STATUTORY RULES.

1927. No. 159.

REGULATIONS UNDER THE INCOME TAX ASSESSMENT ACT 1922-1927.

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 1922-1927, to come into operation forthwith.

Dated this 22th day of December 1927

(Sgd.) STONEHAVEN

Governor-General.

By His Excellency’s Command,

for Treasurer.

Part i.—Introduction.

Short title.

1. These Regulations may be cited as the Income Tax Regulations.

2. The Income Tax Regulations 1922 (made by Statutory Rules 1923, No. 12), and any amendment thereof, as in force immediately preceding the date of the commencement of these Regulations, are repealed.

Parts.

3. These Regulations are divided into Parts, as follows:—

Part I.—Introductory.

Part II.—Returns.

Part III.—Payment of Income Tax.

Part IV.—Objections.

Part V.—Reviews by a Board of Review.

Part VI.—Miscellaneous.

Definition.

4. In these Regulations—

“Financial Year” means a financial year as fixed by the Act.

“The Act” means the Income Tax Assessment Act 1922, as amended from time to time.

“Prescribed delegate of the Commissioner” means a person appointed by the Commissioner to be a prescribed delegate of the Commissioner for the purpose of these Regulations.

Part II.—Returns.

Signature of returns.

5. Every return shall be signed by the person who makes it

Penalty: Twenty pounds.

1589.

Returns to be in First Form except as otherwise provided.

6. Except as hereinafter otherwise specially provided, every return shall be made and furnished in the First Form in the Schedule or in such other Form as is determined by the Commissioner.

Returns by companies.

7. Every return by a company shall be made and furnished in the Second Form in the Schedule or in such other Form as is determined by the Commissioner, and shall be accompanied by:—

(a) A Balance-sheet and Profit and Loss Account supporting the particulars in the return;

(b) A statement showing—

(i) the names and addresses of all shareholders to whom dividends or profits were credited, paid or distributed during the twelve months preceding the financial year for which income tax is payable; and

(ii) the amount (if any) of profits credited, paid or distributed to each shareholder during the twelve months preceding the financial year for which income tax is payable, whether or not the period covered by the company’s return differs from such financial year;

(c) A statement showing the amount paid or credited as interest to persons who are absentees in respect of debentures of the company used in Australia or on money lodged at interest in Australia with the company; and

(d) A statement showing—

(i) the total amount of the interest paid or credited by the company in respect of debentures payable to bearer, the names and addresses of the holders of which are not supplied to the Commissioner by the company;

(ii) the names and addresses of all holders of debentures payable to bearer which the company is in a position to furnish (whether absentees or residents in Australia), together with the amount of interest paid or credited to each of such persons during the twelve months preceding the financial year for which Income Tax is payable whether or not the period covered by the company’s return differs from such financial year.

(e) (If the return is the first return furnished by the company) notice of the appointment of the Public Officer of the company.

Return by partnerships.

8. Every partnership whose total income from all sources in Australia in any year exceeds £300 (three hundred pounds) shall, when called upon by the Commissioner by notice published in the Gazette, furnish to the Commissioner a partnership return setting forth a full and complete statement of the income derived by the partnership during the year in respect of which the return is required.

Return to be made by senior active partner in Australia.

9. Every partnership return shall be made and furnished by the Senior Active Partner resident in Australia.

Separate returns to be furnished for partners.

10.—(1) Every partner in a partnership shall furnish a separate return of his total individual income (including income from the partnership and from other sources) in every case in which he would be required to furnish a return if the same total income had been derived by him from sources other than the partnership.

(2) The return shall state the income derived respectively from—

(a) the partnership; and

(b) from other sources.

Agent to furnish separate returns for each principal.

11. Every person liable to furnish a return as agent for another person shall furnish a separate return for each person for whom he is agent in addition to his own individual return.

Partnership return by agent.

12. Every agent for a partnership shall furnish a partnership return and shall also if so required by the Commissioner furnish a separate return for each partner.

Where agent not sole agent.

13. If an agent is not the sole agent in Australia for a person required to furnish a return, he shall furnish a separate return stating all his transactions as agent for that person.

Trustees.

14.—(1) Every return in respect of a trust estate shall be made and furnished by the Senior Active Trustee resident in Australia.

(2) When there is no trustee resident in Australia the return shall be made and furnished by the agent in Australia for the trustees.

Statement to be furnished by employers.

15.—(1) Every employer of labour shall, when called upon by the Commissioner either by general notice published in the Gazette or by direct notice to the employer, furnish to the Commissioner a statement showing:—

(a) the names and addresses of all persons employed by him during the period mentioned in the notice;

(b) the capacity in which each person was employed;

(c) the total amount paid to each person during that period; and

(d) the value of board residence or other allowance made to each person during that period.

(2) Each statement shall be furnished to the Commissioner at the place where under the Regulations the return of the employer is to be furnished, unless the Commissioner otherwise directs.

Special returns.

16. Returns required by the Commissioner otherwise than by notice published in the Gazette pursuant to section 32 of the Act shall be made and furnished in the form specified in the requirements.

Substantially similar returns.

17. The Commissioner may at any time accept a return or notice in a form substantially similar to a prescribed form.

Balance-sheets to be furnished.

18. A copy of every balance-sheet and profit and loss account relating to the income included in any return shall be furnished with that return.

Lodging of returns.

19.—(1) Returns of income derived from sources wholly within one State shall be furnished to the Commissioner at the office of the Deputy Commissioner in that State.

(2) Returns of income derived from sources in Australia not wholly within any one State shall be furnished to the Commissioner at the head office of the Commissioner at Melbourne.

(3) Notwithstanding anything contained in this Regulation, returns of income derived by persons resident in the territory for the seat of government from sources within Australia shall be furnished to the Commissioner at his office in Canberra.

Source of dividends.

20. Income consisting of dividends on shares in a company shall be deemed to have been derived from a source within the State in which the head office of the company in Australia is situated.

Lodging of returns when income partly of dividends.

