The Taxation Act Amendment Act 1904 (SA)

ANNO ' QUARTO

EDWARDI V11 REGIS.

A. D. 1904.

No. 861.

An Act to amend the Taxation Acts, and for other

purposes.

[Assented to, November zgfh, 1904.l

E it Enacted by the Governor of the State of South Australia,

follows: B with the advice and consent of the Parliament thereof, as

1, This Act may be cited as " The Taxation Act Amendment short titleand

Act, 1904," and shall be read and incorporated with the Taxation 'ncOr~OratiOn.

Act, 1884" (hereinafter called the principal Act), and the Acts amending the same.

(a) On all income derived from persona exertion, at the rate of Ibid., W. s, aub-	Four Pence Halfpenny , for every Pound sterling of the sec. (a).
taxable amount thereof up to and inclusive of the sum of Eight Hundred Pounds, and at the rate of Seven Pence
for every Pound sterling of such amount above the sum of Eight Hundred Pourids: (V On

2, For the year ending the thirty-first day of December, one Reductionof

thousand nine hundred and four, subdivision 11. of section 2 of the ;=g8: g&

Taxation Act Amendment Act, 1887," s h d be read as if in lace Pounds.

of the words Two Hundred Pounds " therein there were inserted ac t NO. 838 of

the words " One Hundred and Fifty Pounds." 1903, seo. 2.

I

3, The taxes on incomes for the year ending the thirty-first day Incraase of taxes.

of December, one thousand nine hundred and four, recoverable Ibid., sec. 3.

under the " Taxation Act, 1884," are hereby increased by the

imposition of the following taxes, which shall be in lieu of the

rates of income tax heretofore in force-

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The Taxation Act Amendment A c t. 1 9 0 4.

Act 838 of 1903,	( b ) On all income consisting of	the produce of	property, at the
sec. 3, subeec. ( h ).

rate of Nine Pence for every Pound sterling of the taxable amount thereof up to and inclusive of the sum of Eight Hundred Pounds, and at the rate of Thirteen Pence and a Halfpenny for every Pound sterling of such amount above the sum of Eight Hundred Pounds.

Abolitionof exemp-

tion in case taxable 4. If the net income from all sources of a taxpayer in his sole

income individual right shall exceed Four Hundred Pounds, he shall not be

exceeds Four Hun-

dred Pounde.	entitled to any deduction by way of exemption from income tax
Ibid., sec. 4.	imposed by section 3 of this Act.

twelve months not 5, No person who shall have been out of South Australia for	Pemna absent f o ~
entitled to exemption twelve consecutive months piior to the passing of this Act shall be Ibid., see. 6. entitled to any deduction by way of exemption from income tax

payable under section :3 of this Act: Provided that the Agent- General for the State shall not be deemed to be an absentee under the provisions of this Act or any other Taxation Act.

Increase of taxes. 6,

The taxes on land, to be calculated on the fourteenth day of December, one thousand nine hundred and four, and due and pay- able on the fourteenth day of February, one thousand nine hundred and five, are increased as follows :-

Land tax increased

One Farthing.

I. The land tax shall be increased at the rate of One Farthing

for every Pound sterling on the amount of the taxable

value of the land:

imreaeed One

Additional land tax

11. The additional land tax provided for in section 4 of Act 604

Farthing. of 1894 is increased at the rate of One Farthing for every Pmnd sterling exceeding the amount of Five Thousand Pounds of the total assessed unimproved value of all laad owned by any party:

Computation ot 111. The absentee land tax provided for bp the said section 4 shall

absentee land t ~ x.	be computed on and added to the amount of land tax and
additional land tax, including the increase of each such
tax hereby enacted and payable in respect of land owned
by absentees. .
Pemonabsenttwelve

months from State	7. During the operation of section 6 of this Act the words
shall be included	twelve months " shall be substituted in place of the words '' two

abaentee.

Ibid., eec. 0, amended. years" in the twelfth line of section 3 of Act 604 of 1894.

Annual aseeesment

additional and 8. Notwithstanding the provisions of any Taxation Act, an

abmnwlandtax.	annual assessment for additional land tax and absentee land tax
Ibid., sec. 7.	shall be made as of the fourteenth day of December in every year.

Certain incomes

deemed to arise, &C., Q, The following incomes shall be deemed to arise or accrue in

huth Austr&. or be derived from South Australia, that is to say-

(a ) Income resulting from the buying, selling, or dealing in

South Australia of or in any shares, debentures, or stock

in or of m y joint-stock or incorporated company, wherever

such company or its property may be situate: (6) Rent,

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The Taxation Act Amendment Act.-1904.

( b ) Rent, interest, and other profits issuing out of any money invested in South Australia, or lent anywhere to any person in Sonth Australia, or charged or ~ecured upon or by any lands, tenements, or hereditaments in South Aus- tralia, or any estate or interest therein, notwithstanding that any person or persons entitled to receive or liable to pay such rent, interest, or profits may reside or be out of South Australia, and notwithstanding that any instru- men ts creating, c hargiug, or securing such rent, interest, or profits may have been executed out of South Australia:

( C ) Income arising or accruing by virtue or means of any contract

made in South Australia of or for the sale of goods delivered or to be delivered in South Australia, or of goods in South Australia whether delivered or to be delivered either in or out of South Australia.

10, When any goods shall, in South Australia, be manufactured Goods tmted, but

or altered or made more marketable or saleable, or otherwise treated E 8 ~ ' r	with a view to profit to the owner of such goods, and shall be taken
out of South Australia without any sale or contract to sell the same being first made therein, then the owner of the said goods by whom or on whose behalf the same shall be so manufactured, altered, made marketable or saleable, or otherwise treated, shall be deemed to have made and received by such manufacture, alteration, making marketable or saleable, or other treatment, a profit and net income equal to Three Pounds upon every Hundred Pounds of the actual cost to such owner of such manufacture, alteration, making marketable or saleable, or other treatment: such cost shall include a fair and reasonable charge for all lands, buildings, and machinery used or employed by the owner in and about such manufacture, alteration, making marketable or saleable, or other treatment. Where such goods shall be so manufactured, altered, made more marketable or saleable, or ot.herwise treated as aforesaid, together with other goods, that the actual cost aforesaid, or any portion
portions thereof as cannot be specifically ascertained of manu- thereof, cannot be specifically ascertained, then the cost or such facturing, altering, making more marketable or saleable, or other- wise treating such first-mentioned goods, and other goods together, shall be attributed to and divided among all such goods ratably according to the respective values of such goods immediately before the first-mentioned goods shall be taken out of South Australia. I

11, The use and enjoyment of any house, or portion of a house, a&dmce8, $C..

and all gratuities, bonuses, and premiums, whether in money, or Q h a % a e a a

goods, or land allowed, given, or granted to any person in respect

of or for or in relation to any employment or services of such person

shall be deemed to be income of such person from personal exertion

to the amount of the value of such use and enjoyment, gratuities,

bonuses, and premiums, respectively. The use and enjoyment of

any house, or portion of a house, shall be valued according to the

annual value thereof, and be charged as income, notwithstanding

that the person using and enjoying the same may be under any

obligation or duty to use or enjoy the same. 12. In

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The Taxation Act Amendment Act.-1904.

In~omefrornahippin~ 12, I n the case of every carrier by sea who shall carry passengers or goods to or from South Australia, the net taxable income of such carrier in his business of a carrier by sea shall, unless and until the contrary be shown, be calculated and assessed at the rate of Five Pounds upon every Hundred Pounds of the gross moneys paid or payable to or receivable by such carrier, whether in South Australia or elsewhere, for the carriage of passengers, mails, or goods out of any port in South Australia, whether to some other port in South Australia or to some other place. The provisions of this section shall not apply to any sailing vessel taking cargo in South Austra- lian ports for oversea ports unless and until such vessels shall load in South Australia oftener than twice in any one year.

Chawin~ income tar 13, ( 1

) The Commiesioner may, in the prescribed manner, declare that section 5 of the principal Act shall not apply with respect to the earnings of any ship or vessel named by him during the period named by him.

on camal shipping.

(2) Thereupon the master of such ship or vessel shall furnish such return or returns as shall be prescribed.

(3) At any time after the making of such declaration, an estimate may be made by the Commissioner of the income which is or will be assessable as income of the owner or hirer of such ship as a carrier by sea in relation to the earnings of such ship or vessel in the period named in the declaration.

(4) The Commissioner may, either before or aftel* the expiration of the said period, make an assessment against the owner and hirer of such ship or vessel for income tax upon the amount of such estimate, and tax shall thereupon be forthwith payable according to such assessment.

( 5 ) If such owner or hirer be not known to the Commissioner,

or be not known by the Commissioner to be in South Australia, such assessment may be made against the master of the ship or an

agent in South Australia for the owner or hirer, and such master or agent shall thereupon be liable to pay the tax so assessed,

and may recover the same from his employer or principal and deduct

and retain the same out of any moneys of the employer or principal

then or afterwards in the hands of the master or agent so assessed.

Taxpayere tempo-

rarily in South 14. Whenever any person shall be in South Australia temporarily

Australia.

in pursuit or exercise of any calling in the ordinary course of

which, in the opinion of' the Commissioner (certified in the pre- scribed manner), he will leave South Australia before income tax will be recoverable from him i n the ordinary course, income tax shall be calculated and payable by him daily while he is in South Australia, and the Commissioner may, from time to time, assess the same for each day or include the tax for any number of days in one assessment.

h - n e b o n. a l a	15, (1) Whenever any contract to sell or of	sale of	any goods
in 00uth Auatrelia for

abannt per so^.

shall be made in South Australia by any agent in South Australia

for

2 EDWARDI VII, No. 861.

The Tmation Act Amendment Act.-1904.

for any principal who shall be out of South Australia such agent shall pay to the Commissioner income tax upon the income of the principal arising from such contract, which income shall for that purpose be computed and assessed at Five Pounds for every One Hundred Pounds of the purchase-money under such contract wherever such purchase-money shall be payable or paid.

(2) The agent shall make such returns as may be prescribed io respect of such contract.

(3) Where the agent is a company the public officer of the com- pany shall be liable under this section as if the income of the principal were income of the company.

(4) The payment under this section shall be in addition to all in- come tax payable by the agent upon his own income arising out of or in relation to the contract.

(5) The agent may deduct and retain the amount of all payments made under this section out of any moneys from time to time payable by him to the principal, or may recover the same f r ~ m the principal as a debt in any Court of competent jurisdiction.

(6) The tax under this section shall be calculated and payable and may be assessed forthwith after the making of the contract.

(7) The Commissioner, upon the application of the principal or the agent, within twelve months after payment of the tax under this section, and upon proof to the satisfaction of the Commissioner that the whole net income, wherever arising, of the principal in respect of the goods the subject of the contract was in fact less than the amount conlputed and assessed under subdivision (1) hereof, may reduce the assessment to the amount of such whole net income, and the excess of tax paid over the tax payable upon such reduced assessment shall be refunded to the principal or the agent by the Treasurer.

(8) This section shall not apply where the principal, either by himself, or his agent, or servant, carries on business continuouely in

South Australia in his own name.

(9) The Commissioner, in the prescribed manner, may declare any principal to be asssessable under the general provisions of the

Taxation Acts, and may rescind such declaration. While such

declaration is in force, and from the date of such declaration, or from	I
such prior date (if any) as shall be specified in the declaration, this section shall not apply to any contracts made for the principal so declared.

16. Taxes at-any time payable under the last precedmg three &tesotbxea

sections shall be at the rates in force for the time being upon income ee*h

from personal exertion generally of or for the year ending on the

last previous thirty-first day of .December. Subdivision X. of

section 12 of the principal Act, and any amendment thereof, shall not

apply to income to which the aaid three eections, or any of them,

shall apply. 17. (1) The

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The Taxation Act Amendment Act.-1 904.

Companies. 17. (1) The words "but not dividing its profits amongst its mem-

o bers in the said Province or being a Life Assurance Company " in

section 12, subdivision IV., of the principal Act are hereby repealed.

(2) Subdivision XII. of section 12 of the principal Act is hereby

repealed.

(3) In the case of the income of a taxpayer being a company carrying on business in the said State and also elsewhere, and-

(a ) Carrying on the business of life assurance: The taxable amount

of income from life assurance business shall be such por- tion of the company's profits and surplus from life assur- ance as shall be or would if all such profits and surplus were distributable amongst the company's policy holders be actuarialiy distributable to or amongst the South Australian holders of the company's policies:

(6,) Carrying on any business other than banking, fire insurance,

life assurance, marine insurance, carrying by sea: The taxable amount of income from such business other than as aforesaid shall be a sum which shall bear to the com- pany's whole net income, wherever arising from such business other than as aforesaid, the proportion which the assets of the company in South Australia shall bear to the whole assets of the company at the time as at which the income is calculated; but assets held or employed wholly for the purpose of the business of banking, fire insurance, life assurance, marine insurance, or carrying by sea being excluded from the reckoning to ascertain the proportion: Provided, nevertheless, that in cases in which money or security for money is the only asset of such company in South Australia, then the interest earned in South Aus- tralia on such money shall, subject to the deduction there- from of interest on money borrowed by such company in South Australia, be the taxable amount of such compapy's income.

(4) Subdivision X. of section 12 of the principal Act and any

amendment thereof shall not apply to the account or income of any

taxpayer being a company.

(6) Subject to the provisions of this Act and of section 12, subdivision I v., of the principal Act, the taxable amount of income of a company shall be ascertained in the same manner as if the company were an individual natural person; and all moneys held by any company at the commencement of or during the year one thousand nine hundred and four arising from profits made by such company within the past ten years, and upon which income tax has not hitherto been paid, shall, subject to all lawful deductions for losses and shortages, be deemed to be and be taxable as income for that year.

Companies in

liquidation. 18, Any company now or hereafter in course of being wound up,

and which at the commencement of the winding-up was or shall

be

4' EDWARDI VII, No. 861.

The Taxation Act A d m e n t Act.-1904.

be subject to section 62 of the principal Act, shall continue to be subject to that section, and be deemed to carry on business in the said State so long as the winding-up shall continue in the said State or with relation to any assets of the company in the said State.

19. The legal personal representative or the Public Trustee, or Tax on incomee on

deceas*~ermn8-

other person, administering or getting in the estate af any person the deceased person should (if living) have furnished, and be bound by any assessments made against or in the name of the deceased person as taxpayer, either in the lifetime of the deceased person or after his death, and before the Commissioner shall have had notice, in writing, of such death, but may appeal against the same in the manner and time and upon the ground in and upon which the deceased (if living) might have appealed against the same.

who has died since the first day of January, one thousand nine hun-

dred and four, or shall hereafter die, shall be a taxpayer i n a

representative capacity in respect of the income of the deceased

person from the first day of January last preceding his decesse, up

to his decease, and in the year immediately prior to such first day of

20. (1) Where the person having or entitled to any income securingpeymentof section 9 of this -4ct shall not be taxes on income from

described in subdivision ( b ) of rents, &C., in certain

known to the Commissioner to be in. South Australia, the Commis- awe.

sioner may give notice thereof in form and manner prescribed to

either or both-

(a) The Registrar-General:

( b ) The person liable to pay the rent, interest, or other profits.

(2) Such notice to the Registrar-General shall be registered, and shall operate as a charge created by the person having or entitled to the said income upon all his estate and interest in the lands out of, or upon, or by which the rents, interests, or profits shall be issuable,	charged, or secured of all moneys then payable, or which shall	thereafter become payable, for income tax upon the said income of
such person. If such person be a registered proprietor under " The
Real Property Act, 1886," or any Act amending or substituted for
that Act, the Commissioner shall have the same rights and powers
as if such charge were created by a memorandum of encumbrance
executed by such registered proprietor in favor of the Commissioner I
as encumbrancee, but subject to all existing encumbrances.
(3) Upon payment of any income tax on any such income, the Commissioner shall give a receipt therefor in the prescribed form, and such receipt shall be registered by the Registrar-General on production to him.
(4) After such notice as aforesaid to the person liable to pay the rent, interest, or other profits, such person shall, while he continues so liable, be a taxpayer in a representative capacity in respect of such income. Such notice shall be conclusive evidence of

the

4 O EDWARDI VII, No. 861.

The Twatwn Act Amendment A c t. 1 9 0 4.

the fact stated therein in all matters, suits, actions, or proceedings by or against such person against or at the suit of the person entitled to the income, or any other person. All moneys payable when such notice is given or afterwards payable by the person to whom the notice is given shall be deemed to be property over which such person has control. Such person having paid any tax by virtue ot this section may deduct and retain the same out of any moneys then payable or thereafter to become payable by him on account of such rent, interest, or other profits.

Inquiriue by corn-

misaioner. 21, Section 68 of the principal Act is amended by striking out

the first two lines thereof and inserting in lieu of the words in such

Amendment. two lines the words "The Commissioner from time to time after making any assessment, or before and in contemplation of making

. any assessment, or with a view to determining whether an assess- ment should or should not be made, and whether any return shall have been made by the person or persons against whom any assess- ment has been or is proposed to be made or not, may make ".

Returne of intweet, 22, Returns in the prescribed manner and form may be required

etc.

by the Commissioner from any person or company in South Aus- tralia of all payments of interest or rent by such person or company.

Penalty. 23, Any person who shall fail to furnish any such return when

required, or shall wilfully furnish any false return, shall be liable

to a penalty not exceeding Fifty Pounds.

Deductionforeervicee 24, The Commissioner may allow every taxpayer to deduct of Bone and daughtere. from his .income a reasonable amount for the services of his

sons and daughters over the age of sixteen years whilst employed

by him in his trade or occupation.

Disputed aesaemente. 26, The Commissioner shall in all cases of disputed assessment render to the taxpayers a full and particular account of his claim.

Copiee of regulations 26, The Commissioner shall, on payment of the sum of One

saleable.

Shilling, furnish to every applicant a printed copy of all regulations

for the time being in force.

Farmere' returns. 27, Farmers' income tax returns shall henceforth be made up to

the thirty-first day of March in every year.

In the name and on behalf of His Majesty, I hereby assent to

this Bill.

GEORGE R. LE HUNTE, Governor.

-- - -

Adelaide : By authority, C. E. BRIOTOW, Government Printer, North Terrace.