Special Income and Wages Tax (Management) Amendment Act 1934 (NSW)

251                  Special Income and Wages Tax (Management)

Amendment Act.

SPECIAL IXCOME ANT) ^yA(}ES

TAX (MANAGEMENT) AMEND­

MENT ACT.

Act No. 17, 1934.

George V. An Act to amend the Special Income and Wages

No. 1̂ 1934.

(Management) Act, 1933, in certain

respects : and for purposes connected there­

with. [Assented to, 1st November, 1934.]

T 3 b it enacted by the King’s Most Exeellent Majesty, J O by and with the advice and consent of the Legis­ lative Council and Legislative Assembly of New South AVah's in Parliament assembled, and by the authority of the .samĉ as follows :—^

Short title. 1. (1) Tliis Act niaj" be cited as the “ Special Income

and AVages Tax (Alanagement) Amendment Act, 1934.”

(2) The Special Income and AV̂ ages Tax (Alanage­

ment) Act, 1933, is in this Act referred to as the Principal

Act.

(3) The Principal Act as amended by this Act may be cited as the Special Income and ATages Tax (Alanage­ ment) Act, 1933-1934.

Arru'nilmrnt of

Aot No. IJ .	2. The Principal Act is amended—
1U3S.

Sec. 8. (a) (i) by omitting from paragraph (h) of section

(Exemp­

eight the words “ resident in Australia ”

tions.)

and by inserting in lieu thereof the words

“ domiciled in the State

(ii)  by inserting at the end of the same section the following new paragraph;—

(m) income derived from property by a person (other than a company) ordinarily resident in a reciprocating State:

Provided

Special Income and Wages Tax (Management) 255

Amendment Act.

N). 17, 1934.

Provided that the exemption under this paragraph shall not apply to any part of the income derived from pro­ perty which is not subject, in the

' reciprocating State, to any tax which, in the opinion of the Governor, is sub­ stantially similar to the Special In­ come Tax for the time being in force in New South Wales.

(b) by inserting next after section eight the follow- N e w s . S a .

ing new section:—

Sa. (1) AVhere the Governor is satisfied that Rî ciprocating

reciprocal provisions have been made by the legislature of any State of the Gommonwoalth for the exemption, in that State, of income derived from property by a person (other tha;i a company) ordinarily resident in New South AVales, from any tax which, in the opinion of the Governor, is substantially similar to the Special Income Tax for the time being in force in New South AVales, the Governor may, by proclamation published in the Gazette, declare such State to be a reciprocating State for the purposes of this Act, and shall in such case also declare the income year as from the commencement of which such State shall become a reciprocating State for the purposes of this Act, and as from the commencement of such income year such State shall be a recipro- eating State for the purposes of this Act.

(2) Any proclamation under subsection one of this section may be revoked or varied by the Governor by a subsequent proclamation published in the Gazette.

(c)	by inserting in subsection four of section nine sct.n. after the words “ outside the State ” the follow- (DodiKtions
ing prov iso :-

Provided that where a company derives income from a source in the State and from a source outside the State, the amount to be de­ ducted under this subsection shall be an amount which bears the same proportion to the total

amount

256                 Special Income and Wages Tax (Management)

Amendment Act.

No. 17, 1934.

amount so distributed as the profits which form part of the assessable income of the company derived from a source in the State bear to the total profits of the company.

Further amend­

ment of Act No.	3. The Principal Act is further amended—^
13, 1933.

Sec. 10. (a) by inserting in subsection one of section ten

(Deductions	,	after the word “ shall ” the words “ unless it
from divi­
dends, in­	has deducted and retained from such dividend,
terest, etc.)	in pursuance of subsection three of this section, an amount sufficient to pay the tax ’ ‘;

(b)	by inserting in subsection two of the same section after the word “ shall ” the words “ un­ less he has deducted and retained from such interest, in pursuance of subsection three of this section, an amount sufficient to pay the tax ’ ’;
(c)	by omitting subsection three of the same section and by inserting in lieu thereof the following new subsections;—-

(3) 'Where after the commencement of the Special Income and Wages Tax (Management) Amendment Act, 1934—

(a) a dividend becomes payable by a company to a shareholder not domiciled in the State in respect of its shares registered upon a register situate in the State, or

(,b) interest becomes payable by a person (in this section referred to as the interest payor) to a person not domiciled in the State (in this section referred to as the interest recipient) on money lent in the State,

the company or interest payor, as the case may ))e, shall deduct and retain from such dividend or .such interest when paid an amount sufficient to pay the tax in respect of such dividend or such interest at such rate as may be fixed by any Act and shall forward such amount to the Commis- .sioner with the prescribed return within such lime as mav be prescribed.

