STATUTORY RULES
1970 No.
REGULATIONS UNDER THE INCOME TAX ASSESSMENT ACT 1936-1970.*
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 1936-1970.
Dated this twenty-ninth day of October, 1970.
Paul Hasluck
Governor-General.
By His Excellency’s Command,
Treasurer.
Amendments op the Income Tax Regulations†
Parts.
1. Regulation 2 of the Income Tax Regulations is amended by omitting the words—
“Division 3.—Provisional Tax (Regulations 54ze-54zea).”
and inserting in their stead the words—
“Division 3.—Provisional Tax (Regulation 54zn).”.
2. Regulations 54ze and 54zea of the Income Tax Regulations are repealed and the following regulation is inserted in their stead:—
Provisional tax for the year of income 1970-1971.
“54ze. For the purposes of sub-section (2.) of section 221yc of the Act, the extent to which, and manner in which, the provisional tax otherwise payable by a taxpayer in respect of the income of the year of income ending on the thirtieth day of June, 1971, is to be decreased arc as follows:—
(a) in a case where the provisional income of the taxpayer in respect of that year of income is equal to his taxable income for the year next preceding that year of income—the provisional tax otherwise payable by the taxpayer shall be decreased by the amount, if any, by which the amount of income tax assessed, in accordance with the Income Tax Act 1969, in respect of the taxable income of that next preceding year exceeds the amount of income tax that would have been assessed, in accordance with the Income Tax Act 1970, in respect of the taxable income of that next preceding year if the Income Tax Act 1970 had applied to the assessment of income tax in respect of the taxable income of that next preceding year; or
(b) in any other case—the provisional tax otherwise payable by the taxpayer shall be decreased by the amount, if any, by which the amount of income tax that would have been assessed, in accordance with the Income Tax Act 1969, in respect of the taxable income of that next preceding year if the taxable income had been equal to the provisional income exceeds the amount of income tax that would have
* Notified in the Commonwealth Gazette on 1970.
† Statutory Rules 1936, No. 94 as amended to date. For previous amendments of the Income Tax Regulations see footnote † to Statutory Rules 1970, No. , and see also Statutory Rules 1970, No.
22563/70—Price 5c 10/13.10.1970
been assessed, in accordance with the Income Tax Act 1970, in respect of the taxable income of that next preceding year—
(i) if the taxable income had been equal to the provisional income; and
(ii) if the Income Tax Act 1970 had applied to the assessment of income tax in respect of the taxable income of that next preceding year.”.
Printed by Authority by the Government Printer of the Commonwealth of Australia
Overview
The Statutory Rules 1970 No. 1970, made under the Income Tax Assessment Act 1936-1970, were enacted to amend the Income Tax Regulations in response to changes in the Income Tax Act 1970. These regulations specifically target provisional tax provisions for the year of income 1970-1971, aiming to address discrepancies that may arise due to the transitional changes between the 1969 and 1970 Acts. The enacting body was the Governor-General in Council, which reflects the legislative authority vested in the Commonwealth government. The primary objective of these regulations is to ensure that taxpayers are not unduly burdened by provisional tax liabilities that may not accurately reflect their actual tax obligations under the new legislative framework.
Scope and Application
The Statutory Rules 1970 No. 225, made under the Income Tax Assessment Act 1936-1970, detail amendments to the Income Tax Regulations, specifically addressing provisional tax for the year of income ending 30 June 1971. This legislation applies to taxpayers who are subject to provisional tax obligations for that financial year. The changes are aimed at modifying the criteria for decreasing provisional tax payments based on the comparison between the assessed income tax for the preceding year under the Income Tax Act 1969 and the hypothetical assessment under the Income Tax Act 1970. The regulations apply nationally across the Commonwealth of Australia and are part of a broader legislative framework designed to ensure taxpayers are not overburdened by provisional tax liabilities. The amendments and repeals outlined in these regulations reflect changes in the legislative approach to provisional tax, providing relief to taxpayers in specific scenarios. This regulation demonstrates how the Australian taxation system can adapt to legislative changes to better align with the needs of taxpayers.
Key Provisions
The Income Tax Regulations 1970 (F1997B00300) introduces changes to the provisional tax provisions under section 221yc of the Income Tax Assessment Act 1936-1970. Regulation 54ze outlines the specific circumstances under which the provisional tax payable for the 1970-1971 income year is to be adjusted. For taxpayers whose provisional income for this period equals their taxable income from the previous year, the provisional tax is to be reduced by the difference in the amount of income tax assessed under the Income Tax Act 1969 and what it would have been under the Income Tax Act 1970, had the latter applied (Regulation 54ze(a)). In all other cases, the provisional tax is decreased by the difference in the amount of income tax that would have been assessed under the Income Tax Act 1969, if the taxable income had been equal to the provisional income, and what it would have been under the Income Tax Act 1970, assuming it applied (Regulation 54ze(b)).
These regulations impose obligations on taxpayers to ensure they calculate their provisional tax correctly, taking into account the adjustments specified in the regulations. Specifically, taxpayers must assess their provisional income and compare it to their previous year's taxable income, then determine the applicable tax adjustments based on the criteria outlined in Regulation 54ze. They must also ensure they understand the differences in tax assessment under the Income Tax Act 1969 and the Income Tax Act 1970 to correctly apply the provisions.
Failure to comply with the requirements of these regulations may result in penalties or other consequences. While the specific penalties for non-compliance are not detailed in the regulations, it is likely that penalties could include fines or interest on unpaid taxes, as is common in tax legislation. The severity of the penalties would depend on the degree and intent of non-compliance, with more severe penalties potentially applying in cases of deliberate or repeated non-compliance. The maximum penalties would be aligned with those specified under the Income Tax Assessment Act 1936-1970 or any other relevant legislation governing tax compliance.