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Wednesday, 3 June 1942

Senator KEANE (Victoria) (Minister for Trade and Customs) . - I move -

That all words after " sub-section ( 1. ) " be left out, with a view to insert in lieu thereof the words " the words ' Two hundred pounds ' and inserting in their stead the words ' One hundred and fifty-six pounds ' ".

Under the clause as it now stands, a company which pays to a non-resident individual depositor or debenture holder, in the year of income, interest amounting to less than £157, is not liable to pay tax in respect of that interest. But, if it pays interest amounting to £157 or more to any non-resident individual, it is liable to pay tax at the rate of 6s. in the £1 in respect of every pound of such interest. The company is empowered to recoup itself by deducting the tax before paying the interest to the non-resident depositor or debenture holder. As such a provision would create anomalies and impose hardship in some instances, it is proposed that a company shall be liable to pay tax only on so much of any interest paid to a non-resident individual as exceeds £156. The effect of the proposed amendment is that, generally speaking, the amount of tax paid by the company and borne by the individual nonresident in respect of interest so paid will be substantially similar to that payable by a resident taxpayer deriving the same amount of property income. In any case, the act gives the commissioner a right of assessment. The non-resident taxpayer may accordingly be assessed on the actual amount of interest paid to him, and allowed a rebate of the amount of tax paid by the company on that interest.

Amendment agreed to.

Clause, as amended, agreed to.

Clause 22 agreed to.

Clause 23 (Concessional rebates).

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