̂ ■ - (3a)

Special Income and Wages Tax (Management) 257

Amendment Act. No, 17, 19344

(3a) (a) Tlie place of residence of a sliare- liolder or interest recipient last known to the company or interest payor at the date of payment of a dividend or interest, as the case may be, shall, for the purposes of this section, hut subject to paragraph (b) of this subsection, be conclusive evidence as between the shareholder and the company or as between the interest recipient and the interest payor, as the case may be, and as between the company or interest payor, as the <?ase may be, and the Commissioner and be prima facie evidence as behveen the shareholder or interest recipient and the Commissioner that at such date the shareholder or interest recipient was domiciled in the State or country in which such residence is situated.

(b) The Commissioner may from time to time by notice in writing (a copy of which shall be forwarded to the shareholder or interest recipient at the last address known to the Com­ missioner) notify the company or interest payor where the shareholder or interest recipient, as the case may be, is domiciled, and for the pur­ poses of subsections one, two and three of this section such notice shall—

(i)  as between the Commissioner and the com­ pany or interest payor as the case may be, and

(ii)   as between the company and shareholder or interest payor and interest recipient, as the case may be,

notwithstanding anything in paragraph (a) of this subsection be conclusive evidence of the domicile of the shareholder or interest recipient from the receipt of such notice by the company or interest payor, as the case may be, and until the same is withdrawn.

(c) The Commissioner may from time to time withdraw such notice by a like notice in writing, a copy of which shall be forwarded to the shareholder or interest recipient as aforesaid.

I (d)

258                 Special Income and Wages Tax (Management)

N e. 17, 1934. Amendment Act.

'	(d) A shareholder or interest recipient may in writing request the Commissioner to notify the company or interest payor, as the case may be, that he is domiciled in the State, and, when any notice relating to the domicile of such shareholder or interest recipient has previously been given, to withdraw such notice.
Any such request shall be accompanied by a statement setting out fully the facts upon which the request is based.
If the Commissioner refuses any such request he shall give notice of such refusal to the share­ holder or interest recipient.
(e) A shareholder or interest recipient shall have a right of objection and appeal to the Court of RevieAV against any notice relating to the domicile of such shareholder or interest recipient or against any notice of refusal of a request made under paragraph (d) of this sub­ section by such shareholder or interest recipient.
The provisions of section fifty-two of the Principal Act shall mutatis mutandis apply to any objection or appeal under this paragraph; and for the purpose of such application the copy of the notice relating to domicile and the notice of refusal of the request shall be deemed to be a notice of assessment.
The period within which an objection or appeal under this paragraph may be lodged shall com­ mence to run from the date on which, in the ordinary course of post, the copy of the notice relating to domicile or the notice of refusal of the request, would be received.
(3b) a. shareholder or interest recipient shall not be entitled to make any claim against a com­ pany or interest payor in respect of tax retained and paid to the Commissioner in accordance with the provisions of this section and the receipt of the Commissioner therefor shall, to the extent of the amount thereby acknowledged, be a complete acquittance and discharge to the company or the

interest

Special Income and Wages Tax (Management) 259

Amendment Act. Nti, 17, 1934.

interest payor, as the case may be, of and from all liability in respect of such dividend or interest.

(3c) A person domiciled outside the State shall have the same right of objection and appeal in respect of tax deducted under this section as if an assessment had issued to him.

For tlie purt)oses of this subsection the period within which an objection may be lodged shall commence to run from the date on which, in the ordinary course of post, an assessment would be received if issued on the date on which the tax is paid by the company or interest payor to the

. Commissioner.

(3d) a company shall not be required to deduct lax under this section in respect of such part of any dividend as is distributed out of income upon which it has paid Unemplojunent Belief Tax under the provisions of the Unem- IDloymcnt Belief Acts or Special Income Tax.

(3e) Tax shall not be retained or deducted and retained under this section from dividends or interest exempt from tax by the operation of paragra]di (m) of section eight of this Act:

Provided that, where tax has been so retained or deducted and retained before the publication in the Gazette of a proclamation declaring the State in which the shareholder or interest re­ cipient is ordinarily resident to be a reciprocat­ ing State, such tax shall, as between the company

. and the shareholder or as between the interest payor and the interest recipient, as the case may be, be deemed to have been lawfully retained or deducted and retained, and any claim for refund of tax by the shareholder or interest recipient shall be made to the Commissioner.

(3f ) In this section and section nineteen of the Unemployment Belief Acts the phrasesmoneys in its hands belonging to a share­holder ” and “ moneys coming to his hand belonging to the person ” shall include and be

, !- deemed

260                 Special Income and Wages Tax (Management)

No. 17, 1934. Amendment Act.

deemed at all times to have included money due

or payable to such shareholder or person.

(d) by inserting at the end of subsection four of the same section the words “ unless the Commis­ sioner by notice in writing to the company or interest payor, as the case may be, directs that tax shall be retained or deducted and retained under this section.

Any such notice shall take effect from the date of receipt thereof by the company or interest payor, and shall remain in force until with­ drawn.”

