Land and Income Taxation Act 1910

Land and Income Taxation Act 1910

An Act respecting the assessment of income and the taxation of land and income

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

PART I - Introductory

1.   Short title and commencement

(1)  This Act may be cited as the Land and Income Taxation Act 1910 .

(2)  This Act shall come into operation on the thirty-first day of December 1910.

2.   Interpretation

[Section 2 Substituted by 26 Geo. V No. 35, s. 3 ][Section 2 Amended by 5 Geo. VI No. 43, s. 3 ][Section 2 Amended by 6 Geo. VI No. 59, s. 2 ][Section 2 Subsection (1) amended by No. 85 of 1977, s. 2 ][Section 2 Subsection (1) amended by No. 72 of 1978, s. 4 ][Section 2 Subsection (1) amended by No. 55 of 1979, s. 4 ][Section 2 Subsection (1) amended by No. 78 of 1982, s. 4 and s. 9 and Sched. 1 ][Section 2 Subsection (1) amended by No. 60 of 1983, s. 4 ][Section 2 Subsection (1) amended by No. 108 of 1987, s. 26 and Sched. 2 ][Section 2 Subsection (1) amended by No. 54 of 1989, s. 4 ][Section 2 Subsection (1) amended by No. 30 of 1995, s. 3 and Sched. 1 ]

(1)  [Section 2 Subsection (1) amended by No. 74 of 1976, s. 2 ]In this Act and in any Act fixing the scale or scales of land tax for any financial year, except in so far as the context or subject-matter otherwise indicates or requires –

agent includes every person, who, in this State for or on behalf of any other person outside this State (hereinafter called "the principal") –

(a) has the control, receipt, or disposal of any real or personal property, or of any income or moneys belonging to the principal, or directly or indirectly remits the same to the principal; or

(b) directly or indirectly in any manner whatsoever sells or otherwise disposes of any real or personal property belonging to the principal, or negotiates, solicits, or procures any such sale or disposal, or does any act or thing by means of which any such sale or disposal is brought about –

and also includes every person declared by the Commissioner to be an agent for any person for the purposes of this Act;

allowable deduction means a deduction allowable under this Act;

annual value of a property means the annual rental that is paid or that could be reasonably demanded for the use and occupation thereof;

assessable income means all income which is not exempt income under the provisions of this Act;

assessed land value, in relation to land, means a sum calculated in respect of that land as provided by section 11 ;

assessment means the ascertainment of the amount of taxable income and of the tax payable thereon or of the tax payable in respect of any land;

business includes any profession, trade, employment, vocation, or calling, but does not include occupation as an employee;

child includes a step-child;

combined tax has the meaning assigned to that expression by section 16 (3) of the Ambulance Service Contributions Act 1987 ;

Commissioner means the Commissioner of Taxes;

company includes all bodies or associations corporate or unincorporate, but does not include partnerships;

dividend includes –

(a) any distribution made by a company to its shareholders, whether in money or other property, and any amount credited to them as shareholders;

(b) the paid-up value of shares distributed by a company to its shareholders to the extent to which the paid-up value represents a capitalization of profits –

but does not include a return of paid-up capital or a reversionary bonus on a policy of life-assurance;

exempt income means income which is exempt from income tax;

flat means a room or suite of rooms designed or adapted for separate occupation, and includes any separate car-parking accommodation or other separate facility located on or within the same parcel of land as that on which the building containing that room or suite of rooms is constructed;

forestry undertaking means an undertaking involving the work of planting trees, or tending trees planted, within a tract of land with a view to selling the trees, or the timber obtained from the trees, after they have been felled;

income from personal exertion or income derived from personal exertion means income consisting of earnings, salaries, wages, commissions, fees, gains, bonuses, pensions, superannuation allowances, retiring allowances, and retiring gratuities, allowances and gratuities received in the capacity of employee or in relation to any services rendered, the proceeds of any business carried on by the taxpayer either alone or as a partner with any other person, any amount received as a bounty or subsidy in carrying on a business, the income from any property where that income forms part of the emoluments of any office or employment of profit held by the taxpayer, and any profit arising from the sale by the taxpayer of any property acquired by him during the year of income, or the three years next prior thereto, and any profit arising from the sale by the taxpayer of any property acquired by him for the purpose of profit-making by sale or from the carrying on or carrying out of any profit-making undertaking or scheme, but does not include –

(a) interest, unless the taxpayer's principal business consists of the lending of money, or unless the interest is received in respect of a debt due to the taxpayer for goods supplied or services rendered by him in the course of his business; or

(b) rents or dividends;

income from property or income derived from property means all income not being income from personal exertion;

income tax means the income tax imposed as such by any Act as assessed under this Act;

land includes a stratum flat;

land tax means the land tax imposed by any Act for the purposes of this Act;

land value, in relation to land, means a sum assessed in respect of that land as provided by section 12 (5) of the Land Valuation Act 1971 ;

liquidator means the person who, whether or not appointed as liquidator, is the person required by law to carry out the winding-up of a company;

livestock does not include animals used as beasts of burden or working beasts in a business other than a business of primary production;

manager or public officer includes any agent or other person, not being the manager of any company which has not its head office or chief place of business in this State, who conducts or carries on the business of such company in this State;

manufacture does not include the extraction or processing of a mining product;

mercantile business means any business in which sales are effected of goods, wares, merchandise, or personal property of any kind;

mortgage includes any charge, lien, or incumbrance to secure the repayment of money;

municipal corporation means a council;

municipal district means a municipal area;

non-resident means a person who is not a resident of this State;

notice means notice in writing;

paid, in relation to dividends, includes credited or distributed;

parent includes a step-parent;

partnership means an association of persons carrying on business as partners or in receipt of income jointly, but does not include a company;

primary production means production resulting from a substantial agricultural, horticultural, viticultural, forestry, orcharding, pastoral or dairy farming, horse breeding, poultry farming, or apicultural undertaking, or any 2 or more of those undertakings;

relative means a husband or wife or a relation by blood, marriage, or adoption;

resident, in relation to an individual taxpayer, means a person who resides in this State;

resides or resident, when either term is used so as to be intended to have relation to a company, shall be deemed to have reference to the place where such company has –

(a) either its head office or its chief place of business; or

(b) its chief place of manufacture or production within the Commonwealth;

return includes all returns, declarations, statements, and particulars required to be furnished under this Act;

shareholder includes member or stockholder;

State means State of the Commonwealth;

stratum flat means a flat in respect of which a separate valuation made in accordance with the Land Valuation Act 1971 is in force;

taxable income means the amount remaining after deducting from the assessable income all allowable deductions;

taxpayer means a person deriving income, and, in relation to land, means any person who is liable under this Act to pay land tax in respect thereof;

trading stock includes anything produced, manufactured, acquired, or purchased for purposes of manufacture, sale, or exchange, and also includes livestock;

trustee, in addition to every person appointed or constituted trustee by act of parties, by order, or declaration of a court, or by operation of law, includes –

(a) an executor or administrator, guardian, committee, receiver, or liquidator; and

(b) every person having or taking upon himself the administration or control of income affected by any express or implied trust or acting in any fiduciary capacity, or having the possession, control, or management of the income of a person under any legal or other disability;

year of income means –

(a) the financial year next preceding the year of tax; or

(b) the accounting period, if any, adopted under this Act in lieu of that financial year;

year of tax means the year for which income tax is levied.

(2)  For the purposes of this Act the sale price of any mining product produced in this State shall be income derived in this State.

2A.   Rural land

[Section 2A Inserted by No. 72 of 1978, s. 5 ]

(1)  [Section 2A Subsection (1) amended by No. 39 of 1992, s. 13 ]In this Act and any Act fixing the scale or scales of land tax for any financial year, a reference to rural land is, subject to this section, a reference to –

(a) land of or exceeding an area of 10 hectares where the land is used, as at 1 July in that financial year, principally for the purpose of primary production; or

(b) land of less than 10 hectares where the land is used, as at 1 July in that financial year, principally for the purpose of primary production and provides either the owner or occupier of the land with his only or principal means of livelihood.

(2)  For the purpose of subsection (1) , the onus of establishing that land is used principally for the purpose of primary production or that it provides the owner or occupier of the land with his only or principal means of livelihood is on the owner of the land, and if that owner fails to produce to the Commissioner such evidence as will satisfy him that the land is so used or, as the case may be, that the land provides the owner or occupier with his only or principal means of livelihood, the Commissioner may treat the land as not being rural land within the meaning of that subsection.

(3)  [Section 2A Subsection (3) omitted by No. 82 of 1995, s. 9 ].  .  .  .  .  .  .  .  

(4)  [Section 2A Subsection (4) omitted by No. 60 of 1983, s. 5 ].  .  .  .  .  .  .  .  

(5)  [Section 2A Subsection (5) omitted by No. 60 of 1983, s. 5 ].  .  .  .  .  .  .  .  

PART II - ADMINISTRATION OF ACT

3.   Division of State into districts

[Section 3 Amended by 25 Geo. V No. 78 ]For the purposes of this Act the Governor may, by proclamation –

(a) declare the State or any portion of the State described or defined in such proclamation to be a district;

(b) subdivide any district into several districts;

(c) abolish any one or more districts, and create new districts.

4.   This Part to be subject to Tasmanian State Service Act 1984

[Section 4 Amended by No. 29 of 1984, s. 3 and Sched. 1 ]The provisions of this Part relating to employees shall be construed with and be subject to the provisions of the Tasmanian State Service Act 1984 .

5.   Commissioner of Taxes

Subject to the provisions of this Act, the collection and recovery of all taxes, imposed by virtue of this Act shall be under the control, direction, and management of an officer, to be styled the Commissioner of Taxes.[Section 6 Subsection (3) omitted by 2 Geo. VI No. 56, s. 2 ]

6.   Appointment of employees

[Section 6 Substituted by No. 29 of 1984, s. 3 and Sched. 1 ]

(1)  [Section 6 Subsection (1) substituted by No. 5 of 1990, s. 3 and Sched. 1 ]The Minister administering the Tasmanian State Service Act 1984 may appoint a person employed under that Act to be Commissioner of Taxes and that person shall hold that office in conjunction with a position or an office under that Act.

(2)  Subject to and in accordance with the Tasmanian State Service Act 1984 , persons may be appointed or employed for the purposes of this Act.

7.   

[Section 7 Repealed by No. 29 of 1984, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

8.   Secrecy to be preserved: Powers of Commissioner

[Section 8 Subsection (2) amended by No. 68 of 1994, s. 3 and Sched. 1 ]

(1)  [Section 8 Subsection (1) substituted by 3 Geo. VI No. 25, s. 2 ]For the purposes of this section and section nine , officer means a person who is, or has been, appointed or employed by the Commonwealth or by a State, and who, by reason of that appointment or employment, or in the course of that employment, may acquire, or has acquired, information respecting the affairs of any other person, disclosed or obtained under the provisions of this Act.

(1A)  [Section 8 Subsection (1A) inserted by 3 Geo. VI No. 25, s. 2 ]Subject to this section, an officer shall not, either directly or indirectly, except in the performance of any duty as an officer, and either while he is, or after he ceases to be, an officer, make a record of, or divulge or communicate to any person, any such information so acquired by him.

(1B)  [Section 8 Subsection (1B) inserted by 3 Geo. VI No. 25, s. 2 ]An officer shall not be required to produce in court any return, assessment, or notice of assessment, or to divulge or communicate to any court any matter or thing coming under his notice in the performance of his duties as an officer, except when it is necessary to do so for the purpose of carrying into effect the provisions of this Act.

(2)  [Section 8 Subsection (2) amended by 3 Geo. VI No. 25, s. 2 ]It shall be lawful for the Commissioner to afford –

(a) to the officer administering the Income Tax Assessment Act 1936 of the Commonwealth any information in his possession with regard to the administration of this Act or the incomes of any taxpayers thereunder;

(b) to the officer administering the Act of any other State of the Commonwealth under which incomes are assessed for taxation, and which contains provisions similar to this paragraph applicable to this State, any information in his possession with respect to the business done in this State by any person or company carrying on business in such other State as well as in this State;

(c) to any person approved by the Treasurer and who has made the prescribed declaration of fidelity and secrecy, any information which the Commissioner is satisfied is required for statistical purposes or for the purposes of any economic investigation authorized by the Treasurer; and

(d) to a board of review appointed under this Act –

and to make use of any information obtained by him in the administration of this Act for the purpose of carrying out and giving effect to the provisions of the Deceased Persons' Estates Duties Act 1931 .

(3)  [Section 8 Subsection (3) added by 3 Geo. VI No. 25, s. 2 ]Any person to whom information is communicated under subsection (2) hereof, and any person or employee under his control, shall, in respect of that information, be subject to the same rights, privileges, obligations, and liabilities under subsections (1A) and (1B) hereof as if he were an officer.

9.   Declaration of fidelity and secrecy

[Section 9 Amended by 25 Geo. V No. 78 ][Section 9 Amended by 3 Geo. VI No. 25, s. 2 ][Section 9 Amended by No. 55 of 1965, s. 5 ]

(1)  Any officer shall, if and when required by the Commissioner or a Deputy Commissioner to do so, make a declaration, in the manner and form prescribed, to maintain secrecy in conformity with the provisions of section eight .

Penalty:  Four hundred dollars or imprisonment for six months.

(2)  [Section 9 Subsection (2) amended by No. 55 of 1965, s. 5 ]Every person who wilfully acts in contravention of the true intent of such declaration shall be liable to a penalty of not less than forty dollars and not more than four hundred dollars, or to imprisonment for six months.

(3)  Before any information is given to any person under the provisions of paragraph (c) of subsection (2) of section eight, such person shall make a declaration as provided by subsection (1) hereof, and shall be subject to the provisions of subsection (2) hereof, in respect of such declaration.

(4)  [Section 9 Subsection (4) amended by No. 55 of 1965, s. 5 ]If the person acts in the execution of his office before he has made the prescribed declaration, he shall be liable to a penalty of two hundred dollars.

PART III - THE LAND TAX

9A.   Interpretation of Part III

[Section 9A Inserted by No. 39 of 1992, s. 14 ]

(1)  [Section 9A Subsection (1) amended by No. 82 of 1995, s. 10 ]In this Part –

apportioned assessed land value means the apportioned assessed land value as determined under section 21A , 21B , 21D or 21DA ;

co-operative housing land means land owned by a registered society within the meaning of the Co-operative Industrial Societies Act 1928 ;

home-unit company means a company in which all the issued shares are owned by persons each of whom has an exclusive right to occupy a flat which forms part of a building on home-unit company land;

home-unit company land means land owned by a home-unit company;

land used for residential purposes, in relation to retirement village land, means land on which flats are constructed;

principal residence means a dwelling, flat or structure used for domestic purposes as at 1 July in each financial year;

principal residence land means land, other than rural land, home-unit company land, co-operative housing land or retirement village land, on which a principal residence is situated;

[Section 9A Subsection (1) amended by No. 67 of 1996, s. 5, Applied:01 Jul 1997] registered trustee company means –

(a) a trustee company as defined in the Trustee Companies Act 1953 ; or

(b) the Public Trustee as defined in the Public Trustee Act 1930 ;

[Section 9A Subsection (1) amended by No. 67 of 1996, s. 4, Applied:01 Jul 1997] related companies means companies that are related as provided by section 21F .

[Section 9A Subsection (1) amended by No. 67 of 1996, s. 5, Applied:01 Jul 1997]

[Section 9A Subsection (1) amended by No. 67 of 1996, s. 5, Applied:01 Jul 1997] related person, in relation to an owner, means –

(a) the spouse or former spouse of the owner; or

(b) a beneficiary of the estate of the owner; or

(c) a beneficiary of a trust appointed by a court; or

(d) a shareholder of a home-unit company or a spouse or former spouse of the shareholder; or

(e) a person with an exclusive right to occupy a flat owned by a retirement village or a spouse or former spouse of that person;

retirement village means a complex containing flats predominantly occupied by retired persons under a right conferred –

(a) by shares; or

(b) by licence; or

(c) by any other prescribed scheme;

retirement village land means land on which a retirement village is situated;

[Section 9A Subsection (1) amended by No. 67 of 1996, s. 4, Applied:01 Jul 1997] unit, in a unit trust scheme, means a right or interest whether described as a unit or a sub-unit or otherwise, of a beneficiary under the scheme;

[Section 9A Subsection (1) amended by No. 67 of 1996, s. 4, Applied:01 Jul 1997] unit trust scheme means any arrangements made for the purpose, or having the effect, of providing for persons having funds available for investment, facilities for the participation of those persons as beneficiaries under a trust, in any profit, income or distribution of assets arising from the acquisition, holding, management or disposal of any property under the trust;

[Section 9A Subsection (1) amended by No. 67 of 1996, s. 5, Applied:01 Jul 1997] used for domestic purposes means used and occupied for domestic purposes by –

(a) a person who owns or persons who together own 50% or more of the land to which the term relates; or

(b) a related person of such a person.

(2)  A person has an exclusive right to occupy a flat notwithstanding that the person –

(a) lets the flat or part of the flat to another person; or

(b) shares the occupation of the flat with one or more persons.

10.   Land tax

[Section 10 Amended by No. 56 of 1952, s. 2 ][Section 10 Amended by No. 35 of 1957, s. 2 ][Section 10 Subsection (1) amended by No. 56 of 1952, s. 2 ][Section 10 Subsection (1) amended by No. 35 of 1957, s. 2 ][Section 10 Subsection (1) amended by No. 86 of 1958, s. 2 ][Section 10 Subsection (1) amended by No. 60 of 1959, s. 2 ][Section 10 Subsection (1) amended by No. 39 of 1960, s. 2 ][Section 10 Subsection (1) amended by No. 80 of 1971, s. 2 ][Section 10 Subsection (1) amended by No. 74 of 1976, s. 3 ][Section 10 Subsection (1) amended by No. 72 of 1978, s. 6 ][Section 10 Subsection (1) amended by No. 78 of 1982, s. 5 and s. 9 and Sched. 1 ][Section 10 Subsection (1) amended by No. 68 of 1994, s. 3 and Sched. 1 ][Section 10 Subsection (1) amended by No. 98 of 1995, s. 42 and Sched. 5 ][Section 10 Subsection (1) amended by No. 59 of 1996, s. 11 ][Section 10 Amended by No. 68 of 1994, s. 3 and Sched. 1 ][Section 10 Amended by No. 60 of 1959, s. 2 ]

(1)  [Section 10 Subsection (1) amended by No. 42 of 1997, s. 16, Applied:01 Jul 1997] [Section 10 Subsection (1) amended by 7 Geo. VI No. 25, s. 2 ]Subject to the provisions of this Act, there shall be levied and paid to the Commissioner for each financial year, for the use of the Crown, and in the manner hereinafter directed, a graduated land tax, in respect of such land, and in such cases and according to such scale or scales, as Parliament may from time to time declare and enact, except that no such tax shall, under this Act, be levied on any of the following lands:

(a) Lands of the Crown which are not subject to lease, agreement for sale, or right of purchase;

(b) Any land the property of and occupied by or on behalf of the Crown;

(c) Any land of the Crown held under any lease or licence granted under the provisions of any Act, other than the Closer Settlement Act 1957 , regulating the occupation by lease or licence of any lands of the Crown for any purpose in such Act mentioned;

(d) Public roads, public cemeteries, not being the property of any joint stock or public company, and all public recreation grounds and reserves;

(e) [Section 10 Subsection (1) amended by No. 13 of 1997, Sched. 4, Applied:01 Jul 1997] Land owned by, or in trust for, or vested in, any person or body of persons having the ownership, management, or control of a private hospital, a rest home, or a convalescent home;

(f) Land owned by, or in trust for, or vested in, a religious denomination or religious society and used solely–

(i) for religious, charitable, or educational purposes (including the support of aged or infirm clergymen or ministers of the religious denomination or religious society, or their wives, widows, or children);

(ii) as a place of worship for members of the religious denomination or religious society or for members of a religious order; or

(iii) a place of residence for clergymen or ministers of the religious denomination or religious society or for members of a religious order–

or if the proceeds of the land are applied for any of the purposes mentioned in this paragraph;

(g) Land owned by, or in trust for, or vested in, a person or body of persons having the ownership, management, or control of a charitable institution, if the charitable institution, however formed or constituted, is carried on solely for charitable purposes and not for pecuniary profit;

(h) Land vested in trust for public purposes;

(i) Land on which is built any public library or public museum;

(j) [Section 10 Subsection (1) amended by No. 66 of 1997, Sched. 1, Applied:01 Feb 1998] Any land which is owned by a society within the meaning of the Friendly Societies (Tasmania) Code;

(k) Any land owned by any local authority or other local governing or statutory public body, other than a joint authority within the meaning of the Local Government Act 1993 to which Part 3A of that Act applies;

(l) Any land owned by any association or society which is used by it for holding public exhibitions and not for the purposes of profit or gain to be divided amongst the members thereof;

(m) Crown land situate beyond the limits of any town, being the subject of a contract to purchase the same on credit until seven years from the date of the said contract have elapsed;

(n) Land owned by, or in trust for, or vested in, a person or body of persons having the ownership, management, or control of a school that is registered under Part IV of the Education Act 1932 , if the school is carried on solely for educational purposes and–

(i) the school is not carried on for pecuniary profit; or

(ii) if the school is carried on for pecuniary profit, the land is declared by the Governor, by order, to be land to which this paragraph applies;

(o) [Section 10 Subsection (1) amended by No. 67 of 1996, s. 6, Applied:01 Jul 1997] Any land of which a person who is entitled to a compulsory remission of rates and charges under the Local Government (Rates and Charges Remissions) Act 1991 owns 50% or more;

(p) [Section 10 Subsection (1) amended by No. 67 of 1996, s. 6, Applied:01 Jul 1997] Any land 50% or more of which is owned by any person who, being in receipt of a pension payable under the Repatriation Act , is totally and permanently incapacitated and, if, for the financial year for which the land tax is levied, the taxable income of his wife does not exceed $100, any land 50% or more of which is owned by her;

(q) Land owned by, or in trust for, or vested in–

(i) the Young Men's Christian Association;

(ii) the Young Women's Christian Association;

(iii) the Country Women's Association;

(iv) the Boy Scouts Association, Tasmanian Branch;

(v) the Girl Guides Association;

(vi) a Police Boys' Club;

(vii) a Police Girls' Club;

(viii) the Returned Soldiers', Sailors', and Airmen's Imperial League of Australia or any branch or sub-branch thereof; or

(ix) any society or body of persons to whom the Governor, by order, declares that the provisions of this paragraph shall apply;

(r) Aboriginal land, within the meaning of the Aboriginal Lands Act 1995 , which is used principally for Aboriginal cultural purposes.

(1A)  [Section 10 Subsection (1A) inserted by No. 74 of 1976, s. 3 ]A land tax may be declared and enacted in respect of a particular class or description of land, and differing scales of land tax may be declared and enacted in respect of different classes or descriptions of land.

(2)  [Section 10 Subsection (2) omitted by No. 72 of 1978, s. 6 ].  .  .  .  .  .  .  .  

(3)  [Section 10 Subsection (3) omitted by No. 72 of 1978, s. 6 ].  .  .  .  .  .  .  .  

(3A)  [Section 10 Subsection (3A) inserted by No. 39 of 1960, s. 2 ]In paragraph (e) of subsection (1) of this section –[Section 10 Subsection (3A) amended by No. 13 of 1997, Sched. 4, Applied:01 Jul 1997]

private hospital means any place in which medical or surgical or lying-in cases are, or are intended to be, received and lodged for any treatment, attendance, or care for which a charge is made.

(4)  [Section 10 Subsection (4) added by No. 35 of 1957, s. 2 ]In subsection (1) of this section –

Repatriation Act means the Repatriation Act 1920-1959 of the Commonwealth, and includes that Act as amended from time to time and any Commonwealth Act passed in substitution therefor;

Social Services Act means the Social Services Act 1947-1959 of the Commonwealth, and includes that Act as amended from time to time and any Commonwealth Act passed in substitution therefor.

(5)  [Section 10 Subsection (5) inserted by No. 20 of 1995, s. 3 and Sched. 1 ]For the purposes of subsection (1) –

(a) land owned by or vested in a Government Business Enterprise, within the meaning of the Government Business Enterprises Act 1995 , is not –

(i) land of the Crown; or

(ii) land the property of and occupied by or on behalf of the Crown; or

(iii) land vested in trust for public purposes; and

(b) such a Government Business Enterprise is not a statutory public body.

10A.   

[Section 10A Repealed by No. 72 of 1978, s. 7 ].  .  .  .  .  .  .  .  

11.   Taxable value of land

[Section 11 Substituted by No. 54 of 1989, s. 5 ][Section 11 Amended by No. 39 of 1992, s. 15 ]For the purposes of this Act –

(a) the assessed land value, in relation to land, is the product obtained by multiplying the land value of that land by an adjustment factor determined under section 11A with respect to land of the appropriate class or description in the municipal district in which the land is situated; and

(b) the taxable value of land is the assessed land value or the apportioned assessed land value of that land.

11A.   Determination of adjustment factors by Valuer-General

[Section 11A Inserted by No. 54 of 1989, s. 5 ]

(1)  For the purposes of this section, the Valuer-General shall –

(a) as soon as practicable after the day on which the Land and Income Taxation Amendment Act 1989 receives the Royal Assent, determine in accordance with this section adjustment factors with respect to the financial year commenced on 1st July 1989; and

(b) during the month of April in the year 1990 and in each subsequent year, determine in accordance with this section adjustment factors with respect to the following financial year.

(2)  The adjustment factors shall be applicable to all land in respect of which the Valuer-General is required to make a valuation under section 12 (1) of the Land Valuation Act 1971 .

(3)  For the purposes of this section, the Valuer-General shall in respect of each municipal district –

(a) determine an adjustment factor applicable to such class or description of land in that municipal district as the Valuer-General may determine; and

(b) furnish the Commissioner with a certified copy of the determination –

and shall, within 14 days after making the determination, cause a copy of the determination to be published in the Gazette.

(4)  For the purposes of this section, an adjustment factor applicable to land of a particular class or description is a factor by which, in the opinion of the Valuer-General, the land value of land of that class or description is to be multiplied if the value of that land is to accord with levels of value generally prevailing on 31st March last preceding the determination in respect of land of that class or description in the relevant municipal district.

11B.   Review of determinations by Valuer-General

[Section 11B Inserted by No. 54 of 1989, s. 5 ]

(1)  [Section 11B Subsection (1) amended by No. 20 of 1995, s. 3 and Sched. 1 ]If a council is dissatisfied with the determination of an adjustment factor under section 11A relating to its municipal district, the council may, within 30 days after a copy of that determination is published in the Gazette, apply to the Valuer-General in accordance with this section for a review of that determination.

(2)  [Section 11B Subsection (2) amended by No. 30 of 1995, s. 3 and Sched. 1 ]An application for a review of a determination under subsection (1) shall be in writing and supported by a statement of the grounds on which the application is made and by one or more valuations of land in the relevant council.

(3)  The Valuer-General shall, within 14 days after receipt of an application for review under subsection (1) , consider the application and either affirm or vary the determination to which it relates.

(4)  [Section 11B Subsection (4) amended by No. 30 of 1995, s. 3 and Sched. 1 ]On varying or affirming a determination under subsection (3) , the Valuer-General shall –

(a) give notice in writing of the variation or affirmation to the council which applied for the review; and

(b) if the determination is varied, cause a copy of the determination as so varied to be published in the Gazette.

(5)  Where a determination is varied under this section, the determination as so varied shall, on publication under subsection (4) (b) , have the same effect as if it had been made under section 11A .

12.   Liability of owners for land tax

[Section 12 Amended by No. 60 of 1959, s. 3 ][Section 12 Amended by No. 74 of 1976, s. 5 ][Section 12 Subsection (1) amended by No. 54 of 1989, s. 6 ][Section 12 Subsection (1) amended by No. 82 of 1995, s. 11 ]

(1)  [Section 12 Subsection (1) amended by No. 67 of 1996, s. 7, Applied:01 Jul 1997] [Section 12 Subsection (1) amended by No. 78 of 1982, s. 6 ]Land tax shall be levied and paid as follows:

(a) By every owner of land, other than principal residence land or rural land, in respect of which the land tax is levied of an amount determined by reference to the assessed land value thereof;

(b) [Section 12 Subsection (1) amended by No. 67 of 1996, s. 8, Applied:01 Jul 1997] [Section 12 Subsection (1) amended by No. 67 of 1996, s. 7, Applied:01 Jul 1997] In the case of an owner of several estates or parcels of land in respect of which the assessed land tax is levied, the aggregate of the values of such several estates or parcels shall be regarded for the purpose of taxation as if such aggregate represented the land value of a single estate or parcel;

(c) [Section 12 Subsection (1) amended by No. 67 of 1996, s. 7, Applied:01 Jul 1997] if a company owns, or related companies own, more than one parcel of land, land tax is to be levied on the aggregate value of those parcels of land as if they were a single parcel owned by a single company.

(2)  [Section 12 Subsection (2) omitted by No. 82 of 1995, s. 11 ][Section 12 Subsection (2) inserted by No. 67 of 1996, s. 7, Applied:01 Jul 1997] For the purposes of subsection (1)(c) , if a company co-owns land with a natural person, a trustee or another company, the company is the owner of the land if it holds more than 50% of the land.

(4)  [Section 12 Subsection (4) inserted by No. 67 of 1996, s. 8 ]The Commissioner, on application by a trustee, may exempt any land from land tax for a financial year, if –

(a) the land is held by the trustee; and

(b) a dwelling, flat or other structure on the land is used and occupied for domestic purposes, as at 1 July in that financial year, by a beneficiary of the trust; and

(c) the Commissioner is satisfied that the beneficiary does not already own any principal residence land.

(5)  [Section 12 Subsection (5) inserted by No. 67 of 1996, s. 8 ]The Commissioner, on application by a company, may exempt any land from land tax for a financial year, if –

(a) the land is owned by the company; and

(b) a dwelling, flat or other structure on the land is used and occupied for domestic purposes as at 1 July in that financial year, by a person or persons who own 50% or more of the shares in the company; and

(c) the Commissioner is satisfied that that person or those persons do not already own any principal residence land.

(6)  [Section 12 Subsection (6) inserted by No. 67 of 1996, s. 8 ]Land which is exempt under subsection (4) or (5) is taken to be principal residence land for the purposes of section 21A .

12A.   

[Section 12A Repealed by No. 82 of 1995, s. 12 ].  .  .  .  .  .  .  .  

12B.   

[Section 12B Repealed by No. 82 of 1995, s. 12 ].  .  .  .  .  .  .  .  

12C.   

[Section 12C Repealed by No. 82 of 1995, s. 12 ].  .  .  .  .  .  .  .  

13.   Date at which ownership determined for purposes of tax

(1)  The land tax shall be charged on land as owned at the commencement of the financial year for which the tax is levied.

(2)  Every person whose name appears at the commencement of a financial year in a current valuation list furnished to the Commissioner by the Valuer-General under section forty-three of the Land Valuation Act 1950 or section forty-two of the Land Valuation Act 1971 as owner of land shall for the purposes of this Act be deemed to be the owner of that land at that point of time unless –

(a) [Section 13 Subsection (2) amended by No. 67 of 1996, s. 9, Applied:01 Jul 1997] before that point of time a notice of change of ownership of that land has been given to the Recorder under section 13A and the Recorder advises the Commissioner that the notice has been received and the Commissioner is prepared to act on that notice as provided in subsection (3) of this section; or

(b) it appears upon an objection to assessment under section one hundred and thirty-four that at no time during the previous financial year was he the owner of that land.

(3)  [Section 13 Subsection (3) amended by No. 67 of 1996, s. 9, Applied:01 Jul 1997] Upon receipt of advice from the Recorder under subsection (2) (a) or upon other information of change of ownership, the Commissioner shall, unless he has reason to doubt the truth of the notice or the sufficiency of the other information, alter the name of the owner on the relevant list to agree with that information.

