STATUTORY RULES.

1944. No. 90.

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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 third day of June, 1944.

(SGD.) GOWRIE

Governor-General.

By His Excellency’s Command,

__________

Amendments of the Income Tax Regulations.†

Commencement.

1.—(1.) Subject to this regulation, these Regulations shall come into operation on the first day of July, 1944.

(2.) Regulation 16 of these Regulations (in so far as it inserts regulations 54e, 54f and 54n in the Income Tax Regulations) shall come into operation on the date on which these Regulations are notified in the Gazette.

Parts.

2. Regulation 2 of the Income Tax Regulations is amended by omitting the following words:—

“Part VI.—Collection and Recovery of Tax.

Part VIa.—Deductions from Salaries or Wages of Employees.”

and inserting in their stead the following words:—

“Part VI.—Collection and Recovery of Tax.

Division 1.—General.

Division 2.—Rates of Deductions from Salaries or Wages of Employees.

Division 3.—Group Employers.

Division 4.—Tax Stamps.”.

* 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; and 1943, Nos. 80, 127 and 151.

3480.—Price 8d. 4/1.6.1944.

Returns.

3. Regulation 9 of the Income Tax Regulations is amended—

(a) by omitting the word “this” and inserting in its stead the word “the”; and

(b) by adding at the end thereof the following sub-regulation:—

“(2.) In the case of a non-resident, the declaration set forth in the form of return may be altered so as to exclude any reference to income derived from sources out of Australia.”.

4. After regulation 11 of the Income Tax Regulations the following regulation is inserted:—

Simplified return forms.

“11a. Notwithstanding anything contained in regulations 10 and 11, the Commissioner may provide forms of returns which omit any of the items, parts, particulars or statements specified in these regulations.”.

Evidence.

5. Regulation 39 of the Income Tax Regulations is amended—

(a) by omitting from sub-regulation (2.) all the words before paragraph (a) and inserting in their stead the following words:—

“(2.) The Chairman of a Board may, by notice in writing, require any person—”;

(b) by inserting after sub-regulation (2.) the following sub-regulation:—

“(2a.) A person shall not, without just cause or excuse shown by him, refuse or neglect to comply with a requirement made on him under this regulation, or to answer fully and truly any questions put to him by the Chairman of a Board in connexion with a review.”; and

(c) by omitting from sub-regulation (3.) the words “the last preceding sub-regulations” and inserting in their stead the words “this regulation”.

Heading.

6. The Income Tax Regulations are amended, by inserting, after the heading “Part VI.—Collection and Recovery of Tax.”, the sub-heading “Division 1.—General.”.

Post office to be agent of remitter.

7. Regulation 45 of the Income Tax Regulations is amended by omitting the words “a taxpayer” and inserting in their stead the words “any person”.

Payment by cheque.

8. Regulation 46 of the Income Tax Regulations is amended by omitting the words “income tax, the tax” and inserting in their stead the words “any amount payable to the Commissioner, that amount”.

Receipts.

9. Regulation 47 of the Income Tax Regulations is amended by omitting the words “income tax” and inserting in their stead the words “amounts paid to the Commissioner”.

Part payment.

10. Regulation 48 of the Income Tax Regulations is amended by omitting the words “income tax” and inserting in their stead the words “any amount payable to the Commissioner”.

Evidence by affidavit.

11. Regulation 54 of the Income Tax Regulations is amended by omitting the words “income tax” and inserting in their stead the words “any amount payable to the Commissioner”.

Heading.

12. The Income Tax Regulations are amended by omitting the heading “Part VIa.—Deductions from Salaries or Wages of Employees” and inserting in its stead the sub-heading “Division 2.— Rates of Deductions from Salaries or Wages of Employees.”.

Rates of deductions where employee has dependants.

13.—(1.) Regulation 54b of the Income Tax Regulations is amended—

(a) by omitting from sub-regulation (1.) all the words before paragraph (a) and inserting in their stead the following words:—

“(1.) Notwithstanding anything contained in the last preceding regulation, but subject to sub-regulation (2.) of this regulation, where an employee has furnished to his employer a declaration in accordance with the next succeeding regulation, the amount of the deduction for the purposes of section 221c of the Act at any time up to the close of the first pay period which ends after—

(a) the thirtieth day of June next following the date on which the declaration is furnished; or

(b) the time at which a further declaration is furnished to him by the employee,

whichever is the earlier, shall be—” ; and

(b) by omitting sub-regulations (2.) and (3.) and inserting in their stead the following sub-regulation:—

“(2.) The employer shall not be required to give effect to any declaration furnished in accordance with the next succeeding regulation in making deductions from salary or wages paid before the close of the first pay period which commences after the furnishing of the declaration.”.

