Income Tax Regulations (Amendment) (Cth)

STATUTORY RULES

1968 No.

REGULATIONS UNDER THE INCOME TAX ASSESSMENT ACT 1936-1967.*

I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Income Tax Assessment Act 1936-1967.

Dated this first day of January, 1968.

casey

Governor-General.

By His Excellency’s Command,

Treasurer.

 

Amendments of the Income Tax Regulations 

Part.

1. Regulation 2 of the Income Tax Regulations is amended by omitting the words and figures—

“Division 4.—Collection of Dividend (Withholding) Tax (Regulations 54zf-54zk).”

and inserting in their stead the words and figures—

“Division 4.—Collection of Withholding Tax (Regulations 54zf-54zk).”.

Notice of election under section 128d.

2. Regulation 8a of the Income Tax Regulations is repealed.

Returns.

3. Regulation 9 of the Income Tax Regulations is amended by omitting sub-regulation (3.) and inserting in its stead the following sub-regulation:—

“(3.) In the case of a return (not being a return under regulation 13 or 15) by a non-resident, the form of return may be altered so as to exclude any reference to income derived by the non-resident upon which withholding tax is payable.”.

Returns by persons other than companies.

4. Regulation 10 of the Income Tax Regulations is amended—

(a) by inserting in paragraph (d) after the words—

“Statement of salaries, wages, and commission paid, and allowances to employees;”

the words—

“Statement of interest paid or credited to non-residents;”; and

(b) by adding at the end thereof the following sub-regulation—

“(2.) Every return by a person other than a company shall, except where the Commissioner otherwise directs, be accompanied (in addition to any other documents required under these Regulations) by a statement showing the names

 

* Notified in the Commonwealth Gazette on 1968.

  Statutory Rules 1936, No. 94, as amended to date. For previous amendments of the Income Tax Regulations, see footnote   to Statutory Rules 1967, No. 112, and see also Statutory Rules 1967, Nos. 112 and 126.

17069/67—Price 8c 9/12.12.1967

and addresses of all non-residents to whom interest was paid or credited during the year of income, and the amount of the interest so paid or credited to each non-resident.”.

Returns by companies.

5. Regulation 11 of the Income Tax Regulations is amended—

(a) by omitting paragraph (b)of sub-regulation (1.) and inserting in its stead the following paragraphs:—

“(ab) a statement of dividends and interest paid or credited to nonresidents;

“(b) in the case of private companies—a statement of all dividends paid or credited;”; and

(b) by omitting paragraph (c) of sub-regulation (2.).

Statements under section 128d.

6. Regulation 11b of the Income Tax Regulations is repealed.

Separate returns by partners.

7. Regulation 14 of the Income Tax Regulations is amended by omitting sub-regulation (3.) and inserting in its stead the following sub-regulation:—

“(3.) In this regulation, ‘income’ does not include income upon which withholding tax is payable.”.

Furnishing of returns by non-residents.

8. Regulation 22b of the Income Tax Regulations is repealed and the following regulation inserted in its stead:—

“22b.—(1.) Where the income of a non-resident derived from sources in Australia is derived wholly within one State, the return of the non-resident shall be furnished to the Commissioner at the office of the Deputy Commissioner in that State.

“(2.) Where the income of a non-resident derived from sources in Australia is derived wholly within the Australian Capital Territory, the return of the non-resident shall be furnished to the Commissioner at his office in Canberra.

“(3.) Where—

(a) a non-resident is carrying on business in Australia at or through a place of business that is, for the purposes of Division 11a of Part III. of the Act, a permanent establishment of the non-resident in Australia; and

(b) part of the income of the non-resident derived from sources in Australia consists of dividends and the remainder of that income is derived wholly within one State,

the return of the non-resident shall be furnished to the Commissioner at the office of the Deputy Commissioner in that State.

“(4.) In any case to which the preceding provisions of this regulation do not apply, the return of the non-resident shall be furnished to the Commissioner at the office of the Deputy Commissioner, Central Office, Melbourne.

“(5.) In this regulation, ‘income’ does not include income upon which withholding tax is payable.”.

