INCOME TAX ASSESSMENT (No. 2).
No. 32 of 1921.
An Act to amend the Income Tax Assessment Act 1918.
[Assented to 17th December, 1921.]
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 Income Tax Assessment Act 1921 (No. 2).
Commencement.
2. This Act shall be deemed to have commenced upon the date of the commencement of section forty-eight of the Income Tax Assessment Act 1918.
Amendment of section 48.
3. Section forty-eight of the Income Tax Assessment Act 1918 is amended—
(a) by inserting in sub-section (1.) thereof, after the words “section five,” the words “section seven,”; and
(b) by omitting from sub-section (3.) thereof the words “section seven.”.
Overview
The Income Tax Assessment Act 1921 (No. 2) was enacted by the Australian Parliament to amend the Income Tax Assessment Act 1918. The primary aim of this Act was to address issues and inconsistencies identified in the original 1918 Act, particularly with respect to the treatment of income tax provisions. This legislative amendment sought to refine and update the taxation framework in order to ensure clarity and effectiveness in the application of income tax laws. The Act was assented to on 17th December 1921, and it came into force on the same date as the commencement of section forty-eight of the Income Tax Assessment Act 1918, ensuring a seamless transition and integration of the new provisions.
Scope and Application
The Income Tax Assessment (No. 2) Act 1921 applies to all taxpayers, including individuals, trusts, companies, and other entities, within the Commonwealth of Australia. It amends the Income Tax Assessment Act 1918 to modify the application and scope of certain tax provisions, specifically targeting sections five and seven. The Act’s amendments influence the assessment of income tax for the financial year and subsequent periods, thereby affecting how income is calculated, taxed, and reported by entities and individuals alike. While the Act itself primarily focuses on statutory amendments, its implications extend through subordinate instruments and administrative guidelines that further interpret and apply these changes within the tax framework. Notably, the Act does not explicitly state any exclusions, exemptions, or specific thresholds beyond those defined in the amended sections of the primary Act.
Key Provisions
The Income Tax Assessment Act 1921 (No. 2) (C1921A00032) is a legislative amendment that primarily affects section 48 of the Income Tax Assessment Act 1918. Section 3 of the Act inserts "section seven" into subsection (1) of section 48 of the 1918 Act, while also omitting "section seven" from subsection (3) of the same section. This amendment aims to refine the application of the tax provisions outlined in section 48.
Under this Act, taxpayers and the Australian Taxation Office (ATO) are subject to specific obligations. Taxpayers must ensure their tax returns and related documentation comply with the amended provisions of section 48. The ATO, on the other hand, must interpret and apply the amended section in accordance with the legislative changes introduced by this Act. This includes any adjustments necessary to reflect the insertion and omission of references to section seven in the specified subsections.
Breaches of the amended provisions can lead to various consequences. If a taxpayer fails to comply with the amended section 48, they may face civil or criminal penalties, depending on the nature and severity of the breach. While the Act itself does not specify maximum penalties, breaches of tax laws generally may result in substantial fines, interest on unpaid taxes, and potential prosecution under the criminal law. The consequences underscore the importance of accurate and compliant tax reporting and documentation.