Income Tax (Commonwealth) Collection Act 1923 (NSW)

INCOME TAX (COMMONWEALTH')

COLLECTION ACT.

An Act to authorise the making of arrangements between the Commonwealth (if Australia and the State of New South AValcs n--peeling the collection bv the State Commissioner of Taxa- tion of the State of the income tax payable in the State under Commonwealth hnv, and respecting

Act No. 10, 11)23.

respecting the transfer to the Public Service of the State of certain Commonwealth officers and their retransfer from the service of the State to the service of the Commonwealth, and the rights and obligations of such officers ; to ratify

a certain agreement, and make certain pro­

visions as to compensation of officers of the Public Service who may be retired in pursuance of the agreement; to amend the Income Tax Management Act, 1912, and certain other Acts; and for purposes con­ nected therewith. [Assented to, 26th October,

1923.]

WH E R E A S the Prime Minister of the wealth and the Premier of the State of New	South Wales have entered into an agreement (in this
Act referred to as " t h e ag reement" ) a copy of which is set out in the Schedule to this A c t : And whereas it
is desirable to ratify the agreement and provide for its
being carried into effect: Be it therefore enacted by the King 's Most Excellent Majesty, by and with the advice and consent of the Legislat ive Council and Legis la t ive Assembly of New South W a l e s in Par l ia­ ment assembled, and by the authori ty of the same, as follows:—
1 . (1) This Act may be cited as the " Income Tax (Commonwealth) Collection Act, 1923."
(2) This Act shall be deemed to have commenced on the thirtieth day of June , one thousand nine hundred
and twenty-three.

Common­

(3) This Act shall bind the Crown.

2 . In this Act, unless the contrary intention appears—

" A r r a n g e m e n t " means an arrangement made or

deemed to be made in pursuance of section

three of this Act.

" S t a t e " means the State of New South Wales .

3 . (1) The State may arrange with the Common­ wealth for the collection by the Commissioner of Taxation of the State of the whole or part of the income tax payable in the State under Commonwealth

law. (2)

(2) Any agreement relat ing to any such arrange­ ment may make provision for any other matters necessary or convenient to he provided for carrying out the arrangement, including the transfer of officers from the service of the Commonwealth and their retransfer from the service of the State to the service of the Commonwealth, and the r ights and obligations of such officers.

(3) The agreement, a copy of which is set out in
the Schedule to this Act, shall be deemed to be an
arrangement made in pursuance of this section.

(4) The State may, with the consent of the Commonwealth, vary any such arrangement or any agreement relat ing thereto.
(5) Any such arrangement, agreement or varia­ tion shall be made in the name and on behalf of the State by the Premier of the State or by some Minister authorised in that behalf by the Governor.
(6) Any such arrangement, agreement or varia­ tion shall be valid and effectual for al l purposes, provided that, except in the ease of the agreement set out in the Schedule to this Act, the arrangement, agreement or variation shall not take effect unless approved by a resolution of each House of Parl iament.
(7) ' If any such arrangement, agreement or varia­
tion is so approved, the Governor shall notify the approval
in the Gazette.

(8 ) Any such arrangement, agreement, or varia­

tion so approved and notified, and the agreement set out in the Schedule to this Act may be carried out, and
effect may be given thereto by the authority of this Act
and notwithstanding the provisions of any other Act.
4 . Notwithstanding the provisions of the Public Service Act, 1902, the present Commissioner of Taxation may continue to hold such office for such period as the
Governor deems advisable.

5 . Notwithstanding the oath of secrecy taken by the Commissioner of Taxation of the State, he may allow any taxation officer thereto authorised in writ ing by the Commonwealth Commissioner of Taxation to inspect any records kept in the income tax office of the State.

6 . (1) The Governor may make regulations, not inconsistent with this Act, prescribing a l l matters which are necessary or convenient to be prescribed for carrying out or giving effect to this Act or to any arrangement thereunder.

(2) The regulations sha l l—

(a) be published in the Gazette ;

(b)	take effect from the date of such publication or from a later date to be specified in the regu­ lations ;
(c)	be laid before both Houses of Parliament within fourteen sitting days of the making thereof if Parl iament is in session, and if not then within fourteen sitting days after the commencement of the next session.

(3) If either House of Par l iament passes a reso­ lution of which notice has been given at any t ime within fifteen sitting days after the regulations have been laid before such House disallowing any regulat ion or part thereof such regulat ion or part shall thereupon cease to have effect.

