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Taxation - Commissioner of Taxation - Report dated - 1 September 1975 (54th)


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THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

1975— Parliamentary Paper No. 162

FIFTY-FOURTH REPORT OF

THE COMMISSIONER OF TAXATION

1974-75

Presented pursuant to Statute and ordered to be printed 30 September 1975

THE GO VERNM ENT PRIN TER O F AUSTRALIA

CANBERRA 1975

CONTENTS

Page

Introduction . . . . . 1

Summary of Activities 1974-75 . . 2

Management, Organization and Personnel 5

Revenue . . . . . . 18

Assistance to Taxpayers . . . 28

Statutory Taxation Boards . . . 30

Appeals to the Courts . . . . 36

Breaches and Evasions of the Acts . . 48

Taxation Committees . . . . 57

Appendixes—

Management . . . . . 60

Outline of the laws administered by the Commissioner of Taxation, amend­ ments to the Acts and related

statistics:

Income Tax . . . . 70

. Sales T a x ............................................109

Estate Duty . . . . 114

Gift D u ty ............................................. 119

Pay-roll Tax . . . . 123

Export Incentive Grants . . 126

A.C.T. Stamp Duty and Tax . 127

Wool T a x .............................................129

Stevedoring Industry Charge . 135

Tobacco Charge . . . . 1 3 9

Canning-Fruit Charge . . . 141

Exchange Control—Taxation Clear­ ance Certificates . . . 1 4 3

Breaches and Evasions — Schedules I to IV 145

Index . . . . . . . 1 7 5

I N T R O D U C T I O N

This report is made in compliance with provisions of the several taxing statutes of Australia, the Taxation Administration Act and the Export Incentive Grants Act which require the Commissioner of Taxation to furnish annually to the Treasurer, for presentation to the Parliament, a report on the working of the legislation concerned.

The Acts relating to wool tax, tobacco charge, canning-fruit charge, Australian Capital Territory stamp duty and tax impose no such obligation on the Commis­ sioner, but it is considered appropriate that information on these levies should be provided in this report.

The Australian Taxation Office collects all the main taxes imposed by the Parliament except customs and excise duties. The taxes, grants, duties and charges administered by the Commissioner of Taxation are:

Income tax Sales tax Estate duty Gift duty Pay-roll tax Export incentive grants Australian Capital Territory stamp duty and tax

Wool tax Stevedoring industry charge Tobacco charge Canning-fruit charge

The Parliament has, by statute, vested in the Commissioner of Taxation the general administration of the various Acts relating to these taxes and grants. The Acts also give statutory powers to two Second Commissioners of Taxation.

The Commissioner and the two Second Commissioners are appointed under the provisions of the Taxation Administration Act 1953-1974. That Act also provides for the appointment of Valuation Boards which are referred to in the section ‘Statutory Taxation Boards’ (page 30), and, in addition deals with rules under which tax clearances are a necessary pre-requisite to the granting of certain exchange control approvals.

The various Acts give rights of appeal to a Court and of reference to a Board of Review in relation to determinations by the Commissioner of objections against assessments and certain other decisions made by him. Three Boards of Review, which are referred to in more detail under the heading Statutory Taxation Boards, have been set up. Each Board has power to make assessments in lieu of those made by the Commissioner and, where the Commissioner has exercised, or has not exercised, a discretionary power, a Board may substitute its determination on the matter for the determination of the Commissioner.

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S U M M A R Y O F A C T I V I T I E S 1 9 7 4 - 7 5

This summary brings together the major revenue and management statistics that illustrate the main work done in the Australian Taxation Office during 1973-74 and 1974-75.

1973-74 1974-75 Increase*

All levies Net revenue collected . . . . . $'000 8,624,590 11,500,740 2,876,150

Cost of collection . . . . . . $’000 88,365 113,398 25,033

Income tax Net revenue collected . . . . . $’000 7,523,426 10,160,944 2,637,518

Current returns lodged—taxable . . . . Ό00 5,538 5,857 319

Current returns lodged—non-taxable . . . Ό00 1,638 1,605 - 3 3

Previous years’ returns lodged, taxable and non-ta x a b le ......................................................................... ’000 204 271 67

Returns lodged in respect of all years, taxable and non-taxable . . . . . . . Ό00 7,380 7,733 353

Current assessments issued, taxable . . . Ό00 5,374 5,723 349

Assessments amended . . . . . ’000 266 267 1

Objections against assessment— received during year . . . . . No. 54,401 70,065 15,664

decided during year . . . . . No. 51,300 70,686 19,386

Final notices issued to obtain returns or information No. 307,785 359,888 52,103

Proceedings to obtain returns, etc. . . . No. 54,317 66,034 11,717

Tax instalment deductions— Gross collections . . . . . . $’000 5,010,246 6,918,868 1,908,622

Active group employers registered at 30 June . No. 168,165 183,840 15,675

Refunds made . . . . . . $’000 771,855 847,575 75,720

Instalment inspections made . . . . No. 75,514 91.939 16,425

Employers prosecuted . . . . . No. 2,311 1,726 -5 8 5

Withholding tax— Remitters registered at 30 June . . . No. 9,302 9,304 2

Investigations— Completed . . . . . . . No. 5,827 6,121 294

Resulting increase in tax and penalty . . $’000 53,451 63,004 9,553

Sales tax Net revenue collected . . . . . $’000 968,758 1,154,290 185,532

Returns lodged . . . . . No. 498,634 530,935 32,301

Investigations— Completed . . . . . . . No. 17,154 17,621 467

Resulting increase in tax and penalty . . $’000 7,991 12,901 4,910

Pay-roll tax Net revenue collected . . . . $’000 5,357 14,838 9,481

Returns lodged . . . . . . . No. 26,119 25,046 -1,073

Investigations completed . . . . . No. 20 6 - 14

Pay-roll tax export incentive rebates— Claims received . No. 235 100 -1 3 5

Claims allowed . No. 424 132 -2 9 2

Amounts of rebates allowed . . . . $’000 2,402 1,109 - 1,293

Export incentive grants Claims received . . . . . No. 3,760 3,778 18

Claims allowed . . . . . . . No. 3,662 3,934 272

Amounts of grants allowed . . . . $’000 66,879 93,689 26,810

* or decrease ( — )

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(

1973-74 1974-75 Increase*

Estate duty N et revenue collected . . . . $’000 65,875 63,719 -2,156

Returns lodged . . . . . . No. 17,206 19,205 1,999

Original assessments made . . . . No. 17,697 19,666 1,969

Assessments amended . . . . No. 6,247 5,954 -2 9 3

Gift duty N et revenue collected . . . . $’000 9,725 16,204 6,479

Returns lodged . . . . . . No. 19,165 20,604 1,439

Original assessments made . . . . No. 18,408 21,307 2,899

Assessments amended . . . . No. 721 596 -1 2 5

A.C.T. stamp duty and tax N et revenue collected . . . . $’000 3,995 3,433 -5 6 2

Returns received . . . .

Other levies

. No. 2,262 2,276 14

Stevedoring industry charge— N et revenue collected . . . . $’000 20,203 22,411 2,208

Returns received . . . . . No. 1,449 1,123 -3 2 6

Wool tax— Net revenue collected . . . . $’000 26,531 64,288 37,757

Returns received . . . . . No. 2,586 2,260 -3 2 6

Tobacco charge— Net revenue collected . . . . $’000 535 505 - 3 0

Returns received . . . . . No. 89 19 - 7 0

Canning-fruit charge— Net revenue collected . . . . $’000 183 108 - 7 5

Returns received . . . . . No. 9 42 33

Exchange control-tax clearance certificates Applications received . . . . No. l,223f 1,223

Miscellaneous Inward mail (other than returns) . . . No. of

items

2,300,000 2,950,000 650,000

Properties valued . . . . . No. 111,126 83,983 -27,143

Staff employed at end of year . . . No. 11,422 12,401 979

Final notices issued to recover tax . . No. 563,713 696,620 132,907

Proceedings to recover tax . . . . No. 31,992 46,642 14,650

Cases transm itted to Boards o f Review . No. 350 327 - 2 3

* o r decrease ( —) f Since com m encem ent o f legislation on 23 D ecem ber 1974

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AUSTRALIAN TAXATION OFFICE: ORGANIZATION-1 AUGUST 1975

COMMISSIONER OF TAXATION—Sir Edward Cain, C.B.E. SECOND COMMISSIONER—W. J. O'Reilly, O.B.E. SECOND COMMISSIONER—P. J. Lanigan

General administration of the various taxing Acts; general supervision of assessment and collection of all taxes.

Control of policy considerations in the Australian Taxation Office associated with proposals for new or amended taxation laws

(other than sales tax rates, ex­ emptions and classifications and international taxation arrange­ ments) ; instructing on prepara­

tion of legislation to implement Government policy. First Assistant Commissioner: K. F. Brigden

Assistant Commissioner, General Legislation Branch: J. E. Scanlan Assistant Commissioner, Income Tax Legislation Branch:

D. J. Black

Control of policy considerations in the Australian Taxation Office associated with proposals for new or amended taxation laws

(other than sales tax rates, ex­ emptions and classifications) in relation to international taxation arrangements; instructing on preparation of legislation to implement Government policy; advising on revenue considera­ tions and preparation of estimates

of revenue from all taxes; design of rate scales and instalment schedules; research, statistical and publicity functions.

First Assistant Commissioner: T. P. W. Boucher

Assistant Commissioner, Treaties and Projects Branch: Μ. V. Riethmuller Assistant Commissioner, Revenue

and Taxation Analysis Branch: C. Rennie

Control of interpretation of non­ machinery provisions of taxation laws; preparation of rulings and instructions on applications of these provisions; preparation of

statements of case in appeals to Courts and references to Boards of Review; control of policy considerations associated with,

and instructing on preparation of legislation on, sales tax rates, exemptions and classifications; control of work on valuation of

land and improvements. First Assistant Commissioner: J. W. Curtin

Senior Assistant Commissioner, Appeals Branch: J. W. D. Donnelly Senior Assistant Commissioner,

Income Tax Branch: J. H. Geddes

Senior Assistant Commissioner, Sales Tax, etc., Branch : Η. H. Whalan Assistant Commissioner, Valuations Branch:

J. A. Howard

Control of management provi­ sions of laws governing all taxes, collection of taxes and imposi­ tion of additional tax; control of

organization, methods and pro­ cedures; control of accommoda­ tion, equipment, forms and personnel, including recruitment

and training, automatic data processing, administration of Head Office general services. First Assistant Commissioner:

F. E. Type

Assistant Commissioner, Auto­ matic Data Processing Branch: G. F. Flanagan, D.F.C.

Assistant Commissioner, Opera­ tions Branch: A. W. Walsh Assistant Commissioner, Special

Projects Branch: R. W. Kelton

Assistant Commissioner, Manage­ ment Services Branch: E. R. Marriott

Administration of taxation laws as directed in area concerned; examination of returns and

assessment and collection of tax; investigation of taxpayers' affairs; initiation of default action; pro­

vision of valuation service. Deputy Commissioners— Sydney: Melbourne:

Brisbane: Adelaide: Perth: Hobart:

Parramatta:

Canberra:

R. R. Gray L. T. FitzGerald Μ. B. Hogan M. C. Kahl J. Slattery

C. R. Woodhouse J. P. McDermott (acting) J. P. O'Halloran

Australian Taxation Representative— (London): J. W. Brown Counsellor (Taxation)—

(Washington): P. E. Simpson

M ANAGEM ENT, ORGANIZATION AND PERSONNEL

The task of administering the laws relating to income tax, sales tax, estate duty, gift duty and the various miscellaneous revenue charges levied by the Australian Parliament raises some unique problems which need to be kept in mind when any attempt is made to review the operation of the taxation laws. The volume

of transactions which must be handled by the staff of the Australian Taxation Office in the course of collecting more than $11,000 million in national revenues during a year is very large indeed, as the preceding Summary of Activities shows. However, such statistics can provide at best no more than a partial indication of

the true volume of work that has to be handled, or the rate of its growth.

Revenue authorities throughout the world are faced with similar difficulties. The basic task of calculating the amount of tax which each person is liable to pay is complicated by the ability of many taxpayers to so order their affairs as to minimize their taxation burdens and by the readiness of some citizens (no doubt

a small minority in relative terms, but difficult to identify in the general body of taxpayers) to falsify their returns, or to attempt to hide their income-producing activities altogether.

With the aid of computers and other modern office facilities, the basic task becomes progressively easier to manage but this tends to be offset by a progressive increase in complexity which comes from the devices to which some taxpayers and their professional advisers resort in their attempts to reduce or evade the

liability which the legislature has set out to impose on them. Particularly at times of high interest rates and financial stringency, this tendency is accentuated by the propensity of many taxpayers to defer payment of their admitted tax liabilities for as long as they can, either because they are in financial difficulties or because it is judged to be more profitable to defer payment of tax than to raise funds to meet their liabilities.

In such a situation, fine value judgments must be made in determining what is the appropriate size for the work force to be employed on tax administration. There is a certain amount of routine processing which simply must be done. Enforcement activities are highly profitable; the typical taxation investigation

officer produces, in the course of a year, some $200,000 in additional tax and penalties that might have escaped collection altogether but for his efforts. There is always room for further work in this field. There are, of course, many other

areas in which the scale of activities within the Taxation Office has a direct and significant effect on the national revenues. Last year, about $7,000 million was deducted by employers from the salaries and wages paid to their employees and had to be paid over to the Taxation Office at regular intervals. Unlike the credit manager of a commercial organization, the Commissioner of Taxation cannot confine his dealings to persons considered credit-worthy. Any employer, whatever his financial standing, has the right and duty to hold and account for public moneys collected as tax instalments, and the task of administering the system

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and protecting the public interest requires not only continuing vigilance but also a great deal of simple debt collecting and tedious but necessary clerical work.

Tasks of similar magnitude are involved when more than seven million returns have to be obtained each year from taxpayers, a proportion of whom are invari­ ably unwilling or dilatory, and when the amount of tax payable has to be assessed and collected. In times of inflation the tax administrator must order his priorities on the basis that tax deferred is tax partly lost.

A common feature of all of this work is that the labour requirements tend to vary in direct proportion to the number of transactions that has to be handled, and the number of transactions is almost wholly outside the control of the Taxation Office, depending primarily upon the number of taxpayers who are required by law to have dealings with the Taxation Office and the extent to which they complicate these contacts by entering into artificial arrangements, or by active or passive resistance to the normal operation of the taxation laws.

Over a number of years, there has been a clearly discernible trend of expan­ sion in work volume, partly the result of growth of the population and partly the result of the increasing elaboration and sophistication which accountants and lawyers are bringing to taxation practice. Over the greater part of the work of the Taxation Office, the volume of transactions that must be handled can be measured accurately and it is clear that the work volume has been increasing at a steady rate of about four per cent per year. In the enforcement areas where

there is virtually no limit to the effort that can profitably be expended in pro­ tecting the revenue, the expansion which could be justified on the basis of work needing to be done would no doubt be considerably higher.

In recent years, the growth rate of Taxation Office staff has in fact fallen far short of the four per cent increase in work volume. The average increase has been nearer two per cent, as a result of overall restraints imposed on the growth of the public service. The deficiency has been made up in part by the benefits of increasing automation in the assessing and routine processing branches, but only in part. The staff shortages have left their effects in backlogs of routine

work which should be kept up to date, and in the loss of the revenue which must be sacrificed from time to time when enforcement staff have to be diverted from their normal duties to help eliminate those backlogs of processing work which cannot be allowed to continue.

This highlights an important aspect of taxation administration which is some­ times overlooked. The efficiency of a taxation system cannot be measured directly by the success that is achieved in minimizing the costs of collection. For a time, a large amount of revenue will continue to come in even if enforcement activities are virtually suspended, but the loss of revenue may greatly exceed the savings achieved and, in the long run, public confidence in, and acceptance of, the system, will be undermined. In Australia we have managed over many years to keep the costs of collection down to a level of about one per cent of the total

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revenue collected. If present trends continue, it may well prove to be in the national interest, as well as highly profitable, to outlay on enforcement and collection activities a somewhat higher proportion of the total amount collected.

A n important first step towards relieving this situation was made during the current year when the Government approved the allocation to the Taxation Office of an additional 300 enforcement staff (100 investigation officers, 100 taxpayer auditors and 100 inspectors). We have every reason to believe that, when these new positions are filled by fully trained staff, they will increase the

national revenues by many times the cost of providing their services.

As things now stand, the Australian Taxation Office has a staff of some 12,000 officers available to carry out its many functions— a figure which is not out of line, on a population basis, with what is considered appropriate in other developed countries, but which nevertheless places a very high priority on making

the most effective use of the resources available for tax administration and on maximizing the productivity of the taxation office staff. The overriding adminis­ trative objective of the Australian Taxation Office must be to deploy its resources so that the maximum practicable degree of compliance with the taxation laws will be achieved, while ensuring that the taxpaying public will be submitted to a minimum degree of inconvenience when carrying out their obligations under the revenue laws.

During the year under review, the efforts to achieve this objective have been concentrated in eight particular areas—

(i) the improvement of public relations designed to raise the level of voluntary compliance with the income tax laws; (ii) the development of new enforcement techniques, aimed at achieving more effective results with the limited resources available for enforce­

ment work; (iii) the continued expansion and improvement of the Taxation Office computer systems and other office systems with the object of reducing labour requirements and improving productivity; (iv) rationalization and decentralization of the taxation organization;

(v) the development and implementation of improved management techniques designed to improve the effective output of the taxation staff; (vi) the development and implementation throughout the taxation organi­

zation of a comprehensive system of work measurement and manage­ ment control to ensure that the labour resources of the Taxation Office will be deployed flexibly so as to maximize productivity; (vii) the adoption throughout the branch offices of the taxation organi­

zation of a uniform system of performance appraisal, designed to help each staff member to achieve his or her full potential, and to ensure that the most efficient officers will be identified and given preference in promotion, as the Public Service Act requires; and

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(viii) continuing emphasis on all aspects of internal and external training to ensure that the efficiency of the taxation office work force will be brought to the highest practicable level.

Public Relations

The Taxation Office has always maintained a substantial staff of enquiry officers trained to assist taxpayers who have difficulty in preparing their returns or who are dissatisfied with their assessments. With the establishment of regional offices in many country centres, most taxpayers can now obtain official help with their taxation affairs within a reasonable distance of their homes. The creation of further regional offices is governed however by the need to maintain a realistic

balance between the establishment of those offices and the achievement of the most efficient and economical means of operation which at the same time provides an adequate service for taxpayers.

Explanatory notes designed to help taxpayers prepare their income tax returns are available from all branches of the Taxation Office and at Post Offices. During the current year, the explanatory notes for salary and wage earners were issued for the first time in five languages other than English— i.e., Greek, Italian, Serbo-Croat, Spanish and Arabic.

New Enforcement Techniques Traditionally, the Australian taxation system has been based on the examination of each income tax return by an assessor who makes a determination of the taxable income and tax payable on the basis of the information provided by the taxpayer. The main deterrent to tax evasion was the detailed examination each year of a relatively small proportion of cases by departmental investigation officers. While the investigation activities have always been highly profitable,

the number of cases that can be fully investigated with the limited resources available does not provide an adequate deterrent to evasion. The assessment process is limited in its effectiveness because, generally speaking, the assessor can only discover errors which are apparent on the face of the return.

The advent of computer processing has helped to remedy this position. For example, lists of dividends and interest paid by companies can now be fed into the computer system and compared with the amounts disclosed in the returns of the taxpayers who received the dividends and interest.

More recently, attention has turned to the processing techniques which have been found to be most effective in the United States and Canada, where the taxpayers’ returns receive a relatively cursory examination before computer processing, so that the available resources of skilled technical staff can be con­ centrated on the auditing in some depth of those returns which have been selected by computer techniques as being most likely to justify detailed examination.

During the year under review, the operation of the United States and Canadian methods was studied in the course of overseas visits and a committee of senior officers has prepared a comprehensive report on the opportunities for revising

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the Australian processing methods so that the time spent on conventional assess­ ment of returns may be reduced and a substantial proportion of the officers hitherto required for conventional assessing may be redeployed in outdoor audit

work, where their efforts are likely to make a greater contribution to the overall revenue collections.

In the case of employees, the most serious loss of revenue probably occurs when taxpayers with more than one job fail to lodge returns, or omit the income from a second, or part-time job. The additional force of 100 inspectors that has been approved will enable many of these cases to be detected. Work is also proceeding on the development of new computer techniques which will enable the

Taxation Office to concentrate its attention on those areas of employment where there is an excessively high proportion of defaulting employees and to identify, for special attention, those taxpayers who have probably failed to lodge returns because their tax instalment credits are not sufficient to cover their taxation

liabilities when finally assessed.

Special efforts have been made in all States to identify and prosecute taxpayers working under false names to avoid their income tax liabilities, and the resulting newspaper publicity no doubt has had a valuable deterrent effect.

During the current year, a great deal of attention was given to the practical problems necessarily involved in determining the taxation liabilities of multi­ national corporations whose activities extend over the borders of many countries and raise special problems in allocating world profits between the various countries which claim to tax some part of the proceeds. Two senior officers attended an

international conference of North and South American tax administrators in Ottawa which was primarily concerned with the problems of auditing multi­ national corporations and there have been informal consultations with the taxation administrations in several overseas countries. Two senior officers attended an

extensive training course conducted by the U.S. Internal Revenue Service in Washington and training courses have been conducted in Australia to brief investigation officers on the special techniques that are needed to handle this complex work.

System Improvements The progressive extension of the Taxation Office automatic data processing system continued during the year under review. Dual Control Data Cyber 72 computers have been installed in the Taxation Office headquarters in Canberra to carry out

the bulk processing for all branch offices throughout Australia, and to keep the accounts and principal assessing details of taxpayers on computer storage where this information will be immediately available to any branch office through computer terminals connected to the central computer by leased telephone lines.

The work of implementing the new system is proceeding. The national tax instalment system, which accounts for the tax deducted by employers from their employees’ earnings, is now wholly supported by the new central computer complex and the final system, providing a high degree of automation for all

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aspects of taxation processing, is already in successful operation for taxpayers living in South Australia, and will be extended to other States when testing and system modifications have been completed. When this project is completed, it is expected that a substantial number of positions, mainly in the accounts

branches in the State offices, will no longer be needed, and the occupants can be redeployed in more cost-effective enforcement activities.

During the year under review, the installation of the Taxation Office Direct Data Entry System throughout Australia was completed. This is a unique mini­ computer system, developed by the Taxation Office staff in collaboration with an Australian company, under which the enormous quantities of information which must be fed into the computer system for processing can be processed at minimum cost. The use of on-line editing and error correction facilities has eliminated the need for double punching of data to ensure its accuracy, and reduced by approximately one-third the number of operators needed to enter

a given quantity of data. In various other ways, the new system eliminates the need for work that had to be done under the system formerly in use, and enables returns to be processed largely in the order in which they are received, with obvious advantages for taxpayers and the administration. Modules of the Direct Data Entry system are now in successful operation in all of the State capitals, and in the branch offices at Parramatta, Townsville and Dandenong. Associated facilities use the same mini-computers for local printing of the output from the central computer complex in Canberra.

A great deal of the work of assessing the income tax liabilities of employees is now performed automatically by computer. Planning has commenced to extend this system to the assessment of the returns of taxpayers engaged in business activities, and this will in due course produce further manpower savings as well as adding to the capacity to detect tax avoidance.

Rationalization and Decentralization A highlight of the year under review was the opening by the Prime Minister, on 30 June 1975, of a new major branch of the Taxation Office at Parramatta, N.S.W.

The new office at Parramatta has a staff approaching 800, almost all of whom have transferred voluntarily from the Sydney office, ft is of a size which has been found to be most cost-effective for the complexities of taxation process­ ing, being large enough to enable specialized skills to be accumulated, and yet not

so large as to raise the problems of control which are unavoidable in the present very large branch offices in Sydney and Melbourne. The Parramatta office is responsible for the taxation affairs of some 800,000 taxpayers living in the western suburbs of Sydney and in the abutting country districts.

The move to an outer suburban location has proved to be extremely popular with the Taxation Office staff, many of whom are able to save up to two hours of travelling time, with corresponding savings in travelling expenses. There are similar advantages for many taxpayers, lawyers and accountants who have dealings

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The Prime Minister, the Hon. E. G. Whitlam, Q.C., M.P. and the Minister for Urban and Regional Development, the Hon. T. Uren, M.P. at the opening o f the Australian Taxation Office, Parramatta on 30 June 1975.

Reception area, First Floor, Australian Taxation Office, Parramatta which features a mural o f old Parramatta.

with the new office. It is proposed that as the opportunity offers, more branch offices of similar size to Parramatta will be opened progressively in other places, so that staff members living in those areas can have the advantage of working closer to their homes.

Although there are inevitably costs involved in setting up a major new office in a decentralized location, there is every reason to believe that these costs will be recouped as a result of the greater productivity that can be maintained in an office of optimum size, in which the staff can avoid the need for extensive travelling to and from work.

The establishment of further offices comparable to Parramatta is not presently practicable because of the absence of suitable accommodation at the centres which appear most suitable for decentralized offices. However, steps were taken during the year under review to re-locate about 150 Melbourne-based officers

in Dandenong, in an operation which will provide the nucleus for a substantially larger office when suitable accommodation becomes available.

The regional office at Townsville, which has been in operation for several years, has been substantially expanded to enable it to supervise all the activities of the Taxation Office in North Queensland, in an area extending from Mackay to Cape York. A module of the mini-computer based Direct Data Entry System

was installed in Townsville and preparations were made to use locally-based staff for most of the work of assessing the income tax liabilities of North Queens­ land taxpayers using the national computer system to produce assessments and refund cheques.

A new regional office was opened at Mackay, bringing to twenty the number of branch offices now operating outside the State capital cities.

Improved Management Techniques Notwithstanding the progress that has been made with automation, there remains a great deal of work of a routine nature that must be done in any taxation office, and even the work that requires high technical skills tends to be repetitious in

certain respects. This makes it necessary to give a great deal of attention to revising management techniques to ensure that the staff will be motivated to work efficiently.

In recent years the Taxation Office has received assistance from two profes­ sional behavioural scientists who have helped to relate to the particular tasks of the Taxation Office the recent advances that have been made overseas in management theory and training. In various ways, the approach to managing

the operations of the Taxation Office is being modified so that officers at all levels will be able to perform more meaningful tasks and to encourage them to accept a higher degree of personal responsibility for the efficient carrying out of their duties.

Attention has been given to the possibilities of exploiting the natural dynamics of small working groups. Assessors are being encouraged to take a group approach

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to the achievement of output targets and to join with their supervisors in plan­ ning their work in advance so that each section of assessors will make the most effective use of the varying skills of its members. In the field of data entry, it has been found that the most effective results can be achieved if data processing

operators work together in groups of eight, accepting common responsibility for achieving a group output rather than concentrating on individual performance. Techniques have been developed to enable each group to be given a daily alloca­ tion of work, of constant volume, which the operators divide up amongst them­ selves according to their personal preferences for particular kinds of work. The

new approaches are still being developed with the co-operation of the staff affected and there are already indications that the new methods are producing greater productivity and better staff morale.

Work Measurement and Management Control

Work measurement techniques are now in use in all branches of the Taxation Office as the basis for setting standards of acceptable output and identifying problem areas in which the available staff may not be deployed to the greatest advantage. As applied to the complex technical work of the Taxation Office, work measurement necessarily proceeds in a different manner to what has been found effective in industrial situations. Nevertheless, it has been found that, even

in some of the more complex aspects of taxation work in the branch offices, transactions tend to be repeated with sufficient frequency to enable standard times to be established by reference to average performance, and to provide a basis for estimating future labour requirements with a reasonable degree of precision and measuring productivity.