(2.) Where a declaration as prescribed has, before the commencement of this regulation, been furnished to an employer under regulation 54b of the Income Tax Regulations in respect of dependants of that employee at the first day of April, 1944, that employer shall treat that declaration as if it had been furnished on the first day of July, 1944, in respect of the dependants of the employee at that last-mentioned date.

(3.) Where a person specified in a declaration referred to in sub-regulation (2.) of this regulation ceases or has ceased to be a dependant of the employee, the employee shall, within fourteen days after the commencement of this regulation, or after the date on which that person so ceased, whichever is the later, furnish to his employer a further declaration in accordance with regulation 54c of the Income Tax Regulations.

14. Regulations 54c and 54d of the Income Tax Regulations are repealed and the following regulations inserted in their stead:—

Form of declaration as to dependants.

“54c.—(1.) A declaration for the purposes of the last preceding regulation shall be in a form provided by the Commissioner or a Deputy Commissioner, shall be signed by the employee and shall set out particulars of each dependant of the employee at the time of making the declaration.

“(2.) Where the Commissioner is satisfied that, by reason of circumstances connected with the employment of an employee, it is or will be impracticable for the employee to furnish to his employer a declaration for the purposes of the last preceding regulation, the

employee may furnish that declaration to the Commissioner, and the Commissioner may issue to the employee a certificate specifying the dependants of that employee.

“(3.) After the issue of such a certificate and until the date specified in the certificate as the date on which it expires, the rates at which an employer, who employs that employee for not less than four days in any week and to whom the certificate is exhibited in that week, shall make deductions, from the salary or wages of that employee in respect of that week, shall, notwithstanding the provisions of sub-regulation (2.) of the last preceding regulation, be the same as if the dependants referred to in the certificate were dependants specified in a declaration duly furnished to the employer at the time the certificate is exhibited.

“(4.) Where, after an employee has furnished to his employer or to the Commissioner a declaration in accordance with this regulation, any person described in that declaration ceases to be a dependant of the employee, the employee shall, within fourteen days after the date upon which that person so ceases, furnish a further declaration, to his employer or to the Commissioner, as the case may be, and, where the further declaration is furnished to the Commissioner, return to the Commissioner the certificate issued by him.

“(5.) For the purposes of this regulation, a person shall be deemed to be a dependant of an employee at any time when the facts and circumstances which exist are such that, if they existed unchanged during the whole of a year of income of the employee, the employee would be entitled, in his assessment in respect of the income of that year of income, to a rebate in respect of that person by reference to paragraph. (a), (aa), (ab), (b), (ba) or (c) of sub-section (2.) of section 160 of the Act, and not otherwise:

Provided that a person shall not be deemed to be a dependant of an employee by reference to paragraph (a) or (aa) of that sub-section at any date if, since the thirtieth day of June last preceding that date, that person has derived a net income exceeding Fifty pounds:

Provided further that where the rebate would be allowable by reference to paragraph (b) of that sub-section, the person shall not be deemed to be a dependant at any time when that person is not wholly maintained by that employee.

Employer to forward declarations to Deputy Commissioner.

“54d. Within fourteen days after the thirtieth day of June next following the day on which the declaration is furnished to an employer, he shall countersign the declaration in the place provided on the form and shall forward, the declaration to the Deputy Commissioner for the State or Territory in which the declaration is furnished.”.

Repeal of regulation 54e.

15. Regulation 54e of the Income Tax Regulations is repealed.

16. The Income Tax Regulations are amended by adding at the end of Part VI. the following Divisions:—

“Division 3.—Group Employers.

Application for registration as a group employer.

“54e. An application for registration as a group employer shall be signed by the applicant and shall be made—

(a) in the case of an applicant who carries on business in Australia—at the office of the Deputy Commissioner for each State or Territory in which the applicant has an established place of business at or from which salaries or wages are paid;

(b) in the case of an applicant who is a resident and who does not carry on business in Australia—at the office of the Deputy Commissioner for the State or Territory in which he has his principal place of residence;

(c) in the case of an applicant who is not a resident and who does not carry on business in Australia—at the office of the Deputy Commissioner for the State or Territory in which the salaries or wages are paid or, if the salaries or wages are paid in more than one State or Territory, at the office or offices of such Deputy Commissioner or Deputy Commissioners as the Commissioner directs; and

(d) in any other case—at the office or offices of such Deputy Commissioner or Deputy Commissioners as the Commissioner directs.

