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Tuesday, 26 November 1974
Page: 2799

Senator WRIEDT (Tasmania) (Minister for Agriculture) - I move:

That the Bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

The ACTING DEPUTY PRESIDENT (Senator Devitt)- Is leave granted? There being no objection, leave is granted. (The document read as follows)-

The purpose of this Bill is to increase the basic rate of tax payable by a company under section 126 of the Income Tax Assessment Act on interest paid on bearer debentures where the company does not disclose the names and addresses of the debenture holders to the Commissioner. The rate at present is that applying to a taxable income of $16,786, which is about 39 per cent. Designed as it is as a sanction against a practice which involves tax avoidance this rate is now inadequate. The opportunity is being taken to increase it. For interest paid or credited on or after the date of commencement of this Act, the rate of tax will be 55 per cent. It will thus be the same as will in future apply in respect of property income of certain trusts to which special rates are applied because they are regarded as instruments of tax avoidance. The technical aspects of the Bill are explained in the memorandum that I have had circulated. I commend the Bill to the Senate.

Debate (on motion by Senator Cotton) adjourned.

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