The standards established in this way have been incorporated in a compre­ hensive Management Control System, now operating in all States, under which section heads use the standard times to estimate in advance the manpower that will be needed to handle the volume of work that must be processed in each four-weekly period, and compare this with the manpower that will be available. In the acutely seasonal operations of the Taxation Office, this provides an indica­ tion of what action should be taken in advance to redeploy staff from areas in

which work loads are currently light to areas in which activities are at their peak. As the work progresses, the Management Control System provides for a comparison of the output actually achieved with the output which might have been expected according to the standard times for the particular class of work. The productivity index produced by this comparison identifies those areas in which greater management effort may be needed to eliminate sources of inefficiency.

When this new system has been fully developed and perfected, it should help to produce substantial improvements in productivity, while at the same time ensuring that the operations of the Taxation Office will be carried out more efficiently as a result of the enforced commitment of section leaders to forward planning and management by objectives.

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Performance Appraisal

The Management Control System is now complemented by a uniform system of Performance Appraisal which is in operation in all branch offices. This is designed to help each officer to recognize the strengths and weaknesses of his performance. It also helps in the selection of officers for promotion.

Over the past twenty years, the Taxation Office operated a Merit Rating system to identify the most efficient officers for promotion. However, this was largely a closed system, not generally available for inspection by the officers reported upon, and it reflected the management theories current at the time of

its adoption in that it concentrated, possibly excessively, on the personality and personal qualities of the officer being rated.

The new system has been designed as an open system, under which each officer has full access to the reports on his performance and is encouraged to add his personal comments or reservations. The appraisal system concentrates on the quality of the officer’s work, rather than on his personality, and attempts to identify the various elements in his work which can be improved with further effort or training. The appraisal is made at six-monthly intervals by the officer’s

supervisor and by the supervisor’s immediate superior. The form that is completed for this purpose is then shown to the officer whose performance is being appraised and it is discussed in detail with him, with particular emphasis being placed on how he might improve the quality of his work and compete more effectively for promotion.

While no system of performance appraisal can be expected to please everyone, there does appear to be a general acceptance within the Taxation Office that the new system is a marked improvement over the Merit Rating system that it superseded and that, if promotion is to be made on the basis of relative efficiency as the Public Service Act requires, there is a need for some systematic reporting, which will give each officer regular feedback on the level of his performance and

an opportunity to put his own point of view and, as may be seen necessary, to eliminate unsatisfactory elements that may be preventing him from winning promotion or reaching his true potential.

From the viewpoint of the administration, the new system is expected to make a dual contribution to overall productivity by encouraging individual officers to improve their performance and by ensuring that the most efficient officers will be identified and selected for higher duties and tasks which will fully utilize their particular abilities.

Staff Training

Throughout the year, a high priority was given to all aspects of training designed to enable the Taxation Office staff to carry out their duties with greater efficiency.

As in previous years, the major emphasis was on a series of Executive Development Conferences in which groups of officers from all States were brought together for short residential courses in which they were briefed on the latest developments in management theory which seem to have particular relevance to the work of the Taxation Office. They were encouraged to bring their collective

15

experiences to bear in critically reviewing the present methods of carrying out their tasks and planning ways in which the work might be performed more efficiently. Six of these conferences were held in Canberra during the year, and there were three similar conferences held on a non-residential basis in State

branches.

In addition, five seminars were held in State branches for staff working on the Direct Data Entry System to further their understanding of the group concepts which are being developed in this area, and to identify ways in which productivity and working conditions could be improved.

New approaches were developed for training supervisors and special ‘self­ pacing’ instruction packages were developed to assist in the training of assessors in the technicalities of their particular tasks.

The introduction of the Performance Appraisal system required a substantial training effort to ensure that supervisors would understand the new system and apply it consistently. For this purpose, a total of fifty-six special courses were con­ ducted during the year, and were attended by 1,140 of the supervisors who will be

required to make performance appraisals.

In all, a total of 629 internal courses of all types were conducted during the year. These courses were attended by 10,130 officers, 5,226 of whom were females. In addition, every suitable opportunity was taken to use the training courses provided by the Public Service Board and relevant courses presented by organizations outside the public service. Two officers attended a training course conducted by the Internal Revenue Service in the United States. At the end of

the year, 87 officers were attending ‘full-time’ training courses of various kinds. Most of these were Cadet Taxation Officers, selected during the final stages of their tertiary studies, while the remainder were mainly taxation officers granted leave to pursue full-time studies at universities or colleges of advanced education.

P E R S O N N E L

The officers throughout the Taxation organization have again responded in a most generous and dedicated way to the discharge of their responsibilities and I take this opportunity to express to them my appreciation of, and gratitude for, this response.

Changes in E xecu tive P ersonnel

Mr M. C. Kahl who had been appointed in October 1972 as Secretary to the Taxation Review Committee (The Asprey Committee) resumed duty as Deputy Commissioner of Taxation, South Australia, in April 1975. Mr W. Parker who had acted very capably in the position of Deputy Commissioner of Taxation during the absence of Mr Kahl resumed duty as Assistant Deputy Commissioner of Taxation, South Australia.

Mr J. P. McDermott, formerly an Executive Officer in Head Office was transferred to the position of Acting Deputy Commissioner, in the new office in Parramatta, N.S.W., in July 1975. Mr J. E. Marriage, formerly Counsellor (Taxation), Washington, was transferred to a position of Director Assessing Production in Parramatta. Mr P. E. Simpson, Assistant Executive Officer, Head Office, was transferred to the position vacated by Mr Marriage.

16

Mr J. E. Hodgins vacated the position of Assistant Deputy Commissioner of Taxation, Victoria, in June on reaching retirement age. I record my appreciation of Mr Hodgins’ capable and loyal service which he has given during his long association with the Taxation Office.

It is with regret that I record the death in March 1975 of Sir Patrick

McGovern, C.B.E., who was Commissioner of Taxation during the period May 1946 to April 1961.

17

R E V E N U E

Revenue from taxes and charges administered by the Commissioner of Taxation is paid into the Consolidated Revenue Fund. The term ‘collections’ as used in this report refers to net revenue received from all sources. Thus, in the case of income tax, collections include net tax instalment deductions (including proceeds from the sale of tax stamps) from salaries and wages (gross amount less refunds), withholding tax deducted from dividends and interest paid to non­ residents, payments received on account of assessments issued to individuals (including provisional tax) and companies and instalments of company tax. For levies other than income tax, collections cover payments remitted with returns, amounts received in payment of assessments and proceeds from sales of duty stamps. Any refunds or rebates are deducted from these amounts in arriving at net collections.

Revenue Collections and Grant Payments Australian Taxation Office revenue collected in the financial year 1974-75 amounted to $11,500.7m, an increase of $2,876.1m over 1973-74. Payments of Export Incentive Grants in 1974-75 amounted to $92.3m.

Collections for each levy for the financial years 1972-73, 1973-74 and 1974-75 together with the amount of Export Incentive Grants paid in each of these years are set out on the next page.

Total collections of income tax from individuals in 1974-75 were $2223.8m greater than in 1973-74 even though substantial overall reductions in rates were made in the 1974-75 financial year. Gross collections of tax instalment deductions increased by $1908.6m reflecting the higher levels of average earnings

and employment in 1974-75. Refunds of tax instalments increased by $75.7m. Net collections on assessments of individuals increased by $390.9m as a result of increases in business incomes and property incomes.

Income tax collections from companies were $404.9m greater than in 1973-74 mainly because of increases in company incomes assessed to tax in 1974-75, and despite the reduction in the rate of tax on companies other than private companies and friendly society dispensaries.

Collections of withholding tax on dividends increased by $3.2m and with­ holding tax on interest by $5.7m in 1974-75. Sales tax collections were $185.5m greater in 1974-75 as a result of increased sales in all three rate classes. The estimated percentage increases in value of sales in the various rate classes were as follows:

Estimated

Rate class increase in value

of sales %

Third Schedule— 2j- per cent (household goods) . . 17.0 General rate class— 15 per cent (including commercial vehicles and motor spare parts) . . . . 25.0

Second and Fifth Schedules— 2 7 i per cent (other taxable goods including motor cars and station wagons) . . . . · · · 26.2

18

The rates applicable to commercial vehicles, as they affected 1974-75 collections, were 15 per cent up to 28 January 1975, 5 per cent from 29 January to the end of April and 7 per cent in May 1975. The rates on motor cars and station wagons during these periods were 27Ί- per cent, 15 per cent and 17£ per cent respectively.

TAXATION OFFICE REVENUE COLLECTIONS AND EXPO RT INCENTIVE GRANTS PAYMENTS Financial Years 1972-73 to 1974-75

Levy

1972-71 1973-7^ 1974-75

Amount Per cent Amount Per cent Amount Per cent

$ $ $

Income tax— Individuals— Tax instalment deductions—

Gross . . . 3,777,087,160 5,010,246,299 6,918,868,015

Refunds . . 616,405,688 771,855,336 847,574,767

N et . . . 3,160,681,472 48.0 4,238,390,963 49.1 6,071,293,248 52.8

Collections on assess-ments (net)f . 928,797,369 14.1 1,251,871,936 14.5 1,642,725,626 14.3

Total individuals . 4,089,478,840 62.1 5,490,262,899 63.7 7,714,018,874 67.1

Companies . . 1,561,287,326 23.7 1,953,927,073 22.7 2,358,808,697 20.5

Withholding tax—· Dividends . . 51,197,267 0.8 56,648,029 0.7 59,818,327 0.5

Interest . . 21,406,024 0.3 22,588,324 0.3 28,298,251 0.2

Total income tax . . 5,723,369,458 86.9 7,523,426,325 87.2 10,160,944,149 88.4

Sales tax . . : 764,968,502 11.6 968,758,243 11.2 1,154,290,467 10.0

Pay-roll tax— Gross . . . 6,338,017 0.1 7,700,839 0.1 15,712,576 0.1

Refunds of pay-roll tax rebates . 17,980,948 2,343,029 874,648

Net . . . -11,642,931 - 0 . 2 5,357,811 0.1 14,837,928 0.1

Estate duty . . . 66,350,295 1.0 65.875,245 0.8 63,718,524 0.6

Gift duty . . . 6,941,157 0.1 9,725,055 0.1 16,203,924 0.1

A.C.T. stamp duty and tax 3,588,751 3,994,860 3,432,784

Wool tax . . . 11,170,202 0.2 26,531,399 0.3 64,287,901 0.6

Stevedoring industry charge 17,971,072 0.3 20,203,104 0.2 22,411,142 0.2

Tobacco charge . . 509,546 535,353 504,838

Canning-fruit charge . 136,485 182,829 108,373

Total . . . 6,583,362,536 100.0 8,624,590,224 100.0 11,500,740,030 100.0

Export incentive grants . 40,359,865 "

65,798,694 92,275,743

t Includes collections from trustees o f su p eran n u atio n funds liable for tax u n d er the p rov'sions o f D ivision 9 b o f

P a rt III. o f th e Incom e T ax A ssessm ent A ct: 1972-73, $942,087; 1973-74, $1,495,285, 1974-75 $1,791,827.

Gross pay-roll tax collections which relate mainly to salaries and wages paid in the Australian Capital Territory and in the Northern Territory were S8.0m greater than in 1973-74. The rate at which pay-roll tax was levied was increased from 31 per cent to 41 per cent from 1 July 1974 and from 41 per cent to 5 per

cent on 1 December 1974.

19

Collections of estate duty were $2.2m less than in 1973-74 mainly because of the later issue of assessments in 1974-75. Gift duty collections were $6.5m greater in 1974-75 because the value of assessments issued was greater than in 1973-74.

Collections of A.C.T. stamp duty and tax, tobacco charge and canning-fruit charge were all slightly less than in 1973-74.

The increase of $37.8m in wool tax collections resulted mainly from an increase in the rate of wool tax that applied from 2 September 1974.

Collections Compared with Budget Estimates A comparison of the Budget estimates and actual results for the 1974-75 financial year is set out below:

COM PARISON OF ADJUSTED BUDGET ESTIMATES AND ACTUAL RESULTS(a) Financial Year 1974-75

Tax or duty

Adjusted Budget j estimate(a)

Actual

I result

Variation

S'000 $'000 $'000 %

Income tax— Individuals— Tax instalment deductions— Gross . . . . . . 6,679,000 6,918,868 +239,868 3.6

Refunds . . . . . 930,000 847,575 - 82,425 8.8

Net . . . . . . 5,749,000 6,371,293 + 322,293 5.6

Collections on assessments (net) . 1,694,000 1,642.726 - 51,274 3.0

Total individuals . . . 7,443,000 7.714,019 + 271,019 3.6

Companies . . . . . 2,353,000 2,358,809 + 5,809 0.2

Withholding tax— Dividends . . . . . 62,000 59,818 - 2,182 3.5

Interest . . . . . 24,000 28,298 + 4,298 17.9

Total income tax . . . 9,882,000 10,160,944 + 278,944 2.8

Sales tax . . . . . . 1,105,000 1.154,290 + 49,290 4.5

Estate duty . . . . . . 65,000 63,718 - 1,282 2.0

Gift duty . . . . . . 12,000 16,204 + 4.204 35.0

Pay-roll tax . . . . . . 11.800 15,712 + 3,912 33.0

A.C.T. stamp duty and tax . . . 4.500 3,433 - 1,067 23.7

TotaI(6) . . . . 11,080.300 11,414,301 + 334,001 3.0

( a ) Budget estim ates adjusted for N ovem ber 1974 m easures. (b ) Excludes stevedoring industry charge, wool tax,

tobacco charge and canning-fruit charge.

The amounts shown above for gross tax instalment deductions, collections on assessment (individuals) and companies in the column headed ‘adjusted Budget estimate’ are different from those estimates appearing in the 1974-75 Budget Speech and papers. The estimates shown in this report reflect the measures

announced by the Prime Minister on 12 November 1974.

Gross collections of tax instalment deductions exceeded the Budget estimate by $239.9m because average earnings in 1974-75 increased at a greater rate than had been estimated. Refunds of tax instalment deductions were $82.4m less, mainly because the amount of concessional deductions allowed on assessment

was less than estimated.

20

announced in the Budget and, again, in January 1975, when the further reductions announced by the Prime Minister on 12 November 1974 were compressed into the second half of the financial year, affecting P.A.Y.E. collections from February 1975. Net proceeds of tax instalment deductions vary from month to

month chiefly because of the considerable flow of refunds from July to December.

The returns of salary and wage earners are assessed mainly in this period and most of these taxpayers receive refunds of excess instalment deductions on assessment of their tax.

Payments on assessments of individuals are heaviest in the last four months of the financial year because assessments involving provisional tax are not due for payment until 31 March at the earliest. Receipts from this sector in the months from July to October are, in the main, in respect of prior years’

assessments.

The introduction of payment of company tax by instalments as from 1973-74 was intended to spread the flow of company payments more evenly over the year, where they had previously been concentrated in the second half of the year. For 1974-75 instalments were payable on 15 November 1974 and 15 February

1975, but the Government decided to waive the February instalment and to fix 30 April 1975 as the first due date for payment of the balance of tax payable on assessment.

‘Self-assessment’ of Provisional Tax Revenue from income tax is affected by the right of taxpayers to have the provisional tax payable in respect of income derived during the financial year varied to take account of their estimated taxable income for that year.

The following table gives details of the net variations of provisional tax (l.e., total amount of decreases less increases) by self-assessment in respect of assess­ ment years 1973-74 and 1974-75, i.e., provisional tax imposed in respect of the incomes of the years 1973-74 and 1974-75.

NET VARIATION OF PROVISIONAL TAX BY SELF-ASSESSMENT

Assessment Years 1973-74 and 1974-75

Office

1973-74 assessment year 1974-75 assessment year*

Number o f variations Net decrease

Num ber of variations

Net

decrease

S'000 S'000

New South Wales and A.C.T. . . . 26,319 35,113 27,795 54,233

Victoria . . . . . . . 18,806 24,882 20,612 42,175

Queensland . . . . . . . 12,565 17,487 12,494 28,661

South Australia . . . . . . 5.544 5,796 7,851 16,133

Western Australia . . . . . 5,996 7,273 7,893 15,168

Tasmania . . . . . . . 1,481 1,782 1,705 3,694

Northern Territory . . . . . 262 428 197 450

Total . . . . . . . 70,973 92,761 78,547 160,514

* Incom plete. Includes variations to 30 June 1975.

22

Refunds of Revenue

The revenue collections shown in the table on page 19 are net amounts after refunds of revenue made in the course of the year. Refunds are of two types— those charged to special appropriations under authority of the Income Tax and Pay-roll Tax Assessment Acts and those charged to special appropriations under

authority of the Audit Act.

Income tax instalment refunds, by far the greatest part of income tax refunds, are made when the instalments deducted during the year exceed the tax assessed on incomes for that year. The appropriation from the consolidated revenue fund for these refunds is made under the authority of section 22 lu of the Income

Tax Assessment Act. Special appropriations of the consolidated revenue fund are also authorised for refunds payable under section 128e of the Income Tax Assessment Act 1936-1966 and sections 160an and 221yw of the Income Tax Assessment A ct 1936-1973.

Section 16g of the Pay-roll Tax Assessment Act 1941-1967 and section 16m of the Pay-roll Tax Assessment A ct 1941-1973 authorize the appropriation of the consolidated revenue fund in respect of rebates allowed under the export incentive scheme.

Refunds made from special appropriations under section 37a of the Audit Act include refunds of money paid to the revenue in error, refunds of tax overpaid including refunds of provisional tax and refunds due to the amendment of assessments.

The table below sets out the total amounts of refunds which were charged to special appropriations under the Audit Act and Assessment Acts during the 1973-74 and 1974-75 financial years.

REFUNDS OF REVENUE

Financial Years 1973-74 and 1974-75

Tax, duty or charge 1973-74 1974-75

s s

Income tax— Individuals— Tax instalment deductions . . . 771,855,336 847,574,767

Other . . . . . . 90,905,121 120,349,493

Companies . . . . . . 11,080,709 16,070,061

Withholding tax—Dividends . . . 422,908 292,438

Interest . . . 30,961 10,444

Total Income tax . . . . 874,295,035 984,297,203

Sales tax . . . . . . 2,438,179 3,701,650

Pay-roll tax . . . . . . 350,809 64,793

Estate duty . . . . . . 2,031,274 2,472,757

Gift duty . . . . . . 50.245 42,297

A.C.T. stamp duty and tax . . . 10,840 14,741

Wool tax . . . . . . 164,272 30,506

Stevedoring industry charge . . . 51,902 6,761

Total . . . . . . 879,392,556 990,630,708

23

Tax Outstanding

The amount of tax assessed but not paid at 30 June 1975 was $580.6m or 5.8 per cent of the total amount of $9,981.7m available for collection in 1974-75. By comparison, $425.6m (5.6 per cent of the amount available for collection in 1973-74) was unpaid at 30 June 1974.

The following table sets out the amount outstanding at 30 June for each of the financial years 1964-65 to 1974-75 both as an absolute amount and as a percentage of the total debit available for collection.

AMOUNT DEBITED AND AM OUNT OUTSTANDING—ALL LEVIES (a)

Financial Years 1964-65 to 1974-75

Financial year Am ount

debited*

Amount outstanding at 30 June

Amount outstanding as percentage of amount debited

$ s %

1964-65 . . . . 2,803,626,184 167,401,140 6.0

1965-66 . . . . 3,084,232,537 147,248,893 4.8

1966-67 . . . . 3,258,511,493 151,597,314 4.7

1967-68 . . . . 3,645,368,119 164.401.653 4.5

1968-69 . . . . 4,079.045,737 193,091.299 4.7

1969-70 . . . . 4,746,547,306 239,013,289 5.0

1970-71 . . . . 5,431,667,027 302,413.240 5.6

1971-72 . . . . 5,762,866,026 267,137,123 4.6

1972-73 . . . . 6,438,470,263 298,515,355 4.6

1973-74 . . . . 7,592,397,935 425,557.867 5.6

1974-75 . . . . 9,981,708,296 580,628,751 5.8

(o) D oes n o t include details in respect o f w ithholding tax and A .C .T . stam p duty and tax. A .C .T. stam p duty and tax o u tsta n d in g was as follow s: at 30 Ju n e 1971, $272; 1972, $377; 1973, $847; 1974, $872; 1975, $2,285. * Includes am o u n t outstan d in g a t previous 30 June

The table below compares for the financial years 1973-74 and 1974-75 the amount debited, amount received and the amount outstanding for the various taxes collected.

AMOUNT DEBITED, AMOUNT CREDITED AND AMOUNT OUTSTANDING—ALL LEVIES(o)

Financial Years 1974-75 and 1974-75

F inancial year 1973-74 I F inancial year 1974-75

Levy

A m ount debited *

A m ount credited

A m o u n t outstanding

A m ount debited*

A m ount credited

A m ount outstanding

$ 8 S S $ $

Incom e tax . . 6,461,790,911 6,072,332,999 389,457,912 8,569,158,893 8,060,836,308 508,322,585

Sales tax . . 971 572,902 962.899,252 8,673,650 1,169.224,820 1,157,735,351 11,489,470

Pav-roll tax . . 9,139,732 8,374.616 765,116 15,507.563 14,902,392 605,171

E state duty . . 81,831,133 65,874,157 15,956,976 93,147,947 63,739,046 29,408,901

G ift duty . . 20,411,773 9,725,605 10,686,168 47,030,112 16,181,560 30,848,552

W ool tax . .

Stevedoring industry 26,729,294 26,712,153 17,141 64,710,890 64.660,535 50,355

charge . . 20,204,008 20,203,104 904 22,389,100 22,376,769 12,331

T o b acco charge . 535,353 535,353 504,838 504,838

C anning-fruit charge 182,829 182,829 . . 34,132 142,745 C r 108,613

T otal . . 7,592,397,935 7,166,840.068 425,557.867 9,981.708.296 9,401,079,545 580,628,751

( a ) See fo o tn o te to previous table. * Includes am o u n t outstanding at previous 30 June.

24

The ‘amount credited’ as shown in this table differs from the amount collected and paid into the consolidated revenue fund. The supplement to the Fifty-third Report, ‘Taxation Statistics 1973-74’, contains a schedule for each levy, setting out the amount debited, amount credited and the amount outstanding in each office for the 1972-73 and 1973-74 financial years. Footnotes to those schedules

explain the differences between the amount credited and collections paid into the consolidated revenue fund.

The figures for income tax from the Australian Taxation Office Revenue Account that are summarised in the table above include only those tax instalments of individuals that had been applied against assessments in the relevant financial year. In particular, they do not include the amount of the excess tax instalments

that were refunded or the amounts that had not been applied against assessments. Of the total tax instalments collected in respect of 1973-74 wages and salaries, about $441m had neither been refunded nor applied against tax at 30 June 1975. The amount for 1972-73 instalments not applied at 30 June 1975 was $195m.

The table below sets out the amounts of tax outstanding for each tax at the close of the financial years 1973-74 and 1974-75 and also the percentage of tax outstanding to amounts debited for those years.

TAX OUTSTANDING: AM OUNT AND PERCENTAGE OF AMOUNT DEBITED Financial Years 1973-74 and 1974-75

Levy

As at 30 June 1974 As at 30 June 1975

Amount outstanding

Percentage of amount debited * Amount

outstanding

Percentage of amount debited*

s s

Income tax . . . 389,457,912 6.0 508.322,585 5.9

Sales tax . . . . 8,673,650 0.9 11,489,470 1 .0

Pay-roll tax . . . 765.116 8.3 605,171 3.9

Estate duty . . . 15,956,976 19.5 29,408,901 31.6

Gift duty . . . . 10,686.168 52.3 30,848,552 65.6

Wool tax . . . . 17,141 50,355 0.1

Stevedoring industry charge . S04 12.331 0.1

Tobacco charge . . .

Canning-fruit charge . .

‘ ‘

C r 108.613

Total . . . . 425,557,867 5.6 580,628,751 5.8

* A m ount debited includes am ount outstan d in g at previous 30 June.

25

Analysis of Tax Outstanding

The tables below set out the results of analyses of income tax on individuals and companies and of estate duty outstanding at 30 June 1975. The original due date for payment is notified on the relevant notice of assessment. A later due date may be fixed by the Taxation Office where the taxpayer seeks an extension of

time to pay. Procedures for collection of the tax or duty are brought into operation when it is found that the amount outstanding has not been paid by the relevant due date.

ANALYSIS O F TAX OUTSTANDING AT 30 JU N E 1975 INCOM E TAX—INDIVIDUALS

N o t due

O riginal due date Size o f am o u n t

o u tsta n d in g

C lassification o f am ounts o u tstanding paym ent before

30 June 1975

1 A pril 1975 to 30 June 1975

Before 1 A pril 1975

U p to

$999

$1,000 to $1,999 $2,000 a n d over

T o tal

$m Sm Sm Sm Sm $m Sm

N o t due fo r paym ent before 30 June 1975 ............................................. 8 6 .0 10.7 10.1 65.1 8 6 .0

E xtensions o f tim e cu rren t a t 30

J u n e 1975 a n d /o r recovery action deferred because o f— O bjections, appeals a n d relief applications . . . 15.6 37.8 2 .3 2 .2 48 .9 5 3 .4

O th er reasons . . . 3 .4 1 .2 0 .4 0 .4 3 .8 4 .5

Cases involving ban k ru p tcy an d

liquidation . . . . 0. 4 9. 7 0. 8 1. 1 8. 2 10.1

O th er cases w here p aym ent being so u g h t . . . . . 145.7 6 0 .8 2 8 .8 2 4 .0 153.7 206.5

T otal . . . . 86.0 165.1 109.4 4 3 .0 3 7 .8 279.7 3 6 0.5

O th er debit balances . .

T o tal debit balances . .

T o tal cred it balances . .

N et am ount outstanding at 30 June 1975 . .

0 .7

361.2 2 6 .8

334.4

ANALYSIS OF TAX OUTSTANDING AT 30 JU N E 1975 INCOM E TAX—COMPANIES

N o t due

O riginal d u e date Size o f am o u n t

outstan d in g

Classification o f am ounts outstan d in g paym ent before

30 June 1975

1 A pril 1975 to 30 Ju n e 1975

Before 1 A pril 1975

U p to

S4,999

55,000 to $19,999 $20,000 and over

T o tal

Sm Sm Sm Sm Sm Sm $m

N o t due for paym ent before 30 June 1975 ............................................ 2 2 .9 2 .5 4.1 16.3 2 2 .9

Extensions o f tim e cu rren t at 30

Ju n e 1975 a n d /o r recovery action deferred because o f— O bjections, appeals an d relief applications . . . 2 9 .7 37.3 1.6 5 .5 59.9 6 6 .9

O ther reasons . . . 7 .0 4 .2 0.1 0 .6 10.4 11.2

Cases involving bankruptcy and liquidation . . . . 1. 0 11.2 0 .7 1.3 10.4 12.3

O th er cases where paym ent being so u g h t . . . . . 6 8 .6 3 5 .7 10.2 2 0 .4 73 .7 104.3

T otal . ‘ . 22 .9 106 3 88.4 15.0 3 1 .9 170.6 2 1 7 .5

O th er debit balances . .

T o tal debit balances . .

T otal credit balances . .

N et am ount outstanding at 30 June 1975 . .

0 . 1

2 1 7 .6 4 5 .3

172.3

26

ANALYSIS OF TAX OUTSTANDING AT 30 JUNE 1975 ESTATE DUTY

N o t due

fo r

O riginal due d ate Size o f am ount

outstanding

C lassification o f am o u n ts o u tsta n d in g p aym ent before

30 June 1975

1 A pril 1975 to 30 June 1975

Before 1 A pril 1975

U p to

$4,999

55,000 to $19,999 $20,000 a n d over

T otal

Sm Sm Sm Sm I Sm Sm Sm

N o t d u e fo r pay m en t befo re 30 June 1975 . . . . .

E xtensions o f tim e cu rre n t a t 30 June 1975 a n d /o r recovery action

deferred because o f— O bjections an d ap p e als . .

^ O th er reasons . . .

Cases involving b an k ru p tcy and

liq u id atio n . . . .