(4)  A person who has paid the land tax in respect of land of which he has ceased to be the owner before the end of the financial year for which the tax is levied may recover a fair and proper proportion of the tax from any other person who became owner thereof before that point of time as money paid by him for that other person at his request.

13A.   Notice of change of ownership

[Section 13A Inserted by No. 80 of 1971, s. 3 ]

(1)  Where land is sold or otherwise disposed of, the purchaser or other person to whom the land is transferred must give notice of the transaction in writing to the Recorder of Titles.

(2)  Where land is compulsorily acquired under the authority, or for the purposes, of any Act, the person by whom the land is so acquired must give notice of the acquisition in writing to the Recorder of Titles.

(3)  A notice under subsection (1) or (2) –

(a) is to contain such particulars relating to the description of the land, the parties to the transaction and details of the transaction and use of the land as are required for the purposes of this Act, the Local Government Act 1993 , the Land Valuation Act 1971 and any other Act prescribed by the regulations; and

(b) is to be included in any dealing lodged with the Recorder of Titles relating to the sale, disposition or acquisition as may be required by the Land Titles Act 1980 .

(3A)  Without limiting the preceding provisions of this section, where a person has been aggrieved by a failure to comply with subsection (1) or (2) , the Recorder of Titles must accept for the purposes of this Act a copy of the notice of the transaction or acquisition produced by that person containing all the particulars required to be included in the notice as evidence that the transaction for which the notice is required has been completed.

(3B)  A person or authority which is required to give notice under this section must at the request of a person disposing of any land for which the notice is required provide that person with a copy of the notice required under subsection (1) or (2) .

(3C)  Where –

(a) a person by whom the relevant land was sold or otherwise disposed of or whose land was compulsorily acquired has been aggrieved by a failure to comply with subsection (1) or (2) ; and

(b) the Recorder of Titles has received from that person a copy of the notice required under subsection (1) or (2) –

the parties to the relevant transaction are to be treated for the purposes of this Act as if the notice had been duly given to the Recorder of Titles.

(4)  Where there is a change in the ownership of land otherwise than –

(a) pursuant to or by a transaction of which notice has been given under subsection (1) ; or

(b) as mentioned in subsection (2) –

of this section, the new owner shall give notice of the change to the Recorder of Titles within thirty days after the change.

(5)  A person who fails to comply with subsection (1) or (2) , or an owner who fails to comply with subsection (4) , is guilty of an offence and is liable on conviction to a penalty of $100.

[Section 13A Subsection (1) substituted by No. 21 of 1996, s. 20 and Sched. 1 ][Section 13A Subsection (5) added by No. 72 of 1978, s. 8 ]

13B.   Notice of other changes

[Section 13B Inserted by No. 72 of 1978, s. 9 ]

(1)  Where any event (other than a change of ownership to which section 13A relates) occurs by reason of which land ceases to be land of a class or description referred to in paragraphs (a) to (q) of section 10 (1) or ceases to be rural land, the owner of the land shall give notice of that event in writing to the Commissioner within 30 days after its occurrence.

(2)  A person who fails to comply with subsection (1) is guilty of an offence and is liable on conviction to a penalty of $100.

13C.   Land tax rebate

[Section 13C Inserted by No. 82 of 1995, s. 13 ]

(1)  The owner of any land may apply to the Commissioner for a rebate of land tax in relation to a financial year if –

(a) the owner was the owner at the start of the financial year; and

(b) [Section 13C Subsection (1) amended by No. 67 of 1996, s. 10, Applied:01 Jul 1997] during that financial year a dwelling was constructed on the land and occupied as principal residence land by the owner or a related person of the owner; and

(c) the owner did not own during the financial year any other land classified as principal residence land.

(2)  An application is to be in a form approved by the Commissioner.

(3)  On receipt of an application in relation to the financial year commencing on 1 July 1995, the Commissioner, if satisfied that a rebate is payable, is to grant a rebate equal to the difference between the amount of land tax paid and the amount that would have been paid if the land had been assessed as principal residence land.

(4)  On receipt of an application in relation to a financial year commencing on 1 July 1996 or later, the Commissioner, if satisfied that a rebate is payable, is to grant a rebate equal to the amount of land tax paid.

14.   Joint tenants, &c.

Persons owning land as joint tenants, tenants in common, co-partners, co-trustees, or on joint account shall, in respect of land so owned and for the purposes of the land tax thereon, be deemed to be a single taxpayer, and shall be jointly and severally liable for the full payment of the tax without regard to the relative shares or interests in the land.

15.   Keeping of accounts

The account of every taxpayer as to the tax payable in his representative capacity shall be kept separate and distinct from the account of the tax payable in his individual right; and the account of taxpayers jointly entitled to, or interested, whether as partners or otherwise, in the same land, as regards the tax payable in respect of such land, shall be kept jointly and separate and distinct from the sole accounts of such taxpayers.

16.   Charging of agents and trustees

(1)  [Section 16 Subsection (1) substituted by No. 67 of 1996, s. 11, Applied:01 Jul 1997] A trustee of any land subject to land tax under this Act is to be assessed in respect of that land.

(2)  [Section 16 Subsection (2) amended by No. 67 of 1996, s. 11, Applied:01 Jul 1997] Every such trustee shall, subject to the provisions of subsection (6) , be chargeable with the land tax payable in respect of such land in the same manner as if the land were his own; but he shall be assessed in respect thereof in a representative character only, and the provisions of section fifteen shall apply, and each such assessment shall be kept separate and distinct from the individual assessment, if any, of such trustee.

(2A)  [Section 16 Subsection (2A) inserted by No. 67 of 1996, s. 11, Applied:01 Jul 1997] If the owner of any land subject to land tax under this Act is permanently or temporarily absent from this State and is represented by an agent, that agent is liable for any land tax assessed in respect of the land and the Commissioner may take action against the agent to recover any unpaid land tax in respect of that land.

(3)  Every such agent or trustee shall be answerable for the doing of all such acts, matters, or things as would be required to be done by the owner.

(4)  Every such agent or trustee shall be subject to the same penalties or liability for any neglect, refusal, or default in respect of the obligations and requirements of this Act as the persons whom such agent or trustee represents would be subject to.

(5)  Every such agent or trustee is hereby authorized to recover from any person for whom, or on whose behalf, he is compellable to pay and has paid land tax, the amount of the land tax so paid by him, or to retain out of any money which shall come to him in his representative character so much as shall be sufficient to pay such land tax.

(6)  Such agent or trustee shall not be personally liable for land tax to any further or greater extent than to the amount of such funds or securities for money as are or may be in his hands in his representative character or as trustee, or of which he shall have the controlling power, after receiving notice of the assessment of such tax.

16A.   Land tax on land repossessed

[Section 16A Inserted by 9 Geo. VI No. 18, s. 3 ][Section 16A Subsection (1) amended by No. 46 of 1991, s. 4 and Sched. 2 ][Section 16A Subsection (1) amended by No. 77 of 1995, s. 3 and Sched. 1 ][Section 16A Subsection (2) amended by No. 46 of 1991, s. 4 and Sched. 2 ][Section 16A Subsection (2) amended by No. 77 of 1995, s. 3 and Sched. 1 ]

(1)  [Section 16A Subsection (1) amended by No. 78 of 1982, s. 9 and Sched. 1 ]Notwithstanding anything contained in this Act, or in the Land Valuation Act 1971 , no land tax shall, subject to this section, be payable in respect of any land of which the Tasmanian Development Authority has taken possession as mortgagee, or in pursuance of any powers conferred on Tasmania Development and Resources by the Tasmanian Development Act 1983 or the Homes Act 1935 .

(2)  [Section 16A Subsection (2) amended by No. 78 of 1982, s. 9 and Sched. 1 ] Subsection (1) shall not affect the liability of the owner of any land, of which Tasmania Development and Resources has so taken possession, to pay land tax in respect thereof up to the thirty-first day of December in the year during which possession was so taken, and the Commissioner shall have power to recover from such owner any land tax remaining owing in respect of such land at that date, but such tax shall not be, after the date on which possession was so taken, a charge upon the land or be recoverable by any process of distress against the land.

17.   Power of Commissioner to require information

(1)  The Commissioner may, if he thinks fit, at any time require any taxpayer to furnish any information in writing or by verbal communication, and to produce for examination by the Commissioner, or by any person appointed by him for that purpose, at such time and place as may be appointed by the Commissioner, any deeds, instruments, or other documents or writings in his custody or under his control as may be necessary to enable the Commissioner to determine the rate at which such taxpayer is liable to taxation under this Act in respect of any land.

(2)  If it appears to the Commissioner that any person has become the owner of land and no notice relating thereto has been given under section thirteen A , the Commissioner may by notice require that person to state his interest in the land by means of a statutory declaration to be lodged with the Commissioner within fourteen days after the service upon that person of the notice and the Commissioner shall in that notice inform that person that he is said to be the owner and of the relevant effect of section one hundred and ninety-five .

(3)  [Section 17 Subsection (3) inserted by No. 67 of 1996, s. 12 ]A person must not, in giving any information under this section –

(a) make a statement knowing it to be false or misleading; or

(b) omit any matter from a statement knowing that without that matter the statement is misleading.

Penalty:  In the case of –

(a) a body corporate, a fine not exceeding 100 penalty units; or

(b) a natural person, a fine not exceeding 20 penalty units.

18.   Liability of taxpayer

Every taxpayer shall be liable to the Commissioner for the full payment of the whole amount of the tax.

18A.   Partial exemption from land tax of land owned by certain clubs, &c.

(1)  Notwithstanding anything contained elsewhere in this Act, where the Governor, on the report of the Commissioner, is satisfied that any land –

(a) is owned by a club or body of persons and is used primarily and principally for the purposes of cricket, football, golf, tennis, bowls, or other athletic sports or exercises and is not used for the pecuniary profit of the members of that club or body; or

(b) is owned by a club or body of persons formed for the purpose of promoting or controlling horse-racing, trotting-racing, dog-racing, or the racing of motor vehicles and is used primarily and principally for the purposes of horse-racing, trotting-racing, dog-racing, or the racing of motor vehicles –

the Governor may, on the recommendation of the Commissioner, grant a reduction in the rate of land tax payable in respect of that land, and, so long as the reduction remains in force, the land tax payable in respect of that land is payable at the rate of four-tenths of a cent for every dollar of the assessed land value of that land, or such lesser rate, if any, as Parliament may declare.

(2)  A reduction granted in accordance with subsection (1) of this section remains in force until revoked by the Governor.

(3)  If at any time a club or body of persons mentioned in subsection (1) of this section sells or otherwise disposes of any part of any land owned by the club or body of persons in respect of which a reduction in the rate of land tax has been granted in accordance with that subsection for any purpose other than for the purposes of public recreation or amusement, the Governor may revoke the reduction, and thereupon the club or body of persons is liable, on demand, to pay to the Commissioner an amount equal to the difference between –

(a) the total amount paid by way of land tax, pursuant to this section, in respect of the land to which the reduction related during the period during which the reduction was in force; and

(b) the total amount of land tax (as assessed by the Commissioner) that, but for this section, would have been payable in respect of that land during that period –

but so that no such amount is payable in respect of any period in excess of ten years.

(4)  An amount that becomes payable to the Commissioner by virtue of subsection (3) of this section is payable as if it were an amount due by way of land tax, and the provisions of this Act relating to the collection and recovery of land tax apply thereto accordingly.

(5)  Where the Governor in pursuance of this section grants a reduction in the rate of land tax payable in respect of any land, or revokes a reduction so granted, the Commissioner shall give notice in writing thereof to the club or body of persons affected thereby.

19.   Distribution of burden

In any case where two or more persons are the owners of land as joint tenants, tenants in common, co-partners, co-trustees, or on a joint account, the burden of the tax in respect of such land shall, as between such persons, be distributed amongst them in the relative proportions of the value of their shares or interests in the land taxed, and every taxpayer who shall have paid any land tax shall be entitled to recover from every other taxpayer in respect of the land tax on the same land, a proper proportion of the amount paid.

20.   Remedy against other persons where taxpayer makes default

(1)  Where a taxpayer has made default in the payment of land tax, and such default continues, the lessee or occupier of the land in respect of which the tax is payable shall be responsible for the payment of the tax, and it may be recovered from him as if he were the defaulting taxpayer, or from the taxpayer.

(2)  All payments made under this section by a lessee or occupier shall be deemed to be made on behalf of the defaulting taxpayer.

21.   Right of person other than owner, &c., in possession under lease to deduct proportion of tax from rent

Where any person (other than the owner of any land, or the attorney or agent of the owner) in possession of such land under any lease or other instrument conferring possession of such land for any term not less than ten years, shall be liable to the payment of any rent or other periodical payment less than the annual rent that could be reasonably demanded for the use and occupation of the land, and shall have paid the land tax in respect of such land, he shall be entitled to recover from the person entitled to receive such rent or other periodical payment a sum which shall bear the same proportion to the whole amount of the tax as such rent or other payment payable by such person bears to the annual rent which a tenant might be reasonably expected to pay for such land, as if such sum were money paid to the use of such person entitled, or such sum may be deducted from or set off against the rent or other payment then due or thereafter to become due.

21A.   Apportioned assessed land value

[Section 21A Inserted by No. 39 of 1992, s. 16 ]

(1)  The apportioned assessed land value in respect of principal residence land where only part of the principal residence is used for domestic purposes is, in relation to that part, determined by multiplying the assessed land value of the principal residence land by the proportion of the floor area of the principal residence which is used for domestic purposes.

(2)  The apportioned assessed land value in respect of principal residence land where part of the principal residence is not used for domestic purposes is, in relation to that part, determined by deducting the apportioned assessed land value in respect of the part used for domestic purposes from the assessed land value of the principal residence land.

(3)  The apportioned assessed land value in respect of principal residence land where only part of the land is used for domestic purposes is, in relation to that part, determined by multiplying the assessed land value of the principal residence land by the proportion of the land area used for domestic purposes.

(4)  The apportioned assessed land value in respect of principal residence land in relation to the part of the land not used for domestic purposes is determined by deducting the apportioned assessed land value in respect of the part used for domestic purposes from the assessed land value of the principal residence land.

21B.   Apportioned assessed land value of flat in home-unit company

[Section 21B Inserted by No. 39 of 1992, s. 16 ]The apportioned assessed land value in respect of a flat in a home-unit company is determined in accordance with the following formula:

where –

A is the apportioned assessed land value; and

F is the floor area of the flat; and

T is the total floor area of all the flats constructed on the home-unit company land; and

V is the assessed land value of the home-unit company land.

21C.   Retirement villages

[Section 21C Inserted by No. 39 of 1992, s. 16 ]If retirement village land is partly used for residential purposes and partly for other purposes, the Commissioner is to request the Valuer-General to supply separate valuations in respect of each of those parts.

21D.   Apportioned assessed land value of flat in retirement village

[Section 21D Inserted by No. 39 of 1992, s. 16 ]The apportioned assessed land value in respect of a flat in a retirement village is determined in accordance with the following formula:

where –

A is the apportioned assessed land value; and

F is the floor area of the flat; and

T is the total floor area of all the flats constructed on the retirement village land; and

V is the assessed land value of the part of the retirement village land used for residential purposes.

21DA.   Apportioned assessed land value of co-operative housing land

[Section 21DA Inserted by No. 82 of 1995, s. 14 ]

(1)  If co-operative housing land is used partly for residential purposes and partly for other purposes, the Commissioner is to request the Valuer-General to supply separate valuations in respect of each of those parts.

(2)  The apportioned assessed land value in respect of any land forming part of co-operative housing land is to be determined in accordance with the following formula:

where –

A is the apportioned assessed land value; and

F is the area of the land used for residential purposes; and

T is the total area of total co-operative housing land; and

V is the assessed land value of the part of the co-operative housing land used for residential purposes.

21E.   Onus of establishing facts

[Section 21E Inserted by No. 39 of 1992, s. 16 ]

(1)  [Section 21E Subsection (1) amended by No. 82 of 1995, s. 15 ]The onus is on the owner to establish to the satisfaction of the Commissioner any of the following facts:

(a) that land is principal residence land, home-unit company land, co-operative housing land or retirement village land;

(b) that all or any part of principal residence land is used for domestic purposes;

(c) that a residence is a principal residence;

(d) that all or any part of a principal residence is used for domestic purposes.

(2)  Until the owner establishes a fact under subsection (1) , the Commissioner may assess land tax payable as the Commissioner thinks appropriate.

21F.   Related companies

[Section 21F Inserted by No. 67 of 1996, s. 13 ]

(1)  For the purposes of this section, 2 companies are related to each other –

(a) if the same person has, or the same persons have together, a controlling interest in both companies; or

(b) if one of those companies is related to a company to which the other is related; or

(c) if the companies are related bodies corporate for the purposes of the Corporations Law .

(2)  For the purposes of this section, 2 companies are also related to each other if –

(a) more than one-half of the issued share capital of one of those companies is held by the other company or its shareholders or by both the other company and its shareholders together; and

(b) the proportion of the issued share capital of that other company held by shareholders of the first company is more than the difference between one-half and the proportion of the issued share capital of the first company held by the other company.

(3)  For the purposes of subsection (1) –

(a) companies may be related to each other notwithstanding that they do not own land in Tasmania; and

(b) a reference in that subsection to the issued share capital of a company does not include a reference to any part of that issued share capital that confers no right to participate beyond a specified amount in a distribution of either profits or capital; and

(c) a person has, or several persons have together, a controlling interest in a company if –

(i) that person or those persons acting together can control the composition of the board of directors of the company; or

(ii) that person is, or those persons acting together are, in a position to cast or control the casting of, more than half of the maximum number of votes that might be cast at a general meeting of the company; or

(iii) that person holds, or those persons acting together hold, more than one-half of the issued share capital of the company; and

(d) subject to paragraphs (e) and (f) , any shares held or power exercisable by any person as a trustee or nominee for any other person are to be treated as also held or exercisable by that other person; and

(e) any shares held or power exercisable by a person by virtue of the provisions of any debentures of another company, or of a trust deed for securing any issue of any such debentures, are to be disregarded; and

(f) any shares held or power exercisable by, or by a nominee for, any person otherwise than as mentioned in paragraph (e) , are to be taken as not held or exercisable by that person if –

(i) the ordinary business of that person includes the lending of money; and

(ii) the shares are held or the power is exercisable only by way of security given for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money, unless the transaction is entered into with a person associated with that person within the meaning of the Corporations Law ; and

(g) the composition of a company's board of directors is taken to be controlled by a person if that person, by the exercise of some power exercisable whether with or without the consent or concurrence of any other person, may appoint or remove all or a majority of the directors.

(4)  If 2 or more companies related to each other are liable for land tax, they may nominate one of their number to be the one from whom the Commissioner may seek payment of land tax.

(5)  A nomination is valid even though one or more of the related companies did not join in making the nomination.

(6)  The Commissioner is to nominate one of the companies referred to in subsection (4) to be the company from whom the Commissioner may seek payment of the land tax payable by those companies if –

(a) a nomination is not made under subsection (4) ; or

(b) a nomination is made but the company fails to pay the land tax when required to do so under section 170 .

(7)  If 2 or more companies related to each other are liable for land tax, nothing in this section affects any right of contribution or indemnity between the companies.

(8)  This Division applies to a unit trust scheme as if –

(a) the unit trust scheme were a corporation; and

(b) a unit in a unit trust scheme were a share in the corporation; and

(c) the acquisition of units in a unit trust scheme were the acquisition of shares in the corporation; and

(d) a reference to the memorandum and articles of association of a corporation were a reference to the constituent documents of a unit trust scheme; and

(e) a reference to a winding-up of a corporation were a reference to a termination of a unit trust scheme.

(9)  If 2 or more companies related to each other are liable for land tax, those companies are jointly and severally liable for the full payment of that land tax.

PART IV - THE INCOME TAX

Division I - General

22.   Income tax

(1)  Subject to this Act, income tax, at the rates declared by Parliament, shall be levied and paid for the financial year commencing on the first day of July 1936 and for each financial year thereafter, upon the taxable income arising, accruing, received in, or derived from this State during the year of income by any person from all sources whether in or out of the State.

(2)  Where the income of a taxpayer is derived partly from personal exertion and partly from property –

(a) the rate of tax to be paid by him shall be based on the aggregate of such income as if the same were all derived form the same source;

(b) the tax shall be payable at the rate so determined upon the amount of his income from each of such sources respectively as if his aggregate income had been derived from that source;

(c) any deduction to which he may be entitled under section fifty-three shall be made from his income from personal exertion, but if the amount of the deduction exceeds the income from personal exertion the excess shall be deducted from his income from property.

23.   Accounting period

Any person may, with the leave of the Commissioner, adopt an accounting period being the twelve months ending on some date other than the thirtieth day of June. His accounting period in each succeeding year shall end on the corresponding date of that year, unless, with the leave of the Commissioner, some other date is adopted.

24.   Money credited, re-invested &c., to be income

Income shall be deemed to have been derived by a person although it is not actually paid over to him but is re-invested, accumulated, capitalized, carried to any reserve, sinking fund, or insurance fund, howeverdesignated, or otherwise dealt with on his behalf or as he directs.

25.   Income to be expressed in Australian currency

For all the purposes of this Act income wherever derived, any expense wherever incurred, the value of any asset wherever situate, and any amount involved in any calculation, shall be expressed in terms of Australian currency, and, for this purpose, the rates of exchange to be used shall be, respectively, the rates at which exchange could have been effected by telegraphic transfer at the dates when the income was derived, or the expense was incurred, or at which the asset is to be valued, or at which the amount is to be ascertained.

26.   Where consideration not in cash

Where, upon any transaction, any consideration is paid or given otherwise than in cash, the money value of that consideration shall, for the purposes of this Act, be deemed to have been paid or given.

27.   Income arising from past transactions

Where any income is received in the year of income as a result of a transaction entered into prior to the enactment of this section, and that income would have been assessable income under this Act if the former provisions of this Part had continued in force and had applied to the assessment of the income derived in the year of income, that income shall be assessable under this Part notwithstanding that the transaction was entered into prior to such enactment.

28.   Exemptions

[Section 28 Amended by 2 Geo. VI No. 56, s. 2 ][Section 28 Amended by 4 Geo. VI No. 15, s. 3 ][Section 28 Amended by 5 Geo. VI No. 43, s. 2 ][Section 28 Amended by 6 Geo. VI No. 4, s. 2 ][Section 28 Amended by No. 9 of 1982, s. 7 and Sched. 10 ][Section 28 Amended by No. 46 of 1991, s. 4 and Sched. 2 ][Section 28 Amended by No. 68 of 1994, s. 3 and Sched. 1 ][Section 28 Amended by No. 77 of 1995, s. 3 and Sched. 1 ]The following income shall be exempt from income tax:

(a) The revenues of marine boards and of municipal corporations, water trusts, and statutory local bodies receiving revenue of any kind for the purposes of, or in relation to, local self-government;

(b) The incomes of companies (if registered under and in pursuance of section 66 of the Companies (Tasmania) Code , societies, or public bodies, or public trusts –

(i) not carrying on business; and

(ii) not being engaged in any trade, adventure, or concern for the purposes of profit or gain to be divided amongst the shareholders or members thereof;

(c) [Section 28 Amended by No. 66 of 1997, Sched. 1, Applied:01 Feb 1998] The funds and incomes of any trade union;

(ca) [Section 28 Amended by No. 66 of 1997, Sched. 1, Applied:01 Feb 1998] The funds and incomes of any society within the meaning of the Friendly Societies (Tasmania) Code;

(d) [Section 28 Amended by No. 27 of 2000, s. 3, Applied:01 Feb 1997] The profits of Tasmania Development and Resources;

(e) The Police Provident Fund, the Closer Settlement Fund, and any fund exempted from taxation by the statute under which the fund is created;

(f) the official salary of, and the income derived from sources outside Tasmania by, the Governor of this State;

(g) The income arising or accruing to any person from debentures, inscribed stock, or Treasury bills issued or guaranteed by the Government of Tasmania and redeemable elsewhere than in Tasmania;

(h) The salaries of the Agent-General and of his officers so far as such salaries are derived from this State;

(i) Every pension and benefits under the Repatriation Act 1920-1959 , or the Seamen's War Pensions and Allowances Act 1940-1959 of the Commonwealth;

(j) The income of a provident, benefit, or superannuation fund established for the benefit of employees in any business or class of business, if the Commissioner is satisfied that the particular fund is being applied to the purposes for which it was established;

(k) Every old-age and invalid pension granted by the Commonwealth and all pensions paid to, or in respect of an officer of the State or Commonwealth Service in respect of injury received by such officer in the execution of his duty as such officer;

(l) Every pension granted under any Imperial Act or any Act of the legislature of any British possession or territory, in respect of the war which commenced on the fourth day of August 1914, to any person who served in such war in the naval, military, or air forces of His Majesty, and who was disabled in consequence of such war, or to a dependant of any person who served as aforesaid and was killed while in the said service, or died from injuries received or disease contracted by him in the course of such service;

(m) Income derived by a bona fide prospector from the sale, transfer, or assignment by him of his rights to mine for gold or minerals in this State. For the purposes of this paragraph

bona fide prospector means a person, other than a company, who has personally carried out the whole or major part of the field work of prospecting for gold or minerals in the particular area, or who has contributed to the expenditure incurred in the work of prospecting and development in that area, and includes a company which has itself carried out the whole or major part of such work. This paragraph does not apply to coal-mining;

(n) Interest paid outside Australia to a non-resident of Australia on debentures issued outside Australia by a company;

(o) The income received by way of periodical payments in the nature of alimony or maintenance by a woman from her husband or former husband; but this exemption shall not extend to any income received from any property of which the husband or former husband has divested himself for the purpose of meeting his obligation to pay any such alimony or maintenance; or to any income which he has diverted from himself for that purpose and in respect of which he would otherwise have been taxable;

(p) The income derived by a resident of any territory or island in the Pacific Ocean, other than New Zealand, which is governed, controlled, or held under mandate by the government of any part of the British Empire, or by a condominium in which any part of the British Empire is concerned, from the sale in this State by or on behalf of that person of produce of the territory or island of which he is a resident;

(q) In the case of any person enlisted in or appointed to the Defence Force the pay and allowances earned by him as a member of that force –

(i) out of Australia; or

(ii) in Australia –

(A) if within twelve months after the close of the year of income he embarks for service out of Australia or serves in a sea-going ship (not being a depot or a ship principally employed on or in connection with port or harbour defence) and during the period of twelve months immediately following the date on which he embarks or commences to serve, he is for any periods of, or aggregating, not less than six months on service out of Australia or borne in any such ship as aforesaid; or if owing to illness or injury he returns to Australia, or is discharged from such ship; or

(B) until the expiration of the period of three months immediately following his resumption of duty in Australia if his pay and allowances have been exempted under sub-subparagraph (A) of this subparagraph –

but no exemption shall be allowed under this subparagraph of this paragraph in respect of any pay or allowances earned by a member of the Defence Force who is not appointed as a member of a body, contingent, or detachment of that force for service out of Australia; or if the same is earned by such member prior to the date of his enlistment or appointment to that force for service beyond the limits of the Commonwealth. In this paragraph Australia means the six States of Australia and the Northern Territory; and the Commonwealth includes any territory of the Commonwealth;

(r) The income derived from sources outside this State by a company incorporated elsewhere than in this State and not being the proceeds of or derived from any business carried on by such company in this State;

(s) Payments under the Child Support (Assessment) Act 1989 of the Commonwealth or any Act amending or replacing that Act;

(t) In the case of a member of the Defence Force, payments made by way of dependants' allowances;

(u) The pay and allowances of any member of any British Force or the Forces of any ally of His Majesty stationed in Australia for war purposes.

29.   Limitation of exemption

(1)  Where any income is exempt from income tax, the exemption shall be limited to the specified or original recipient of the income, and shall not extend to persons receiving payments from that recipient, although the payments may be made wholly or in part out of that income.

(2)  The exemption of any income from income tax shall not exempt any person from furnishing any return or information which is required by the Commissioner, or from including in his return such information as is prescribed, or as is required by the Commissioner.

Division II - Income

Subdivision A - Assessable income generally

30.   Gross income from certain sources

[Section 30 Amended by 25 Geo. V No. 78 ][Section 30 Amended by 3 Geo. VI No. 25, s. 2 ][Section 30 Subsection (1) amended by 6 Geo. VI No. 4, s. 2 ][Section 30 Subsection (1) amended by No. 68 of 1994, s. 3 and Sched. 1 ]

(1)  [Section 30 Subsection (1) amended by 4 Geo. VI No. 15, s. 3 ]The assessable income of a taxpayer shall include –

(a) where the taxpayer is –

(i) a resident – the gross income arising, accruing, or derived directly or indirectly from all sources whether in or out of the State, or received in the State from any sources whatever; and

(ii) a non-resident – the gross income derived directly or indirectly from all sources in the State –

which is not exempt income;

(b) interest on money secured by mortgage of any property to the following extent:

(i) Where the whole of the property is in the State – the whole of that interest;

(ii) Where some only of the property is in the State – the whole of that interest if the taxpayer is a resident and income tax (other than Commonwealth income tax) is not paid out of the State on any part of that interest, and in any other case, a proportionate part of that interest; and

(iii) Where the whole of the property is out of the State, but is in Australia – none of that interest;

(c) interest on money lodged, or in respect of debts situated, in the territory for the Seat of Government of the Commonwealth, and income arising from other investments in that territory, if the taxpayer deriving that interest or income is a resident;

(d) profit arising from the sale by the taxpayer of any property acquired by him for the purpose of profit-making by sale, or from the carrying on or carrying out of any profit-making undertaking or scheme;

(e) beneficial interests in income derived under any will, settlement, deed of gift, or instrument of trust;

(f) the amount of any annuity, excluding, in the case of an annuity which has been purchased, that part of the annuity which represents the purchase price, to the extent to which that price has not been allowed or is not allowable as a deduction in assessments for income tax under this Act;

(g) five per centum of the capital amount of any allowance, gratuity, or compensation where that amount is paid in a lump sum in consequence of retirement from, or the termination of, any office or employment, and whether so paid voluntarily, by agreement, or by compulsion of law: Provided that this paragraph shall not apply in respect of any amount paid or credited by a private company which, under any provision of this Act, is deemed to be a dividend paid to the recipient;

(h) the value to the taxpayer of all allowances, gratuities, compensations, benefits, bonuses, and premiums allowed, given, or granted to him in respect of, or for or in relation directly or indirectly to, any employment of or services rendered by him, whether so allowed, given, or granted in money, goods, land, meals, sustenance, the use of premises or quarters, or otherwise: Provided that this paragraph shall not apply to any allowance, gratuity, or compensation which is included in paragraph (g) hereof, or which, under any provision of this Act, is deemed to be a dividend paid to the recipient; but this paragraph shall apply to all allowances given or granted to any member of the Defence Force in respect of his service as such member;

(i) any amount received as or by way of royalty in respect of the use or performance in this State of any property, right, or production in relation to which royalty is payable;

(j) any bounty or subsidy received in, or in relation to, the carrying on of a business, and such bounty or subsidy shall be deemed to be part of the proceeds of that business;

(k) the amount of any fee or commission received for procuring a loan of money;

(l) any amount received as or by way of bonus other than a reversionary bonus on a policy of life assurance;

(m) any amount received by way of insurance or indemnity for or in respect of any loss –

(i) of trading stock which would have been taken into account in computing taxable income; or

(ii) of profit or income which would have been assessable income –

if the loss had not occurred, and any amount so received for or in respect of any loss or outgoing which is an allowable deduction;

(n) the amount or value of any consideration received in connection with a right to remove standing timber from land less the amount, if any, by which the value of the land is or will be diminished by the removal of the timber;

(o) the amount of salary, wages, or remuneration derived whilst temporarily engaged on duties out of the State by a taxpayer who ordinarily resides in the State: Provided that, where the taxpayer has paid in any place outside the State, income tax (other than Commonwealth income tax) in respect of the whole or part of that salary, wages, or remuneration, he shall be entitled to a rebate in his assessment of an amount equal either to the tax so paid or to the proportion of the tax payable under this Act which is attributable to that salary, wages, or other remuneration, whichever is the less;

(p) any gains or profits arising or accruing to a taxpayer, whether or not in connection with any business carried on by him, on the sale by such taxpayer during the year of income of any estate or interest (other than a leasehold estate or interest) in land, including the goodwill of any business carried on on the land, where such estate or interest was bought by him during such year or the three years next prior thereto: Provided that, if a sale is subsequently cancelled, an allowance may be made to the taxpayer in the year in which the cancellation takes place, or a refund may be made of any tax overcharged in connection with the profit made or supposed to be made;

(q) the value of anything withdrawn by any person from the salable stock or produce of any business carried on by him, and applied by him to his personal, family, or domestic use, or other personal benefit or advantage;

(r) all moneys in respect of which the taxpayer has been allowed or is claiming a deduction under section forty-three or paragraph (b) of subsection (1) of section fifty-one, and which, during the year of income, revert to the taxpayer.

