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Amendment of principal Act, s. 19— New rates of tax.

Taxation Act.-1925.

(ii.) that a taxpayer liable as aforesaid is by reason of age, infirmity, loss, or other cause so situated that the exaction of the full amount of income tax would entail serious hardship; or

(iii) that owing to the death of a person who, if he had lived. would have paid income tax, the dependants of that person are in such circumstances that the exaction of the full amount of tax would entail serious hardship,

he may release the taxpayer or the executor or administrator of the deceased person (as the case may be) wholly or in part from his liability, and may make such entries, alterations, and amendments as may be necessary to give effect to such release.

5. Section 19 of the principal Act (as enacted by the Taxation Act Amendment Act, 1918) is hereby repealed and the following section is hereby enacted in lieu thereof :

19. (1) The income tax on income derived from personal exertion shall be at the following rates:

(a) For so much of the whole taxable amount of income
derived from personal exertion as does not exceed
Four Thousand Four Hundred Pounds, the rate of
tax per Pound sterling shall be Five Pence and One
Two-hundredth of a Penny where the taxable income
is One Pound sterling, and shall increase uniformly
with each increase of One Pound sterling of the
taxable income by One Two-hundredth of a Penny.
(b) For every Pound sterling of the taxable amount of
income derived from personal exertion in excess of
Four Thousand Four Hundred Pounds the rate of
tax shall be Twenty-seven Pence.

(2) The income tax on income consisting of the produce of property shall be at the following rate :

(a) For so much of the whole taxable amount of income consisting of the produce of property as does not exceed Four Thousand Two Hundred Pounds, the rate of tax per Pound sterling shall be Eleven Pence and One Two-hundredth of a Penny where the taxable income is One Pound sterling, and shall increase uniformly with each increase of One Pound sterling of the taxable income by One Two-hundredth of a Penny.

(b) For every Pound sterling of the taxable amount of income consisting of the produce of property in excess of Four Thousand Two Hundred Pounds, the rate of tax shall be Thirty-two Pence.

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(3) Notwithstanding

Taration Act.-1925.

(3) Notwithstanding anything contained in this Act, the income tax payable by any male person residing in South Australia

(a) who on the last day of the period for which the income
is calculated was unmarried or was a widower with-
out children and up till such day had not enlisted
for active service; and

(b) the net amount of whose income (before making the
deduction provided for by subdivision XI. of section
22) is not less than One Hundred Pounds,

shall be One Pound Five Shillings, in addition to any other
income tax which may be payable by such person apart from
this subsection.

(4) In the case of the income of a taxpayer being a company carrying on the business of life insurance, the income tax payable on such income shall be at one-half the rates provided for by this section.

6. Section 26 of the principal Act is amended

(a) by striking out paragraph v. thereof; and
(b) by inserting at the end thereof the following new para-
graph:

VII. Any debts except bad debts proved to be such
to the satisfaction of the Commissioner, and
doubtful debts to the extent that they are
respectively estimated to be bad. In the case
of bankruptcy or insolvency of a debtor, the
amount which may reasonably be expected
to be received on any such debt shall be deemed
to be the value thereof: Provided that all
amounts recovered on account of any such debts
which have been allowed as deductions from
income in arriving at the taxable amount for
any assessment of income tax shall be included
as income of the period or year in which the
same were recovered.

Amendment of

principal Act, s. 26Deduction for bad debts.

7. Part V. of the principal Act is amended by inserting after Amendment of section 26 therein the following section :-

principal Act,
Part V.-

26A. In calculating the taxable amount of income there may Deduction for be deducted by the taxpayer

(i.) Sums expended by the taxpayer during the year in
which the income was derived for repairs to or on
that part of any property occupied for the purpose
of producing income or from which income is derived
or is deemed to have been derived and for the repair
of any machinery, implements, utensils, rolling-
stock, and articles employed by the taxpayer for
the purpose of producing income;
(ii.) Such

repairs, depreciation,

etc.

Cf. Commonwealth

Act, No. 37 of 1922,

s. 23.

Taxation Act.--1925.

(ii.) Such sum as the Commissioner thinks just

an

reasonable as representing the diminution in valu per centum by wear and tear during the year in which the income was derived of any machinery implements, utensils, rolling-stock, and articles (including beasts of burden and working beasts used by the taxpayer for the purpose of producing income, such wear and tear not being of a kind that may be made good by repairs; or at the option of the taxpayer, signified by written notice to the Commissioner within one month after the coming into operation of this Act, in the case of machinery, implements, utensils, rolling-stock, and articles in use for the production of income on the first day of July, nineteen hundred and twenty-four, a sum equal to ten per centum of the cost price of such machinery, implements, utensils, rolling-stock, and articles in each year for a period of ten years: Provided that should the taxpayer dispose of such machinery, implements, utensils, rolling-stock, and articles, the total sum to be allowed as a deduction under this provision shall be reduced by the amount received for the sale or transfer of such machinery, implements, utensils, rolling-stock, and articles. Provided that

(a) Where a deduction has been allowed during the
year in which the income was derived under
paragraph (i.) of this section the Commissioner
shall take into consideration the sum so allowed
in determining the sum to be allowed under
this paragraph.

(b) In any case in which machinery, implements,
utensils, rolling-stock, and articles (including
beasts of burden and working beasts) are ac-
quired from one party by another party for
valuable consideration of a value in excess of
the value to which the cost price of the
machinery, implements, utensils, rolling-stock.
and articles (including beasts of burden and
working beasts) had been reduced by the
amount of the deduction for depreciation
allowed by the Commissioner under this pro-
vision the party acquiring the machinery,
implements, utensils, rolling-stock, and articles
(including beasts of burden and working beasts)
shall not be entitled to any greater deduction
under this paragraph than that which would
have been allowed to the party from whom
they were acquired if he had retained them.
Where, however, the Commissioner is satisfied

that

Taxation Act.--1925.

that the circumstances are such that a de-
duction under this provision based upon the
actual amount of the consideration given
should be allowed the deduction calculated
on that basis may be allowed;

(iii.) The annual sum necessary to recoup the expenditure
covenanted to be made on improvements on land
by a lessee who has no tenant rights in the improve-
ments. The deduction under this provision shall
be ascertained by dividing the amount (not
exceeding the sum specified in the covenant)
expended on the improvements by the lessee by
the number of years in the unexpired period of
the lease at the date the improvements were
effected.

8. Part VI. of the principal Act is amended by inserting after Amendment of section 39 thereof the following sections:

39A. (1) Where a company is being wound up the public officer of that company shall give notice of the winding up to the Commissioner within fourteen days after the approval of the shareholders for the winding up has been given, or the order for the winding up has been made.

(2) Any public officer who fails to comply with this section shall be guilty of an offence against this Act, and shall be liable to a penalty not exceeding Fifty Pounds.

principal Act.
Part VI.-

Notice by public officer of liquidation of company.

39B. (1) Where an agent or attorney for a party permanently Notice of winding up or temporarily absent from the State has been required by his absent principals. principal to wind up the business of his principal, he shall, before taking any steps to wind up the business, notify the Commissioner of his intention so to do, and he shall set aside such sum out of the assets of the principal as appears to the Commissioner to be sufficient to provide for any income tax that becomes payable.

(2) An agent who fails to give notice to the Commissioner or fails to provide for payment of the tax as required by this section shall be personally liable for any income tax that becomes payable in respect of the business of the principal.

(2)

9. Subsection (2) of section 52 of the principal Act (as enacted Amendment of by section 7 of the Taxation Act Amendment (Miscellaneous principal Act, s. 52 Provisions) Act, 1917, and amended by the Schedule to the Taxation Consequential Act, 1924) is amended by striking out the word "interest" in the amendment. seventh line thereof and inserting in lieu there of the word "fine."

10. Section 80 of the principal Act is amended by adding at the Amendment of end thereof the following subsection:

principal Act, s. 80Time of setting

(5) Any appeal which has not been set down for hearing down appeals. within twelve months after the giving of any general or

particular

Amendment of

Taxation Act.-1925.

particular notice of any assessment or of any altered, corrected, or additional assessment, shall be deemed to have been withdrawn, and the Court shall not have jurisdiction to determine such an appeal.

11. Section 10 of the Taxation Act Amendment Act, 1918, is 1337 of 1918, s. 10-amended by adding at the end of subsection (1) thereof the following Commonwealth tax. proviso:

Tax on refunds of

Provided that when a taxpayer receives a refund of the whole or any part of the taxes mentioned in this section the amount of such refund shall be brought into account as income in the year in which the refund is received.

In the name and on behalf of His Majesty, I hereby assent to
this Bill.
TOM BRIDGES, Governor.

Adelaide: By authority, R. E. E. ROGERS, Government Printer, North Terrace

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