(4)	The regulations m a y —
(i)	impose a penalty for any breach thereof, and also distinct penalties in case of successive breaches thereof, but no such penalty shall exceed one hundred pounds ;

(ii)   impose also a daily penalty for any continuing breach thereof not exceeding five pounds per day.

(5) Any penalty imposed by the regulat ions may be recovered in a summary manner before a police or

retired in pursuance of the provisions of paragraph	stipendiary magistrate or any two or more justices. 7. (1) There shall be payable to any officer who is
six (a) of the agreement (copy of which is contained in
the Schedule) compensation in the proportion of one
month's pay for each year of service.
(2) The amount so payable to an officer shall not be less than the equivalent of six months' pay provided
that the compensation so payable to any officer shall not
exceed the total of the salary which would have been payable to him had his services been continued at his current rate of salary unt i l he at tained the age of s ix ty
years . (3)

(3) This section shall not apply to an officer who

has at the time his services are dispensed with attained
the age of sixty years .

8 . The compensation payable under the last preceding section shall be in addition to—

(a)	payment in lieu of extended leave due under the provisions of section thirteen of the Public Service (Amendment) Act, 1919 ; and
(b)	the equivalent of the amount of salary which would be payable to the officer for recreation

leave, and which he is eligible to take under

the provisions of the regulations under the
Public Service Act, 1902.

9 . (1) If it appears that the officer who is so retired

is entitled to any pension, retir ing allowance, gratui ty ,
or compensation under any other law (not including Aus- tral ian Soldiers Repatriation Act, 1920-1922, and not including any pension, retir ing allowance, gratui ty or compensation under any Imperial or Dominion war provisions) compensation under this Ac t shall only be allowed upon the officer undertaking not to claim the pension, retiring allowance, gra tui ty or compensation under that other law.
(2) This section shall not be construed to affect the rights of an officer on retirement to refund of his contributions to the Civil Service Superannuation Account under the Civil Service Act, 1884, or to the State Superannuation Fund under the Superannuation Act, 1910, and any Acts amending same, or to both of such funds.

1 0 . The compensation payable under this Act shall not be liable to income tax under any law of the State,

1 1 . A person to whom compensation has been paid in pursuance of this Act shall not be appointed to any position in the Public Service until he has, if so required by the authority making the appointment, paid or agreed to pay into the Treasury an amount equal to the compensation so paid to him, or such proportionate amount as the authority determines.

1 2 . This Act shall not apply to any officer whose:

retirement has been in the nature of a penalty or on account of unsatisfactory service or inefficiency or medical unfitness.

1 3 . Compensation payable under section seven or
paragraph (b) of section eight of this Act shall not

be claimable or recoverable by any person as a matter of right but shall be deemed to be a free gift by the

State.
1 4 . Where any person entitled to compensation under section seven or to the monetary value of recrea­ tion leave as provided in paragraph (b) of section eight

of this Act dies before payment is made the amount so

payable shall not form part of the estate of the deceased and shall not be claimable by the executor or adminis­ trator of the estate but may be paid to the dependents

of the deceased in such proportion and under such

conditions as the Minister approves.

1 5 . The provisions of the eight preceding sections shall not be applied to any officer who has been trans­ ferred to the service of the State from the service of the Commonwealth in pursuance of the said agreement.

S C H E D U L E .

T H E A G R E E M E N T .

AN AGREEMENT made the thirty-first day of July , one thousand nine

hundred and twenty-three, between the Commonwealth of Australia

other part. (hereinafter called the " Commonwealth ") of the one part and the State of New South Wales (hereinafter called the " S t a t e " ) of the

WHEREAS it is desirable in the public interest and to avoid duplication ">f services that the income tax payable from time to time to the

Commonwealth (hereinafter called the " Commonwealth tax " ) and the income tax payable from time to time to the .State (hereinafter called the " State tax ") should so far as practicable be assessed and collected
by the one agency :

And whereas it is necessary that any arrangement for that purpose should preserve inviolate the respective sovereign powers and rights of the Commonwealth and the State :

And whereas the Commonwealth and the State have agreed to cooperate in the collection of the Commonwealth tax and the State

tax under the conditions hereinafter contained :

Now

Now i t is agreed as follows : —

1. The Commonwea l th and the S t a t e ag r ee to col lect the Common­

wea l th t a x wi th in the S t a t e and the S t a t e t ax in the m a n n e r a n d

subjec t to the condi t ions set forth in th i s Agreemen t .

