Income Tax Regulations 1915 (Provisional) (Cth)

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STATUTORY RULES.

1915. No. 213.

 

PROVISIONAL REGULATIONS UNDER THE INCOME TAX ASSESSMENT ACT 1915.

I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby certify that, on account of urgency, the following Regulations under the Income Tax Assessment Act 1915 should come into immediate operation, and make the Regulations to come into operation forthwith as Provisional Regulations.

Dated this twenty-seventh day of October, One thousand nine hundred and fifteen.

R. M. FERGUSON,

Governor-General.

By His Excellency’s Command,

E. J. RUSSELL,

for Treasurer.

PART I.—INTRODUCTORY.

Short Title.

1. These Regulations may be cited as the Income Tax Regulations 1915.

Parts.

2. These Regulations are divided into Parts, as follows:—

Part I.—Introductory.

Part II.—Returns.

Part III.—Payment of Income Tax.

Part IV.—Objections and Appeals.

Part V.—Miscellaneous.

Definition.

3. In these Regulations “the Act” means the Income Tax Assessment Act 1915.

PART II.—RETURNS.

4. Returns in the first Form in the Schedule hereto shall be furnished by all persons resident in Australia, and partnerships, whose total income from all sources in Australia in any year exceeds £156, and by companies and absentees in respect of the whole of their income derived from all sources in Australia.

Provided that the Commissioner may require any other person, trustee, partnership, or company to furnish a return either in the first Form in the Schedule hereto or in any other form. Provided further that the Commissioner may accept a return in a substantially similar form to a prescribed form.

Places for Lodging Returns.

5. (1) Returns shall be lodged at the following places:—

(a) When the income being returned is derived from sources in one State of the Commonwealth only—to the Deputy Commissioner of Taxation in the capital city in that State.

C. 12684.—Price 5d.

(b) When the income being returned is derived from sources in more than one State of the Commonwealth—to the Commissioner of Taxation at Melbourne.

(2) For purposes of these Regulations the territory of the seat of Government shall be deemed to be in the State of New South Wales, and the Northern Territory and the Territory of Papua shall be deemed to be in the State of Queensland.

(3) When income consists of dividends in a company, the dividends shall be deemed to have been derived from a source in the State in which the head office of the company in Australia is situated.

Provided that where a person who is liable to render a return derives part of his income from dividends on shares in companies, and the remainder of his income from sources in one State only, the return shall be lodged with the Deputy Commissioner of Taxation for the State in which the income other than dividends was derived, notwithstanding that the company or companies from which the dividends were received may be located in another State.

(4) When income consists of interest on mortgage the interest shall be deemed to have been derived from a source in the State in which the security for the mortgage is situated. If the interest is paid on a mortgage secured upon property situated in more than one State, it shall be deemed to have been derived from sources in more than one State.

(5) When a person not resident in Australia sells goods in Australia through one or more agents in Australia, each agent shall render a separate return in respect of his principal to the Commissioner at Melbourne.

Balance-Sheets to be Produced.

6. A copy of any balance-sheet and profit and loss account relating to the income being returned shall be lodged with the return.

Additions to Returns.

7. The Commissioner may permit or cause to be made in any return such additions or corrections as he thinks fit. Such additions or corrections shall be made in different colored ink from that in the return, and shall be initialed by the person making them.

Notations on Returns.

8. The Commissioner may cause to be written on any returns such observations and directions as he thinks fit.

Postage on Returns.

9. Every return, statement, or other form of postal matter addressed to the Commissioner or to a Deputy Commissioner must bear the proper postage.

Change of Address.

10. Any person who has rendered a return shall give notice to the Commissioner or the Deputy Commissioner, as the case requires, of any change of address for service of notices, &c., within one calendar month after such change, and in default of the notice being given, shall not be permitted to avail himself of the fact of the change of address in defence in any proceedings which may be instituted against him for any breach of the Act or Regulations.

Returns by Companies.

12. (1) The public officer of every company carrying on business in Australia shall render a return to the Commissioner or the Deputy Commissioner, as the case requires, setting out the whole of its financial statement according to the headings in the first Form in the Schedule hereto, together with a balance-sheet supporting such statement.

(2) The public officer shall at the same time forward a statement showing the names and addresses of the shareholders of the company, the number of shares held, the total shares issued by the company, the paid-up capital of the company, the amount paid up on each share and the amount (if any) of profits paid or credited to each shareholder during the financial year in respect of which the return of income is made.

Returns by Agents.

13. (1) An agent for a person (herein called the “principal”) liable to render a return under the Act shall make a separate return in respect of the income of each separate principal represented by him in addition to his own individual return.

(2) An agent who represents a partnership shall make one return for the partnership and shall, if called upon by the Commissioner, make separate returns for the several members of the partnership.

(3) If the agent is not the sole agent in Australia for a principal represented by him he shall render a separate return showing all his transactions on behalf of his principal as required by Regulation 5 (5).

Returns by Trustees.

14. The return to be rendered in respect of a trust estate shall be rendered by the senior active trustee resident in Australia. When there is no trustee resident in Australia the return shall be rendered by the agent in Australia for the trustees.

Returns by Partnerships.

15. A return shall be rendered on behalf of the partnership by the senior active partner resident in Australia in respect of partnership income, and each partner shall render a separate return showing the income from the partnership, together with his income from any other source: provided (in the case of a resident partner only) his total income exceeds £156.

Wages Returns by Employers.

16. Every employer of labour when called upon by the Commissioner, either by general notice published in the Gazette or by direct notice to the employer, shall furnish annually a statement setting out the names and addresses of all persons employed during the preceding financial year, together with the capacity in which each person was employed, and the total amount paid to each, together with the value of board, residence, or other allowance made to the employee during such year.

PART III.

Payment of Income Tax.

17. Taxes may be paid at the office of the Commissioner or of a Deputy Commissioner in any State in any of the following modes:—

(a) By cash, or bank notes, or cheques.

(b) By direct remittance by bank draft or cheque, or post-office order or postal note, payable in the capital city of the State, for the net amount payable.

18. Receipts for payments of tax shall be issued by such persons as the Commissioner may authorize.

B 2

19. The Commissioner or Deputy Commissioner, as the case may be, shall credit taxpayers with, the net amount only of taxes received, and shall deduct from any remittance the amount of any charge by way of exchange or duty stamp upon any remittance, and the amount of postage and surcharge paid upon any unstamped or insufficiently stamped communication received through the post from any taxpayer.

20. Except with the express consent of the Commissioner or a Deputy Commissioner no money shall be received on account or in part payment of Income Tax.

21. When payment or remittance is made by cheque, the tax shall not be deemed to be paid, notwithstanding any receipt given therefor, until the amount of the cheque has been collected.

PART IV.

Objections and Appeals.

22. The notice of objection provided by Section 37 of the Act may be in accordance with the second Form in the Schedule.

PART V.—MISCELLANEOUS.

Signature of Authorized Officer.

23. A notice to be given by the Commissioner may be given by any officer of the Commissioner duly authorized in that behalf; and any notice purporting to be signed by the authority of the Commissioner shall be as valid and effective for all purposes as if signed by the Commissioner in person.

Stamped Signature of the Commissioner or Deputy Commissioner.

24. Any notice or other document bearing the written, stamped, or printed signature of the Commissioner or the Deputy Commissioner shall be deemed to have been duly signed by him until the contrary is proved, and judicial notice shall be taken of such signature accordingly, without the necessity of proof of his appointment as Commissioner or Deputy Commissioner.

Public Officers of Companies.

25. (1) Notice of the appointment of a public officer of a company shall be lodged with the Commissioner or the Deputy Commissioner, as the case requires, with the return of the company’s income mentioned in Regulation 12.

(2) When the position of public officer of a company becomes vacant, a fresh appointment shall be made by the company within one month after the vacancy arises, and notice of the fresh appointment shall be immediately forwarded to the Commissioner or to the Deputy Commissioner, as the case requires.

Evidence.

26. A copy, certified under the hand of the Commissioner or a Deputy Commissioner, of any assessment, return, list, declaration, or statement, or of any book, document, or writing of any nature whatever in the custody of the Commissioner or a Deputy Commissioner or any officer appointed under the Act, shall for all purposes be primâ facie evidence of the contents of the original of which it purports to be a copy.

Addresses of Taxpayers.

27. For the purpose of any notice under the Act or Regulations, the address of any taxpayer or person as described in any record of taxpayers in the custody of the Commissioner or the Deputy Commissioner, shall be deemed to be the usual or last known place of abode of such taxpayer or person.