21. When part of an income consists of dividends on shares in companies and the remainder of the income has been derived from sources wholly within one State the return may be furnished to the Commissioner at the office of the Deputy Commissioner in that State notwithstanding that the dividends may have been derived from sources within other States.

Source of mortgage interest.

22.—(1) Income consisting of interest received under mortgage shall be deemed to have been derived from a source within the State in which the mortgaged property is situated.

(2) If the mortgaged property is situated in more than one State the income shall be deemed to have been derived from sources within more than one State.

Territories.

23. For all purposes of these Regulations—

(a) the territory of Papua shall be deemed to be in the State of Queensland; and

(b) the Territories of North Australia & Central Australia shall be deemed to be a separate State.

When return deemed to be furnished.

24. A return shall not be deemed to have been duly furnished to the Commissioner unless and until:—

(a) the proper form in accordance with these Regulations signed by the person making the return and containing a full true and complete statement of all matters and things required by the Act and Regulations, the Commissioner, and the form itself to be stated therein; and

(b) all balance-sheets, profit and loss accounts, statements, notices, and other documents which by the Act or the Regulations the Commissioner are required to accompany the return—

have at the place where under these Regulations the return is to be furnished, been received by an officer authorized by the Commissioner to receive returns.

Persons to take necessary steps for due lodging of return.

25. Whenever a person is required by the Act, the Regulations, or the Commissioner to furnish a return to the Commissioner, it shall be the duty of that person to make the required return and to take all steps necessary to insure that the return is received by the Commissioner at the place where under these Regulations the return is to be furnished.

Address for service.

26. Every person who furnished a return shall in the return give an address in Australia for service.

Notice of change of address.

27. Every person who has given an address for service and who subsequently changes his address shall, within one month after the change, give to the Commissioner at the place where he furnished his return notice in writing of his new address in Australia for service.

Address deemed to be last known place of business or abode.

28. The address for service last given to the Commissioner by any person shall for all purposes under the Act and Regulations be deemed the last known place of business or abode of that person in Australia, but where no address for service has been given to the Commissioner or Deputy Commissioner, the address of the person as described in any record in the custody of the Commissioner or Deputy Commissioner shall be deemed to be the last known place of business or abode of that person in Australia.

Failure to notify change of address.

29. Any person who changes his address and fails to give to the Commissioner notice of his new address in Australia for service shall not be permitted to plead such change of address as a defence in any proceedings (whether civil or criminal) instituted against him under the Act or Regulations.

Annotations on returns.

30.—(1) The Commissioner may cause or permit his officers to make on any return such marks, figures and annotations as the Commissioner thinks fit.

(2) The marks, figures and annotations shall be made in different coloured ink from the ink used in the return and shall be initialed by the officer making them.

Part III.—Payment of Income Tax.

How tax may be paid.

31. A taxpayer may pay income tax in any of the following ways:—

(a) by delivery of cash, bank notes, or cheques at the office of the Commissioner or of any Deputy Commissioner;

(b) by remitting the tax to the Commissioner or any Deputy Commissioner by bank draft, or cheque, or postal money order or postal note payable in the city to which the remittance is sent; or

(c) by depositing the net amount of the tax to the credit of the Commissioner or a Deputy Commissioner at any branch of the Commonwealth Bank of Australia.

Post office to be agent of remitter.

32. When a remittance is posted by a taxpayer addressed to the Commissioner or a Deputy Commissioner the Post Office shall be deemed to be the agent of the remitter and payment shall not be deemed to have been made until the remittance has been received by the addressee.

Payment by cheque.

33. When a cheque has been delivered or remitted to the Commissioner or a Deputy Commissioner in payment of income tax, the tax shall (notwithstanding any receipt given therefor) not be deemed to have been paid until the amount for which the cheque is drawn has been collected.

Receipts to be issued.

34. Receipts for income tax shall be issued by such persons as the Commissioner or a Deputy Commissioner may authorize.

Part payment of tax not to be accepted.

35. Except with the express consent of the Commissioner or a Deputy Commissioner, no money shall be accepted on account or in part payment of income tax.

Postage to be prepaid.

36. The postage on every return, statement, communication, remittance, or other matter sent by post addressed to the Commissioner the Assistant Commissioner or a Deputy Commissioner shall be fully prepaid by the sender.

Deficient postage.

37. When any sum is received as payment of income tax the Commissioner or Deputy Commissioner, as the case may be, shall first deduct therefrom the amount of postage and surcharge (if any) paid upon any unstamped or insufficiently stamped matter received through the post from the taxpayer and shall credit in payment of tax only the net amount then remaining.

Part IV.—Objections.

Form of objection.

38.—(1) An objection under section 50 of the Act to an assessment may be made in the Third Form in the Schedule.

(2) The objection shall be lodged with the Commissioner at the address from which notice of the assessment objected to was issued.

Part V.—Reviews by a Board of Review.

Amount of deposit to accompany request for review.

39. Where, under sub-section (4) of section 50 of the Act, a taxpayer in writing requests the Commissioner to refer a decision to a Board of Review, the taxpayer’s request shall be accompanied by a deposit of 1 per centum of one or more (according to the circumstances of the case) of the following amounts:—

(a) the excess of the amount which, in accordance with the Commissioner’s decision, is the taxable income over the amount which, if the objection were wholly allowed, would be the taxable income;

(b) the excess of the amount by reference to which the rate of tax has been calculated for the purposes of sub-section (2) of section 13 of the Act over the amount by reference to which such rate would be calculated if the taxpayer’s claim were allowed;

(c) the excess of the amount of income upon which the taxpayer claims to be entitled to a rebate of tax (other than a rebate under section 30 of the Act) over the amount of income upon which the rebate has been allowed;

(d) fifteen per centum of the taxable income (where the claim is for a rebate of tax under section 30 of the Act);

(e) the sum or further sum determined by the Commissioner pursuant to sub-section (1) of section 21 of the Act;

(f) the income in question where the question is whether such income is derived from personal exertion or from property:

Provided that the maximum amount of deposit which shall accompany the written request of the taxpayer shall not, in any case, exceed Fifty pounds, and the minimum amount of deposit shall not be less than One pound.

