Land and Income Tax Assessment Amendment Act 1921 (WA)

No. 17.] Land and Income Tax Assessment. [1922.

LAND AND INCOME TAX

ASSESSMENT.

12° GEO. V., No. LI.

No. 17 of 1922.

AN ACT to amend the Land and Income Tax Assessment

Aet, 1907.

[Assented to 10th February, 1922.]

BE it enacted by the King's Most Excellent Majesty, byCouncil and Legislative Assembly of Western Australia, inand with the advice and consent of the Legislative

this present Parliament assembled, and by the authority of

the same, as follows:-

This Act may be cited as the Land and Income Tax As- sessment Amendment Act, 1921, and shall be read as one with the Land and Income Tax Assessment Act, 1907, and its amendments, hereinafter referred to as the principal Act.

Slott title. 1.

Amendment of	2.	Section four of the principal Act is amended by adding
8e0 4.

a paragraph as follows:

Officers of the Commonwealth Taxation Department shall be deemed public officers within the meaning of this section during the currency of any agreement between the Commonwealth and State Governments under the Tax Collection Act, 1920.

Amendment of

gee. O. 3. Section ten of the principal Act is amended by omitting

the proviso to subsection (2).

Amendment of

seo. IL 4. Section eleven of the principal Act is amen 10n1 by in-

serting in subsection (1) thereof a paragraph as foil -ws

(f) land held by any pensioner under the Invalid and Old Age Pensions Act, 1908.

1922.] Land and Income Tax Assessment. [No. 17.

5. Section sixteen of the principal Act is amended by Amenamentor see. 16.

adding thereto the following paragraphs :—

(4.) The profits arising or accruing to any person from the sale of any business as a going concern shall be deemed income within the meaning of paragraph (a) of subsection (1), so far as such profits are derived from the sale of stock-in-trade, live stock, or other goods, chat- tels and effects the proceeds of which, if disposed of in the ordinary course of trade, would have been taxable in- come.

(5.) The profits arising or accruing to any person -from the sale of any mining tenement, as defined by the Mining Act, 1904, or of any interest therein, whether re- gistered or not, shall be income within the meaning of paragraph (a) of subsection (1), except in the case of a sale of a mining tenement acquired by the registered owner as a prospector or person by whom, or on whose behalf, the ground was bond fide prospected, or by a vendor as registered owner by whom the mining tene- ment has been bowl, fide and efficiently worked.

6. Section nineteen of the principal Act is amended

(a) By adding to subsection ten the following words:— Arra of

"or any pension paid to the widow, relatives, or dependants of a deceased soldier or sailor killed during the war, or who had died from injuries re- ceived, or sickness contracted, during the war, or any pensioner under the invalid and Old Age Pen-

sions Act, 1908";

(b) By adding new subsections as follows:-

11. The income of any society or association not carried on for the purposes of profit or gain to the individual members thereof established for the purpose of promoting the development of the agricultural, pastoral, horticultural, viticul- tural, stock raising, manufacturing, or industrial resources of Western Australia.

12. The income of any society or association of a public character established for the promotion of scientific research.

(c)

By striking out the words "subsections one to six

hereof," in the -first line of the last paragraph, and

inserting in lieu thereof the words "this section."

17.] Land and Income Tax Assessment. [1922.

Amendment of	7. Section thirty of the principal Act is omitted, and the
me. 30.

following inserted in lieu thereof:

30. From the taxable amount so ascertained as afore- said, every taxpayer shall be entitled to deductions in re- spect of the annual amount of

(1) Losses, outgoings, interest on mortgages and loans, and expenses actually incurred in West- ern Australia by the taxpayer in the production or protection (where such cannot be insured against) of his income: that is, income which is not exempt from income tax under section nine- teen of this Act.

(2)	(a)	Net trading, prospecting, or business losses in-
curred in any one or more years during the three years preceding the year of assessment.
(I)) Net losses arising over a like period from the loss of stock in trade, crops, and livestock due to droughts or other circumstances or con- ditions over which the taxpayer had no control or was unable to protect or insure against:
Provided that no losses in respect to fixed capital assets shall be allowed as a deduction under this section.

(3)	Sums expended by the taxpayer for repairs of pre- mises let or intended to be let to tenants.
(4)	Sums expended by a taxpayer for repairs to his dwelling house, whether such dwelling house is fully purchased or in the course of purchase.
(5)	(a) Every premium or sum paid by the taxpayer (not exceeding £50) on the insurance of his own life, or that of his wife or children, or for a de- ferred annuity, or other like provision for the wife or children.