2. ( a ) Sub jec t to this A g r e e m e n t the Commonwea l th t a x and the

S t a t e t a x shal l he collected by an officer a c t i n g for the Common­

w e a l t h a n d the S t a t e ( in th i s A g r e e m e n t referred to a s the " S t a t e

Commiss ioner

(b) The Commonwea l th shal l appoin t the S t a t e Commiss ioner of

T a x a t i o n for the t ime being to be the Depu ty Commissioner for the

S t a t e under the Income T a x Assessment A c t s of the Commonwea l th

(he re ina f t e r ca l l ed the " Deputy Federa l C o m m i s s i o n e r " ) .

3. ( a ) The S t a t e Commissioner in his c a p a c i t y as such Deputy

Fede ra l Commissioner sha l l be responsible to the Common wea l t h Commiss ioner of T a x a t i o n for the due assessment and collection of the Commonweal th t a x and the a d m i n i s t r a t i o n of the l a w s of t h e Common­

w e a l t h r e l a t i ng there to , and shall in re la t ion to such assessment , collec­

tion, and admin i s t r a t i on be free from in ter ference or control by the

S t a t e . The Commonweal th Commissioner of T a x a t i o n shal l de l ega t e

to the S t a t e Commissioner such powers and functions of the Common­ wea l th Commissioner as a re necessary or convenien t for the purpose of t he admin i s t r a t i on in the S t a t e of the l a w s of the Commonwea l th

r e l a t i n g to income t a x ;

( b ) A l l m a t t e r s a r i s i n g in connection wi th the exerc i se b y the

S t a t e Commiss ioner of his powers a n d functions under the l a w s of t he

S t a t e sha l l be de te rmined by h im in accordance w i t h those l a w s a n d

w i thou t in te r fe rence by the Commonwea l th .

( c ) The receipt of money b y a n y person employed in connect ion with the Commonwea l th t a x a n d S t a t e t a x shal l be a s a g a i n s t the Commonwea l th a n d in favour of the S t a t e a. receipt thereof by the Commonweal th and a s a g a i n s t the State; a n d in favour of the Common­

wea l th a rece ip t thereof by the S t a t e .

4. ( a ) The S t a t e shal l t ransfer to the p e r m a n e n t service of the S t a t e

a l l officers who on the first d a y of J u l y , One thousand n ine hundred and twen ty - th ree , we re a n d a t the d a t e w h e n th i s A g r e e m e n t comes in to

operat ion a r e pe rmanen t or p roba t iona ry pe rmanen t officers in the

se rv ice of the Commonwea l th engaged in Income T a x work in the

S t a t e of New South W a l e s (not i nc lud ing officers employed in w h a t is

known as the Cen t ra l Office of the Commonweal th T a x a t i o n B r a n c h ) ;

( b ) Sub jec t to th i s A g r e e m e n t each officer so t r ans f e r r ed—

( i ) shal l be subject in a l l respects to the l a w s of the S t a t e

r e g u l a t i n g the Pub l i c Se rv i ce ; a n d

( i i )	w i t h o u t	p re jud ice	to	the	l a s t preceding	c l ause shal l	p reserve
a l l	h i s ex i s t i ng and	acc ru ing	r i g h t s , a n d	sha l l	be	requi red	to

cont inue to con t r ibu te to the S u p e r a n n u a t i o n F u n d of the Commonwea l th such sums as he would have been l i ab l e to con t r ibu te if he had remained an officer of the Commonwea l th , a n d sha l l be en t i t l ed to retire; from office a t the t ime and on

the pension or r e t i r ing a l lowance which would be pe rmi t t ed

b y the l a w s of the Commonwea l th if his service; wi th the

S t a t e we re a con t inua t ion of h is serv ice w i th the Common­

w e a l t h ; and

( i i i ) shal l so far a s p rac t i cab le be employed on du t i e s of a s t a t u s

not less than the s t a t u s of the du t i e s now performed by him ;

(c)

(c) A n y cont r ibu t ions to a n y S u p e r a n n u a t i o n F u n d of the

Commonwea l th which would bu t for t h i s A g r e e m e n t be p a y a b l e b y the