Particulars to be supplied by Commissioner.

40.—(1) The Commissioner in referring a decision to a Board of Review in accordance with sub-section (1) of section 51 of the Act shall furnish the Board with printed or typewritten statements in quadruplicate, containing—

(a) the name and address of the taxpayer;

(b) full details of the taxpayer’s claim as made to the Commissioner; and

(c) the Commissioner’s reasons for disallowing the taxpayer’s claim.

(2) The Commissioner shall at the same time furnish the taxpayer with a copy of the statements referred to in sub-paragraph (b) and (c) of the last preceding sub-regulation.

Notice of review.

41.—(1) The Chairman of a Board shall cause notices to be served upon the Commissioner and the taxpayer of the date on which the review is to take place.

(2) Notice of a review shall be given not less than fourteen days prior to the day on which the review is to take place.

(3) A notice under this Regulation may be served either personally or by post, and if served by post, service shall be effected by properly addressing, prepaying and posting the notice as a letter, and unless the contrary is proved, service shall be deemed to have been effected at the time when the letter would have been delivered in the ordinary course of post.

Order, place, and time of review.

42.—(1) All references for the purpose of review by a Board shall be numbered consecutively and, unless the Chairman of the Board otherwise directs, the reviews shall take place in the order in which the references are received in respect of each State.

(2) The sittings of a Board for the purpose of reviews shall be held in such place or places and at such time or times as are fixed by the Chairman of the Board.

(3) A Board shall not be required to sit on public holidays or during a yearly vacation of three weeks commencing on the 25th day of December.

Conduct of reviews.

43.—(1) Subject to this Part, reviews by a Board shall be conducted as the Chairman from time to time directs.

(2) All reviews shall take place in camera unless the taxpayer otherwise requires.

(3) Where a review takes place in public the decision shall be given at a public meeting of the Board.

(4) Either party to a review may nominate a person to represent him at the review.

(5) The Chairman of a Board may adjourn any review from time to time as he thinks fit.

Evidence.

44.—(1) Subject to the next succeeding sub-regulation, a Board shall take all evidence on oath or affirmation, and for that purpose the Chairman of the Board, or in the absence of the Chairman, the Acting Chairman, shall have power to administer oaths and affirmations.

(2) In the exercise of the powers which, by virtue of sub-section (1) of section 44 of the Act, a Board has under section 97 of the Act, the Chairman of a Board may, by notice in writing, require any person—

(a) to furnish the Board with such information as, in the opinion of the Chairman, is necessary for the purpose of a review by the Board;

(b) to attend and give evidence before the Board, or before any officer authorized by the Chairman of the Board in that behalf, concerning his or any other person’s income or assessment, and may require him to produce all books, documents and other papers whatever in his custody or under his control relating thereto;

and the Chairman of the Board may require the information or evidence to be given on oath and either verbally or in writing and for that purpose the Chairman or the officer authorized by him shall have power to administer oaths.

(3) The expenses to be allowed to any person required to attend and give evidence under the last preceding sub-regulation shall be as prescribed by regulation 52 of these Regulations.

Decisions of Board.

45.—(1) A Board shall give a written decision on each review and shall forward copies of the decision to the Commissioner and to the taxpayer, and the Commissioner shall, unless the decision has been appealed from, give effect to the decision within 30 days after the receipt thereof.

(2) The Board may, from time to time, compile and publish summaries of its decisions.

Attendance of members.

46. Subject to sub-regulation (3) of regulation 38c of these Regulations, the members of a Board shall be in attendance on all week days at such place as is from time to time appointed by the Chairman for the performance of their duties.

Communications to Board.

47. All communications to a Board shall be addressed to the Chairman of the Board in the care of the Deputy Federal Commissioner of Taxation in the State in which the taxpayer resides.

Part V.—Miscellaneous.

Signatures.

48. Any notice to be given by the Commissioner may be given by any officer of the Commissioner duly authorized in that behalf; and any notice purporting to be signed by the authority of the Commissioner shall be as valid and effectual for all purposes as if signed by the Commissioner in person.

Appointment of prescribed delegate.

49. The Commissioner may, by notice published in the Gazette, appoint any person to be a prescribed delegate of the Commissioner for the purpose of these Regulations.

Signature deemed to be duly signed.

50.—(1) Any certificate, notice, or other document bearing the written stamped or printed signature of the Commissioner the Assistant Commissioner a Deputy Commissioner or a prescribed delegate of the Commissioner shall until the contrary is proved be deemed to have been duly signed by the person by whom it purports to have been signed.

(2) Judicial notice shall be taken of every such signature and of the fact that the person whose signature it purports to be holds or has held the office of Commissioner, Assistant Commissioner, Deputy Commissioner or prescribed delegate of the Commissioner, as the case may be.

Appointment public officer.

51. Whenever the position of Public Officer of a company becomes vacant, and it is necessary for a new Public Officer to be appointed, the notice of appointment by the company of a new Public Officer shall be given to the Commissioner at the place where, under these Regulations, the return of the company is to be furnished.

Onus of proof.

52. In any proceedings against a person for failing or neglecting to duly furnish a return, a certificate in writing signed by—

(a) the Commissioner;

(b) the Assistant Commissioner;

(c) the Deputy Commissioner at whose office the return should have been furnished; or

(d) a prescribed delegate of the Commissioner.

certifying that no return has been received from that person by any officer authorized by the Commissioner to receive returns at the place where under the Regulations the return should have been furnished, shall be prima facie evidence that the defendant has failed or neglected to duly furnish a return.

Certificate by Commissioner as to service of notice of assessment, &c.

53. In any action against a person for the recovery of income tax a certificate in writing signed by the Commissioner, the Assistant Commissioner, the Deputy Commissioner or a prescribed delegate of the Commissioner, certifying that—

(a) the person named in the certificate is a taxpayer;

(b) an assessment of income tax was duly made against him in respect of the year mentioned in the certificate;

(c) the particulars of the assessment are as stated in the certificate;

(d) notice of the assessment was duly served upon him by post;

(e) the sum named in the certificate was at the date of the certificate due by him to the King on behalf of the Commonwealth in respect of income tax;

shall be prima facie evidence of the facts stated in the certificate.

