Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Full Day's HansardDownload Full Day's Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Tuesday, 29 September 1942


Mr CHIFLEY (Macquarie) (Trea surer) . - I move -

That at the end of the clause the following words be added : - " and inserting in its stead the followingsub-section: - (2.) In ascertaining the gross income for the purpose of the last preceding sub-section there shall be deducted from what would otherwise be the gross income -

(a)   the amount of any customs duty paid in respect of the importation of any film imported for the purpose of carrying on the business;

(b)   the amount of any sales tax paid in respect of any copies of any such film which are printed in Australia; and

(c)   the amount of any customs duty paid in respect of the importation of any unexposed sensitized film on which any such copies have been printed, which, in the year of income, is paid to the Commonwealth (whether directly or indirectly) by the non-resident and which is not an allowable deduction to the person carrying on the business in Australia'".

It has been represented that the amendment made by clause 16 will result in anomalies between the companies concerned, and also in the taxation of amounts which have already been paid to the Government in the form of duty or taxation under other acts. The clause as it stands provides that 10 per cent. of the gross income derived from Australia by the non-resident film company shall be included in its taxable income. There is a heavy duty upon imported films which has been increased since the war began. There' is also a duty upon unexposed sensitized film upon which copies of the film are made for the purpose of exhibition in Australia. This sensitized film was, until last year, imported duty free. There is also a sales tax of 25 per cent., increased progressively from 5 per cent. in 1930, upon the prints so made in Australia. In some cases, the contract between the overseas company and the local distributor company provides for the payment of these duties and sales tax by the local company which is then entitled to a deduction thereof in its assessment. In other cases, the contract between the overseas company and the local company provides for the payment of these duties and sales tax out of the overseas company's share of the gross income arising under the contract. In these cases, no deduction is received by the local company, and the overseas company would be assessed, under the amendment as it now reads, upon 10 per cent. of its share of the gross income before its reduction by these duties and sales tax. It has, therefore, been decided that where the duties and sales tax are paid by the overseas company out of its share of the gross income arising under the contract, such share shall be reduced by the duties and sales tax, and the 10 per cent. calculated upon the net amount. The amendment ensures that this will be done.

Amendment agreed to.

Clause, as amended, agreed to.

Clauses 17 to 20 agreed to.

Clause 21 -

Section one hundred and sixty c of the Principal Act is amended by omitting from sub-section (1a.) the definition of "mutual income) " and inserting in its stead the following definition: - " ' mutual income', in relation to a life assurance company (other than a mutual life assurance company), means -

Amendment (by Mr. Chifley) agreed to -

That at the end of the clause the following words be added: - "and (b) by adding at the end thereof the following sub-sections: - (5.) For the purpose of ascertaining that portion of the taxable income of a company which has not been distributed as dividends, the company may elect that, in lieu of deducting from its taxable income any income tax paid in the year of income under thisAct (other than the further tax paid under this Part) or any tax paid under any Act passed by the Parliament imposing a war-time tax upon companies, there shallbe deducted any income tax payable under this Act (other than the further tax payable under this Part) or - any tax payable under any Act passed by the Parliament imposing a war-time tax upon companies in respect of the income of that year of income. (6.) Where any company has made an election under sub-section (5.) of this section, that election shall, unless the Commissioner otherwise directs, be deemed to have been made also for the purpose of ascertainingthat portion of the taxable income of that company which has not been distributed as dividends, for all subsequent years. (7.) The election which may be made in pursuance of sub-section (5.) of this section shall be made in writing, signed by the public officer of the company, and notified to the Commissioner -

(a)   where the election commences to apply in ascertaining that portion of the taxable income derived by the company during the year ended on the thirtieth day of June, One thousand nine hundred and forty-two, or the accounting period adopted under this Act in lieu of that year, which has not been distributed as dividends - on or before the thirty -first day of December, One thousand nine hundred and forty-two, or within such further time as the Commissioner may allow; and

(b)   where the election commences to apply in ascertaining that portion of the taxable income derived by the company during any subsequent year which has not been distributed as dividends - on or before the date of lodgment of the return for that year, or within such further time as the Commissioner may allow. (8.) Where a company makes an election under sub-section (5.) of this section, the income tax payable under this Act in respect of income derived during the year ended on the thirtieth day of June, One thousand nine hundred and forty-two, or the accounting period adopted under this Act in lieu of that year, shall, for the purpose of this section, be; calculated as if in paragraph (a) of the Seventh Schedule to the Income Tax Act 1942. the words " forty-eight pence " were substituted, for thewords " seventy-two pence".'".

Clause further verbally amended and. as amended, agreed to.

Clauses 22 to 29 agreed to.

Clause 30 (Gifts and contributions).







Suggest corrections