Groups.

“54f.—(1.) The Commissioner may register all employees or any class of employees of a group employer as a group for the purposes of these Regulations, and allot a registration number in respect of the group, and shall notify the group employer accordingly, indicating the State or Territory in which the group is registered.

“(2.) The Commissioner may, at any time, by notice in writing to the employer concerned, cancel the registration of any group, and the class of employees included, in that group shall thereupon cease to be a group for the purposes of these Regulations.

How amounts may be paid to Commissioner.

“54g. A group employer required to pay any amount to the Commissioner may pay that amount—

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

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

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

Remittance certificate.

“54h. A group employer shall, at the time of paying to the Commissioner any amount deducted from the salaries or wages of employees included in any group, furnish to the Deputy Commissioner for the State or Territory in which the group is registered a certificate in a form authorized by the Commissioner, and signed by the employer, that the amount so paid is the total amount so deducted during the period specified in the certificate.

Annual statement of deductions.

“54j. The statement referred to in paragraph (b) of sub-section (5.) of section 221k of the Act shall be furnished, where the employees are in more groups than one, in separate parts, with one part in respect of each group, and the statement, or each part thereof, as the case may be, shall—

(a) show the deductions in respect of the employees included in the group;

(b) be furnished to the Commissioner at the office of the Deputy Commissioner for the State or Territory in which the group is registered;

(c) reconciles the total of the amounts deducted as set out in the statement with the total of the sums paid to the Commissioner by the group employer on account of those amounts; and

(d) include a certificate signed, by the group employer certifying that the information contained therein is correct.

Issue of group certificates.

“54k.—(l.) A group employer who is required to issue a group certificate to a person who is or has been an employee shall sign the certificate, and may issue it—

(a) by causing it to be delivered to that person personally; or

(b) by posting it by prepaid letter post addressed to that person at his last known postal address.

“(2.) Where a group certificate which has been posted in accordance with this regulation is returned to the group employer undelivered, he shall forward the certificate to the Deputy Commissioner for the State or Territory in which the group is registered not, later than—

(a.) the thirty-first day of October next following the end of the financial year in which the deductions covered by the certificate were made; or

(b) seven days after the date of the return of the certificate, whichever is the later.

“(3.) A group employer shall include in every group certificate issued by him particulars of—

(a) the total salary or wages paid to the person to whom the certificate is issued during the period covered by the certificate; and

(b) the value of board or residence provided for, or allowance made to, that person during that period.

“(4.) A group employer shall enter on a form provided by the Commissioner, clearly marked ‘Triplicate’, a copy of the particulars entered on each group certificate to be issued by him, and shall, unless otherwise directed by the Commissioner, deal with the form in the same manner as he is required by these Regulations to deal with the group certificate.

“(5.) A person to whom any such form is issued shall forward the form to the Commissioner with, the return of income in which the salary or wages referred to in the form are included.

Return of unused certificates.

“54l. A group employer to whom a Deputy Commissioner has issued any group certificate forms in respect of any financial year or has allotted any serial numbers to be marked on group certificate forms in respect of any financial year shall, not later than the fourteenth day of August next following the end of that year, forward to that Deputy Commissioner any of those forms, and any forms marked with any of those numbers, which have not been issued as group certificates.

Evidence of amounts owing by group employer.

“54m. In any action against a person for the recovery of any amount payable to the Commissioner in pursuance of Division 2 of Part VI. of the Act, a certificate in writing signed by the Commissioner, the Second Commissioner, a Deputy Commissioner or a prescribed delegate of the Commissioner, certifying that—

(a) the person named in the certificate is, or was, on the date specified in the certificate, a group employer; and

(b) the sum named in the certificate was, at the date of the certificate, due by that person to the King on behalf of the Commonwealth in respect of amounts payable to the Commissioner under Division 2 of Part VI. of the Act,

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

Signatures by or for group employers.