(1A)  Paragraphs (g) and (h) of subsection (1) hereof shall not extend to or include amounts received by way of compensation under the Workers' (Occupational Diseases) Relief Fund Act 1954 , or in respect of permanent injury sustained by the taxpayer.

(2)  For the purposes of paragraph (o) of subsection (1) hereof,

income tax means such tax imposed as income tax as in the opinion of the Commissioner is reasonably comparable in its nature to the tax assessed under this Act.

(3)  All amounts included under paragraphs (p) and (q) of subsection (1) hereof shall be deemed to be income arising from personal exertion.

(4)  Where during any year of income sales to which paragraph (p) of subsection (1) hereof applies have been made, and a profit has accrued upon one or more of such sales, and a loss has accrued upon another or others of such sales, the aggregate loss may be set off against the aggregate profit; but, if such aggregate loss exceeds such aggregate profit, the balance of loss shall not be deducted from any other incomeof the taxpayer.

Subdivision B - Trading stock

31.   Valuation of trading stock for purpose of computing taxable income

(1)  Where a taxpayer carries on any business, the value, ascertained under this subdivision, of all trading stock on hand at the beginning of the year of income, and of all trading stock on hand at the end of that year, shall be taken into account in ascertaining whether or not the taxpayer has a taxable income.

(2)  Where the value of all trading stock on hand at the end of the year of income exceeds the value of all trading stock on hand at the beginning of that year, the assessable income of the taxpayer shall include the amount of the excess.

(3)  Where the value of all trading stock on hand at the beginning of the year of income exceeds the value of all trading stock on hand at the end of that year, the amount of the excess shall be an allowable deduction.

(4)  The value of livestock and of each article of other trading stock to be taken into account at the beginning of the year of income shall be its value as ascertained under this Act at the end of the year immediately preceding the year of income.

(5)  Where the value of livestock at the beginning of the year of income, as ascertained for the purpose of assessment of income tax under the law of the Commonwealth, differs from its corresponding value as ascertained under subsection (4) hereof, and it appears to the Commissioner that, if those values were equal, the corresponding values would remain equal in subsequent years, the taxpayer may, subject to this section, take his livestock into account at the beginning of the year of income at a value equal to its corresponding value under the law of the Commonwealth.

(6)  Where the value at which that livestock is taken into account at the beginning of the year of income exceeds the value as ascertained under subsection (4) hereof, amounts in the aggregate equal to the excess shall be included in the assessable income of the taxpayer of one or more of the years being the year of income and the four years next succeeding that year.

(7)  Where the value of livestock as ascertained under subsection (4) hereof exceeds its value as taken into account at the beginning of the year of income, amounts in the aggregate equal to the excess shall be deducted from the assessable income of the taxpayer of one or more of the years being the year of income and the four years next succeeding that year.

(8)  The amounts referred to in subsections (6) and (7) of this section and the years in respect of which they are to be taken into account shall be such amounts and years as are agreed upon by the taxpayer and the Commissioner, and, unless and until those amounts and years are so agreed upon, subsections (5) , (6) and (7) of this section shall not apply to the assessment of that taxpayer.

(9)  The value of each article of trading stock, not being livestock, to be taken into account at the end of the year of income shall be, at the option of the taxpayer, its cost price or market selling value or the price at which it can be replaced.

(10)  The value of livestock to be taken into account at the end of the year of income shall be, at the option of the taxpayer, its cost price or market selling value, and, where a taxpayer does not exercise his option within the time and in the manner prescribed, the value so to be taken into account shall be the cost price. Provided that, where a taxpayer satisfies the Commissioner that there are circumstances which justify the adoption by him of some value other than cost price or market selling value for the whole or part of his livestock, he may, with the leave of the Commissioner, adopt that other value.

(11)  Except as provided by subsection (13) hereof, a taxpayer shall not, except with the leave of the Commissioner, adopt a method of ascertaining the value of his livestock brought into account at the end of the year of income different from the method by which the value of his livestock was ascertained when it was last brought into account at the end of a previous year under this Act.

(12)  The cost price per head of natural increase of any class of livestock of a taxpayer shall be –

(a) where the cost price of natural increase of that class has been previously taken into account under this section by the taxpayer – the cost price per head at which natural increase of that class was last taken into account unless, with the leave of the Commissioner, the taxpayer selects another cost price; and

(b) where the cost price of natural increase of that class has not been previously taken into account under this section by the taxpayer – the cost price selected by him within the limits prescribed in respect of livestock of that class –

and, where a taxpayer does not so select within the time and in the manner prescribed, he shall be deemed to have selected, as the cost price, the lower of the prescribed limits.

(13)  Where prior to the enactment of this section a taxpayer elected to omit from the account of his stock-in-trade the value of natural increase of his livestock, the value of the natural increase omitted in pursuance of that election and on hand at the beginning of the first year to the income of which this section applies, shall be taken into account as trading stock on hand at the beginning of that year.

(14)  The value at which natural increase shall be taken into account as provided by subsection (13) hereof shall be –

(a) where the taxpayer had exercised under this Act an option to value livestock at market selling price – the market selling price as at the beginning of the year;

(b) where the taxpayer had exercised under this Act an option to value livestock at cost price – a value per head selected by the taxpayer, within the limits prescribed, as cost price for natural increase under this Act, by regulations in force immediately preceding the commencement of this section, or where he does not so select within the time and in the manner prescribed – the lower of those prescribed limits.

(15)  The value per head ascertained as the cost price of natural increase under paragraph (b) of subsection (14) hereof shall, unless altered with the leave of the Commissioner, apply also to natural increase of the first year of income to which this section applies and of all subsequent years, but such value in respect of such first and subsequent years shall not be less than the lower of the limits prescribed under paragraph (b) of subsection (12) hereof.

32.   Disposal of assets of a business

(1)  Subject to this section, where the whole or any part of the assets of a business carried on by a taxpayer is disposed of by sale or otherwise howsoever, whether for the purpose of putting an end to the business or any part thereof or not, and the assets disposed of include any property being trading stock, standing or growing crops, or crop-stools, the value of that property shall be included in his assessable income, and any person acquiring that property shall be deemed to have purchased it at the amount of that value.

(2)  Where a taxpayer, after the beginning of the first year to the assessment of the income of which this section applies, sells the whole of a business carried on by him –

(a) for the purpose of putting an end to that business; or

(b) in consequence of the acquisition or resumption of land, used by him for that business, under the provisions of any Act or Commonwealth Actwhich contains provisions for the compulsory acquisition or resumption of land –

the value of any livestock included in the sale, being natural increase bred by him which was on hand at the beginning of that first year, and which was, in the opinion of the Commissioner, ordinarily used by him in that business for breeding purposes, shall not be included in his assessable income, and no deduction shall be allowed to him in respect of any such livestock, and no such livestock shall be taken into account in computing his taxable income.

(3)  For the purpose of this section, the value of any property or livestock shall be –

(a) the market value of the property or livestock on the day of its disposal; or

(b) if in the opinion of the Commissioner there is insufficient evidence of the market value on that day, the value which in his opinion is fair and reasonable.

33.   Devolution on death

(1)  Where the assets of a business carried on by a taxpayer devolve by reason of his death, and those assets include any property being trading stock, standing or growing crops, or crop-stools, the value of that property shall be included in the assessable income derived by the deceased up to the date of his death, and the person upon whom the property devolves shall be deemed to have purchased it at that value.

(2)  For the purpose of subsection (1) hereof the value of the property so to be included shall be the amount which would have been included in respect of that property in the assessable income of the deceased person, under section thirty-two , if he had not died but had disposed of the property on the day of his death for the purpose of putting an end to the whole of a business carried on by him. Provided that, if the trustee of the deceased and all the beneficiaries, if any, who are liable to be assessed in respect of the income of the business, or of a share in that income, unanimously so agree and give notice of their agreement to the Commissioner at the time and in the manner prescribed, that value shall be the value, if any, at which that property would have been taken into account in an assessment of the deceased person at the date of his death if he had not died, but an assessment had been made in respect of the income derived by him up to that date.

Subdivision C - Business carried on partly in and partly out of the State

34.   Provisions as to income derived from business partly within and partly without the State

(1)  Where a person sells goods by means of anything done by himself when in the State, or by means of an agent or representative in the State, and those goods are in the State or are to be brought into the State for the purpose, or in pursuance or in consequence of, such sale, he shall for the purposes of this Act be deemed to have sold them in the State.

(2)  Where a person sells goods by means of anything done by himself when out of the State, or by means of an agent or representative out of the State, and those goods are out of the State or are to be taken out of the State for the purpose, or in pursuance, or in consequence of, such sale, he shall be deemed to have sold them out of the State.

(3)  A sale is deemed to be made by means of a person or of something done when such person or thing done is instrumental in bringing about the sale.

(4)  Where goods manufactured out of Australia are imported into and sold in this State by the manufacturer of the goods, the profit deemed to be derived in this State from the sale shall be ascertained by deducting from the sale price of the goods the actual cost of production or manufacture of the goods and the expenses incurred in transporting them to, and selling them in, this State. In any case where it appears to the Commissioner to be difficult to ascertain such actual cost, he may adopt as the cost any amount which he considers reasonable, arrived at in such manner and by such means as he considers just.

(5)  Where goods are imported from outside Australia into and sold in this State by a person not being the manufacturer of the goods, the profit deemed to be derived in this State from the sale shall be ascertained by deducting from the sale price of the goods their purchase price and the allowable expenses incurred in transporting them to and selling them in this State.

(6)  Where the profit cannot be ascertained under either of subsections (4) and (5) hereof to the satisfaction of the Commissioner, it shall be deemed to be such amount as the Commissioner determines.

(7)  Notwithstanding anything contained in this section, the following provisions shall, in the cases therein mentioned, apply to the profit derived from the sale anywhere in Australia of goods which are the produce of a business of primary production or of coal-mining carried on in Australia:

(a) Where the goods are produced in the State and are sold by or on behalf of a person carrying on the business of which the goods are the produce, the profit shall be deemed to be income derived in the State;

(b) Where the goods are produced out of the State and are sold by or on behalf of a person carrying on the business of which the goods are the produce, the profit shall be deemed to be income derived out of the State.

(8)  The amount of any profit referred to in this section shall be ascertained by adding to the proceeds of sale any bounty or subsidy received in respect of the goods sold, and deducting therefrom all losses and outgoings incurred in deriving the profit, which would have been allowable deductions under this Act in respect of those proceeds if those proceeds had been included in the assessable income of the person deriving the profit, and those losses and outgoings had been wholly incurred in the State.

(9)  The assessable income of a taxpayer shall include any income derived in the year of income by him which under the provisions of this section is deemed to be derived in the State, and no amount which is taken into account under subsections (4) , (5) , and (8) hereof in ascertaining the amount of any profit derived by him shall be an allowable deduction.

(10)  Where, in any case not specified in this section, a question arises, for any reason whatever, whether any, and, if so, what part of any, income or profit is derived in the State, the question shall be determined in accordance with the regulations, or if there is no regulation applying to the case, shall be determined by the Commissioner.

(11)  Where a non-resident person carries on business with a resident person, and it appears to the Commissioner that, owing to the close connection between the resident person and the non-resident person, and to the substantial control exercised by the non-resident person over the resident person, the course of business between those persons can be so arranged, and is so arranged, that the business done by the resident person in pursuance of his connection with the non-resident person produces to the resident person either no profits or less than the ordinary profits which might be expected to arise from that business, the non-resident person shall be assessable and chargeable to income tax in the name of the resident person as if the resident person were an agent of the non-resident person.

Subdivision D - Dividends

35.   Assessable income of shareholders in companies

(1)  The assessable income of a shareholder in a company (whether the company is a resident or a non-resident) shall include dividends paid to him by the company out of profits derived by it from any source.

(2)  Distributions to shareholders of a company by a liquidator in the course of winding-up the company, to the extent to which they represent income derived by the company (whether before or during liquidation) other than income which has been properly applied to replace a loss of paid-up capital, not being capital created by a revaluation of assets, shall, for the purposes of this Act, be deemed to bedividends paid to the shareholders by the company out of profits derived by it.

(3)  Where the income tax payable in respect of any dividend included in the gross income of a taxpayer has been paid at the source in this State, the amount of such included income so previously taxed, less any deductions allowable to the taxpayer in respect of that included income, shall, for the purpose of calculating the rate of tax to be paid by the taxpayer under any Act declaring the rate of tax, be deemed to form part of the taxable amount of the taxpayer, but shall not be again subject to taxation.

Division III - Deductions

36.   Calculation of taxable income

(1)  In calculating the taxable income of a taxpayer, the total assessable income derived by him during the year of income shall be taken as a basis, and from it there shall be deducted all allowable deductions.

(2)  Where by this Act it is provided that any deduction shall be made successively from two or more classes of income, the deduction shall be set off against the income of the first of those classes, and if it exceeds the income of that class, the excess shall be set off against the income of the second class, and so on until either the deduction or the income of the last of those classes is exhausted.

(3)  Where the assessable income is derived from more than one of the following classes of income, that is to say, income from personal exertion, income from property other than dividends, and income from dividends, the following provisions shall apply to all allowable deductions, except the statutory exemption:

(a) Where a deduction relates directly to the income from dividends, it shall be made successively from that income, from the other income from property, and from the income from personal exertion;

(b) Where a deduction relates directly to the income from property other than dividends, it shall be made successively from that income, from the income from dividends, and from the income from personal exertion; and

(c) In all other cases, the deduction shall be made successively from the income from personal exertion, from the income from property other than dividends, and from the income from dividends.

37.   Losses and outgoings

(1)  All losses and outgoings to the extent to which they are incurred in gaining or producing the assessable income, or are necessarily incurred in carrying on a business for the purpose of gaining or producing such income, shall be allowable deductions except to the extent to which they are losses or outgoings of capital, or of a capital, private, or domestic nature, or are incurred in relation to the gaining or production of exempt income.

(2)  Expenditure incurred or deemed to have been incurred in the purchase of stock used by the taxpayer as trading stock shall be deemed not to be an outgoing of capital or of a capital nature.

(3)  Head office expenses of a company deriving income from sources in and out of the State shall not be an allowable deduction beyond an amount which bears the same proportion to the total head office expenses as the assessable income derived by the company in the State bears to the total assessable income of the company wherever derived, or beyond an amount to be fixed by the Commissioner.

(4)  Subject to the provisions of subsection (4) of section thirty, any loss incurred by the taxpayer in the year of income upon the sale of any property, or from the carrying on or carrying out of any undertaking or scheme, the profit, if any, from which sale, undertaking, or scheme would have been included in his assessable income, shall be an allowable deduction.

38.   Repairs

(1)  Expenditure incurred by the taxpayer in the year of income for repairs, not being expenditure of a capital nature, to any premises, or part of premises, plant, machinery, implements, utensils, rolling-stock, or articles held, occupied, or used by him for the purpose of producing assessable income, or in carrying on a business for that purpose, shall be an allowable deduction.

(2)  Expenditure incurred upon repairs to any premises or part of premises not so held, occupied, or used shall not be an allowable deduction.

39.   Depreciation

(1)  Depreciation, during the year of income, of any property, being plant, or articles owned by a taxpayer and used by him during that year for the purpose of producing assessable income, shall, subject to this Act, be an allowable deduction.

(2)  In this section plant includes animals used as beasts of burden or working beasts in a business other than a business of primary production, and machinery, implements, utensils, and rolling-stock.

(3)  In the first calculation of the depreciation to be allowed in respect of any unit of property, an estimate shall be made by the Commissioner of the effective life of the unit, assuming that it is maintained in reasonably good order and condition, and the annual depreciation per centum shall be fixed accordingly.

(4)  Subject to this section, the depreciation allowable under this Act in respect of any unit of property shall be –

(a) the percentage fixed under subsection (3) hereof of the depreciated value of that unit at the beginning of the year of income; or

(b) at the option of the taxpayer (to be exercised within the time, in the manner, and subject to the conditions prescribed) the percentage so fixed of the cost of that unit.

(5)  The deduction allowable in respect of any unit of property shall not exceed the depreciated value of that unit.

(6)  Where any property has been bought by the taxpayer, no amount paid by him, which has been allowed or is allowable under this Act as a deduction to him from the assessable income of any year otherwise than on account of depreciation, shall be deemed to be part of the cost of the property.

(7)  Where depreciation has been allowed to a taxpayer, under this Act, in respect of any year prior to the year of income, the method of calculating the depreciation to be allowed to him in respect of the year of income shall, unless altered with the leave of the Commissioner, or in the exercise of the option referred to in subsection (4) hereof, be the same as that applied in the last preceding calculation.

(8)  Where the depreciated value under this Act of any property at the beginning of the year of income is higher than its depreciated value at that time under a Commonwealth Act relating to income tax, and the Commissioner is satisfied that if those values were equal the corresponding values in each subsequent year would remain equal, the Commissioner may allow, in lieu of the depreciation otherwise allowable, an amount of depreciation calculated as if the depreciated value at the beginning of the year of income under the Commonwealth Act had been substituted for the depreciated value at that time under this Act.

(9)  Where subsection (8) hereof is applied in any assessment, a further amount of depreciation shall also be an allowable deduction in that assessment, being an amount determined by the Commissioner, which shall not be less than one-tenth part of the difference between those depreciated values at the beginning of the year to the assessment of the income of which this section is first applied, provided that the further amount shall not in any case exceed the amount required to make the depreciated values of the property under this and the Commonwealth Act equal.

(10)  Where depreciation has been allowed under subsections (8) or (9) in respect of any property in any assessment of a taxpayer, depreciation shall be allowed under this section in all future assessments of that taxpayer in which depreciation in respect of that property is allowable, untilthe depreciated values under this Act and the Commonwealth Act are equal.

(11)  Where a person has acquired, at any time, any property in respect of which depreciation has been allowed or is allowable under this Act, he shall not be entitled to any greater deduction for depreciation than that which would have been allowed to the person from whom the property was acquired if that person had retained it.

(12)  Subsection (11) hereof shall not apply where the Commissioner is of the opinion that the circumstances are such that depreciation based on the actual consideration given should be allowed.

(13)  Where the use of any property by the taxpayer has been only partly for the purpose of producing assessable income, or for only a part of the year of income, such part only of the deduction otherwise allowable under subsection (1) hereof in respect of that property as in the opinion of the Commissioner is proper shall be an allowable deduction.

(14)  In this Division depreciated value of any unit of property at any time means –

(a) where depreciation has been allowed or is allowable under this Act in respect of that unit in assessments for any period prior to that time – the cost of the property less the amount of all depreciation so allowed or allowable; and

(b) where depreciation has not been allowed or is not so allowable – the cost of the property.

40.   Bad debts

(1)  Debts which are proved to the satisfaction of the Commissioner to be bad debts and to have been written off as such during the year of income, and –

(a) have –

(i) become due to the taxpayer in the ordinary course of his business; and

(ii) been brought to account by the taxpayer as assessable income of any year; or

(b) are in respect of money lent in the ordinary course of the business of the lending of money by a taxpayer who carries on that business –

and no other bad debts, shall be allowable deductions.

(2)  If a debtor, after incurring a debt so brought to account, or in respect of money so lent, is adjudicated bankrupt, or executes a deed of assignment or arrangement for the benefit of his creditors, the debt (where, in the opinion of the Commissioner, no amount will be paid on account of the debt) or the amount by which, in his opinion, the amount which will be received on account of the debt will be less than the debt, shall be deemed to be a bad debt.

(3)  Where in the year of income a taxpayer receives an amount in respect of a debt for which a deduction has been allowed to him under this Act, his assessable income shall include that amount.

41.   Commission

Expenditure incurred by the taxpayer in the year of income by way of commission for collecting his assessable income shall be an allowable deduction.

42.   Payments to relatives

(1)  Subject to this section, payments becoming due in the year of income by a taxpayer to a relative shall be allowable deductions only to the extent to which, in the opinion of the Commissioner, they are reasonable in amount and are made in good faith in the production of assessable income.

(2)  Expenditure incurred, and payments becoming due, by the taxpayer in the year of income in or for the maintenance of his wife or of any member of his family under the age of sixteen years, shall not, whether or not the expenditure was incurred in the production of assessable income, be an allowable deduction.

43.   Contributions to pension funds

Any sum set apart or paid by the taxpayer in the year of income as or to a fund to provide individual personal benefits, pensions, or retiring allowances for his employees shall, to the extent to which those employees are engaged in producing assessable income of the taxpayer, be an allowable deduction where –

(a) the taxpayer is under a legal obligation to his employees to set apart or pay that sum; and

(b) the rights of the employees to receive the benefits from pensions or retiring allowances are fully secured.

44.   Expenses of borrowing

So much of the expenditure incurred by the taxpayer in borrowing money used by him for the purpose of producing assessable income as bears, to the whole of that expenditure, the same proportion as that part of the period for which the money was borrowed which is in the year of income bears to the whole of that period shall be an allowable deduction: Provided that, if the period for which the money was borrowed is not fixed, or exceeds five years, the period of five years from the date on which the money was borrowed shall be deemed to be the period for which the money was borrowed.

45.   Expenses of preparing lease

Expenditure incurred by the taxpayer in the year of income for the preparation, registration, and stamping of a lease of property to be held by him for the purpose of producing assessable income shall be an allowable deduction.

46.   Timber felled upon acquired land, &c.

(1)  Where the taxpayer has acquired land carrying standing timber for the purpose of felling that timber for sale and part of the price paid for the land is attributable to that timber, so much of that part as is attributable to the timber felled in the year of income shall be an allowable deduction.

(2)  So much of the amount paid for a right to fell timber for sale, not including an amount paid in connection with the purchase of land as is attributable to the timber felled during the year of income, shall be an allowable deduction.

47.   Losses by embezzlement, &c.

Where in the year of income a loss is incurred by the taxpayer through the embezzlement or larceny, by a person employed in the taxpayer's business, of money which is or has been included in the assessable income of the taxpayer, that loss shall be an allowable deduction.

48.   Rates and taxes

(1)  Sums paid in this State by the taxpayer in the year of income for rates or for State or Federal land tax shall, to the extent to which they are charged or levied in respect of property proved to the satisfaction of the Commissioner to have been held by him during the year of income for the purpose of producing assessable income from rental of such property or from any business carried on thereon, be allowable deductions.

(2)  All amounts for which the taxpayer is personally liable and which are paid by the taxpayer by way of special income tax imposed under Division I of Part V shall be allowable deductions, but no deduction shall be allowed under this provision in respect of the income of any company or in respect of the calculation of income for the purpose of ascertaining the special income tax payable under Part V .

(3)  Where the taxpayer in the year of income receives a refund of any amount paid for rates or taxes which has been allowed or is allowable as a deduction to him in any assessment for income tax under this Act, his assessable income shall include that amount.

49.   Subscriptions to associations

(1)  Where the carrying on of a business from which assessable income is derived by the taxpayer is conditional upon membership of any association, any periodical subscription paid by him in the year of income in respect of that membership shall be an allowable deduction.

(2)  [Section 49 Subsection (2) amended by No. 55 of 1965, s. 5 ]Where an association carries out, on behalf of its members, in the year of income, any activity of such a nature that, if carried out by the taxpayer on his own behalf, its expense would be an allowable deduction to him, any subscriptions, levies, or contributions, not exceeding in the aggregate twenty one dollars, paid by him in that year in respect of membership of that association, shall be an allowable deduction, and any such subscriptions, levies, or contributions exceeding in the aggregate that amount shall be an allowable deduction to the extent only of the greater of the two following amounts:

(a) Twenty-one dollars;

(b) So much of the subscriptions, levies, or contributions as bears to the whole the same proportion as the losses and outgoings incurred by the association in that year, in carrying out that activity, bear to its total losses and outgoings in that year, not being losses or outgoings of capital or of a capital nature.

(3)  [Section 49 Subsection (3) amended by No. 55 of 1965, s. 5 ]Any periodical subscription, to which the foregoing provisions of this section do not apply, paid by the taxpayer in the year of income in respect of his membership of any trade, business, or professional association, shall be an allowable deduction. Provided that the total deduction allowable under this subsection in respect of subscriptions to any one association in that year shall not exceed twenty one dollars.

50.   Election expenses of members of Parliament

(1)  Expenditure lawfully incurred in the year of income by the taxpayer in being elected as a member of the Parliament of the Commonwealth or of the Parliament of this State, or, if the taxpayer was a retiring member at the time of the election, the expenditure lawfully incurred in the year of income by him in seeking to be re-elected, shall be an allowable deduction.

(2)  When a deduction has been allowed or is allowable under subsection (1) hereof in respect of any expenditure and that expenditure or any part of it is reimbursed to the taxpayer or paid for him by any other person or by any organization, the assessable income of the taxpayer of the year in which the amount is so reimbursed or paid shall include that amount.

(3)  [Section 50 Subsection (3) amended by No. 55 of 1965, s. 5 ]The respective amounts enumerated hereunder in respect of the travelling and incidental expenses incurred in the year of income by a taxpayer in the capacity of a member of the Parliament of the Commonwealth or of the Parliament of this State where he was such a member for the whole of the year of income, and a proportionate part of those sums respectively where he was such a member for part only of the year of income, shall be an allowable deduction in cases where the taxpayer is –

(a) a member of the Parliament of the Commonwealth – three hundred dollars;

(b) a member of the State Parliament –

(i) representing Denison – one hundred and fifty dollars;

(ii) representing any other division – two hundred dollars; or

(iii) holding office as a Minister of the Crown or Honorary Minister, or as Leader or Deputy Leader of the Opposition – four hundred dollars –

but such allowances shall in no case be cumulative.

51.   Allowable deductions

[Section 51 Amended by 25 Geo. V No. 78 ][Section 51 Amended by 2 Geo. VI No. 56, s. 2 ][Section 51 Amended by 4 Geo. VI No. 15, s. 3 ][Section 51 Amended by 4 & 5 Geo. VI No. 74, s. 2 ]

(1)  [Section 51 Subsection (1) amended by No. 55 of 1965, s. 5 ]The following shall be allowable deductions:

(a) Gifts of the value of two dollars and upwards (in one amount of money, or of property, other than money, which was purchased by the taxpayer within twelve months immediately preceding the making of the gift) made by the taxpayer in the year of income to any of the following funds, authorities, or institutions:

(i) A public hospital in this State;

(ii) A public benevolent institution in this State;

(iii) A public fund established and maintained for the purpose of providing money for public hospitals or public benevolent institutions in this State, or for the establishment of such hospitals or institutions, or for the relief of persons in this State who are in necessitous circumstances;

(iv) A public authority engaged in research into the causes, prevention, or cure of disease in human beings, animals, or plants, where the gift is for such research;

(v) An institution or public fund for the benefit of persons who are returned soldiers within the meaning of Part III of the Repatriation Act 1920-1959 ;

(vi) A public institution or fund established and maintained for the comfort, recreation, or welfare of the Naval, Military, or Air Forces of the Commonwealth;

(vii) The Commonwealth for purposes of defence; and

(viii) A public fund established within His Majesty's Dominions for –

(A) providing fighting or other craft, or any material for the use of any of His Majesty's Forces; or

(B) the relief of victims of, and sufferers from, air raids or other operations of war in any of His Majesty's Dominions –

or any similar purpose –

and where any person during the year of income has made periodical contributions to any of such objects as aforesaid and such contributions amount in the aggregate to ten dollars during such year such aggregate shall be an allowable deduction;

(b) Sums which are not otherwise allowable deductions and which are set apart or paid by the taxpayer in the year of income as or to a fund to provide individual personal benefits, pensions, or retiring allowances for employees who are residents and are engaged in his or any business or class of business, or dependants of such employees, if the rights of the employees or dependants to receive the benefits, pensions, or retiring allowances are fully secured;

(c) Sums which are not otherwise allowable deductions, and which are paid by the taxpayer during the year of income as retiring allowances or pensions to persons who are or have been employees or dependants of employees, where such persons are residents, shall, to the extent to which, in the opinion of the Commissioner, those sums are paid in good faith in consideration of the past services of the employees in any business of the taxpayer, be allowable deductions;

(d) Rent paid by any tenant of land and buildings which are occupied and used by him for the purposes of carrying on his business; but such deduction shall not include the rent paid for that portion of such land and buildings as is occupied and used for the purposes of the residence of such tenant;

(e) Sums paid by the taxpayer by way of interest upon any money borrowed by him and used for the purposes of his business, or sums paid by him by way of rent-charge, or other charge in respect of land used for the production of assessable income, but to the extent only to which such land is so used;

(f) Every insurance premium paid by a taxpayer for –

(i) fire insurance in respect of –

(A) buildings, plate-glass, or plant used by him for the purposes of his business; or

(B) stock-in-trade belonging to his business; or

(ii) insurance against –

(A) burglary;

(B) liability in respect of workers' compensation;

(C) damage to plate-glass; or

(D) loss of profits;

(g) Payments which the taxpayer is required to make to any fund established by any Act or Commonwealth Act relating to insurance for the benefit of the taxpayer or of his spouse or children.

(2)  For the purposes of this section the value of a gift of property other than money shall be the value of the property at the time of making the gift, or the amount paid by the taxpayer for the property, whichever is the less.

(3)  Where any rent or sum in respect of which a deduction is allowed under paragraph (d) or paragraph (e) of subsection (1) hereof is payable to a person residing beyond this State, the person paying it shall, for the purposes of this Act, be deemed to be the agent of the person entitled to receive it, and shall be liable to pay income tax thereon as if he were a taxpayer in a representative capacity in respect of such sum.

52.   Concessional deductions

[Section 52 Amended by 5 Geo. VI No. 33, s. 3 ][Section 52 Amended by No. 55 of 1965, s. 5 ]The following amounts (in this Act called "the concessional deductions") shall be allowable deductions where the taxpayer is a resident:

(a) The sum of fifty two dollars in respect of each child who is a resident and is under the age of sixteen years at the beginning of the year of income and is wholly maintained by the taxpayer; Provided that, where a child is born during the year of income or attains the age of sixteen years during the year, or is wholly maintained by the taxpayer during part only of the year, or is only partially maintained by him during the whole or part of the year, the deduction allowable shall be such part of that sum as, in the opinion of the Commissioner, is reasonable in the circumstances;

(b) Payments not exceeding forty dollars in the aggregate in any one year made to any superannuation fund for the personal benefit of the taxpayer or his wife or children by a taxpayer who is in receipt of salary, wages, allowances, or stipend;

(c) The sum of eighty dollars in respect of –

(i) the spouse of the taxpayer; or

(ii) any female relative having the care of any of the taxpayer's children who are under the age of sixteen years, where the taxpayer is a widower or widow –

if such spouse or relative is a resident and is wholly maintained by the taxpayer: Provided that the spouse or relative shall be deemed to be wholly maintained by the taxpayer only if the separate net income of such spouse or relative from all sources does not exceed $80 and the taxpayer contributes to such maintenance.