O th e r cases w here p ay m en t being so u g h t . . . . .

6. 8 ..

0. 7

1. 8

7. 6

1. 8

2. 0

9. 9

0. 7

0. 1

0. 2

1. 3

1. 6

0. 5

0. 8

3. 9

4 .5

1.8 2 .8

12.3

6 .8

2 .4 3 .8

17.5

T o tal debit balances . . 6 .8 10.0 1 3 .7 2 .3 6 .8 21 .3 3 0 .5

T o ta l c re d it b alan ces . . 1. 1

N e t am ount outstanding at 30 Ju n e 1975 . . 2 9 .4

Tax Written Off

The amounts of tax written off as irrecoverable under section 70c of the Audit Act during the financial years 1973-74 and 1974-75 are set out in the following table: IRRECOVERABLE TAX W RITTEN OFF

Financial Years 1973-74 and 1974-75

Levy 1973-74 1974-75

Income tax . . . . .

S

2,613,644

S

2.581,551

Sales tax . . . . . . 478,063 547,634

Pay-roll tax . . . . . 147,038 83,485

Estate duty . . . . . 5,038 59,944

Gift duty . . . . . . 3,974 338

Woo! tax . . . . . . 27.573

T o t a l ......................................... 3,275,330 3.272,952

In addition tax instalment deductions amounting to $1,620,351 and $1,361,683 were written off in the 1973-74 and 1974-75 financial years respectively.

The above table does not include amounts in respect of which relief was granted under section 265 of the Income Tax Assessment Act or section 70 of the Pay-roll Tax Assessment Act (or section 69 of the Pay-roll Tax (Territories) Assessment A ct). The amounts of tax in respect of which relief was granted under those provisions in the financial years 1970-71 to 1974-75 are shown in the table on page 34.

13941/75— 2

27

A S S I S T A N C E T O T A X P A Y E R S

One of the functions of the Australian Taxation Office is to provide guidance to taxpayers about the taxation laws and the responsibilities and rights of tax­ payers under those laws. Over the years a considerable staff of enquiry officers has been available in capital cities to assist taxpayers requiring specific advice

either by means of personal interview, telephone or correspondence. Appreciation of the value of this service to taxpayers has led to its extension along with the progressive establishment of branch and regional offices in many centres.

In late June and early July each year, an after-hours telephone inquiry service is provided in all capital cities so that taxpayers, particularly salary and wage earners, may discuss any problems encountered while they are preparing their returns. To assist country taxpayers, extensive tours of rural areas are undertaken early in July each year by experienced officers. These tours are widely publicized in local newspapers and by radio and television stations.

Information explaining the scope of the various taxes is included in brochures, guides (some of which are published in languages other than English) and in the instructions on the relevant tax forms. More detailed information on matters of interest to particular groups of taxpayers is provided in the books and leaflets which are listed below. Close contact is also kept with tax agents who are advised of changes in the law and procedures that affect their clients. Ready reckoners, used principally by tax agents, are published regularly and are available to all taxpayers. Schedules of tax instalments to be deducted weekly, fortnightly or monthly by employers from salaries and wages may be obtained from taxation offices and when a change in rates of instalments occurs, schedules are distributed through Post Offices.

The more important publications issued free of charge are as follows: Your Guide to the 1975 Salary and Wages Income Tax Return Form S—June 1975. A brochure which shows by example how to complete the 1974-75 financial year salary and wages form S.

Taxation and Age Concessions— for the year ended 30 June 1975. A leaflet describing the operation of the taxation law as it applies to persons of pensionable age.

Notes on Taxation of Dividends, Interest and Royalties derived by Non­ Residents of Australia— April 1973— 8 pages. This pamphlet provides brief answers to questions that are of general interest concerning the taxation of dividends, interest and royalties derived by non-residents

of Australia.

Income Tax for Primary Producers—June 1975 (ninth edition)— 71 pages. Published by the Department of Agriculture in co-operation with the Taxation Office, this booklet sets out in non-technical language the provisions of the income tax law as it affects primary producers.

28

Group Instalment Deduction Procedure— 1975— 12 pages. A booklet con­ taining instructions to employers on the procedure to be followed in making instalment deductions from employees’ salaries or wages.

The third edition of the booklet Income Tax for the Mining Industry, which sets out in simple terms the main features of the income tax law in relation to prospecting and mining activities is being printed. The fifth edition of Taxation and the Overseas Investor is in the course of preparation.

Publications for which a charge is made are as follows:

Income Tax Order 1217— 84 pages. Price $1.50. This booklet contains a schedule of rates of depreciation with general rulings and explanatory notes and sections of the Income Tax Assessment Act relative to depreciation allowances.

Income Tax Ready Reckoner—Financial year 1974-75— 135 pages. Price $2.95. This ready reckoner sets out the rates of tax payable by companies and individuals for the 1974-75 financial year and, for individuals, the amounts of tax payable and the average rates of tax on taxable incomes up to $20,000. It also contains information on concessional deductions (including housing loan interest), property

income surcharge, rebate for low income families, the averaging of taxable incomes of primary producers, the special age rebate and examples of the application of the rates of tax.

Estate Duty and Gift Duty. Ready Reckoner— 1973— 183 pages. Price $2.25. This book of tables shows statutory exemptions and rates of estate duty and gift duty. It also contains an outline of the provisions of the law relating to the statutory exemptions.

Commonwealth Sales Tax— 1970— 552 pages. Price $7.00. This book contains explanations and comments on Australian sales tax law and practice together with reprints of the Acts and Regulations com­ prising the sales tax legislation as at 31 July 1970.

Sales Tax Exemptions and Classifications—April 1971— 670 pages. Price $15.50. This is a loose leaf publication setting out the various items in the Schedules to the Sales Tax (Exemptions and Classifications) Act and detailing official rulings on the classifications of goods under those items. The Schedules to the Sales Tax (Exemptions and Classifications) Act specify the classes of goods that are exempt from sales tax and

those that are taxable at the rates of tax applicable to the relevant Schedules. The publication is kept up to date by the periodical issue of replacement pages incorporating amendments and new rulings.

29

S T A T U T O R Y T A X A T I O N B O A R D S

Statutory taxation boards operating under various taxation laws include Boards of Review, Valuation Boards and a Board of Relief. In addition, a Tax Agents’ Board operates in each State.

Boards of Review FUNCTIONS AND PERSONNEL

The taxation laws administered by the Commissioner of Taxation with the exception of stevedoring industry charge, tobacco charge and canning-fruit charge contain provisions enabling a taxpayer within a prescribed time to object against an assessment made by the Commissioner.

With regard to estate duty and gift duty, a taxpayer who is dissatisfied with the decision of the Commissioner on any such objection may request the Commissioner, within a prescribed time, to refer the decision to a Board of Review or to treat the objection as an appeal and forward it either to the High Court of Australia or the Supreme Court of a State. In the case of income tax, the choice of original jurisdiction, in respect of objections lodged since 18 June

1973, is between the Taxation Board of Review and the Supreme Court of a State. However there is a further provision for appeal to the High Court from Supreme Court decisions on income tax matters.

In the case of exchange control certificates and territories pay-roll tax, the person dissatisfied may have the decision referred to a Board of Review but there is a right of further appeal to the High Court. The laws dealing with pay-roll tax and export incentive grants also provide that certain matters in connection with the allowance of rebates and grants to exporters may be referred to a Taxation Board of Review without first being the subject of a decision by the

Commissioner.

In the case of sales tax, objections and requests for reference to a Boar.! of Review are restricted to disputes in respect of the sale value of the goods adopted by the Commissioner in the assessment. Other matters may be litigated in the Court. As regards wool tax, objections and appeals may be made against the Commissioner’s assessments, but there is no provision in the wool tax legis­ lation for objections against the appraised values of the wool, which are

determined by the Wool Board.

The Taxation Administration Act provides that an applicant may. within a prescribed time object against the decision of the Commissioner to refuse to issue a tax clearance certificate in relation to applications for exchange control approval of certain transactions. An applicant who is dissatisfied with the decision of the Commissioner on any such objection may request the Commissioner to refer the

matter to a Board of Review. An appeal may be made to the High Court of Australia from a decision of the Board involving a question of law.

In respect of Australian Capital Territory taxes, there is a right to reference to a Board of Review with a right of further appeal to the Supreme Court of the Australian Capital Territory.

30

Three Boards of Review have been constituted. Each consists of a chairman and two other members, who are appointed by the Governor-General. The Chairman is usually chosen from the senior officers of the Australian Taxation Office, while one of the other members is usually chosen from the legal profession and the other from the ranks of practising public accountants. Each

term of office is limited to seven years, but members are eligible for

re-appointment.

The Boards conduct sittings in each capital city and at other centres as required. Hearings are in camera, unless the taxpayer requests a public hearing.

Although technically the Boards are administrative bodies, witnesses are placed on oath, examined and cross-examined, and representatives of the taxpayer and the Commissioner may address a Board.

The parties to hearings before a Board of Review may appear personally or be represented by other persons. In practice, counsel, public accountants and tax agents frequently conduct cases for taxpayers. The Commissioner is usually represented by his officers, but in some cases counsel are engaged. Generally, the

reviewing processes of the Board are simple and involve the taxpayer in little expense. There is no provision for the awarding of costs to the successful party in a review before a Board.

Where a Board’s decision on an income tax matter involves only a question of fact, its decision is final but an appeal by either party may be made to the Supreme Court of a State against the Board’s decision involving a question of law. In respect of pay-roll tax, estate duty, gift duty and exchange control certifi­ cates, an appeal against a Board decision which involves a question of law may be taken to the High Court.

Membership of the Boards as at June 1975 was as follows.

Board No. 1 (Sydney) — Mr J. L. Burke, Chairman Mr C. F. Fairleigh, Q.C. Mr R. E. O’Neill Board No. 2 (Melbourne)—

Mr A. M. Donovan, Chairman Mr R. K. Todd Mr G. R. Thompson Board No. 3 (Brisbane) —

Mr F. E. Dubout, Chairman Mr G. Thompson M r N. Dempsey

REFERENCES TO BOARDS OF REVIEW The following tables show the action taken during the year ended 30 June 1975 on cases received for reference to Boards of Review. They include applications in respect of rebates of tax under Division 2 of Part III of the Pay-roll Tax Assess­

ment Act 1941-1969 for review of base period export sales.

31

CASES FOR REFERENCE TO BOARDS OF REVIEW—ALL TAXES ACTION TAKEN IN TAXATION OFFICES Year Ended 30 June 1975

N u m b e r o f c a s e s

H ead Office S outh W ales V ictoria Queens- South

A ustralia W estern A u stralia T asm ania T otal

N o t transm itted to B oards— ( a ) w ithdraw n by taxpayer . 17 506 354 91 124 255 27 1,374

( b ) allow ed by C om m issioner

o r settled . . . 104 1,170 979 145 261 254 62 2,975

T ransm itted to B oard during year A w aiting transm ission a t 3 0 .6 .7 5 327 88 2,164 1,489 355 267 729 68

327

5,160

N o te : Cases shown as ‘awaiting transmission’ comprise— (a) cases deferred at taxpayer’s request . . . . . . . . . 23

(b ) cases deferred pending decisions in other cases . . . . . . . 1,181

(c) cases deferred pending outcome of correspondence or inquiries . . . . 784

(d ) cases in course of preparation for transmission to Head Office or Boards . . 3,172

5,160

ALL TAXES—ACTION TAKEN AT BOARDS O F REVIEW Year ended 30 June 1975

Number

References outstanding at 1 July 1974 . . . . . . 553

References transmitted during year . . . . . . 327

880

Wholly allowed . . . . . . . . . . 56

Partly allowed . . . . . . . . . . 58

Wholly disallowed . . . . . . . . . 166

Pay-roll tax— Sections 16k, 16q and 16r and 21 — Base period export sales reduced . . . . . . 18

Base period export sales not reduced . . . . .

Withdrawn prior to listing . . . . . . . . 48

Allowed by department prior to listing . . . . . . 25

Settled prior to listing . . . . . . . . . 19

Heard—Awaiting decision . . . . . . . . 32

Part heard or hearing adjourned . . . . . . . 26

Awaiting hearing . . . . . . . . . 432

880

Valuation Boards

The principal function of the Valuation Boards is to determine appeals lodged against valuations made for purposes of assessments under the Estate Duty and Gift Duty Assessment Acts.

There are twelve Valuation Boards operating throughout Australia.

Each Board consists of a full-time chairman, Mr J. P. Lloyd, and two part­ time members.

The Chairman has additional functions associated with applications by tax­ payers for total or partial release from their income tax or pay-roll tax liabilities. Briefly stated, his responsibility in this area is to submit reports to the Board of Relief {see below) upon the facts as determined by examinations of taxpayers whose applications for release have been referred to him by that Board.

32

Boards of Relief

Income Tax and Pay-roll Tax

The relief provisions of the income tax and pay-roll tax legislation provide for a Board to consider applications by taxpayers for release from liability to pay tax in cases where the applicant claims that payment of the tax would entail serious hardship.

Where the amount of income tax does not exceed $200, applications for relief may be determined by the Commissioner.

The present Board comprises:

Chairman— Mr A. W. Walsh, Assistant Commissioner, Operations Branch, Aus­ tralian Taxation Office, Canberra, substitute for the Commissioner of Taxation.

Members— Mr A. McG. Finch, Chief Finance Officer, Department of the Treasury, Canberra, substitute for the Secretary to the Treasury. Mr W. Thomson, Director, Department of Police and Customs,

Canberra, substitute for the Secretary, Department of Police and Customs.

Estate Duty

In 1974 amendments to the Estate Duty Assessment Act provided for the establishment of a Board to consider applications by administrators for release from liability to pay estate duty where the exaction of the full amount of duty would entail serious hardship to a beneficiary. Relief is conditional on the Board being satisfied that the benefit will accrue to the beneficiary.

The present Board comprises:

Chairman— Mr Η. H. Whalan, Senior Assistant Commissioner, Australian Taxation Office, Canberra, substitute for the Commissioner of Taxation.

M embers— Mr A. McG. Finch, Chief Finance Officer, Department of the Treasury, Canberra, substitute for the Secretary to the Treasury. Mr C. F. Vassarotti, Director, Department of Police and Customs,

Canberra, substitute for the Secretary, Department of Police and Customs.

Relief Granted The following table sets out the amount of tax forgone as a result of relief having been granted by the Board and by Deputy Commissioners under powers delegated by the Commissioner. These figures are not included in the amount of tax written off under section 70c of the Audit Act as shown in the table on page 27. No relief from Estate Duty had been granted at 30 June 1975.

33

RELIEF GRANTED Years ended 30 June 1971 to 30 June 1975

Year

Income tax Pay-roll tax

Num ber o f cases

Total amount of relief

Number of cases

Total amount of relief

$ $

1970-71 . . . . 421 384,321 3 19,784

1971-72 . . . . 391 326,152 1 95

1972-73 . . . . 477 499,506 2 3,459

1973-74 . . . . 433 509,662 1 475

1974-75 . . . . 408 592,821 1 3,500

Tax Agents’ Boards

NUMBERS OF TAX AGENTS REGISTERED

Under the Income Tax Assessment Act all agents who charge fees for the prepara­ tion of income tax returns or transacting income tax business on behalf of tax­ payers must register with one of the Australian Tax Agents’ Boards, which have been set up in each of the States.

The following table shows the number of registrations in force at 31 March 1974 and 31 March 1975.

NUMBERS OF REGISTERED TAX AGENTS At 31 March 1974 and 1975

Number of registered tax agents

State Individuals Partnerships Companies Total

1974 1975 1974 1975 1974 1975 1974 1975

New South Wales and Aus­ tralian Capital Territory 7,715 7,968 845 841 48 50 8,608 8,859

Victoria . . . . 5,733 5.954 468 475 43 50 6,244 6,479

Queensland . . . 1,615 1,673 225 233 16 15 1,856 1,921

South Australia and N orth­ ern Territory . . 913 948 158 159 11 14 1,082 1,121

Western Australia . . 1,173 1,267 148 146 10 9 1,331 1,422

Tasmania . . . 236 231 63 61 3 3 3C2 295

Total . . . 17,385 18,041 1,907 1,915 131 141 19,423 20,097

The Tax Agents’ Board are empowered to grant exemption from registration for a period of twelve months in any case where the income derived as a tax agent during the preceding twelve months did not exceed $40. The exemption may, at the Board’s discretion, be renewed annually. There were three exemptions in force at 31 March 1975.

34

REGISTRATIONS CANCELLED A Tax Agents’ Board may cancel the registration of a tax agent on grounds that are specified in the Act. The nature of these grounds and the number of cases in which registration as a tax agent was cancelled during the twelve-month periods ended 31 March 1974 and 1975 are as follows:

CANCELLATION OF REGISTRATION OF TAX AGENTS Years ended 31 March 1974 and 1975

Number of registrations cancelled

Grounds for cancellation Years ended 31 March

1974 1975

(a ) Neglect, misconduct, preparation of a false return or lack of fitness to remain registered as a tax agent . 5 4

(b ) Failure to furnish the prescribed annual notification of desire to continue to be registered as a tax agent . 256 313

(c) Death, bankruptcy, liquidation of a company or permanently ceasing to carry on business as a tax agent 515 538

T o t a l ........................................................................ 776 855

Any person whose registration as a tax agent is cancelled by a Tax Agents’ Board has a right to appeal to a Court within a prescribed time. There were no such appeals lodged during the years ended 31 March 1974 and 31 March 1975.

Prosecutions for breaches of the provisions relating to tax agents are included in Schedule A5 of ‘Breaches and Evasions of the Acts’.

35

APPEALS TO THE COURTS

In the course of a typical year, more than seven million income tax returns have to be examined, and decisions also have to be made regarding the liabilities of many hundreds of thousands of taxpayers who lodge sales tax, estate duty, gift duty etc. returns. Such a process inevitably involves decision-making on a very large scale in areas of considerable controversy. Taxpayers who are dissatisfied with their assessments have the right to lodge objections and, in the event of their objections being disallowed by the Commissioner, to have the matters in dispute determined by courts or boards of review.

Each year the process brings forth more than 50,000 objections which have to be reviewed within the Taxation Office. Emphasis is placed on informal negotiation and consultation with taxpayers and their accountants and lawyers and, in the final outcome, all but a minute proportion of the disputes are resolved to the mutual satisfaction of the taxpayer and the Taxation Office without the need for litigation. Of the remainder, about three hundred cases are dealt with each year by the three Taxation Boards of Review and less than forty cases eventually come before the courts.

During the year under review, thirteen taxation appeals were decided by the High Court and twenty-one by the Supreme Courts of the States. Details of some of the more significant cases are set out below. As in previous years, the major cases were largely concerned with issues relating to legal avoidance of tax, with disputes as to whether dealings in property gave rise to taxable profits and with the complex issues which inevitably arise in applying the provisions of the income tax law to the unique circumstances which are created from time to time when major developmental projects are carried out in the mining industry.

Perhaps the most important case decided during the year was Malone v. C. of T., which was concerned with a financial transaction of a kind which has come to be known as dividend stripping.

It is the general intention of the income tax law that the profits derived by a company should bear tax in the hands of shareholders when the profits are distributed either as dividends or as a part of a general return of capital. In the operation known as dividend stripping, the owner of a company who wishes to extract his funds without bearing tax on the accumulated profits or who is faced with the need to pay substantial dividends to avoid undistributed profits tax

seeks to escape this dilemma by transferring his business activities to another company and selling the old company to a sharetrading company. The sharetrader arranges for the newly acquired company to distribute its accumulated profits as dividends and then sells the empty corporate shell of the stripped company for a price which is below the acquisition price by approximately the amount of the dividend.

The end result is that the vendors of the stripped company have obtained the cash equivalent of their interest in their company, but in a form that is

36

claimed to be free of tax as a receipt of a capital nature. The dividend stripper more or less breaks even, because the loss on the sale of the stripped shares offsets the dividends received from the stripped company, but the price paid for

the company to be stripped is adjusted to allow the dividend stripper a profit sufficient to make his participation worthwhile. (Until the introduction of section 46a in 1972 the attraction to a company carrying out dividend stripping was that the dividend received was fully rebateable while the loss was deductible against other income.)

While it must be conceded that any taxpayer has the right to sell his business as a going concern, and that the receipts from such a sale will not normally be subject to income tax, dividend stripping transactions have elements of arti­ ficiality which bring them within the possible application of section 260 of the Income Tax Assessment Act, a general provision against tax avoidance which

declares that any contract, agreement or arrangement having the purpose or effect of avoiding tax shall be absolutely void as against the Commissioner of Taxation.

In Malone’s case, the taxpayers sold all the shares in a private company which had accumulated substantial profits in previous years.

The procedure proposed by the purchaser (which specialized in such trans­ actions) was for the taxpayers to hand to the purchaser a bank cheque in favour of the company representing the company’s net worth ($363,794) and to take in return a cheque for the agreed purchase price ($360,156, being net worth less

1 per cent). Both cheques were obtained by means of overdraft.

Having opened an account in the company’s name prior to the settlement, the purchaser deposited the cheque for $363,794 in that account and withdrew it on loan to itself. The next day the purchaser caused the company to declare to it a dividend of $363,750 and then repaid the loan.

In the Commissioner’s view this was a situation to which section 260 applied — it was an arrangement in which the taxpayers sought to obtain, in the form of capital, amounts which would otherwise be dividends. The taxpayers claimed that in substance this was an ordinary sale of all the shares in a proprietary

company.

Telling J. upheld the taxpayers’ appeals, being satisfied that the taxpayers had discharged the burden of establishing that there was no arrangement sufficient to attract the application of section 260. In his Honour’s opinion the taxpayers’ participation in the transaction ceased on the day of settlement. They were unaware that the purchaser had in effect used their money to finance the trans­ action or of what the purchaser intended to do with the company.

The case was distinguished from Bell v. F.C. of T. (1953) 87 C.L.R. 548 and Ellers v. F.C. of T. (1972) 128 C.L.R. 602 on the basis that in those cases the taxpayers had control of the whole transaction; here it was a transaction at arm’s

37

length in which the taxpayers did not have control. The Commissioner sought leave to appeal to the High Court against this decision, but leave to appeal was refused by the Full Court.

Another case concerned with the consequences of dividend-stripping in relation to the sharetrading company which carries out the stripping operations is Patcorp Investments Limited (formerly called Patrick Corporation Ltd) and Others v. C. of T. The appeal of both parties to the Full High Court was heard

after the end of the year and judgment has not yet been given.

Over the years, there have been a number of taxation appeals relating to arrangements designed to enable family companies to be classified as public companies for income tax purposes, notwithstanding the obvious intention of the legislature that they should be categorized as private companies. Successive

amendments of the law designed to stamp out these practices have been followed by the emergence of newer, and usually more complex, schemes to circumvent the intentions of the legislature.

Such a scheme came before the Full Court of the High Court in Luceria Investments Pty Ltd v. F.C.T., in which a company unsuccessfully sought to persuade the High Court to reverse a ruling of the Supreme Court of Victoria that its scheme had failed.

The present provisions relating to the assessment of companies generally require that a company should be listed on a stock exchange as the primary qualification for assessment as a public company for income tax purposes. There are many classes of company which obviously cannot qualify for such listing but which are not comparable to family companies, and the law accordingly provides for a number of exceptions to the general requirement of stock exchange listing. In particular, there is a provision designed to cover the various forms of non-profit associations which are treated as companies for income tax purposes

(social and sporting clubs etc.). This provision grants public company status for a company not carried on for the purpose of profit or gain to its individual members and which is prohibited by its constituent document from making distributions to its members.

The taxpayer involved in the Luceria case was not an association of the kind that the exception was designed to cover. It was in fact a company clearly intended to carry on the business activities of a family group for the benefit of the family although no member of the family was a shareholder. The registered shareholders were two private companies controlled by the group’s solicitors. The company’s memorandum and articles formally stated that the company was not carried on

for the purposes of profit or gain to its individual members and that it was at all times prohibited from making any distribution to its shareholders. On this basis it was claimed that the company had fulfilled the conditions necessary to bring it within the terms of the exception and accordingly it was a public company.

The Full Court ruled that the Supreme Court of Victoria had rightly rejected this contention. This conclusion was supported on the ground that, although the persons in control of the company were not able to share in the proceeds of

38

the company except in the capacity as trustees, this situation should be cate­ gorized, within the meaning of the particular provision, as being one in which the company has carried on for the benefit of its members.

Another continuing source of contention under the income tax laws has centred around the ingenious attempts of tax planners to find ways of selling moribund companies for their tax losses, notwithstanding a series of amendments to the law designed to prevent these operations. The provisions directed against trading in tax loss companies are to be found in sections 80a to 80e of the Assessment Act. The primary requirement, set out in section 80a, is that no

deduction shall be allowed to a company for losses incurred in previous years unless, at all times during the year of income, not less than 40 per cent of the voting power, dividend rights and capital rights were held by persons who held those rights during the year of loss. Section 80c made supplementary provision

for cases in which companies were owned by other companies, to ensure that the intentions of section 80a could not be defeated by leaving the shareholdings in the taxpayer company unchanged by selling the shares in the holding company to some person who wished to acquire the empty shell of the taxpayer company for its accumulated losses.

In Kolotex Hosiery (Australia) Pty Ltd v. C. of T. the Full High Court dismissed the taxpayer’s appeal against the decision of Mason J. (discussed in last year’s report). The taxpayer had claimed a deduction from its 1967 income of some $500,000 in respect of losses accumulated over the preceding seven

years.

The shares in the company were at all times held preponderantly by another company or companies. In all or parts of the first three loss years such companies were ‘holding companies’ within the meaning of that term in section 80c. On 7 February 1962, a governing director was given the majority voting power

in the taxpayer in respect of ordinary resolutions and 75 per cent in respect of extraordinary resolutions together with power to exercise all the taxpayer’s powers.

The officer who exercised the Commissioner’s functions in this case had died before the matter came before the courts but it was shown that he had arrived at his decision by placing a construction on the law which the court held to be incorrect. However, the Commissioner sought to counter this argu­

ment by contending that there were other grounds on which the deceased officer would have been bound in law to disallow the deduction claimed for losses and that his ruling, although reached on unacceptable grounds, was nevertheless correct and should not be disturbed.

The Full Court held that, because of the existence of the governing director with far-reaching powers over voting at the company’s meetings, there was no person who held the required 40 per cent of voting, dividend and capital rights during the year of loss and the year of income, and the losses claimed could not

therefore be deductible.

The case establishes the principle, of some considerable importance in practical tax administration, that even where the Commissioner can be shown to have

39

erred in law in the manner in which he has applied a provision turning on his discretion, this does not automatically mean that the assessment must be set aside as invalid or referred back to the Commissioner for further consideration.

If the acual decision which the Commissioner reached was the only one which he could lawfully have reached if he had interpreted the law in the manner subsequently ruled to be correct, then the assessment is correct and will be upheld, it being immaterial that the correct decision was reached by an incorrect process of reasoning.

Having reached its conclusion in this manner in the Kolotex case, the Full Court did not find it necessary to consider whether there was, in the transactions before it, any contract, agreement or arrangement of a kind that the Commissioner was empowered to disregard pursuant to section 80b (5 ). This vital issue, which will have a very significant bearing on the Commissioner’s powers to discourage trading in tax loss companies, is likely to be raised in another appeal, from the Supreme Court of New South Wales, in K. Porter and Co. Pty Ltd v. C. of T., which is still awaiting hearing by the High Court.

A variation of the ‘loss company’ is the company pregnant with potential losses in the form of bad debts not yet written off. The complexities that can arise in such a case were illustrated in A.G.C. (Advances) Ltd v. C. of T.