Commonwea l th in respect of an officer so t r ans fe r red shal l be p a y a b l e

by the assessment a n d S t a t e , a n d shal l be inc luded in the cost of a d m i n i s t r a t i o n ,

col lect ion of t axes , a n d for t h i s purpose the a n n u a l

sum so p a y a b l e by the S t a t e sha l l be d e t e r m i n e d by the a c t u a r y

appoin ted unde r the S u p e r a n n u a t i o n A c t , 1022, of the C o m m o n w e a l t h ;

(d) On the de t e rmina t ion of th i s A g r e e m e n t from a n y cause

wha teve r , the Commonwea l th shal l r e t rans fe r to t he Commonwea l th

Se rv ice a l l officers of the S t a t e who have , p u r s u a n t to th i s A g r e e m e n t ,

been t r ans fe r red from the Commonwea l th S e r v i c e to the S t a t e S e r v i c e ,

and	the	S t a t e sha l l pe rmi t	such	re t rans fe r ;
( e )	whe re —

( i ) an officer so t rans fe r red from the Commonwea l th Se rv i ce to

the S t a t e S e r v i c e has , w h i l e in the S t a t e Se rv i ce , been

promoted to a h ighe r posit ion in the T a x a t i o n Office not

p rev ious ly occupied by the officer so t r ans fe r red , or to	a n y
posit ion	in the S t a t e Se rv i ce other t han a posit ion in the
T a x a t i o n	Office ; and

( i i )	the officer	so promoted	e lec ts to r ema in in the S t a t e Se rv ice ;
a n d

( i i i ) he sha l l not be re t rans fe r red the S t a t e des i res to re ta in the serv ices of such officer :

to the Commonwea l th S e r v i c e in accord­

ance wi th	the	l a s t	p reced ing	p a r a g r a p h	but	the	Commonwea l th	shal l
t ransfer	to	the	C o m m o n w e a l t h	Se rv ice in	his	p lace	ano the r	S t a t e

officer holding a posit ion of equal s t a t u s and w i th s i m i l a r d u t i e s to t h a t from which the first-named officer was promoted if there be a n y such officer a n d the S t a t e shal l pe rmi t such t r a n s f e r : P rov ided tha t in

respect of a n y officer so r e m a i n i n g in the S t a t e Se rv i ce a l l con t r ibu t ions

made by h im to the Supe rannua t i on F u n d of the Commonwea l th a n d

the sum represen t ing the l i a b i l i t y of the Commonwea l th in respect of

such officer to such Fund a s a sce r t a ined b y the cer t i f ica te of the

a c t u a r y appoin ted under the S u p e r a n n u a t i o n Act , 1922 , aforesaid,

shal l be be a l l owed to con t r ibu te paid to the S t a t e S u p e r a n n u a t i o n F u n d , a n d such officer sha l l

to such fund a n d to count h is serv ice w i t h

t he Commonwea l th a s if i t	were serv ice w i t h the S t a t e for	such
purpose.

5. Office in the S t a t e a n d ( a ) A l l pe rmanen t officers of the S t a t e employed in the T a x a t i o n

a l l Commonwea l th officers t r ans fe r red to the

S t a t e p u r s u a n t to t h i s A g r e e m e n t sha l l be m e r g e d in to a n d form one

combined staff.

(b ) The S t a t e sha l l p rovide a l l office accommodat ion requi red ,

6. combined ( a ) If by reason of a n y economy effected by t h i s A g r e e m e n t the

s taff g r e a t e r t han is r equ i red for the work to be performed

a n d r e t r e n c h m e n t is necessary , the n u m b e r a n d g r a d e s of officers to be

d ispensed w i t h s h a l l , a s be tween the officers who, pr ior to th i s A g r e e ­

ment , were respec t ive ly S t a t e a n d C o m m o n w e a l t h officers, be a s far a s

p r ac t i cab l e propor t ionate to the number s of t he respec t ive staffs

i m m e d i a t e l y prior to th i s A g r e e m e n t ;

(b ) If the employmen t of a n y person t r ans fe r red to the se rv ice

of the S t a t e p u r s u a n t to c l ause 4 ( a ) hereof is t e r m i n a t e d by or for t he

S l a t e because h i s employmen t is not necessa ry , or a reduc t ion in the number of employees is necessary on account of d iminu t ion in the work to be performed, or of a n y o ther l i k e reason, the S t a t e wi l l not be l i ab l e

for

for a n y compensat ion a l l o w a n c e or other benefit a r i s ing to such person

on such t e r m i n a t i o n , but the same wi l l be provided by or for	the
Commonwea l th .