“54n.—(1.) Every document required by these Regulations to be signed by a group employer shall be signed—

(a) in the case of an individual—by that individual;

(b) in the case of trustees—by the senior active trustee resident in Australia, or, where there is no active trustee resident in Australia, by the agent in Australia of the trustees;

(c) in the case of a company—by the public officer of the company;

(d) in the case of the Crown in right of the Commonwealth or of a State—by any officer appointed for the purpose by the Commonwealth or the State, as the case may be; and

(e) in the case of a municipal corporation, local governing body or public authority—by any officer authorized by that corporation, local governing body or authority.

“(2.) Where it is not possible or practicable for the person specified in the last preceding sub-regulation personally to sign all such documents, that person may authorize, in writing, another person to sign any such documents.

“(3.) A group employer shall forward to the Deputy Commissioner for the State or Territory in which the group is registered a specimen signature, on a form authorized by the Commissioner, of every person authorized by or under this regulation to sign documents in relation to any group, together with particulars of his name and of the capacity in which he acts, and any person so authorized shall not sign any document referred to in sub-regulation (1.) of this regulation until his specimen signature has been so furnished.

“(4.) The Commissioner or a Deputy Commissioner may, if he thinks fit, by notice in writing to the group employer, disapprove of the authorization of any person under sub-regulation (2.) of this regulation, and thereafter that person shall not sign any document referred to in sub-regulation (1.) of this regulation.

“(5.) Where a person authorized by or under this regulation to sign documents in relation to any group ceases (otherwise than in pursuance of sub-regulation (4.) of this regulation) to be so authorized, the group employer shall, within fourteen days thereafter, notify the Deputy Commissioner for the State or Territory in which the group is registered accordingly.

“Division 4.—Tax Stamps.

Definitions.

“54p. In this Division, unless the contrary intention appears—

‘deduction’ means a deduction under section 221c of the Act from the salary or wages of an employee;

‘employer’ means an employer who is not registered as a group employer;

‘tax check sheet’ means the portion of a tax deduction sheet provided for the affixing of tax checks;

‘tax stamps sheet’ means the portion of a tax deduction sheet provided for the affixing of tax stamps.

Application of section 221kd of the Act.

“54q.—(l.) An employer shall, instead of delivering, or causing to be delivered, tax stamps, as provided by section 221f of the Act, to employees from whose salaries or wages he makes deductions, deal with the amounts so deducted in the manner prescribed in this Division.

“(2.) The provisions of sections 221g and 221j of the Act shall not apply to an employee who is employed by an employer as defined in regulation 54p.

Form of tax stamps.

“54r. Tax stamps may be prepared and sold with a tax check, in a form, authorized by the Commissioner, attached to each stamp.

Tax checks not to be detached.

“54s. Except for the purposes of this Division, a person shall not detach a tax check from a tax stamp.

Use of tax stamps by persons other than employees.

“54t. A person who produces to the Commissioner any tax stamp, purchased with a tax check attached, in pursuance of section 221m of the Act, shall not, unless the Commissioner otherwise directs, be entitled to receive any credit or payment in respect of that stamp unless he produces the corresponding tax check.

Tax deduction sheets.

“54u.—(1.) Every employer who pays to an employee salary or wages from which he is required to make any deduction shall keep, in respect of that employee, a tax deduction sheet in a form authorized by the Commissioner.

“(2.) At the time of paying any salary or wages to any such employee, the employer shall enter, in the spaces provided for the purpose on the tax deduction sheet, the amount of—

(a) the salary or wages, before making any deduction; and

(b) the amount of any deduction.

Stamps to be affixed to tax deduction sheet.

“54v.—(1.) An employer, in respect of each of his employees shall—

(a) not later than the last day of every successive period of four weeks commencing, in every year, with the period ending on the 28th day of July in that year; and

(b) where the employment of the employee is terminated—on the last day of the period commencing at the close of the last such complete period of four weeks preceding the termination and ending on the date on which the employer makes the last payment of salary or wages to that employee,

securely affix, in a space provided for the purposes on the tax stamps sheet kept in respect of that employee, tax stamps of a face value equal to the amount of deductions made by him from the salary or wages of that employee paid during that period:

Provided that, for the purposes of this regulation, the period commencing at the close of the twelfth period of four weeks in every financial year and ending on the thirtieth day of June in that year shall be deemed to be a period of four weeks.

“(2.) The employer shall, at the time of affixing any tax stamp—

(a) securely affix the corresponding tax check in a space provided for the purpose on the tax check sheet; and

(b) cancel the tax stamp and the tax check by writing his name thereon.

Delivery of tax stamps sheets to employees.

“54w. An employer shall sign the tax stamps sheet relating to each of his employees in respect of whom he has kept a tax deduction sheet and deliver it to the employee—

(a) on the first day of July next following the period covered by that tax deduction sheet;

(b) on the day of making the last payment of salary or wages to that employee, if he is an employee whose employment has been terminated; or

(c) upon the production to him by that employee of a current certificate of exemption issued to that employee in pursuance of section 221l of the Act,

whichever is the earliest, and the employee shall sign a receipt therefor on the corresponding tax check sheet.

Manner of delivery.

“54x.— (1.) For the purpose of the last preceding regulation, an employer may deliver a tax stamps sheet to an employee—

(a) by causing it to be delivered to him personally; or

(b) by posting it by pre-paid letter post addressed to him at his last-known postal address.

“(2.) Where a tax stamps sheet which has been posted in accordance with this regulation is returned to the employer undelivered, he shall forward it, not later than seven days after the date of its return, to the Deputy Commissioner for the State or, Territory in which the salary or wages referred to in the sheet were paid.

Tax check sheets to be forwarded to Deputy Commissioner with summary.

“54y. An employer shall, not later than fourteen days after the close of each year ending on the thirtieth day of June—

(a) sign the tax check sheets for that year in respect of his employees; and

(b) forward such of those sheets as relate to employees to whom salaries or wages were paid in any State or Territory to the Deputy Commissioner for that State or Territory, together with a summary, in a form authorized by the Commissioner, signed by the employer, of the salaries or wages referred to in the sheets.

Requests for tax stamps and deduction sheets.

“54z. Subject to these Regulations, a person shall not obtain—

(a) any tax stamps; or

(b) any book containing forms of tax deduction sheets,

unless he has first delivered to the person issuing the stamps or book an application, in a form authorized by the Commissioner, signed by the applicant.

Commissioner may inspect tax stamps sheets in possession of employee.

“54aa. A person to whom a tax stamps sheet has been delivered by an employer and who has not delivered that sheet to the Commissioner shall, on demand made orally or in writing by the Commissioner or an officer authorized in writing by the Commissioner to make such demands, produce that sheet for inspection at the time and place specified in the demand.

Production of tax stamps sheet to Commissioner.

“54ab. Subject to this regulation, the provisions of section 221h of the Act shall apply in relation to a tax stamps sheet, to which properly cancelled tax stamps are duly affixed, delivered to an employee in accordance with these Regulations, as if it were a page of a book and

those stamps had been delivered to the employee, and affixed to that page, in accordance with Division 2 of Part VI. of the Act during the year, ending on the thirtieth day of June, in which the stamps were affixed to the sheet.

Employer to take proper care of stamps.

“54ac. An employer shall take all reasonable precautions for the safe custody of all tax deduction sheets to which he has affixed tax stamps or tax cheeks, until delivery thereof in accordance with these Regulations.

Stamps lost, destroyed, &c.

“54ad.—(1.) If the Commissioner is satisfied that any tax stamps duly affixed to any tax stamps sheet in respect of any employee have been stolen, lost or destroyed, or have not been delivered to the employee at or after the time when, under these Regulations, they should have been so delivered, and is satisfied as to the face value of those stamps, the Commissioner shall apply an amount equal to that face value in satisfaction of any tax payable by the employee, issue an interim stamps receipt or make a payment in respect thereof in the same manner as if the stamps sheet had been duly produced to the Commissioner.

“(2.) Where the Commissioner has applied the provisions of the last preceding sub-regulation in respect of any tax stamps, no person shall be entitled to receive any further benefit on production of those stamps, and a person who thereafter has in his possession any of those stamps shall forthwith forward them to the Commissioner together with a statement of the circumstances of his possession.

Employee may inspect tax stamps.

“54ae. An employer who is required to keep a tax deduction sheet in respect of an employee shall comply with a request by the employee for its production, at a reasonable time, for inspection by the employee.

Offences relating to tax stamps.

“54af. A person shall not, without lawful excuse (proof whereof shall lie upon him)—

(a) remove or cause to be removed from any tax stamps sheet any tax stamp, or affix a tax stamp so removed to any other tax stamps sheet; or

(b) utter any tax stamp which has been removed from any tax stamps sheet.”.

Service of notices, &c.

17. Regulation 58n of the Income Tax Regulations is amended by inserting after the word “it” the words “personally, or by pre-paid letter post”.

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