The taxpayer had carried on business as money lender and hire purchase financier. In December 1968, it suspended its general operations following the appointment of an inspector under the Companies Act. At that stage, its book assets included debts the greater part of which were uncollectable. On 13 March 1969 a scheme of arrangement covering the taxpayer and other companies in the group was approved by the court. In December 1969, another finance company agreed to buy the shareholding of the taxpayer, whose only remaining assets would then comprise its uncollected debts. Any debts collected were to be received by the scheme manager in trust for creditors. The purchaser agreed to pay 22i cents for each dollar of bad debts subsequently allowed as an income

tax deduction. On 17 April 1970 the taxpayer resumed business under the new management as money lender and financier. In the years ended 30 June 1970 and 30 June 1971 it wrote off bad debts in excess of $1.3 million. These included some $370,000 representing cost of goods purchased before 1968 for hire pur­

chase transactions. Amounts charged to customers in excess of the cost of goods had been included as income but that part of the instalments representing cost of goods had not been brought to account as income.

On a case stated to the Full High Court, it was held, distinguishing the scheme of arrangement in Crane Sales Pty Ltd v. F.C. of T that the taxpayer had remained the beneficial owner of those book debts which were written off (but apparently not of any debts which were collected) and that—

(1) money lending debts and debts for hiring charges written off were deductible under section 63; and

40

(2) (by majority) debts representing the cost of hire purchase goods were deductible under section 51 as losses incurred in the year of writing off.

The majority also considered that any cessation of the business was intended to be temporary, not permanent, so that on the facts the business which was carried on after the break caused by financial embarrassment was the same business as before. Accordingly debts originating before the break could be

deducted after the break within the terms of section 51.

K.W .A. Bridges and Others v. C. of T., heard in the Supreme Court of N.S.W., dealt with eleven appeals involving ten taxpayers who were partners in a stockbroking firm or family companies controlled by partners.

There were three major issues. The first was whether four of the taxpayers were assessable on profits from the sale of shares in a mining company. On the evidence, Sheppard J. was not convinced that three of the four had not acquired their shares for resale at a profit and upheld the Commissioner’s decision in their cases, but accepted that one taxpayer had acquired his shares for investment purposes.

The other questions concerned deductions under section 77a of the Income Tax Assessment Act 1936-1968 under which deductions were allowed for capital contributions made by shareholders to companies engaged in mining for petroleum. A group of investors associated with such a company had untransferrable options to take up shares in the company. They entered into an elaborate arrangement, involving trusts and options, under which they would be registered as the share­ holders but three of -the taxpayers on the appeal would claim to be the persons entitled to the deductions for capital contributions to the company.

The Commissioner argued that— (a) the payments were not payments by the taxpayers;

(b) the taxpayers were not the beneficial owners;

(c) the transactions were shams;

(d ) the transactions were void by the operation of section 260.

Sheppard J. held that, if the transactions were not shams, then section 260 operated to void the arrangement and deny the deductions.

His Honour reached a similar conclusion in relation to a variant of the scheme under which the taxpayers purported to buy shares through a nominee company, pay a call on the shares and then re-sell them. The Articles of the exploration company provided that calls could be made on members in respect of any money

unpaid on shares and contemplated the making of calls by resolution of the directors. Neither the nominee company or the taxpayers had at the time been registered as members and there was a lack of evidence as to any resolution of the directors. In these circumstances, his Honour held that the claims failed

41

also because the payments were not made in respect of the shares in the company by the owners of the shares and it was not established that a valid call had been made.

In A. L. Hamblin Equipment Pty Ltd v. C. of T. and A. L. Hamblin Con­ structions Pty Ltd v. C. of T., the Full High Court substantially upheld the tax­ payers’ appeals against the decision mentioned in last year’s report.

The taxpayers were plant owners and earthmoving sub-contractors using equipment held either on hire purchase or on lease with an understanding that the lessee should have an option to purchase for the residual value assumed when the lease was negotiated. Needing the use of six new or different items for particular projects, the taxpayers, after ascertaining that the trade-in values for

some of their existing units of plant were greater than they would have to pay to acquire ownership of these units, acquired one item held under hire purchase and four under lease including a Le Tourneau Scraper. The leased items, with the exception of the Le Tourneau, were traded-in at the higher figures. The hired plant and the Le Tourneau were sold instead of traded-in, as other machines had been made available by the head contractor. The head contractor also acquired a sixth machine for lease to one of the taxpayers, in consequence of which the machinery supplier made a payment of $5000 to the taxpayers. At first instance, Stephen J. had held that the difference between the trade-in or sale

figure and the pay-out figure of each item acquired was a profit assessable under section 26 (a) and that the amount of $5000 was assessable under section 25 of the Income Tax Assessment Act.

The Full Court reversed this decision so far as it concerned the hire purchase plant and the three items of leased plant traded-in. The decision on the hire purchase plant was unanimous but based on differing reasons— that it was not acquired for the purpose of profit-making and that there was a lack of identity

between the property acquired and the property sold. The decision in respect of plant traded-in was by majority, all of whom adopted the view that, when the taxpayers acquired these items from the lessors, the purpose of each acquisi­

tion was not profit-making by sale but to obtain a reduction in the effective price of new plant. With regard to the leased Le Tourneau Scraper, a majority of the court held that there was a profit assessable under section 26 (a) and the decision of Stephen J. on this point was maintained. The court also upheld

(unanimously) the finding that the amount of $5000 was income of the business.

In discussing assessability under the first limb of section 26 (a), the court drew attention to the necessity for some identity between property acquired and property sold and reference was made to the remarks of Windeyer J.

The case illustrates the fine, and somewhat tenuous, distinctions that must now be made in determining whether profits made in the course of business-like operations are subject to tax. Section 26 (a) is the successor to a provision which was inserted in the income tax lav/ in 1930 to overcome what was thought to be the effect of a decision of the House of Lords in Leaning v. Jones, that profits from isolated sales of a business nature would not be subject to tax. The provision

42

set out to fill this apparent gap in the law by declaring that a taxpayer’s assessable income should include any profit arising from the sale of property acquired for the purpose of profit-making by sale, or from the carrying on, or carrying out, of any profit-making undertaking or scheme.

The Full Court proceeded in the light of a decision of the Privy Council in McClelland v. C. of T., which had established that, in relation to the first limb of section 26 (a ), there must be an exact equivalence between what was bought and what was re-sold at a profit; for the purposes of the second limb, a transaction would be categorized as a profit-making undertaking or scheme, within the

meaning of section 26 (a), if it was ‘a business deal’.

The application of these principles defeated the Commissioner’s claim to tax in respect of the hire purchase plant. What the taxpayers had acquired was the hirer’s interest in the plant, and what they had sold had been the plant itself.

Two cases decided this year involved the question whether the par value of bonus shares should be taken into account in determining the profit on their sale.

The first was London Australia Investment Co. Ltd v C. of T. in the Supreme Court of N.S.W.

The taxpayer, an investment company, appealed against the inclusion of profits on the sale of securities, including bonus shares, in its assessable income. The appellant contended that the securities were merely realized in the course of re-arranging its investment portfolio. Alternatively, if the profits were assessable, a deduction should have been allowed for the face value of the bonus shares sold.

Helsham J. found that the taxpayer regularly and systematically bought and sold shares and used any profits in its business. The profits were assessable under section 25 (1) as income of the taxpayer’s business.

His Honour would not allow the face value of the bonus shares to be deducted from their sale price to determine the profit on the basis that, as the shares had in fact cost nothing, there was no loss or outgoing within the meaning of section 51 (1 ). The taxpayer has appealed to the High Court against both parts of this decision.

The other case dealing with bonus shares was Curran v. C. of T., a case stated for the Full High Court. The taxpayer, a stockbroker, purchased 200 of the 215 shares in a private company which had accumulated capital profits of $206,242. The cost of the 200 shares was S I86.046. Eight days later the company made a bonus issue of 205,325 fully paid SI shares, allotting 191,000 to the appellant. On the same day the taxpayer sold the 200 shares for SI97

and the bonus shares for $188,632. For a total outlay of 5186,048, the taxpayer thus gained a return of $188,829, making a small profit.

In his sharetrading account the taxpayer treated the bonus shares as having cost him $191,000 in addition to the original outlay of 5186,048; the bonus shares allotted were not brought to account as a trading receipt and, if dividends,

43

were exempt under section 44 (2) (b) (iii) with the result that the entire trans­ action showed a loss of $188,217, which could be set off against the taxpayer’s income from other sources. The Commissioner contended that, as the bonus shares had cost nothing, there was no loss to deduct.

In a majority decision for the taxpayer, Barwick C. J. and Menzies J. held that the taxpayer was entitled to treat the sum of $191,000 as the cost of acquiring the bonus shares because the strict legal effect of the transaction was that the taxpayer had made a payment out of a credit created in his favour by the declaration of a dividend, which the legislature had declared to be exempt from income tax. Gibbs J. concluded that the face value of the bonus shares should be taken into account because the taxpayer’s trading account would not reflect his true income if it brought in at no value shares which were in fact valuable. In his Honour’s view, if the taxpayer’s income were to include the face value of the bonus shares, it would lead indirectly to the taxation of a ‘dividend’ which section 44 (2) (b) (iii) declared to be not assessable.

Stephen J. (dissenting) considered that, on the authorities, the issue of bonus shares did not involve the receipt and use of income but was a distribution of capital; that the effect of the transaction was to transfer almost all of the value of the original shares to the bonus shares; and that, because the cost of

the 200 shares was also the cost of the whole 191,200 shares and all were sold on the same day, it should suffice to show the 191,200 shares as having no cost attributed to them.

The effect of this decision was to expose an accident of drafting which would have left a major anomaly in the income tax law, under which a taxpayer who bought shares for the purpose of profit-making by sale would be able to escape tax on the true profits from his operation or generate an artificial loss, if, before re-selling the shares, he could prevail on the company to make a bonus share distribution (something that would not be difficult in any case in which the shareholding was sufficiently great to enable the taxpayer to dominate the com­ pany). The Government has announced that the law will be amended to eliminate this anomaly.

In R.A.C.V. Insurance Limited v. C. of T., the Supreme Court of Victoria held that, where a company was engaged in the business of issuing compulsory third party insurance policies, on the proper construction of the legislation governing those policies the liability to compensate a policy holder arose at

the time when an accident occurred, and that the taxpayer was therefore entitled to take into account, in arriving at taxable income for each year, estimates of the losses incurred up to the end of that year.

The case is of considerable importance in showing that the principle, thought to have been established many years ago in Flood’s Case that no deduction may be claimed for provisions for future losses or outgoings, must be applied with care and caution in circumstances which differ from those which involved in the Flood Case. It is now established that if an insurance loss is incurred in the

44

sense of being immediately payable in the current year even though it may take time, and possibly litigation, to establish the amount of the loss the amount of the loss can be estimated and a deduction allowed accordingly.

The Commissioner lodged a formal appeal to the High Court against the decision while its implications were being studied but this appeal was subsequently allowed by consent after the conclusion was reached that the Supreme Court decision was correct and should not be further challenged.

In G. J. Coles & Coy Ltd v. C. of T. the company successfully appealed to the Full High Court against a decision of the Supreme Court of Victoria (Menhennitt J.) in favour of the Commissioner.

Under a Crown lease assigned to it in 1961, the taxpayer was required to erect improvements on the land ‘to the value of not less than $150,000’. Buildings costing over $ l i million were ultimately erected during 1967 and 1968 and the company sought to deduct the proportionate part of this amount under section

88 (2) of the Income Tax Assessment Act which, of course, has had limited application since 1964.

The Commissioner contended that the deduction should be calculated by reference to the amount of $150,000 as expenditure in excess of this amount was not specified in the lease.

Menhennitt J. had held that the requirements of section 88 (2) were not satisfied with respect of expenditure in excess of $150,000, nor was there evidence that the lessor had given written consent to the improvements prior to 22 October 1964 as required by section 83aa (4) ( b).

The Full Court reversed this decision so far as it related to section 88 (2) (b). What section 88 (2) (h) prescribed was an identity between the improvements required to be made under the terms of the lease and the improvements actually made— i.e. their nature not their cost. In any event the requirement under the lease to erect buildings ‘to the value of not less than $150,000’ did not amount

to the specification of an amount as envisaged by the last sentence of section 88 ( 2 ) .

Another case concerning a very large amount claimed under section 88 (2) was Goldsworthy Mining Ltd v. C. of T. An appeal by the company against the decision of Mason J. in favour of the Commissioner was unsuccessful.

The company was involved with the extraction of iron ore at Mt Golds­ worthy and the subsequent delivery to and loading of ore carriers at Port Hedland. To enable ships of economic size to enter and leave Port Hedland, it was necessary for the company to deepen the approach channel and other parts of the harbour.

As a result of a decision of the High Court and amendments to the mining provisions of the income tax law effected in 1968, it had become established that deductions were not allowable under the mining provisions for harbour works established by mining companies remote from their extraction sites. The

taxpayer claimed that it was nevertheless entitled to deduct an amount in excess

45

of $11 million that was expended on dredging the bed of a public harbour under the provisions of section 88 covering expenditure incurred in connection with improvements to land used to produce assessable income, a lease of which had been granted to the taxpayer.

In support of its claim, the company was able to show that the Government of Western Australia had granted a lease of the seabed which was to be cut away in the dredging process, but there was no lease of the sea above the dredged area in which the ships would pass. It also emerged that, although the company had expended the money in question, it was not out of pocket in the long run

because the State Government had taken over the harbour area and re-imbursed the company for its outlays.

Mason I. had rejected the company’s claim on the ground that the seabed was not ‘used’ by the company for the purpose of producing assessable income. The Full Court affirmed this decision and dismissed the company’s appeal.

An appeal to the Supreme Court of Victoria, Utah Development Co. v. C. of T., involved provisions dealing with mining (Division 10) and with investment allowance for expenditure on manufacturing plant (section 62aa).

The taxpayer company incurred substantial capital expenditure on the con­ struction of three coal washing plants. These were large machinery complexes situated adjacent to open cut coal mines in remote areas of central Queensland. In the plants, coal direct from the pits underwent separation processes to remove impurities and produce a type of coal suitable for making coke for use in iron-ore blast furnaces.

The Commissioner had taken the view that the company was not entitled to the deductions claimed. In the Commissioner’s view, the washing of coal at a mining site was not a manufacturing operation and, in any event, the coal washing plant was used in mining operations, and so was specifically excluded from the investment allowance.

Newton J. found that the plant was used in operations by means of which manufactured goods (coking coal) were derived from other goods (coal direct from the pits)—thus entitling the company to deduct one-fifth of the cost of the plant under the investment allowance provisions.

His Honour rejected the Commissioner’s contention that the plant was used in mining and quarrying operations and thus specifically excluded from the investment allowance provisions by section 62aa (3 ) ( a ) — the function of the plant was to manufacture from coal already mined.

However, the taxpayer failed in its claim that payments made to lessees of land required by it for mining purposes were allowable capital expenditure under section 122a (1). Newton J. held that this was not expenditure ‘in carrying on mining operations on a mining property’. It was expenditure in acquiring a mining property or the right to use a property as a mining property.

46

The Commissioner has lodged an appeal to the High Court against the first part of the decision.

Robbins & Ors v. C. of T. concerned the valuation of debts due to an estate for the purposes of the Estate Duty Assessment Act.

Prior to his death, the deceased sold certain assets to his wife and children under agreements which provided for the payment of the consideration by small annual instalments interest free, subject to the right of the deceased to call for repayment of the balance outstanding by giving 30 days written notice under

his own hand.

The agreements described the deceased as ‘the vendor’ and defined that term to include ‘his executors, administrators and trustees’. The deceased did not issue any notice requiring repayment of the outstanding amounts.

The Commissioner included the full amount of the debts outstanding in the value of his estate.

The appellants, relying on the case of Bray v. C. of T. contended that the value of the debts should be reduced on the ground that the right to give notice requiring payment was available only to the deceased himself.

The High Court (Walsh J.) dismissed the appeal by the estate. The right to give notice requiring payment could have been and could be given by the deceased’s executors because in each agreement ‘the vendor’ included his executors. Both Bray’s case and Bone v. Commr of Stamp Duties, 2 NSWLR 651 (relied on by the Commissioner) were distinguished as not containing this

express direction.

An appeal by the estate against the decision of Walsh J. was dismissed by the Full High Court in a brief decision from the bench.

47

BREACHES AND EVASIONS OF THE ACTS

Breaches and evasions of the Income Tax Assessment Act are reported pursuant to section 14 of that Act which reads as follows:

‘14.— (1.) The Commissioner shall furnish to the Treasurer annually for presentation to the Parliament, a report on the working of this Act.

(2.) In the report the Commissioner shall draw attention to any breaches or evasions of this Act which have come under his notice.’

Similar provisions appear in the statutes relating to sales tax, pay-roll tax, estate duty, gift duty and the stevedoring industry charge.

Information relating to breaches and evasions of the various Acts for the period 1 July 1973 to 30 June 1974 is shown below.

Income Tax

IMPOSITION OF ADDITIONAL TAX

Schedule A 1—For failure to duly furnish returns or information—section 226 (1.), Income Tax Assessment Act. Maximum additional tax: an amount equal to the tax assessable to the taxpayer or $2, whichever is the greater.

Schedule A2—For omission of assessable income or inclusion of deductions in excess of expenditure actually incurred— section 226 (2.), Income Tax Assess­ ment Act. Maximum additional tax: an amount equal to twice the tax avoided or $2, whichever is the greater.

FAILURE TO FURNISH RETURNS ADDITIONAL TAX CHARGED UNDER SECTION 226 (1.)

Period: 1 July 1973 to 30 June 1974

Schedule A1

Office

Number of Additional tax taxpayers charged

New South Wales and Australian

s

Capital Territory . . 69,690 1,895,413.00

Victoria . . . . 32.953 710,346.29

Queensland . . . 16,812 341,261.67

South Australia . . . 7,257 149,178.50

Western Australia . . 9,795 355,240.39

Tasmania . . . . 2,483 58,042.23

Northern Territory . . 1,155 45,896.50

Total . . . 140,145 3,555,378.58

48

UNDERSTATEM ENT OF TAXABLE INCOME CASES W HERE ADDITIONAL TAX WAS CHARGED UNDER SECTION 226 (2.) Period: 1 July 1973 to 30 June 1974 Schedule A2

Office

Num ber of taxpayers

Under­ statement o f taxable income

Increase in ta x assessed

Additional tax

Section 226 (1.)

Section 226 (2.)

$ $ $ s

New South Wales and Australian Capital Ter-ritory . . . 11,980 12,170,258.00 5,200,525.22 (a) 1,304,169.00

Victoria . . . 3,090 10,126,993.00 4,393,376.55 3,347.96 1,623,103.83

Queensland . . . 10,440 3,602,451.00 1,230,139.72 393.00 321,820.82

South Australia . . 885 1,724,958.00 576,707.47 432.67 149,016.68

Western Australia . 4,946 4,775,464.22 2,169,538.95 7,948.87 487,083.20

Tasmania . . . 1,391 1,897,520.00 861,651.80 508.00 151,692.57

Northern Territory . 72 573,422.00 239,058.24 2,516.10 60,315.62

Australia . . 32,804 34,871,066.22 14,670,997.95 (a) 4,097,201.72

N o t e—Some o f the above taxpayers are reported by name in Schedule I of the appendix on page 145. The circumstances in which persons charged additional tax are reported by name are set out at the head of Schedule I. (a) N ot available.

PROSECUTIONS, ETC.

Schedule A 3—For failure to furnish returns—section 223, Income Tax Assessment Act.

Schedule A A—For making false returns or statements, for understating income or making mis-statements affecting the liability of any person to tax, for fraudulent avoidance of tax— sections 227, 230 and 231, Income Tax Assessment Act.

Schedule A 5— Other prosecutions for breaches of the Income Tax Assessment Act.

Schedule A 6—Legal proceedings to recover tax and additional tax.

PROSECUTIONS UNDER SECTION 223 FOR FAILURE TO FURNISH RETURNS Period: 1 July 1973 to 30 June 1974 Schedule A3

Office

Num ber of cases Penalties imposed

Costs awarded

s s

New South Wales . . . 7,273 310,533.00 29,092.00

Victoria . . . . . 12.048 297,818.00 33,350.00

Queensland . . . . 1,412 50,168.00 3.579.50

South Australia . . . . 1,569 58,409.00 6,276.00

Western Australia . . . 1.265 52,522.00 5,256.20

Tasmania . . . . . 1.208 23,900.00 2,727.80

N orthern Territory . . . 169 2.793.00 265.90

Australian Capital Territory . 105 5,379.00 915.10

Total . . . . 25,049 801,522.00 81,462.50

49

PROSECUTIONS UNDER SECTIONS 227, 230 AND 231 FOR LODGM ENT OF FALSE RETURNS Period: 1 July 1973 to 30 June 1974 Schedule A4

Office

Number of Penalties Costs

cases imposed awarded

$ $

New South Wales . . 221 21,059.00 884.00

Victoria . . . . 48 6,862.00 120.00

Queensland . . .

South Australia . . .

2 40.00 315.86

Western Australia . . 11 1,272.00 33.70

Tasmania . . . . 14 891.85 32.10

Northern Territory . .

Australian Capital Territory

2 300.00 22.00

Total . . . • 298 30,424.85 1,407.66

PROSECUTIONS OTHER THAN T H O SE RECORDED IN SCHEDULES A3 AND A4 Period: 1 July 1973 to 30 June 1974 Schedule AS

Number Offence Penalties Costs of cases imposed awarded

$ $

NEW SOUTH WALES

120 Failure to furnish information . . . . . . 4,300.00 480.00

1,079 Failure to comply with Court Order . . . . . 101,073.00 4,316.00

579 Failure to remit group tax deductions . . . . . 51,203.00 2,316.00

38 Failure by employer to purchase and affix tax stamps . . 2,717.00 152.00

38 Other offences 2,809.00 152.00

1,854 162,102.00 7,416.00

VICTORIA

60 Failure to furnish information . . . . . . 1,524.00 157.00

1,548 Failure to comply with Court Order . . . . . 56,840.00 3,536.00

776 Failure to remit group tax deductions . . . . . 68,440.00 1,544.00

232 Failure by employer to purchase and affix tax stamps . . 9,860.00 439.00

61 Other offences . . . . . . . . . 1,930.00 154.00

2,677 138,594.00 5,830.00

QUEENSLAND

17 Failure to furnish information . . . . . . 520.00 45.50

230 Failure to comply with Court Order . . . . . 18,510.00 400.50

79 Failure to remit group tax deductions . . . . . 6,645.00 164.50

17 Failure by employer to purchase and affix tax stamps . . 1,020.00 42.50

64 Other offences . . . . . . . . . 2,214.50 206.50

407 28,909.50 859.50

SOUTH AUSTRALIA

2 Failure to furnish information . . . . . . 215.00 8.00

239 Failure to comply with Court Order . . . . . 25,220.00 1,172.00

39 Failure to remit group tax deductions . . . . . 4,785.00 156.00

Failure by employer to purchase and affix tax stamps . . Other offences . . . . . . . . .

280 30,220.00 1,336.00

50

Sales Tax

IMPOSITION OF ADDITIONAL TAX Schedule B 1— For failure to furnish returns, for furnishing false returns or for understating the sale value of goods in returns— sections 25(2b), 34 and 46 of the Sales Tax Assessment Act (No. 1) and corresponding sections of the

Sales Tax Assessment Acts (Nos 2 to 9), and section 8, Sales Tax Procedure Act. Maximum additional tax: double the amount of the tax avoided or $2, which­ ever is the greater. IM PO SITIO N OF ADDITIONAL TAX

Period: 1 July 1973 to 30 June 1974 Schedule B1

Office

Num ber of cases Increase in tax payable

Additional tax charged

$ $

New South Wales and Australian Capital Territory . . . 141 400,858.90 65,856.05

Victoria . . . . . 326 821,541.36 155,481.00

Queensland . . . . 105281,064.81 17,887.95

South Australia . . . . 67 196,321.52 39,550.00

Western Australia . . . 829 513,350.00 31,647.00

Tasmania . . . . . 12 19,997.00 5,750.00

Northern Territory . . . 7 7,449.76 641.70

Total . . . . 1,487 2,240,493.35 316,813.70

N o t e—Some of the above taxpayers are reported by name in Schedule II of the appendix on page 172. The circumstances in which persons charged additional tax are reported by name are set out at the head of Schedule II.

PROSECUTIONS, ETC.

Schedule B2— All prosecutions for breaches of the Sales Tax Assessment Acts and the Sales Tax Procedure Act.

Schedule B 3—Legal proceedings to recover tax and additional tax. PROSECUTIONS FO R BREACHES OR EVASIONS OF THE SALES TAX ACTS Period: 1 July 1973 to 30 June 1974 Schedule B2

Number

Offence

Penalties Costs

o f cases imposed awarded

$ $

NEW SOUTH WALES (and Australian Capital Territory) 904 Failure to furnish returns or information . . . . 33,548.00 3,616.00

VICTORIA

1,419 Failure to furnish returns or information . . . . 32,873.00 3,630.00

QUEENSLAND

21 Failure to furnish returns or information . . . . 845.00 52.50

SOUTH AUSTRALIA

109 Failure to furnish returns or information . . . . 4,490.00 436.00

W ESTERN AUSTRALIA

169 Failure to furnish returns or information . . . . 5,832.00 503.00

1 Other offences . . . . . . . . . 250.00 2.30

170 6,082.00 505.30

52

PRO SECUTIONS FO R BREACHES OR EVASIONS OF THE SALES TAX ACTS Schedule B2— c o n tin u e d

Num ber of cases Offence

Penalties imposed

Costs awarded

52

TASMANIA

Failure to furnish returns or information . . . . 1

$

702.00

$

119.60

2

N O R TH ER N TERRITORY

Failure to furnish returns or information . . . . 1 80.00 4.00

2676

AUSTRALIA

Failure to furnish returns or information . . . . 1 78,370.00 8,361.10

1 Other offences . . . . . . . . . 250.00 2.30

2677

1 78,620.00 8,363.40

LEGAL PROCEEDINGS TO RECOVER SALES TAX(a) Period: 1 July 1973 to 30 June 1974 Schedule B3

Office

Num ber of cases Amount sued for

Costs incurred

$ $

New South Wales and Australian Capital Territory . . . 110 1,278,247.12 394.76

Victoria . . . . . 82 75,277.13 2,466.50

Queensland . . . . 11 45,498.25 13.05

South Australia . . . . 41 22,831.64 152.90

W estern Australia . . . 36 97,514.07 721.04

Tasmania . . . . . 10 131,375.82 61 .05

N orthern Territory . . . 2 1,190.21 4.00

Total . . . . 2921,651,934.24 3,813.30

Pay-roll Tax

IMPOSITION OF ADDITIONAL TAX Schedule C l—For failure to furnish returns or for failure to include in a return wages subject to pay-roll tax— sections 23 and 43 of the Pay-roll Tax Assessment Act. Maximum additional tax: double the amount of the tax avoided or $2, whichever is the greater.

IM PO SITIO N OF ADDITIONAL TAX Period: 1 July 1973 to 30 June 1974 Schedule Cl

Office

Number of cases Increase in tax payable

Additional tax charged

S S

New South Wales and Australian Capital Territory . . . 1 1,865.34 167.23

Victoria . . . . .

Queensland . . . . 12 4,016.85 1,003.83

South Australia . . . .

Western Australia . . . 6 1,839.00 203.00

Tasmania . . . . . 6 3,05.6.00 415.00

N orthern Territory . . .

Total . . . . 25 10,777.19 1,789.06

53

PROSECUTIONS, ETC.

Schedule C2— All prosecutions for breaches of the Pay-roll Tax Assessment Act.

Schedule C3— Legal proceedings to recover pay-roll tax and additional tax.

PROSECUTIONS FO R BREACHES OR EVASIONS OF THE PAY-ROLL TAX ASSESSMENT ACT Period: 1 July 1973 to 30 June 1974 Schedule C2

Number

Offence

Penalties Costs

of cases imposed awarded

$ $

NEW SOUTH WALES (and Australian Capital Territory)* 68 I Failure to furnish returns or information . . . . j 2,930.00 I 272.00

* N o cases w ere recorded fo r th e o ther offices.