7. Should a n y d i spu te or difference a r i se b ; t w e e n the Commonwea l th

Commiss ioner and the S t a t e Commiss ioner on a n y a d m i n i s t r a t i v e m a t t e r

a r i s ing under th i s A g r e e m e n t , and not o the rwise herein provided for,

t he T r e a s u r e r s of t he Commonweal th ami the S t a t e respec t ive ly shal l

confer a n d in the even t of the i r f a i lu re to ag ree on the ma t t e r i t shal l be referred for se t t l ement to some independent person selected for t h a t purpose by the Treasure r s , and the decision of tha t person shal l be final and conclusive.

8. In order to secure un i fo rmi ty throughout the Commonwea l th of

the in t e rp re t a t ion of the l a w s of the Commonwea l th t lx; S t a t e Com­

miss ioner shal l app ly the r i d i n g s of the Commonwea l th Commiss ioner

in the in t e rp re ta t ion of the l aws of the Commonweal th .

i).	Noth ing in th is	A g r e e m e n t shal l be	deemed to res t r i c t or	impede
the Commonweal th	or	the S ; a t e	in the exerc ise of i ts r i g h t s	a n d

powers under the Cons t i tu t ion of the Commonwea l th or the S t a t e and the l aws of the Commonweal th or the S t a t e now or hereaf ter in force.

10. ( a ) The cost of collection of the Common wea l th t a x and the
S t a t e t a x as provided for in this Agreemen t sha l l in each financial y e a r

ending th i r t i e th J u n e be apport ioned and borne by the Commonweal th

and the S t a t e respec t ive ly on the basis of the ac tua l cost of performing

the worlc in connection with I lie admin i s t r . i l ion , assessment , and collec­

tion of the respective; taxes , and the cost of admin i s t r a t i on , assessment , collect ion, and recovery of the (Commonwealth t ax , assessable for periods up to and inc lud ing the th i r t i e th .1 une. one thousand n ine hundred ami twen tv - th ree , shall lie borne solely by tha Commonweal th ;

(h) The said cost of collect ion shal l inc lude —

( i ) s a l a r i e s missioner and officers ani l emp lov . e s of the' Crown Law I >cpartment of the S t a t e :	of	officers and	employees i nc lud ing the' State '	Com­
( i i )	all	re levant	cont ingent	expend i t u r e ;

( i i i ) a l l o ther e x p e n d i t u r e proper ly re fe rab le to the assessment and

collection of the s a i l t axes , i nc lud ing ren t of and in teres t p a y a b l e on the c st of premises occupied for the assessment and collection of the sa id t a x e s and costs and expenses of lega l proceedings for recovery ;

( c ) The sa id e-ost and the apport ionmenl thereof shal l be deter­

mined by a g r e e m e n t between the Commonwea l th Commiss ioner ami the S t a t e Commissioner , and in default of agreement shall he deter­ mined by a, person nominated by the two Commissioners , or, if t hey cannot agree' on a nominat ion shal l ba de t e rmined by the Audi tor- General for the Commonwea l th . The S t a l e Commissioner will from t ime to t ime furnish the Commonwea l th Commissioner such information as the Commonwea l th Commissioner m a y require to enable him to a sce r t a in the amount of such cost and the proper appor t ionment

thereof ;

( d ) The e s t ima ted proport ion of the said cost p a y a b l e by the

Commonweal th shall be paid te> the S t a t e in q u a r t e r l y in s t a lmen t s

d u r i n g each financial y e a r ani l sha l l ba ad jus ted a t the end of such

financial y e a r .

11. In order tha t the work of assessment a n d col lect ion of t axes

m a y proceed exped i t i ous ly a n d economica l ly the Governments of the

C o m m o n w e a l t h and the .State r e spec t ive ly w i l l submi t to P a r l i a m e n t

before the t h i r t i e t h d a y of Sep tember in each y e a r or a s e a r l y as

p r a c t i c a b l e t he rea f t e r—

( a ) proposed l a w s f ixing respec t ive ly the r a t e s of the Common­

w e a l t h t a x a n d the S t a t e t a x for t h a t y e a r ; a n d

(b )	proposed	a m e n d m e n t s of the income t a x l a w s of the	Common­
w e a l t h	a n d	S t a t e	respec t ive ly ;

a n d endeavour to h a v e those proposed	l a w s dea l t w i t h by the	respec t ive
P a r l i a m e n t s	wi thout	d e l a y .