Every premium paid (not exceeding £50) in respect of any fidelity guarantee or bond, which such employer is required to provide for the exercise of his profession, trade, employ- ment, or vocation.

(b)

(c) Medical expenses incurred by a taxpayer

on behalf of himself or those dependent upon

him: Provided that this shall not apply where

the taxable income exceeds £250.

(d) Reasonable travelling expenses incurred in earning, producing or protecting the assess- able income.

1922.] Land and Income Tax Assessment. [No. 17.

(6) Sums expended for repairs of premises occupied for business purposes, and for the repair or alteration of machinery, implements, utensils, and articles employed by the taxpayer for the purposes of his business.

(7) Such sum as the Commissioner may think just and reasonable as representing the diminished value (i.e., for the purpose for which they were in- tended in a going concern), by reason of wear and tear, during the year, of any machinery, implements, utensils, and articles used by the taxpayer for the purposes of his business: Pro- vided that, where in any business income is set apart by the taxpayer by way of a fund to cover the depreciation of such machinery, implements, utensils, and articles, the amount so set apart for the year immediately preceding the year of assessment shall, subject to the approval of the Commissioner, be the sum to be deducted for de- preciation: Provided that in no case shall any allowance be made for the depreciation of build- ings.

(8)	Notwithstanding the limitation in subsection one hereof, the Commissioner shall, in cases in which it may seem to him just, allow losses, outgoings, and expenses, even if incurred beyond the State.
(9)	Where a taxpayer employs his sons or daughters over the age of sixteen years in his trade or occupation, such sum may be deducted for their services as may be prescribed by any arbitration award or as to the Commissioner may seem rea- sonable.

{10) Where a taxpayer, either alone or with other per- sons, carries on or is interested as a partner in more than one business, and makes a profit in one or more of such businesses and a loss on an- other or others, such taxpayer shall be entitled to deduct the sum of the losses from that of the profits.

.(11) A sum representing forty pounds for each child under the age of sixteen years at the be- ginning of the financial year in which the income is received, and residing with and dependent upon the taxpayer.

No. 17.] Land and Income Tax Assessment. [1922.

(12) The cost actually incurred during the year by a taxpayer for labour and materials employed in development work, as prescribed, in a mine, when the business of a taxpayer is that of min- ing.

(13) All rates and taxes, including State and Federal land taxes and Federal income tax, actually paid in Western Australia in respect of land situate in or income derived in Western Australia by the taxpayer during the year in which the in- come was received, but not including any State income tax paid under this Act.

(14)	Any payment to the board or the trustees of any charitable institution, incorporated or other- wise, or of a public park or reserve, or of a uni- versity or public school, or of a library, art gal- lery, museum, or other institution for public education, recreation or enjoyment, subsidised by the Government: Provided that such pay- ment is applied solely to such charitable or other public purpose.
(15)	The annual sum necessary to recoup the expendi- ture on improvements under covenant with the lessor on land by a lessee who has no tenant rights in the improvements. The deduction un- der this paragraph shall be ascertained by divid- ing the amount expended on the improvements by the lessee by the number of years in the un- expired period of the lease at the date the im- provements were effected.
For the purpose of this and the preceding sec- tion the word "business" shall be taken to in- elude any profession, trade, employment or vo- cation, and the earning of income from other sources including investments.

Amendment of	8. Section thirty-three of the principal Act is repealed,
sec. 33.

and a section is inserted in place thereof as follows:-

Assessments,	33. (1.) From the returns of income furnished, or from any other information in his possession, or from one or more of these sources, the Commissioner shall cause an assessment to be made for the purpose of ascertain- ing the income chargeable upon which income tax shall be levied.
As. 31, 33.
Set Com. 1015-18

1922.] Land and Income Tax Assessment. [No. 17.

From the land returns, or from the current valuu- lions of the local authority in whose district the land is situated, or from the departmental valuations made, or from any other available source, the Commissioner shall, as soon as may be, cause assessments to be made for the purpose of ascertaining the amount upon which land tax shall be levied.

(2.)

The Commissioner may, at any time, make such alterations in, or additions to, any assessment as he thinks necessary in order to insure its completeness and accur- acy, notwithstanding that the land or income tax may have been paid in respect to the land or income included in the assessment:

(3.)

