Income Tax Assessment
No. 5 of 1972
An Act to amend the Law relating to Income Tax in respect of a Special Deduction for Investment in Manufacturing Plant.
[Assented to 24 March 1972]
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 and citation.
1.—(1.) This Act may be cited as the Income Tax Assessment Act 1972.
(2.) The Income Tax Assessment Act 1936–1971, as amended by this Act, may be cited as the Income Tax Assessment Act 1936–1972.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Special deduction for investment in manufacturing plant.
3. Section 62aa of the Income Tax Assessment Act 1936–1971 is amended—
(a) by inserting in sub-section (13.), after the word “seventy-one,”, the words “and before the fourteenth day of February, One thousand nine hundred and seventy-two,”; and
(b) by omitting from sub-section (13.) the word “that” and inserting in its stead the words “the first-mentioned”.
Amendment of assessments.
4. Nothing in section 170 of the Income Tax Assessment Act 1936–1972 prevents the amendment of an assessment for the purpose of giving effect to the amendments made by the last preceding section.
Overview
The Income Tax Assessment Act 1972 was enacted to address the need for incentivising investments in manufacturing plant by introducing a special tax deduction. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and it came into effect on the day of its Royal Assent, 24 March 1972. Its policy objective is to encourage economic growth through increased manufacturing capacity by allowing taxpayers a specific deduction for investments made in manufacturing plant before a certain date. The Act amends the Income Tax Assessment Act 1936–1971 to include this special deduction, ensuring that assessments can be adjusted to reflect these changes.
Scope and Application
The Income Tax Assessment Act 1972, as amended, provides a special deduction for investment in manufacturing plant and applies to entities subject to the Income Tax Assessment Act 1936–1972. Specifically, it allows for the amendment of assessments to reflect the new deduction provisions, which are applicable to investments made before a specified date. The Act's amendments extend to any assessments made under the Income Tax Assessment Act 1936–1971 as it has been updated by this legislation. This Act operates within the Commonwealth jurisdiction, affecting taxpayers who are subject to federal income tax laws in Australia. There are no stated exclusions or exemptions in the provided text, and the application of the Act is not further extended or restricted by subordinate instruments.
Key Provisions
The Income Tax Assessment Act 1972 primarily amends the Income Tax Assessment Act 1936–1971 to introduce a special deduction for investments in manufacturing plant. Under this Act, section 62aa is amended (section 3) to provide this special deduction. Specifically, it alters the date criteria by inserting a new date before the fourteenth of February, 1972, and modifies the wording within the sub-section to ensure clarity and precision in the application of the deduction (section 3(a) and (b)).
This Act imposes specific obligations on taxpayers and the Australian Taxation Office (ATO). Taxpayers must ensure their investments in manufacturing plant fall within the newly defined criteria to claim the special deduction. They must also accurately report these investments when lodging their tax returns to comply with the amendments introduced by this Act (section 4). The ATO, on the other hand, is required to process these amended returns and apply the special deduction where applicable, ensuring that the changes are correctly reflected in the taxpayers' assessments.
Breaching the provisions of this Act can lead to various consequences. The Act does not explicitly outline specific offences or penalties within the provided text; however, general tax law principles apply. Non-compliance with tax laws can result in penalties, including fines and interest on unpaid taxes. In more severe cases, criminal charges might be pursued, leading to potential imprisonment. The exact penalties would depend on the nature and extent of the breach, as well as any relevant case law or additional tax legislation.