Service of Notice.

28. Any notice served by or on behalf of the Commissioner by posting it to the usual or last known place of business or place of abode of any person shall be deemed to have been served at the time when it would, in the ordinary course of post, have arrived at the place to which it was addressed, or to the post town or post office nearest to that place, whether it has or has not been received by the addressee.

Calculation of Sinking Fund.

29. When it is necessary for purposes of an assessment to ascertain a sinking fund required to replace a sum of money during a number of years, Table I. in the Schedule shall be applied.

Declaration of Secrecy.

30. Every officer before acting in the execution of his office shall make the following declaration before a Justice of the Peace or a Commissioner for taking Affidavits or a Commissioner for Declarations:—

Income Tax Assessment Act 1915.

Officer’s Declaration of Secrecy.

I, of in the State of , in the Commonwealth of Australia, do solemnly and sincerely declare that I will not divulge or communicate any matter or thing coming under my notice in the performance of my duties under the above Act to any person except as may be authorized by law for the purpose of carrying into effect the provisions of the Income Tax Assessment Act 1915.

(Usual Signature)

Declared before me at , in the State of this day of , 191 .

Justice of the Peace for the State of

Commissioner for taking Affidavits.

Commissioner for Declarations.

Witnesses’ Expenses.

31. The scale of expenses to be allowed to persons required to attend and give evidence under Section 56 of the Act shall be as follows:—

Persons.

If resident at place of hearing or within four miles.

If resident beyond four miles from place of hearing.

Per diem.

Per diem.

£.

s.

d.

£.

s.

d.

Labourers and ordinary witnesses.........................................................................................

0

7

6

0

10

0

Mechanics, clerks, master tradesmen, yeomen and farmers

0

10

0

0

15

0

Engineers, surveyors, accountants, auctioneers, bankers, bank managers, merchants, professional men, and esquires..........................................................................................

1

0

0

1

10

0

Police and constabulary..........................................................................................................

Amount of pay lost, and if stationed out of town, 2s. 6d. extra

Travelling expenses, if witnesses reside more than 4 miles from the place of hearing:—The sum reasonably and actually paid.

 

THE SCHEDULE.

 

First Form.

FEDERAL INCOME TAX.

Send this Return to the Federal Commissioner of Taxation, The Rialto, Melbourne (or Deputy Federal Commissioner of Taxation in the capital city of the State).

File No.

Commonwealth  of Australia.

Income Tax Assessment Act 1915.

return of income derived from all sources in during the year ended 30th June,

(To be filled in by Persons in their own behalf, by Firms and Companies, Agents on behalf of Principal outside Australia, and Trustees (a separate Return for the Income of each separate Trust).)

Name in full

Occupation

Postal Address for service of Notices

This Return is made in the capacity of*

* Insert Agent for

Trustee of Estate of

Public Officer of

Company, when such is the case.

Declaration.

I, the person making this return declare that the particulars shown therein and also those stated in the Forms, Balance-sheets, Documents, and Lists herewith are true in every particular, and disclose without reservation or exception a true statement of all Income liable to taxation derived from all sources in by during the year ended 30th June,

Dated this day of

Usual Signature

Part A.

Income from Personal Exertion, when Part C or Part D is unsuitable.

£

Part B.

Income from Property.

£

1.

Stipend, salary, wages, or allowances as employee of

1.

Rents......................................................................

2.

Dividends, interest, or profits received by or credited to me as per details herewith (special sheet is provided for interest from mortgages)....................................

2.

Profession or trade, or share in partnership of

3.

Income as beneficiary under will, settlement, deed of gift, or instrument of trust of

if trust income is from personal exertion......

3.

Annuities, royalties, tributes, licences, &c., and premiums, fines, or foregifts received in connexion with leases...............................

4.

Fees, commissions, or bonuses other than Life Insurance bonuses...............................................................

4.

Income as beneficiary under will, settlement, deed of gift, or instrument of trust of.....

5.

Pension (not being Commonwealth Old-age or Invalid Pension), Gratuities, Superannuation or Retiring Allowance (not including more than 5 per cent. of Retiring Allowances and Gratuities paid in lump sums)...................................................................

5.

Five per cent. on capital value of my own land and improvements used, or of land and improvements used by me rent free, for purposes of residence or enjoyment........

6.

Quarters, board, &c., allowed by employer...........

Capital value at 30.6. —£

Total Income............................................... £

Total Income.................................. £

 

First Form—continued.

Part A—continued.

£

Part B—continued.

£

Deductions.

Deductions.

1.

Amount actually paid for Fidelity Guarantee or Bond (1 and 8 combined not to exceed £50)..........................................................

1. Rates and taxes, including State and Federal Land Taxes and State Income Tax (as per list attached)............................................

2.

Interest actually paid on borrowed money to

3.

Repairs and maintenance as per details attached.........................................................................

2. Fire and burglary insurance premiums paid on property (as per list attached)

4.

Depreciation by wear and tear of plant and machinery, &c. (Plant, machines, &c., and respective values at 1.7. and percentages written off as per list attached)..................

3. Repairs and maintenance (not being alterations or additions) as per list attached)..................................................

5.

Allowances for quarters, board, &c., to employees (including my own children over 15) who are employed exclusively in the business producing income..................

4. Interest actually paid on borrowed money to

secured on...................................................

6.

Fire and burglary insurance premiums paid on tools, plant, &c. (as per list attached).......

5. Premiums or sums (not exceeding £50 in the aggregate) paid by me on the insurance of my own life or that of my wife or children, or for deferred annuity or other similar provision for my wife or children........

7.

Rates and taxes paid, including State and Federal Land Taxes and State Income Tax (as per list attached)........................................................

8.

Premiums or sums (not exceeding £50 in the aggregate) paid by me on the insurance of my own life or that of my wife or children, or for deferred annuity or other similar provision for wife or children.....................

6. Payments not exceeding £50 in the aggregate to a Superannuation, Sustentation, or Widows’ or Orphans’ Fund in Australia, or any Friendly Society registered in Australia...................................................

9.

Payments not exceeding £50 in the aggregate to a Superannuation, Sustentation, or Widows’ or Orphans’ Fund in Australia, or any Friendly Society registered in Australia...................

7. Gifts exceeding £20 each to public charitable institutions and contributions (verified to the satisfaction of the Commissioner) exceeding £5 in the aggregate in respect of each object of contribution made during the continuance of the present war to any public fund established in British Empire or an allied country for any purpose connected with the present war. (Detailed list attached)...........................................

10.

Gifts exceeding £20 each to public charitable institutions and contributions (verified to the satisfaction of the Commissioner) exceeding £5 in the aggregate in respect, of each object of contribution made during the continuance of the present war to any public fund established in British Empire or an allied country for any purpose connected with the present war. (Detailed list attached).........

Losses and outgoings, including commission, discount, travelling expenses, and other expenses actually incurred in gaining or producing taxable income (as per list attached)........................................................

11.

8. Losses and outgoings, including commission, discount, travelling expenses, and other expenses actually incurred in gaining or producing taxable income (as per list attached) ..

9. Deduction of £13 for each child under 16..................................................................

12.

Deduction of £13 for each child under 16.........

13.

Calls paid to Mining Companies, and 5 per cent. of Calls paid to other Companies (as per list attached)........................................................

10. Calls paid to Mining Companies, and 5 per cent. of Calls paid to other Companies (as per list attached).......

Total Deductions.................................... £

Total Deductions.................................... £

Taxable Income...................................... £

Taxable Income...................................... £

 

First Form—continued.

Part C.

Income from a Trade, Business, Manufacture, or concern not shown in Parts A or B.

(Attach Balance-sheet where one exists.)

Part D.

Income of Farmer, Pastoralist, or Horticulturist not shown in Parts A or B.

(Attach Balance-sheet where one exists.)

£

Nature of business—

£

Nature of Business—

Sales—Cash and Credit for year ended 30.6.:—

Sales, cash, and credit for the year ended 30.6..............................................................

(a) sheep at each £........................................................

Stock and materials on hand, 30.6...................

cattle at each £......................................................

(not including plant and fixtures)

horses at each £....................................................

Other live stock £....................................................

Total.............................................. £

(b) Wool £  skins and hides £..................................

Deduct :—Stock and materials

(c) Meat, poultry, &c....................................................

(not including plant and fixtures)

(d) Milk, cream, butter, cheese, eggs, &c.................

on hand 30.6. £_____

(e) Grain, hay, fodder, potatoes, &c..........................

Purchases for business only of stock during £_____

(f) Timber, firewood, bark, &c....................................

