STATUTORY RULES.
1944. No. 124.
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REGULATIONS UNDER THE INCOME TAX ASSESSMENT ACT 1936-1944.*
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 Assessment Act 1936-1944.
Dated this twenty-second day of August , 1944.
(SGD.) GOWRIE.
Governor-General.
By His Excellency’s Command,
Treasurer.
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Amendments of the Income Tax Regulations. †
Returns by companies.
1. Regulation 11 of the Income Tax Regulations is amended by inserting in sub-regulation (1.), after paragraph (b), the following paragraph:—
“(ba) a statement of particulars of advances or loans made by a private company to its shareholders, or of payments made on behalf of, or for the individual benefit of, any of its shareholders and of the, dates of such advances, loans or payments;”.
Rates of deductions where employee has dependants.
2. Regulation 54b of the Income Tax Regulations is amended by re-lettering paragraphs (a), (b), (c), (d) and (e) of sub-regulation (1.) (being the paragraphs contained in that sub-regulation as inserted by Statutory Rules 1943, No. 80) as paragraphs (c), (d), (e), (f) and (g) respectively.
The First Schedule, Form 7.
3. The First Schedule to the Income Tax Regulations is amended by omitting from Form 7 all the words from and including the word “Date” to the end of the Form and inserting in their stead the following words:—
“Date † Signature of Agent
Agent’s Registered Number
† Where the agent is a partnership or a company, this certificate must be signed in the name of the partnership or company, as the case requires, by a person who is registered as a nominee of that partnership or company and that person’s name must also be appended.”.
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* Notified in the Commonwealth Gazette on , 1944.
† 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; and 1941. No. 90.
5063—Price 3d. 10/11.8.1944.
Overview
The Statutory Rules 1944 No. 124, made under the Income Tax Assessment Act 1936-1944, were enacted by the Governor-General, acting on the advice of the Federal Executive Council, to amend existing income tax regulations. This legislative instrument was introduced to address gaps and issues in the regulation of tax returns, particularly concerning companies and their interactions with shareholders, as well as to modify the rates of deductions available to employees with dependants. The primary objective of these amendments was to ensure more accurate and transparent reporting requirements for companies and to adjust the tax deductions system to better support employees with dependants. The changes sought to enhance the administration and enforcement of income tax laws by clarifying the information required from companies and updating the conditions under which employees could claim certain deductions.
Scope and Application
The Statutory Rules 1944, No. 124, made under the Income Tax Assessment Act 1936-1944, introduce amendments to the Income Tax Regulations. These regulations apply to all private companies and their shareholders within the Commonwealth of Australia. The primary focus of these amendments is to enhance transparency and compliance regarding financial transactions between companies and their shareholders. Specifically, private companies are now required to provide detailed statements on any advances or loans made to shareholders or payments made on their behalf, along with the relevant dates. Furthermore, these regulations also affect the rates of deductions for employees with dependants, restructuring the sub-regulations to better accommodate the needs of families. Additionally, the regulations mandate that agents signing company tax returns must be registered and include their registered number, with a specific requirement for partnerships and companies to ensure the signature is by a registered nominee. These amendments aim to streamline tax return processes and improve the accuracy of tax filings.
Key Provisions
The Income Tax Regulations, as amended by Statutory Rules 1944, No. 124, introduce several changes that impact how companies and their employees report income and related deductions. Regulation 11(1) now requires private companies to include a statement of particulars regarding any advances or loans made to shareholders, along with payments made on their behalf or for their individual benefit, and the dates of these transactions. This is intended to ensure greater transparency and accountability in financial dealings between companies and their shareholders (Regulation 11(1)(ba)).
In terms of employee deductions, Regulation 54b(1) has been re-lettered to accommodate new subparagraphs, reflecting updated criteria for deductions where an employee has dependants. This amendment is designed to provide more precise guidelines for calculating allowable deductions based on the number and nature of dependants (Regulation 54b(1)(c)-(g)).
The First Schedule to the Income Tax Regulations, specifically Form 7, has been revised to mandate that the signature of an agent must be accompanied by their registered number. Furthermore, if the agent is a partnership or a company, the form must be signed by a registered nominee of that entity, with their name also appended. This ensures that all agents are properly identified and registered, thereby maintaining the integrity of the tax reporting process (First Schedule, Form 7).
Entities and individuals governed by these regulations are obligated to adhere to these new requirements when filing their returns. Companies must now provide detailed statements of shareholder advances or loans and payments made on their behalf. Employees with dependants need to ensure their deductions are calculated according to the updated criteria. Agents signing tax forms on behalf of partnerships or companies must comply with the new signing requirements, including the registration of the nominee.
Failure to comply with these regulations can result in various consequences. While the specific offences and penalties are not detailed in the provided text, it is likely that non-compliance could lead to fines, interest on unpaid taxes, or other administrative penalties as stipulated by the Income Tax Assessment Act 1936-1944. Companies and individuals should ensure they meet all the specified requirements to avoid potential legal and financial repercussions.