LEGAL PROCEEDINGS TO RECOVER PAY-ROLL TAX(a) Period: 1 July 1973 to 30 June 1974 Schedule C3

Office

Number of cases Amount sued for

Costs incurred

$ $

New South Wales and Australian Capital Territory . . . 33 22,913.23 75.95

Victoria . . . . . 1 297.23 37.80

Queensland . . . .

South Australia . . . .

Western Australia . . . 13 7.946.51 120.48

Tasmania . . . . . 2 2,059.97 11.90

Northern Territory . . . 1 132.09 2.10

Total . . . . 50 33,349.03 248.23

( a ) Including additional tax.

54

Estate Duty

PRO SECUTIONS FO R BREACHES OR EVASIONS OF T H E ESTATE DUTY ASSESSMENT ACT Period: 1 July 1973 to 30 June 1974 Schedule D1

Number of cases Offence

Penalties imposed

Costs awarded

s s

NEW SOUTH WALES (and Australian Capital Territory)* 1 I Failure to furnish information . . . . . . j 4.00 j 4.00

* N o cases w ere recorded for th e o th e r offices.

LEGAL PROCEEDINGS TO RECOVER ESTATE DUTY(tz) Period: 1 July 1973 to 30 June 1974 Schedule D2

Office

Number of cases Amount Costs

sued for 1 incurred

New South Wales and Australian Capital Territory . . .

s s

Victoria . . . . .

Queensland . . . . .. I ..

South Australia . . . .

Western Australia . . . .. I t b )

Tasmania . . . . . 1 7,431.05 6.50

N orthern Territory . . . .. j . .

Total . . . . 1 7,431.05 i 6.50

( a ) In clu d in g additional duty. (b ) C osts o f $13.15 were incurred in respect o f proceedings o f an

earlier perio d .

Gift Duty

PROSECUTIONS FO R BREACHES OR EVASIONS OF THE GIFT DUTY ASSESSMENT ACT Schedule El For the period 1 July 1973 to 30 June 1974 there were no cases to be reported under this Schedule.

LEGAL PRO CEEDIN GS TO RECOVER GIFT DUTY(n) Period: 1 July 1973 to 30 June 1974 Schedule E2

O f f ic e

N u m b e r o f

c a s e s

A m o u n t

s u e d f o r

C o s t s i n c u r r e d

S

s

N e w S o u t h W a l e s a n d A u s t r a l i a n

C a p i t a l T e r r i t o r y . . . 4 1 .006 07 1 6 . 5 0

V i c t o r i a . . . . . 6 1 . 8 6 0 . 8 6 1 5 8 . 2 5

Q u e e n s l a n d . . . .

S o u t h A u s t r a l i a . . . .

W e s t e r n A u s t r a l i a . . . (b )

T a s m a n i a . . . . . 1 5 0 6 . 3 0 7 . 7 0

N o r t h e r n T e r r i t o r y . . .

T o t a l . . . . 11 3.373.23 1 8 2 . 4 5

( a ) Including additional duty. (b ) C osts o f S6.65 were incurred in respect o f proceedings o f

an earlier period.

55

Wool Tax

For the period 1 July 1973 to 30 June 1974 there were no cases to be reported under the following headings:

Prosecutions for Breaches or Evasion of Wool Tax (Administration) Act Legal Proceedings to Recover Wool Tax

Stevedoring Industry Charge

PROSECUTIONS FOR BREACHES OR EVASIONS OF THE STEVEDORING INDUSTRY CHARGE ASSESSMENT ACT

Period: 1 July 1973 to 30 June 1974

Schedule G1

Number of cases

O f f e n c e

Penalties imposed

Costs awarded

$ $

N O RTH ERN TERRITO RY

1 Failure to furnish returns . . . . . . . 30.00 1.50

Tobacco Charge

For the period 1 July 1973 to 30 June 1974 there were no cases to be reported under the following headings:

Prosecutions for Breaches or Evasions of the Tobacco Charges Assessment Act

Legal Proceedings to Recover Tobacco Charge

Canning-Fruit Charge

For the period 1 July 1973 to 30 June 1974 there were no cases to be reported under the following headings:

Prosecutions for Breaches or Evasions of the Canning-Fruit Charge (Administration) Act

Legal Proceedings to Recover Canning-Fruit Charge

56

TAXATION COM MITTEES

Taxation Review Committee The terms of reference of the Taxation Review Committee (chaired by the Honourable Mr Justice Asprey) and the names of its members were set out in the 52nd Report. Mr D. M. Bensusan-Butt resigned from the Commitee shortly

after the completion of its preliminary report on 1 June 1974.

The Preliminary Report was tabled with the Budget Papers by the then Treasurer on 17 September 1974. The Full Report of the Taxation Review Com­ mittee dated 31 January 1975 was tabled in Parliament by the Treasurer on 27 May 1975 and a volume containing a set of studies commissioned by the

Committee was published in August 1975.

Committee of Inquiry into Inflation and Taxation On 12 November 1974 the Prime Minister announced the Government’s decision to appoint a panel to report by May 1975 on questions relating to the effects of inflation on taxation paid by persons and companies. The terms of reference of the inquiry were as follows:

1. To examine the effects of rapid inflation on taxation paid by persons and in particular— (a) to examine methods which could be used to apply indexation to the personal income tax system:

(b) to assess their relative merits in terms of:

(i) effectiveness in providing an up-to-date adjustment for price increases.

(ii) practicability of implementation; (c) to recommend:

(i) the method considered most suitable, and (ii) the price index considered most suitable if the Government should wish to apply indexation to personal income tax.

2. To examine the effects of rapid inflation on taxation paid by companies and other enterprises and in particular— (a) to examine the various choices available to taxpayers under the provisions of the income tax law relating to the valuation of

trading stock and to assess the advantages and disadvantages of providing other bases of stock valuation for income tax purposes:

(b) to consider the advantages and disadvantages of alternative methods of providing allowance for income tax purposes for depreciation of plant and equipment, including allowance of deductions for depreciation calculated at flexible or accelerated

annual rates: ■

(c) to make recommendations in relation to these matters.

57

The Committee comprised:

Professor R. L. Mathews, Chairman Mr D. J. Block

Mr J. Canny, I.S.O.

Mr R. A. Jolly

The Report titled Inflation and Taxation was presented to the Prime Minister on 22 May 1975 and tabled in Parliament on 26 May 1975.

Note: A series of 15 Treasury Taxation Papers were submitted by the Treasury to these Committees of which Nos 1 to 13 were published between September and December 1974 and Nos 14 and 15 in July 1975. The titles of the paper were:

No. 1 Taxation Reform: Problems and Aims No. 2 The Level and Composition of Taxation in Australia No. 3 Personal Income Tax: The Income Base No. 4 Personal Income Tax: The Rate Scale No. 5 Commonwealth Taxation of Goods and Services

No. 6 Personal Income Tax: The Tax Unit No. 7 Personal Income Tax: Personal Allowances No. 8 Negative Income Tax and Tax Credit Systems No. 9 Company Income Tax Systems No. 10 Capital Gains Taxes No. 11 Estate and Gift Duty: Purpose and Rationale No. 12 Net Wealth Taxes No. 13 Summary of Issues No. 14 Indexation of the Personal Income Tax System No. 15 Income Tax Treatment of Stocks and Depreciation under Inflationary Conditions The papers were prepared by the Treasury in close consultation with, and with the detailed assistance of, the Commissioner of Taxation and his officers.

53

A P P E N D I X E S• ■ . ■ ^ * y i . C ·

M A N A G E M E N T

WORK VOLUME

The following paragraphs provide an indication of the volume of the work performed in the Australian Taxation Office. The great bulk of the work relates to income tax but some of the resources of the Office are devoted to the admin­ istration of the other levies, export incentive grants and exchange control legislation.

INCOME TAX

Returns and Assessments

During the year ended 30 June 1975 some 7,462,000 returns were lodged in respect of the 1973-74 income year and 270,698 for 1972-73 and prior income years. In the year ended 30 June 1974 some 7,176,000 returns in respect of the 1972-73 income year and 204,169 returns of previous income years were lodged.

NUMBERS O F IN C O M E TAX RETURNS 1 C E C F E W ITHIN TWELVE M ONTHS OF END OF EACH IN CO M E TEAR 1963-64 TO 1973-74

Returns in respect of income year

Returns lodged d u r i n g —

Current year taxable returns

lodged

increase over preceding year (a)

Current year non-taxable

returns lodged

Increase over preceding year(iz)

Total current year returns

lodged

Increase over preceding year

Number Per cent

Ό00 Ό00 Ό00 Ό00 Ό00 Ό00

1963-64 . . 1964-65 4,538 -7 2 * 1,019 243* 5,557 171 3.2

1964-65 . . 1965-66 4,743 205 1.034 15 5,777 220 3.9

1965-66 . . 1966-67 4,843 100 1,100 66 5.943 166 2.9

1966-67 . . 1967-68 5,020 177 1.097 - 3 6,1 17 174 2.9

1967-68 . . 1968-69 5,097 77 1,224 127 6.321 204 3.3

1968-69 . . 1969-70 5,316 219 1,185 - 3 9 6.501 180 2.8

1969-70 . . 1970-71 5,514 198 1,236 51 6,750 249 3.8

1970-71 . . 1971-72 5.706 192 1.256 20 6,962 212 3.1

1971-72 . . 1972-73 5,855 149 1.204 - 5 2 7,059 97 1 .4

1972-73 . . 1973-74 5.538 -3 1 7 1,638 434* 7,176 117 1.7

1973-74 . . 1974-75 5,857 319 1,604 - 34 7,461 285 4.0

Total increase for ten years 1,319 ■■ 585 1,904 34.3

The main volume of returns received during July to September each year is from salary and wage earners expecting a refund of excess tax instalment deduc­ tions. Each State office concentrates all available resources on the prompt pro­ cessing of these returns and the issue of resulting assessments. At the end of October 1974 nearly 82 per cent of ‘non-provisional’ current taxable returns assessed had been issued. Some 5,723,000 (or 98.0 per cent) of the 5,857,000 taxable returns lodged during 1974-75 were assessed and issued in that year. This compares with about 5,374,000 assessments issued during 1973-74 which represented 97 per cent of the 5,538,000 taxable returns lodged.

60

Of the 1,605,000 non-taxable returns lodged in 1974-75, some 1,474,000 (92 per cent) were assessed during the year. In the previous year 1,548,000 (95 per cent) of the 1,638,000 non-taxable returns lodged were assessed during the year.

The number of current assessments issued during each of the four-weekly periods in 1973-74 and 1974-75 is shown in the table below. The table on page 62 gives comparative figures of the number of notices of assessment issued to companies and individuals within twelve months of the end of each of the last

eleven income years. NUMBERS OF NOTICES OF ASSESMENT ISSUED W ITHIN TWELVE M ONTHS OF END OF EACH INCOM E YEAR 1972-73 AND 1973-74 Taxable Returns Only

Four weeks ended

Current year assess­ ments

issued

Percentage to total of current taxable

returns lodged to 30 June 1974

Cumulative percentage Four weeks ended

Current year i assess- | ments

issued

Percentage to total of current taxable

returns lodged to 30 June 1975*

Cumualtive percentage

Number Per cent Per cent Number Per cent Per cent

1973— 1974—

20 July . 259,931 4.74 19 July 19 174,439 2.98

17 Aug. . 1,085,033 19.79 24.53 16 Aug. i 980,714 16.74 19.72

14 Sept. . 1,087,285 19.83 44.36 13 Sept.. 804.557 13.74 33.46

12 Oct. . 828,299 15.11 59.47 11 Oct. . 1.243,867 21 .24 54.70

9 Nov. . 335,757 6.12 65.59 8 Nov.. 498,459 8.51 53.21

7 Dec. . 203,865 3.72 69.31 6 Dec. 235.133 4.01 67.22

1974— 1975—

4 Jan. . 210,171 3.83 73.14 3 Jan. . 317.462 5.42 72.64

1 Feb. . 424.170 7.74 80.88 31 Jan. . 347,751 5.94 78.58

1 March . 309,833 5.65 86.53 28 Feb. ’ 284,054 4.85 83.43

29 March . 195.156 3.56 90.09 28 March 342.173 5.84 89.27

26 April . 161,722 2.95 93.04 25 April 205,998 3.52 92.79

24 May . 179.385 3.27 96.31 23 May 151.462 2.59 95.38

30 June . 93,609 1.71 98.02 30 June 136,527 2.33 97.71

Total . 5,374,216 98.02 Total 5,722,596 9771 ..

( a ) o r decrease ( — ). * F rom 1903-64, no tax was pay able by individual taxpayers unless the taxable incom e exceeded

$416. Previously, tax could be pay ab le if the taxable incom e exceeded S208. F o r the 1972-73 incom e year this lim it was raised to $1,040 per annum .

Amended Assessments

As a result of additional information being provided by taxpayers and for other reasons, 266,615 current and prior year assessments were amended during the year ended 30 June 1975, an increase of 537 over the number amended during the year ended 30 June 1974.

61

NUMBERS OF NOTICES O F ASSESSMENT ISSUED W ITHIN TWELVE M O NTHS O F END OF EACH INCO M E YEAR 1963-64 TO 1973-74 Taxable Returns only

Total

Assess­ ments issued

Increase preceding over year(fl)

Number Number Per cent

4,484,140* -8 7,767 - 1 .9 2 4,669,202 185,062 4.13

4,796,374 127,172 2.72

4,969,708 173,334 3.61

5,050,385 80,677 1.62

5,258,690 208,305 4. 12

5,431,954 173,264 3.29

5,626,152 194,198 3.58

5,748,566 122,414 2.18

5,374,216* -374,350 - 6 .5 1 5,722,596 348,380 6.48

1,238,456 27.61

Objections against Assessments

The income tax legislation provides that a taxpayer may lodge with the Commissioner a written objection against his assessment within sixty days after service of the notice of assessment. The following figures show the number of objections against assessments received and decided in 1973-74 and 1974-75—

On hand at 1 July .

Received during year .

1973-74 15,532 54,401

69,933 51,300

1974-75 18,633 70,065

88,698 70,686 Decided during year .

On hand at 30 June . 18,633 18,012

Proceedings to obtain Returns and Information

Before legal proceedings are instituted against taxpayers who, for various reasons, fail to lodge returns of income or supply information required, final notices are issued to remind them of their outstanding obligations. In the year ended 30 June 1975, 359,888 final notices were issued compared with 307,785 during the

year ended 30 June 1974.

Although most taxpayers comply promptly on receipt of final notices, there remains a number against whom legal proceedings must be instituted. During the year ended 30 June 1975 charges were preferred for failure to lodge returns of income or furnish information against 66,034 taxpayers. In the 1973-74 year

54,317 taxpayers were so charged.

Tax Instalment Deductions

Under the income tax law, employers are required to deduct tax instalments from salaries and wages paid to their employees. Employers with ten or more employees must register as group employers. Those with fewer than ten employees may operate under the group scheme or the tax stamp scheme.

Periodic inspections are made to ensure that employers comply with the income tax law. Employers who fail to deduct or account for tax instalments are liable to prosecution.

Comparative statistics of the tax instalment scheme are as follows.

Item

Year ended 30 June 1974 Year ended 33 June 1975

Active group employers . . . . . 168.165 183.840

Tax stamps books issued . . . . . 342,824 293,708

instalm ent inspections . . . . . . 75.514 91.939

Prosecutions . . . . . . . 2.311 1.726

63

Withholding Tax

Companies or persons in Australia paying dividends or certain interest outside Australia are required to deduct withholding tax and remit it to the Australian Taxation Office.

At 30 June 1975 there were 9,304 registered withholding tax remitters com­ pared with 9,302 at 30 June 1974.

Income Tax Investigations

The number of income tax investigations completed during the year ended 30 June 1975 was 6,121. The increase in tax assessed and the additional tax imposed by way of penalty as a result of these investigations amounted to

$63,004,362.

SALES TAX

The number of sales tax returns (predominantly monthly returns) lodged during the year ended 30 June 1975 was 530,935, an increase of 32,301 over the previous year.

During the 1974-75 financial year, 17,621 sales tax investigations were completed as against 17,154 in 1973-74. Additional tax and penalties resulting from these investigations amounted to $12,900,950, an increase of $4,910,120 over the previous year.

PAY-ROLL TAX

The Australian Government levies pay-roll tax only in respect of the Northern Territory and the Australian Capital Territory. Pay-roll taxpayers in the Terri­ tories lodged 25,046 returns in respect of the year ended 30 June 1975, compared with 26,119 lodged in the previous year. Northern Territory lodgements fell as a

consequence of the effects of Cyclone Tracy.

Prior to 1972-73 rebates of pay-roll tax were payable as an incentive to exporters. Claims for these rebates are still being received as indicated below—

Pay-roll tax rebates

Year ended 30 June 1974 Year ended 30 June 1975

Number of claims received during year . . . 235 100

Number of claims allowed during year . . . 424 132

Total amount of rebates allowed . . . . S2.402.00C $1,108,822

Following the vacation by the Australian Government of the general field of pay-roll tax, a system of export incentive grants was introduced to replace the pay-roll tax rebate scheme.

64

EXPORT INCENTIVE GRANTS

First grants were made during the 1972-73 financial year in respect of exports made during the year ended 30 June 1972. From 30 June 1974 a new system of export incentive grants administered by the Department of Overseas Trade has replaced the Export Incentive Grants scheme. However, claims for grants under the old scheme are still being received and details of these grants are shown below.

Export incentive grants Year er-ded

30 June 1974 Year ended 30 June 1975

N um ber o f claims received during year . . . 3,760 3,778

N um ber of claims allowed during year . . . 3,662 3,934

Total amount of grants allowed . . . . $66,879,000 $93,688,902

ESTATE DUTY

Particulars of estate duty returns lodged and assessments made during the years ended 30 June 1974 and 1975 are as follows.

Estate duty Year ended

30 June 1974 Year ended 30 June 1975

Num ber of returns lodged . . . . . 17.206 19.203

N um ber of original assessments made (dutiable and 17,697 19.666

non-dutiable) . . . . . . .

N um ber of amended assessments issued . . . 6,247 5,954

GIFT DUTY

Details of returns lodged and assessments made for gift duty purposes for the years ended 30 June 1974 and 1975 are shown below.

Gift duty

Year ended 30 June 1974 Year ended 30 June 1975

N um ber of returns lodged . . . . . 19,165 20.604

N um ber of original assessments made (dutiable and non-dutiable) . . . . . . . 18,408 21,307

Num ber of amended assessments issued . . · 721 596

65

AUSTRALIAN CAPITAL TERRITORY STAMP DUTY

The number of returns received in respect of Australian Capital Territory stamp duty and tax during the year ended 30 June 1975 was 2,276 compared with 2,262 in the year ended 30 June 1974. The number of dutiable transactions recorded was 14,943 a decrease of 671 from the previous year.

OTHER LEVIES

The numbers of stevedoring industry charge, wool tax, tobacco charge and canning-fruit charge returns received during the years ended 30 June 1974 and 1975 are as shown below.

Levy

Number o f returns received

Year ended 30 June 1974 Year ended 30 June 1975

Stevedoring industry charge . . . . . 1,449 1,123

Wool tax . . . . . . . . 2,586 2,260

Tobacco charge . . . . . . . . 89 19

Canning-fruit charge . . . . . . 9 42

INWARD MAIL

Approximately 2,950,000 items of mail were received in addition to return forms and attachments during the year ended 30 June 1975, an increase of about 650,000 on the number received during the year ended 30 June 1974.

PROCEEDINGS TO RECOVER TAX

It is the practice to issue a final notice if tax remains unpaid after the due date for payment. Where the final notice is not complied with, a summons may be issued for recovery of the outstanding tax.

During the year ended 30 June 1975 there were 696,620 final notices issued in respect of all taxes compared with 563,713 for the previous year. The numbers of summonses lodged were 46,642 in 1974-75 and 31,992 in 1973-74.

VALUATION OF PROPERTY

The valuation branch provides a valuation service for government departments and instrumentalities as well as where necessary for the administration of the taxing laws, especially those relating to estate duty, gift duty and income tax.

In the Australian Capital Territory and in the Northern Territory the branch provides a service comparable to that of a State Valuer-General’s Department.

66

Valuations are also made for some State departments and instrumentalities. These valuations may be made at the expense of the State authority or alter­ natively the State concerned provides reciprocal services for the Australian Government.

Statistics of properties valued during the year are shown in the following tables. The total number of properties valued during the year fell by 24 per cent from the previous year. However the workload in all major categories increased except in the unimproved capital values for rating purposes in the A.C.T. which

are only required each third year. A substantial and unexpected increase was brought about by the effects of Cyclone Tracy on Darwin.

The total value of properties valued rose by 4.3 per cent.

NUMBER AND VALUE OF PROPERTIES VALUED Year ended 30 June 1975

Authority

Properties valued

Number $'000

Taxation Office— (a) Estate Duty . . . . . . 7,820 258,912

(b ) Gift D u t y .............................................................. 3,624 199,614

(c) Income Tax . . . . . . 781 102.129

( d ) A.C.T. Stamp Duty . . . . . 397 20,684

Department of Social Security— (a) Pensions . . . . . . . 20,542 373,261

(b) Aged Persons’ Homes, etc. . . . . 418 37,221

Department of Capital Territory— (a) General . . . . . . . 4,104 107.570

(b) Unimproved Capital Values . . . . 7,173 1 15,215

(c) Rural. . . . . . . . 451 8,511

( d ) Miscellaneous . . . . . . 46 8.780

Department of Services and Property . . . 5,280 1,636,100

Department of Housing and Construction— (a) Defence Service Homes and others . . 5.142 99,222

(b) Defence Service Homes Insurance . . 2,328 40,350

Department of Repatriation and Compensation . 7,752 177,627

Superannuation Board and D.F.R.D.B.A. . . 49 150.809

Department of Transport . . . . . 442 74.592

Australian National University . . . . 24 772

Department of Northern Territory— (a) Acquisitions . . . . . . 225 16,896

(b) Unimproved Capital Values . . . . 10,935 102,910

(c) General . . . . . . . 4,442 78,580

(d ) Darwin Reconstruction Commission . . 1,616 86,000

(e) Darwin Business Relief Fund . . . 17 534

Department of Education . . . . . 12 573

Department of Aboriginal Affairs . . . . 11 1,714

Department of the Treasury . . . . . 14 22,899

Attorney-General’s Department . . . . 64 1,231

Department of U rban and Regional Development . 24 24,065

Miscellaneous . . . . . . . 250 151.492

Total . . . . . . . 83,983 3,898,263

67

NUMBER AND VALUE OF PROPERTIES VALUED—( c o n tin u e d ) Year ended 30 June 1975

Properties valued

Location of Properties Number $’000

New South Wales . . . . . . 11,351 1,374,817

Victoria . . . . . . . . 10,440 516,812

Queensland . . . . . . . . 7,299 724,003

South Australia . . . . . . . 10,047 257,004

Western Australia . . . . . . 6,360 199,012

Tasmania . . . . . . . . 2,707 46,927

Northern Territory . . . . . . 23,414 462,843

Australian Capital Territory . . . . . 12,365 316,845

Total . . . . . . . 83,983 3,898,263

Employment

T he staff em ployed in th e T a x a tio n Office rose fro m 11,422 at 3 0 J u n e 1974

to 11,740 a t 30 J u n e 1975. T h e figure of 1 1 ,7 4 0 c o m p rise d :—

Full-time staff: P e rm a n e n t O fficers . . 10,906

T e m p o ra ry E m ployees . . 669

S easonal E m ployees . . 120

11,695

Part-time staff: T e m p o ra ry E m p lo y ees . 45

T o ta l . . . . 1 1,740

In addition, 619 officers an d e m p lo y ees w ere a b se n t o n ex ten d ed leave and 87 w ere a tte n d in g full-tim e tra in in g c o u rses a t 3 0 J u n e 1975. These are classified fo r statistical purp o ses as in o p erativ e m em b ers of th e staff.

T h e follow ing ta b le show s a d isse c tio n u n d e r b ro a d d e sig n atio n s of the staff em ployed a t 30 J u n e 1975.

STAFF EMPLOYED IN TAXATION OFFICE AT 30 JU N E 1975

D e s i g n a t i o n o f D u t i e s M a l e s F e m a l e s Total

E x e c u t i v e O f f ic e r s . . . . 96 1 97

A d v i s i n g O f f ic e r s . . . . 194 2 196

A s s e s s o r s . . . . . 1,888 310 2,198

I n v e s t i g a t i o n O f f ic e r s . . . 924 14 938

C l e r k s . . . . . . 2,084 606 2,690

A . D . P . — T e c h n i c a l S t a f f . . . . 111 20 131

D a t a P r o c e s s i n g S t a f f . . . 532 532

V a l u e r s a n d D r a f t i n g O f f ic e r s . . 254 5 259

T y p i s t s . . . . . . 575 575

A c c o u n t i n g M a c h i n i s t s . . . 210 210

A s s i s t a n t s . . . . . 1,430 2,313 3,743

O t h e r ...................................................................... 60 111 171

T o t a l . . . . . 7,041 4.699 11,740

68

Cost of Collection of Taxation Revenue

Details of the cost of collection of revenue and the percentage of net cost to total collections for the financial years 1965-66 to 1974-75 are shown below.

TOTAL TAXATION OFFICE REVENUE AND COST OF COLLECTION

Financial Years 1965-66 to 1974-75

Financial year

Total taxation office revenue* Salaries

Gross costs

General Rentf expenses Total

Other depart­ ments, etc.,

costs!

Net cost of collection

Net cost as

percentage of total collections

$’000 $’000 $’000 $’000 $’000 $’000 $’000 Per cent

196566 . . 3,148,569 24,492 3,885 2,344 30,721 498 30,223 0.960

1966-67 . . 3,355,650 29.872 4,058 2,543 36,473 505 35,968 1.072

1967-68 . . 3,729,886 32,413 4,385 2,724 39,522 599 38,923 1.044

1968-69 . . 4,218,728 34,265 5,049 3,446 42,760 643 42,117 0.998

1969-70 . . 4,963,672 40,311 5,830 3,764 49,905 789 49,116 0.990

1970-71 . . 5,602,510 46,140 6,020 4,384 56,544 972 55,572 0.992

1971-72 . . 6,127,721 54,106 6,996 4,674 65,776 1,666 64,110 1.046

1972-73 . . 6,583,363 60.386 9,260 5,391 75,037 2.549 72,488 1.101

1973-74 . . 8,624,590 74,835 10,242 6,376 91,453 3,088 88,365 1.025

1974-75 . . 11,500,740 96,904 13,699 6,984 117,587 4,189 113,398 0.986

* P ay -ro ll tax ceased to be levied by th e A ustralian G o v ern m en t on wages an d salaries paid in th e States on and after 1 S eptem ber 1971. C osts continued to be incurred after th a t d ate for export rebates and grants m ade u n d er th e P a y - r o l l

T a x A s s e s s m e n t A c t 1941-1969 an d th e E x p o r t I n c e n t i v e G r a n t s A c t 1971-1973. E x p o rt incentive grants o f $92,275,743

a n d asso ciated costs o f $430,201 have n o t been ta k en into acco u n t when calculating th e figures show n above. f Includes re n ta l value o f A u stralian G overnm ent prem ises. $ Costs n o t attrib u tab le to collection o f revenue, e.g. cost o f work d o n e fo r o th e r D ep artm en ts.

The following table sets out the total collection of taxes administered by the Taxation Office, the net cost of collection of the taxes and the cost expressed as a percentage of the collections for the financial years 1973-74 and 1974-75.

