Income Tax (Management) Amendment Act 1940 (NSW)
INCOME TAX (MANAGEMENT) AMEND-
MENT ACT.
Act No. 34, 1940.
An Act to amend the Income Tax (Management) Act, 1936, in certain respects; to validate certain matters; and for purposes connected therewith. [Assented to, 15th November, 1940.]
| BE it enacted b y the King 's Most Excellent Majesty, lative Council and Legislative Assembly of New South by and with the advice and consent of the Legis | Wales in Par l iament assembled, and by the au thor i ty of |
| the same, as follows :— |
1. This Act may be cited as the " I n c o m e Tax (Man
agement) Amendment Act, 1940."
2. The Income T a x (Management ) Act, 1936, as
amended by subsequent Acts , is amended—
(a) by omit t ing from p a r a g r a p h (p) of section six teen the word " t h i r t y - n i n e " and by inser t ing
in lieu thereof the word " f o r t y - t w o " ; (b) by inserting at the end of the same section
the following new p a r a g r a p h : — (x) in the case of any person enlisted in or appoin ted to the naval , mi l i ta ry or a i r forces of the Commonwealth or any p a r t of the K i n g ' s dominions or of any Ally of Grea t B r i t a i n for service outside Aus t ra l i a du r ing the p resen t wa r between H i s Majesty the K i n g and Germany and her All ies—the pay and allowances earned by him as a member of those forces du r ing the per iod commencing on the th i rd day of September , one thousand nine hundred and thir ty-nine, or on the date of his en l is tment or appoin tment (whichever is the
la ter l a te r da te) and t e rmina t ing on the da te of his discharge or the te rminat ion of his appo in tmen t :
P rov ided tha t this p a r a g r a p h shall not
apply to any pay or allowance so earned du r ing the y e a r of income by a member of the forces who does not a t any t ime dur ing the per iod commencing on the th i rd day of September, one thousand nine hundred and thir ty-nine, and t e rmina t ing one year af ter the close of t ha t year of income—
(i) in the case of a member of the naval forces of the Commonweal th—serve in a sea-going sh ip ; or
(ii) in the case of a member of the mili t a r y or a i r forces of the Common weal th—embark for service outside Aus t ra l ia .
The amendment effected by th is para g r a p h shall continue in force unt i l twelve months af ter the da te of the issue of a proclamat ion t ha t the w a r between His Majes ty the K i n g and Germany and he r Allies has ceased, and no longer.
| (c) | by omit t ing from p a r a g r a p h | (f) | of section | fifty- |
three the word " t h i r t y - n i n e " and by inser t ing
in lieu thereof the word " f o r t y - t w o " ;
| (d ) | (i) by | omit t ing | from | s u b p a r a g r a p h | (vii) | of |
p a r a g r a p h (a) of subsection one of section eighty-eight the word " a n d " where last ly occur r ing ;
(ii) by inserting at the end of the same para
g r a p h the following new s u b p a r a g r a p h s : — (ix) a public institution or public fund established and main ta ined for the comfort, recrea t ion or welfare of members of the naval , mi l i t a ry or
a i r forces of the Commonweal th ; and
(x) the Commonwealth, when made for purposes of defence.
(e)
(e)
by inserting next after section ninety-four the following new sect ion:—
94A. W h e r e a loss is incurred by a t axpaye r upon the ass ignment or su r render of a lease the following provis ions shall app ly :—
(a)
any loss incurred in the year of income or in any of the three yea r s next preced ing t ha t yea r shall ( to the extent to which i t has not previously been allowed as a deduction) be allowable as a deduction f rom the amount , if any, which would otherwise be in cluded in his assessable income under p a r a g r a p h (b) of subsection one of section ninety-four of th is Ac t ;
(b)
the amount of the loss shall be cal culated by deduct ing the considerat ion for such ass ignment or su r render from the sum of the amounts re fe r red to in p a r a g r a p h s (a) and (b) of subsection one of section ninety-five of this Ac t ;
(c)
a loss shall not be allowable as a deduc tion under this section where the lease (other than a lease of premises in re spect of which a publ ican ' s license or an Aus t r a l i an wine license is for the t ime being in force) ass igned or su r rendered was acquired by the t axpaye r before the sixth yea r p r io r to the year of income in which the lease is ass igned or sur rendered ;
(d) where two or more losses are allowable as a deduction they shall be taken into account in the order in which they were incurred .
(f) by omitting from subsection three of section
ninety-seven the word " l e s s " and by inse r t ing
in lieu thereof the words " n o t m o r e " ; (g)
by inserting at the end of section one hundred and six the following new subsect ion:—
(4) W h e r e the proceeds of the sale of any
shares or securit ies af ter the commencement of
the Income T a x (Management ) Amendment Act ,
1940,
1940, by a t axpaye r who is a res ident a re not included as assessable income under any other provis ion of this Act and the sale was effected out of this S ta te but in Aus t ra l ia , and the shares or securit ies were bought by the t axpaye r in the yea r of income or in any of the two yea r s next preceding tha t year , his assessable income shall include the casual profit, if any, a r i s ing from the sale, unless the t axpaye r is liable to income t ax (o ther t h a n Commonwealth income tax) in respect of such profit in the place out of this S ta te in which the sale was effected.
| (h) | by omitting from subsection three of section one hundred and ten the word " l e s s " and by inser t ing in lieu thereof the words " n o t m o r e " ; |
(i) by inserting at the end of section one hundred
and twelve the following new p a r a g r a p h : —
(c)
if he is a resident—any amount derived from the sale out of this S ta te but in Aus t ra l i a af ter the commencement of the Income Tax (Management ) Amendment Act, 1940, of r igh ts to take up shares or debentures in a company, unless the t axpaye r is liable to income t ax (o ther t han Commonweal th income tax) in respect of such amount in the place out of this S ta te in which the sale was effected.
| (j) | by omitting section one hundred and ninety-one |
| and by inser t ing in lieu thereof the following sect ion:— | |
|
(a) the premiums paid or credited in respect of any such re insurance shall not be— (i) an allowable deduction to the person ca r ry ing on the business of insurance in this S t a t e ; or
(ii)
(ii) included in the assessable income of the person carrying on the business of insurance out of Australia; and
(b) the income of the person carrying on the business of insurance in this State shall not include sums recovered from the person carrying on business out of Australia in respect of a loss on any risk so reinsured.
This section shall apply to assessments for the year of income ended on the thirtieth day of June, one thousand nine hundred and thirty-six (or the accounting period, if any, accepted by the Commissioner in lieu of that year) , and for each year of income thereafter.
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