(g) Wine, fruit, vegetables, &c....................................

(h) Other receipts from farm, station, or orchard....

Net amount....................................... £

Value of stock and produce given in exchange for goods, provisions, &c...................................................

Add—

Value of goods taken from stock:—

For household purposes............................

Value of live stock killed, and of milk, butter, eggs, and vegetables, &c., taken from the business for house hold use and sustenance of employees Stock on hand or owned at 30.6........................

Used in carrying on the business............

Used as plant or for additions to buildings, &c....................................

Income from commissions, discounts, rebates, and sundry credits...............................................

Value of farm and orchard produce on hand at 30.6. , including wool, &c.

Income from other business sources not in Part B (as per list attached)...........................................

Income from other business sources not in Part B (as per list attached)

Other income (see Part B).................................

Other income (see Part B)............................................

Total Income............................... £

Total........................................................... £

 

Deductions.

£

Deductions.

£

1. Salaries and wages actually paid in the business (not including any sums drawn by me) as per Statement 4 on opposite page

1. Stock on hand or owned at 30.6................

2. Rent of business premises paid in year to...............................

2. Value of farm and orchard produce, wool, &c., held on 1st July,................................

3. Purchases during year for business purposes—

(a) Live stock (as per attached list)...

3. Rates and taxes, including State and Federal Land Taxes and State Income Tax as per list herewith.......................

(b) Seed.....................................................

Fodder.............................

Fruit trees and plants.......................

4. Fire and burglary insurance on business premises and stock only (as per list attached)............................

(c) Fertilizers and manures...........

(d) Stock, &c., received in exchange for produce, &c.

5. Interest paid in year to

of

on money used in connexion with the business..................................................

4. Rent of farm or station paid in year to 

5. Salaries and wages actually paid in the business (not including any sums drawn by me) as per Statement 4 on opposite page)

6. Depreciation by wear and tear of plant and machinery used in the business—not including buildings (Plant, machines, &c., and respective values at 1st July, , and percentages written off as per list attached) 

6. Rates and taxes, including State and Federal Land Taxes and State Income Tax (as per list herewith)

7. Fire insurance paid on business premises and stock

8. Interest paid in year to

of

on money used in connexion with the business....................................

7. Repairs and maintenance (not including alterations, additions, or improvements to property or plant), as per list attached......

9. Depreciation by wear and tear of plant and machinery (not including buildings) used in the business (Plant, machines, &c., and respective values at 1st July, and percentages written off, as per list attached).............................................................

First Form—continued.

Part C—continued.

£

Part D—continued.

£

Deductions—continued.

Deductions—continued.

  • 8. Bad debts incurred in year

     or  in the trade proved to be bad and actually written off for the first time during.............................................................

10. Repairs and maintenance (not including alterations, additions, or improvements to property or plant), as per list attached............................................

9. Exchange, commission, and discount allowed in

11. Bad debts incurred in  or     in the trade proved to be bad and actually written off for the first time during...............................................................

10. Travelling expenses incurred in the business only......................................................

12. Exchange, commission, and discount allowed in

11. Contributions to employees’ benefit or provident fund (as per statement attached)

13. Travelling expenses incurred in the business only...............................................................

14. Contributions to employees’ benefit and provident fund (as per statement attached)

12. Value of quarters, board, &c., allowed to employees (including my own children over 15) employed exclusively in the business. (Names and amounts as per Statement 4)...................................

15. Value of quarters, board, &c., allowed to employees (including my own children over 15) employed exclusively in the business. (Names and amounts as per Statement 4)...........................................

13. Gifts exceeding £20 each to public charitable institutions and contributions (to be verified to the satisfaction of the Commissioner) exceeding £5 in the aggregate in respect of each object of contribution made during the continuance of the present war to a public fund established in British Empire or allied country for any purpose connected with the present war. (Detailed list attached)...............................................

16. Gifts exceeding £20 each to public charitable institutions and contributions (to be verified to the satisfaction of the Commissioner) exceeding £5 in the aggregate in respect of each object of contribution made during the continuance of the present war to a public fund established in British Empire or allied country for any purpose connected with the present war. (Detailed list attached).................................................

14. Sundry petty expenses incurred in the business (as per list attached).........................................

17. Sundry petty expenses incurred in the business (as per list attached).................................................

15. Printing, stationery, advertising, stamps, telegrams, for business purposes only

18. Printing, stationery, advertising, stamps, telegrams, for business purposes only

16. Gas, electricity (light and power), telephone, &c. (for business only)......................................

19. Other business expenses as per list attached................................................................

17. Other business expenses (as per list attached)...............................................

20. Premiums or sums (not exceeding £50 in the aggregate) paid by me on the insurance of my own life or that of my wife or children, or for deferred annuity or other similar provision for my wife or children. (This deduction is allowable only when the return is an individual one)

18. Calls paid to Mining Companies, and five per cent. of calls paid to other Companies (as per list attached)

21. Deduction of £13 for each child under 16. (To be made only when the return is made by an individual)

22. Calls paid to mining companies, and five per cent. of calls paid to other companies (as per list attached)

Total Deductions..........................

.. £

Total Deductions............................

.. £

Taxable Income............................

.. £

Taxable Income..............................

.. £

Statement No. 1.—Partnership Statement.

(When the return is that of a firm or partnership fill in the following.)

Name in full of each Partner.

Address of each Partner.

Net Share of Profits received by each Partner for the Year.

Proportion.

Amount.

Note.—The senior resident active partner should make this return and statement. Each partner must make a separate return of his income from all sources, including his share of the partnership profits.

Statement No. 2.—Trustee’s Statement.

(When he makes the main return as Trustee.)

Names of Beneficiaries who received, or were entitled to receive, the Income in

Residence.

Net amount of Income received by each Beneficiary.

Balance of Income due and payable to each Beneficiary for the year

Balance of Income capitalized or held by Trustee.

Note.—The senior or active resident trustee should make this return and statement. The return of each beneficiary who has no other source of income, should be attached to, and lodged with, the trustee’s return whenever possible.

Statement No. 3.—statement of Attorney or Agent.

Name of Principal.

Occupation or Business of Principal.

Residence or Chief Place of Business of Principal.

Note.—Every person acting as attorney or agent for any person, firm, or company must fill in this statement on his own individual return, and must also make a separate return of the income of each of his principals from all sources in Australia.

Statement No. 4.—Statement of Salaries and Wages Paid and Allowances to Employees.

Employee’s Christian Name and Surname.

In what Capacity employed.

Place of Residence and Postal Address.

Total Amount of Salary or Wages paid to each in year

Value of Board, Residence, or other Allowance to each in year

If the space is not sufficient to contain all the names, special sheets may be obtained from the Department of Taxation.

Payments of less than £120 for the year to any one person may be aggregated, and the total shown.

 

Statement No. 5.—Dividends from Companies.

Name of Company

Address.

Amount.

Name of Company.

Address.

Amount.

statement No. 6.—Particulars of Money Lent by Me on Bank Deposit, on Bonds, Debentures, or otherwise, except on Real Estate.

Name of Bank, Company, Firm, or Person to whom Money is lent.

Address.

Principal Amount.

State whether Deposit, Bonds, Debentures, or otherwise.

Amount of Interest received during year year 1914–15.

Instructions to taxpayers.

Omission of any income from a return will render the taxpayer liable to a penalty of 10 per cent. of the whole tax assessable.

Returns.

Every resident person in receipt of £157 or upwards for the year

  is liable to pay Income Tax. Absentees must pay on all their income derived from Australia.

All persons liable to make returns must obtain a copy of this Schedule and fill in page 1 and sign the declaration, and deliver or post same to the Federal Commissioner of Taxation, The Rialto, Collins-street, Melbourne.

Partners’ Individual Returns.—See note to partnership Statement on page 3.

Trustees and Beneficiaries in Trust Estates should note the instructions at foot of Trustees’ Statement on page 8.

Agents for non-resident manufacturers and other foreign principals under Section 15 of the Act are required to furnish a return showing the total amount of sales effected by or through their agency during the year for each principal in addition to their own individual return.

Income.

Every person who received wages over 10s. a day in continuous employment, or whose salary, wages, allowance, pension, stipend, or other remuneration together amounted to £157 or over, during the year , must make a return. Any benefit in addition, to or as part of salary, wages, &c., such as board or board and lodging, or any bonus or commission, is income, and their value to the recipient must be stated by him. If he lives in his own house, or occupies a house rent free, the annual value of it is income to him, and he must include 5 per cent. of the capital value of it as income. He can deduct the amount he spent in repairs, rates insurance, &c., and interest, if he satisfies the Commissioner that the mortgage was made in good faith.

Value of Portion of Trade Premises used for Domestic Purposes.—All persons using their own land and houses for residential and for business purposes combined must ascertain the actual capital value of such portion as is not used for the business ; and where used for residential purposes only, must return as income 5 per cent. on the capital value of the whole ; and, in either case, may claim, as above, interest, repairs, rates, &c., paid in respect of such portion or whole as the case may be. Generally, the proportion of the rent paid which should be included as income under this head is—(a) for storekeepers, grocers, and other similar trades, one-half ; (b) hotelkeepers and lodging house-keepers, one- fourth; and (c) doctors, chemists, &c., two- thirds. Where these proportions seem to the taxpayer too high, he should state what amount he considers a fair proportion, and the grounds upon which he arrives at such amount.

Farmers and Graziers.

Income earned in pastoral and agricultural industries, such as farming, grazing, dairying, vine-growing, fruit-growing, or market gardening, should be returned in Part D.

General.

Professional Income.—This should be stated in “Income from Personal Exertion,” Part A, and should also be shown in detail by a separate statement. Doctors, barristers, solicitors, &c., may show the actual receipts and allowable disbursements in , irrespective of when earned or incurred.

Income earned in a Trade or Business.—Trade income should be returned as nearly as possible for the year ended 30th June, . Where accounts are not balanced on 30th June, the return must be based on the annual balance sheet and trading and profit and loss accounts made up to a date as near thereto as possible.

Benefits or Advantages.—Hotelkeepers, lodging house-keepers, boarding school proprietors, storekeepers, tradesmen, and others whose household expenses (including board of themselves and families and the maintenance of their domestic establishments) are not kept distinct from their trade or business expenditure should insert as income an amount equal to what the cost of their domestic establishment would be if maintained separately

 

Instructions to Taxpayers—continued.

All incomes subject to tax, from all sources, must be returned in the one Schedule. The taxpayer must not use more than one Schedule, which is drawn up so as to comprise all classes of income that the taxpayer may have.

The particulars of income should be fully stated. If there is not sufficient room in the Schedule a list or statement may be attached.

Deductions allowed.

Rent for trade or business premises actually paid in (if rent paid to more than one person a list giving the names and addresses of the owners of the premises and the amount paid to each should be attached to the return). If premises used for residence also the full amount of rent paid should be claimed as a deduction and the annual or rental value of the portion used for residence included as income. Bonus, premium, fine, or foregift paid for a lease is “rent,” and should be shown separately as a deduction by the tenant (a yearly proportion will be allowed); and the landlord must include it in his return as part of his income for taxation.

Interest actually paid in on borrowed money actually used or invested in Australia. The names and addresses of the lenders, and the amount paid to each, must be shown in the return or on a list attached thereto.

Wages actually paid to employees employed in the earning of the income.

Sustenance or board of employees employed in the earning of the income (the employee must include the value in his return as income).

Living expenses of the taxpayer’s children actually working in the trade if over fifteen years of age and not paid wages.

Insurance (against fire and burglary) of income-producing assets.

Rates and taxes, including State and Federal Land Taxes and State Income Tax.

Insurance premiums paid, but not exceeding £50, on the taxpayer’s own life, for the benefit of himself, his wife, or children.

Bad debts proved to be bad and actually written off in if incurred in or .

Cost of repairs to, or alternatively, depreciation by wear and tear of plant and machinery. The usual percentage provided must be shown, but the amount of deduction will be determined by the Commissioner.

Calls to mining companies, and 5 per cent of calls paid to other companies.

£13 in respect of each child under 16 of a taxpayer.

Payments by employers to benefit funds for employees.

  

Expenses not allowed as Deductions.

The cost of maintenance of a taxpayer, his wife, or his domestic establishment.

Any domestic expenditure, or the cost of living of members of his family (not exclusively engaged in the business), or engaged in domestic duties.

Rent of private residence.

Rent of trade premises not actually paid in

Expenditure incurred to protect income.

Interest not actually paid in .

Wages not actually paid.

Wages to persons not employed in the trade or business.

The cost of travelling between the taxpayer’s private residence and place of business.

Losses by fire, accident, robbery, or embezzlement.