C O ST O F COLLECTION OF TAXES ADMINISTERED BY TAXATION OFFICE

Years Ended 30 June 1974 and 30 June 1975

Tax

Year ended 30 June 1974 Year ended 30 June 1975

Total collections

Net cost of collection

Net cost per cent of collections

Total collections

Net cost of collection

Net cost per cent of collections

s S Per cent s s Per cent

income tax . . . 7,523,426,325 79,109,195 1.052 10,160,944.149 102,154,932 1.005

Sales tax . . . . 968,758,243 6,426,326 0.663 1.154.290.467 8,014,542 0.694

Pay-roll tax* . . . 5.357,811 177,002 3.304 14,837,928 139.532 0.940

Estate duty . . . 65.875,245 1,771,999 2.690 63,718,524 2.142,665 3.362

Gift duty . . . . 9,725.055 691,901 7.115 16,203,924 743.981 4.591

A.C.T. stamp duty and tax 3,994,860 115,410 2.889 3,432,784 122,774 3.576

O ther taxes and charges! · 47.452,685 72.839 0.153 87,312,254 79.190 0.090

8,624,590,224 88,364,672 1.025 11,500,740,030 113,397,616 0.986

* P ay-roll tax ceased to be levied by the A ustralian G overnm ent on wages and salaries paid in the States on and after 1 S eptem ber 1971. C osts continued to be incurred after that date for export rebates and grants m ade under the P a y - r o l l T a x A s s e s s m e n t A c t 1941-1969 and the E x p o r t I n c e n t i v e G r a n t s A c t 1971-1973. The figure show n above for pay-roll tax

is n et after offsetting pay-roll tax rebates refunded against pay-roll tax collections. Export incentive grants o f $92,275,743 and associated costs o f $430,201 have not been taken into acco u n t when calculating the figures show n above. f T otal collections fo r th e y ear ended 30 June 1975 for these taxes and charges were—W ool tax, $64,287,901; Stevedoring industry charge, $22,4 11,142; T obacco charge, $504,838; Canning-fruit charge, $108,373.

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I N C O M E T A X

Incom e tax , th e m o st im p o rta n t rev en u e-raisin g levy in A u stra lia , w as first im posed in A u stra lia in 1884 b y th e P ro v in c e o f S o u th A u stralia. I n course of tim e the

ta x w as a d o p te d by th e G o vernm ents in all States and, in 1 9 15, b y th e A u stra lia n

G o vernm ent.

F ro m 1915 to 1942 the A u stra lia n G o v ern m en t a n d th e States im posed

incom e ta x c o n cu rren tly . W ith th e a d v e n t of u n ifo rm ta x a tio n in 1942, how ever, the S tates w ithdrew fro m the incom e ta x field.

L E G IS L A T IO N

T h e law s dealing w ith incom e ta x a t 3 0 Ju n e 1975 w ere:

Income Tax Assessment A ct 1936-1975 (later referred to as ‘the Assess­ ment Act’)

A cts d eclarin g rates of tax —

Income Tax Act 1974 Income Tax (Dividends and Interest Withholding Tax) Act 1974 Income Tax (Drought Bonds) Act 1969 Income Tax ( Withholding Tax Recoupment) Act 1971

Income Tax (Bearer Debentures) Act 1971-1974

Income Tax Regulations.

The operation of the Assessment Act is affected by other Acts, the more important of which are:

Taxation Administration A ct 1953-1974, which provides for the adminis­ tration of certain Acts relating to taxation and the screening for taxation purposes of applications for exchange control approval; Income Tax (International Agreements) Act 1953-1974, which gives

the force of law to agreements with other countries for the avoidance of double taxation (see ‘Relief of Double Taxation’, page 00); International Organizations (Privileges and Immunities) Act 1963-1966, and Regulations made under that Act, which provide for the exemption

from income tax of certain income of international organizations and their officials; Diplomatic Privileges and Immunities Act 1967-1973, which provides for the exemption from income tax of certain income of diplomatic repre­

sentatives, their staff and families; Consular Privileges and Immunities Act 1972-1973, which provides for the exemption from income tax of certain income of consular representatives,

their staff and families; Loan (Drought Bonds) Act 1969-1973, which authorizes the issue of drought bonds and empowers the Commissioner of Taxation to declare when drought bonds have become redeemable.

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SCOPE OF INCOME TAX

Liability for income tax arises under the Assessment Act which contains provisions for arriving at the income on which income tax is payable at the rates declared by Parliament. The rates of tax are set out in the rating Acts cited above. Income tax is payable on the income of both individuals and companies. The income of a partnership is assessable in the hands of the partners while that of a trust estate is assessed to either the trustee or the beneficiaries. In most cases tax is levied under assessment processes while in others the system is one of with­ holding at source.

The Assessment Act draws a distinction between persons (including com­ panies) who are residents of Australia and persons who are not residents of Australia (referred to as ‘residents’ and ‘non-residents’ respectively) which is basic to its application and operation. Both residents and non-residents are

subject to tax on income derived from sources in Australia. In addition, residents are assessable on income derived from sources out of Australia, subject to measures to relieve double taxation of income taxed in the country in which the income has its source.

The tax payable by residents is determined by assessment. In certain circumstances where interest is derived by a resident in the course of carrying on a business through a permanent establishment overseas, that interest will be subject to tax under the withholding tax system. Those who are not residents generally

pay tax under the withholding system on dividends and interest while their Australian-source income that is not subject to withholding tax is taxed by assessment. Income derived by non-residents from sources outside Australia is not taken into account in determining the rate of tax payable on Australian- source income.

Tax by Assessment

Returns of income The tax payable by residents, and by non-residents on Australian-source income which is not subject to withholding tax, is ascertained on the basis of an assess­ ment made for each income year ending on 30 June. For this purpose, an income tax return is required to be submitted for each year ending on that date. The Commissioner may, however, give leave to lodge returns for an annual period

ending on some other date.

BASIS OF ASSESSMENT

Income tax by assessment is normally levied on an amount known as the ‘taxable income’ which is the total of all income assessable to income tax, less allowable deductions.

The Assessment Act does not provide a statutory definition of ‘income’ and the word is therefore used primarily in its ordinary sense. The Assessment Act

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specifically includes in ‘income’ certain items such as casual profits from the sale of property held less than one year and profits arising from the sale of property acquired for the purpose of profit-making by sale regardless of the period the property is held before sale. Receipts such as gifts (other than gratuities received by an employee from his employer in the course of his employment), legacies, lottery wins and other receipts of capital are not treated as income and are not

assessable.

Exemption from tax is provided by the Assessment Act in respect of a number of specified classes of income—for example, the income of charitable institutions and public hospitals, and certain foreign income where it has been taxed overseas.

Deductions from assessable income are authorized for all losses and outgoings incurred in gaining or producing assessable income or necessarily incurred in carrying on a business for that purpose, except to the extent that they are of a capital, private or domestic nature, or are incurred in gaining or producing exempt income. In addition, certain other deductions are specifically authorized

by the Assessment Act.

Deductions allowable include trading losses incurred in previous years, bad debts, depreciation, rates and land taxes paid and gifts to various institutions. Expenditure of a capital nature incurred in relation to mining operations is generally deductible over the lesser of 25 years or the life of the mine or oil

field or, in the case of plant, over the life of the plant. Exploration or prospecting expenses incurred by mining companies (including petroleum mining companies) are generally allowable as a deduction against income of a mining business (or against assessable income from petroleum) in the year in which the expenditure is incurred. Certain expenditure of a capital nature incurred by primary producers in carrying out improvements to their land is deductible over 10 years. Primary producers may also be allowed deductions for amounts subscribed for drought bonds.

Residents of the prescribed Zone A and Zone B are entitled to a special zone allowance deduction. Members of the Defence Force serving in certain overseas localities are entitled to a deduction of the same amount as residents of Zone A.

Deductions described as ‘concessional deductions’ allowed to resident taxpayers are:

(a) allowances for maintenance of dependants—spouse, daughter-house­ keeper, parent, parent-in-law (subject to a maximum deduction of $364 in each case); one child under 16 years, student child, invalid relative (maximum $260 per dependant); other children under 16 years (maximum $208 per dependant);

(b) deductions for—housekeeper (maximum $364); medical, etc. expenses; funeral expenses (maximum $100); life insurance and superannuation payments (maximum $1,200); payments to medical and hospital benefits funds; education expenses of dependent students

(maximum $150 per student); self-education expenses (maximum $150); child adoption expenses.

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From 1 July 1974 deductions may be allowable for all or part of interest paid in respect of certain housing loans. To qualify for a deduction under this pro­ vision it is required that the combined net income of a husband and wife be less than $14,000. Where the combined net income is less than $4,000 a deduction is allowable for the full amount of the interest paid. The amount of the deduction

allowable is reduced by 1 per cent of the interest for each $100 by which the combined net income exceeds $4,000.

RATES OF TAX The tax on a person’s taxable income is arrived at by applying to that taxable income the rates declared by the relevant rating Act. For taxpayers generally the rates of tax for the 1974-75 financial year are those set out in the

Income Tax Act 1974. These rates relate to income of the 1974-75 year of income of individuals and to income of the 1973-74 year of income of companies.

Individuals Income tax is levied on individuals on a graduated rate scale. The general rates of tax payable by individuals for the 1974-75 financial year are less than those that applied for the 1973-74 financial year for all but relatively high taxable incomes. The general rate commences at 1 per cent on the first $ 1,000 of taxable income and rises to 67 per cent on the amount of income in excess of $40,000. However, no tax is payable if the taxable income of the individual does not exceed $1,040 and the

tax on taxable incomes just above $1,040 is determined on a special basis.

The table below sets out the general rates of income tax payable by individuals in respect of taxable income derived during the year ended 30 June 1975.

GENERAL RATES OF TAX—INDIVIDUALS 1974-75 Financial Year, 1974-75 Income Year

Total taxable income

Tax at general rates on total taxable income

N ot less than N ot more than

$ s s s

See note / o 1,000 0.00 + 1 cent for each Si

below \ 1.000 2,000 10.00 + 7 cents for each Si in excess of 1.000

2.000 3,000 80.00 4- 14 cents for each SI in excess of 2.000

3.000 4,000 220.00 + 20 cents for each SI in excess of 3.000

4,000 5,000 420.00 26 cents for each SI in excess of 4.000

5,000 6.000 680.00 + 32 cents for each SI in excess of 5.000

6,000 7.000 1,000.00 4- 38 cents for each SI in excess of 6.000

7,000 8,000 1,380.00 44 cents for each SI in excess of 7.000

8.000 10,000 1,820.00 48 cents for each SI in excess of 8.000

10.000 12,000 2,780.00 4- 52 cents for each SI in excess of 10.000

12,000 16,000 3,820.00 — 55 cents for each Si in excess of 12.000

16,000 20.000 6,020.00 — 60 cents for each SI in excess of 16.000

20,000 40.000 8,420.00 U- 64 cents for each SI in excess of 20,000

40,000 — 21,220.00 T - 67 cents for each SI in excess of 40,000

N ote: With certain exceptions no tax is payable by an individual where the taxable income does not exceed §1,040. In cases where the taxable income exceeds SI .040 but does not exceed Si .061 the tax is not to exceed 66 per cent of the excess of the taxable income over Si .040. The tax so ascertained is reduced by any rebate or credit to which the taxpayer is entitled.

For the 1974-75 year of income, a tax surcharge -is payable in respect of income from property included in the taxable income of an individual whose taxable income exceeds $5,000. Where a person’s taxable income is S5,500 or

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more the surcharge is equal to 10 per cent of the basic tax on the taxable income from property. For taxable incomes in the range $5,001 to $5,499 the rate of the surcharge is 0.02 per cent for each $1 by which the taxable income exceeds $5,000.

The tax on taxable income of a person with primary production income may be calculated by reference to an average income, the basic rule being that the first $16,000 of taxable income is taxed at the average rate of tax on a taxable income equal to the lesser of $16,000 and the average of the taxpayer’s taxable incomes of the year of income and the preceding four years.

Companies The primary rates of company tax do not now vary according to whether the company is treated for tax purposes as a ‘private’ or a ‘public’ company. The rates of tax applied to public companies for the 1974-75 financial year were reduced from 47.5 per cent to 45 per cent, except that the rate applicable to non-profit friendly society dispensaries remained unchanged at 37.5 per cent.

The rate of tax applied to private companies remained unchanged at 45 per cent.

Private companies are also liable for additional tax if there is an insufficient distribution of taxable income by way of dividends. Tax on the undistributed amount, as defined, is imposed at the rate of 50 per cent.

For the purposes of the Assessment Act, a company is regarded as a public company if, broadly, its shares are on the official list of a stock exchange—in Australia or elsewhere— and it is not capable of being controlled by relatively few individuals. A subsidiary of a public company is itself classed as a public company, subject to its meeting certain tests specified in the Act. A company

that is not a ‘public’ company is classified as a ‘private’ company.

The rates of company tax for the 1974-75 financial year are set out in the following table. RATES OF TAX—COMPANIES Financial Year 1974-75

Type of company • Rate per cent

P r i v a t e * .................................................... . . 45.0

Public— Co-operative . . . . . . . 45.Of

Life Assurance . . . . . . . 45.0

Non-nrofiti — Friendly Society Dispensary . . . . 37.

Other . . . . . . . . 45. +

Other . . . . . . . . 45.

* A dditional tax at rate o f 50 per cent payable on undistributed am ount, t A rate o f 4 2 .5 per cent applies to th e first S10,000 o f taxable income, t A non-profit com pany is not liable to tax unless th e taxable incom e exceeds $416; where, in the case o f a non-profit com pany o ther than a friendly society dispensary, the taxable incom e does not exceed S I,830, th e m axim um am ount o f tax payable is 55 per cent o f the excess o f th e taxable incom e over $416 less any rebate or

credit to which the com pany is entitled; where, in th e case o f a non-profit com pany th a t is a friendly society dispensary the taxable incom e does n o t exceed S I,664, the m axim um am o u n t o f tax payable is 50 per cent o f th e excess o f the taxable income over $416 less any rebate or credit to which the com pany is entitled. O ther com panies

are assessed to tax if the taxable incom e is SI o r more.

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Other Classes of Taxpayers

In addition to declaring the rates of tax payable by individuals and companies, the Income Tax A ct 1974 sets out the rates of tax payable by persons in receipt of abnormal income and trustees of certain trust estates and superannuation funds, as well as certain special rates of tax, viz.

• the rate of further tax payable in respect of certain partnership income to which section 94 of the Assessment Act applies; • the rate of tax payable by a trustee on income to which no beneficiary is presently entitled and to which section 99a of the Assessment Act

applies; and • the rate of tax payable by a trustee of a superannuation fund on income in respect of which he is liable in pursuance of section 1 2 1 c a , 1 2 1 cb or 121da of the Assessment Act to be assessed and pay tax.

The Act also provided for the allowance of a special rebate of tax in the assessments of residents of Australia who are of age pension age or who are the wives of men of age pension age.

The special tax rebate that applied during the 1974-75 financial year was a basic amount of $130 and had the effect of freeing from payment of tax aged people whose taxable income (including government pension) in 1974-75 was $2,358 or less, if they qualified for the rebate for the whole of 1974-75. The

full rebate of $130 applied where the taxable income was $3,224 or less. It reduced by 25 cents for each $1 of taxable income above $3,224 and phased out at a taxable income of $3,744. Persons who qualify for only part of the year are entitled to a proportionate amount of the rebate otherwise allowable.

The special income tax payable where drought bonds are redeemed otherwise than in consequence of drought, fire or flood is imposed by the Income Tax (Drought Bonds) Act 1969. The tax payable in accordance with section 126 of the Assessment Act in respect of interest paid by a company on bearer debentures is imposed by the Income Tax (Bearer Debentures) Act 1971-1974.

REBATES

A rebate of tax is a reduction in the amount of tax otherwise payable calculated by applying to the amount subject to rebate the average rate of tax payable by the taxpayer or some special rate. It may also take the form of a flat amount

credited against tax otherwise payable, as for the S I30 age rebate referred to above. In addition to the age rebate and the rebate for low-income families outlined later in the notes headed ‘Amendments to the Acts’, rebates are available in respect of certain classes of assessable income.

For example, a public company which is a resident of Australia is allowed a rebate in respect of dividends received. The amount of this rebate is calculated by applying the average rate of tax payable by the company to the amount of any dividends included in its taxable income. A private company is also entitled to

this rebate but, where the dividends are received from another private company, the rebate may be halved. Special provisions apply where the dividends received

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by the company, whether public or private, arise out of dividend stripping operations and where options for the valuation of trading stock have been exer­ cised by a company in a particular way for the purpose of increasing the rebate otherwise allowable on its dividend income.

Both individuals and companies are also entitled to a rebate in respect of interest on government loans issued prior to 1 November 1968, The rebate in this case represents 10 cents for each $1 of such interest included in the taxable income.

A rebate of up to 4 2 ί per cent of the relevant expenditure is also available in respect of certain expenditure incurred on or before 30 June 1974 to develop export markets.

GENERAL Payment of tax Tax on the income of individuals is collected in the year in which the income is derived by means of systems of tax instalment deductions and provisional tax. A salary or wage earner has tax instalments deducted from his pay by his employer who remits the money monthly to the Taxation Office. A taxpayer with annual income, other than salary and wages, of $400 or more is liable to pay provisional tax in respect of that income if his taxable income for the year is equal to or greater than the minimum taxable amount. Provisional tax for a year is calculated by reference to the tax payable on the taxable income of the previous year, but having regard to the salary and wage income included in that taxable income. Taxpayers to whom provisional tax for a year is notified are entitled to ‘self- assess’ their provisional tax by submitting to the Taxation Office estimates of their taxable income for that year and applying to have their provisional tax varied

accordingly. The amount of tax instalment deductions or provisional tax paid in respect of a particular year is credited against the amount of tax subsequently assessed for that year.

During the 1974-75 financial year the second stage of a scheme designed to place the payment of company tax on a quarterly basis was implemented. This stage required the payment of two instalments, each approximating 25 per cent of the company’s annual tax liability, with the first instalment due for payment not before 15 November 1974 and the second not before 15 February 1975. However, the requirement for payment of the second instalment was waived with the passing of the Income Tax Assessment Act 1975. Further details of this scheme will be found in ‘Amendments to the Acts’ at page 78.

Notice of Assessment On the basis of information disclosed in a taxpayer’s annual return of income a notice of assessment is issued showing the taxable income and the amount of tax payable thereon. The notice also shows the amount of any rebates, any provisional tax debited, any additional tax incurred for late returns or omitted income, credits due for tax instalment deductions and provisional tax previously paid, the balance of tax payable on the assessment and the due date for payment. Assessments in which provisional tax is levied are not due for payment before 31 March each year.

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Objections and Appeals Machinery is provided in the Assessment Act for the lodgment of objections to assessments. A taxpayer dissatisfied with the decision on an objection may request reference of the decision to one of the three Boards of Review, where hearings are conducted with a minimum of legal formality. Alternatively, the taxpayer may request that the objection be treated as an appeal to be referred to consider such applications. (See ‘Statutory Taxation Boards’.)

Relief from Payment of Tax Taxpayers who might suffer serious financial hardship through the payment of tax may apply for relief from payment of their liability. A Board of Relief exists to consider such applications. (See ‘Statutory Taxation Boards’.)

Withholding Tax

Australia, in common with many other countries, provides in its income tax legislation for the payment of tax on certain classes of income by a system of withholding at source. This method of taxation applies to most dividends, and to a wide range of interest payments, derived by non-residents. However, as

mentioned above at page 61, interest payments may be subject to withholding tax where they are derived by a resident in the course of carrying on a business through a permanent establishment overseas. Tax at the appropriate rate is deducted by Australian dividend-paying companies, by borrowers and by Austra­

lian nominees of non-resident investors from the dividends and interest payable to non-residents and is remitted to the Taxation Office. The tax so deducted represents the non-resident recipient’s final liability for Australian tax on the dividend or interest payments.

The rates of withholding tax are set out in the Income Tax (Dividends and Interest Withholding Tax) Act 1974. The declared rate of withholding tax on dividends is 30 per cent. However, Australia has concluded double tax agreements with a number of other countries which generally limit withholding tax on divi­

dends derived by residents of the other countries to 15 per cent of the gross dividends. The lower rate of 15 per cent also applies in respect of dividends derived by residents of Papua New Guinea.

The declared rate of withholding tax on interest is 10 per cent. The Income Tax (Withholding Tax Recoupment) Act 1971 imposes a special tax on interest on certain overseas loans which initially qualified for an exemption from withholding tax but which subsequently cease to qualify.

Relief of Double Taxation

Australia has concluded comprehensive agreements for the avoidance of double taxation with the United Kingdom, the United States of America, Canada, New Zealand, Singapore, Japan and the Federal Republic of Germany. (See "Amend­ ments to the Acts’, page 78, for further details of the recent agreement with Germany.) Limited agreements dealing with airline profits have been concluded

with France and Italy, the agreement with Italy having been given the force of law in Australia but not taking effect until it is formally ratified by both countries.

77

A main purpose of these agreements is, one way or another, to avoid the effect of double taxation on income flowing between Australia and each of these countries.

Amendments to the Acts

Since the preparation of the Fifty-third Report, the Acts relating to income tax have been amended by the following enactments— Act No. and year Date of Assent

Income Tax Assessment Act 1974 . Income Tax (Dividends and Interest 26 of 1974 1 August 1974 Withholding Tax) Act 1974 . Income Tax (International Agree­

27 of 1974 1 August 1974

ments) Act 1974 . . .

Income Tax Assessment Act {No. 29 of 1974 6 December 1974

2) 1974 . . . .

Income Tax (Bearer Debentures) 126 of 1974 6 December 1974

Act 1974 . . . . 128 of 1974 6 December 1974

Income Tax Assessment A ct 1975 . 80 of 1975 20 June 1975

Income Tax Assessment Act 1974

Liability to withholding tax This Act introduced amendments to ensure that withholding tax that would be payable where interest is paid directly to a non-resident lender may not be avoided by arrangements under which the interest is paid to a resident of Australia carrying on business through an overseas branch which in turn pays the interest to the non-resident lender. The amendments apply to interest payments made after 2 July 1973.

Similar amendments were made to provisions of the Principal Act dealing with the source of royalties paid to non-residents, and the source—for the purpose of provisions relating to Norfolk Island— of both interest and royalties, which were modelled on the interest withholding tax provisions to which the abovementioned

amendments were made. These amendments came into operation on 4 April 1974.

Defence Force allowances This Act amended two provisions of the Principal Act that relate to the taxability of Defence Force allowances to bring them into harmony with the current pay structure and to effect some other changes. Section 23 (/), which lists Defence Force allowances that are exempt from income tax, was amended to delete refer­ ences to allowances that are no longer payable and replaced them with references to the value of rations and quarters (when supplied free of charge) and to pre­ scribed kinds of allowances or bounties. Re-engagement bounties and various kinds of allowances in the nature of reimbursements of out-of-pocket expenses

have been prescribed for exemption purposes in the Income Tax Regulations. Section 26 (ea), which provides for the assessable income of a member of the Defence Force to include the value of the allowances he receives, was amended

to omit a proviso that placed an aggregate value of $2 per week on allowances in the ‘food and shelter’ category.

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Retirement benefit contributions

Section 82h of the Principal Act, which authorizes deductions for contributions to superannuation funds, was amended to preserve deduction entitlements for pay­ ments that were formerly payable to such funds by members of the Australian Parliament and members of the Defence Force but are now payable into the

consolidated revenue.

Collection of company tax by instalments Provisions incorporated into the Principal Act in 1973 brought into operation the first stage of a planned system for collecting company tax by quarterly payments, which involved the collection of one mid-year instalment in the 1973-74 financial year for crediting in due course against tax payable by a company on its 1972-73

income. Those provisions were amended to facilitate the operation of the remain­ ing two stages of the planned system.

As they applied to the second stage operative in the 1974-75 financial year, the amended provisions authorized the collection from a company of two instal­ ments of tax— one payable on or after 15 November 1974 and the other on or after 15 February 1975— to be credited in due course against the amount payable in respect of its 1973-74 income. However, a subsequent modification effected

by the Income Tax Assessment A ct 1975 relieved companies from liability to pay the second instalment.

As they apply to the final stage, which commenced to operate in the 1975-76 financial year, the amendments authorize the collection from a company of three instalments of tax. In that year a company may be called upon to pay, for subsequent crediting against the tax payable in respect of its 1974-75 income,

one instalment of tax on or after 15 August 1975, a second instalment on or after 15 November 1975 and a third on or after 15 February 1976. The balance of the tax will ordinarily be payable during the final quarter of 1975-76.

Each instalment of tax payable in that financial year will be one quarter of the tax assessed on a company’s 1974-75 income or, if an assessment of that tax has not been made by the time a notice to pay the instalment is issued to the company, one quarter of the tax assessed on its 1973-74 income. In the latter

event, the company may have the amount of the instalment varied on the basis of its estimate of the tax that will be payable on its 1974-75 income. The variation will flow through to any later instalment notified before the actual amount of that tax has been determined by assessment. Under-estimations are penalized

by way of additional tax but the Commissioner is authorized to remit the additional tax to any extent that he may consider to be justified. Where the Commissioner is satisfied that tax will be payable in respect of the income of a year of income he may call for an instalment even though an instalment would not be payable under the general rules. He is authorized also in appropriate circumstances to

increase or decrease the amount that would otherwise be payable as an instalment.

For 1976-77 and subsequent financial years, the times for payment of instalments of tax and the methods of arriving at the amounts payable are to follow the patterns described for 1975-76 instalments.

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Income Tax (Dividends and Interest Withholding Tax) Act 1974

This Act, which declared rates of dividend and interest withholding tax, was a technical measure consequential on the extension of interest withholding tax beyond payments to non-residents to include, in a limited range of circumstances, payments of interest to residents.

The Act repealed the Income Tax (Non-resident Dividends and Interest) Acts of 1967 and 1973, which up till then had declared the rates of withholding tax on payments to non-residents, and declared the rates of withholding tax on payments to non-residents and on those payments of interest to residents that become subject to withholding tax as a consequence of the amendment of the Assessment Act, referred to above.

Income Tax (International Agreements) Act 1974 This Act gave the force of law in Australia to a new comprehensive double taxation agreement between Australia and the Federal Republic of Germany. It also contains amendments of a technical character made necessary by the surcharge of tax payable for the 1974-75 income year in respect of property income.

The agreement with Germany by and large accords in practical effect with other comprehensive agreements to which Australia is a party. There is however one matter that is dealt with somewhat differently in this agreement. While, under the agreement, withholding tax on dividends will generally be limited by each country to 15 per cent, the Federal Republic, as in other agreements to which

it is a party, may impose a higher rate—25.75 per cent— on dividends paid to a foreign company which owns 25 per cent or more of the Germany company paying the dividends. This special feature is necessary to prevent exploitation of the German system of company taxation under which a much lower rate of tax is payable on distributed profits than on undistributed profits.

While the agreement was signed on 24 November 1972, it did not enter into force until 15 February 1975, following the exchange of instruments of ratification on 16 January 1975. The agreement has effect, as respects withholding tax in both countries, as from 1 July 1971, and as respects tax by assessment, from the

1971-72 income year in Australia and the 1971 calendar year in the Federal Republic.

The technical amendment referred to above provides a means of taking the surcharge of tax on property income into account in calculating the amount of Australian tax on particular income. This calculation has to be made in order to determine a limit for double taxation credits for foreign tax so that they do not exceed Australian tax on foreign income and to establish the rebate to be allowed where the Australian tax payable by a non-resident on Australian income is limited under an agreement.

Income Tax Assessment Act (No. 2) 1974 Mining activities on the continental shelf

The Act amended section 6aa of the Principal Act to extend the scope of the section so that exploration and mining for minerals and associated activities conducted off-shore on the continental shelf are to be regarded for income tax

80

purposes as being conducted in Australia. (Previously the section applied in this way only to exploration and exploitation of off-shore oil or natural gas deposits and associated activities.) For the purpose o f section 6 a a the continental shelf is taken as being the

off-shore ‘adjacent areas’ as specified in the Petroleum (Submerged Lands) Act 1967-1973, other than areas adjacent to Papua New Guinea.