Further amend­	4. The Principal Act is further amended—
No. 13, 1983.

ment of Act

Sec. 11. (a) (i) by omitting from paragraph (a) of section

(Eebate of eleven the words “ section nine or

tax.)	(ii) by omitting from jiaragraph (b) of the same section the words “ section eighteen or
(iii) by inserting at the end of the same section the following new subsection:—

(2) Where there is included in the net

assessable income of any person (and such person is liable to tax in respect thereof) any dividend upon which tax has been paid under the provisions of section nine of thia fVet or under the jirovi.sions of section eighteen of the Unemployment Relief Act& there shall be deducted from the tax other- Avise payable by such person the amount of additional tax resulting from the inclusion of such dividend in the net assessable in­ come.

(b) by inserting in section twelve after the word

Sec. 12. ]

(Assess­	“ income ” the words “ or owing to the failure
ments in
special	of an employer to collect the correct amount of
cases.)	tax from an employee

N ew B. 14A. (c) by inserting next after section fourteen the folloAving now section:—

Authority to	14a. (1) Notwithstanding anything contained
mation in

disclose Infor­	in this Act, or in the Principal Act, the
returns to the
Government	Commissioner may furnish to the Government
Statistician,	Statistician for New South Wales any informa­
d . Act No. 34,
1930, s. 23 c.	tion disclosed by the returns under subsection

, ) two of section fourteen of this Act. (2)

Special Income and Wages Tax (Management) 261

Amendment Act. f7, 1934.

I

(2) Before any such information is so

furnished, the Government Statistician and

!

every officer or employee of the Bureau of

,

Statistics and Economics shall take and sub­

,

scribe before a justice of the peace such oath of

fidelity and secrecy as may be prescribed.

(3) If the Government Statistician or any such officer or employee acts in the execu­ tion of his office in relation to any such return before he has taken the prescribed oath he shall be liable to a penalty of not less than ten and not more than one hundred pounds.

(4) The Government Statistician and every such officer or employee who without law­ ful excuse makes a record of or reveals the name of any cini)loyer who has furnished a return pursuant to subsection two of section fourteen of this Act, or the particulars contained in any such r(‘turn, shall be guilty of a misdemeanour, and shall be liable to imprisonment for any term not exceeding tv/o years with or without hard labour.

(5) Any person who has held the office of Government Statistician, or who has been an officer or employee of the Bureau of Statistics and Economi(,‘s, or who has performed any duty under this Act in tlie said Bureau and who reveals any information as to any employer who has furnished a return inirsuant to subsection

'	two of section fourteen of this Act, or as to any of the ])articulars contained in any such return, to any iierson other than a person to whom he has been authorised by the Commissioner to communicate it, shall be guilty of a misdemean­ our and shall be liable to imprisonment for any term not exceeding two years, with or without hard labour.
(6) The Government Statistician shall not, nor shall the Commissioner or any officer or employee of the Bureau of Statistics and Economics, or any officer appointed to act in the administration of the Principal Act, be required

: to

262                  Special Income and Wages Tax (Management)

No. 17, 1934. Amendment Act.

to produce in any Court any return made pursu­ ant to subsection two of section fourteen of this Act, or to divulge or communicate to any Court the name of any employer who has made any such return, or any of the ]jarticulars contained in any such return, except as may be necessary for the purpose of carrying into effect the pro­ visions of this Act.

(7) Nothing in this section shall prevent

the Government Statistician from compiling from such returns, and publishing statistics based on the particulars contained in such returns; but such statistics shall not disclose the name of any emploj^er who has made any such return nor the particulars contained in any particular return.

Sec. 16.	'	(d) (i) by inserting next after subsection one of
income from

(Tax on	section sixteen the following new sub­
wages.)	section :—
(1a) If any employer fails to keep wages records or the Commissioner is not satisfied that the records kept are correct, the Com­ missioner may by notice in writing fix the amount of wages upon which, in his judg­ ment, tax ought to be paid, and the employer shall be liable to pay tax accordingly excepting so far as ho establishes on objec­ tion that the amount is excessive.
Any such notice in writing shall be subject to the same right of objection and appeal as if it were a notice of assessment.

(ii)  by omitting from subsection ten of the same section the word ‘ ‘ six ’ ’ and by inserting in lieu thereof the word “ twelve.”

Further amend­	5. The Principal Act is further amended—
ment of Act No. 13, 1933.

Sec. 17.	(a) (i) by omitting subsection three of section
ments witli

(Arrange­ seventeen;

Common­	(ii) by omitting from subsection four of the same section the words “ be deemed to be ” where firstly occurring and by inserting in
wealth.)

lieu

Special Income and Wages Tax Act. 263

No. 17, 1934.

lieu tliereof the ■words “ as from the date or dates fixed by the arrangement be deemed to be or to have been, as the case may be

(iii)  by omitting from the same subsection the words “ be deemed to be bound to collect tax from those persons ” and by inserting in lieu thereof the words ‘ ‘ and as from the date or dates fixed by the arrangement be deemed to be or to have been, as the case may be, an employer.”

(,b) by omitting section eighteen.

Sec. 18.

(C'peralion of

fCH'. 17.)