that balance. (4.) The Commissioner shall retain all tax stamps produced to and defaced by him for such period as he thinks fit after which he shall cause them to be destroyed. Production of book when required. [49J.] The Commissioner or any officer thereto authorised in writing by the Commissioner may, at any time, by notice in writing, require an employee to produce the book kept by him together with the stamps affixed, and the employee shall produce the book and stamps accordingly at the place and within the time specified in the notice. Penalty: Not less than one pound or more than twenty pounds." Section 49x. 6. The following section 49K is inserted in the Principal Act after section 49J previously inserted, namely:- Group "[49K.] (1.) If an employer and his employees, or an schemes. employer and any class of his employees, desire to enter into any arrangement providing for deductions made under this Part to be dealt with otherwise than by delivering and affixing tax stamps as provided in this Part, the Commissioner may, in his discretion, notify the employer in writing that he approves of the terms of the arrangement, and thereafter, unless and until the Commissioner withdraws his approval, the employer, in lieu of delivering tax stamps in accordance with the provisions of this Part, shall deal with the deductions in accordance with the terms of the arrangement. (2.) If the Commissioner is of opinion that, owing to special circumstances connected with the nature of the employment of any class or classes of employees, it is not desirable that their employer should deliver to them tax stamps in accordance with the provisions of this Part, he may notify the employer in writing that, in lieu of delivering tax stamps in accordance with the provisions of this Part, the employer shall deal with

INCOME TAX. 1941. Income Tax Assessment, Etc., Act. deductions made under this Part in a manner specified in the notice, and thereafter, unless and until the Commissioner cancels the notice, the employer shall deal with those deductions accordingly. Penalty : Not less than one pound or more than twenty pounds. (3.) Where, by reason of the provisions of subsection one or two of this section, an employer does not deliver tax stamps in respect of any deductions made under this Part, the amounts of those deductions shall be debts due to the King on behalf of the State payable within such times or at such intervals as the Commissioner appoints and the employer shall, within seven days after any amount becomes payable, pay that amount to the Commissioner. Penalty: Not less than two pounds or more than one hundred pounds. (4.) The sum of the amounts so deducted from the salary or wages of any employee during any year of tax up to and including the date specified in the notice of assessment as the last day for the payment of tax payable by the employee, or, if no notice of assessment is issued, up to and including the last day of the year of tax, shall, for all the purposes of this Part, be treated as if it represented the face value of tax stamps produced by the employee in accordance with subsection one of section 49H of this Act. (5.) Every employer to whom the Commissioner has issued a notice in pursuance of subsection one or two of this section- (a) Shall furnish to the Commissioner, at such times or intervals as the Commissioner directs, such statements, lists, or other information in respect of the period during -yhich the notice is in force as the Commissioner directs; and (b) Shall, at such times as the Commissioner directs, issue to any employee from whom any deduction has been made under this section a certificate showing the amount deducted during such period or periods as the Commissioner directs. Penalty: Not less than one pound or more than twenty pounds." 91

92 INCOME TAX. Income Tax Assessment, Etc., Act. 5 GEO. VI. No. 2, New s. 49L. 7. The following section 49L is inserted after section 49K of the Principal Act as previously inserted by this Act, namely :- Certificate of exemption. " [49r...] (1.) The Commissioner may issue to any employee a certificate that no deductions for the purposes of this Part need, during the period specified in the certificate, be made from the salary or wages of that employee. (2.) During the period specified in the certificate the provisions of sections 490 and 49D of this Act shall not apply to an employer to whom the certificate is exhibited in respect of the employee named in the certificate. (3.) The Commissioner may, at any time, cancel any certificate issued under this section, and, within twenty- one days after the Commissioner has notified him of any such cancellation, the person named in the certificate shall return the certificate to the Commissioner. Penalty: Not less than one pound or more than twenty pounds. (4.) A person shall not- (a) Alter any certificate issued under this section or exhibit to any employer any such certificate which has been altered without the authority of the Commissioner; (b) Without lawful excuse, proof whereof shall lie upon him, have in his possession any colourable imitation of any such certificate; or (c) Falsely pretend to be the person named in any such certificate or cause any employer to refrain from making any deduction from his salary or wages by the production of any document other than a certificate issued to him under this section and for the time being in force. Penalty: Not less than one pound· or more than fifty pounds." News. 49M. 8. The following section 49M is inserted after section 49L of the Principal Act as previously inserted by this Act, namely :- Payment of tax by tax "[49M.] Any taxpayer, not being an employee, may~ stamps by at any time, purchase tax stamps from any person licensed poethrseorntshan or authorised by the Commissioner to sell tax stamps employees. and the provisions of this Part shall, in respect of any