Provided that every alteration, or addition, which has the effect of imposing any fresh liability, or increasing any existing liability, shall be notified to the taxpayer affected, and, unless made with his consent, shall be sub- ject to appeal:

Provided, further, that any alteration, or correction in the assessment authorised to be made on appeal from assessment, or by order of a court, as hereinafter pro- vided, shall be made forthwith.

(4.) Whenever it is discovered that owing to any mis- se, 1007, No. 15,

take of fact any assessment is too low or excessive or s* 33 (3).

otherwise erroneous, the Commissioner may, notwith-

standing that the assessment has, before the discovery of

such mistake, been adjudicated on by the Court of Re-

view, amend the assessment by increasing, decreasing, or

otherwise altering the same in such manner as in his

judgment is just and necessary; and shall thereupon send

notice of such amendment to the person concerned, and

any such amendment and notice thereof shall be deemed

to be and have effect as an assessment and notice thereof,

and shall be subject to appeal and to the other incidents

of assessments and notices of assessment accordingly.

9. Section thirty-four of the principal Act is repealed,

Amendment of

nee 34.

and a section is inserted in place thereof as follows:-

34. (1.) The Commissioner may order a refund of any rand of excess

excess of tax that may have been paid in respect of any assessment, if an application for a refund of any excess of tax is made within two years of the date of the payment of such tax.

No. 17.] Land and Income Tax Assessment. [1922.

(2.) If the Commissioner thinks that any assessment made by an assessor or valuer is unfair, or incorrect, he may direct another assessment to be made.

Amendment of

see. 35. 10. Section thirty-five of the principal Act is repealed, and

a section is inserted in place thereof as follows:-

Validity of

assessment. 35. The validity of any assessment shall not be

Com. 191518,	affected by reason that any of the provisions of this Act
see. 24.
have not been complied with.
Amendment of

see 36. 11. Section thirty-six of the principal Act is amended by

omitting the words "the assessment-book," and inserting "an

assessment" in place thereof.

Amendment of

sec. 37. 12. Section thirty-seven of the principal Act is repealed,

and a section is inserted in place thereof as follows:-

Assessment of

land.	37. (1.) The Commissioner may, from time to time, make assessments of land liable to land tax;
See Com. 1910-11,	(2.) Every assessment shall, subject as hereinafter provided, remain in force for a period of five years from
se. 17, 18.
the date of assessment to be notified in the Gazette.

Provided that the Commissioner may at any time make such alterations in, or additions to any assessment as he thinks necessary in order to insure its complete- ness and accuracy, notwithstanding that land tax may have been paid in respect of the land included in the as- sessment:

(3.)

Provided, also, that every alteration or addition which has the effect of imposing any fresh liability, or increas- ing any existing liability, shall be notified to the taxpayer affected, and, unless made with his consent, shall be sub- ject to appeal.

Repeal of see. 98.	13. Section thirty-eight of the principal Act is repealed.
sec. 43.
Amendment of	14. Section forty-three of the principal Act is amended by

substituting for the words "entered in the assessment book

by" the words "assessed in."

Amendment of	15. Subsection (1) of section forty-four is repealed, and
sec. 44.

a subsection is inserted in place thereof as follows:-

Assessment la Case

of default. 44. (1.) If

Com. 1915-18,	(a) any person makes default in furnishing any
is. 52.

return of lands or income; or

1922.] Land and Income Tax Assessment. [No. 17.

(b) the Commissioner is not satisfied with the re-

turn made by any person; or

(c) the Commissioner has reason to believe that any person (though he may not have fur- nished a return) is a taxpayer,

the Commissioner may make an assessment of the amount upon which, in his judgment, land or income tax ought to be levied, and the person assessed shall be liable to pay land or income tax thereon, excepting so far as he estab- lishes on appeal that the assessment is excessive.

16.	Section forty-five of the principal Act is repealed.	Repeal of see. 46.
17.	Section forty-six of the principal Act is repealed.	Repeal of sec. 46.

18.    Subsection (1) of section forty-nine of the principal Amendment of

Act is amended by substituting the word "lodged" for the see. 49. word "heard."

19.    Section fifty-three is repealed, and a section is inserted Amendment of

sec. 63.

in place thereof as follows :—

53. (1.) Land tax and income tax, respectively, shall, when tax payable.

subject to the provisions of this Act, be due and payable See Com. 1916-18,

thirty days after the service by post of a notice of assess- "1'

ment.