How tax may be paid.

9. Regulation 44 of the Income Tax Regulations is amended by omitting the words “dividend withholding tax” and inserting in their stead the words “withholding tax”.

Heading to Division 4 of Part VI.

10. The heading to Division 4 of Part VI. of the Income Tax Regulations is omitted and the following heading inserted in its stead:—

“Division 4.—Collection of Withholding Tax.”.

Definitions.

11. Regulation 54zf of the Income Tax Regulations is amended by inserting after the definition of “dividend” the following definition:—

“‘interest’ includes an amount in the nature of interest, but does not include an amount deemed to be interest by section 26c of the Act;”.

Deductions from dividends.

12. Regulation 54zg of the Income Tax Regulations is amended by omitting sub-regulation (3.) and inserting in its stead the following sub-regulation:—

“(3.) Where—

(a) a dividend is paid to the Commonwealth, a State, an authority of the Commonwealth or of a State or a person in Australia (in this sub-regulation, referred to as ‘the payee’); and

(b) another person who is a non-resident but is a resident of a prescribed country is entitled—

(i) to receive the dividend or a part of the dividend, or the amount of the dividend or of a part of the dividend, from the payee; or

(ii) to have the dividend or a part of the dividend, or the amount of the dividend or of a part of the dividend, credited to him, or otherwise dealt with on his behalf or as he directs, by the payee,

the amount of the deduction to be made from the dividend, or the part of the dividend, under sub-section (2.) of section 221yl of the Act is fifteen per centum of the dividend or the part of the dividend.”.

13. Regulations 54zh and 54zi of the Income Tax Regulations are repealed and the following regulations inserted in their stead:—

Deductions from interest.

“54zga. The amount of the deduction to be made from interest under section 221yl of the Act is ten per centum of the interest.

Deductions to be reduced in certain cases.

“54zh. Where—

(a) an amount has been deducted from a dividend or from interest under section 221yl of the Act; and

(b) a person (including the Commonwealth, a State or an authority of the Commonwealth or of a State) is required to make a further deduction from the dividend or the interest under that section,

the amount of that further deduction as determined under whichever of the last two preceding regulations is applicable shall be reduced by that first-mentioned amount.

Advice of deductions.

“54Zi. Where—

(a) a deduction has been made from a dividend or from interest, being a deduction made or purporting to have been made under section 221yl of the Act, by the Commonwealth, a State, an authority of the Commonwealth or of a State or a person in Australia (in this regulation referred to as’ the payee’); and

(b) the dividend or interest is paid by the payee to another person in Australia,

the payee shall, at the time the dividend or interest is paid by him to that other person, advise that other person in writing of the amount so deducted from the dividend or from the interest.”.

14. Regulation 54zk of the Income Tax Regulations is repealed and the following regulation, inserted in its stead:—

Place where annual statement of deductions to be furnished.

“54zk. A statement required to be furnished by a person lo the Commissioner under paragraph (b) of sub-section (1.) of section 221yn of the Act shall be furnished to the Commissioner—

(a) where the person is required to furnish a return of income—at the place where the return is required, by these Regulations, to be furnished;

(b) where the person is not required to furnish a return of income and resides in a State—at the office of the Deputy Commissioner in that State;

(c) where the person is not required to furnish a return of income and resides in the Australian Capital Territory—at the office of the Commissioner in Canberra;

(d) where the person is not required to furnish a return of income and is a resident of the Northern Territory—at the office of the Deputy Commissioner in that Territory; or

(e) in any other case-at the office of the Deputy Commissioner, Central Office, Melbourne.”.

Saving provisions.

15.—(1.) The regulations repealed by regulations 2 and 6 of these Regulations continue to have effect for the purposes of the application of section 128dof the Assessment Act in relation to income derived by non residents before the first day of July, One thousand nine hundred and sixty-seven.

(2.) The amendment made by paragraph (b) of regulation 5 of these Regulations does not apply in relation to interest paid or credited before the commencement of these Regulations.

(3.) In this regulation, “the Assessment Act” means the Income Tax Assessment Act 1936-1966 as amended and in force from time to time.

 

By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra