STATUTORY RULES.
1960. No. 44.
REGULATIONS UNDER THE INCOME TAX AND SOCIAL SERVICES CONTRIBUTION ASSESSMENT ACT 1936-1960.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Income Tax and Social Services Contribution Assessment Act 1936-1960.
Dated this 16th day of June, 1960.
DUNROSSIL
Governor-General.
By His Excellency’s Command,
Treasurer.
Amendments of the Income Tax and Social Services Contribution Regulations.†
Parts.
1. Regulation 2 of the Income Tax and Social Services Contribution Regulations is amended—
(a) by omitting the words—
“Part III.—Liability to Taxation (Regulations 4aa-8).”
and inserting in their stead the words—
“Part III.—Liability to Taxation (Regulations 4aa-8a).”;
and
(b) by inserting after the words—
“Division 3.—Provisional Tax and Contribution (Regulation 54ze).”
the words—
“Division 4.—Collection of Dividend (Withholding) Tax (Regulations 54zf-54zk).”.
Organizations prescribed for purposes of s. 23(x) and (y).
2. Regulation 4ab of the Income Tax and Social Services Contribution Regulations is amended—
(a) by omitting from paragraph (m) of sub-regulation (1.) the word “and”; and
(b) by adding at the end of sub-regulation (1.) the following word and paragraph:—
“; and (o) International Atomic Energy Agency.”.
* Notified in the Commonwealth Gazette on 17th June, 1960.
† Statutory Rules 1936, No. 94, as amended by Statutory Rules 1939, Nos. 6 and 42; 1940, Nos. 138 and 289; 1941, Nos. 120 and 327; 1942, Nos. 339 and 553; 1943, Nos. 80, 127 and 151; 1944, Nos. 90 and 124; 1945, Nos. 12, 85, 169 and 192; 1946, No. 135; 1947, Nos. 77 and 173; 1948, Nos. 115 and 162; 1949, Nos. 25 and 50; 1950, Nos. 63 and 101; 1951, Nos. 136 and 157; 1952, Nos. 89, 90 and 102; 1953, Nos. 55 and 88; 1954, Nos. 11, 99 and 112; 1955, No. 23; 1956, Nos. 34, 35 and 96; 1957, Nos. 39 and 74; 1958, Nos. 27 and 70; and 1959, Nos. 25 and 81.
4063/60.—Price 5d. 9/7.6.1960.
3. After regulation 8 of the Income Tax and Social Services Contribution Regulations the following regulation is inserted in Part III.:—
Notice of election under section 128d.
“8a. A notice under sub-section (2.) of section 128d of the Act shall—
(a) be signed by the person giving the notice or another person duly authorized to sign the notice on his behalf; and
(b) be delivered to the Commissioner at the office of the Deputy Commissioner, Central Office, Melbourne.”.
Returns.
4. Regulation 9 of the Income Tax and Social Services Contribution Regulations is amended by adding at the end thereof the following sub-regulation:—
“(3.) In the case of a return (not being a return under regulation 13 or 15) by a non-resident who has derived non-resident dividend income, the form of return may be altered so as to refer only to income other than non-resident dividend income.”.
5. After regulation 11a of the Income Tax and Social Services Contribution Regulations the following regulation is inserted:—
Statements under section 128d.
“11b.—(1.) A statement referred to in sub-section (3.) of section 128d of the Act shall be in a form authorized by the Commissioner and shall contain a declaration by the person signing the statement that the information shown in the statement is true and correct in every particular and discloses without reservation or exception—
(a) all non-resident dividend income derived by the taxpayer during the year of income; and
(b) all other income derived by the taxpayer during the year of income, other than income included in a return furnished by the taxpayer under section 161 of the Act and income (not being income consisting of dividends to which paragraph (b) of sub-section (1.) of section 44 of the Act applies) derived by the taxpayer from sources outside Australia.
“(2.) In regulations 19, 20, 25 and 32, but not in any other regulation, ‘return’ includes a statement referred to in sub-section (3.) of section 128d of the Act.”.
Separate returns by partners.
6. Regulation 14 of the Income Tax and Social Services Contribution Regulations is amended by adding at the end thereof the following sub-regulation:—
“(3.) In this regulation, ‘income’ does not include non-resident dividend income.”.
Furnishing of returns by residents.
7. Regulation 21 of the Income Tax and Social Services Contribution Regulations is amended—
(a) by inserting in paragraph (a) of sub-regulation (1.), after the word “income”, the words “of a resident”;
(b) by inserting in sub-regulation (2.), after the word “income” (wherever occurring), the words “ of a resident”; and
(c) by omitting from sub-regulation (3.) the word “person” (last occurring) and inserting in its stead the words “resident of Australia”.
Furnishing of returns by residents when income partly of dividends.
8. Regulation 22 of the Income Tax and Social Services Contribution Regulations is amended by inserting after the word “income” (first occurring) the words “of a resident”.
Furnishing of returns by members of Defence Force.
9. Regulation 22a of the Income Tax and Social Services Contribution Regulations is amended by inserting in sub-regulation (l.) after the word “regulations,”, the words “but subject to the next succeeding regulation,”.
10. After regulation 22a of the Income Tax and Social Services Contribution Regulations the following regulation is inserted:—
Furnishing of returns by non-residents.
“22b.—(1.) Subject to sub-regulation (3.) of this regulation, where the income of a non-resident from sources in Australia is derived wholly within one State, the return of income of the non-resident shall be furnished to the Commissioner at the office of the Deputy Commissioner in that State.