(2.) Where an assessment is amended in accordance with this Act, and additional land tax or income tax is payable by the taxpayer, the additional land tax or income tax shall. be due and payable thirty days after the service by post of the notice of amended assessment upon the tax- payer :

Provided that when the Commissioner has reason to believe that a taxpayer may leave Australia before the tax on an assessment, or the additional tax on an amended assessment, becomes due and payable, the tax or addi- tional tax shall be due and payable on such date as the Commissioner fixes and notifies to the taxpayer :

Provided also that the Commissioner may in such

cases as he thinks fit

(a) extend the time for payment as he considers the

circumstances warrant; or

(b) permit the payment of tax to be made by instal- ments within such time as he considers the cir- cumstances warrant.

No. 17.] Land and income Tax Assessment. [1922.

Amendment of

Section fifty-nine of the principal Act is amended by

substituting -for the words "whose name is entered in an as-

sessment book" the words "who has been assessed."

sec. 59. 20.

Amendment of 21.

Section sixty of the principal Act is amended by in-

serting after the word "State" the words "or of the Com-

monwealth Taxation Department."

see. 60.

Amendment of 22.

Section sixty-one of the principal Act is amended by

substituting for the words "entered in the assessment book"

the word "assessed."

see. 61.

Amendment of

Section sixty-two of the principal Act is amended by

substituting the word "three" for the word "one," in the

last line thereof.

See. 62. 23.

Section sixty-eight of the principal Act is amended by omitting the words "he shall be liable to pay for each offence under subsection (a) a penalty not exceeding twenty pounds, and for each offence under subsections (b) or (c) a penalty not exceeding one hundred pounds," and inserting in place thereof "or

Amendment of 24.

sec. 68.

(d) without just cause shown by him refuses or neglects to attend and give evidence when required by the Commissioner or any officer duly authorised by him, or to truly and fully answer any questions put to him, or to produce any books or papers re- quired of him by the Commissioner or any such officer,

he shall be liable to a penalty of not less than two pounds, nor

more than one hundred pounds."

Section sixteen of the Land and Income Tax Assess- ment Act Amendment Act, 1918, is amended by inserting after the word "return," in the first line of paragraph (a), the words "or information"; and after the word "return," in paragraph (b), the words "or

Amendment of 25.

see. 688.

(c) includes in any return as a deduction any amount which is in excess of that actually expended or in- curred by him."

Section seventy of the principal Act is amended by in-

serting before the word "assessment," in the fourth and fifth

lines thereof respectively, the words "land or income."

Amendment of 26.

see. 70.

Amendment of 27.

Section seventy-four of the principal Act is amended by omitting the words "assessment book" in two places, and inserting the word "assessment" in lieu thereof; and by substituting the word "assessment" for the word "book," in the last line thereof.

see. 74.

1922.] Land and Income Tax Assessment. [No. 17.

28.	A section is inserted in the principal Act as follows:—	Persons dying
before furnishing

62b. (1.) Where a person dies on or after the first day of July in any year, and before furnishing a return

a return.

Corn 1915-18,

a- 46A.

of his income for the preceding year, his executor or ad- ministrator shall furnish a return of the income derived

by such . deceased person during the said preceding year,

and shall be assessable iu respect thereof and shall be

chargeable with and pay tax thereon.

(2.) Where the executor or administrator is unable, or fails so to furnish a return of such income, the Commis- sioner may estimate the same at and may make an assess- ment of the amount on which in his judgment tax ought to be charged.

29. A section is inserted in the principal Act as follows:— luers nioz itrag a f ter

62e. Where a person dies after the first day of July return.

in any year, and after furnishing a return of Ins income s	e"Ta„'"
for the preceding year, the Commissioner shall have the same powers and remedies for the assessment and re- covery of the tax from the executor or administrator as he would have had against the deceased person, if that person were alive:
Provided in any case where it is proved to the satis- faction of a board consisting of the State Commissioner of Taxation and the State Under Treasurer that

Owing to the death of a person who if he had lived would have paid tax, the dependants of that person are in such circumstances that the exaction of the tax un- der the provisions of Section 31 will entail serious hardship,

the board may release the executor or administrator of the deceased person wholly or in part from his liability

30. The amendments of the principal Act made by this Application ne d e?itignade

Act shall apply to assessments for the financial year begin- by this Let.

ning on the 1st day of July, 1921, and all subsequent years. and to the income of taxpayers for the year next preceding each year of assessment.

31 All copies of the principal Act hereafter printed by Principal Act ma be

the Government Printer shall be printed under the super- itdat

vision of the Clerk of Parliaments as amended by this Act,

and all necessary references to this Act shall be made in the

margin.