STATUTORY RULES.

1939. No. 6.

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REGULATION UNDER THE INCOME TAX ASSESSMENT ACT 1936-1938.*

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 1936-1938.

Dated this first day of February, 1939.

GOWRIE

Governor-General.

By His Excellency’s Command,

R. G. CASEY

Treasurer.

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Amendment of Income Tax Regulations. †

1. After regulation 6 of the Income Tax Regulations the following regulation is inserted:—

Ex-Australian profits.

“6a.—(1.) Where income is derived from the manufacture, processing or purchase of goods in Australia and the sale of those goods out of Australia and a question arises whether the whole or any part (and, if a part, what part) of any profit is derived by a person from sources in Australia, the profit deemed to be derived in Australia shall be—

(a) in the case of goods manufactured or processed in Australia and sold out of Australia by the person by whom or on whose behalf the goods were manufactured or processed —two-thirds of the total profit; and

(b) in the case of goods purchased in Australia and sold out of Australia by a person other than the person by whom or on whose behalf the goods were manufactured, processed or produced—one half of the total profit.

(2.) Notwithstanding anything contained in the last preceding sub-regulation where any such question arises in the case of—

(a) goods produced directly from the cultivation of land or the maintenance of animals or poultry for the purpose of selling them or their bodily produce (including natural increase) sold out of Australia by the person who produced those goods;

(b) dairy produce, wine and dried fruits sold out of Australia by the manufacturer; and

(c) metalliferous ores and minerals extracted or gathered from the earth and sold out of Australia—

(i) if unprocessed—by the person who so extracted or gathered the ore or minerals; or

(ii) if processed —by the person who processed the ore or minerals,

the whole of the profit shall be deemed to be derived in Australia.”.

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By Authority: L. F. Johnston. Commonwealth Government Printer, Canberra.

7091.—Price 3d.