As a general rule, residents of Australia are subject to Australian tax on income from all sources, both inside and outside Australia. Non-residents, on the other hand, are normally subject to Australian tax only on income that has a source in Australia. Section 6 a a produces, in effect, an expanded definition of

Australia.

Section 6 a a , a s amended, makes it clear that Australia has the right to tax income derived from, or in connection with, exploration or mining activities on the continental shelf for oil or natural gas or for other minerals when the income is derived b y a person who is not a resident of Australia for income tax purposes.

It also ensures that both resident and non-resident taxpayers are entitled to the same income tax deductions, including the special deductions available for capital expenditure incurred in petroleum exploration and mining or explora­ tion or mining for other minerals, as they would be if their operations were carried out on the Australian mainland.

Although section 6 a a , as amended, applies to income derived from general mining and associated activities, it will not operate to include as assessable income any income derived before 18 September 1974 that would not otherwise have been included in assessable income. For the 1974-75 income year and sub­

sequent years, enterprises obtaining general minerals from the continental shelf are eligible for the special deductions provided for related expenditure on the same basis as if the expenditure, including past expenditure, had been incurred on mainland operations.

Exemption of certain mining income The Act also repealed section 2 3 a of the Principal Act which exempted from tax 2 0 per cent o f the net income derived from mining in Australia or Papua New Guinea for the metals o r minerals specified i n Income Tax Regulation 4 a a .

The repeal of section 23a is effective for the 1974-75 and s u b s e q u e n t income years.

Credit unions This Act introduced into the Principal Act a new section—section 2 3 g — which exempts from income tax interest derived by a credit union from loans to members other than companies.

The exemption may apply only to a company that is registered as a credit union or credit society under a relevant law in force in a State or Territory or, being registered under a law in force in a State or Territory relating to co­ operative industrial or provident societies, has as its principal object or carries

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on as its principal business the raising of moneys from, and the lending of moneys to, its members. Such a company may not, however, qualify for the exemption for a year of income unless the Commissioner is satisfied that, during that year, it did not enter into transactions of a kind not ordinarily entered into by the general body of credit unions and did not, by comparison with other credit unions, derive excessive profits or transfer excessive amounts to reserve.

The exemption does not extend to a company that is of a kind commonly known as a building society and, by reason of the fact that the exemption applies only to interest from members other than companies, it will not extend to interest received by an association of credit unions or by a federation of such associations from member bodies.

Income derived by a credit union other than by way of interest from individual members continues to be assessable e.g. income from the letting of premises or from the lending to non-members of moneys not immediately required for normal operations.

A company that is entitled to the exemption provided by section 23g is not eligible for assessment as a co-operative company.

The exemption provided by section 23g applies as from the commencement of the 1973-74 income year.

Cars available to employees for private use

A long-standing provision of the income tax law, section 26 (e), treats as assessable income the value to a taxpayer of any benefit received in connection with his employment. Section 2 6 a a b was incorporated into the Principal Act to supplement section 26 (e ) in its application to benefits in the form of rights to use employers’ cars for private purposes. The new provision, which was to

operate for 1974-75 and subsequent years of income, was repealed by the Income Tax Assessment Act 1975 without having had any period of effective operation. Section 2 6 a a b laid down methods of calculating, by reference to the purchase price or charges for the leasing of a car made available to an employee or his relative for uses that included private uses, a minimum amount

to be included in the assessable income of the employee in respect of the benefit. In the general run of cases the minimum amount so included in assessable income would have been an amount equal to 12 per cent of the first $6,000 and 24 per cent cf the balance of the purchase price of the car. In any case where the calculated amount exceeded the amount, if any, to be included under section 26 (e ) as the value to the employee of the benefit, section 2 6 a a b would have required the employee to also include in his assessable income the difference

between those two amounts. With the repeal of section 2 6 a a b , the taxation consequences of the receipt of a car benefit will continue as in the past to be governed solely by the terms of section 26 (e).

Employees’ share benefits

Section 2 6 a a c was incorporated into the Principal Act to provide a new basis of assessment of benefits received by employees under share acquisition schemes associated with their employment. In this respect it displaces the operation of

82

section 26 (e) of the Act, which governs the taxability of employment benefits in general and treats as assessable income the value to the employee concerned of the benefit received. The decision to change the basis of assessment was announced in the Treasurer’s Budget speech on 17 September 1974. Section 2 6 a a c applies in relation to acquisitions after that date of rights to acquire

shares and, except for shares acquired in pursuance of rights then in existence, acquisitions of shares after that date. Section 26 (e) continues to govern the taxability of benefits arising from acquisitions of rights or shares before 18 September 1974.

The change in the basis of assessment of share benefits is significant only in relation to schemes which feature an interval between the time when an employee receives a right to acquire shares and the time when he receives the shares themselves or between the time when an employee receives shares

and the time when he becomes entitled to dispose of them if he so desires. As section 26 (e) applied to schemes within the first category (e.g. where an employee is given an option exercisable some years later to acquire shares at a predetermined favourable price or where shares are allotted to a trustee

to be held for transfer to an employee some years later at a predetermined favourable price) questions as to the existence and value of any resultant benefit had to be ascertained as at the time of acquisition of the right. Under section 2 6 a a c a liability for tax will not ordinarily arise unless or until the employee

acquires freely-disposable shares as a consequence of the exercise or operation of the right. The amount, if any, by which the value of the shares at the date of acquisition exceeds the amount outlayed to get them will be included in the employee’s assessable income of the year in which the acquisition occurs. As section 26 (e) applied to schemes within the second category (e.g. where an

employer issues shares direct to an employee subject to a condition that he may not dispose of them on the open market for some years after acquisition) questions as to the existence and value of any resultant benefit had to be ascer­ tained as at the date of acquisition of the shares. Under section 2 6 a a c a liability for tax will not ordinarily arise unless or until the employee has freely-disposable shares at the end of the restriction period. The amount, if any, by which the

value of the shares on the date of expiry of the restrictions on disposal exceeds the amount outlayed to get them will be included in the employee’s assessable income of the year during which the restriction period ends.

Section 2 6 a a c contains provisions imposing liabilities in other circumstances but they are designed to discourage attempts to avoid the basic liabilities imposed by the section and should seldom operate in practice. For example, provision is made for the assessable income of an employee to include any

gain that he may secure from the disposal of a right to acquire a share to an ‘outsider’ (i.e. a person who is not a relative or other ‘associate’ of the taxpayer) or any gain that might be secured by a relative or other associate from the exercise of, or disposal to an outsider of, a right originally acquired by the employee. There are also refinements to avoid double taxation in circumstances where the whole or a part of a gain associated with rights or shares acquired through an employees’ share acquisition scheme would otherwise be assessable under both section 2 6 a a c and some other section of the Act. Where shares or

83

r i g h t s to a c q u ir e s h a r e s a re m a d e a v a il a b le a s e m p l o y m e n t b e n e fits b u t d iv e r te d

b y a n e m p l o y e r to a r e l a ti v e o f h is e m p lo y e e , th e r e la tiv e w ill i n c u r lia b ilitie s

u n d e r s e c t io n 2 6 a a c o n t h e s a m e b a s is a s th e e m p lo y e e w o u ld h a v e if h e h a d

r e c e i v e d th e b e n e f i ts h im s e lf .

Club fees

Section 5 1 a b was incorporated into the Principal Act to make certain kinds of expenditure non-deductible in determining liabilities for tax on income of 1974-75 and subsequent years. One kind of expenditure to which the new provision applies is expenditure to secure or maintain membership of a sporting or social club. Deductions will not be allowable for nomination or annual fees whether the fees relate to full, associate or provisional membership and whether they are paid in respect of the taxpayer himself, an employee of the taxpayer or any other person.

Leisure facilities

Another kind of expenditure to which the new section 5 1 a b applies is expenditure relating to the acquisition or use of property that is a leisure facility as defined in the section. An associated amendment of section 54 of the Act, which also has effect for 1974-75 and subsequent years of income, precludes deductions for depreciation of such property. Section 5 1 a b is concerned with boats. It is

also concerned with areas of land and buildings or other structures used or held for use in connection with holidays, sport, recreation or other leisure-time pursuits. A unit of property within those general descriptions is a leisure facility in relation to a year of income unless it has been used or held for use throughout the year, or throughout a part of the year if the taxpayer owned or had rights to use the unit only during that part of the year, principally for a business purpose within a range specified in the section.

A boat is not a leisure facility in relation to a year of income if throughout the year (or throughout a part of the year in circumstances just described), it is held for sale as trading stock in the ordinary course of a business carried on by the taxpayer or is used or held for use principally for any one or more of the following purposes—being let on hire in the ordinary course of a business of letting boats on hire carried on by the taxpayer; transporting for reward of members of the public or goods in the ordinary course of a business carried on by the taxpayer; or any other purpose in the ordinary course of a business carried on by the taxpayer if he satisfies the Commissioner that the use of such

a boat for that purpose is essential to the efficient conduct of that business.

An area of land or a building or other structure is not a leisure facility in relation to a year of income if, throughout the year (or throughout a part of the year in circumstances described earlier), it is held for sale in the ordinary course of a business of selling such property carried on by the taxpayer or is used or held for use principally for any one or more of the following business purposes— the derivation of income in the nature of rents, lease premiums,

84

licence fees or similar charges; the provision for reward of facilities for leisure­ time pursuits in the ordinary course of a business of providing such facilities; or the provision of facilities for leisure-time pursuits for use principally by employees of the taxpayer (employees who are not members or directors where the taxpayer is a company) or for the care of their children.

Section 5 1 a b prohibits the allowance of a deduction for any loss or outgoing to the extent to which it is incurred by a taxpayer for or in connection with any of the following things—the acquisition or the retention of ownership of, or rights to use, a leisure facility; any obligation associated with ownership of, or with rights to use, a leisure facility; or the use, operation, maintenance or repair of a leisure facility. The Commissioner has authority to relieve from the prohibition such part of the expenditure as he considers reasonable in a case

where the taxpayer owned or had rights to use a leisure facility for the whole of the year of income and during part of the year it was used or held for use principally for the specified kinds of business purposes.

Depreciation of child care facilities The Act also amended sections 54 and 55 of the Principal Act to ensure that the cost of certain plant and facilities installed in child care centres by employers for children of their employees is deductible by way of depreciation

allowances as is corresponding expenditure on plant and facilities in rest rooms and recreation areas provided for employees.

Section 54 defines ‘plant’ for the purposes of depreciation allowances and the definition, as amended, includes specified plumbing fixtures and fittings provided principally for use in the care of children of employees. This amend­ ment makes clear that depreciation allowances are authorized for the cost of

eligible items provided in a child care centre established at or adjacent to a factory or other business premises for the benefit of employees’ children.

The special standard depreciation rate of 33-1/3 per cent per annum applying as a concession under section 55 (2) in respect of certain classes of amenities provided by an employer for his employees is, by the amendments, specified to also apply where amenities of the kinds described are provided for

the care of children of persons employed in the taxpayer’s business. Eligible items include plant and equipment (and associated plumbing fixtures and fittings) used in dining rooms, cafeterias, etc., and fixtures and fittings provided in rest rooms, first aid rooms, recreation rooms and the like as well as clothing cup­ boards, lockers, etc., which are not part of the permanent structure.

Deductions for dependants The Act also amended section 8 2 b of the Principal Act which authorizes the allowance of concessional deductions for the maintenance by a taxpayer of certain specified classes of dependants. The amendment removed, in respect

of the 1974-75 and subsequent income years, the pre-condition for the allowance of the deduction previously imposed by the section that the person being main­ tained by the taxpayer be a ‘resident’ of Australia or of Papua New Guinea. It is to be noted, however, that the requirement that a taxpayer claiming

maintenance deductions be a resident was retained.

85

Dependant Deduction

Spouse of the taxpayer . . . .

Daughter-housekeeper of widow or widower Child less than 16 years—

$

364 364

each other such child . . .

Student, 16-24 years . . .

Invalid relative over 16 years .

Parent or parent-in-law of the taxpayer

one such child . 260

208 260 260 364

Education expenses and expenses of self-education Commencing with the 1974-75 income year, the Act reduced from $400 to $150 a year the statutory maximum deduction authorized by section 82J of the Principal Act for amounts paid as education expenses of a student who is receiving full-time education at a school, college or university or from a tutor. A corresponding reduction was made in the maximum deduction available under

section 8 2 j a a o f t h e Principal Act for expenses of self-education paid by a taxpayer for fees, books and equipment necessarily incurred in undergoing a course of education provided by a school, college, university or other place of education for the purpose o f gaining qualifications for use in carrying on a profession, business or

trade or in the course of employment.

Deductions in respect of housing loan interest The Act also inserted a new Subdivision— Subdivision C of Division 3 of Part III— into the Principal Act to provide an income tax deduction for housing loan interest payments made on or after 1 July 1974.

Broadly stated, the deduction applies to interest paid by a resident taxpayer on loan moneys (including bridging finance) used by the taxpayer to purchase, construct or extend a house, flat or home unit used during the year of income as his or her sole or principal residence in Australia. Interest on a loan that

relates to a holiday flat or cottage does not qualify for the deduction. Interest paid in respect o f a loan used to acquire vacant land is first deductible in respect of the year o f income in which a dwelling erected on the land is first used by the taxpayer as a sole or principal residence.

The amount of the deduction allowable to a taxpayer in respect of home loan interest payments is governed by a ‘net income’ test. For the purposes of this test, the net income of the taxpayer is combined with the net income of his or her spouse. Their combined net income is, in effect, their total income less the

expenses incurred in earning it, other than expenses of a private, domestic or capital nature. Payments received by way of child endowment or domiciliary nursing care benefits are ignored for purposes of the net income calculation. Receipts that are not of an income nature (e.g., a lottery prize) are also disregarded.

86

II At a net income level of $4,000 or less for the year of income, the deduction available to the taxpayer is the whole amount of his or her housing loan interest payments. Where the level of net income is greater than $4,000, the deduction is the amount of the annual housing loan interest payments as reduced by 1 per cent

for each $100 of the excess of the net income over $4,000, i.e., a net income of $6,000 means 80 per cent of interest is deductible, a net income of $9,000 means 50 per cent of interest is deductible, and so on. No deduction is available to a taxpayer whose net income for the year is $14,000 or more.

Under the income tax regulations as amended by Statutory Rules 1974, No. 267, employers are required to make the appropriate reduction for housing loan interest payments of employees in tax instalment deductions from salary or wages where the employee lodges a declaration for the purpose. These new PAYE arrangements came into operation on 1 January 1975.

Life Insurance Companies

Under section 115 of the Principal Act a life assurance company is allowed a deduction from its assessable income of a proportion of ‘calculated liabilities’. For the 1973-74 income year this deduction effectively freed from tax a basic 2 per cent return on policyholder’s funds. In earlier years the proportion was

3 per cent. The basic deduction was varied up or down by reference to formulae which took into account a company’s holdings of Commonwealth and other public securities.

This Act amended section 115 to reduce the basic deduction to 1 per cent of calculated liabilities. The basic deduction continues to be varied in accordance with the formulae referred to above.

This amendment applies as from the commencement of the 1974-75 income year.

Cc-operative Companies

A company that satisfies the criteria laid down in sections 117 and 118 of the Principal Act qualifies for assessment as a co-operative company and as such is entitled, among other concessions, to a deduction in its assessment for so much of its assessable income as is distributed among its shareholders. A

co-operative company is taxed at a concessional rate on so much of its taxable income as does not exceed $10,000.

In former years some credit unions have, by reason of their functions of providing services to their members, been able to qualify as co-operative com­ panies under the income tax law. However, under a new section inserted by this Act— section 23g—credit unions will, as from the 1973-74 income year, be free from tax on interest derived from loans made to their members and will be taxable only in respect of income derived from other sources. This Act

amended section 117 of the Principal Act to provide that a credit union that

87

is eligible for exemption under section 23g is not to be assessed as a co-operative company. The main effect is that dividends paid by a credit union out of income that continues to be assessable will not be deductible in the assessment of tax payable by it on that income.

The amendment to section 117 applies for 1973-74 and subsequent income years.

Capital expenditure on prospecting and mining for minerals other than petroleum

The Act revised the provisions of Division 10 of the Principal Act which govern the allowance of special deductions for capital expenditure incurred in prospecting and mining for minerals (other than oil or natural gas).

With one exception the amendments did not alter the classes of capital expenditure which may qualify for deduction. The exception was the amendment of section 122a of the Principal Act to delete from the scope of allowable capital expenditure, subject to certain transitional provisions, formation and incorpora­

tion expenses of a mining company and capital raising expenses of such a company incurred after 17 September 1974.

Substantial changes were made to the bases on which deductions for eligible capital expenditure are allowable.

Prior to the amendments, capital expenditure covered by Division 10 other than on exploration or prospecting could be deducted at the option of the tax­ payer on any of the following bases—

e annual deductions under section 122d based on the estimated life of the mine; • an outright deduction under section 122e for expenditure, other than on housing and welfare or on the purchase of mining rights or

information, in the year in which it is incurred; • an immediate deduction under section 122g for income appropriated for capital expenditure other than on housing and welfare or on the purchase of mining rights or information; • annual allowances for depreciation of plant; and e deductions under section 122f in instalments over 5 years for

expenditure on housing and welfare.

The amendments withdrew the options to deduct expenditure under sections 122e, 122f and 122g, subject to certain transitional arrangements, in respect of expenditure incurred after 17 September 1974. Expenditure incurred on or before 17 September 1974 or between 18 September 1974 and 30 June 1976 under a contract entered into on or before 17 September 1974 remains eligible

for deduction under sections 122e, 122f and 122c.

The withdrawal of these options means that all allowable capital expenditure, other than exploration expenditure, incurred after 17 September 1974 that is not within the transitional arrangements will be deductible under section 122d on a life-of-mine basis or, in the case of expenditure on plant, as depreciation allowances at the taxpayer’s election.

88

Exploration or prospecting expenditure of a general mining enterprise continues to be immediately deductible under section 122j from the net assessable income derived in the year of incurrence from carrying on a mining business or from associated activities. An amendment to section 122j , however,

provides that any excess expenditure over the net mining income of the year in which it is incurred is to be immediately deductible against the net mining income of the next year (or later years, if necessary). Previously any such excess was deductible on a life-of-mine basis under section 122d. This amend­

ment applies to exploration expenditure incurred in 1974-75 and subsequent income years.

Transport of minerals Amendments were also effected by the Act to Division IOaaa of the Principal Act which authorizes the allowance of special deductions for capital expenditure incurred on a railway, road, pipeline or other facility for transporting minerals,

including oil or natural gas, mined in Australia for the purpose of producing assessable income.

The principal effect of the amendments is to extend from 10 to 20 years the period over which eligible expenditure may be deducted under section 123b. The extended period will generally apply to expenditure incurred after 17 September 1974, subject to certain transitional arrangements. As amended, section

123b effectively retains eligibility for write-off over 10 years of capital expenditure incurred on or before 17 September 1974 and for any capital expenditure incurred between 17 September 1974 and 30 June 1976 under a contract made on or before 17 September 1974. The 10 year period commences with the income year in which the transport facility is first used primarily and principally for a

mineral transport purpose referred to in section 123a.

For eligible expenditure incurred after 17 September 1974 to which the new 20 year period applies, 5 per cent of the expenditure is allowable as a deduction in the first income year in which the transport facility is used for eligible purposes and a further 5 per cent is allowable as a deduction in each of the next 19 years.

A new provision— section 123ba— applies to taxpayers who incurred expenditure on a transport facility on or before 17 September 1974 and who would consequently be eligible to deduct the expenditure over 10 years.

Such taxpayers may elect under section 123ba, in respect of so much of the expenditure as has not been allowed and is not allowable as deductions in assessments prior to the 1974-75 income year (or the 1973-74 income year for some taxpayers adopting substituted accounting periods), to claim deduc­

tions for the balance of the expenditure over a period equal to 20 years less the number of earlier years in which deductions have been allowed or are allowable.

Capital expenditure on prospecting and mining for petroleum The Act also repealed the former Division 10aa of the Principal Act and replaced it with a new division.

8 9

Under the scheme of the previous division the special deductions for capital expenditure incurred in prospecting or mining for petroleum in Australia or Papua New Guinea were allowable from income derived from sales of petroleum (or products of petroleum) produced by the taxpayer in Australia or Papua New Guinea. The effect was to free the proceeds from sales of petroleum from income tax until all of the allowable capital expenditure had been recouped.

New Division IOaa applies to the same range of capital expenditures as the former division with the exception of company formation and capital raising costs which are excluded from the classes of allowable capital expenditure set out in new section 124aa of the Principal Act. Consistent with the previous division, the special deductions authorized by new Division IOaa are allowable

only against net petroleum mining income. Expenditure on petroleum explora­ tion continues to be immediately deductible against petroleum mining income under new section 124ah. Where exploration expenditure incurred in an income year exceeds the net income derived in that year from petroleum the excess

expenditure is deductible from the petroleum income derived in the next succeeding income year or income years in which such income is derived.

The principal distinction between the new Division IOaa and its predecessor is in the basis on which deductions are allowed for capital expenditure incurred in acquiring petroleum prospecting or mining rights or in carrying on petroleum mining operations. Under the former law these deductions were available

immediately against petroleum mining income. Under the new division, these expenditures are deductible under new section 124ad over the estimated life of the oil or natural gas field to which they relate (at a minimum rate of 4 per cent a year on the reducing balance). In relation to capital expenditure on plant,

taxpayers are given the right to elect under section 124ag to claim deductions under the normal depreciation provisions of the Principal Act instead of either having the cost deducted over the estimated life of the petroleum field or, for plant used in exploration, as immediate deductions under section 124ah.

Very broadly, the new Division IOaa has been drafted on the lines of Division 10 of the Principal Act that applies in relation to capital expenditure incurred in carrying on prospecting and mining for general minerals.

The changes effected in the new division apply generally in relation to expenditure incurred after 17 September 1974. However, provisions contained in sections 124ae and 124af of the new division operate to preserve to a taxpayer any entitlements he may have had to accelerated deductions under the former division in respect of capital expenditures incurred on or before 17

September 1974 or incurred after that date and before 1 July 1976 under contracts entered into on or before 17 September 1974.

Rebate for low-income taxpayers with families

This Act inserted into the Principal Act a new section— section 160aa—which provides for the allowance of a rebate where the tax saving to a taxpayer from the deductions allowed to him for the maintenance of dependants and/or for a housekeeper is less than 40 per cent of the amount of those deductions. The

9 0

amount of the rebate allowable is the amount that, when added to the tax saving, at the general rates of tax, from the allowance of those deductions, will bring the total tax saving up to 40 per cent of the amount of those deductions, or up to the amount of the tax otherwise payable if that is less.

Dividends from Papua New Guinea

This Act amended Division 18 of the Principal Act, which provides for the allowance of a credit against the Australian tax payable by a resident of Australia on income derived from sources in Papua New Guinea in respect of the Papua

New Guinea tax on the income. The amendments to these credit provisions were consequential upon the imposition by Papua New Guinea of a dividend with­ holding tax as from 29 August 1972 and the imposition of the surcharge of tax on property income by the Income Tax A ct 1974. The amendments ensure that

credit is allowed for the Papua New Guinea dividend withholding tax, that the credit allowed for the Papua New Guinea tax on dividends cannot exceed the Australian tax payable on them, and that credit for Papua New Guinea tax may be allowed against the surcharge of tax on property income in cases where it

applies to income derived from Papua New Guinea.

Relief from Payment of Tax

The Act also amended section 265 of the Principal Act which empowers the Board constituted under that section to release a taxpayer from the whole or part of his liability for income tax when the exaction of the full amount of tax would entail serious hardship.

Prior to the amendment effected by this Act the Board constituted under section 265 was required to refer to a member of a Taxation Board of Review or to the Chairman of a Valuation Board for report any application seeking relief from a liability of $1,000 or more. This amount has been increased by this Act to

$ 2 ,000 .

In addition the Commissioner is now authorized to exercise powers of the Board in any case in which relief is sought from a liability of S200 or less. Formerly, the Commissioner’s authority did not extend to cases in which the liability exceeded $100.

Incom e Tax (Bearer Debentures) A ct 1974

This Act amended the Income Tax (Bearer Debentures) Act 1971 which imposes tax on interest paid by a company on bearer debentures where the names and addresses of the holders of the debentures are not provided to the Commissioner of Taxation by the company concerned. The rate of the tax was increased by this Act in relation to interest paid or credit on or after 6 December 1974. from

approximately 39 per cent to 55 per cent.

13941.75— 4

91

Income Tax Assessment Act 1975

Papua New Guinea

The Act amended the Principal Act so that, subject to certain exceptions, the Australian income tax law will apply in relation to income from sources in, and residents of, independent Papua New Guinea in the same general way as it applies in relation to other countries. Sections of the Principal Act which provided special

treatment for certain categories of income and expenditure related to activities conducted either in Australia or in Papua New Guinea, but not in other countries, were generally made inapplicable by the Act so far as concerns income and expenditure related to activities conducted in independent Papua New Guinea.

An important exception to this ‘separate country’ treatment lies in the double tax relief arrangements provided by the Act for income derived from sources in independent Papua New Guinea by residents of Australia. Relief from double taxation of Papua New Guinea source income, other than salary and wage income, continues to be provided by way of allowance of a credit, under Division 18 of Part III of the Act, for Papua New Guinea tax against the Australian tax on the income, but under section 23 (qa) salary and wage income is to be exempted from Australian tax as from independence day if it is not exempt from Papua New Guinea tax. The Act also gave effect in Australia—by section 23 (kd )— to

an arrangement reached with Papua New Guinea whereby pension income derived during the 1973-74 income year and subsequent income years is to be taxed only by the country of residence of the recipient. The rate of withholding tax on divi­

dends flowing from Australia to Papua New Guinea remained unchanged at 15 per cent of the gross amount of the dividend. Subject to transitional provisions to take account of commitments that may have been undertaken by taxpayers against the background of the law as it previously stood, the provisions have effect generally, as from Papua New Guinea independence day.

Exemption of Employment Security Scheme payments The Act also introduced a new section— section 23aaa—which provides income tax exemption for compensation and certain other payments, made under the employment security scheme now authorized by the Papua New Guinea (Staffing Assistance) Act 1973, to former overseas officers of the Papua New Guinea Public Service and members of the Australian Staffing Assistance Group on ter­ mination of their employment in Papua New Guinea. The section applies in respect of income of the 1972-73 and subsequent income years.

Taxation of allowances paid Under the N.E.A.T. system The Act amended section 23 (z) and section 221a of the Principal Act to remove any doubt that allowances paid under the National Employment and Training (N.E.A.T.) System are subject to tax and tax instalment deductions in the same way as other similar periodical payments and allowances.

Cars available to employees for private use Section 26aab was enacted by the Income Tax Assessment Act (No. 2) 1974 to supplement section 26 (e )— the provision of the Principal Act that governs the

9 2

taxability of employment benefits in general— in its application to benefits in the form of rights to use employers’ cars for private purposes. As explained in the notes relating to the 1974 Act, the new provision was repealed in 1975 without having had any period of effective operation and the receipt of a car benefit will

continue as in the past to be governed solely by the terms of section 26 (e).

Special depreciation on manufacturing plant and plant used in primary production New section 57ac of the Principal Act inserted by this Act authorizes taxpayers to claim deductions for depreciation in respect of certain plant that is used in manufacturing or primary production at twice the rates of depreciation normally provided under the depreciation provisions of the Principal Act for plant of the

kind.

Eligible plant is plant that was first used or installed ready for use on or after 1 July 1974 and before 1 July 1975 and is of a kind that would have qualified for either the investment allowance for manufacturing plant under section 62aa of the Principal Act or for the primary producers’ investment allowance under

section 62ab had the investment allowances not been terminated by amendments contained in the Income Tax Assessment Act (No. 5) 1973 in relation to expendi­ ture incurred after 21 August 1973.