INCOME TAX. 93 1941. Income Tax Assessment, Etc., Act. tax stamps so purchased, apply to that taxpayer as if he were an employee and the tax stamps so purchased had been delivered to him in accordance with section 49F of this Act." 9. The following sections 49N to 49u are inserted in Sections the P rm· C.lpa1 Ac t at f er sectI . On 49 M prevI.Ously ' mser t ed, 49N to 49u. namely:- and " p[ 14a9cNed. ] Tohne sCao1emmtaisxsiosntaemr sphsall 0 fcaususechto dbeeS. plgrnespaarnedd S ~ pl o rOe m pn m ea i rr s es . haanlld denominations as he thinks fit : issue stamps. Provided that the Commissioner shall not cause to be prepared andlor placed on sale such tax stamps while any arrangement with the Commonwealth remains in force if such arrangement provides for the use for the purposes of this Part of tax stamps prepared and placed on sale under Part VI., Division 2, of the *lncome Tax Assessment Act 1936-1940 of the Commonwealth. [49p.] (1.) Without affecting the generality of the Use of provisions of t" The Commonwealth and State 1ncome ~ ~ :r: o: x Taxes Agreement Acts, 1924 to 1933," the Governor in st~ mps by Council may arrange with the Governor-General of the thIS State. Commonwealth for- (a) The use, for the purposes of this Part, of tax stamps caused to be prepared and placed on sale by the Commonwealth Commissioner of Taxation under the provisions of the *lncome Tax Assessment Act 1936-1940 of the Commonwealth; (b) The affixing in one book of tax stamps delivered to an employee for the purposes of this Part and for the purposes of Part VI., Division 2, of the *1ncome Tax Assessment Act 1936-1940 of the Commonwealth; (c) The allocation as between the Commonwealth and the State of the proceeds of sales of such tax stamps and of deductions made by employers and paid to the Commissioner pursuant to this Part or to the *1ncome Tax Assessment Act 1936-1940 of the Commonwealth; * No. 27, 1936, and amending Acts. t 15 G. 5 No. 15 and amending Acts. See v. 4, pp. 128 et seq.

94 INCOME TAX. Income Tax Assessment, Etc., Act. 5 GEO. VI. No. 2, (d) The application of tax stamps and/or certificates of deductions by employers produced by employees or taxpayers and allocation of the value thereof as between Commonwealth tax and State tax; (e) The allocation as between the Commonwealth and the State of the expenses of carrying out the arrangement. (2.) The provisions of *" The Commonwealth and State [ncome Taxes Agreement Acts, 1924 to 1933," shall extend and apply for the purposes of this section. (3.) Any application of tax stamps or certificate of deductions by an employer or allocation of the value thereof as between Commonwealth tax and State tax made by the Commissioner pursuant to any such arrangement shall notwithstanding anything in this Act or any law to the contrary be binding on the employee or taxpayer. Proceeds of [49Q.] All moneys received in respect of sales of ssatalemsposf. tax tax stamps caused to be prepared by the Commissioner or received under an arrangement made by the Governor in Council with the Governor-General of the Commonwealth pursuant to section 49p of this Part shall form part of the Consolidated Revenue Fund, and there shall be payable out of that fund (which is, to the necessary extent, hereby appropriated accordingly)- (a) Such amounts as the State becomes liable to pay to the Commonwealth in accordance with such arrangement; and (b) Such amounts as the State becomes liable to pay to any taxpayer entitled thereto in accordance with the provisions of this Part. Dealing in [49R.] (1.) Unless licensed or authorised by the tax stamps Commissioner so to do, a person shall not sell or offer prohibited. for sale any tax stamp which the Commissioner has caused to be prepared and placed on sale pursuant to section 49N of this Part. (2.) Except in accordance with the provisions of this Part, a person shall not dispose of any tax stamp or obtain any tax stamp otherwise than by purchase from a person licensed or authorised by the Commissioner to sell tax stamps. * 15 G. 5 No. 15 and amending Acts. See v. 5, pp. 128 et seq.