53.   Statutory exemptions

[Section 53 Substituted by 5 Geo. VI No. 43, s. 3 ]

(1)  [Section 53 Subsection (1) substituted by No. 55 of 1965, s. 5 ]No person who is resident in this State and whose gross income from all sources during the year of income, after deducting therefrom all allowable deductions except the concessional deductions, did not exceed –

(a) two hundred and eight dollars;

(b) three hundred dollars, if he is married;

(c) eight hundred dollars if he is a returned soldier who is totally and permanently incapacitated;

(d) one thousand dollars if he is such returned soldier as aforesaid and is married; or

(e) four hundred dollars if he is married and has any dependent children in respect of whom he is entitled to a deduction under section fifty-two –

shall be liable to income tax imposed under this Act, and no non-resident person whose income from all sources during such year did not exceed one hundred dollars shall be liable to such tax as aforesaid.

(2)  [Section 53 Subsection (2) amended by No. 55 of 1965, s. 5 ]In the following cases the taxable amount shall be ascertained by deducting from the net income:

(a) If the taxpayer is a returned soldier who is totally and permanently incapacitated and his net income from all sources during the year of income exceeded $1000 if he is married or $800 if otherwise: the sum of –

(i) one thousand dollars if he is married; or

(ii) eight hundred dollars if otherwise;

(b) Where the tax assessed, as provided by this Act, in respect of the income of the taxpayer would amount to less than two dollars and fifty cents – the amount of his net income.

(3)  For the purposes of this section and section fifty-four the term

married applied to a taxpayer includes a taxpayer who is a widow or widower and who, during the year of income, maintained a dependent child under the age of sixteen years.

(4)  The foregoing provisions of this section shall not apply to any company.

54.   Statutory deductions from tax

[Section 54 Amended by 5 Geo. VI No. 43 ]

(1)  Every returned soldier to whom this section applies shall be entitled to a deduction from the amount of income tax which but for this section would be payable by him.

(2)  [Section 54 Subsection (2) amended by No. 55 of 1965, s. 5 ]Such deduction shall be –

(a) ten per centum if he is married and his net income from all sources during the year of income did not exceed one thousand dollars;

(b) ten per centum if he is totally and permanently incapacitated; and

(c) five per centum in other cases if his net income from all sources during the year of income did not exceed eight hundred dollars –

of the tax which would otherwise be payable.

(3)  For the purposes of this Act a returned soldier means a person resident in this State who was a member of the naval or military forces, or the Army Medical Corps Nursing Service of the British Empire or of the Red Cross Service, and who as such member served outside the Commonwealth in the war which commenced on the fourth day of August 1914 or in the war which commenced on the third day of September 1939.

55.   Limitation of exemptions and deductions

(1)  No deduction or exemption allowed or provided under this Act shall apply in respect of any income received or receivable by any person as a prize in any lottery authorized by law in this State.

(2)  Where, in respect of any amount, a deduction would but for this section be allowable under more than one provision of this Act, and whether it would be so allowable from the assessable income of the same or different years, the deduction shall be allowable only under that provision which, in the opinion of the Commissioner, is most appropriate.

(3)  Where the profit arising from the sale of any property is included in the assessable income of any person, or where the loss arising from the sale is an allowable deduction, and any expenditure incurred by him in connection with that property is an allowable deduction or has been allowed as a deduction under this Act, that expenditure shall not be deducted in ascertaining the amount of the profit or loss.

Division IV - Leases

56.   Interpretation

(1)  In this Division –

lease, when used in relation to a premium, means the lease granted, assigned, or surrendered, or where the premium is for, or in connection with, any goodwill or licence, means the lease of the land to which such goodwill or licence is attached or connected;

lessor, when used in relation to any time, means the person at that time entitled to the reversion;

net premium means the amount ascertained by deducting from a premium the allowable deductions directly relating thereto;

premium means any consideration in the nature of a premium, fine, or foregift payable to any person for, or in connection with, the grant or assignment by him of a lease, or any consideration for, or in connection with, the surrender of a lease, or for or in connection with any goodwill or licence attached to or connected with land a lease of which is granted, assigned, or surrendered; and where any of the foregoing considerations is payable in more than one amount, each such amount shall be deemed to be a premium;

term of the lease means the length of time which the lease has to run from the date when the premium is received, and in the case where the premium is received for or in connection with the surrender of a lease, the length of time which the lease would have had to run at the date of such receipt if it had not been surrendered.

(2)  Subject to the provisions of subsection (3) of section thirty-two, where a lease is sold in conjunction with other assets the amount of the consideration attributable to the lease shall be –

(a) the amount, if any, specifically allocated to the lease in any contract of sale or arrangement, if the Commissioner is satisfied that such amount is fair and reasonable; or

(b) in any other case, the amount determined by the Commissioner.

57.   Premiums for leases or assents to leases

The assessable income of a taxpayer shall include, in addition to rent, any premium received by him in the year of income, and any consideration so received for, or in connection with, his assent to any grant or assignment of a lease.

58.   Premiums: When allowed as deductions

(1)  Where any premium is included in the assessable income of a taxpayer of the year of income, and –

(a) the premium is received for or in connection with the assignment or surrender of a lease or for or in connection with the goodwill or a licence attached to or connected with land the subject of a lease assigned or surrendered, and the taxpayer has paid any amount –

(i) to acquire that lease or the goodwill or licence attached to or connected with that land; or

(ii) where the lease assigned or surrendered is a lease of land – in effecting improvements on that land; or

(b) the taxpayer has paid any amount for the surrender to him of a lease, goodwill, or licence for the purpose of granting or assigning the lease, goodwill, or licence for or in connection with which the premium was derived –

and the whole or any portion of that amount has not been allowed or is not allowable as a deduction in assessments for income tax under any other provision of this Act or under any previous law of this State, the amount which bears the same proportion to the amount which has not been so allowed as the premium included in his assessable income bears to the total of the premiums received or to be received by him for the grant, assignment, surrender, goodwill, or licence in respect of which the premium was so included, shall be an allowable deduction.

(2)  Where any premium is included in the assessable income of a taxpayer in respect of property to which he has succeeded upon the death of another person, the taxpayer shall be entitled to the deduction to which that other person would have been entitled under this section, if he had lived and the premium had been included in his assessable income and there had been allowed or were allowable as deductions in assessments for income tax under any other provisions of this Act or under any previous law of this State, the same deductions as have been so allowed or are so allowable to the taxpayer in addition to any deductions that in fact have been or are so allowed or allowable to that other person.

(3)  Where any premium is paid to a taxpayer for or in connection with the grant by him of a sub-lease, or for or in connection with the goodwill or licence attached to or connected with land the subject of a sub-lease so granted, and is included in the assessable income of the taxpayer of the year of income, and he has paid any amount to acquire the lease of the premises the subject of the sub-lease or the goodwill or licence, so much of the total deductions to which he would, but for this subsection, be entitled in respect of that amount during the period for which that sub-lease is granted as bears to those deductions the same proportion as the premium included in his assessable income bears to the total of the premiums received or to be received by him for the grant of that sub-lease or for the goodwill or licence shall be an allowable deduction, and he shall not during that period be entitled to any further deduction in respect of that amount otherwise than under this subsection.

59.   Income of a taxpayer receiving a premium

(1)  Where a premium which exceeds the sum of the allowable deductions directly relating thereto, and in respect of which the term of the lease is not less than twenty-five complete months, is included in the assessable income of a taxpayer, the rate of tax to be applied to his taxable income shall be ascertained in accordance with this section.

(2)  Where the taxable income exceeds the net premium, or the sum of the net premiums if there are more than one of the premiums so included, the rate of tax shall be the rate which isapplicable to a taxable income equal to the amount obtained by deducting the net premium, or sum of the net premiums, as the case may be, from the taxable income and adding to the result the amount or amounts ascertained by dividing each of the net premiums by one twenty-fourth of the number of complete months in the term of the lease.

(3)  Where the taxable income is not more than the net premium, or the sum of the net premiums if there are more than one of the premiums so included, the rate of tax shall be –

(a) where there is only one of those premiums – the rate which would be applicable to a taxable income equal to the amount ascertained by dividing the actual taxable income by one twenty-fourth of the number of complete months in the term of the lease; and

(b) where there are more than one of those premiums – the rate which would be applicable to a taxable income equal to the sum of the amounts ascertained by apportioning the actual taxable income among the net premiums in proportion to their amounts, and dividing the amount so apportioned to each net premium by one twenty-fourth of the number of complete months in the term of the lease.

(4)  This section shall not apply in any case where the taxpayer is a company, except where, in respect of the premium, it is assessable as a trustee or where a premium is payable in each of three or more years.

60.   Value of improvements included in assessable income

(1)  Where improvements have been made on leased land by a lessee, which he is required to make under the terms of the lease, or which are made with the written consent of the lessor, the following provisions shall apply:

(a) There shall be included in the lessor's assessable income of the year in which the improvements have been made, and of each year thereafter until and including the year in which the lease expires, an instalment of the estimated value to the lessor of such improvements as at the expiration of the lease. This instalment shall be an amount which if received at the commencement of each of those years would, with interest at the rate prescribed, accumulate to a sum equal to the estimated value. Provided that, where in the year of income, two or more persons have been lessors for successive periods the instalment shall be included in the assessable income of the last of those lessors;

(b) Where, in the opinion of the Commissioner, the instalment cannot be satisfactorily determined, the value of the improvements at the expiration of the lease shall be included in the lessor's assessable income of the year in which the lease expires.

(2)  This section shall not apply where the lessee is required to make the improvements under the terms of a lease entered into before the commencement of this provision, or where the improvements are made in pursuance of a consent given before such commencement or in any of the cases specified in subsection (3) of section sixty-one.

61.   Deductions to lessee

(1)  Where a taxpayer has paid any premium, and the lease is a lease of premises or machinery used for the purpose of producing assessable income –

(a) if he was entitled to the lease during the whole of the year of income, or in the case of a premium paid for the surrender of a lease, if he would have been so entitled had the lease been transferred to him and he had not been entitled to the reversion – the amount ascertained by dividing the amount of the premium by the number of years of the period of the lease unexpired when such payment was made; and

(b) if he was entitled to the lease during part only of the year of income, or in the case of a premium paid for the surrender of a lease, if he would have been so entitled had the lease been transferred to him and he had not been entitled to the reversion – a proportionate part of the amount so ascertained –

shall be an allowable deduction.

(2)  Where a taxpayer has expended money in making on leased land used for the purpose of producing assessable income improvements which are not subject to tenant rights, and which he was required to make under the terms of the lease, or which he has made with the written consent of the lessor given after the commencement of this section –

(a) if he was entitled to the lease during the whole of the year of income – the amount ascertained by dividing the amount of such expenditure, not exceeding the amount which under the terms of the lease he was required to expend, or which he expended with that consent, by the number of years of the period of the lease unexpired when the money was expended; and

(b) if he was entitled to the lease during part only of the year of income – a proportionate part of the amount so ascertained –

shall be an allowable deduction.

(3)  The provisions of subsection (2) hereof shall not apply in any case –

(a) where the lease is a lease of land to a company from an individual or from a company to an individual, and the individual directly or indirectly controls the voting power of the company; or

(b) where the Commissioner is of the opinion that, in consequence of the terms and conditions of the lease or of any other circumstances, the lessor is in substantial control of the operations of the lessee or the lessee is in substantial control of the operations of the lessor.

(4)  Where any taxpayer succeeds to any lease or share therein upon the death of any person who has paid such premium or expended such money, he shall be entitled to the same deduction, or part thereof proportionate to his share in the lease, as that person would have been entitled to under this section had he lived.

62.   This Division not to apply to certain leases

This Division shall not apply to any lease from the Commonwealth or the State, with a right of purchase.

Division V - Casual profits and losses

63.   Casual profits

[Section 63 Amended by 25 Geo. V No. 78 ]

(1)  Subject to the provisions of paragraph (p) of subsection (1) and of subsection (4) of section thirty, where the proceeds of the sale in the year of income by a taxpayer of any real property situated in the State are not included in his assessable income under any other provision of this Act, and the real property was bought by a taxpayer in the year of income or in any of the three years next preceding that year, his assessable income shall include the net profit, if any, arising from the sale.

(2)  In this section

real property means any estate or interest in land, including a lease of land and the goodwill of any business carried on on the land, but does not include any premises owned and solely used by the taxpayer before the sale as his principal place of abode for any period of or exceeding four years.

(3)  For the purposes of this Division where the real property sold was bought by the taxpayer from the Crown, and prior to the purchase was held by him as a tenant of the Crown, he shall be deemed to have bought the land on the date on which he acquired the tenancy from the Crown.

64.   Profits from sale of personal property

[Section 64 Amended by 2 Geo. VI No. 56, s. 2 ]

(1)  Where the proceeds of sale in the year of income by a taxpayer of any property other than real property are not included in his assessable income under any other provision of this Act, and the property was bought by the taxpayer in the year of income or in any of the two years next preceding that year, his assessable income shall include the net profit, if any, arising from the sale.

(2)  [Section 64 Subsection (2) amended by No. 55 of 1965, s. 5 ]This section shall not apply to the sale of any property, other than shares or securities, where the aggregate value of the property sold in the year of income does not exceed four hundred dollars.

(3)  For the purposes of this Division –

(a) a sale of rights to take up shares shall be deemed to be a sale of shares;

(b) where a shareholder has a number of shares of the same class and sells shares of that class, he shall be deemed unless the contrary appears to have first sold the shares first bought.

65.   Amount of casual profit or loss

(1)  The amount of the net profit to be included in the assessable income under this Division (in this Act called "casual profit") shall be calculated by deducting from the sale price or amount realized by the sale the following amounts:

(a) The expenses of sale;

(b) The cost of the property to the taxpayer (less all amounts in respect of that cost or of depreciation of the property which have been allowed or are allowable as deductions in the assessments under this Act, of the taxable income of the taxpayer; and

(c) Any other expenses, including interest on borrowed money, incurred in connection with the acquisition, improving, or holding of the property, which have not been allowed and are not allowable as deductions in the assessments under this Act of the taxable income of the taxpayer.

(2)  Where the amounts so to be deducted exceed the sale price or amount realized, the amount of the excess is in this Act called a "casual loss", and the casual loss shall be deemed to have been incurred in the year in which the sale took place.

66.   Sale of property not purchased

(1)  Where a taxpayer has in the year of income sold property which was acquired by him from another person otherwise than by purchase, and that person had bought the property, then for the purpose of this Division the purchase by that person and the expenses incurred by him shall be deemed to have been made and incurred by the taxpayer, and any amounts in respect of cost or depreciation which have been allowed or are allowable to that person as deductions shall be deemed to have been allowed to the taxpayer.

(2)  Where in the case of any sale coming under this Division the payment of the purchase price extends over a period of years, the amount of the casual profit which would have been derived if the sale had been for cash shall be ascertained, and there shall be included in the assessable income of the year of income as a casual profit so much of that amount as bears to that amount the same proportion as the payments received in that year bear to the total purchase price.

67.   Rate of tax: How ascertained

Where a casual profit is included in the assessable income of a taxpayer, the rate of tax to be applied to his taxable income shall be ascertained as follows:

(a) There shall be deducted from that casual profit any casual losses which are allowable deductions, and if there is more than one casual profit a proportionate part of the casual losses shall be deducted from each casual profit;

(b) The balance so ascertained in respect of each casual profit shall be divided by the number of years for which the taxpayer had at the time of sale held the property in respect of which that casual profit was derived;

(c) A calculation shall be made of the amount that would be the taxable income if only that part of each casual profit arrived at by that division had been included in the assessable income, and if no casual losses had been allowable deductions;

(d) The rate of tax to be applied to each dollar of the taxable income of the taxpayer from personal exertion shall be the rate which would be applicable to a taxable income from personal exertion equal to the amount so calculated;

(e) The rate of tax to be applied to each dollar of the taxable income of the taxpayer from property shall be the rate which would be applicable to a taxable income from property equal to the amount so calculated.

68.   Exchange or resumption of property or purchase under option

For the purposes of this Division –

(a) the property parted with on an exchange of property or on a statutory resumption shall be deemed to have been sold; and the property acquired by an exchange of property or by the issue of shares shall be deemed to have been bought. In the case of an exchange, the price paid or received for any property shall be deemed to be the value of the property for which it is exchanged;

(b) where any property is purchased in the exercise of an option of purchase, any consideration paid or given to the vendor for the option shall be deemed to be part of the purchase price.

69.   Deduction of casual losses

(1)  Any casual loss incurred by a taxpayer in the year of income or in any of the three years next preceding that year shall, to the extent to which it has not been allowed or is not allowable as a deduction in the assessments of the taxable income derived by the taxpayer in any year prior to the year of income, be an allowable deduction: Provided that the deductions allowable under this section shall not exceed the amount of the casual profits included in the assessable income of the taxpayer of the year of income.

(2)  Where a deduction is allowable under this section in respect of two or more casual losses they shall be taken into account in the order in which they were made.

Division VI - Partnerships

70.   Interpretation

In this Division –

net income in relation to a partnership means the assessable income of the partnership, calculated as if the partnership were a taxpayer, less all allowable deductions except gifts, the concessional deductions, the statutory exemptions, and losses of previous years;

partnership loss means the excess, if any, of the allowable deductions, except gifts, the concessional deductions, the statutory exemption, and losses of previous years, over the assessable income of a partnership, calculated as if the partnership were a taxpayer.

71.   Partnership returns

(1)  A partnership shall furnish a return of the income of the partnership, but shall not, except as provided in this Division and subsection (7) of section one hundred and nine, be liable to pay tax thereon.

(2)  Except as provided by subsection (7) hereof, the assessable income of a partner shall include his individual interest in the net income of the partnership of the year of income, and his individual interest in a partnership loss incurred in the year of income shall be an allowable deduction.

(3)  The exempt income of a partner shall include his individual interest in the exempt income of the partnership of the year of income.

(4)  In calculating the net income of a partnership, or partnership loss, for the purpose of assessing any partner's share, the partnership shall be deemed to have exercised or failed to exercise all options and rights to select a value for livestock under this Act in the same manner as the partner has in fact exercised or failed to exercise those options and rights, and the partnership shall not, as a partnership, be entitled to exercise any such option or right.

(5)  The fact that a taxpayer has entered into a partnership, or that any variation has taken place in the membership of any partnership of which the taxpayer is a member, shall not –

(a) affect any option or any right to select a value for livestock previously exercised by him under this Act; or

(b) confer upon him any right to alter anysuch option or value without the leave of the Commissioner.

(6)  Where, in respect of a partnership formed before the commencement of this section, a basis of valuation of livestock of the partnership had, before that commencement, been accepted by the Commissioner for the purposes of the law in force prior to such commencement, nothing in this section shall be deemed to vary, or require the variation of, that basis of valuation unless or until there is an alteration in the membership of that partnership.

(7)  If two or more members of any partnership are relatives, the Commissioner, in his discretion, may select one or more partners, and thereupon, in respect of each partner so selected –

(a) the assessable income shall include the individual interest in any net income of the partnership;

(b) the allowable deductions shall include the individual interest in any partnership loss; and

(c) the exempt income shall include the individual interest in any exempt income of the partnership –

of any of his relatives whom the Commissioner may nominate; but the Commissioner shall not nominate any such relative who, not being the wife of a selected partner, was over the age of twenty-one years at the beginning of the year of income, and who, during the greater part of that year, was actively engaged in the production of the assessable income of the partnership.

(8)  If during the year of income a wife carries on any business individually or as a partner of any persons (not including her husband), and, in the opinion of the Commissioner, not less than three-fourths of her capital in such business has been derived directly or indirectly from, or through the instrumentality of, her husband –

(a) her income from such business, if carried on individually or her individual interest in any net income of such partnership, shall be included in the assessable income of her husband;

(b) any net loss from such business, if carried on individually, or her individual interest in any loss made by such partnership, shall be included in her husband's allowable deductions, together with such amount, if any, as the Commissioner may consider just and reasonable as an allowance in respect of services rendered by the wife in the production of such income or loss, and any amount so allowed in respect of such services shall be deemed to be income received by the wife.

(9)  Payments made during the year of income by a partnership to a partner for services rendered shall be allowable deductions to the extent only to which the Commissioner considers that they are reasonable in amount and have been made in good faith for the purposes of the production of assessable income.

(10)  Where the assessable income of a taxpayer includes the individual interest of a relative in the net income of a partnership, or where the allowable deductions of a taxpayer include the individual interest of a relative in a partnership loss, any allowable deductions to which such relative is entitled on account of assets used by the partnership rent free in production of such partnership net income or loss shall be taken into account only in the assessment of such taxpayer.

72.   Partnership liable where partner not in receipt and control of share

(1)  Where a partnership is so constituted or controlled, or its operations are so conducted, that any partner has not the real and effective control and disposal of his share of the net income of the partnership, the Commissioner may assess the additional amount of tax that would be payable if the share of that partner, or of all such partners if more than one had been –

(a) received by the partner who has the real and effective control of that share; or

(b) divided between such of the partners who have the real and effective control of that share, in proportion to the extent to which, in the opinion of the Commissioner, they have such control –

as the case may be, and had been added to, and included in, his or their assessable income; and the partnership shall be liable to pay the tax so assessed.

(2)  Where the provisions of this section are applied to a share of the net income of a partnership, that share shall not be included in the assessable income of any partner.

(3)  For the purpose of this section, but without limiting its application, a partner shall be deemed not to have the real or effective control and disposal of any money received by him which is applied to meet the private or domestic obligations of any other partner.

Division VII - Trustees

73.   Net income of a trust estate

(1)  In this Division the net income of a trust estate means the total assessable income of the trust estate calculated under this Act as if the trustee were a taxpayer in respect of that income, less all allowable deductions –

(a) except the concessional deductions and the statutory exemption; and

(b) except also in respect of any beneficiary who has no beneficial interest in the corpus of the trust estate, or in respect of any life tenant, the deduction of such of the losses of previous years as are required to be met out of corpus.

(2)  Except as provided in this Act, a trustee shall not be liable as trustee to pay income tax upon the income of the trust estate.

74.   Assessable income of a beneficiary

(1)  Where any beneficiary is presently entitled to a share of the net income of a trust estate and is not under any legal disability, his assessable income shall include that share.

(2)  The exempt income of any such beneficiary shall include his individual interest in the exempt income of the trust estate, except to the extent to which that exempt income is taken into account in calculating the net income of the trust estate.

(3)  Where any beneficiary is presently entitled to a share of the income of a trust estate but is under a legal disability, the trustee shall be assessed and liable to pay tax in respect of that share of the net income of the trust estate as if it were the income of an individual, and were not subject to any deduction other than the concessional deductions which would have been allowable to the beneficiary if he had been assessed in respect of that share, and the statutory exemption.

(4)  Where there is no beneficiary presently entitled to any part of the income of a trust estate, or where there is a part of that income to which no beneficiary is so entitled, the trustee shall be assessed and liable to pay tax on the net income of the trust estate or on the part of that net income, as the case may be, as if it were the income of an individual, and were not subject to any deduction other than the statutory exemption applicable to an unmarried taxpayer.

(5)  The assessable income of any beneficiary who is under a legal disability, and who is a beneficiary in more than one trust estate, or derives income from any other source, shall include his individual interest in the net income of the trust estate or estates.

(6)  There shall be deducted from the income tax assessed against such beneficiary the tax paid or payable by any trustee in respect of that beneficiary's interest in the net income of the trust estate.

(7)  For the purposes of this Division, where a trustee has a discretion to pay or apply income of a trust estate to or for the benefit of specified beneficiaries, a beneficiary in whose favour the trustee exercises his discretion shall be deemed to be presently entitled to the amount paid to him or applied for his benefit by the trustee in the exercise of that discretion.

(8)  Where in the year of income the trustee of the estate of a deceased person receives any amount which is in the nature of corpus in the hands of the trustee, but which would have been assessable income in the hands of the deceased person if it had been received by him during his lifetime, that amount shall be included in the assessable income of that year of the trust estate.

75.   Revocable trusts and trusts for minors

(1)  Where a person has created a trust in respect of any income or income-producing assets, and –

(a) he has a power, whenever exercisable, to revoke or alter the trusts so as to acquire a beneficial interest in the income derived during the year of income, or the assets producing that income or any part of that income or of those assets; or

(b) income is under that trust, in the year of income, payable to, or accumulated for, or applicable for the benefit of, a child or children of that person who is or are under the age of twenty-one years and unmarried –

the Commissioner may assess the trustee to pay income tax, under this section, and the trustee shall be liable to pay the tax so assessed.

(2)  The amount of such tax shall be the amount by which the tax actually payable on his own taxable income by the person who created the trust is less than the tax which would have been payable by him if he had received so much of the net income of the trust estate as is attributable to the beneficial interest which he had power so to acquire, or to the share or shares of that child or children, in addition to any other income derived by him.

(3)  Where this section is applied to the assessment of the income of a trust estate or part thereof derived in the year of income, no beneficiary shall be assessed in his individual capacity in respect of his individual interest in the income or part to which this section has been so applied, and the trustee shall not be assessed in respect of that income or part otherwise than under this section.

(4)  In this section

child includes step-child and adopted child.

76.   Application of tax to trust income

(1)  Where the income of a trust estate is derived wholly from personal exertion or wholly from property income, as the case may be, such income when assessed in the hands of the beneficiary shall be treated wholly as income from personal exertion or wholly as income from property.

(2)  If the trust income is derived partly from personal exertion income, partly from property income, and partly from exempt income, the proportionate part of each class of income to which a beneficiary is entitled shall be included in his individual income: Provided that, where the net income of the trust is ascertainable but the class of income cannot be determined, the allocation as between the different classes of income shall be determined by the Commissioner.

Division VIII - Private companies

77.   Interpretation

[Section 77 Amended by 4 & 5 Geo. VI No. 74, s. 2 ]

(1)  [Section 77 Subsection (1) amended by No. 68 of 1994, s. 3 and Sched. 1 ]In this Division, unless the contrary intention appears –

distributable income means the amount obtained by deducting from the taxable income of a company all taxes, which, in the year of income, are paid under this Act, or under the Income Tax Assessment Act 1936 of the Commonwealth or any Act passed in substitution therefor, or amendment thereof, or paid in any country outside this State in respect of income of the company which is taxable income under this Act;

investment company means a company the income of which, other than dividends from private companies, is ordinarily derived solely or principally from such sources that income derived from those sources by an individual would be income from property;

nominee of any person means one who may be required to exercise his voting power at the direction of, or holds shares directly or indirectly on behalf of, that person and includes a relative of that person;

private company means a company which is under the control of not more than seven persons, and which is not a company in which the public are substantially interested or a subsidiary of a public company;

undistributed amount means –

(a) the amount by which the dividends paid by a private company out of its taxable income of the year of income fall short of a sufficient distribution; or

(b) where no dividends have been so paid, the amount which would have been a sufficient distribution.

(2)  For the purposes of this Division –

(a) a company shall be deemed to be a company in which the public are substantially interested if shares of the company (not being shares entitled to a fixed rate of dividend, whether with or without a further right to participate in profits) carrying not less than twenty-five per centum of the voting power, have been allotted unconditionally to, or acquired unconditionally by, and are at the end of the year of income beneficially held by, the public (not including a private company) and any such shares have in the course of that year been quoted in the official list of a stock exchange;

(b) a company shall be deemed to be a subsidiary of a public company if, by reason of the beneficial ownership of the shares, the control of the company is in the hands of one or more companies none of which is a private company;

(c) a company shall be deemed to be under the control of any persons where the major portion of the voting power of the majority of the shares is held by those persons or is held by those persons and nominees of those persons or where the control is, by any other means whatever, in the hands of those persons;

(d) persons in partnership and persons interested in the estate of a deceased person or in property held in trust shall respectively be deemed to be a single person;

(e) a private company shall be deemed to have made a sufficient distribution of its income of the year of income, if, before the expiration of nine months after the close of the year, it has paid in dividends out of the taxable income of that year –

(i) where it is an investment company – the whole of its distributable income; or

(ii) where it is not an investment company –

(A) if the whole or part of its distributable income consists of dividends received from other private companies – that whole or part, together with two-thirds of the remainder, if any, of the distributable income; and

(B) in any other case – two-thirds of its distributable income.

78.   Assessment of additional tax

(1)  Where a private company has not, before the expiration of nine months after the close of the year of income, made a sufficient distribution of its income of the year, the Commissioner may assess the aggregate additional amount of tax which would have been payable by its shareholders if the company had, on the last day of the year of income, paid the undistributed amount as a dividend to the shareholders who would have been entitled to receive it, and the company shall be liable to pay the tax so assessed.

(2)  Where there is more than one class of shareholders of the company, then for the purpose only of determining which shareholders would have been so entitled, dividends paid within nine months after the close of the year of income out of the taxable income of that year shall be deemed to have been paid in the order in which they were actually paid, but before the last day of that year.

79.   

.  .  .  .  .  .  .  .  

80.   Interposition of companies, trustees, and partnerships

(1)  Where, in relation to any private company, there is an undistributed amount, and any person, not being a company, trustee, or partnership, would, otherwise than as a shareholder of the private company, have received a part of that amount if there had been successive distributions of the relative parts of that amount to and by each of any companies, trustees, or partnerships interposed between the private company and that person, the Commissioner may also, in addition to any other tax assessable under this Division, assess the additional amount of tax, if any, which would in that event have been payable by that person, and the private company shall be liable to pay the tax so assessed.

(2)  If any company so interposed between the private company and that person is not incorporated in this State, and the Commissioner is unable to ascertain the identity of that person, or the part of the amount which he would have received, the Commissioner may assess the additional amount of tax, if any, which would have been payable if the company so interposed had only one shareholder, and the private company shall be liable to pay the tax so assessed.

81.   Excess distribution of previous years

(1)  Where the total amount of dividends paid by a private company out of its taxable income of the period of four years next preceding the year of income exceeds the aggregate of the smallest amounts that would have been a sufficient distribution in each of those years, the excess shall, for the purpose of calculating the undistributed amount, be deemed to be a dividend paid out of the taxable income of the year of income.

(2)  For the purpose of calculating the excess –

(a) any part of the company's taxable income of that period upon which it has paid or is liable to pay tax under this Division shall be deemed to be a dividend paid by the company during that period; and

(b) any dividend or part of a dividend paid out of that part of the company's taxable income shall be deemed not to be a dividend.

82.   Rebates

A shareholder shall be entitled to a rebate of the amount by which his income tax is increased by the inclusion in his assessable income of dividends paid to him by the company in respect of which the company has paid or is liable to pay tax under this Division.

83.   Loans to shareholders

(1)  If any amounts are advanced or any assets distributed by a private company to any of its shareholders by way of advances or loans, or any payment is made by the company on behalf of, or for the individual benefit of, any of its shareholders, so much, if any, of those advances, loans, or payments, as in the opinion of the Commissioner represents distributions of income shall, for all purposes of this Act, be deemed to be dividends paid by the company to those shareholders out of profits derived by it.

(2)  Where the amount of any advance, loan, or payment is deemed, under subsection (1) hereof, to be a dividend paid by acompany to its shareholders, and in any year subsequent to that in which the dividend is so deemed to be paid, the company sets off any dividend, distributed by it in that subsequent year, in satisfaction in whole or in part of the amount of that advance, loan, or payment, that dividend shall, to the extent to which it is so set off, be deemed not to be a dividend for any purpose of this Act.

84.   Payments to shareholders and directors

So much of any sum paid or credited by a private company and being, or purporting to be –

(a) remuneration for services rendered by any person being a shareholder or director of the company or being a relative of any such shareholder or director; or

(b) an allowance, gratuity, or compensation in consequence of the retirement of any such person from any office or employment held by him in that company, or upon the termination of any such office or employment –

as exceeds an amount which, in the opinion of the Commissioner, is reasonable, shall not be an allowable deduction, and the excess shall, for all purposes of this Act, be deemed to be a dividend paid out of profits derived by it to the recipient and received by him as a shareholder of the company.

Division IX - Banks

85.   Interpretation

(1)  In this Division –

average value, in relation to any assets in or out of Australia, means the average value of those assets for the year of income ascertained in the manner provided by section sixty AD of the Commonwealth Bank Act 1911-1932 , as in force at the commencement of this section for the preparation of the quarterly abstracts furnished by banks in accordance with that section: Provided that nothing herein shall be held to bind the Commissioner as to the value of any asset at any time if, in his opinion, formed before or after assessment, this State is prejudicially affected by the value adopted for such asset;

bank means a company which carries on in the State the business of banking as its principal business, but does not include a company of the assets of which at least seventy-five per centum in value are situate out of Australia, or a savings bank established under the Savings Banks Act 1848 ;

exempt assets means bonds, debentures, stocks, or other securities issued by the Commonwealth, and includes any securities issued by a State or by any authority constituted by a law of a State, the interest on which is exempted by the law of that State from income tax;

gross income from all sources means the gross income derived from sources in and out of the State, including the profit, if any, derived from the sale, conversion, or redemption of Government or other securities; but does not include discount derived from and upon the issue of Commonwealth Treasury bills or interest derived from exempt assets; and, save as aforesaid, does not include any profit assessable under Division V hereof or which would be assessable under that Division if derived from a source in the State;

non-exempt assets means property other than exempt assets;

sale of a security includes a sale after a foreclosure;

specific exempt assets means exempt assets purchased with money which was specifically drawn for that purpose from the shareholders' own funds, being only funds no part of which was, or may have been, borrowed money.

(2)  For the purposes of this Division –

(a) interest accrued at the date of the sale of an exempt asset shall be deemed to be income derived by the vendor, and shall not be taken into account in determining the profit or loss upon the sale of the asset;

(b) interest paid or payable by a bank upon money invested in the purchase of a security shall not be taken into account in determining the profit or loss upon the sale, redemption, or conversion of the security;

(c) the value of any asset, wherever situate, and any amount involved in any calculation shall, subject to section eighty-eight , be expressed in terms of Australian currency, and for this purpose the rates of exchange to be used shall be respectively the rates at which exchange could have been effected by telegraphic transfer at the date at which the asset is to be valued or at which the amount is to be ascertained;

(d) underwriting commission or brokerage on the issue of so much of a loan underwritten by a bank as is taken up by it pursuant to an underwriting agreement shall be deemed to be a reduction of the cost of the loan so taken up;

(e) underwriting commission or brokerage on the issue of so much of a loan underwritten by a bank as is not taken up by it shall be deemed to be income of the year in which the loan is issued.

86.   Net income of bank from all sources: Deductions allowable

(1)  The net income of a bank from all sources shall be its gross income from all sources less the deductions allowable under this section.

(2)  The deductions so allowable from the gross income from all sources shall be –

(a) the deductions which would be allowable deductions if the gross income from all sources were derived from a source in this State, except –

(i) interest paid or payable; and

(ii) the deductions provided under section forty-nine and paragraph (a) of subsection (1) of section fifty-one;

(b) the sum which bears to the total interest payable by the bank for the year of income the same proportion as the average value over that year of its non-exempt assets bears to the average value over that year of its total assets except specific exempt assets;

(c) where the gross income from all sources includes a profit arising from the sale, conversion, or redemption of exempt assets except specific exempt assets and Commonwealth Treasury bills, the sum which bears to the total amount of interest payable by the bank for the year of income the same proportion as the average value of such exempt assets sold, converted, or redeemed bears to the average value over that year of its total assets (except specific exempt assets), not exceeding the amount of the profit so included;

(d) any loss arising from the sale, conversion, or redemption of Government or other securities;

(e) notwithstanding the provisions of section thirty-seven , the expenditure, other than interest, incurred in relation to the gaining or production of income derived from exempt assets shall be an allowable deduction.

(3)  The assessable income of a bank shall include so much of the net income of the bank from all sources as bears to that net income the same proportion as the average value over the year of income of its non-exempt assets in this State bears to the average value over that year of its non-exempt assets in and out of this State.

(4)  Any amount which is included in the gross income from all sources of a bank shall not, except to the extent provided in this Division, be included in the assessable income of the bank, and any deduction which is taken into account in ascertaining the net income from all sources of the bank shall not, except to the extent so provided, be an allowable deduction.

(5)  From the amount included under this section in the assessable income of a bank, there shall bededucted any amounts which are allowable deductions under section forty-nine and paragraph (a) of subsection (1) of section fifty-one.

87.   Application of section 86

(1)  Section eighty-six shall commence on the nineteenth day of January 1937, but the provisions of that section shall not apply in any case where –

(a) a bank has elected in the prescribed manner that that section shall not apply with respect to the assessment of its income; and

(b) the Commissioner is satisfied that the laws of three States other than this State enable a similar election to be made, and is further satisfied that in all the other States of Australia in which the bank derives income, and the laws of which enable a similar election to be made, the bank has made that election.

(2)  Except as aforesaid, the provisions of section eighty-six shall apply in respect of the year of income ending on the thirtieth day of June 1936.

(3)  Subject to subsection (5) of this section, an election made under subsection (1) of this section within the period of six months after the end of a year of income shall apply to that year of income and subsequent years, and an election made after such period shall apply to the year of income in which it is made and subsequent years: Provided that an election made within six months after the date mentioned in subsection (1) hereof shall apply to the year of income to which section eighty-six is first applicable.

(4)  With respect to the years of income prior to the year of income to which section eighty-six applies, and with respect to years of income to which that section does not apply by reason of an election as aforesaid, and the Commissioner being satisfied as aforesaid, the following provisions shall apply:

(a) The allowable deduction in respect of interest payable by a bank for the year of income shall be the sum which bears to the total interest payable by the bank for the year of income the same proportion as the average value over that year of its non-exempt assets in this State bears to the average value over that year of its total assets except specific exempt assets;

(b) Notwithstanding section thirty-seven , the expenditure other than interest incurred in relation to the gaining or production of income derived from exempt assets shall be an allowable deduction;

(c) For the purpose of determining the deduction for head office expenses, the expression total income in section thirty-seven shall not include income derived from exempt assets;

(d) Outgoings incurred in this State in relation to funds employed out of this State shall be an allowable deduction, and outgoings incurred out of this State in relation to funds employed in this State shall not be an allowable deduction. For the purposes of this paragraph

outgoings does not include interest or head office expenses.

(5)  Except with the previous written consent of the Commissioner, a bank shall not withdraw an election made under subsection (1) of this section.

88.   Conversion of funds

(1)  Except for the valuing of assets for the purposes of subsection (1) of section eighty-six, and notwithstanding subsections (4) and (9) of section thirty-one and paragraph (c) of subsection (2) of section eighty-five, a bank, if it elects in the prescribed manner to do so, may convert its funds out of Australia at the rates and in the manner specified in this section.

(2)  The conversion of such funds at the beginning of the year of income shall be made at the rate or respective rates adopted for the purpose of assessment under this Act at the end of the year immediately preceding the year of income.

(3)  The conversion of such funds at the end of the year of income shall be made –

(a) in respect of so much of those funds as does not exceed the amount of the funds at the beginning of the year of income, at the rate or respective rates applied at that date pursuant to subsection (2) of this section; and

(b) in respect of the balance, if any, at the rate or respective rates arrived at by averaging separately the value of the whole of the funds in each country out of Australia acquired during the year of income according to the respective rates at which exchange could have been effected by telegraphic transfer at the respective dates of acquisition of such funds.

(4)  In respect of transactions in exchange by a bank to which the preceding provisions of this section apply, and which elects in the prescribed manner to come under this subsection, the order in which any funds of the bank in a country out of Australia shall be deemed to have been disposed of, shall be the order arrived at by treating funds in such country acquired as such in any year of income, as having been disposed of before funds in such country, acquired as such in an earlier year of income.

Division X - Life assurance companies

89.   Income of life assurance companies

(1)  The taxable amount of the income of every company which carries on life assurance business in this State shall be a sum equal to twenty per cent of all premiums received by the company in this State during the year of income after deducting from such premiums any sums paid by the company by way of re-insurance effected in this State with any other company.

(2)  In this section

premiums means moneys received by the company in respect of life assurance business only, and sums paid by the company by way of re-insurance includes only moneys paid in respect of such business.

Division XI - Co-operative and mutual companies

90.   Interpretation

In this Division co-operative company means a company, other than a building society, the rules of which limit the number of shares which may be held by, or by and on behalf of, any one shareholder, and prohibit the quotation of the shares for sale or purchase at any stock exchange or in any other public manner whatever, and includes a company which has no share capital, and which in either case is established for the purpose of carrying on any business having as its primary object or objects one or more of the following:

(a) The acquisition of commodities or animals for disposal or distribution among its shareholders;

(b) The acquisition of commodities or animals from its shareholders for disposal or distribution;

(c) The storage, marketing, packing, or processing of commodities of its shareholders;

(d) The rendering of services to its shareholders;

(e) The obtaining of funds from its shareholders for the purpose of making loans to its shareholders to enable them to acquire land or buildings to be used for the purpose of residence or of residence and business.

91.   Company not co-operative if less than ninety per cent of business with members

If, in the ordinarycourse of business of a company in the year of income, the value of commodities and animals disposed of to, or acquired from, its shareholders by the company, or the amount of its receipts from the storage, marketing, packing, and processing of commodities of its shareholders, or from the rendering of services to them, or the amount lent by it to them, is less respectively than ninety per centum of the total value of commodities and animals disposed of or acquired by the company, or of its receipts from the storage, marketing, packing, and processing of commodities, or from the rendering of services, or of the total amount lent by it, that company shall in respect of that year be deemed not to be a co-operative company.

92.   Sums received taxable

The assessable income of a co-operative company shall include all sums received by it, whether from shareholders or from other persons, for the storage, marketing, packing, or processing of commodities, or for the rendering of services, or in payment for commodities or animals or land sold, whether on account of the company or on account of its shareholders.

93.   Rebates on purchases

(1)  So much of the assessable income of a co-operative company as is distributed among its shareholders as rebates or bonuses based on business done by shareholders with the company shall be an allowable deduction.

(2)  No such rebate or bonus based on purchases made by a shareholder from the company shall be included in his assessable income, except where the price of such purchases is allowable as a deduction in ascertaining his taxable income of any year.

94.   Mutual insurance associations

Every association of persons formed for the purpose of insuring those persons against loss, damage, or risk of any kind in respect of property shall, for the purposes of this Act, be deemed to be a company carrying on the business of insurance, and the assessable income of any such company shall include all premiums derived by the company, whether from its shareholders or not, other than premiums received in respect of policies of life assurance or considerations received in respect of annuities granted.

Division XII - Interest paid by companies

95.   Interest paid by a company to a non-resident

(1)  Where interest is paid or credited by a company to any person who is a non-resident –

(a) on money secured by debentures of the company and used in this State, or used in acquiring assets for use or disposal in this State;

(b) on money lodged at interest in this State with the company; or

(c) on money borrowed or accrued on, or used in relation to, assets used in this State –

the company shall be liable, without affecting its liability, if any, in respect of other income tax payable by it, to pay income tax upon that interest at the rate declared by Parliament in respect thereof.

(2)  The company may deduct and retain for its own use so much of the amount payable to that person as is necessary to pay the tax.

(3)  Where a company establishes, to the satisfaction of the Commissioner, that a person can enforce payment, without any deduction under this section, of interest on any such money secured by debentures issued prior to the first day of January 1927, or on money lodged at interest with it prior to that date, this section shall not apply in respect of the interest paid or credited to that person.

(4)  This section shall not apply to interest paid or credited to a company which is carrying on business in this State, and which has a public officer duly appointed under this Act, unless the Commissioner, by notice in writing to the company paying or crediting the interest, directs that the section shall so apply.

96.   Interest paid by a company on bearer debentures

(1)  Where interest is paid or credited by a 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, the company shall be liable, without affecting its liability, if any, in respect of other income tax payable by it, to pay income tax upon the total amount so paid or credited in respect of those debentures at the rate of tax which would be applicable if that amount were the taxable income of one individual.

(2)  The company may deduct and retain for its own use from the amount payable to any person who is a holder of any of those debentures an amount bearing the same proportion to the amount of tax payable by the company under this section as the interest payable to that person bears to the total interest payable in respect of those debentures.

(3)  Where the Commissioner is satisfied that that person is not liable to furnish a return, he shall refund to him the amount of tax paid by the company in respect of his debentures.

97.   Rebate of tax paid by company

(1)  Where the company pays tax under this Division on any interest, and that interest is included in the assessment of the person to whom it was paid or credited, the proportionate amount of tax paid by the company in respect of the interest shall be deducted from the total tax payable by that person.

(2)  Where that person is a resident of this State and is not liable to pay income tax, or the tax paid by the company exceeds the amount of tax payable by that person, the amount of tax paid by the company or, as the case may be, the amount of the excess, shall be refunded to that person.

98.    Tax on interest

Where in any financial year interest is paid by a company in respect of which it is liable under this Division to pay income tax, the company shall be liable for income tax on that interest to the extent to which it would have been so liable if an assessment had been made in respect of that interest at the date when it was paid.

Division XIII - Oversea ships and aircraft

99.   Assessment in respect of ship or aircraft owners who are non-residents

[Section 99 Amended by 4 Geo. VI No. 15, s. 3 ]

(1)  Where any person resident outside this State, or whose head office or chief place of business is outside this State (hereinafter called "the principal") carries on business in this State as owner or charterer of any ship or aircraft, the agent in this State of such principal shall be assessed and be liable to income tax on an amount equal to seven dollars fifty cents in every one hundred dollars payable to such principal or to such agent (whether the same be payable in or outside this State) in respect of passengers, livestock, mails, and goods shipped or embarked in this State and carried by any such ship or aircraft to any port or place in or beyond this State during the year of income, including all subsidies paid in respect of such ship or aircraft, whether in respect of passengers, livestock, mails, or goods, or otherwise, and whether received in this State or not.

(2)  In all cases where the principal has no recognized agent in this State other than the master of the ship, or the person in charge of the aircraft, as the case may be, or the agent fails to make returns, the Commissioner may make such assessment from such information as may be available to him, and the income tax thereon shall be payable by the master or the person in charge of the aircraft, as the case may be, to the Commissioner prior to the clearance of such ship or aircraft.

(3)  The master, person in charge, or agent upon paying the same shall be entitled to a certificate from the Commissioner that the amount so paid has been paid under the provisions of this Act, and to be indemnified against the principal in respect of such payment.

(4)  Where the assessment is made on the agent or representative, and the tax is not paid forthwith upon receipt of notice of the assessment, the master or person in charge shall be liable to pay the tax assessed.

(5)  Nothing in this section shall, so long as any tax for which the master or person in charge becomes liable under this section remains unpaid, relieve any other person to whom notice of assessment has been given in respect of that tax, from liability to pay the tax remaining unpaid.

(6)  Where any person is liable to pay tax under this Division, the Commissioner shall give notice to him of the assessment, and he shall forthwith pay the tax.

Division XIV - Tasmanian business controlled abroad

100.   Tasmanian business controlled abroad

Where any business carried on in this State –

(a) is controlled principally by non-residents;

(b) is carried on by a company a majority of the shares in which is held by or on behalf of non-residents; or

(c) is carried on by a company, which holds, or on behalf of which other persons hold, a majority of the shares in a non-resident company –

and it appears to the Commissioner that the taxable income disclosed in respect of the business is less than the amount of taxable income which might be expected to arise from that business, the person carrying on the business in this State shall, notwithstanding any other provision of this Act, be liable to pay income tax on a taxable income of such amount of the total receipts, whether cash or credit, of the business as the Commissioner determines.

Division XV - Film business controlled abroad

101.   Film business controlled abroad

(1)  Where any non-resident derives income under any contract or agreement with any person in relation to the carrying on in this State by that person of a business of distributing, exhibiting, or exploiting motion picture films, or of leasing such films to other persons, or of licensing other persons to exhibit or display such films, or in relation to the acquisition of any advertising matter for use in connection with such films, and that business –

(a) is controlled principally by non-residents;

(b) is carried on by a company, a majority of the shares in which is held by or on behalf of non-residents; or

(c) is carried on by a company which holds, or on behalf of which other persons hold, a majority of the shares in a non-resident company –

the non-resident deriving that income shall be liable to pay income tax thereon.

(2)  [Section 101 Subsection (2) amended by No. 55 of 1965, s. 3 and Sched. 1 ]Where any non-resident has derived such income, an amount equal to twelve and one-half per cent of the gross income so derived shall be included in his taxable income.

(3)  Any person carrying on business in this State, who has entered into any such contract or agreement with any non-resident, shall for all purposes of this Act be the agent of that non-resident, and shall not make any payment of any income assessable under this Division to such non-resident, or transfer out of this State any such income for the purpose of making such payment, unless and until arrangements have been made to the satisfaction of the Commissioner for the payment of any income tax which has been or may be assessed to be paid by that non-resident.

(4)  [Section 101 Subsection (4) amended by No. 55 of 1965, s. 5 ]Any person who makes any payment or transfers any income in contravention of subsection (3) hereof shall be guilty of an offence.

Penalty:  The amount of tax which is or becomes payable in respect of that income by the non-resident for whom the person paying or transferring the income is the agent, and in addition a fine of two hundred dollars.

Division XVI - Insurance with non-residents

102.   Interpretation

In this Division –

insurance contract means a contract or guarantee whereby liability is undertaken, contingent upon the happening of any specified event, to pay any money or make good any loss or damage, but does not include a contract of life assurance;

insured event means an event upon the happening of which the liability under an insurance contract arises;

insured person means a person with whom any insurance contract is entered into by an insurer;

insured property means the property the subject of an insurance contract made or given by an insurer;

insurer means any non-resident who undertakes liability under an insurance contract.

103.   Income derived by non-resident insurer

(1)  Where an insured person, whether a resident or non-resident, has entered into an insurance contract with an insurer, and the insured property is situate in this State, or is used wholly or partly in this State, the premium paid or payable under the contract shall be included in the assessable income of the insurer, and shall be deemed to be derived by him from sources in this State, and, unless the contract was made by a principal office or branch established by the insurer in this State, this Division shall apply to that premium.

(2)  Where an insured person who is a resident has entered into an insurance contract with an insurer, and an agent or representative in this State of the insurer was in any way instrumental in inducing the entry of the insured person into that contract, any premium paid or payable under the contract shall, wherever the insured property is situate, or the insured event may happen, be included in the assessable income of the insurer and shall be deemed to be derived by him from sources in this State, and, unless the contract was made by a principal office or branch established by the insurer in this State, this Division shall apply to that premium.

104.   Taxable income of non-resident insurer

The insurer shall be deemed to have derived in any year, in respect of the premiums paid or payable in that year under such contracts, a taxable income equal to twenty-five per centum of the total amount of such premiums, excluding any portion thereof actually paid away by way of re-insurance effected in this State with any other person.

105.   Liability of agents of insurer

(1)  The insured person and any person in this State acting on behalf of the insurer shall be the agents of the insurer, and shall be jointly and severally liable as such for all purposes of this Act. If either of those persons pays or credits to the insurer any amount in respect of the insurance contract before arrangements have been made to the satisfaction of the Commissioner for the payment of any income tax which has been or may be assessed under this Division in respect of that amount, that person shall be personally liable to pay that tax.

(2)  Notwithstanding any other provision of this Act, no such premium shall be an allowable deduction to the insured person unless arrangements have been made to the satisfaction of the Commissioner for the payment of any income tax which has been or may be assessed in respect of that premium.

(3)  Every person who has paid any premium due under an insurance contract shall furnish, with his return for the year of income in which the payment was made, particulars as to the name and address of the insurer and the amount paid to him.

106.   Rate in special circumstances

Where the insurer satisfies the Commissioner that, on account of special circumstances, it is necessary that the rate of tax payable by him under this Division should be ascertained at the time when premiums are paid to him, the Commissioner may direct that the tax so payable in respect of premiums paid during any financial year shall be calculated at the rate which would have been payable if an assessment had been made in respect of those premiums at the date when they were paid.

Division XVII - Special provisions relating to companies

107.   Company's assessments

(1)  Subject to the provisions of this Act, the taxable income of every company resident in this State shall be the full amount of the income of such company during the year of income.

(2)  The taxable amount of the income of any such company shall not be less in any year than the amount of such dividends for that year, except where income tax has been paid in any previous year in respect of any portion of the amount of such dividends, and then to the extent only of such portion.

(3)  The Commissioner may, if he thinks fit, accept as correct the statement concerning any such income as aforesaid contained in any accounts of the company.

(4)  Where any company is incorporated elsewhere than in this State and carries on mining operations in this State –

(a) it shall be deemed to have its chief place of business in this State; and

(b) if it carries on the operations aforesaid in connection with other business and also carries on business outside this State –

(i) the proportion of dividends which may be deducted as provided by subsection (1) hereof shall be so much only of the dividends as are profits derived from the business of the company carried on in this State; and

(ii) the portion of its income which represents profits in respect of any products derived from this State for use outside this State in the processes of any business, other than mining, carried on by it outside this State, may be assessed by the Commissioner at a sum equal to $30 for every 100 tonnes of such products derived from this State.

108.   Assessable income of certain companies and savings banks

(1)  The assessable income of any –

(a) mining company which has its head office in this State, but which carries on the whole of its mining operations elsewhere than in this State, shall be one-half of all dividends declared or ascertained or becoming due to the shareholders of such company;

(b) bank for savings established under the Savings Banks Act 1848 , shall be an amount equal to five per cent of the amount of its reserve fund on the thirtieth day of June in the year of income;

(c) company, the head office or chief place of business of which is not in this State and which carries on in this State fire, accident, fidelity guarantee, or marine insurance business, shall be a sum equal to twenty five per cent of the net premiums, excluding any portion of such premiums actually paid away by way of re-insurance effected in this State with any other person, received by such company in this State –

in the year of income, and no deductions shall be allowed in respect thereof.

(2)  The taxable amount of the income of any company not having its head office or chief place of business in this State and not being a company which carries on mercantile business in this State shall be the net income of such company during the year of income from its business in this State; such net income to be determined as provided bythis Part, but, if the same cannot be satisfactorily determined by the Commissioner from the information available to him, the Commissioner may make an assessment of the amount upon which, in his judgment, income tax ought to be charged, and the company assessed shall be liable to income tax thereon, excepting in so far as it establishes, on objection, that the assessment is excessive.

(3)  In cases not otherwise specifically provided for by this Act, the assessable income of any company entitled to income arising, accruing, received in, or derived from this State shall be the income of such company during the year of income, and such company shall pay income tax upon the taxable amount of such income ascertained as provided by this Part.

109.   Income of non-resident company carrying on mercantile business in the State

[Section 109 Subsection (7) amended by No. 55 of 1965, s. 5 ]

(1)  Subject to the provisions of subsection (5) hereof, the taxable amount of the income of every company which is not resident in this State, and which carries on mercantile business in this State, shall be the amount of the net income derived or deemed to be derived from, or received in, this State by such company during the year of income.

(2)  For the purposes of this section, where a company which is not resident in this State (herein termed "the principal"), by means of a company registered or carrying on business in this State, or by means of any person in this State (herein termed "the agent") sells or disposes of any goods, whether such goods are in this State or are by the contract to be brought into this State, and whether the contract is made by the agent in this State or by or on behalf of the principal out of this State, and whether the moneys arising therefrom are paid to or received by the principal directly or otherwise, the total amount for which such goods were sold or disposed of in the year of income shall be deemed to be income accruing to the principal in that year from a business carried on by him in this State.

(3)  If any such company has not a public officer, every such agent as aforesaid, unless exempted by the Commissioner, shall, as regards such income, make the returns, be assessed, be liable to income tax, and otherwise be subject to the provisions of this Act, and to do all acts and things thereunder as if such income were actually the income of the agent, and the tax shall be assessed as if the income were the income of one company; but nothing herein contained shall exempt or discharge the principal from liability to pay income tax upon such income; and the agent shall have the same right to indemnity against the principal in respect of the tax paid by him as is conferred upon a representative taxpayer in other cases.

(4)  The regulations may provide for the making, obtaining, adjusting, and settling of returns by or with any such agent as aforesaid, in such manner and form, and with such particulars and proof as may be prescribed, and the making, completing, and enforcing of assessments under this section, and generally for the purposes thereof.

(5)  If in any year of tax the Commissioner is –

(a) of opinion from the information available to him that the net income of the company, or any other particulars required by him for assessing the taxable amount of the income of the company in the manner provided by subsection (1) hereof, cannot be accurately ascertained; or

(b) not satisfied that the return furnished by or on behalf of the company discloses a true and accurate statement of the affairs of the company with respect to such net income or other particulars –

the Commissioner may assess the taxable amount of the income of the company, in so far as it arises from the sales of any goods belonging to the company and sold by it as aforesaid, at a sum which he considers reasonable, being not less than two and one-half per cent, and not more than twenty per cent, of the gross amount of the sales of such goods as aforesaid, and the company shall be liable to income tax in respect of such assessment, except in so far as it establishes, on objection, that the assessment is excessive.

(6)  Where the taxable amount of the income of such company is assessed in accordance with the provisions of subsection (5) hereof, such taxable amount shall not be subject to any exemption or deduction under any other provision of this Act.

(7)  [Section 109 Subsection (7) amended by 4 Geo. VI No. 15, s. 3 ]All the foregoing provisions of this section for assessing the taxable income of a company which is not resident in this State and which carries on mercantile business in this State shall, with any necessary alteration of terms, apply as well to the assessment of the taxable amount of the income of a person or partnership, not being a company, and not being a resident in this State, who carries on mercantile business in this State; but such person shall not be liable to any income tax in respect of the moneys arising from sales made by him in the manner described in subsection (2) hereof if the total amount so arising in the year of income is less than one thousand dollars and the tax shall be assessed at the rates applicable to an individual as if the income were the income of one individual.

(8)  If, for the purpose of any business of his principal resident outside this State, an agent does in this State for or on behalf of such principal any of such acts or things as are included in the definition of "agent" as defined in section two , the principal shall be deemed, for the purposes of this section, to carry on business in this State, and the income derived by the principal from the business so seemed to be carried on by him shall be deemed to be income of the principal derived from or received in this State.

Division XVIII - [Part IV, Div. XVIII Heading amended by 6 Geo. VI No. 4, s. 2 ]Relief against double taxation: Rebates

110.   Deduction of tax paid abroad

[Section 110 Amended by 25 Geo. V No. 78 ][Section 110 Amended by 2 Geo. VI No. 56, s. 2 ][Section 110 Amended by 4 Geo. VI No. 15, s. 3 ][Section 110 Amended by 5 Geo. VI No. 43, s. 3 ]

(1)  Except as provided by this section, where a taxpayer, not being a taxpayer to whom section one hundred and eleven applies, derives income from any source outside this State, he shall be entitled to deduct from the amount of income tax payable by him under this Act in respect of the income so derived –

(a) such sum as he shall prove to the satisfaction of the Commissioner to have been paid by him by way of income tax of the like nature as is imposed under this Act in respect of such income in the State, dominion, or country whence the same was so derived; or

(b) a sum equal to a tax upon the amount of such income calculated at the average rate payable by such taxpayer under this Act on the whole of his income which is of the same class as the income derived as aforesaid –

whichever is the less, but no such deduction shall be allowed in respect of any part of the income so derived if no income tax has been paid in respect of such part in the State, dominion, or country whence it was so derived.

(2)  The deduction provided by subsection (1) hereof shall not –

(a) include or have relation to any income tax paid under any law of the Commonwealth;

(b) apply to any taxpayer who is assessable under the provisions of section one hundred and eleven ; or

(c) be applied in the case of a person who –

(i) is resident in this State;

(ii) carries on any manufacturing business in this State; and

(iii) sells outside this State during any year of income any portion of the products manufactured by him in this State –

in relation to the income tax payable by him in respect of income attributable to profits arising from the sale outside this State of products manufactured by him in this State, except in so far as such deduction may reduce the amount of such tax to not less than two-thirds of the amount which, but for such deduction, would have been payable by him in respect thereof.

(3)  Where any resident taxpayer derives any income from mortgage upon land situate outside this State, and land tax is levied upon or in respect of the amount of such mortgage under the law of the State, dominion, or country in which the land comprised in such mortgage is situate, such taxpayer shall be entitled to deduct, from the amount of income tax payable by him under this Act upon the income so derived, such sum as he shall prove to the satisfaction of the Commissioner to have been paid by him in such State, dominion, or country during the year of income by way of land tax upon or in respect of the amount of such mortgage.

(4)  Where any taxpayer resident in this State –

(a) carries on mining business in this State; and

(b) sells outside this State any mining product produced in this State –

he shall be entitled in relation to the income tax payable by him in respect of income attributable to the profits arising from such sale to the like deduction as is provided by subsection (1) hereof in so far as such deduction shall not reduce the amount of such tax to less than eighty-five per centum of the amount which, but for this provision, would be payable in respect thereof.

111.   Rebate of tax in the case of certain manufacturers

(1)  A person who is not resident in this State –

(a) if he –

(i) carries on manufacturing business in this State;

(ii) sells outside this State, during any year of income, not less than six-tenths in value of the products manufactured by him in this State during such year; and

(iii) has proved to the satisfaction of the Commissioner that he has paid any sum by way of income tax in some other State or in some dominion or country beyond this State, upon any income arising from the sale in such other State, or in such dominion or country, of any portion of the products so manufactured by him as aforesaid; or

(b) if he –

(i) is chargeable with income tax under this Act in respect of the sale by him in any year in this State of goods manufactured by him in some other State or in some dominion or country outside this State; and

(ii) has proved to the satisfaction of the Commissioner that he has paid any sum by way of income tax in such other State or in such dominion or country as aforesaid, upon any income arising in such year from such sale as aforesaid –

shall be entitled to deduct, from the amount of income tax which would otherwise be payable by him under this Act, the sum so paid, or the amount payable under this Act by way of income tax, calculated as hereinafter provided, on the amount of income in respect of which such sum was so paid whichever is the less; but the deduction allowed by this section shall not in any case exceed one-third where the goods are manufactured in this State, or where the goods are manufactured elsewhere, two-thirds of the amount of income tax imposed under this Act which, but for such deduction, would be payable by the taxpayer in respect of the income to which such deduction relates, and no deduction shall be allowed under this section in respect of any income tax paid under any Commonwealth Act or in respect of any tax other than income tax of the like nature as is imposed under this Act.

(2)  For the purpose of calculating any deduction as provided by subsection (1) hereof, the rate to be applied shall be the rate of income tax which would be payable under this Act upon an amount equal to the whole of the taxpayer's income of the class in respect of which the deduction is applicable.

(3)  Subject to the foregoing provisions of this section, where a person not resident in this State in the course of a business carried on by him outside this State, but in Australia, sells in this State (otherwise than through the agency of a branch of his business maintained in this State, and which is substantially self-controlled), goods manufactured outside this State and not manufactured by him, the Commissioner may allow such person to deduct, from the amount of income tax which otherwise would be payable under this Act in respect of the income arising from such sale, a sum equal to –

(a) one-half of such tax; or

(b) the amount proved to the satisfaction of the Commissioner to have been paid by such person elsewhere than in this State by way of income tax of the like nature as is imposed under this Act in respect of the income so arising –

whichever is the less.

111A.   Rebates

[Section 111A Inserted by 6 Geo. VI No. 4, s. 2 ]

(1)  [Section 111A Subsection (1) amended by No. 67 of 1994, s. 3 and Sched. 1 ]Where in respect of the income of any year of income of any taxpayer the aggregate of the taxes assessed under –

(a) this Act; and

(b) the Income Tax Assessment Act 1936 of the Commonwealth –

(c) .  .  .  .  .  .  .  .  

or any Commonwealth Act amending or replacing those Acts exceeds nine-tenths of the taxable income a rebate shall be allowed of so much of that excess as bears to that excess the same proportion as the amount of the tax assessed under this Act bears to such aggregate as aforesaid.

