INCOME TAX ASSESSMENT (BONUS SHARES).
No. 12 of 1926.
An Act to validate certain Refunds of Income
Tax and for other purposes.
[Assented to 26th March, 1926.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and
the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1.This Act may be cited
as the Income Tax Assessment (Bonus Shares) Act 1926.
Definitions.
2.In
this Act, unless the contrary intention appears—
“Income
Tax Assessment Act” means the Income Tax
Assessment Act 1915 and includes that Act as subsequently amended by any
Act or Acts passed prior to the year One thousand nine hundred and twenty-two;
“shares
distributed out of taxed profits” means shares distributed by a company to its
members or shareholders prior to the first day of July One thousand nine
hundred and twenty-one out of the profits of the company upon which it has paid
income tax, as upon undistributed income, under the Income Tax Assessment Act
Validation of refunds.
3.Where the paid-up value
of any shares distributed out of taxed profits has been included in any
assessment under the Income Tax Assessment Act, as being income within the
meaning of paragraph (b) of section
fourteen of that Act, and income tax has been paid on that value, any refund of
the income tax so paid made by the Commissioner prior to the commencement of
this Act shall be deemed to be, and at all times to have been, as lawfully made
as if that value had been exempt from income tax under that Act.
Validation of omissions from assessments.
4.Where the paid-up value
of any shares distributed out of taxed profits has been omitted from any
assessment, under the Income Tax Assessment Act, in which that value is
assessable as income within the meaning of paragraph (b)of section fourteen of
that Act, that value shall be deemed to be, and at all times to have been, as
lawfully omitted as if it had been exempt from income tax under that Act.
Cases where Judgment given.
5.Where the paid-up value
of any shares distributed out of taxed profits has been included in any
assessment under the Income Tax Assessment Act