54. In any action for the recovery of income tax evidence may be given by affidavit, and the Court may require the deponent to attend for the purpose of being cross-examined.

Officer may appear for Commissioner.

55. Any officer authorized in writing by the Commissioner or a Deputy Commissioner, whether generally or in respect of any special proceeding, may appear on behalf of the Commissioner or a Deputy Commissioner before any County Court, District Court, Local Court or Court of Summary Jurisdiction in any suit instituted in the name of the Commissioner or a Deputy Commissioner for the recovery of any income tax unpaid, including any additional tax, and any officer so appearing shall be deemed to represent the Commissioner or a Deputy Commissioner, as the case may be, and shall be entitled to conduct the proceedings on his behalf and to give evidence.

Copies or extracts certified by Commissioner to be received in evidence.

56. A writing certified by the Commissioner, the Assistant Commissioner, a Deputy Commissioner or a prescribed delegate of the Commissioner to be a true copy of or a true extract from any assessment, return, list, declaration, statement, book, document, or writing of any nature whatsoever in the custody of the Commissioner or of any officer of the Commissioner shall for all purposes be prima facie evidence of the original of which it purports to be a copy or extract and shall be receivable in evidence to the same extent as the original.

Service of notices, &c.

57. Any notice or other communication by or on behalf of the Commissioner may be served upon any person by posting it, by prepaid letter post addressed to the person at his last known place of business or abode in Australia and service thereof shall be deemed to have been effected at the time when it would in the ordinary course of post have arrived at the place to which it was addressed or at the post town or post office nearest to that place whether or not it has in fact been received by the addressee.

Where prosecution may be instituted.

58. A prosecution under section 66 of the Act for any of the following offences, namely:—

(a) failing or neglecting to duly furnish a return; or

(b) making or delivering a return which is false in any particular or making any false answer whether verbally or in writing—

may at the option of the prosecutor be instituted either—

(a) in a Court of Summary Jurisdiction having jurisdiction at the place where under these Regulations the return is to be furnished; or

(b) in a Court of Summary Jurisdiction having jurisdiction at or nearest to the usual or last known place of business or abode of the defendant.

Calculation of sinking fund.

59.—(1) When it is necessary for purposes of an assessment to ascertain the sinking fund required to replace a sum of money at the end of a number of years, Table I. in the Schedule shall be applied.

(2) When it is necessary for purposes of an assessment to ascertain at any given date the value of a sinking fund accumulated at compound interest to replace a sum of money at the end of a number of years, Table II in the Schedule shall be applied.

Live stock.

60.—(1) For the purpose of sub-paragraph (ii) of paragraph (a) of Section 16 of the Act, the limits within which a person may select the cost price in relation to the natural increase of the various species of live stock shall be as set forth in Table III. in the schedule, and the notice of option to be signed and delivered by him at the office of the Commissioner may be in the following form:—

Commonwealth of Australia.

Income Tax Assessment Act 1922-1924.

Notice of Option under Section 16 (a) (ii).

I,    of    in the State of  hereby exercise the option granted by section 16 (a) (ii) of the above Act by requiring that ‘Value’ for the purposes of section 16 (a) shall mean, in the case of live stock owned by me (not being livestock used as beasts of burden or as working beasts)

*cost

*market selling price

Dated this day of 192 .

Signature.

*Strike out whichever is not wanted;

(2) For the purpose of paragraph (aa) of Section 16 of the Act, the notice of election shall be in the following form:—

Commonwealth of Australia.

Income Tax Assessment Act 1922-1924.

NOTICE OF ELECTION UNDER SECTION 16 (aa).

I,      of     in the State of                                                                                    hereby elect to omit from the account required by paragraph (a) of Section 16 of the above Act, the value of all natural increase of the live stock owned by me and borne during the year to which the account relates.

Dated this day of 19

Signature.

(3) Any person to whom paragraph (aa) of section 16 of the Act applies, who does not, within the time prescribed by sub-regulation (3) of this regulation give notice of election as provided in paragraph (aa) of section 16 of the Act, and who selects cost price in pursuance of the option given by sub-paragraph (ii) of paragraph (a) of section 16 of the Act, shall give notice in writing of the value per head selected by him as the cost price in relation to natural increase of live stock owned by him.

(4) The notice of option and the notice of election and the notice to be given under sub-regulation (2) (a) of these regulation shall be delivered at the office of the Commissioner:—

(a) in the case of persons lodging returns during the year 1924, on or before the thirty-first day of December, 1924;

(b) in the case of persons who have not lodged returns during the year 1924—

within three months of the date of the first lodging of a return after the thirty-first day of December, 1924.”

Declaration by officers.

61 The Declaration to be made by officers pursuant to section 12 of the Act shall be in the following form:—

COMMONWEALTH OF AUSTRALIA.

Income Tax Assessment Act 1922.

Officer’s Declaration of Secrecy.

I…………………………………....................of…………………………………….., in the State of………………………………........., in the Commonwealth of Australia do solemnly and sincerely declare that except in the performance of any duty under the Income Tax Assessment Act 1922 or any amendment thereof or any Act substituted therefor I will not directly or indirectly divulge or communicate to any person any information relating to the affairs of any person.

Declared before me at……………………………………............in the State of……………….. this……………………….day of……………………………………19

……………..

Justice of the Peace for the State of……………………………...................

Commissioner for taking affidavits.

Commissioner for Declarations.

Expenses of persons required to attend and give evidence.

62. Where a person, (other than the taxpayer or a representative of the taxpayer concerning whom the evidence is required) is required under section 97 of the Act to attend and give evidence before the Commissioner or an officer authorized by him, there may be allowed to that person the sum (not exceeding in any case One pound per diem) actually and necessarily lost by him by reason of his attendance, and in addition (if he resides more than four miles from the place at which he is required to attend) such sum for travelling expenses (not exceeding the sum actually paid) as the person conducting the inquiry thinks reasonable.