Losses not connected with or arising out of the taxpayer’s trade or business.

Losses incurred in any previous year.

Insurance on furniture or personal effects.

Purchase of goodwill.

Depreciation of goodwill.

Depreciation of land, buildings, or leaseholds.

Depreciation of stock-in-trade.

Money paid to the Crown on selections.

Doubtful debts.

Additions or alterations to trade or other income-earning premises.

Additions to plant and machinery.

Cost of sewerage connexions.

Repayments of money borrowed, including amounts of principal included in annual payments on loans.

Federal Income Tax.

General Directions.

Name of person to be assessed is the name of the person particulars of whose income is given in the return, and the occupation should be descriptive of his own occupation or of his representative occupation, as the case may be. For example, if the income be that of a “trust estate,” the trustee must insert his own as “ the name of the person to be assessed” and give as his occupation “trustee of the estate of A.B. &c.” ; or if agent for an absentee, he must insert his own name and state his occupation as " agent for A.B., of London, &c.” If the return is a return of the income of a partnership, the occupation should be given as “senior partner in the firm, &c.”

A copy of the return, as well as all books, accounts, memoranda, and all data from which the return is made up, should be preserved for future reference in the event of further information being subsequently required by the Commissioner.

   

SECOND FORM.

Commonwealth of Australia.

File No.

Income Tax Assessment Act 1915

Assessment No.

 

NOTICE OF OBJECTION TO ASSESSMENT.

I hereby object to the assessment in respect of Income Tax for the financial year

      made by the Commissioner of Taxation, and issued to me by notice of assessment dated . . , and claim that the assessment of my taxable income should be based on the following amounts :

Income from personal exertion

..............................

 £

Income from property

..............................

 £

£

Less allowable deductions

........................... £

Less deductions under Sec. 19

.......................... £

£

Taxable Income

£

My reasons for claiming that the assessment should be on the figures stated above are—

(Signature)—

(Address)

TABLE I.

 

ANNUAL SUM WHICH ACCUMULATED AT COMPOUND INTEREST WILL AMOUNT TO £1 AT THE END OF ANY NUMBER OF YEARS FROM 1 TO 100.

(Annual Investment Assumed to be Spread Uniformly over Year.)

Years.

5 per cent.

Years.

5 per cent.

Years.

5 per cent.

£

£

£

1..........................

.97580

36........................

.01018

71........................

.00158

2..........................

.47600

37........................

.00960

72........................

.00150

3..........................

.30953

38........................

.00906

73........................

.00143

4..........................

.22640

39........................

.00855

74........................

.00136

5..........................

.17660

40........................

.00808

75........................

.00129

6..........................

.14346

41........................

.00763

76........................

.00123

7..........................

.11985

42........................

.00722

77........................

.00117

8..........................

.10219

43........................

.00682

78........................

.00111

9..........................

.08850

44........................

.00646

79........................

.00106

10........................

.07758

45........................

.00611

80........................

.00100

11........................

.06869

46........................

.00578

81........................

.00096

12........................

.06130

47........................

.00548

82........................

.00091

13........................

.05509

48........................

.00519

83........................

.00087

14........................

.04979

49........................

00492

84........................

.00082

15........................

.04522

50........................

.00466

85........................

.00078

16........................

.04125

51........................

.00442

86........................

.00075

17........................

.03776

52........................

.00419

87........................

.00071

18........................

.03469

53........................

.00397

88........................

.00068

19........................

.03195

54........................

.00377

89........................

.00064

20........................

.02951

55........................

.00358

90........................

.00061

21........................

.02732

56........................

.00340

91........................

.00058

22........................

.02534

57........................

.00322

92........................

.00055

23........................

.02355

58........................

.00306

93........................

.00053

24........................

.02193

59........................

.00291

94........................

.00050

25........................

.02045

60........................

.00276

95........................

.00048

26........................

.01909

61........................

.00262

96........................

.00046

27........................

.01785

62........................

.00249

97........................

.00043

28........................

.01671

63........................

.00237

98........................

.00041

29........................

.01566

64........................

.00225

99........................

.00039

30........................

.01469

65........................

.00214

100......................

.00037

31........................

.01379

66........................

.00203

32........................

.01296

67........................

.00193

33........................

.01219

68........................

.00183

34........................

.01147

69........................

.00174

35........................

.01080

70........................

.00166

 

Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.

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