(2)  For the purposes of this section any reference to any tax assessed shall not include any additional tax for payment of which the taxpayer may be liable by reason of any evasion of or non-compliance with any provision of any Act under which any such tax is assessed.

PART V - SPECIAL INCOME TAX

Division I - Unemployed Relief Tax

112.   

[Section 112 Repealed by 5 Geo. VI No. 33, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

113.   

[Section 113 Repealed by 5 Geo. VI No. 33, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

114.   

[Section 114 Repealed by 5 Geo. VI No. 33, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

115.   

[Section 115 Repealed by 5 Geo. VI No. 33, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

116.   

[Section 116 Repealed by 5 Geo. VI No. 33, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

117.   

[Section 117 Repealed by 4 Geo. VI No. 15, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

118.   

[Section 118 Repealed by 4 Geo. VI No. 15, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

119.   

[Section 119 Repealed by 4 Geo. VI No. 15, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

120.   

[Section 120 Repealed by 5 Geo. VI No. 33, s. 2 and Sched. 1 ].  .  .  .  .  .  .  .  

Division II - Special tax on profits from liquor

121.   Special tax on profits from liquor

(1)  [Section 121 Subsection (1) amended by No. 55 of 1965, s. 3 and Sched. 1 ]In any case in which the taxable amount of the income of any taxpayer or any part thereof is derived from the profits on the manufacture by him, or on the sale by him or any person on his behalf, of any liquor as defined by the Licensing Act 1932 manufactured by him and sold under a wholesale licence under that Act, there shall be charged, collected, levied, and paid to the Commissioner by such taxpayer for the year ending on the thirty-first day of December 1936, and for every subsequent year, in respect of such taxable amount or part thereof, as the case may be, so derived, an income tax at such rate per dollar as Parliament shall declare and enact in respect of such year.

(2)  The tax payable under this section shall be in addition to any other tax payable by such taxpayer under this Act.

(3)  Such taxpayer shall be entitled to a rebate from any tax payable by him under this section equal to the amount of the fee paid by him in respect of any such licence as aforesaid in the year in which such profits were derived, but such rebate shall not exceed the amount of such tax.

(4)  Where such taxpayer is a company, the taxable amount of the income of the company shall, for the purposes of this section, be deemed to be the full income of the company before any deduction has been made therefrom in respect of any dividends declared, ascertained, or become due by the company.

PART VI - RETURNS AND ASSESSMENTS

Division I - Returns

122.   Annual and other returns

(1)  Every person shall, if required by the Commissioner by notice published in the Gazette, furnish to the Commissioner in the prescribed manner, within the time specified in the notice, or such extended time as the Commissioner may allow, a return signed by him setting forth a full and complete statement of the total income derived by him during the year of income, and of any deductions claimed by him. Provided that the Commissioner may in the notice exempt from liability to furnish returns such classes of persons not liable to pay income tax as he thinks fit, and any person so exempted need not furnish a return unless he is required by the Commissioner to do so.

(2)  If the taxpayer is absent from the State or is unable from physical or mental infirmity to make such return, the return may be signed and delivered by some person duly authorized.

(3)  Every person shall, if required by the Commissioner, whether before or after the expiration of the year of income, furnish to the Commissioner, in the manner and within the time required by him, a return, or a further or fuller return, of the income or any part of the income derived by him in any year, whether on his own behalf or as agent or trustee, and whether a return has or has not previously been furnished by him for the same period.

(4)  If no income has been so derived by the person so required to furnish a return, he shall nevertheless furnish a return stating that fact.

(5)  Every person, whether a taxpayer or not, if required by the Commissioner, shall, in the manner and within the time required by him, furnish any return required by the Commissioner for the purposes of this Act.

(6)  Every return purporting to be made or signed by or on behalf of any person shall be deemed to have been duly made by him or with his authority until the contrary is proved.

(7)  It shall be the duty of every taxpayer and of every person by whom a return is prescribed to be made or from whom a return is required by the Commissioner to procure the prescribed form for such return; and no person shall be relieved from liability by reason of his not having received a form of return or notice to furnish a return.

123.   Certificate of sources of information

(1)  Any person who charges directly or indirectly any fee for preparing or assisting in the preparation of a return required by this Act or the regulations or by the Commissioner shall sign a certificate (in this Act called "an agent's certificate") in the prescribed form to be indorsed on or annexed to the return, setting out the sources of information from which the return was compiled.

(2)  Every person carrying on business who does not furnish with his return an agent's certificate shall furnish particulars in the prescribed form, indorsed on or annexed to the return, setting out the sources of information from which the return was compiled.

Division II - Assessments

124.   Powers of Commissioner in relation to assessments

(1)  From the returns, and from any other information in his possession, or from any one or more of these sources, the Commissioner shall make an assessment of the amount of the taxable income of any taxpayer, and of the tax payable thereon.

(2)  If –

(a) any person makes default in furnishing a return;

(b) the Commissioner is not satisfied with the return furnished by any person; or

(c) the Commissioner has reason to believe that any person who has not furnished a return has derived taxable income –

the Commissioner may make an assessment of the amount upon which in his judgment income tax ought to be levied, and that amount shall be the taxable income of that person for the purposes of subsection (1) hereof.

(3)  The Commissioner may at any time during any year, or after its expiration, make an assessment of the taxable income derived in that year by any taxpayer, and of the tax payable thereon.

(4)  In making such assessments –

(a) the accounts of income from business and of income from property shall be calculated separately;

(b) in assessing the income tax for any year the gross amount of the whole income of the taxpayer, from all sources during the year of income, and whether previously taxed at the source or not, shall be taken as the basis of calculation;

(c) the income received by any taxpayer in a representative capacity shall, for the purposes of taxation, be deemed separate and distinct from income arising or accruing to him beneficially, and, where a taxpayer is trustee of two or more estates under different instruments or appointments, the income of each such estate shall, for purposes of taxation, be deemed separate and distinct from that of the others.

(5)  Where a special assessment is made by the Commissioner under this section for a year of tax in respect of which rates have not been declared by Parliament such assessment shall be based, and the tax shall be payable, in accordance with the relevant rates declared in respect of the immediately preceding year of tax.

125.   Taxation of certain persons temporarily in the State

(1)  Wherever any person temporarily exercising any calling in the State will, in the opinion of the Commissioner, leave the State before income tax will be recoverable from him in the ordinary course, income tax shall be calculated and payable by him daily while he is in the State, and the Commissioner may assess the same for each day, or include the tax for any number of days in one assessment.

(2)  The Commissioner may at any time require such taxpayer to give security by way of bond or deposit or otherwise to the satisfaction of the Commissioner for the due assessment and payment of income tax on the profits derived from any such calling.

(3)  The tax payable at any time under this section shall be at the rate in force in respect of income derived from personal exertion during the year immediately preceding the last previous first day of July; but if at the time when the tax becomes payable no rate of tax has been fixed for the income derived during that year, the tax shall be payable at the rate then last previously in force.

126.   Assessment of tax before passing of rating Act

(1)  Where, under the provisions of this Act, any income tax becomes payable in respect of any dividend or of any lottery during the first six months of any year of tax before the passing of an Act to impose an income tax in respect of that year, the same may be assessed, levied, and collected at the rate imposed in respect of the like subject-matter for the immediately preceding year of tax, and shall be payable and paid accordingly.

(2)  If in any such case the rate imposed in respect of the same subject-matter by an Act imposing an income tax in respect of the year of tax, when such tax became payable, is greater or less than the corresponding rate for the preceding year of tax, the Commissioner may make any adjustment that may be necessary to ensure that the ultimate incidence of such tax shall be at the rate imposed for the year of tax in which it is payable.

(3)  Where any taxpayer has paid income tax in respect of any year of tax and subsequently to such payment the rates declared by Parliament in respect of that year are increased or reduced the taxpayer shall be –

(a) liable to pay, and shall pay, to the Commissioner forthwith; or

(b) entitled to receive a refund of –

the difference between the amount of tax so paid and the amount which would have been payable by him if such increased rate, or reduced rate as the case may be, had been in force at the time of such payment.

127.   All persons liable to be assessed if taxable

Where under this Act any person is liable to pay tax, the Commissioner may make an assessment of the amount of such tax.

128.   Amendment of assessments

(1)  The Commissioner may, subject to this section, at any time amend any assessment by making such alterations therein or additions thereto as he thinks necessary, notwithstanding that tax may have been paid in respect of the assessment.

(2)  Where a taxpayer has made to the Commissioner a full and true disclosure of all the material facts necessary for his assessment, and an assessment is made after that disclosure, no amendment of the assessment increasing the liability of the taxpayer in any particular shall be made except to correct an error in calculation or a mistake of fact; and no such amendment shall be made after the expiration of three years from the date upon which the tax became due and payable under that assessment.

(3)  No amendment effecting a reduction in the liability of a taxpayer under an assessment shall be made except to correct an error in calculation or a mistake of fact; and no such amendment shall be made after the expiration of three years from the date upon which the tax became due and payable under that assessment.

(4)  Provided that, where an assessment has, under this section, been amended in any particular, the Commissioner may, within three years from the date upon which the tax became due under the amended assessment, make, in or in respect of that particular, such further amendment in the assessment as, in his opinion, is necessary to effect such reduction in the liability of the taxpayer under the assessment as is just.

(5)  Provided further that, where an application for an amendment in his assessment is made by a taxpayer within three years from the date upon which the tax became due and payable under that assessment, and the taxpayer has supplied to the Commissioner within that period all information needed by the Commissioner for the purpose of deciding the application, the Commissioner may amend the assessment when he decides that application notwithstanding that that period has elapsed.

(6)  Nothing contained in this section shall prevent the amendment of any assessment in order to give effect to the decision upon any appeal or review, or its amendments by way of reduction in any particular in pursuance of an objection made by the taxpayer or pending any appeal or review.

(7)  Where –

(a) any provision of this Act is expressly made to depend in any particular upon a determination, opinion, or judgment of the Commissioner; and

(b) any assessment is affected in any particular by that determination, opinion, or judgment –

then, if after the making of the assessment it appears to the Commissioner that the determination, opinion, or judgment was erroneous, he may correct it and amend the assessment accordingly, in the same circumstances as he could under this section amend an assessment by reason of a mistake of fact.

(8)  Notwithstanding anything contained in this section, when the assessment of the taxable income of any year includes an estimated amount of income derived by the taxpayer in that year from an operation or series of operations the profit or loss on which was not ascertainable at the end of that year owing to the fact that the operation or series of operations extended over more than one or parts of more than one year, the Commissioner may, at any time within three years after ascertaining the total profit or loss actually derived or arising from the operation or series of operations, amend the assessment so as to ensure its completeness and accuracy on the basis of the profit or loss so ascertained.

(9)  Where by reason of any amendment the taxpayer's liability is reduced, the Commissioner may refund any tax overpaid.

(10)  Except as otherwise provided, every amended assessment shall be an assessment for all the purposes of this Act.

129.   Procedure where notice of assessment not served

(1)  Where a taxpayer has duly furnished to the Commissioner a return of income, and no notice of assessment in respect thereof has been served within twelve months thereafter, he may, in writing, by registered post request the Commissioner to make an assessment.

(2)  If, within three months after the receipt by the Commissioner of the request, a notice of assessment is not served upon the taxpayer, any assessment issued thereafter shall, in respect of that income, be deemed to be an amended assessment, and for the purpose of determining whether such amended assessment may be made, the taxpayer shall be deemed to have been served on the last day of the three months with a notice of assessment in respect of which income tax was payable on that day.

130.   Notice of assessment

As soon as conveniently may be after any assessment is made, the Commissioner shall serve notice thereof, in writing, by post or otherwise, upon the person liable to pay the tax.

131.   Validity of assessment

The validity of any assessment shall not be affected by reason that any of the provisions of this Act have not been complied with.

132.   Separate assessment of different interests

(1)  Income which is received by a taxpayer in a representative capacity shall be assessed separately from, and independently of, any income received by or accruing to such taxpayer beneficially.

(2)  Where a taxpayer represents several estates or interests under separate instruments or appointments, the income received by him in respect of each such estate or interest shall be assessed separately from, and independently of, the income received in respect of the other or others.

PART VII - Objections, Review, and Appeal

Division I - Courts of review

133.   Appointment of courts

[Section 133 Amended by No. 72 of 1978, s. 11 ][Section 133 Amended by No. 68 of 1994, s. 3 and Sched. 1 ]

(1)  The Governor may appoint any –

(a) judge; or

(b) commissioner appointed under the Local Courts Act 1896 –

as a court of review for the purposes of this Act.

(2)  Upon the gazettal of a notice of such appointment, the court of review so constituted shall have jurisdiction subject to this Act to hear and determine objections to assessments lodged as hereinafter provided within the limits set forth in such notice.

(3)  [Section 133 Subsection (3) added by 2 Geo. VI No. 56, s. 2 ]In lieu of appointing a court of review as provided by subsection (1) hereof, the Governor at any time may –

(a) make arrangements with the Governor-General of the Commonwealth for the performance by the Board of Review appointed under the Income Tax Assessment Act 1936 , or any Commonwealth Act replacing the same, of the functions of a court of review under this Act;

(b) appoint the chairman and members of such Board as a court of review under and for the purposes of this Act, with tenure of office conterminous with their tenure of office under that Commonwealth Act ; and

(c) remove or suspend from office any such chairman or member upon his removal or suspension under such Commonwealth Act .

(4)  [Section 133 Subsection (4) added by 2 Geo. VI No. 56, s. 2 ]While an arrangement made as provided by subsection (3) hereof is in force –

(a) any reference in this Act to a court of review shall be construed as a reference to the Board of Review constituted under such arrangement;

(b) the provisions of section one hundred and forty-two shall not apply to the Board of Review; and

(c) at all sittings of the Board –

(i) any two members shall form a quorum;

(ii) the decision of the majority shall prevail; and

(iii) the chairman shall have a deliberative vote only –

and in other respects the procedure of the Board shall be as may be prescribed or as the Board may determine.

Division II - Review of assessments

134.   Objections

(1)  A taxpayer dissatisfied with any assessment under this Act may, within sixty days after service of the notice of assessment, post to or lodge with the Commissioner an objection in writing against the assessment, stating fully and in detail the grounds on which he relies. Provided that, where the assessment is an amended assessment, the taxpayer shall have no further right of objection than he would have had if the amendment had not been made, except to the extent to which by reason of the amendment a fresh liability in respect of any particular is imposed on him or an existing liability in respect of any particular is increased.

(2)  The Commissioner shall consider the objection, and may either disallow it, or allow it either wholly or in part, and shall serve the taxpayer, by post or otherwise, with written notice of his decision.

(3)  A taxpayer dissatisfied with the decision may, within sixty days after such service, in writing, request the Commissioner to refer the decision to a court of review for review.

(4)  If, within sixty days after receiving the request, the Commissioner does not refer the decision or forward the objection, the taxpayer may at any time thereafter give him notice in writing to do so, and the Commissioner shall within sixty days after receiving the notice refer the decision or forward the objection to a court accordingly. Provided that, if, within sixty days after receiving the request, the Commissioner requires the taxpayer, in writing, to furnish information relating to the decision or objection, the Commissioner shall not be bound to refer the decision or forward the objection to a court until the expiration of sixty days after the receipt by him of that information.

(5)  Upon every such reference –

(a) the taxpayer shall be limited to the grounds stated in his objection; and

(b) the burden of proving that the assessment is excessive shall lie upon the taxpayer.

(6)  If the assessment has been reduced by the Commissioner after considering the objection, the reduced assessment shall be the assessment to be dealt with on the reference.

135.   Review by court

(1)  A court of review shall have power to review such decisions of the Commissioner or a deputy commissioner as are referred to it under this Act.

(2)  For the purposes of reviewing such decisions, the court of review shall have all the powers and functions of the Commissioner in making assessments, determinations, and decisions under this Act, other than decisions to remit additional tax or any part thereof, and such assessments, determinations, and decisions of the court and its decisions upon review, shall for all purposes (except for the purpose of objections thereto and review thereof and appeals therefrom) be deemed to be assessments, determinations, or decisions of the Commissioner.

(3)  Upon every reference to the court of review it shall give a decision in writing, and may either confirm, reduce, increase, or vary the assessment.

(4)  Upon the request of the Commissioner or the taxpayer, made at the hearing, the court when giving its decision shall state in writing its findings of fact and its reasons in law for the decision.

136.   Sittings of court of review

(1)  Sittings of each court of review for the purpose of hearing and determining objections shall be held at such times and places as the Governor may appoint.

(2)  The Commissioner shall give not less than fourteen days' notice by letter addressed to the taxpayer affected, and also by public advertisement in a newspaper, of the time and place appointed by the Governor for the hearing of objections.

(3)  Every registrar or bailiff of a local court having jurisdiction at any place where the Governor appoints a court of review to be held shall be and act as registrar or bailiff, as the case may be, of and for the purposes of any court of review so appointed to be held.

137.   Objections to assessment heard by court of review

[Section 137 Amended by 26 Geo. V No. 91, s. 2 ]All objections under this Act which –

(a) have not been allowed by the Commissioner; and

(b) have been transmitted at the request of the taxpayer to a court of review for determination –

shall be heard and determined in the manner hereinafter mentioned by a court of review; and every such objection shall be heard with closed doors.

138.   List of objections to be made

Where objections made to any assessment are disallowed by the Commissioner, he shall, as prescribed, prepare and lay before the court of review, prior to the opening of the court, a list of all objections which are to be heard and determined; and the court shall enter all decisions given by it in such list, and shall initial all such entries; and the Commissioner shall correct the assessment book from such list accordingly.

139.   Liability to assessment or tax not to disqualify judge, &c.

No judge or commissioner of a court of review shall, solely on account of his liability to be assessed under this Act, or of his liability to tax under any Act, be deemed to be interested in any matter upon which he may be called upon to adjudicate or determine.

140.   Decision of court to be final, except as provided

(1)  A court of review shall be a court of record, and shall have full power of hearing and determining all objections in relation to assessments.

(2)  Subject to the provisions of this Part as to appeals on points of law, the decision of the court shall be final, and the onus of proof shall rest with the objector.

141.   Power of court to examine on oath and call for persons and papers

[Section 141 Amended by No. 73 of 1993, Sched. 1, Applied:30 Mar 1998] Every court of review shall have all the powers and authorities conferred by the Magistrates Court (Civil Division) Act 1992 upon the court or a magistrate under that Act respecting summoning and examining witnesses, compelling their attendance and the answering of questions and the production of papers, and for all other purposes touching the hearing of matters before the court; and a court of review may make such order as to costs as the court thinks proper, and every such order shall be final.

142.   Practice and procedure

[Section 142 Amended by No. 73 of 1993, Sched. 1, Applied:30 Mar 1998] Subject to the provisions of this Act, all proceedings in connection with the hearing and determination of objections shall, so far as practicable, be in conformity with the provisions of the Magistrates Court (Civil Division) Act 1992 and the Rules of Court made under that Act, so far as they are applicable; but no notice of defence or answer of any kind to any notice of objection shall be required to be entered.

143.   Costs of objection

Any court of review may, at its discretion, refuse to award any costs to either party, or may order either the Commissioner or the objector to pay to the other party to any such objection all or so much of the costs properly and necessarily incurred in reference thereto as shall to such court seem just; and the court shall, upon determining such objection, fix, in a summary way, the amount of the costs, if any, to be paid.

144.   Costs: How recoverable from objector

[Section 144 Amended by No. 73 of 1993, Sched. 1, Applied:30 Mar 1998] In every case in which the court of review shall order the objector to pay any costs, the amount of such costs as fixed by the court shall be recoverable by execution against the lands and goods and chattels of the objector in accordance with the provisions of the Magistrates Court (Civil Division) Act 1992 , and the Rules of Court made under that Act, relating to execution.

145.   Costs: How recoverable from Commissioner

In every case in which the court of review shall order the Commissioner to pay to the objector any costs of objection, the amount of such costs as fixed by the court shall be a debt due by the Commissioner, and shall be payable by him out of the moneys to be provided by Parliament for the purposes of this Act.

146.   Right of Commissioner to appear in support of assessments

The Commissioner, any acting or deputy commissioner, or other officer, may appear in support of any assessment, and any person objecting thereto may appear in person or by his solicitor.

147.   Right of Commissioner to be represented at hearing

At the hearing of any objection against any assessment made by the Commissioner under this Act, the Commissioner shall be entitled to be represented by any officer appointed under this Act or by counsel, and shall be entitled to call experts and other witnesses to support such assessment.

148.   Adjournment of court or hearing

The judge or commissioner of the court of review may adjourn any court, or the hearing of any objection under this Act, in such manner as he may think fit.

Division III - Appeals on points of law

149.   Appeal from decision of court on points of law

Notwithstanding anything to the contrary in this Act or any other Act, the decision of the court of review on any objection before it shall be subject to appeal to the Supreme Court on questions of law, in the manner and subject to the provisions hereinafter contained.

150.   Notice of appeal

Within ten days after the decision to be appealed against has been given, the appellant shall give notice of appeal, and, except where the appellant is the Commissioner, give security for costs; and with respect to the appeal the following provisions shall apply:

(a) Notice of appeal shall be given by the appellant by filing with the registrar of the court of review, and serving on the respondent, a notice in writing, briefly stating the question of law forming the ground of the appeal;

(b) The security for costs shall be to such amount and in such form as is approved by the court of review;

(c) The appeal shall be in the form of a special case, to be agreed on by the parties, or if within seven days after notice of appeal they cannot agree, then to be settled by the judge or commissioner of the court of review at the request of either of the parties;

(d) The special case, when agreed on or settled as aforesaid, shall, within seven days thereafter, be transmitted to the Registrar of the Supreme Court by the appellant, who shall also, within thirty days after the notice of appeal was filed with the registrar of the court of review as aforesaid, set the special case down for hearing, and give notice thereof to the other party.

151.   Depositions, &c., may be used upon hearing appeal

Upon the argument upon any special case, the notes, if any, taken by the court of review, and the depositions, if any, and documents taken or produced at the proceedings before the court of review to which the special case relates, or copies thereof certified by the judge or commissioner of the court of review, may be used by the Supreme Court or any party to such special case for the purposes of such special case.

152.   When appeal deemed to be abandoned

The appeal shall, in every case, be deemed to be abandoned if the appellant fails to –

(a) file or serve such notice of appeal, or to give security for costs, within the time hereinbefore limited in that behalf; or

(b) set down the special case for hearing within the time hereinbefore limited in that behalf, or such extended time as the Supreme Court or a judge thinks fit to grant, on application made by the appellant before the expiration of the time limited as aforesaid.

153.   Order of Supreme Court final

On the hearing of the appeal the Supreme Court may make such order as it thinks fit, and such order shall be final and conclusive on all parties.

154.   Costs of appeal

The costs of the appeal shall be in the discretion of the Supreme Court.

155.   Result of appeal to be communicated

The result of every appeal shall be forthwith communicated to theregistrar of the court of review from which the appeal was made, by certificate under the hand of the Registrar of the Supreme Court.

156.   Power of one judge to hear appeal

Every appeal to the Supreme Court from a court of review constituted by a commissioner may be heard by a single judge.

157.   Powers of judge in chambers

The authority and jurisdiction vested in the Supreme Court under this Act may, subject to any rules and orders of such Court in relation thereto, be exercised by a judge of such Court sitting in chambers, and as well in vacation as in term time.

158.   Rules of Court

The judges in the exercise of their powers under the Supreme Court Civil Procedure Act 1932 , may make Rules of Court for the purposes of this Act.

159.   Pending appeal not to delay payment of tax

The fact that an appeal or reference is pending shall not in the meantime interfere with or affect the assessment the subject of the appeal or reference; and income tax may be recovered on the assessment as if no appeal or reference were pending.

160.   Adjustment of tax after appeal

If the assessment is altered on the appeal or reference a due adjustment shall be made, for which purpose amounts paid in excess shall be refunded, and amounts short paid shall be recoverable as arrears.

PART VIII - PAYMENT, COLLECTION, AND RECOVERY OF TAXES

Division I - Persons responsible for payment

161.   Persons by whom income tax is payable

(1)  Subject to the provisions of this Act, income tax shall be payable –

(a) in respect of the income of a company, by the public officer thereof;

(b) in respect of the income of every person permanently or temporarily absent from or resident out of this State, by the agent of such person;

(c) in respect of the income of cestuis que trustent, infants, lunatics, and persons under any legal disability, by the trustee, guardian, committee, or other person entitled for the time being to the receipt, management, disposal, or control of such income, or remitting or paying the same;

(d) in respect of income paid under the decree or order of any court of judge to any receiver or other person, by such receiver or person, and independently of the title to such income, or any contingency or uncertainty in respect of such title;

(e) in respect of every other income, and in all other cases, by the person to whom the income arises or accrues, or who is legally or equitably entitled to the receipt thereof, or who is declared by this Act to be liable for the payment thereof.

(2)  The Commissioner may, if he thinks necessary, declare any person to be the agent of any other person, and the person so declared an agent shall be the agent for the purposes of this Act.

(3)  The persons by whom income tax is payable under paragraphs (a) , (b) , (c) , and (d) of subsection (1) hereof, shall be deemed to be "taxpayers in a representative capacity" within the meaning of this Act.

(4)  Nothing in this section shall relieve the person receiving the income from a taxpayer in a representative capacity from any tax due or payable in respect thereof.

162.   Payment of tax by companies

(1)  The tax payable in respect of such portion of the income of every company as is represented by dividends shall be paid in the manner and at the times hereinafter mentioned; that is to say:

(a) The public officer of every company having its head office or chief place of business in Tasmania, when and so often as any dividend has been declared or become due to any shareholders in such company, shall, within seven days from the time when such dividend has been declared or become due, forward to the Commissioner a declaration in such form as may be prescribed, under his hand, stating the amount of such dividend, and showing the date when the same was so declared or became due, and shall, except as otherwise provided, at the same time pay to the Commissioner income tax upon the amount of such dividend;

(b) The public officer of every other company shall, in such form and at such times as may be prescribed, furnish the Commissioner with such statements of the income of the company as he may require, and shall pay to the Commissioner the tax due and payable by the company.

(2)  Where income tax in respect of any portion of the amount of any dividend declared as aforesaid has been paid in any previous year, such portion shall not be again subject to tax.

(3)  It shall not be lawful for the person charged with the payment of any dividend to distribute the same amongst the persons entitled thereto until the income tax payable in respect thereof shall have been paid.

(4)  The public officer of any company who shall pay the income tax shall be entitled to deduct and retain for the use of such company, from the dividend payable to any person entitled thereto, a sum bearing the same proportion to the said tax as the amount payable to such person bears to the dividend upon which such tax has been paid.

[Section 163 Subsection (4) amended by No. 55 of 1965, s. 5 ]

163.   Temporary business

[Section 163 Subsection (2) amended by No. 67 of 1994, s. 3 and Sched. 1 ]

(1)  Where the Commissioner has reason to believe that any person establishing or carrying on business in this State intends to carry on that business for a limited period only, or where the Commissioner for any other reason thinks it proper so to do, he may at any time require that person to give security by bond, or deposit, or otherwise to the satisfaction of the Commissioner for the due return of, and payment of income tax on, the income derived by that person.

(2)  [Section 163 Subsection (2) amended by No. 55 of 1965, s. 5 ]A person who fails to give security when required to do so under this section shall be guilty of an offence.

Penalty:  Fine not exceeding 2 penalty units and not less than ·04 penalty unit.

164.   Liquidators, receivers, and agents

(1)  Every person (in this section called "the trustee") –

(a) who is liquidator of any company which is being wound up;

(b) who is receiver for any debenture-holders, and has taken possession of the assets of a company; or

(c) who is agent for a non-resident and has been required by his principal to wind up the business or realize any assets of his principal –

shall, within fourteen days after he has become liquidator, or after he has so taken possession of assets, or after he has been so required by his principal, give notice thereof to the Commissioner.

(2)  The Commissioner shall, as soon as practicable thereafter, notify to the trustee the amount which appears to the Commissioner to be sufficient to provide for any tax which then is or will thereafter become payable by the company or principal, as the case may be.

(3)  The trustee –

(a) shall not, without the leave of the Commissioner, part with any of the assets of the company or principal until he has been so notified;

(b) shall set aside out of the assets available for the payment of the tax assets to the value of the amount so notified, or the whole of the assets so available if they are of less than that value; and

(c) shall, to the extent of the value of the assets which he is so required to set aside, be liable as trustee to pay the tax.

(4)  If the trustee fails to comply with any provision of this section, or fails as trustee duly to pay the tax for which he is liable under subsection (3) hereof, he shall, to the extent of the value of the assets of which he has taken possession, and which were available at any time for the payment of tax, be personally liable to pay the tax, and shall be guilty of an offence.

Penalty:  Fine not exceeding 1 penalty unit and not less than 0·02 penalty unit.

(5)  Where more than one person is the trustee, the obligations and liabilities attaching to the trustee under this section shall attach to those persons jointly.

165.   When tax not paid during lifetime

The following provisions shall apply in any case where, whether intentionally or not, a taxpayer escapes full taxation in his lifetime by reason of not having duly made full, complete, and accurate returns:

(a) The Commissioner shall have the same powers and remedies against the trustees of the estate of the taxpayer in respect of the taxable income of the taxpayer as he would have against the taxpayer if the taxpayer were still living;

(b) The trustees shall make such returns as the Commissioner requires for the purpose of an accurate assessment;

(c) The trustees shall be subject to additional tax to the same extent as the taxpayer would be subject to additional tax if he were still living. Provided that the Commissioner may in any particular case, for reasons which he thinks sufficient, remit the additional tax or any part thereof; and

(d) The amount of any tax payable by the trustees shall be a first charge on all the taxpayer's estate in their hands.

166.   Payment of tax by trustees of deceased person

(1)  Where, at the time of a person's death, tax has not been assessed and paid on the whole of the income derived by that person up to the date of his death, the Commissioner shall have the same powers and remedies for the assessment and recovery of tax from the trustees of that person's estate as he would have had against that person, if that person were alive.

(2)  The trustee shall furnish a return of any income derived by the deceased person in respect of which no return has been lodged by him.

(3)  Where the trustees are unable or fail to furnish a return, the Commissioner may make an assessment of the amount on which, in his judgment, tax ought to be levied, and the trustees shall be liable to pay tax as if that amount were the taxable income of the deceased.

167.   Power of Commissioner to collect tax from person owing money to taxpayer

[Section 167 Subsection (2) amended by No. 67 of 1994, s. 3 and Sched. 1 ]

(1)  The Commissioner may, by notice in writing (a copy of which shall be forwarded to the taxpayer at his last place of address known to the Commissioner), require –

(a) any person by whom any money is due or accruing or may become due to a taxpayer;

(b) any person who holds or may subsequently hold money for or on account of a taxpayer;

(c) any person who holds or may subsequently hold money on account of some other person for payment to a taxpayer; or

(d) any person having authority from some other person to pay money to a taxpayer –

to pay to him, forthwith upon the money becoming due or being held, or within such further time as the Commissioner or Deputy Commissioner allows the money or so much thereof as is sufficient to pay the amount due by the taxpayer in respect of any tax and of any fines and costs imposed upon him under this Act.

(2)  [Section 167 Subsection (2) amended by No. 55 of 1965, s. 5 ]Any person who fails to comply with any notice under this section shall be guilty of an offence.

Penalty:  Fine not exceeding 1 penalty unit.

(3)  Where the amount payable to the taxpayer by the person so notified is less than the amount due by the taxpayer, that person shall pay to the Commissioner in reduction of the amount so due the amount payable by that person to the taxpayer.

(4)  Any person making any payment in pursuance of this section shall be deemed to have been acting under the authority of the taxpayer and of all other persons concerned and is hereby indemnified in respect of such payment.

(5)  If the Commissioner receives any payment in respect of the amount due by the taxpayer before payment is made by the person so notified, he shall forthwith give notice thereof to that person.

(6)  In this section

tax includes any judgment debt and costs in respect of any tax; and person includes the Crown.

168.   Consolidation of assessments

Where several persons are in receipt of income for or on behalf of a non-resident or a person absent from this State, the Commissioner, if it appears to him to be expedient to do so, may consolidate all or any of the assessments thereof, and declare any one of such persons to be the agent of the non-resident or absent person in respect of the consolidated assessment, and require him to pay income tax on the amount thereof, and thereupon the person so declared to be agent shall be liable to pay the tax.

169.   Provisions applicable where estate not administered

(1)  Where, in respect of the estate of any deceased taxpayer, probate has not been granted or letters of administration have not been taken out within six months of his death, and tax has not been assessed and paid out on the whole of the income derived by that person up to the date of his death, the Commissioner may make an assessment of the amount of tax payable in respect of that income.

(2)  The Commissioner shall cause notice of the assessment to be published twice in a daily newspaper circulating in the State in which the taxpayer resided.

(3)  Any person claiming an interest in the estate of the taxpayer may, within sixty days of the first publication of notice of the assessment, post to or lodge with the Commissioner an objection in writing against the assessment, stating fully and in detail the grounds on which he relies, and the provisions of this Act relating to objections and appeals shall thereupon apply in relation to the objection as if the person so claiming an interest were the taxpayer.

(4)  Subject to any amendment of the assessment by the Commissioner or by a court, the published notice of the assessment so made shall be conclusive evidence of the indebtedness of the deceased to the Commissioner.

(5)  If at any time probate of the will of the deceased is granted to, or letters of administration of the estate are taken out by, a person, that person may, within sixty days after the date on which probate was granted or letters of administration were taken out, lodge an objection against the assessment, stating fully and in detail the grounds on which he relies, and the provisions of this Act relating to objections and appeals shall thereupon apply in relation to the objection as if that person were the taxpayer.

Division II - Collection and recovery

170.   Times at which taxes payable

[Section 170 Amended by 14 Geo. V No. 13, s. 5 ]

(1)  Land tax shall be due and payable at such times as the Governor, by notice published in the Gazette, shall appoint.

(2)  Income tax shall be due and payable thirty days after the service by post of a notice of assessment.

(3)  Where an assessment is amended in accordance with this Act, and additional income tax is thereby payable by the taxpayer, the additional income tax shall be due and payable thirty days after the service by post of the notice of amended assessment upon the taxpayer.

(4)  When the Commissioner has reason to believe that a taxpayer may leave Tasmania before the income tax on an assessment, or the additional income tax on an amended assessment, becomes due and payable, such tax or additional tax shall be due and payable on such date as the Commissioner fixes and notifies to the taxpayer.

170A.   Taxpayer about to leave State

[Section 170A Inserted by 2 Geo. VI No. 56, s. 2 ][Section 170A Subsection (2) amended by No. 67 of 1994, s. 3 and Sched. 1 ]

(1)  Upon the application of any person about to leave Tasmania and proceed out of Australia, the Commissioner may issue a certificate –

(a) that that person is not liable to pay income tax; or

(b) that arrangements have been made to the satisfaction of the Commissioner for the payment of all income tax that is or may become payable by that person.

(2)  [Section 170A Subsection (2) amended by No. 55 of 1965, s. 5 ]Unless and until such certificate has been presented to the office of the owner or charterer, or of the representative of the owner or charterer, of the ship or aircraft by which that person intends to leave Tasmania and proceed out of Australia, at the port or place at which his passage is to be booked, an authority for that person to travel by that ship or aircraft, shall not be issued in Tasmania by the owner or charterer or a representative or employee of the owner or charterer.

Penalty:  Fine not exceeding 4 penalty units and not less than 1 penalty unit.

(3)  [Section 170A Subsection (3) amended by No. 55 of 1965, s. 5 ]The owner or charterer, or the representative of the owner or charterer of every ship, or aircraft which takes passengers on board at any port or place in Tasmania shall, on the first working day after the departure of the ship or aircraft from that port or place, lodge all certificates so presented, at the office of the Commissioner, together with a list showing the name and last known address in Tasmania of every person, other than members of the crew and staff of the ship or aircraft, who travelled on the ship or aircraft.

Penalty:  Fine not exceeding 2 penalty units and not less than 0·2 penalty unit.

171.   Administrative provisions

[Section 171 Amended by 3 Geo. VI No. 25, s. 2 ][Section 171 Amended by No. 55 of 1965, s. 5 ][Section 171 Amended by No. 67 of 1994, s. 3 and Sched. 1 ]For the more effective administration of this Act, the following provisions shall apply:

(a) Every person, local authority, and public or private body or society whatsoever, whether a taxpayer or not, and every department of the Public Service, shall furnish the Commissioner with a return of all persons employed by him or it, and the salary, wages, stipend, or other allowances or emoluments paid or allowed to each person so employed;

(b) The Commissioner, or any person authorized by him in that behalf, shall at all times have full and free access to all lands, buildings, places, books, documents, and other papers, for the purpose of valuing or inspecting the same; and for such purposes may make extracts from, or copies of, any such books, documents, or papers;

(c) The Commissioner may, by notice in writing, require any person, whether a taxpayer or not, to attend, be examined, and give evidence before him, or any officer authorized by him in that behalf, concerning any land or income or valuation or assessment or return, and to produce all books, documents, and other papers whatsoever in such person's custody or under his control relating thereto. Every person so required to attend, on being tendered the prescribed sum for his expenses, shall be bound to obey the notice to attend, and to answer truthfully all questions on such examination; and in default thereof the person so failing, without lawful excuse, shall incur a fine not exceeding 2 penalty units;

(d) The Commissioner may require such evidence to be given under oath, and either verbally or in writing; and for such purpose he or the officer authorized as aforesaid may administer an oath;

(e) Every banking company, and every other company, firm, or person, who, in the course of business, holds money by way of deposit and allows interest thereon, shall furnish annual returns to the Commissioner of all the amounts in excess of fifty dollars paid or payable as interest on such money for the year or any part thereof, with the names, addresses, and occupations of the depositors; and for the purposes of this Act every such banking or other company, firm, or person shall be deemed to be the agent of all depositors mentioned in the returns who are outside this State.

172.   Tax, &c., to be a debt due to His Majesty

[Section 172 Amended by No. 78 of 1982, s. 9 and Sched. 1 ][Section 172 Amended by No. 108 of 1987, s. 26 and Sched. 2 ]Land tax and income tax, and every sum imposed or incurred by way of fine in addition to such tax, shall be deemed, when the same becomes due or is payable, to be a debt due to the Crown, and shall be payable and paid to the Commissioner in the manner and at the places prescribed, and shall form part of the Consolidated Revenue.

173.   Statutes of limitation not to apply

No statute of limitations shall bar or affect any action or other remedy for the recovery or enforcement of taxes under this Act.

174.   Demand for tax may be sent by post

[Section 174 Amended by 25 Geo. V No. 78 ]

(1)  [Section 174 Subsection (1) amended by No. 108 of 1987, s. 26 and Sched. 2 ]Where a person is liable to pay land tax under this Act for a financial year in respect of any land but is not liable to pay an ambulance contribution under the Ambulance Service Contributions Act 1987 for that financial year in respect of that land, the Commissioner shall forward by post a demand to that person specifying –

(a) the amount of the land tax payable by him;

(b) the place where that amount is to be paid; and

(c) the hours of the day between which such a payment is to be made.

(1A)  [Section 174 Subsection (1A) amended by No. 108 of 1987, s. 26 and Sched. 2 ]The Commissioner may, for the purposes of subsection (1) , use the form of demand that is used by him for the purposes of section 16 of the Ambulance Service Contributions Act 1987 in relation to the collection of a combined tax and, if he does so, the following provisions apply to and in relation to the form of demand that is so used for the purposes of subsection (1) :

(a) the amount of ambulance contribution required to be shown on the form as due from a taxpayer shall be shown as a nil amount;

(b) such amendments as the Commissioner considers necessary shall be made to that form.

(2)  [Section 174 Subsection (2) amended by No. 108 of 1987, s. 26 and Sched. 2 ]Whenever any such demand is sent by post the Commissioner shall retain a duplicate of the demand; and the production by the Commissioner of such duplicate shall be evidence of the demand having been delivered to the person to whom it is addressed on the day on which such demand would, in the ordinary course of post, have been received at the post-office where letters addressed as aforesaid would be finally received for delivery.

(3)  [Section 174 Subsection (3) amended by No. 108 of 1987, s. 26 and Sched. 2 ]Any notice required to be given to any person may, if the whereabouts or usual or last-known place of abode or business in Tasmania of such person is not known to the Commissioner, be affixed to some conspicuous part of the land in respect of which the tax is demanded; and it shall not be necessary in any notice to any owner of any land to mention such owner by name.

(4)  [Section 174 Subsection (4) amended by No. 108 of 1987, s. 26 and Sched. 2 ]Where in the case of land tax any person shall be the owner or occupier of more properties than one, it shall be lawful for the Commissioner to set forth in the demand, in writing, mentioned in subsection (1) of this section the total amount of land tax payable by such person in respect of all the properties owned or occupied by him, naming in such demand the several properties in respect of which the total amount of tax is demanded; and such demand shall be valid and sufficient for all purposes under this Act.

175.   Proceedings for recovery of tax

[Section 175 Amended by 14 Geo. V No. 18, s. 7 ]All persons liable to pay any land tax or income tax demanded as aforesaid are hereby required to pay the same at the place and between the hours of the day mentioned in the demand; and in case the amount of tax mentioned in the demand is not paid within thirty days after the day on which the demand would, in the ordinary course of post, have been received at such last-mentioned post-office, such proceedings may be had for the recovery of the amount of tax as are hereinafter mentioned. Provided, however, that the Commissioner may, in such cases as he thinks fit –

(a) extend the time for payment as he considers the circumstances warrant; or

(b) permit the payment of tax to be made by instalments within such time as he considers the circumstances warrant.

176.   Additional tax if default made

[Section 176 Amended by 2 Geo. VI No. 76, s. 2 ][Section 176 Amended by 4 Geo. VI No. 15, s. 3 ][Section 176 Amended by No. 55 of 1965, s. 3 and Sched. 1 ][Section 176 Amended by No. 72 of 1978, s. 12 ]If the land tax or income tax, or any additional tax payable on an assessment or an amended assessment is not paid before the expiration of the time prescribed, or such further time as may be allowed by the Commissioner, additional land tax or income tax shall be payable at the rate of 10 per cent of the amount of tax unpaid. Provided, however, that the Commissioner may, in any particular case, for reasons which, in his discretion, he thinks sufficient, remit the additional land tax or income tax or any part thereof.

177.   

[Section 177 Repealed by No. 68 of 1987, s. 26 and Sched. 2 ].  .  .  .  .  .  .  .  

178.   Unpaid tax may be recovered by judgment in Supreme Court

If any person liable to pay any land tax or income tax shall neglect to pay the same before the expiration of the said period of thirty days, or such further period as may be allowed by the Commissioner, the Commissioner, without prejudice to his right to recover such tax in any other way, may give a certificate to the Crown Solicitor certifying that the tax remains unpaid, and stating the amount due and the name and place of abode or business of the person liable to pay the same, and upon receipt of such certificate the Crown Solicitor shall cause a final judgment to be signed in the Supreme Court for the amount of the tax and $10 for costs; and every such judgment may be in the form following, that is to say:

Form

179.   Recovery by distress

If any land tax or income tax shall be in arrear after the expiration of the said period of thirty days, or such further period as may be allowed by the Commissioner, any person authorized by the Commissioner may thereupon, without any warrant, enter upon any land or into any building or room occupied by any person liable to the same tax, and on whom a demand to pay the same has been served in accordance with the provisions of this Act, and demand from such person liable as aforesaid, immediate payment of the tax in arrear, together with such reasonable costs of the person so entering as the Commissioner may authorize, and in default of payment thereof forthwith such person may distrain all goods and chattels found in or upon any premises so entered by him as aforesaid; and if the sums for which the distress is taken, together with all reasonable costs thereof, or in relation thereto, be not paid within five days after the distress has been made, then the said distress, or so much as shall be sufficient to pay such tax and costs, may be sold, and any overplus shall be returned to the owner of the goods, together with an account of such sale.

180.   Procedure when name of owner unknown

Whenever, under the provisions of the Land Valuation Act 1909 , land is entered in the valuation roll under the designation of "the owner", proceedings for the recovery of the tax to which the owner of such land is liable may be taken, and judgment given against him and enforced under the designation aforesaid. Good service of any notice, summons, or writ may be effected on him by affixing the same, or a copy thereof, on a conspicuous part of the land to which the tax relates.

181.   Police to render assistance

[Section 181 Subsection (2) amended by No. 67 of 1994, s. 3 and Sched. 1 ]

(1)  Upon being required so to do by the Commissioner or any person acting under his authority, all police officers shall –

(a) obtain and furnish such information as may be required;

(b) serve any notices or documents;

(c) aid in collecting and recovering any tax and in making distresses or sales; and

(d) assist in carrying out the provisions of this Act.

(2)  [Section 181 Subsection (2) amended by No. 55 of 1965, s. 5 ]Any police officer refusing to comply with any of the provisions of this section shall be liable to a fine not exceeding 0·1 penalty unit.

182.   Recovery by ordinary process

If any land tax or income tax shall be in arrear after the expiration of the said period of thirty days, or such further period as may be allowed by the Commissioner, the Commissioner, without prejudice to any right to recover or enforce payment of the tax in any other way, may sue for and recover the same in any court of competent jurisdiction, and any action therefor may be maintained in the name of the Commissioner of Taxes without specifying the name of the person holding the office, and shall not be liable to be abated by any vacancy or change occurring in the office of Commissioner of Taxes or otherwise.

183.   Provisions if too little tax is paid

If, after any land tax or income tax has been paid, it is discovered that too little in amount has been paid, the person liable for the tax shall forthwith pay the necessary additional amount; and the amount so payable shall be recoverable in like manner as land tax or income tax is recoverable under this Act by the Commissioner without specifying the name of the person holding the office, and any action shall not be liable to be abated by any vacancy or change occurring in the office of Commissioner or otherwise.

184.   Provisions if too much tax is paid

If, after any land tax or income tax has been paid, it is discovered that too much in amount has been paid, the Commissioner, upon an application being made to him for a refund of such overpayment, and upon being satisfied that too much in amount has been paid, shall issue to the taxpayer or person entitled to receive the same a certificate for a refund of the amount overpaid.

185.   Time limited for application for refund

Except as provided by section one hundred and twenty-eight , no application for refund of an overpayment of tax shall be entertained by the Commissioner unless made within two years after such overpayment was made; or, if there has been an objection, within three months after the date of the decision of the objection.

186.   Certificate for refund

Every certificate for a refund of any moneys paid as land tax or income tax shall state the person to whom the refund is to be made, and the amount of every such refund certificate shall be paid by the Treasurer out of the Consolidated Revenue.

187.   Release of taxpayer in case of hardship

(1)  In any case where it is shown to the satisfaction of the Commissioner that a taxpayer liable to pay land tax or income tax has become bankrupt or insolvent, or has suffered such a loss of, or damage to, his assets or such loss of expected income that the exaction of the full amount of such tax will entail serious hardship, the Treasurer, on the recommendation of the Commissioner, may release such taxpayer wholly or in part from his liability, and make such entries and alterations in the assessment book as are necessary for that purpose.

(2)  In determining for the purposes of this section whether the exaction of tax would entail serious hardship the Commissioner shall take into consideration the effects of such exaction on the taxpayer's business or other source of income and on his mode of life and family.

188.   Land tax to be a first charge upon land

The land tax shall, by force of this Act, and without registration, be a first charge upon the land taxed, in priority to all rates, mortgages, charges, liens, and incumbrances whatsoever; and notwithstanding any disposition of any land, it shall continue to be liable in the hands of any purchaser or holder thereof for the payment of the tax so long as the same remains unpaid.

189.   Notice of intention to let or sell

Whenever the land tax payable in respect of any land shall have been in arrear for the space of six months or upwards, it shall be lawful for the Commissioner to cause to be published for three consecutive weeks in the Gazette, and in three consecutive numbers of one or more newspapers, a notice, specifying the land and the amount of taxes due in respect thereof, and stating that if the amount of taxes so due be not paid within six months from the first publication of the said notice, the Commissioner will let the land from year to year, as provided by this Act, or will apply to the Supreme Court for a sale thereof.

190.   Power of Commissioner to let from year to year

If, after six months from the first publication of the said notice, all or any part of any land taxes due at the time of such first publication are still unpaid, the Commissioner may let the said land, or any part thereof, from year to year, and may receive the rents and profits thereof, and apply the same towards the payment of the said taxes, and costs and expenses, and hold any surplus in trust for the rightful owner of the land.

191.   Power of Commissioner to apply to Supreme Court for sale

If, after two years from the first publication of the said notice, all or any part of the said taxes due at the time of the said first publication are still unpaid, the Commissioner, instead of letting such land, may, by petition to the Supreme Court or a judge, apply for a sale of the land described in the said notice, or of so much thereof as may be necessary to produce the amount of tax due in respect thereof, and the court or judge, on being satisfied by affidavit or otherwise –

(a) that six months' notice of such petition has been served on the owner of such land, or left at his usual or last known place of abode in Tasmania;

(b) that the arrears are lawfully due and were in arrear at the time of the first publication of the said notice in the Gazette; and

(c) that all things required by this Act to be done by the Commissioner have been done –

shall order the sale of the said land, or so much thereof as shall be sufficient to pay all arrears due up to the time of sale, together with all costs of and attending the application and of and attending the sale of the land, and that the proceeds be paid into court.

192.   Application of proceeds of sale

[Section 192 Amended by No. 68 of 1994, s. 3 and Sched. 1 ]The court or a judge shall order payment of the said taxes, costs, and expenses to be first made out of the proceeds of the sale; and the conveyance or transfer, as the case may be, shall be executed by the Registrar, or such other officer of the Court as the Court may direct, to the purchaser, his executors, administrators, and assigns, in such form as shall be approved by the Court or a judge; and such conveyance or transfer shall vest the land sold in the purchaser for an estate in fee simple free from incumbrances, and in cases where the land is under the Land Titles Act 1980 the purchaser shall be entitled to receive a certificate of title to the land purchased; and the balance arising from the proceeds of the sale shall be subject to any orders of the Court, for the benefit of the parties interested therein.

Division III - [Part VIII, Div. III Heading inserted by 4 Geo. VI No. 15, s. 3 ]Payment and collection of income tax by instalments

192A.   Interpretation

[Section 192A Inserted by 4 Geo. VI No. 15, s. 3 ][Section 192A Amended by 4 & 5 Geo. VI No. 74, s. 2 ]In this Division, unless the contrary intention appears –

employee means any person who receives, or is entitled to receive, any salary, wages, or other remuneration for service, and includes –

(a) a director of a company;

(b) an insurance or time-payment canvasser or collector paid wholly or in part by commission; and

(c) a person in receipt of superannuation pension or retiring allowance;

employer means any person who pays or is liable to pay any salary, wages, or other remuneration for service;

remuneration means salary, wages, commission, bonuses, or allowances paid (whether at piecework rates or otherwise) to any employee as such, and includes –

(a) any payment made for labour only, or substantially for labour only, to any person under any classes of contracts of service or of contracts for service which are prescribed;

(b) any payment by way of remuneration made by a company to a director of such company;

(c) any allowance paid to a member of Parliament;

(d) any payments by way of superannuation pension or retiring allowance;

(e) any payment made by way of commission to an insurance, or time-payment, canvasser or collector;

tax payable by an employee or tax payable by the employee means any tax due and payable by the employee or which may become payable by the employee under any assessment made or to be made on any return which he has furnished or has been required to furnish or under any assessment made or to be made in default of any such return;

tax stamps means tax instalment stamps caused to be placed on sale by the Treasurer pursuant to this Division, or by the Commonwealth, pursuant to any arrangement made thereunder.

192B.   Deductions before tax declared

(1)  Deductions from remuneration shall be made under or pursuant to this Division, notwithstanding that the rates of tax have not been declared for the year of tax in which the deductions are to be made.

(2)  The provisions of section forty-one of the Wages Boards Act 1920 shall not apply in respect of any deductions made pursuant to this Division.

192C.   Employer to make deductions

[Section 192C Amended by No. 55 of 1965, s. 5 ][Section 192C Amended by No. 67 of 1994, s. 3 and Sched. 1 ]

(1)  Where an employee is entitled to receive payment of remuneration in respect of any period at a rate which, if paid in respect of the whole of a year, would make an aggregate remuneration exceeding the exemption prescribed by section one hundred and thirteen for that employee, the employer, at the time of payment, shall make a deduction for income tax in respect of such remuneration as hereinafter provided.

(2)  Every such deduction shall be of an amount representing as nearly as may be, the same proportion of the tax payable by that employee in respect of a yearly income at the rate at which he is then paid, as the period in respect of which the payment is made bears to the period during which the deductions are prescribed to continue during that financial year.

(3)  Where the rate of tax for the current year of tax has not been declared, the rate imposed for the immediately preceding year of tax shall be applied in calculating the amount of such deduction.

(4)  [Section 192C Subsection (4) amended by No. 55 of 1965, s. 5 ]Where the employee receives or enjoys, in addition to the remuneration received by him in money, meals, sustenance, or the use of premises, the employee, for the purposes of calculating the deduction under this section, shall be deemed to receive in addition to the remuneration payable to him in money, remuneration of a sum calculated at the rate per week of –

(a) the amount at which such meals or sustenance or the use of such premises is assessed under any statutory provision for the determination of his remuneration; or

(b) if there is no such assessment, one dollar fifty cents for meals or sustenance; and fifty cents for the use of premises.

(5)  Upon any conviction of an employer for failure to make any deduction required by this section, the court, in addition to imposing a penalty, may order the employer to pay to the Commissioner the amount which the employer has failed to deduct; or the Commissioner may recover the same from him in any court of competent jurisdiction.

(6)  All amounts received by the Commissioner under this section shall be credited by him as or towards payment of the tax payable by the employee in relation to whom the same were received.

(7)  The employer may recover from the employee all amounts paid to the Commissioner in respect of such employee and not deducted as provided by this section.

(8)  The provisions of this section shall not apply in respect of any employee if his employment is of a casual nature only, and he is employed by any person other than a company.

(9)  [Section 192C Subsection (9) added by 6 Geo. VI No. 4, s. 2 ]Notwithstanding the foregoing provisions of this section, the Commissioner may vary the amounts to be deducted from any employee or class of employees –

(a) in any case where the Commissioner is of the opinion that deductions from the salary or wages of the employee or employees at the prescribed rates would be insufficient to pay the tax which is, or will become, payable by the employee or employees;

(b) in any case where the Commissioner is satisfied that deductions at the prescribed rates would impose serious hardship on the employee or employees; or

(c) for the purpose of facilitating the carrying out of an arrangement with any employer under section one hundred and ninety-two F .

(10)  [Section 192C Subsection (10) added by 6 Geo. VI No. 4, s. 2 ]Where the Commissioner, in accordance with subsection (9) hereof varies the amounts to be deducted, he shall notify the employer of the employee or class of employees, in writing, of the variation, and the employer shall thereafter make deductions from the salary or wages payable to the employee or employees in accordance with the amounts so notified.

Penalty:  Fine not exceeding 0·4 penalty unit.

192D.   Employer to deliver tax stamps to employee

[Section 192D Inserted by 4 Geo. VI No. 15, s. 3 ]

(1)  At the time of paying to any employee any remuneration from which a deduction under this Division is made, the employer, or the person making the payment on his behalf, shall deliver to the employee adhesive tax stamps denoting the amount deducted.

(2)  Upon receiving from his employer any tax stamps in accordance with this section, every employee shall forthwith securely affix all such stamps to a clear space on a page of the book which he is required to provide and keep pursuant to this section, but shall not affix any stamp to one side of a page if any stamp has already been affixed to the other side of that page.

(3)  Every employee who has received any tax stamps from his employer as aforesaid shall forthwith, after affixing them in the said book and in the presence of the person making the payment, cancel all such stamps by writing thereon in ink his name or initials and the date of payment.

(4)  Every employee from whose remuneration deductions are required to be made under this Division shall –

(a) provide and keep a book of convenient size and shape in which tax stamps received by him from his employer may be affixed as prescribed;

(b) sign his name on every page of such book to which any stamp is so affixed; and

(c) produce to the Commissioner, or to any officer authorized in writing by the Commissioner to require the same, such book with the stamps affixed therein as prescribed whenever required so to do, unless he has a reasonable excuse for failing so to do.

192E.   Employee to produce stamp book

[Section 192E Inserted by 4 Geo. VI No. 15, s. 3 ]

(1)  Any employee from whose remuneration deductions have been made under this Division shall, after receiving his notice of assessment and on or before the due date shown on such notice or such later date as the Commissioner may allow, produce to the Commissioner the pages of the book to which the tax stamps issued to him under this Division have been affixed as aforesaid, and the Commissioner shall thereupon retain and cancel the said stamps.

(2)  The Commissioner may apply the amount represented by the face value of those stamps in payment or part payment of any tax payable by the employee, and that amount shall be deemed to have been paid by the employee in satisfaction or part satisfaction, as the case may be, of that tax and not otherwise.

(3)  If there is no tax payable by the employee or if the face value of the stamps produced by the employee exceeds the amount of any tax so payable, the Commissioner shall, without any further or other authority than this section, refund to the employee –

(a) the face value of the stamps if no tax is payable; or

(b) the amount by which the face value of the stamps exceeds the amount of such tax in any other case.

(4)  If the face value of the stamps produced by the employee is less than the amount of the tax payable by him, the balance of such tax shall be due and payable on the date shown on his notice of assessment.

(5)  Where an employee satisfies the Commissioner that any tax stamps issued to him by his employer have been destroyed, the Commissioner may apply the face value of those stamps in accordance with the provisions of this Division as if the stamps had been produced to the Commissioner and cancelled by him.

192F.   Special provision for payment of tax in certain cases

(1)  The Commissioner, in his discretion, may accept from any public department, or any employer approved by the Commissioner in writing, payment of a sum equal to the total amount of income tax payable by the employees of such department or employer during a specified period in respect of the remuneration paid by such department or employer to such employees.

(2)  Any such employer as aforesaid may make to the Commissioner application in the prescribed form and containing such particulars as may be prescribed for permission to pay income tax as hereinbefore provided.

(3)  The Commissioner may require from any such employer such undertaking or other security as may be prescribed or as he may think necessary in each case for the payment of deductions made as provided by this section.

(4)  For the purposes of any payment as herein provided, the employer shall lodge with the Commissioner a statement in duplicate in the prescribed form and containing such particulars as may be prescribed, together with the full amount of income tax payable in relation thereto.

(5)  On payment of income tax as herein provided, the Commissioner shall denote on one of the copies of the statement lodged as aforesaid that the tax to which the statement relates has been paid, and shall return such copy statement to the employer with a certificate to that effect indorsed thereon.

(6)  In any case to which this section applies –

(a) deductions shall be made by the paying officer of the department or by the employer in accordance with the provisions of section one hundred and ninety-two C ;

(b) no tax stamps shall be issued to the employee;

(c) the amount of all such deductions shall be paid by the department or employer to the Commissioner as and when the Commissioner may require and may be recovered from any such employer by the Commissioner in any court of competent jurisdiction, and shall constitute a debt due to His Majesty from such employer.

(7)  In relation to all payments of remuneration made by the Treasurer from the Consolidated Revenue to any officer, deductions, as provided by section one hundred and ninety-two C , may be made from each amount and the balance only paid to the officer.

(8)  The Commissioner shall apply all amounts received by him under this section in respect of any employee in manner directed by section one hundred and ninety-two E as if such amount were represented by tax stamps; and shall have in relation thereto the like power to make refunds and adjustments.

(9)  For the purposes of this Division, the Commissioner, or any officer authorized by him in that behalf, may require any employer at any reasonable time to produce for inspection any books, documents, vouchers, or accounts in his possession or control relating to the payment of remuneration by or on behalf of the employer, and may inspect the same and take copies thereof or extracts therefrom.

192G.   Certificate of exemption from deduction

(1)  The Commissioner may issue to any employee a certificate that no deductions from his salary or wages need be made during any period specified in the certificate.

(2)  If it is subsequently ascertained that there is or will be tax payable by the employee, the Commissioner, by notice in writing to the employee, may cancel such certificate, and thereupon deductions shall be made from the remuneration of the employee as provided by section one hundred and ninety-two C .

(3)  A copy of the notice cancelling any such certificate shall, where practicable, be sent to the employer of the employee to whom the certificate was issued.

(4)  While any such certificate is in force no deductions under this Division shall be made by the employer from the remuneration of the employee concerned.

192H.   Value of tax stamps may be appropriated to any unpaid tax

Where any tax other than the tax for the current year of tax is payable by the employee and is unpaid, the Commissioner may appropriate and apply the face value of any tax stamps produced to him by such employee in or towards payment of any of such taxes in such order as he thinks fit, and such amount shall be deemed to have been paid by the employee accordingly and not otherwise.

192I.   Provision where employer a firm or unincorporated body

(1)  Where an employee is employed by –

(a) a firm – each partner of such firm;

(b) an unincorporated body of persons – the manager or other principal officer of such body –

shall be deemed to be his employer for the purposes of this Division.

(2)  Any of such persons may be charged with any breach of, or failure to observe, any of the provisions of this Division, but not more than one person shall be punished for the same contravention.

192J.   Stamps held for another person to be delivered when required

(1)  The Commissioner or any officer authorized by the Commissioner may require any person to deliver to him tax stamps which are in that person's possession and are held by him on behalf of some other person, and the Commissioner shall issue his receipt for the stamps which have been so delivered.

(2)  The Commissioner shall allow credit with respect to, or a refund of, the value of such stamps, as the case may require, upon application by the employee to whom such stamps were delivered by his employer.

(3)  Whenever the Commissioner suspects that any tax stamps produced to him have been obtained in contravention of any provision of this Division, he may retain those stamps for such period as he thinks fit, and shall not take them in satisfaction of any tax payable or make any refund in respect of them until he has satisfied himself as to the identity of the person, if any, to whom the stamps were lawfully delivered by an employer.

192K.   Voluntary payment by instalments

(1)  Any taxpayer, not being an employee, may, at any time before the thirtieth day of November in any year, make arrangements with the Commissioner for the payment by instalments of income tax due or becoming due by the taxpayer in respect of the preceding year of income.

(2)  An employee who had taxable income other than his remuneration may, in like manner, enter into such arrangement as aforesaid.

192L.   Tax stamps to be provided

(1)  The Treasurer shall cause to be prepared and placed on sale, as prescribed, sufficient tax stamps of suitable denominations for the purposes of this Division.

(2)  Every such stamp shall bear the words "tax instalment" clearly printed thereon.

192M.   Offences and penalties

[Section 192M Inserted by 4 Geo. VI No. 15, s. 3 ][Section 192M Amended by 4 & 5 Geo. VI No. 74, s. 2 ][Section 192M Amended by No. 55 of 1965, s. 5 ][Section 192M Amended by No. 67 of 1994, s. 3 and Sched. 1 ]

(1)  No employer shall –

(a) fail to make any deduction required to be made by him from the remuneration of his employee under this Division; or

(b) fail, where required under this Division, to issue to his employee tax stamps of the face value of every such deduction.

Penalty:  Fine not exceeding 0·4 penalty unit.

(2)  No employer shall fail to pay to the Commissioner, as and when required, the amount of all deductions made, or required to be made, by him from the remuneration of his employees under section one hundred and ninety-two F .

Penalty:  Fine not exceeding 2 penalty units.

(3)  No employee shall fail to –

(a) keep a stamp book;

(b) sign his name on every page of such book to which any tax stamp is affixed;

(c) affix in such book all tax stamps issued to him by his employer;

(d) cancel every such stamp; or

(e) produce such book to the Commissioner or his officer –

as and when required by this Division.