“(2.) Subject to the next succeeding sub-regulation, where the income of a non-resident from sources in Australia is derived wholly within the Australian Capital Territory, the return of income shall be furnished to the Commissioner at his office in Canberra.
“(3.) Where, in a year of income, in relation to a share or stock in a company that is a resident, a non-resident—
(a) has derived or become entitled to income consisting of a dividend, or a part of a dividend, paid by the company; or
(b) would, if the company had paid a dividend in respect of that share or stock, have derived or become entitled to income consisting of that dividend or a part of that dividend,
the return of income derived by the non-resident during the year of income shall be furnished to the Commissioner at the office of the Deputy Commissioner, Central Office, Melbourne.
“(4.) In any case to which the preceding provisions of this regulation do not apply, the return of income of a non-resident shall be furnished to the Commissioner at the office of the Deputy Commissioner, Central Office, Melbourne.”.
How tax may be paid.
11. Regulation 44 of the Income Tax and Social Services Contribution Regulations is amended—
(a) by inserting after the words “income tax” the words “or dividend (withholding) tax”; and
(b) by omitting from paragraph (c) the words “Commonwealth Bank” and inserting in their stead the words “Reserve Bank”.
How amounts may be paid to Commissioner.
12. Regulation 54g of the Income Tax and Social Services Contribution Regulations is amended by omitting from paragraph (c) the words “Commonwealth Bank” and inserting in their stead the words “Reserve Bank”.
13. The following Division is added at the end of Part VI. of the Income Tax and Social Services Contribution Regulations:—
“Division 4.—Collection of Dividend (Withholding) Tax.
Definitions.
“54zf. In this Division, unless the contrary intention appears—
‘dividend’ includes part of a dividend;
‘prescribed country’ means a country, other than Australia, that is a party to a convention or agreement a copy of which is set out in a Schedule to the Income Tax (International Agreements) Act 1953-1960.
Deductions from dividends.
“54zg.—(1.) Subject to this regulation, the amount of the deduction to be made from a dividend under section 221yl of the Act is thirty per centum of the dividend.
“(2.) Where—
(a) the holder, or (if there is more than one holder) each holder, of a share or stock in a company is shown, in relation to the share or stock, in the register of members of the company as having an address in a prescribed country or in Australia; and
(b) the company has not been authorized or directed by the holder or any of the holders to pay dividends in respect of the share or stock at a place outside Australia that is not in a prescribed country,
the amount of the deduction to be made under sub-section (1.) of section 221yl of the Act from a dividend paid in respect of the share or stock is fifteen per centum of the dividend.
“(3.) Where—
(a) a dividend is paid to a person in Australia; and
(b) another person who is a non-resident but is a resident of a prescribed country is entitled to receive the dividend, or a part of the dividend, from the first-mentioned person,
the amount of the deduction to be made from the dividend, or the part of the dividend, under sub-section (2.) of section 221yl of the Act is fifteen per centum of the dividend.
“(4.) Sub-regulation (2.) of this regulation does not apply in relation to a dividend paid to a resident of the United Kingdom or the United States of America, and the last preceding sub-regulation does not apply in relation to a dividend to which a resident of the United Kingdom or the United States of America is entitled, if the dividend is included in a class of dividends that is exempt from tax under the law of the United Kingdom or the United States of America, as the case may be.
Deductions to be reduced in certain cases.
“54zh. Where—
(a) an amount has been deducted from a dividend under section 221yl of the Act; and
(b) a person is required to make a further deduction from the dividend under that section,
the amount of that deduction as determined under the last preceding regulation shall be reduced by that first-mentioned amount.
Advice of deductions from dividends.
“54zi. Where—
(a) a person makes a deduction from a dividend, being a deduction made, or purporting to be made, under section 221yl of the Act; and
(b) the dividend is paid by that person to another person in Australia,
the first-mentioned person shall, at the time the dividend is paid by him to that other person, advise that other person in writing of the amount of the deduction made by him from the dividend.
How deductions may be paid to Commissioner.
“54zj. A person who is required to pay an amount to the Commissioner under paragraph (a) of sub-section (1.) of section 221yn of the Act may pay that amount—
(a) by delivery of cash, bank notes or cheques at the office of the Commissioner or any Deputy Commissioner;
(b) by remitting the amount to the Commissioner or any Deputy Commissioner by cheque or bank draft or by forwarding a postal money order or postal note payable in the State or Territory of the Commonwealth to which the remittance is sent; or
(c) by depositing the amount to the credit of the Commissioner or a Deputy Commissioner at any branch of the Reserve Bank of Australia.
Annual statement of deductions.
“54zk. The statement with respect to a deduction referred to in paragraph (b) of sub-section (1.) of section 221yn of the Act shall be furnished to the Commissioner at the place where the return of income of the person who made the deduction from the dividend is required by these Regulations to be furnished or, if that person is not required to furnish a return, at the office of the Deputy Commissioner, Central Office, Melbourne.”.
Application.
14.—(1.) The amendment made by regulation 2 of these Regulations applies for the purposes of assessments in respect of income of the year of income that commenced on the first day of July, 1959, and in respect of income of subsequent years.
(2.) The amendments made by regulations 7 to 10 (inclusive) of these Regulations apply in relation to returns of income derived in the year of income commencing on the first day of July, 1960, and returns of income derived in subsequent years.
By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra.