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Wednesday, 16 June 1926

Senator NEEDHAM (Western Australia) . - I think Senator Elliott's request for the postponement of the clause might be acceded to by the Government. There is a lot in the honorable senator's amendment.

Senator McLachlan - It deals with a highly technical subject.

Senator NEEDHAM - I admit that. I am inclined to go a long way in supporting the honorable senator's proposal, but I would suggest an amendment on the following lines : -

That the following sub-section be added: - "1a. Where the naval ormilitary duties of any individual or member referred to in the last preceding subsection required him to be in any part of the field of operations in connexion with the war where there was danger to life as a result of the operations of enemy forces,the Commissioner may further alterormike the said assessments, so thatthere shall be deducted fromthe said pro- fits so much of those profits as were entitled to an exemption from income tax by virtue of section 13 of the Income Tax Assessment Act 1915-21, and which would but for this sub-section be liable to war-time profits tax."

If that sub-section were added it' would place the returned soldier in the same position in relation to war-time profits tax as he occupies in relation to income tax. The Minister (Senator Crawford) in his reply to Senator Elliott said that thereturned soldier was exempted under the Income Tax Assessment Act, but I am afraid that if clause 4 of this bill is agreed to as it is printed that will hot be the case. The desire of Parliament was to exempt soldiers from income taxation, and as far as possible from war-time profits tax also. In order to overcome any improper evasion by the transfer of businesses to returned soldiers, it excluded any member of theforces who had not gone into the danger zone. Senator Elliott's amendment has provided for that, but if the committee is not prepared to accept thatamendment, it may adopt the one I have suggested. The act also excludes any member of the forces who, although he went into . the danger zone, did notdevote the greater portion ofhis time to the management of his business prior to going to the wax. That risk no longer exists, as there can be no longer evasions by the transfer of businesses.

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