Penalty:  Fine not exceeding 0·4 penalty unit.

(4)  No person shall –

(a) alter any certificate issued under section one hundred and ninety-two G ;

(b) exhibit to any employer any such certificate so altered;

(c) without lawful excuse, have in his possession any document which is a colourable imitation of any such certificate;

(d) exhibit to any employer, or use in any way a certificate which to his knowledge has been cancelled;

(e) falsely pretend to be the person named in any such certificate; or

(f) procure any employer to refrain from making deductions from his remuneration by the production of any document other than a subsisting certificate issued for that purpose to himself.

Penalty:  Fine not exceeding 1 penalty unit.

(5)  No person shall –

(a) obtain for his own advantage or benefit any credit or payment with respect to any tax stamps which have been delivered in respect of the remuneration of any person other than himself; or

(b) present any document under the hand of the Commissioner and pretend to be the person named in such document for the purpose of obtaining any credit or payment for himself.

Penalty:  Fine not exceeding 2 penalty units and not less than 0·04 penalty unit or imprisonment for a term not exceeding 12 months.

(6)  No person shall –

(a) fraudulently remove from the stamp book of any employee any tax stamp affixed therein;

(b) affix any tax stamps so removed to any other book; or

(c) utter any tax stamp which to his knowledge has been fraudulently removed from any stamp book to which it was affixed.

Penalty:  Fine not exceeding 2 penalty units.

(7)  No person shall –

(a) sell any tax stamp printed or intended for the purposes of this Division unless he is authorized by the Treasurer so to do;

(b) purchase any such tax stamp from any person other than a person so authorized; or

(c) obtain from any person any such tax stamp unless –

(i) being an employee he obtains the same from his employer; or

(ii) being a person who has made arrangements with the Commissioner for payment of tax by instalments, he obtains the same from a person authorized to sell or issue the same, and for the purpose only of using the same in good faith in pursuance of such arrangement.

Penalty:  Fine not exceeding 2 penalty units.

192N.   Procedure

[Section 192N Inserted by 4 Geo. VI No. 15, s. 3 ]

(1)  In any prosecution in respect of any offence against any of the provisions of this Division, charges of any number of such offences may be included in the same complaint if all such offences are founded on the same set of facts or constitute, or form part of, a series of offences of the same, or a similar, character.

(2)  Where more charges than one are contained in a complaint, particulars of each offence shall be set out in a separate paragraph.

(3)  If the defendant is convicted on any such complaint of more than one offence, one aggregate penalty may be imposed in respect of all the offences of which he is so convicted.

192O.   Arrangements with Commonwealth

(1)  The Governor may make arrangements with the Governor-General of the Commonwealth for the application of the provisions of this Division to the remuneration received in this State by persons employed in the service of the Commonwealth and to the payment by persons in this State of Commonwealth income tax, and while any such arrangement is in force those provisions shall apply accordingly subject to such conditions as may be prescribed.

(2)  Any such arrangement may provide for the issue and sale by the Commonwealth of tax stamps for the purposes of this Division, and while such provision is in force all the provisions of this Division shall apply in respect of stamps so issued as if the same were issued by the Treasurer.

PART IX - REGULATIONS

193.   Regulations

(1)  The Governor may make regulations –

(a) .  .  .  .  .  .  .  .  

(b) for the security to be given by any persons engaged or employed in the administration of this Act, the limits of districts, and places within which any such persons are to act;

(c) prescribing the returns to be furnished to the Commissioner, the form and contents thereof, and the time and mode of furnishing the same;

(d) prescribing the mode of payment of the tax or fine;

(e) making provisions for the assessment and taxation of taxpayers absent from or not permanently resident in this State, whether they are or are not represented in this State by agents;

(f) determining and regulating the practice and procedure in relation to objections, and to the hearing and determining thereof, and determining and regulating the practice and procedure of courts of review constituted under this Act;

(g) determining the fees and expenses payable under this Act, and the mode in which the same shall be paid and recoverable;

(h) the mode to be adopted in estimating any income, and the valuation of the profits derivable and accruing from the ownership or occupation, or ownership and occupation, of land, the profits arising from trades, professions, or businesses, and the income from pensions, salaries, or annuities –

and generally for the purposes of this Act.

(2)  Any form prescribed as aforesaid may require a taxpayer to furnish to the Commissioner particulars of –

(a) all property owned, occupied, used, or enjoyed by him, the value of any such property, and the purpose for which the same is used or occupied; and

(b) all purchases, sales, and other transactions effected or carried out by him of, or in connection with, any property.

(3)  [Section 193 Subsection (3) added by No. 108 of 1987, s. 6 and Sched. 2 ]Regulations made under subsection (1) may make provision for or with respect to matters arising under this Act in relation to combined taxes.

PART X - SUMMARY JURISDICTION OF A JUDGE

194.   Summary settlement of disputes

[Section 194 Amended by 25 Geo. V No. 78 ]

(1)  A judge in chambers is hereby empowered to hear and summarily determine and settle any dispute or matter relating to any dispute –

(a) concerning the liability or alleged liability of any person to payment of any land tax or income tax; or

(b) arising between any persons whomsoever concerning any land tax or income tax, or the distribution of the burden of any such tax –

and the decision of the judge shall be final.

(2)  The judge may in any such case make such order as he may deem to be just and the circumstances of the case shall require; and may make such order as to costs as he may think fit.

PART XI - PENAL PROVISIONS AND PROCEDURE

Division I - Offences

195.   Offences

[Section 195 Amended by 14 Geo. V No. 13, s. 12 ][Section 195 Amended by 18 Geo. V No. 66, s. 5 ][Section 195 Subsection (1) amended by No. 72 of 1978, s. 13 ][Section 195 Subsection (1) amended by No. 67 of 1994, s. 3 and Sched. 1 ]

(1)  [Section 195 Subsection (1) amended by No. 55 of 1965, s. 5 ]Any person who –

(a) fails or neglects to duly furnish any return or information, or to comply with any requirement of the Commissioner as and when required by this Act, or by the Commissioner;

(b) without just cause shown by him, refuses or neglects to duly attend and give evidence when required by the Commissioner or any officer duly authorized by him, or to truly and fully answer any questions put to him, or to produce any book or papers required of him by the Commissioner or any such officer;

(c) makes or delivers a return, or gives information or an answer, to the Commissioner or any such officer, whether orally or in writing, that he knows or ought reasonably to know is false or misleading as to a material particular; or

(d) aids or assists any other person in any manner whatsoever to commit an offence against paragraph (c) of this subsection –

shall be guilty of an offence.

Penalty:  Fine not exceeding 2 penalty units and not less than 0·04 penalty unit.

(2)  A prosecution in respect of an offence against paragraphs (a) , (c) , or (d) of subsection (1) of this section may be commenced at any time.

(3)  Any person who, after conviction for an offence against this section, continues to fail to comply with the requirements of this Act, or of the Commissioner, in respect of which he was convicted, shall be guilty of an offence and punishable as provided in section one hundred and ninety-eight .

(4)  It shall be a defence to a prosecution for an offence against paragraph (c) of subsection (1) of this section if the defendant proves that the false particulars were given, or the false statement was made, through ignorance or inadvertence.

196.   Additional tax in certain cases

(1)  Notwithstanding anything contained in section one hundred and ninety-five , any person who –

(a) fails or neglects to duly furnish any return or information as and when required by this Act or by the Commissioner;

(b) fails to include any assessable income in any return; or

(c) includes in any return as a deduction an amount which is in excess of that actually expended or incurred by him –

shall, if a taxpayer, be liable, except as provided by this section, to pay, by way of additional tax, the sum of $2, in any case coming under paragraph (a) hereof, or, if the case comes under paragraph (b) or (c) hereof, shall be liable to pay, by way of additional tax, the amount of $2, or double the tax which would have been evaded if the assessment had been based on the return lodged, whichever is the greater, in addition to any additional tax which may become payable by him in accordance with this Act. Provided that the Commissioner may, in any particular case, for reasons which he thinks sufficient, remit the additional tax or any part thereof.

(2)  If the Commissioner considers that the circumstances of any case warrant action being taken to recover the penalty provided by section one hundred and ninety-five or by section one hundred and ninety-seven , such action may be taken by the Commissioner, and in that case the additional tax payable under this section shall not be charged.

197.   Understatement of income

If, in any prosecution under paragraph (c) of subsection (1) of section one hundred and ninety-five, it is proved that the taxpayer has wilfully made or delivered a false return with intent to defraud, the amount by which his actual income for the year in respect of which such return was made, exceeds the amount of income shown in such return, shall be deemed to be income tax payable by the taxpayer, and may be recovered accordingly.

198.   Avoiding taxation

[Section 198 Amended by 4 Geo. VI No. 15, s. 3 ][Section 198 Amended by No. 55 of 1965, s. 5 ][Section 198 Amended by No. 67 of 1994, s. 3 and Sched. 1 ]Any person who, by any wilful act, default, or neglect, or by any fraud, art, or contrivance whatever, avoids, or attempts to avoid, assessment or taxation, shall be guilty of an offence.

Penalty:  Fine not exceeding 10 penalty units and not less than 1 penalty unit, and in addition an amount not exceeding double the amount of tax payment whereof he has avoided or attempted to avoid.

198A.   Owner of land to furnish information

[Section 198A Inserted by No. 22 of 1978, s. 14 ][Section 198A Amended by No. 78 of 1982, s. 8 ]

(1)  Where –

(a) in relation to any financial year –

(i) a person has received the benefit of a rebate or refund of land tax in accordance with a provision of this Act or of a provision of the Act which fixes the scale or scales of land tax for that financial year; or

(ii) more than one scale of land tax has been fixed in respect of differing classes or descriptions of land and the land tax levied and payable in respect of a particular parcel of land has been assessed by reference to a rate on a scale other than the higher or highest scale so fixed;

(b) during that financial year, any event or circumstance occurs or arises which, if it had occurred or arisen before the beginning of that financial year, would –

(i) in a case to which paragraph (a) (i) applies – have disqualified him from being entitled to the benefit of the rebate or refund; or

(ii) in a case to which paragraph (a) (ii) applies – have resulted in the amount of land tax payable in respect of the parcel of land being levied at a rate on a scale higher than that on which it was in fact levied; and

(c) he knows or ought reasonably to know that the event or circumstance has occurred or arisen –

that person shall ensure that, before the commencement of the following financial year, the Commissioner is furnished with a notice in writing informing him of that event or circumstance.

(1A)  [Section 198A Subsection (1A) inserted by No. 78 of 1982, s. 8 ]For the purposes of subsection (1) , a scale of land tax shall be regarded as being higher than another such scale if the highest rate of land tax on the first-mentioned scale, expressed as a number of cents in the dollar, is higher than the highest rate so expressed on that other scale.

(2)  [Section 198A Subsection (2) amended by No. 67 of 1994, s. 3 and Sched. 1 ]A person who fails to comply with subsection (1) is guilty of an offence and is liable on conviction to a fine not exceeding 1 penalty unit.

199.   Penalties not to relieve from tax

Payment of penalties under this Act shall not relieve any person from liability to assessment and payment of any tax for which he would otherwise be liable.

200.   Obstructing officers

[Section 200 Amended by No. 55 of 1965, s. 5 ][Section 200 Amended by No. 67 of 1994, s. 3 and Sched. 1 ]Any person who obstructs or hinders any officer acting in the discharge of his duties under this Act shall be guilty of an offence.

Penalty:  Fine not exceeding 1 penalty unit and not less than 0·02 penalty unit.

201.   General penalty

[Section 201 Amended by No. 55 of 1965, s. 5 ]Any person guilty of a breach of any of the provisions of this Act shall, except where otherwise expressly provided, be liable to a penalty of twenty dollars.

202.   Penalty on default by company

[Section 202 Amended by No. 55 of 1965, s. 5 ][Section 202 Amended by No. 67 of 1994, s. 3 and Sched. 1 ]If any company makes default in complying with any provisions of this Act, such company shall incur a daily fine not exceeding 0·1 penalty unit, and the public officer of the company who knowingly and wilfully authorizes or permits such default shall incur the like fine, and such fine shall be in addition to, and not in substitution for, any tax payable under this Act.

203.   Penalty for not permitting inspection

[Section 203 Amended by No. 55 of 1965, s. 5 ][Section 203 Amended by No. 67 of 1994, s. 3 and Sched. 1 ]Any person who wilfully neglects or refuses to permit the Commissioner, or any person having an order for that purpose under the hand of the Commissioner as aforesaid, to exercise any right conferred by section two hundred and seven shall be liable to a fine not exceeding 1 penalty unit.

Division II - Procedure and evidence

204.   Power of Commissioner to require company to furnish return of shareholders, &c.

The Commissioner may, once in every year, require any company to furnish a copy of its last balance-sheet and a return of the names and residences of the shareholders of the company and the number of the shares held by them respectively, also a return of names and residences of persons holding debentures issued by the company and of the amounts secured by such debentures or otherwise owing by the company to such persons, and the rate of interest thereon. But no company shall be required under this section to furnish any return of the names and residences of its shareholders if it has duly filed with the Registrar of the Supreme Court the copy of the annual list of members, or the annual account or return respectively required by law to be so filed.

205.   Company making default to be assessed by Commissioner

If any company make default in furnishing any declaration required by this Act, or if the Commissioner is not satisfied with any such declaration furnished by any company, he may make an assessment of the amount of dividend declared by such company, or of the taxable amount of the income of such company, and thereupon shall give notice thereof to the company of the amount so assessed. Provided that such assessment shall be subject to appeal; but where the company has made default as aforesaid it shall not be entitled to any costs on appeal.

206.   Affidavits: How sworn

Any affidavit of the service of any notice required to be given by the Commissioner or any officer under this Act, or of the service of any notice to produce, may be sworn before a commissioner of the Supreme Court or any justice.

207.   Powers of inspection, &c.

[Section 207 Amended by No. 30 of 1995, s. 3 and Sched. 1 ]The Commissioner, or any person having an order for that purpose under the hand of the Commissioner, may inspect, free of charge, all rate books, assessment or valuation rolls, and all other books and documents in the custody or power of any officer of any council or local body, and all deeds, certificates, and other evidences of title, books, returns, accounts, and documents in the Lands' Titles Office or the office of the Registrar of Deeds, or the office of the Supreme Court, or in any other public office, and may require and take copies thereof or extracts therefrom, and the Recorder of Titles and Registrar of Deeds shall, without requiring payment of any fee, furnish to the Commissioner such information as may be required by him.

208.   Notices to be in writing

Every notice, demand, or like document given by or on behalf of the Commissioner or any officer under this Act shall be in writing and shall be sufficiently authenticated if the name of the Commissioner or officer by or on behalf of whom the same is given shall be printed, stamped, or written thereon.

209.   Service of notices

All notices by this Act required to be given by the Commissioner or any officer under this Act to any person may, except as otherwise provided, be served personally upon such person, or left with some inmate of his place of abode, or by forwarding the same by post addressed to the usual or last known place of abode of such person.

210.   Notice to produce documents in court

(1)  A notice to produce any document in any proceeding under this Act in any court may be served upon any person in manner provided by section two hundred and nine .

(2)  An affidavit of the service of any notice required to be given by the Commissioner or any officer under this Act, or of the service of any notice to produce, and of the time when such notice or notice to produce was served, purporting to be made by the person serving the same, shall be sufficient evidence in all proceedings in any court, of the service of the original of such notice or of such notice to produce and of the time when such notice or notice to produce was served.

(3)  A copy of such notice or notice to produce, as the case may be, shall be annexed to and verified by such affidavit.

211.   How notices to be published in district

Where any notice or matter is required to be published in a district, it shall be affixed on or near the door of every police-office or State school in the district.

212.   Evidence

(1)  The production of any assessment book, or of any document under the hand of the Commissioner or any deputy commissioner, purporting to be a copy of or extract from any assessment book, shall be conclusive evidence of the making of the assessment, and, except in the case of proceedings in appeal against the assessment, when the same shall be prima facie evidence only, shall be conclusive evidence that the amount, and all the particulars of such assessment appearing in such book or document, are absolutely correct; and, in all questions and proceedings under this Act or under any law relating to any tax, rate, or duty, it shall be sufficient to refer to an entry in the assessment book in force at the relevant time under this Act for any district, and such entry shall be received as conclusive evidence that the income specified therein is, at the date of the reference, and has been from the commencement of the period to which such assessment book applies, of the amount therein set forth; and such entry may be proved by an extract from the assessment book purporting to be signed by the Commissioner or any deputy commissioner.

(2)  The validity of any procedure under this Act, or of any assessment or any register or book or any document purporting to be made under this Act or to be signed by the Commissioner, shall not be prejudiced or affected by reason of any irregularity or informality therein, or of the fact that any of the provisions of this Act have not been complied with.

(3)  Any return of any kind made by any person, by the production thereof alone and without any further evidence, shall be received as prima facie evidence of the facts therein mentioned.

(4)  The Commissioner shall not, for the purposes of demanding or recovering income tax, or for any other of the purposes of this Act, be concluded or estopped by any entry appearing in any register, book, notice, or record made, kept, or given by him or any of his officers.

(5)  It shall not be necessary in any case to prove the incorporation or registration of any company, or that any officer or person is or was the public officer of a company or acting in its business.

(6)  Any return made or purporting to be made or signed by or on behalf of any person or by the public officer of any company for the purposes of this Act shall, for all purposes, be deemed to be duly signed by the person or by the public officer of the company affected, as the case may be, unless such person or public officer proves that such return was not made or signed as aforesaid.

(7)  The onus of proof that any income is exempt from or not liable to payment of income tax, or is subject or entitled to any deduction, shall lie on the person claiming the benefit of such exemption, non-liability, or deduction.

(8)  In all proceedings for recovery of land tax or income tax or in respect of offences against this Act, the allegations contained in the statement of claim, plaint, or complaint, as the case may be, shall be deemed proved in the absence of proof by the defendant to the contrary.

213.   Right of Commissioner to appear in person or by solicitor or other officer

[Section 213 Amended by No. 29 of 1984, s. 3 and Sched. 1 ]The Commissioner may appear, either personally or by solicitor, or by any employee, within the meaning of the Tasmanian State Service Act 1984 , in any court and in all proceedings, and the statement of any such solicitor or employee, within the meaning of that Act, that he so appears by the authority of the Commissioner shall be accepted as sufficient evidence of such authority.

214.   Time extended for doing acts

[Section 214 Amended by No. 29 of 1984, s. 3 and Sched. 1 ]Should the Commissioner or any employee, within the meaning of the Tasmanian State Service Act 1984 , fail to do any particular act in the execution of this Act within the time prescribed, he shall, as soon as may be after the time at which such act should have been done, perform or cause the same to be performed; and the performance of any such act as aforesaid at any other than the prescribed time shall, notwithstanding such failure, be valid and effectual.

PART XII - MISCELLANEOUS

215.   Public officer of company

[Section 215 Amended by No. 55 of 1965, s. 5 ][Section 215 Amended by No. 67 of 1994, s. 3 and Sched. 1 ]Every company carrying on business in this State, or deriving in this State income from property, shall at all times, unless exempted by the Commissioner, be represented for the purposes of this Act by a public officer being a person residing in this State and duly appointed by the company or by its duly authorized agent or attorney. With respect to every such company and public officer, the following provisions shall apply:

(a) The company shall appoint a public officer within three months after the company commences to carry on business or derive income in this State;

(b) The company shall keep the office of the public officer constantly filled;

(c) No appointment of a public officer shall be deemed to be duly made until after notice thereof in writing, specifying the name of the officer and an address for service upon him, has been given to the Commissioner;

(d) If the company fails to duly appoint a public officer, when and as often as such appointment becomes necessary, it shall be guilty of an offence.

Penalty:  Fine not exceeding 0·04 penalty unit for each day during which the offence continues.

(e) Service of any document at the address for service, or on the public officer of the company, shall be sufficient service upon the company for all the purposes of this Act or the regulations, and if at any time there is no public officer then service upon any person acting or appearing to act in the business of the company shall be sufficient;

(f) The public officer shall be answerable for the doing of all such things as are required to be done by the company under this Act, and, in case of default, shall be liable to the same penalties;

(g) Everything done by the public officer which he is required to do in his representative capacity shall be deemed to have been done by the company. The absence or non-appointment of a public officer shall not excuse the company from the necessity of complying with any of the provisions of this Act, or from any penalty for failure to comply therewith, but the company shall be liable to the provisions of this Act as if there were no requirement to appoint a public officer;

(h) Any notice given to or requisition made upon the public officer shall be deemed to be given to or made upon the company;

(i) Any proceedings under this Act taken against the public officer shall be deemed to have been taken against the company, and the company shall be liable jointly with the public officer for any penalty imposed upon him; and

(j) Notwithstanding anything contained in this section, and without in any way limiting, altering, or transferring the liability of the public officer of a company, every notice, process, or proceeding which, under this Act or the regulations thereunder, may be given to, served upon, or taken against the company or its public officer may, if the Commissioner thinks fit, be given to, served upon, or taken against any director, secretary, or other officer of the company, or any attorney or agent of the company and that director, secretary, officer, attorney, or agent shall have the same liability in respect of that notice, process, or proceeding as the company or public officer would have had if it had been given to, served upon, or taken against the company or public officer.

216.   Agents and trustees

With respect to every agent and with respect also to every trustee, the following provisions shall apply:

(a) He shall be answerable as taxpayer for the doing of all such things as are required to be done by virtue of this Act in respect of the income derived by him in his representative capacity, or derived by the principal by virtue of his agency, and for the payment of tax thereon;

(b) He shall in respect of that income make the returns and be assessed thereon, but in his representative capacity only, and each return and assessment shall, except as otherwise provided by this Act, be separate and distinct from any other;

(c) If he is a trustee of the estate of a deceased person, the returns shall be the same as far as practicable as the deceased person, if living, would have been liable to make;

(d) He is hereby authorized and required to retain out of any money which comes to him in his representative capacity so much as is sufficient to pay the tax which is or will become due in respect of the income;

(e) He is hereby made personally liable for the tax payable in respect of the income to the extent of any amount that he has retained, or should have retained, under paragraph (d) hereof; but he shall not be otherwise personally liable for the tax;

(f) Where as one of two or more joint agents or trustees he pays any amount for which they are jointly liable, the other or others shall be liable to pay him each his equal share of the amount so paid; and

(g) For the purpose of insuring the payment of tax the Commissioner shall have the same remedies against attachable property of any kind vested in or under the control or management or in the possession of any agent or trustee, as he would have against the property of any other taxpayer in respect of tax.

217.   Person in receipt or control of money for non-resident

(1)  With respect to every person having the receipt, control, or disposal of money belonging to a non-resident, who derives income from a source in the State or who is a shareholder, debenture-holder, or depositor in a company deriving income from a source in this State, the following provisions shall, subject to this Act, apply:

(a) He shall, when required by the Commissioner, pay the tax due and payable by the non-resident;

(b) He is hereby authorized and required to retain out of any money which comes to him on behalf of the non-resident so much as is sufficient to pay the tax which is or will become due by the non-resident; and

(c) He is hereby made personally liable for the tax payable by him on behalf of the non-resident to the extent of any amount that he has retained, or should have retained, under paragraph (b) hereof; but he shall not be otherwise personally liable for the tax.

(2)  Every person who is liable under any contract to pay money to a non-resident shall be deemed to be a person having the control of money belonging to the non-resident, and all money due by him under the contract shall be deemed to be money which comes to him on behalf of the non-resident.

218.   Person paying royalty to non-resident taxpayer

(1)  Every person who is liable under any contract to pay money as or by way of royalty to a non-resident shall, before making any payment to or on behalf of that non-resident, furnish to the Commissioner a statement of the amount of royalty due to the non-resident, whether such royalty became due either before or after the passing of this Act, and ascertain from the Commissioner the amount, if any, to be retained in respect of tax due, or which may become due, by the non-resident.

(2)  The provisions of section two hundred and seventeen shall apply in respect of payments of royalty referred to in this section.

219.   Payment of tax by banker

Where any income of any person out of the State is paid into the account of that person with a banker, the banker shall be deemed to be the person's agent in respect of the money so paid so long as he is indebted in respect thereof.

220.   Recovery of tax paid on behalf of another person

Every person who, in pursuance of this Act, pays any tax for or on behalf of any other person may recover the same from that other person as a debt, together with the costs of recovery, in any court of competent jurisdiction, or may retain or deduct the same out of any money in his hands belonging or payable to that other person.

221.   Contribution from joint taxpayers

Where two or more persons are jointly liable to pay tax they shall each be liable for the whole tax, but anyof them who has paid the tax in respect of any of the taxable income –

(a) shall be entitled to receive by way of contribution from any other of such persons a sum bearing the same proportion to the tax as that other person's share of the taxable income bears to the whole taxable income; and

(b) may recover that sum from that other person in any court of competent jurisdiction; or may retain or deduct that sum out of any money in his hands belonging or payable to that other person.

222.   Contracts to evade tax void

Every contract, agreement, or arrangement made or entered into, orally or in writing, whether before or after the commencement of this Act, shall, so far as it has or purports to have the purpose or effect of in any way directly or indirectly –

(a) altering the incidence of any income tax;

(b) relieving any person from liability to pay any income tax or make any return;

(c) defeating, evading, or avoiding any duty or liability imposed on any person by this Act; or

(d) preventing the operation of this Act in any respect –

be absolutely void, as against the Commissioner, or in regard to any proceeding under this Act, but without prejudice to such validity as it may have in any other respect or for any other purpose.

223.   Covenant by mortgagor to pay tax

(1)  A covenant or stipulation in a mortgage given or executed after the thirty-first day of December 1935 which has or purports to have the purpose or effect of imposing on the mortgagor the obligation of paying income tax on the interest to be paid under the mortgage shall be absolutely void.

(2)  A covenant or stipulation in a mortgage whenever given or executed, which has or purports to have the purpose or effect of including in or adding to the interest payable, in any specified circumstances, by the mortgagor, any amount in respect of income tax payable by the mortgagee upon the interest to be paid under the mortgage, shall be void to the extent only to which it has or purports to have that purpose or effect.

(3)  Where, in any mortgage, provision is made for the reduction of the rate or amount of interest in the event of prompt payment of the interest or in any other circumstances, and for the rate or amount of such reduction to be diminished by or in proportion to any amount of income tax payable by the mortgagee the portion of the provision which provides for that diminution shall be void, and the reduction of the rate or amount of interest shall take effect as if the portion of the provision which provides for that diminution had not been inserted.

(4)  Any provision in a mortgage by or under which it is provided that any income tax payable by the mortgagee, or any portion thereof shall or may be taken into account for the purpose of fixing, measuring, or calculating the rate of interest payable under the mortgage or any reduction or alteration of that rate shall, to the extent to which it provides for income tax to be so taken into account, but not otherwise, be void, whether the provision be in the form of a covenant or agreement to pay interest, or a proviso or a stipulation for an alternative, substituted, or reduced rate of interest in lieu of a higher rate payable by the mortgagor pursuant to any such covenant or agreement, or otherwise.

(5)  For the purposes of this section

mortgage includes any charge, lien, or incumbrance to secure the repayment of money, and any collateral or supplementary agreement, whether in writing or otherwise, and whether or not it be one whereby the terms of any mortgage are varied or supplemented, or the due date for the payment of money secured by mortgage is altered, or an extension of time for payment is granted.

224.   Periodical payments in the nature of income

Where under any contract, agreement, or arrangement made or entered into orally or in writing, either before or after the commencement of this Act, a person assigns, conveys, transfers, or disposes of any property on terms and conditions which include the payment for the assignment, conveyance, transfer, or disposal of the property by periodical payments which, in the opinion of the Commissioner, are either wholly or in part really in the nature of income of that person, such of those payments as are derived in the year of income shall, to the extent to which they are in that opinion in the nature of income, be included in his assessable income.

225.   Tax Agents' Board

(1)  The Governor may appoint a board to be called the Tax Agents' Board (hereinafter called "the Board") which shall consist of three persons, of whom one shall be appointed chairman.

(2)  The Board shall hear and determine, as prescribed, applications by persons desiring registration as tax agents.

226.   Registration of tax agents

(1)  It shall not be lawful for any person other than a barrister or a solicitor to charge or receive any fee for or in relation to the preparation of any income tax return for a taxpayer, or for or in relation to the transaction of any business on behalf of a taxpayer in income tax matters, unless he is registered as a tax agent with the Commissioner: Provided that the Commissioner, upon being satisfied that the total income likely to be derived by a person as a tax agent does not exceed $20 per annum, may grant a certificate of exemption to that person. The certificate of exemption shall have a currency of one year, but may be annually renewed, and during the currency of a certificate of exemption granted to him the person shall be exempt from the provisions of this section.

(2)  Only such persons as satisfy the Board as to their qualifications and fitness so to act shall be registered as tax agents.

(3)  Where a partnership carries on the business of tax agents it shall be sufficient if one partner is registered on behalf of the partnership. Where a registered company carries on the business of tax agents it shall be sufficient if a person appointed in writing by the company is so registered on behalf of the company.

(4)  [Section 226 Subsection (4) amended by No. 55 of 1965, s. 5 ]Each registered tax agent shall pay to the Commissioner an annual fee of two dollars.

(5)  The Board may cancel the registration of any tax agent upon it being proved to the satisfaction of the Board that the tax agent or his representative has prepared a return which is false in any material particular, or has persistently neglected his principal's business, or if in the opinion of the Board he is not a fit or proper person to be so registered.

(6)  If through the neglect of a registered tax agent a penalty or an additional tax is charged against a taxpayer, the registered tax agent shall be liable to pay that penalty or additional tax, and the amount may be recovered by his principal from him by process of law, but this provision shall not be construed so as to exonerate the taxpayer from his liability.

(7)  For the purpose of this section the Board may, by notice in writing, require any person –

(a) to furnish it with such information as it may require; and

(b) to attend and give evidence before it and may require him to produce all books, documents, and other papers whatever in his custody or under his control in relation to any matter before it –

and the Board may require the information or evidence to be given on oath, and either orally or in writing, and for that purpose the chairman of the Board may administer an oath.

227.   Administration expenses: Appropriation of penalties

All expenses incurred in the administration of this Act shall be paid out of moneys appropriated for that purpose by Parliament; all fees received, and penalties, fines, and costs imposed and recovered, under this Act shall be paid into the Consolidated Revenue.

228.   Court fees not payable

No court fees shall be demanded or payable in respect of any proceedings or process concerning the recovery or enforcement of payment of any land tax or income tax.

229.   Recovery of penalties

Any complaint in respect of any penalty under this Act may be made at any time within three years next after the date of the offence.

230.   No action against officers in respect of error, not wilful

No action shall lie against the Commissioner or any other officer for any error, not wilfully made, in demanding, collecting, or enforcing payment of a tax.

231.   Saving of certain repealed provisions

The repeal by any Act amending this Act of any provisions previously in force in relation to income tax shall not affect the operation of such provisions in relation to income tax payable for any financial year prior to that commencing on the first day of July 1936; and subject to this Act, the said provisions shall, to that extent, continue in operation as if the same had not been repealed.

232.   Suspension of certain provisions

(1)  The operation of this Act is suspended so far as regards the imposition, assessment or collection of income tax in respect of the year of income ended on 30 June 1942 or any subsequent year during the continuance of the Land and Income Taxation Act (No. 2) 1942 , but not further or otherwise.

(2)  The provisions of section 16 of the Acts Interpretation Act 1931 apply to the relevant provisions of this Act during such suspension as if such provisions had been repealed by the Land and Income Taxation Act (No. 2) 1942 .

233.   Operation of amendments

(1)  The amendments of this Act that are effected by the Land and Income Taxation Act 1959 apply with respect to land tax payable for the financial year ending on 30 June 1960 and each subsequent financial year.

(2)  The amendments of this Act effected by the Land and Income Taxation Act 1960 apply with respect to land tax payable for the financial year ending on 30 June 1961 and each subsequent financial year.

SCHEDULE 1

Original section 2