WAR-TIME (COMPANY) TAX.
No. 91 of 1940.
An Act to impose a War-time Tax upon Companies.
[Assented to 17th December, 1940.]
BE it enacted by the King’s Most Excellent
Majesty, the Senate, and the House of Representatives of the Commonwealth of
Australia, as follows:—
Short title.
1.This
Act may be cited as the War-time (Company) Tax Act 1940.
Commencement.
2.This
Act shall come into operation on the day on which it receives the Royal Assent.
Incorporation.
3. The War-time (Company) Tax Assessment Act 1940
shall be incorporated and read as one with this Act.
Imposition of tax.
4.A
tax is imposed, at the rates specified in this Act, on the amount by which the
taxable profit of any company exceeds the percentage standard.
Rates of tax.
5.—(1.) In respect of the amount by which the taxable
profit of a company (other than a company to which sub-section (2.) or (3.) of
this section applies) exceeds the percentage standard—
(a)
where the excess is not more than one per centum of the capital employed—the
rate of tax shall be four per centum; and
(b)
where the excess is more than one per centum of the capital employed—the rate
of tax in respect of the excess referred to in the first column of the Schedule
to this Act shall be—
(i) on so much of that excess as is equal to
the percentage of the capital employed specified in the second column of that
Schedule—the rate specified in the third column of that Schedule; and
(ii) on the remainder of that excess—the rate
specified in the fourth column of that Schedule.
(2.) The rate of tax in respect of every pound by
which the taxable profit of a company which is a primary producer exceeds the
percentage standard shall be that percentage which the amount of tax which
would be payable in accordance with the last preceding sub-section if the
average taxable profit of the company, ascertained in accordance with section
fifteen of the War-time (Company) Tax Assessment Act 1940, were the taxable profit of a company which
is not a primary producer bears to the amount by which that average taxable
profit exceeds the percentage standard.
(3.) Where a company has elected to have the amount
of a net premium received in respect of a lease spread over the term of the
lease for the purpose of ascertaining the rate of tax applicable to the
company, the rate of tax in respect of every
pound by which the taxable profit of that company exceeds the percentage
standard shall be that percentage which the amount of tax which would be
payable in accordance with sub-section (1.) of this section if the deemed
taxable profit, ascertained in accordance with section sixteen of the War-time (Company) Tax Assessment Act 1940,
were the taxable profit of a company which had not so elected, bears to the
amount by which that deemed taxable profit exceeds the percentage standard.
Levy of tax.
6. The tax imposed by this Act shall be levied and paid for the
financial year beginning on the first day of July, One thousand nine hundred
and forty and for each financial year thereafter.
—
THE SCHEDULE.
Col.
1. | Col.
2. | Col.
3. | Col.
4. |
— | Percentage
of portion of excess to capital employed. | Rate
of tax on portion of excess shown in Col. 2. | Rate
of tax on remainder of excess. |
per centum. | per centum. | per centum. |
Where the excess is more than one per centum
of the capital employed but not more than two per centum...................................
| 1 | 4 | 8 |
Where the excess is more than two per centum
of the capital employed but not more than three per centum.................................
| 2 | 6 | 12 |
Where the excess is more than three per
centum of the capital employed but not more than four per centum..................................
| 3 | 8 | 16 |
Where the excess is more than four per centum
of the capital employed but not more than five per centum...................................
| 4 | 10 | 20 |
Where the excess is more than five per centum
of the capital employed but not more than six per centum....................................
| 5 | 12 | 24 |
Where the excess is more than six per centum
of the capital employed but not more than seven per centum................................
| 6 | 14 | 28 |
Where the excess is more than seven per
centum of the capital employed but not more than eight per centum................
| 7 | 16 | 32 |
Where the excess is more than eight per
centum of the capital employed but not more than nine per centum..................................
| 8 | 18 | 36 |
Where the excess is more than nine per centum
of the capital employed but not more than ten per centum....................................
| 9 | 20 | 40 |
Where the excess is more than ten per centum
of the capital employed but not more than eleven per centum..............................
| 10 | 22 | 44 |
Where the excess is more than eleven per
centum of the capital employed but not more than twelve per centum.............
| 11 | 24 | 48 |
Where the excess is more than twelve per centum
of the capital employed but not more than thirteen per centum............
| 12 | 26 | 52 |
Where the excess is more than thirteen per
centum of the capital employed but not more than fourteen per centum...........
| 13 | 28 | 56 |
Where the excess is more than fourteen per centum
of the capital employed.........................................................................
| 14 | 30 | 60 |