Title INCOME TAX ASSESSMENT BILL 1936
Second Reading
Database Senate Hansard
Date 20-05-1936
Source SENATE
Parl No. 14
Electorate SOUTH AUSTRALIA
Party NAT
Speaker MCLACHLAN, Alexander
Stage Second Reading
System Id hansard80/hansards80/1936-05-20/0091


INCOME TAX ASSESSMENT BILL 1936 - Second Reading


Senator A J McLACHLAN (SOUTH AUSTRALIA) (Postmaster-General) . - Senator Leckie has asked for the removal of the limitation of the deduction provided in paragraphs b, c and d. The honorable senator contends that, in most instances, the employer is under an obligation to make a contribution to a fund or to pay retiring allowances, irrespective of whether the business shows a profit or a loss in any particular year. Apparently the honorable senator has overlooked clause 66, which deals with contributions to pension funds in cases where the taxpayer is under legal obligation to make the payment. Generally speaking, this applies in most cases where a fund is established. Under clause 66 there is no limitation of the amount of deduction which may be allowed. Paragraphs b and c of clause 78 represent a concession to the taxpayer in regard to voluntary payments. They are allowed to the amount of net income of the year. Payments of this nature, as in the case of gifts to charity, cannot be allowed without any limitation. It was a consideration, in obtaining approval for the extension of the deductions under paragraphs b and c, that it would be limited to the amount of the net income of the year.







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