INCOM.E TAX. 95 1941. Income Tax AsseSSl1tent, Etc., Act. Penalty : Not less than two pounds or more than one hundred pounds. [498.] (1.) The Commissioner, or any officerqommis- authorised in that behalf by the Commissioner, maY~ ~ ~ ~ ~ e~ : ~ require any person to deliver to him any tax stamps stamps held which are in that person's possession and which are held~ ~ o~ ~ ~ ~ lfof by him on behalf of some other person, and any person per~ on to be SO required shall deliver the tax stamps to the delivered up. Commissioner or authorised person accordingly. Penalty : Not less than one pound or more than fifty pounds. (2.) Where any tax stamps are so delivered the Commissioner shall issue a receipt to the person delivering them and, upon the application of the employee to whom the tax stamps were delivered by his employer, shall either credit or pay to that employee, as the case requires, the amount represented by the face value of the stamps. [49T.] If the Commissioner suspects that any tax Production stamps produced to him have been obtained in o{ tax contravention of any provision of this Part, he may ~; ;:~ ;erly retain those stamps for such period as he thinks fit and obtained. shall not apply them in satisfaction of any tax or make any payment in respect of them unless and until he is satisfied as to the identity of the employee (if any) to whom the stamps were lawfully delivered by his employer. [49u.] If an employee satisfies the Commissioner Destroyed that any tax stamps delivered to him by his employer tax stamps have been destroyed, and as to the face value of those tax : :~ te; as if stamps, the Commissioner may apply an amount equal produced. to that face value in satisfaction of any tax payable by the employee, or make a payment in respect thereof, in the same manner as if the stamps had been produced to and defaced by the Commissioner." 10. The following sections 49v to 49y are inserted Sections in the Principal Act after section 49u previously 49v to 49y. inserted, namely:- " [49v.] A person shall not- Offences. (a) Present any document under the hand of the Commissioner for the purpose of obtaining credit with respect to, or a payment of, the

96 INCOME TAX. Income Tax Ass.essment, Etc., Act. 5 GEO. VI. No. 2, value of any tax stamps which have been delivered in respect of the salary or wages of some person other than the person named in the document; (b) Present any document under the hand of the Commissioner and pretend to be the person named therein for the purpose of obtaining credit with respect to, or a payment of, the value of tax stamps; (c) Endeavour to obtain for his own advantage or benefit credit with respect to, or a payment of, the value of tax stamps which have been delivered in respect of the salary or wages of some person other than himself; (d) Fraudulently remove or cause to be removed from the stamp book of any employee any tax stamps affixed therein or affix a tax stamp so removed to any other book; or (e) Utter any tax stamp which has to his knowledge been fraudulently removed from any book to which it has previously been affixed. Penalty : Not less than two pounds or more than one hundred pounds, or imprisonment for twelve months. Joinder of charges under this Part. [49w.] (1.) Charges against the same person for any number of offences against the foregoing provisions of this Part may be joined in one complaint 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. (2.) Where more than one such charge is included in the same complaint, particulars of each offence charged shall be set out in a separate paragraph. (3.) All charges so joined shall be tried together unless the court deems it just that any charge should be tried separately and makes an order to that effect. (4.) If a person is found guilty of more than one offence, the court may, if it thinks fit, inflict one penalty in respect of all offences of which he is found guilty, but that penalty shall not exceed the sum of the maximum penalties which could be inflicted if penalties werE imposed for each offence separately.

INCOME TAX. 97 1941. Income Tax Assessment, Etc., Act. [49x.] Notwithstanding anything contained in this Offences by Part, a member of a partnership shall not be punished partners. for any contravention of any of the foregoing provisions of this Part for which another member of that partnership has already been punished. [49Y.] (1.) Any person who, without lawful authority Forging (the proof whereof shall lie upon him)- :::ps or (a) Makes, sells, uses, utters, or has in his possession any counterfeit tax stamps; or (b) Makes, sells, uses, or has in his possession any die, plate, or other instrument for printing or making tax stamps, shall be guilty of an indictable offence and liable to imprisonment, with or without hard labour, for any term not exceeding five years. (2.) Any counterfeit tax stamp, die, plate, or instrument made, sold, used, uttered, or had in possession in contravention of this section shall be forfeited to the King." INCOME (STATE DEVELOPMENT) TAX. See LABOUR. INDUSTRY, PEANUT. See PRIMARY PRODUCE. INTOXICATING LIQUOR. See LIQUOR. D