Penalties.

63. Any contravention of these Regulations for which no other penalty is provided shall be punishable on conviction by a fine not exceeding Twenty pounds.

Amount of penalty.

64. The penalty set out at the foot of any regulation or sub-regulation indicates that any person who commits—

(a) the offence created by that regulation or sub-regulation; or

(b) a breach of that regulation or sub-regulation whether by act or omission—

shall be punishable upon conviction by a penalty not exceeding the penalty set out and not being less in any case than one-tenth of the penalty set out.

THE SCHEDULE.

——

First Form.

Taxation Office Stamp only.

Affix full postage and send this Return to the Deputy Federal Commissioner of Taxation, Box 769, G.P.O., Melbourne.

[Write Plainly.]

FEDERAL INCOME TAX. File No.........

RETURN OF INCOME derived from all Sources in Australia and Papua during the twelve months from 1st July to 30th June.

(Write plainly, and write name in block type—example: JONES, JOHN.)

Occupation...................................................................................................................Residing at.....................................................................................................

(State actual nature of business—Merchant, Manufacturer, &c., is not sufficient)   (Full residential address.)

Postal Address for service of Notices.................................................................................................................................................................................................

(You are required to notify to the Deputy Commissioner any change of address for service of notices, &c.)

If Return is made by an Agent for a Principal or a Trustee for a Trust Estate state full name and address of Agent or Trustee—

……………………………………………………………….

………………………………………………..

Last Return Lodged at Federal Taxation Office at*................................................

(Here state Capital City.)

Last Reference No....................................................................... my postal address on that date being ............................................................................................

(Here quote File No. on last Assessment Notice.) * If lodged in Melbourne, state whether furnished to P.O., Buildings, or Elizabeth House.

This return should be lodged before 31st August.—Please read these instructions.

Part B.—Income from Property.

If no previous Returns have been lodged, please give reasons.

Declaration.

I, the person making this Return, declare that the particulars shown therein, both in this and the succeeding pages, and also those stated in the Forms, Balance-sheets, Documents, and Lists herewith, are true and correct in every particular, and disclose without reservation or exception a true and complete statement of all Income liable to taxation derived from all sources in Australia and Papua by.................................during the year 1st July to 30th June.*

* if the accounts of the business have been made up for any other period, alter this declaration accordingly. Initial the alteration.

Dated this..............................day of (Sign here.)

....................................19 Usual Signature...............................................

This Declaration should, if possible, be signed by all individual taxpayers personally.

.

Part C.—Income from a Trade, Business, Manufacture, or concern not shown in Parts A or B.

(Attach Balance-sheet and Trading and Profit and Loss Account.)

Part D.—Income of Farmer, Pastoralist. or Horticulturist not shows in Parts A. or B.

Statement No. 1. Column A. Live Stock Schedule. Column B. (See explanation on separate sheet.)

Statement No. 2.—Wheat.

Number of Bushels placed in the............... “Pool.” ..........................Bushels.

Statement No. 3.—Share Farming.

(To be furnished by the person responsible for the distribution.)

Net Profit (as per details attached) .. £..............................

Distribution.

Statement No. 4.—Statement of Salaries and Wages Paid and Allowances to Employees.

This statement should show the actual amount paid during the period 1/7/...... to 30/6/......, even though the return is made up to a different period.

If the space is not sufficient to contain all the names, special sheets may be obtained from the Department of Taxation.

Payments to any one person at a rate less than £200 per annum need not be shown.

See Special Instruction Sheet re payments from husband to wife and wife to husband, and wages not actually paid.

Statement No. 5.—Statement by Trustee or Partnership.

This portion of the return is for the information of the Taxation Department only. Trustees are not taxable except on income to which no one is presently entitled, or on income held on account of a person who is under a legal disability. A partnership (other than a husband and wife partnership in the circumstances prescribed by section 29 (2) of the Act) is not taxable, partners being taxable on their full share of the profits including any disallowance or additions made by the Department.

Statement No. 6.—Deductions Claimed in Respect of Children under 16 Years of Age at 1st July, ......(or Born Since that Date), Wholly Maintained by Taxpayer.

No deduction is allowable in respect of any child who earned income during the year. Where a child under 16 is maintained for part of the year only a proportionate deduction is allowable.

Statement No. 7.—Dividends from Companies in All States, including Shares Distributed as Bonus Shares out of Current Profits.

* The gross amount of dividends must be shown. Any rebates allowable on account of income having been earned by the Company outside Australia will be calculated and deducted by the Department. Carry total amount from this Statement to Item 20.

Statement No. 8.—Particulars of Taxable Interest Received.

Carry total amount of taxable interest shown above to Item 20.

Federal Income Tax.

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INSTRUCTIONS TO PERSONS MAKING RETURNS.

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Omission of any Income from a Return or Claims for Deductions in excess of amounts expended will render the Taxpayer liable to a penalty of £1 or Double the Tax Evaded by the Omission or Excessive Deduction.

[If this is your first Return, send accompanying letter explaining why returns have not been furnished previously.]

Returns.

(i) The following persons are liable to render an Income Tax Return for the 12 months ended 30th June.:—

(a) All Persons, resident in Australia, in receipt of a gross income exceeding £300.

(b) Companies and Absentees having an income of £1 or upwards.

(ii) It is necessary to complete the Return, sign the declaration, and deliver or forward the Return to the Commissioner at the office prescribed by regulation 19. (There is a special Form of Return for Companies.)

(iii) Full postage must be prepaid on all returns, &c., posted by taxpayers.

(iv) Partners’ Returns.—The senior resident partner should make a return for the partnership. Each partner must also make a separate return of his income from all sources, including his interest in the partnership profits. Tributors, woodcutting and mining parties are treated as partnerships.

(v) Returned Soldiers are not liable to taxation in respect of war pensions and gratuity bonds.

You are required to notify to the Deputy Commissioner any change of address for service of Notices, &c.

