INCOME TAX AND SOCIAL SERVICES CONTRIBUTION (PROVISIONAL TAX).
No. 15 of 1962.
An Act relating to Income Tax.
[Assented to 28th March, 1962.]
BE it enacted by the Queen’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 Income Tax and Social Services Contribution (Provisional Tax) Act 1962.
Commencement.
2.—(1.) Subject to the next succeeding sub-section, this Act shall come into operation on the day on which it receives the Royal Assent.
(2.) Sections three, four and five of this Act shall be deemed to have come into operation on the thirtieth day of October, One thousand nine hundred and sixty-one.
Definition.
3. In this Act, “the Assessment Act” means the Income Tax and Social Services Contribution Assessment Act 1936–1961.
Incorporation.
4. The Assessment Act is incorporated and shall be read as one with this Act.
Provisional tax for year of income commencing 1st July, 1961.
5. In the application to a taxpayer of sub-section (1.) of section two hundred and twenty-one yc of the Assessment Act for the purposes of provisional tax in respect of income of the year of income that commenced on the first day of July, One thousand nine hundred and sixty-one—
(a) if paragraph (a) of that sub-section applies to the taxpayer—the amount payable by virtue of that paragraph shall be deemed to be an amount equal to the income tax that would have been payable in respect of his taxable income of the year next preceding that year of income if the taxpayer had been entitled in his assessment to a rebate of an amount equal to one-twentieth of the amount calculated by applying the rates of tax set out in the First Schedule to the Income Tax and Social Services Contribution Act (No. 2) 1960 to that taxable income; and
(b) if paragraph (b) of that sub-section applies to the taxpayer—the amount payable by virtue of that paragraph shall be deemed to be an amount equal to the income tax that would have been payable in respect of his taxable income of that next preceding year if—
(i) that taxable income had been equal to the provisional income; and
(ii) the taxpayer had been entitled in his assessment to a rebate of an amount equal to one-twentieth of the amount calculated by applying the rates of tax set out in the First Schedule to the Income Tax and Social Services Contribution Act (No. 2) 1960 to a taxable income equal to the provisional income.
Provisional tax on estimated income.
6. In relation to provisional tax in respect of income of the year of income that commenced on the first day of July, One thousand nine hundred and sixty-one, section two hundred and twenty-one yda of the Assessment Act shall be deemed to have had effect as if the Income Tax and Social Services Contribution (Rebate) Act 1962 had come into operation on the thirtieth day of October, One thousand nine hundred and sixty-one, and the amount of any such provisional tax shown in any statement furnished to the Commissioner under that section had been calculated accordingly.
Overview
The Income Tax and Social Services Contribution (Provisional Tax) Act 1962 was enacted to address the need for provisional tax payments for the year of income commencing on the 1st of July 1961. This legislation was introduced by the Commonwealth Parliament and aims to ensure taxpayers meet their provisional tax obligations for that specific income year. The Act incorporates and is read together with the Income Tax and Social Services Contribution Assessment Act 1936–1961, providing a structured framework for calculating and applying provisional tax based on the taxpayer's previous year's income. By deeming certain sections to have come into operation on the 30th of October 1961, the Act facilitates the timely and accurate calculation of provisional taxes, thereby supporting the efficient administration of income tax obligations.
Scope and Application
The Income Tax and Social Services Contribution (Provisional Tax) Act 1962 applies to taxpayers, particularly those who need to pay provisional tax for the year of income commencing on the first day of July 1961. This Act operates within the Commonwealth of Australia and is incorporated with the Income Tax and Social Services Contribution Assessment Act 1936–1961, ensuring it is read as one with this Act. It specifically addresses provisional tax calculations for the specified financial year, modifying the amounts payable based on the previous year’s taxable income and applying certain rebates. The Act extends its application through the deemed operation of certain sections from a specific date prior to the general commencement of the Act, thus affecting taxpayers’ provisional tax obligations retroactively to a limited extent.
Key Provisions
The Income Tax and Social Services Contribution (Provisional Tax) Act 1962 (referred to as the Act) establishes provisional tax provisions for the year of income commencing on 1 July 1961, as outlined in sections 5 and 6. Section 5 provides the formula for determining the amount of provisional tax payable by a taxpayer, depending on whether paragraph (a) or (b) of sub-section (1) of section two hundred and twenty-one yc of the Assessment Act applies. Section 6 modifies the application of section two hundred and twenty-one yda of the Assessment Act to account for the Income Tax and Social Services Contribution (Rebate) Act 1962.
The Act imposes specific obligations on taxpayers, requiring them to calculate their provisional tax liability based on the formulae provided in section 5. The Act also requires taxpayers to furnish any statements of provisional tax to the Commissioner, as per section two hundred and twenty-one yda of the Assessment Act, ensuring that these statements reflect the provisional tax calculated in accordance with section 6.
Failure to comply with the provisions of this Act may result in civil or criminal consequences. While the Act itself does not specify the exact penalties for non-compliance, it is understood that breaches of tax laws can result in penalties under the general tax legislation, such as the Income Tax Assessment Act 1997 (Cth). These penalties may include fines, interest on unpaid tax, and in serious cases, imprisonment. The specific penalties would be determined based on the nature and extent of the non-compliance, as well as any mitigating or aggravating factors.