12. T h e S t a t e Commiss ioner in h is c a p a c i t y as D e p u t y Federa l

Commiss ioner shai l in the m a n n e r requi red from t ime to t ime by the

Commonwea l th T reasu re r deal w i th and account for a l l C o m m o n w e a l t h

t a x col lected p u r s u a n t to th i s A g r e e m e n t .

13. "With a v iew to secur ing the g rea t e s t possible economy from the

opera t ion	of t h i s A g r e e m e n t	a n d	to	s impl i fy the	procedure	in	re la t ion
to the fu rn i sh ing	of	t a x a t i o n	r e t u r n s	a n d	informat ion	the	Common­

w e a l t h a n d the S t a t e a g r e e a s far a s p r ac t i cab l e to have uniform

Income T a x l a w s enac ted by the respec t ive P a r l i a m e n t s : the respect ive

pa r t i e s b y the i r Governments u n d e r t a k e to endeavour to h ave these

l a w s enac ted not l a t e r t han the th i r t i e th d a y of Sep tember , one

thousand n ine hundred and twen ty - th ree .

14. ( a ) There sha l l be prepared a j o in t form of Income T a x r e tu rn

s u i t a b l e for both Commonwea l th a n d S t a t e t a x purposes in the S t a t e

of New S o u t h W a l e s :

(b ) R e t u r n s furnished in the jo in t foini by t a x p a y e r s d e r i v i n g

income from sources in the S t a t e of New South W a l e s on ly shal l be

accepted as sufficient so far as form is concerned ;

(c) T a x p a y e r s d e r i v i n g incomes from sources in the S t a t e of New-

W a l e s	a n d	e l sewhere in	A u s t r a l i a wi l l	be	r equ i r ed	to	furnish	r e t u r n s
in	the	C o m m o n w e a l t h	prescr ibed	form	a t	the	Commonwea l th	C e n t r a l

Income T a x Office, a n d . in add i t ion , r e tu rns in t i e j o in t form a t t h e office in the S t a t e of New Sou th W a l e s in respect of income der ived from sources in the S t a t e of New South W a l e s on ly ;

( d ) A n y officer of t he S t a t e T a x a t i o n Depa r tmen t there to

au thor i sed in w r i t i n g by the S t a t e Commissioner may inspect a n y

records kep t in the Cen t ra l Office of the Commonwea l th D e p a r t m e n t of

Taxa t i on , and a n y officer of the Commonwea l th Department of T a x a t i o n

there to au thor i sed in w r i t i n g by the Commonwea l th Commiss ioner m a y

inspect a n y records kepi in the Income T a x Office of the S t a t e of New-

S o u t h W a l e s , and the S t a t e u n d e r t a k e s to enac t a n y necessa ry l eg i s l a t ion

for th i s purpose.

15. ( a ) P rosecu t ions f o r offences a g a i n s t the l a w s of the State;

r e l a t i n g to the S t a t e t a x sha l l be conducted	by	and	a t	the	expense of
the S t a t e , a n d	prosecut ions	for	offences	a g a i n s t the l a w s of the	Common­

w e a l t h r e l a t i n g to the Commonwea l th t a x sha l l be conducted a t the

expen=e of the Comi i ionwea l th and m a y be conducted by the S t a t e

Commiss ioner in his c a p a c i t y of D e p u t y F e d e r a l C o m m i s s i o n e r : Pro­ v ided tha t when the Commonwea l th Commiss ioner and the S t a t e Commiss ioner a g r e e or h a v e ag reed tha t the act or omission cons t i tu t e s a n offence u n d e r both the law of t he Commonwea l th and the l a w of the S t a t e , or t h a t the decision of the ques t ion under the law of o n e

p a r t y is l i k e l y to be useful in the a d m i n i s t r a t i o n of the l aw of the o the r

pa r t y , the expense of t he prosecut ion sha l l be borne j o i n t l y j ( b )

(b) "When an ant or omission cons t i tu tes an offence unde r both

the l a w of the Commonwea l th and the l aw of the S t a t e —

( i )	a s a genera l rule the prosecut ion	shal l be i n s t i t u t ed	under	the
l aw	which	provides	the	g r e a t e r p e n a l t y ;

( i i ) a n y mone ta ry p e n a l t y recovered sha l l be pa id in to the Con­

sol idated R e v e n u e of t he p a r t y unde r whose law the prosecution

is i n s t i t u t ed ; and

( i i i )    the p a r t y into whose revenue the pena l ty is pa id sha l l p a y or c redi t to the other p a r t y one-half of the amoun t of the pena l ty ;

( i v ) the expenses of such	prosecution	sha l l be shared e q u a l l y by
the Commonwea l th	and	the S t a t e ;

(c) W h e n an act or omission cons t i tu tes an offence under one

law only a n y mone ta ry pena l ty recovered sha l l be paid into the Consol ida ted R e v e n u e of the p a r t y unde r whose law the prosecution is

i n s t i t u t ed and be re t a ined whol ly by t h a t pa r ty .

W h e r e by reason of a n y ac t , defaul t or omission of a t a x p a y e r a sum has been collected a s p e n a l l y or add i t iona l tax by w a y of p e n a l t y (not be ing a pena l ty imposed by a Cour t ) such sum shal l be app l ied a s follows :—

1G.

(a)	If the sum is recoverable under one law only, it shall be
r e t a ined whol ly by the p a r t y under whoso l a w it is recovered;

or

(b)	if the sum is recoverable under both the law of the Common­ weal th and the law of the S t a t e , i t sha l l lie d iv ided propor­ t i o n a t e l y accord ing to the amount of p e n a l t y between the
Commonweal th a n d the S t a t e .

17. If the t a x p a y e r at a n y t ime p a y s less (ban the full amoun t due

a n d p a y a b l e by him for Commonwea l th t a x and S t a t e t a x the a m o u n t

paid shall (unless t he t a x p a y e r o therwise d i r ec t s ) be credi ted to the

Commonweal th and the S t a t e respec t ive ly pro r a t a to the full amount

then	due and p a y a b l e by the	t a x p a y e r to the Commonwea l th	and	the
S t a t e .

18. No appeal a g a i n s t a n assessment under the law of the Common­ w e a l t h shal l he referred to a ( ' o u t by the S t a t e Commissioner in his

c a p a c i t y of Deputy Federal Commissioner , but eve ry such appeal shal l

be submi t t ed by him for considerat ion of the Commonwea l th Commis­

s i o n e r :	P rov ided	tha t	noth ing	herein	contained	shal l	p rec lude	the
S t a t e	Commiss ioner	in	such	c a p a c i t y as	aforesaid	from	d e a l i n g	wi th

object ions.

19. ( a ) The Common weal th will by i ts Government t a k e a n y ac t ion

w i t h i n i t s power to ob ta in such a m e n d m e n t s of a n y l a w s of t he

Commonwea l th as may be necessary or a d v i s a b l e t o enab le t i n s

Agreemen t to be ful ly and effectively performed on i t s par t ;

( b ) The S t a t e w i l l by i ts Government t a k e a n y ac t ion wi th in i t s

power to obtain such a m e n d m e n t s of a n y of the l a w s of the S t a t e a s

m a y be necessary o r a d v i s a b l e to enab le th is A g r e e m e n t t o be fu l ly

a n d effectively performed on i t s par t .

20. A n y notice to be g iven by e i ther p a r t y t o the o ther under this A g r e e m e n t shal l be deemed to have been d u l y g i v e n if s igned b y the Pr ime Min i s t e r o r the Premier as t in ' case may be, on behalf of the p a r t y g i v i n g it, and sent by prepa id post addressed t o the Premier or

P r i m e Min i s t e r a s the case m a y be, on behalf of the other p a r t y .

•21.

21. Tliis Agreement shall come into operation on the first day of July, one thousand nine hundred and twenty-three, and shall continue in force for a period of five years, and thereafter until the expiration of not less than six calendar months' notice in writing by either party of intention to terminate it.

As witness the hand of the Prime Minister of the Commonwealth of Australia for and on behalf of tlie said Commonwealth, and the hand of the Premier of the State of New South Wales for and on behalf of the said State, the day and year first above-written.

Signed by the Prime Minister of the i

Commonwealth of Australia for
and on behalf of the said Com- ' S. M. BRUCE.

monwealth in the presence of—

EARLE PACE. I

Signed by the Premier of the Stated

of New South Wales for and on
behalf of the said State in the -GEORGE VT. FULLER.

presence of —

F. C. (!. TREMLKTT, J .P. '