The amount of salary or wages received should be ascertained from the employer (s) and in all cases the name of the employer (s) must be stated in the Form of Return.

Trustees and Beneficiaries in Trust Estates.

(vi) The senior or active trustee should make the Return and Statement. Each beneficiary must also make a separate individual Return which if he has no other source of income should be attached to, and lodged with, the trustee’s return wherever possible.

Income.

(vii) Any benefits in addition to or as part of salary, wages, &c., such as board or board and lodging, or any bonus or commission, are income, and their value must be stated.

(viii) Value of Portion of Trade Premises used for Domestic Purposes.— Where rent is paid, generally, the proportion of the rent paid which is attributable to domestic purposes cannot be deducted. The proportions attributable to domestic purposes are usually— (a) for storekeepers, grocers, and other similar trades, one-half; (b) hotelkeepers and lodginghouse-keepers, one fourth; and (c) doctors, chemists, &c., two-thirds. Where these proportions seem to the taxpayer too high, state what amount you consider a fair proportion, and the grounds upon which you arrive at such amount.

(ix) Dividends, Interest, and Bonuses.—These must be included in the Return of the person receiving them (Item 20).

(x) War Loans.—Interest received from all War Loans paying more than 4½ per cent. interest must be included in the Return of the person receiving it (Statement 8).

Farmers and Graziers.

(xi) Income earned in Pastoral and Agricultural Industries, such as farming, grazing, dairying, vine-growing, fruit growing, or market gardening, should be returned in Part D of the Form of Return.

Bawra Shares and Certificates were treated as income at date of receipt of their then market value. There is thus no occasion for original holders to show any thing in the Return form in respect of moneys received in retirement of Certificates and Shares. Persons dealing in Shares or Certificates must show the transactions fully.

Land Transactions (Item 9).

(xii) Under decisions of the Courts, a partnership, syndicate, company, or individual that purchases land for resale is deemed to carry on a business in the purchase and sale of land, and must include as income profit made on such transactions—which is taxable at personal exertion rates. Conversely, if a loss is made, the amount thereof is allowable as a deduction.

Live Stock on Hand at Beginning and End of Year.

Values to be included in Return.

(a) As at 1st July,

The values for live stock on hand at 1st July, , should be the values shown in the Income Tax Assessment for last year as the values of the stock on hand at 30th June,

(b) Stock on hand at 30th June.

Taxpayers have two choices, and must in all future years adhere to the choice they elect to make: —

1. They may omit, until sold or otherwise disposed of, all the natural increase of their stock which was born between 1st July,              , and 30th June,                            , or during a business trading year which the taxpayer may have arranged with the Department in lieu of the year ending 30th June,

The remainder of the live stock on hand at the end of the year must be shown:—

(a) for stock purchased during the year—at cost price or market value, whichever the taxpayer prefers.

(b) for stock carried forward in the accounts from the previous year— average price per head at which they were so carried forward, or the market selling price, whichever the taxpayer prefers.

2. Where the natural increase is included each year.

The stock should be dealt with as in 1 (a) and (b) above in regard to the old stock and stock purchased during the year. The natural increase should be brought to account at cost or market value, whichever is the lesser.

“Cost” for natural increase is the price selected by the owner within the prescribed limits stated below. It should not be less than the minimum or more than the maximum price shown.

When the cost is once selected it must be adhered to for all future years. Compare the selected cost with the market selling value, and use whichever value is preferred as the value of the natural increase on hand at the end of the year.

Prescribed Limits for Cost Price: —

3. “Killed for Rations.”

If the live-stock owner has elected to exclude his natural increase until it is sold, he must include in the value of stock killed for rations, any natural increase so killed and used.

The value at which stock killed and used for rations should be returned is the value at which the particular stock was included in either the stock on hand at 1st July,              , or if purchased after that date, the purchase price of the particular stock in question.

Where natural increase of the year has been killed and used for rations, the value to be returned for it is the cost price or market value, whichever the taxpayer prefers.

“Cost price” is as stated above under the heading “Prescribed limits for Cost Price.”

4. The Taxpayer must indicate on the detachable portion of this form of “ Instructions ” the method he wishes to adopt in regard to the taxation of natural increase, and the cost price he selects if he desires to include the natural increase as stock on hand.

The detachable portion of the form should be filled in, detached, and forwarded with the Return form to the Commissioner of Taxation.

Northern Territory.

Income derived from primary production in the Territory by persons resident there is exempt from taxation until 1932.

“Primary production” in this regard means production arising directly from cultivation, maintenance of animals or poultry, mining, or fisheries, and

“Income derived from primary production” means income which is directly derived in the first place from primary production.

Values of Other Trading Stock.

(xiii) The value of all trading stock not disposed of at the beginning and end of the period covered by the return must be included. Section 16 (a) (ii) provides that the assessable income of any person shall include profits derived from any trade or business and converted into stock in trade, or added to the capital of, or in any way invested in, the trade or business:

Provided that, for the purpose of computing such profits, the value of trading stock (not being live stock) not disposed of at the beginning and end of the period in which the income was derived shall be taken into account.

Value for this purpose means, in the case of trading stock (not being live stock) the actual cost price or market selling value of each article of trading stock, or the price at which each article of trading stock can be replaced at the option of the taxpayer in respect of each article.

General.

(xiv) Professional Income.—This should be stated in Part C, and may also be shown in detail by a separate statement. Doctors, barristers, solicitors, &c., may show the actual receipts and allowable disbursements in the year ended 30/6/ . The details of disbursements must be supplied.

Relief from Tax.

(xv) Section 95 of the Income Tax Assessment Act 1922-1923 reads:—

1. “In any case where it is shown to the satisfaction of a Board consisting of the Commissioner, the Secretary to the Treasury, and the Comptroller-General of Customs—

(a) that a taxpayer liable to pay income tax has become bankrupt or insolvent; or

(b) that a taxpayer has suffered such a loss, or is in such circumstances or owing to the death of a person who, if he had lived, would have paid tax, the dependants of that person are in such circumstances that the exaction of the full amount of tax will entail serious hardship,

the Board may release the taxpayer or the executor or administrator of the deceased person (as the case may be) wholly or in part from his liability, and the Commissioner may make such entries and alterations in the assessment as are necessary for that purpose.

2. The Commissioner shall be Chairman of the Board, and the decision of the majority shall prevail.

All applications for relief from tax under this section should be submitted to the office from which the Notice of Assessment issued.

(xvi) Officers of the Department will not be permitted to fill up Returns. This responsibility rests entirely upon taxpayers. All necessary information will be given on application at the office of the Commissioner or Deputy Commissioner.

(xvii) Income earned in a Trade or Business.—Trade income should be returned for the year ended 30th June,              Where permission has been obtained to lodge a Return covering a period not ending on 30th June, the necessary alterations should be made in the Form of Return to indicate clearly the period for which the return is made.

(xviii) Benefits or Advantages.—Hotelkeepers, lodginghouse-keepers, boarding school proprietors, storekeepers, tradesmen, and others whose household expenses (including board of themselves and families and the maintenance of their domestic establishments) are not kept distinct from their trade or business expenditure should insert as income an amount equal to the cost of the goods taken from stock for private use.

(xix) The taxpayer must include his income from all sources in one Return.

(xx) The particulars of income should be fully stated. If there is not sufficient room in the Form of Return, a list or statement should be attached.

Allowable Deductions.

(xxi) The allowable deductions are shown in the Return in Parts A, B. C, and D.

(xxii) A deduction allowable of a sinking fund to recoup a line, premium, or foregift, or a consideration in the nature of a fine, premium, or foregift paid in connexion with a lease or the transfer of a lease is calculated by dividing the amount paid by the number of years of the unexpired period of the lease at the date when the payment was made.

(xxiii) In case of any doubt the facts should be laid before the Commissioner or Deputy Commissioner, and a decision as to the allowance of the items should be asked for.

(xxiv) Section 23 (2) provides that any deduction allowed under the Act shall be deducted from the class of income to which it relates. The following are exceptions to this rule, and are deductible from personal exertion or property income, whichever is the greater, viz.:—

(1) Premiums for life insurance, deferred annuity, fidelity guarantee, or bond.

(2) Payments to superannuation, sustentation. widows’ or orphans’ fund, or any friendly society in the Commonwealth.

(3) Gifts to charitable institutions.

(4) Deductions on account of children.

(xxv) Deduction of unrecouped losses.—Taxpayers are entitled to a deduction of so much of any business loss incurred in the four years preceding the year of income (for which the return is being lodged) as has not been recouped by income derived in the year of loss or in any one or more of the three years subsequent to the year of loss. Taxpayers claiming this deduction should submit returns for any of the four preceding years for which returns have not already been furnished, and the return form in use for the particular year in which the claim is being made should be adapted for that purpose.

Expenses Not Allowed as Deductions.

(xxvi)

(a) Additions or alterations to trade or other income-earning premises.

(b) Additions to plant and machinery (except in mining businesses under certain conditions).

(c) Any domestic expenditure, or the cost of living of members of taxpayer’s family not exclusively engaged in the business or who are engaged in domestic duties.

(d) Cost of sewerage connexions.

(e) Cost of travelling between the taxpayer’s private residence and place of business.

(f) Depreciation of buildings, leaseholds, or land and improvements (except of covenanted improvements on leasehold land in which improvements the lessee has no tenant rights) or any depreciation of a kind that may be made good by repairs.

(g) Depreciation of goodwill.

(h) Doubtful debts.

(i) Expenditure incurred to protect income.

(j) Federal Income Tax.

(k) Insurance (fire or burglary) on household furniture or personal effects.

(l) Interest not actually paid in year ended 30/6/

(m) Interest paid on money which is not used to produce income.

(n) Losses by fire, accident, robbery, or embezzlement.

(o) Losses not connected with or arising out of the taxpayer’s trade or business.

(p) Purchase Money paid except for trading stock.

(q) Payments from husband to wife or from wife to husband, unless the Commissioner is satisfied that the payments have been made bonâ fide in the course of business and for services rendered.

(r) Premiums on insurances effected outside Australia.

(s) Rent of private residence.

(t) Rent on trade premises not actually paid in year ended 30/6/

(u) Repayment of moneys borrowed, including amounts of principal included in annual payments on loans.

(v) Wastes not actually paid.

(w) Wages to persons not employed in the trade or business.

Options Allowed to Taxpayers.

(xxvii) Depreciation.—Taxpayers will be allowed the annual depreciation of plant and machinery, &c., based on wear and tear only, or, at their option, the sum obtained by dividing the cost of the plant, machinery, &c, by the number of years of its reasonably effective life as estimated by the Commissioner. The allowance will be based on wear and tear (in accordance with Income Tax Order 1,124 so far as applicable) unless or until the taxpayer exercises his option to have it based on cost. Once a taxpayer exercises that option the cost basis will be adhered to unless, for special reasons, the Commissioner consents to allow the taxpayer to revert to the basis of wear and tear. Taxpayers should note that the law now permits of an allowance for obsolescence even if the basis of wear and tear is adhered to, the allowance being made (when the plant, machinery, &c., is sold or scrapped) by way of deduction of the amount by which the sale or scrap value is less than that part of the cost which has not been written off in previous assessments. Taxpayers should also note that the Commissioner’s estimate of the reasonably effective life of the various classes of plant, machinery. &c., may, in general, be ascertained by reference to the percentages set out in Income Tax Order 1,124. e.g.. “Actors’ accessories”;

percentage allowed =20; reasonably effective life 100/20= 5 years.

(xxviii) Live stock.—See these instructions under the heading “Live stock on hand at beginning and end of year.”

(xxix) Other trading stock.—See these instructions under the heading “Values of other trading stock.”

