STATUTORY RULES.
1949. No. .
REGULATION UNDER THE INCOME TAX ASSESSMENT ACT 1936-1948.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Income Tax Assessment Act 1936-1948.
Dated this fourth day of August, 1949.
J. NORTHCOTT
Deputy of the Governor-General.
By His Excellency’s Command,
Treasurer.
Amendment of the Income Tax Regulations.†
After regulation 54ak of the Income Tax Regulations the following regulation is inserted in Division 3 of Part VI.:—
Provisional tax for year of income 1949-1950.
“ 54al. For the purpose of ascertaining the amount of provisional tax payable by a taxpayer in accordance with the provisions of section 221yc of the Act in respect of the income of the year of income ending on the thirtieth day of June, 1950, the references in sub-section (1.) of that section to the income tax assessed in respect of the year next preceding that year of income shall be read as references to the income tax so assessed, reduced by—
(a) an amount calculated at the rate of—
(i) One pound for each Twenty-five pounds or part thereof of so much of the taxable income of that next preceding year of income as does not exceed One thousand pounds; and
(ii) One pound for each Fifteen pounds or part thereof of so much (if any) of that taxable income as exceeds One thousand pounds; or
(b) Four hundred and fifty pounds,
whichever is the lesser amount, and the provisional tax payable apart from this regulation shall be decreased accordingly.”.
* Notified in the Commonwealth Gazette on , 1949.
† Statutory Rules 1936, No. 94, as amended by Statutory Rules, Nos. 6 and 32; 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, 139 and 192; 1946, No. 135; 1947, Nos. 77 and 173; 1948, Nos. 115 and 162; and 1949, No. 25.
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
2712.—Price 3d. 10/16.6.1949.
Overview
The Statutory Rules 1949 No. 25, made under the Income Tax Assessment Act 1936-1948, was introduced to address a specific issue regarding provisional tax for the year of income 1949-1950. Enacted by the Governor-General in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, this legislative instrument aimed to provide a clear method for calculating the provisional tax payable by taxpayers. This regulation was necessary to ensure taxpayers could accurately determine their provisional tax liability based on the previous year's income tax assessed, adjusted in accordance with the prescribed rates and limits. The policy objective, as indicated by the regulation, is to streamline the provisional tax calculation process, ensuring it is both fair and aligned with the legislative framework of the Income Tax Assessment Act.
Scope and Application
The Income Tax Regulations 1949, under the Income Tax Assessment Act 1936-1948, apply to taxpayers in the Commonwealth of Australia who are required to pay provisional tax for the income year ending 30 June 1950. The regulation specifically alters the calculation of provisional tax, reducing the income tax assessed for the preceding year by a specified amount before determining the provisional tax payable. This regulation directly impacts individuals and entities subject to income tax in Australia, particularly those who are liable for provisional tax payments for the specified income year. The regulation’s application is confined to the Commonwealth of Australia, and it does not explicitly outline exclusions, exemptions, or thresholds beyond the income year in question. However, the regulation can be extended or restricted through subordinate instruments, as per the provisions of the Income Tax Assessment Act 1936-1948.
Key Provisions
This regulation, inserted as regulation 54al under the Income Tax Regulations, specifies the method for determining the provisional tax payable by a taxpayer for the year of income ending on 30th June 1950. According to section 221yc of the Income Tax Assessment Act 1936-1948, the provisional tax is calculated based on the income tax assessed for the preceding year, adjusted by a specific formula (section 54al(1)). The adjustment involves reducing the previously assessed income tax by either an amount calculated at a specified rate based on the taxable income of the preceding year, or a fixed amount of four hundred and fifty pounds, whichever is less. This reduction then affects the provisional tax payable by the taxpayer for the specified year.
The regulation imposes a clear obligation on taxpayers to correctly calculate their provisional tax liability for the 1949-1950 income year. This involves taking the income tax assessed for the year ending 30th June 1949, and applying the reduction formula as specified. This calculation must be done in accordance with the rates and thresholds set out in the regulation, ensuring that the provisional tax amount is correctly determined and reported. The regulation also requires taxpayers to adjust their provisional tax payments if necessary to align with the new calculation, ensuring compliance with the tax obligations for the year in question.
Failure to correctly calculate and pay the provisional tax as per the regulation can lead to potential legal consequences. Although the regulation itself does not explicitly detail the penalties or consequences for non-compliance, breaches of the Income Tax Assessment Act 1936-1948 generally attract penalties. These may include fines and interest on the unpaid tax. The specific penalties for non-compliance would be determined under the general provisions of the Income Tax Assessment Act and could include substantial financial penalties, depending on the severity and intent of the non-compliance.