(xxx) Purchasers of sheep in the wool.—A taxpayer who purchases or otherwise acquires sheep in the wool has the option of having the transaction or acquisition treated as a purchase of wool and sheep as distinct from each other. The taxpayer must declare his option when furnishing the return of his income for the year in which the sheep were acquired. The purchase price of the sheep (if not specified in the contract of sale) will be deemed to be the market value of similar sheep off shears on the day of sale, or, if there is no evidence of market value, the amount determined by the Commissioner as fairly representing that value. The difference between that price and the total price or (as the case may be) market value of the sheep in the wool will be deemed to be the purchase price of the wool. Taxpayers declaring the option should furnish particulars of contract of sale (if any), and (where sale price not allocated to sheep and wool or where no sale) evidence of market value, e.g., market quotations (nearest in point of time and locality), evidence of similarity between sheep in question and sheep quoted on the market, &c.

GENERAL DIRECTIONS.

(xxxi) A copy of the Return, as well as all books, accounts, memoranda, and all data from which the Return is made up, should be preserved for future reference in the event of further information being required by the Commissioner or the Deputy Commissioner. The Department will not supply taxpayers with a copy of their Returns except in special circumstances.

Special Instructions.

(xxxii) Wherever deductions are claimed on account of any item in respect of which the form calls for a detailed list, such list must be attached to the Return. Compliance with this direction will save the taxpayer much correspondence and irritation.

Separate lists are required of—

Returns must be lodged on or before—

Commissioner of Taxation.

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[Detachable Portion.] No.

Federal Income Tax.

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METHOD OF VALUING NATURAL INCREASE, LIVE STOCK.

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This sportion of the form must be filled in by all owners of live stock who desire to omit from their Returns all natural increase until it has been sold or otherwise disposed of.

Income Tax Assessment Act 1922-1925.

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NOTICE OF ELECTION UNDER SECTION 16 (aa).

I,......................................................................... of................................ in the State of...............................hereby elect to omit from the account required by paragraph (a) of Section 16 of the above Act the value of all natural increase of the live stock owned by me and born during the year to which the account relates.

Dated this..................day of..............192 ………

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Signature.

“(a) The notice of election shall be delivered at the office of the Commissioner—

(a) in the case of persons lodging Returns during the year 1924, on or before the thirty-first day of December, 1924;

(b) in the case of persons who have not lodged Returns during the year 1924—

within three months of the date of the first lodging of a Return after the thirty-first day of December, 1924.

Live stock owners who do not wish to omit the natural increase need not use the upper part of this form, but should state below the cost price selected by them for the natural increase of each species of live stock (for example, lambs, calves, &c.), owned by them:—

Second Form.

COMPANIES DERIVING INCOME IN AUSTRALIA AND PAPUA.

Return of Income derived from all sources in Australia and Papua during the period 1st July, ......, to 30th June, ...........* or..........................to..............................

*If approval has been obtained to submit return for any other period, specify the period.

Name of Company ..................................................................................................................................

Name in full of Public Officer ................................................................................................................

Every Company must appoint a Public Officer, and notify the Deputy Commissioner accordingly, specifying the name of the Officer and address for service. Penalty, £50 for every day during which failure or neglect continues (vide Sec. 88).

Nature of Business .....................................................................................................................................

Postal Address for service of Notices ........................................................................................................

Return must be accompanied by audited Trading Account, Profit and Loss Account, Appropriation Account, Balance-sheet, and Lists in support of the following deductions:—

Subscriptions, donations, bad debts (showing names of debtors, dates incurred, nature of debts, amounts and dates written off, and reason for writing off), depreciation (giving basis on which depreciation is

claimed), and any deductions covered by general headings (unless lists are attached in support of claims for deductions, such deductions will be disallowed); also—

(a) a list of resident shareholders, showing names and addresses and amounts paid to each during twelve months ended 30th June, ......;

(b) the total dividends paid or credited to absentee members, shareholders, or stockholders out of the profits of the period covered by this Return;

(c) a list of names and addresses of any individual absentees who received or were credited with dividends and interest exceeding a total of £722 during twelve months ended 30/6/......;

(d) the total interest paid or credited to absentee depositors and debenture holders during the period covered by this Return;

(e) the total interest paid or credited to residents of Australia in respect of bearer debentures or share stock payable to bearer out of the profits covered by this Return;

(f) list of names and addresses of persons to whom interest in excess of £50 has been paid or credited during twelve months ended 30/6/......;

(g) a list of salaries and wages and allowances (inclusive of value of quarters and board supplied) paid to employees whose total remuneration as stated amounted to £200 or over for the twelve months ended 30th June, ......

Declaration.

I, being the duly appointed Officer of the above Company, declare that the particulars shown therein, and also those stated in the Forms, Balance-sheets, Documents, and Lists herewith, are true in every particular, and disclose without reservation or exception a true statement of all Income liable to taxation derived from all sources in Australia and Papua by....................during the year ended....................

Dated this..............day of...................., 19 ......

Usual Signature of Public Officer....................

Third Form.

Commonwealth of Australia.

File No.

Income Tax Assessment Act 1922-1927.

Assessment No.

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NOTICE OF OBJECTION TO ASSESSMENT.

I hereby object to the assessment in respect of Income Tax for the financial year  made by the Commissioner or Deputy Commissioner of Taxation, and issued to me by notice of assessment dated                            , and claim that the assessment of my taxable income should be based on the following amounts:—

My reasons for claiming that the assessment should be on the figures stated above are—

(Signature)—

(Address)—

(Date)—

TABLE I.

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ANNUAL SUM WHICH ACCUMULATED AT COMPOUND INTEREST WILL AMOUNT TO £1 AT THE END OF ANY NUMBER OF YEARS FROM 1 TO 100.

(Annual Investment Aussmed to be Spread Uniformly over Year.)

TABLE II.

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AMOUNT OF £1 PER ANNUM.

(i.e., the sum to which an annual payment of £1 accumulated at compound interest will amount at the end of any number of years from 1 to 50.)

TABLE III.

THE LIMITS WITHIN WHICH A TAXPAYER MAY SELECT THE COST PRICE IN RELATION TO NATURAL INCREASE OF LIVE STOCK.

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By Authority: H. J. Green, Government Printer, Canberra.