Section 57 ac allows taxpayers to elect, if they wish, to claim depreciation on eligible plant at standard rates rather than at double rates. If no election is made, the double rates apply for the 1974-75 income year and will continue to apply in subsequent years until the cost of qualifying items of plant is fully written off. Taxpayers retain the right to claim depreciation on eligible plant under either

the prime cost or diminishing value method of depreciation.

To qualify for double rates of depreciation farming plant must meet the conditions of eligibility set in section 62ab and, hence, must be new plant that is used wholly and exclusively in a business of primary production. Buildings, fences, dams, earth tanks, bores, wells and other structural improvements and road vehicles of a kind ordinarily used for transporting persons or goods, which are outside the scope of s e c t i o n 6 2 a b , a r e i n e l i g i b l e f o r a c c e l e r a t e d d e p r e c i a t i o n

allowances.

Eligible plant by reference to section 62aa of t h e Principal Act includes new plant that is used in the actual process of manufacturing or is inseparably associ­ ated with such a process as, for example, plant u s e d in the d i s p o s a l o f m a n u f a c ­ turing wastes. Plant used in the mining industry in the concentration of a metal

or in processing after concentration is also eligible for double d e p r e c i a t i o n w h e r e the' taxpayer elects not to claim deductions f o r the p l a n t u n d e r t h e s p e c i a l p r o ­ visions contained in Divisions 10 and 10aa of the Principal Act.

Ineligible plant includes road vehicles used for transporting passengers or delivering goods, office machines and equipment, household furnishings and appli­ ances and containers, etc., in which goods are delivered.

In any case where expenditure on plant first used or installed ready for use between 1 July 1974 and 30 June 1975 qualifies for the investment allowances under transitional provisions contained in section 6 2 a a (14) or section 6 2 a b (10), the plant will be ineligible for accelerated rates of depreciation.

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Exemption from Withholding Tax: A.l.D.C.

The Act introduced a new section— section 128ea— and amended other Sections of the Principal Act to provide an exemption from Australian tax for interest paid to non-residents of Australia on or after 1 July 1973 by the Australian Industry Development Corporation in respect of loans raised by the Corporation

outside Australia. Interest paid on loans which satisfy the requirements of section 128ea is made exempt from withholding tax and tax by assessment.

Collection of company tax by instalments

In the notes on amendments effected by the Income Tax Assessment A ct 1974, explanations have been given of the development in three stages of the planned system for collecting company tax by quarterly payments. That Act effected amendments of the Principal Act to facilitate the operation of the second stage of the planned system in the 1974-75 financial year and the final stage in 1975-76 and subsequent years. As explained in those notes, the amended provisions as they applied to the second stage (which contemplated the collection from a company of one instalment of tax in November 1974 and a second in February

1975 for crediting later in the 1974-75 financial year against tax payable on its 1973-74 income) were modified by the Income Tax Assessment Act 1975 to relieve companies from liability to pay instalments of tax in February 1975. The modification did not in any way disturb provisions governing the final stage of the planned system, the features of which have been explained in the notes on amendments effected by the 1974 Act.

P roposed Legislation

Capital Gains Tax In a press statement dated 29 January 1975 the Prime Minister announced the Government’s decision not to proceed with the capital gains tax which it had been announced in the 1974-75 Budget measures would apply to disposals of

property on or after 19 August 1974.

Health Insurance Levy The following Bills were introduced into the House of Representatives in July 1974:

Health Insurance Levy Assessment Bill 1974, Health Insurance Levy Bill 1974; and Income Tax (International Agreements) Bill 1974.

These Bills related to the proposed imposition of a health insurance levy of 1.35 per cent of the taxable incomes— as determined for income tax purposes— of people residing in Australia to help finance the Medibank scheme. The collection

of the levy was to be integrated with the collection of income tax.

The Bills were passed by the House of Representatives in July 1974 but failed to pass the Senate in August 1974. The Bills were again introduced into, and passed by, the House of Representatives in December 1974 but the Senate again rejected the Bills.

9 4

Statistics

REVENUE

The revenue obtained from income tax in the eleven years from 1964-65 to 1974-75 is shown in the table below which also expresses these collections as a percentage of total collections by the Taxation Office in each year.

TABLE 1

INCOME TAX COLLECTIONS Financial Years 1964 -65 to 1974-75

Financial year Income tax

collections

Percentage of total revenue collected by Commissioner

of Taxation

1964-65 .........................................

$

2,295,606,730

%

79.6

1965-66 .......................................... 2,549,695,105 81.0

1966-67 ......................................... 2,729,832,132 81.4

1967-68 ......................................... 3,036,695,233 81.4

1968-69 ......................................... 3,418,767,614 81.0

1969-70 ......................................... 4,055,522,787 81.7

1970-71 .......................................... 4,621,800,130 82.5

1971-72 ......................................... 5,303,717,302 86.6

1972-73 .......................................... 5,723,369,458 86.9

1973-74 .......................................... 7,523,426,325 87.2

1974-75 .......................................... 10,160,944,150 88.4

STATISTICS COMPILED FROM TAXPAYERS’ RETURNS Tables 2 to 6 which follow summarize the main statistical aggregates for which more detailed classifications are published in ‘Taxation Statistics 1971-72’, ‘Taxation Statistics 1972-73’ and ‘Taxation Statistics 1973-74’, the supplements to the

Fifty-first, Fifty-second and Fifty-third Reports. Explanatory notes on the statistical items and the basis of their compilation are given in the relevant issues of Taxation Statistics. The detailed statistics presented there indicate the range of items and classifications which have been used in the tabulation of information extracted from returns.

The statistics shown in Tables 7 and 8 cover all 1973-74 income year original assessments issued during the period 1 July 1974 to 30 June 1975. The statistics shown in Tables 9 and 10 were compiled from certain assessments issued by the computer-assisted assessing process during the period 1 July 1974 to 28 February

1975. Table 9 gives details of assessments of taxpayers with no business income while Table 10 relates to taxpayers with business (other than primary production) income from partnerships or trusts.

9 5

TABLE 2

INDIVIDUALS—TAXABLE Income Years 1970-71 to 1972-73

Item

1970-71 income year 1971-72 income year

1972-73 income year

Number of taxpayers— Males . . . . . . . . 3,588,840 3,625,935 3,316,837

Females . . . . . . . 1,981,881 2,065,496 1,759,415

Total . . . . . . . 5,570,721 5,691,431 5,076,252

Taxpayers with primary production income . 288,591 330,511 326,500

Stock at end of y e a r f .......................................... $'000 174,471 168,309 181,437

Stock at beginning of yearf . . . . $’000 163,159 154,626 158,295

Total business income . . . . . $’000 2,479,558 2,570,682 3,020,531

Salaries and wages paid . . . . . $’000 441,752 448,783 493,826

Depreciable assets purchased during year . . S’000 239,143 228,227 292,736

Depreciable assets disposed of during year . . $'000 57,532 62,363 65,323

Depreciation allowed . . . . . $'000 174,780 171,855 173,116

Expenditure, sections 75 and 76 . . . $'000 9,217 8,231 12,408

Investment allowance . . . . . $'000 5,440 3,880 6,005

Profit (or lo s s) from sale of real estate, shares, etc. $'000 3 4 6 ,3 8 9 8,582

Net business income (or lo ss) . . . . $'000 891,579 973,508 1,232,808

Salary and wages in assessable income . . $'000 16,451,308 18,599,748 19,092,446

Net partnership or trust income . . . $'000 1,998,264 2,273,135 2,958,983

Dividends in assessable income . . . . S’ooo (a) 387,827 380,276

Total interest in assessable income . . . $'000 ( a ) 491,714 541,264

Exempt income . . . . . . $'000 6,402 8,324 8,353

Net i n c o m e .............................................................. $'000 20,304,548f 22,827,315 24,335,377

Deductions — Rates and land taxes on non-income producing p r o p e r t y ......................................... .......... . $'000 249,864 290,507 (c)

Total deductions (excluding sections 75 and 76) $'000 3,512,375 3,885,891 4,073,292 Concessional deductions— Spouses, parents, parents-in-law, housekeepers and daughter-housekeepers . . . $’000 413,153 424,841 451,874

Children under 16 years . . . . S ’o o o 596,455 603,899 719,770

Students and invalid relatives . . . . $’000 44,274 46,453 56,807

Number of spouses, parents, parents-in-law, housekeepers, daughter-housekeepers and invalid relatives . . . . . 1,337,363 1,371,808 («)

Number of spouses, parents, parents-in-law, housekeepers and daughter-housekeepers . . . . . («) 1,370,504 1,255,114

Number of first children . . . . 1,615,987 1,644,718 1,544,684

Number of students . . . . . 225,666 231,739 (a)

Number of students and invalid relatives . . ( a ) 233,043 229,718

Number of other children . . . . 1,693,891 1,694,409 1,546,670

Total deductions for dependants and house­ keepers . . . . . . . $’000 1,053,882 1,075,192 1,228,456

Net medical expenses . . . . . $’000 432,904 455,920 448,177

Payments to medical and hospital benefits funds $’000 216,262 274,890 ( a )

Life insurance and superannuation payments . $’000 ( a ) 925,270 945,549

Education expenses . . . . . S’000 280,521 326,349 324,504

Medical and hospital expenses recouped . . S ’o o o 212,732 ( a ) 303,399

Taxable income— Salary and wages . . . . . . $ ’00 0 13,397,402 15,190,854 15,019,154

Other . . . . . . . . $ ’0 0 0 3,409,061 3.750,570 5,242,931

Total taxable income . . . . $ ’00 0 16,806,463t 18,941,425 20,262,085

Rebates—total allowed . . . . . $ ’0 0 0 ( a ) ( a ) 4,367

Net tax assessed . . . . . . $ ’00 0 2,934,618 3,583,725 3,681,326

t Includes p artn ers' and beneficiaries' shares o f incom e derived or deductions allow ed to partnerships and trusts, t S e e definition in supplem ent ‘T axation Statistics 1972-73’, page 13. (a) N o t tabulated.

9 6

TABLE 3

INDIVIDUALS—TAXABLE Income Years 1971-72 and 1972-73

G r a d e o f n e t i n c o m e

i n c o m e y e a r 1 9 7 1 - 7 2 I n c o m e y e a r 1 9 7 2 - 7 3

N u m b e r o f

t a x p a y e r s

N e t

i n c o m e

N e t t a x

a s s e s s e d

N u m b e r o f

t a x p a y e r s

N e t i n c o m e

N e t t a x

a s s e s s e d

$ s $ '0 0 0 $ ’0 0 0 $ ’0 0 0 $ ’0 0 0

U n d e r 2 , 0 0 0 . . 1 ,2 4 5 ,0 5 2 1 ,5 6 2 ,2 0 7 8 9 ,1 4 0 5 8 1 ,1 6 6 9 1 1 ,1 4 3 5 1 ,3 6 5

2 , 0 0 0 - 2 , 9 9 9 . . 1 ,0 2 2 ,5 2 8 2 ,5 6 1 ,9 8 6 2 4 8 ,7 8 7 8 4 2 ,8 2 2 2 ,1 2 0 ,3 1 9 1 7 8 ,6 8 8

3 , 0 0 0 - 3 ,9 9 9 . . 1 ,0 5 8 ,3 6 9 3 ,6 9 6 ,8 9 3 4 3 6 ,9 2 8 9 5 4 ,6 0 5 3 , 3 4 2 ,3 6 5 3 4 9 ,2 9 0

4 , 0 0 0 - 4 , 9 9 9 . . 8 9 8 ,3 1 8 4 ,0 2 0 ,0 2 7 5 4 2 ,0 8 8 8 8 3 ,5 3 4 3 , 9 6 3 ,7 8 6 4 6 7 ,8 6 7

5 , 0 0 0 - 5 ,9 9 9 . . 5 7 6 ,1 4 1 3 ,1 4 2 ,9 3 0 4 8 0 ,2 2 6 6 6 5 ,3 8 2 3 , 6 3 6 ,4 5 2 4 8 4 ,3 1 7

6 , 0 0 0 - 9 , 9 9 9 . . 7 1 6 ,0 7 5 5 ,2 5 4 ,5 1 3 9 6 9 ,9 8 7 9 0 5 ,6 8 9 6 , 6 7 1 ,7 6 5 1 ,0 8 7 ,7 0 9

1 0 ,0 0 0 - 1 9 , 9 9 9 . . 1 5 3 ,8 4 5 1 ,9 6 8 ,7 8 2 5 3 2 ,9 4 5 2 0 9 ,9 7 7 2 , 7 0 8 ,3 3 4 6 5 1 ,6 6 7

2 0 , 0 0 0 - 2 9 , 9 9 9 . . 1 5 ,2 3 7 3 5 9 ,9 6 7 1 4 6 ,4 5 6 2 3 ,5 3 8 5 5 7 ,3 6 0 2 0 4 ,2 3 8

3 0 , 0 0 0 - 9 9 , 9 9 9 . . 5 ,7 1 2 2 3 5 ,7 2 5 1 2 2 ,1 9 0 9 ,3 0 6 3 8 6 ,3 1 9 1 8 3 ,8 1 1

1 0 0 ,0 0 0 a n d o v e r . . 1 5 4 2 4 ,2 8 4 1 4 ,9 7 8 2 3 3 3 7 ,5 3 4 2 2 ,3 7 5

T o t a l . . . 5 ,6 9 1 ,4 3 1 2 2 ,8 2 7 ,3 1 5 3 , 5 8 3 .7 2 5 5 ,0 7 6 ,2 5 2 2 4 ,3 3 5 ,3 7 7 3 ,6 8 1 ,3 2 6

TABLE 4

PARTNERSHIPS AND TRUSTS Income Years 1970-71 to 1972-73

Item

Income year 1970-71

Income year 1971-72

Income year 1972-73

PARTNERSHIPS

Number o f partnerships . . . . . . . 399,434 412,573 429,876

Num ber of partners . . . . . . 927,029 957,341 1,008,060

Num ber of family partnerships . . . . 340,963 (a) («1

Stock at end o f year . . . . . S'000 615,693 663,047 820,775

Stock at beginning of year . . . . S’ooo 538,047 596,083 703,1 14

T otal business income . . . . . S'ooo 5,970,244 6,825,126 8,210,263

Salaries and wages paid . " . . . . S’ooo 1,203,061 1,335,840 1,528,277

Depreciable assets purchased during year . . $’000 578,231 633,504 838,914

Depreciable assets disposed of during year . . S'OOO 125,570 140,339 182,370

Depreciation allowed . . . . . S'OOO 404,207 408,884 442,412

Expenditure, sections 75 and 76 . . . S'OOO 33,815 32,767 46,919

Investment allowance . . . . . S’ooo 17,056 20,757 31,339

Profit on sale of real estate, shares, etc. . . S’OOO (a) 126 9,197

N et business income (or loss) . . . . S’ooo 1,714,897 2,050,610 2,757,895

Dividends in assessable income . . . . sooo (a) 7,246 8.327

Total interest in assessable income . . . sooo ia ) 74,759 84,248

Exempt income . . . . . . S'OOO 420 2.312 2,174

Net income* . . . . . . . S’OOO 1,959,033 2,337,831 3,086,944

TRUSTS

Number of trusts . . . . . . . . 107,685 113,422 117,616

Num ber of beneficiaries . . . . . 177,171 176,141 185.332

Stock at end o f year . . . . . S'000 10,787 14,220 21,578

Stock at beginning of year . . . . sooo 9,189 11,309 11,298

Total business income . . . . . S'000 79,016 91,688 136,736

Salaries and wages paid . . . . . sooo 17,242 21,588 27,824

Depreciable assets purchased during year . . S'000 5,134 7,230 17,263

Depreciable assets disposed of during year . . S'OOO 1,870 1,882 2,529

Depreciation allowed . . . . . sooo 5,134 5,098 6,376

Expenditure, sections 75 and 76 . . . sooo 525 535 776

Investment allowance . . . . . S’OOO 188 229 373

Profit on sale o f real estate, shares, etc. . . sooo (a) 327 1,771

N et business income (or loss) . . . . S'000 17,919 18,767 39,990

Dividends in assessable income . . . . S'000 (a) 93,958 108,921

Total interest in assessable income . . . sooo (a) ■ 89,169 103,887

Exempt income . . . . . . S'000 1,817 2,915 2,655

N et income* . . . . . . . S'000 215,090 236.717 311,541

(a) N o t tabulated.

* T otal n et incom e adjusted by subtraction o f loti.

9 7

TABLE 5

COMPANIES*—RESIDENT AND NON-RESIDENT—TAXABLE Income Years 1970-71 to 1972-73

N u m b er o f com panies T axable incom e .

N et tax —■ N orm al . .

D ivision 7 f . .

Exem pt incom e— E xem pt dividends O th er exem pt incom e

A m ounts subject to rebate— G overnm ent loan interest, section 160ab| D ividends— Section 4 6 f . . .

E x p o rt m ark et developm ent expenditure T o tal interest included in assessable incom e D ividends—

Included in assessable incom e P a i d ..................................................................;

S u p eran n u atio n — T o tal contributions ! D eductions— T o tal interest allow ed . . . .

S u p eran n u atio n — N et deduction allow ed Investm ent allow ance . . . .

E xpenditure, sections 75 an d 76f . .

Se= n ° = l73' 7 ^ d l B’ 7 7 c· 77d· 7sW (6 ), 78(I)(c), 80, 88 an d 1 1 5 ft . .

D epreciable assets— D epreciated \ P urchased during year D isposed o f during ye* D epreciation allow ed . .

D epreciated value— E n d o f year T ra d in g stock— O n h an d at beginning o f year

O n h an d at end o f year .

epreciated value— B eginning o f year

$’000

$’000 $’000

S’000 $’000

$’000 $’000 $’000 S’000

S’000 $’000 S’000

S’000 $’000 S’000 S’000

S’000 S’000

$’000 S’000 S’000 S’000 S’000

$’000 $’000

Incom e y ear 1970-71

P rivate Public T o tal

83,116 1,136,691

10,857

2,843,631

93,973 3,980,322

405,081 5,141

997,447 1,402.529 5,141

1,114 2,392

39,139 206,624

40,253 209,016

1,118 127,910 5,784 104,467

135,543 674,801 37,885 1,543,572

136,661 802,711 43,670 1,648,039

131,893 447,423 46,821

689,798 1,083,725 136,015

821,691 1,531,147 182,836

189,558 45,533 10,519 2,371

1,924

1,068,938 135,199 64,026 2,854

3,551

1,258,497 180,732 74,545 5,225

5,475

32,746 202,440 235,186

1,000,520 392,187 87,215 195,844 1,109,647

4,554,576 1,355,039 203,488 784,629 4,921,500

5,555,096 1,747,226 290,702 980,472 6,031,148

1,519,178 1,688.521 4,051,436 4,519,807

5,570,616 6,208,329

In co m e year 1971-72

P rivate

87,151 1,228,677

435,875 5,792

1.856 1,870

627

143,797 7,505 123,226

147,015 475,635 58,727

218,338 57,529 7,977 2,462

1.857

35,769

1.072,089 394,576 96,934 206,653 1,163,078

1,668,013 1,892,021

Public

10,491

3,119,436

1,054,666

70,136 248,074

135,792 835,936 28,468 1,846,369

854,903 1,182,624 155,824

1,291,960 152,278 55,780 3,424

3,713

238,207

4,829,889 1,405,252 252,156 853,921 5,129,065

4,264,679 4,620,702

Incom e y ea r 1972-73

T o tal P rivate Public T o tal

97,642 4,348,113

89,982 1,495,148

10,661

3,688,170

100,643 5,183,319

1,490,541 5,792

602,254 (a)

1,306,646 (a) 1,908,900 (a)

71,992 249,944

1,967 3,614

104,392 291,012

106,539 294,446

136,420 979,733 35,973 1,969,596

770

148,177 8,365 147,276

152,907 870,476 37,027 2,081,523

153,907 1,018,653 45,392 2,228,799

1,001,919 1,658,259 214,551

151,434 491,401 71,815

882,833 1,333,052 175,638

1,034,267 1,824,453 247,453

1,510,298 209,807 63,758 5,886

5,570

267,497 70,139 14,591 3,974

(a)

1,492,909 172,502 68,691 4,357

(a)

1,760,406 242,641 83,210 8,331

(a)

273,976 54,859 252,633 307,492

5,901,978 1,799,829 349,090 1,060,574

6,292,143

1,118,871 445,797 112,510 215,661 1,236,497

4,917,233 1,460,677 265,592 896,774 5,215,544

6,036,104 1,906,474 378,102 1,112,435

6,452,041

5,932,692 6,512,723 1,916,149 2,276,423

4,531,811 4,783,710 6,447,960 7,060,133

t Refer to Incom e Tax Asses; t Also includes section 78(

(a) N ot available.

isment A ct. (l)(a ) fo r the 1972-73 incom e year.

TABLE No. 8 (a) TAXABLE INDIVIDUALS INCOME YEAR 1973-74 Assessments Issued 1 July 1974 to 30 June 1975

G r a d e o f t a x a b l e i n c o m e

N e w S o u t h W a l e s

South A u s t r a l i a

Western Australia Tasmania Australian Capital

Territory

Northern Territory Australia

$ $

Under 1,200 1.200- 1,399 1.400- 1,599 1.600- 1,799

1.800- 1,999 2.000- 2,399 2.400- 2,799 2.800- 3,199

3.200- 3,599 3.600- 3,999 4.000- 4,799 4.800- 5,599 5.60.0- 6,399 6.400- 7,199 7.200- 7,999 8.000- 8,799 8.800- 9,999 10.000- 11,999 12.000- 15,999 16.000- 19,999 20.000- 39,999 40,000 and over

Total .

NUM BER OF TAXPAYERS

41,561 48,055 47,780 48.054

52,510 121.613 119,471 127,873 140.827

156,488 300,840 242,249

176,537 119,659 77,156 49,042

42,794 35,171 27,945 10,577

10,301 1,457

1,997,960

31,661 38,616 40,400 40,021 43,869 96.999 100,331 109,099 120,300 126,733 239,711

193,135 134,076 86,014 54,172

34,779 31.999 26,994 21,845

9,051 9,436 1,602

17,626 20,729 21,096 22,231

23,957 52,382 51,625 54,419

57,861 60,689 111,751 86,098

56,544 36,284 23,389 15,003

13,950 12,480 10,381 4,297

4,612 680

12,146 13,747 14,276 14,584

15,568 34,321 35,229 39,063 43,483 45,040

83,812 64,250 42,498 24,886

15,300 9,337 8,887 8,219

7,023 2,909 2,798 368

10,607 12,214 12,518 13,044

14,007 30.972 30,056 32,222 35,371 35,990 64,389 50,054

35,325 22.972 15,220 10,293

9,879 9,268 8,409 3,164 2,744

321

3,673 4,131 4,277 4.186

4,729 10,795 10,821 12,220 13,526 13,785 24,597

17,838 11,386 7.186 4,519

2,774 2,590 2,135 1,782

705 737 94

1,332 1,429 1,353 1,420 1,402 3,074 3,095 3,470 3,590 4,125 9,257 8,861 7,252 5,777 4,379 3,565 4,168 3,697 2,146

715 402 35

706 837 836 794 825 1,549 1,669 1,666 1,639 1,775 3,513 3,164 2,615

1,993 1,379 947 888

582 295 59 49

7

119,312 139,758 142,536 144,334

156,867 351,705 352,297 380,032 416,597 444.625 837,870 665,649 466,233

304 771 195,514 125,740 115,155

98,546 79,826 31,477 31,079

4,564

158,486 74,544 27,787 5,604,487

m ania

A u s t r a l i a n N o r t h e r n

C a p i t a l

T e r r i t o r y

T e r r i t o r y A u s t r a l i a

4,864 6,492 7,713 8,449 10,681 28,161

33,749 44,251 55,335 62,915 130,388 111,014

81,648 58,334 40,869 27,559

28,615 27,215 28,338 13,900

20,789 5,392

836,672

I, 674

2,139 2,281 2,728 3,008

7,572 9,079 11,893 13,913

17,857 46,656 53,617 51,059

46,567 39,491 35,675 47,053 47,820

34,429 14,603 II, 410

2,109

502,635

1,213 1,628 1,850 1,961 2,224 4,699

5.894 6,680 7,425

8,858 20,141 21,180 19,884

17,081 13,098 9.895 10,226

7,829 4,715 1,209 1,402

490

169,582

158,958 220,129 256,796 293,040 353,515 910,390 1,083,308 1,349,627

1,676,971 1,994 716 4,364,438 4,108,169

3,319,105 2,457,728 1,760,058 1,250,469

1,273,503 1,259,727 1,263,247 630,751

886,034 282,046

31,152,724

TABLE No. 8 (c) TAXABLE INDIVIDUALS INCOME YEAR 1973 74 Assessments Issued 1 July 1974 to 30 June 1975

G r a d e o f t a x a b l e i n c o m e

N e w S o u t h W a l e s

V i c t o r i a Q u e e n s l a n d

South A u s t r a l i a

W e s t e r n A u s t r a l i a T a s m a n i a

$ $

U nder 1,200 1,200 1,299 1,400- 1,599 1,600 1,799

1,800- 1,999 2,000- 2,299 2,400- 2,799 2,800- 2,199

3,200- 2,599 2,600 2,999 4,000 4,799 4,800 5,599 5,600 6,299 6,400 7,199 7,200 7,999 8,000 8.799 8,800 9,999 10,000 1 1,999 12,000 15,999 16,000- 19,999 20,000 29,999 40,000 and over

T o t a l

T A X A B L E I N C O M E ( $ '0 0 0 )

45.576 62,423 71,668 81,675

99,971 266,932 310,699 384,055 479,323

595,265 1.320,418 1.255,555 1,055,241

810,456 584.185 410,451 399,638

382,338 381,106 187,523 265,901

83,792

34,595 50,209 60,613 68,024 83,500 213,490 261,092 327,653 409,400 481,902 1,052.494 1,000,530

800,614 582,220 410,072 291,204 299,065 293,422 297,823

160,489 244,847 96,961

19,439 26,949 31,668 37,809

45,590 115,127 134,293 163,421

196,871 230,644 490,535 445,61 1

337,691 245,756 177,087 125.631

130,399 135,713 141,991 76,298 I 19,599

37,050

9,534,192 7,520,420 3,465,173

13,177 11,632

17,872 15,877

21,422 18,786

24,802 22,177

29,634 26,673

75,504 68.044

91,695 78,152

117,346 96,779

147,910 120,404

171,231 136,755

367,816 282,410

332,590 259,304

253,675 211,055

168,341 1 55,486

1 15,778 1 15,245

78.189 86,229

83,082 92,433

89,424 100,863

96.021 115,856

51,528 55,834

72,454 69,881

21,570 18.901

2,441,060 2,158,776

4,040 5,370 6,422 7,121 9,006 23,741 28,164

36,726 46,013 52,387 107,913

92,325 67,953 48,647 34,228

23.221 24,203 23.222 24,382

12,508 19,038 5,152

701,782

A u s t r a l i a n N o r t h e r n

C a p i t a l T e r r i t o r y

T e r r i t o r y

A u s t r a l i a

1,476 1.858 2,028 2,412 2,668 6,763 8,058 10,412 12,221 15.684 40.685 46,009 43,451 39,196 33,210 29,883 39,036 40,101 29,160 12,598

9,979 2,009

791 1,089 1,255 1,351 1,565 3,408 4,339

5,000 5,580 6,756 15.449 16,440 15,650 13,509 10.450

7,940 8.287 6.287 4,029

1,041 1,249 474

130,725 181,648 213,865 245,370 298,607 773,007 916,492 1,141,392 1.417,721 1,690,622 3,677,720 3.448,364 2,785,529 2,063,612 1,480,255 1,052,749 1,076,144 1,071,370 1,090,369

557,818 802,948 265,910

428,895 131,939 26,382,238

TABLE No. 8 (d) TAXABLE INDIVIDUALS INCOME YEAR 1973-74 Assessments Issued 1 July 1974 to 30 June 1975

Grade of taxable income New South Wales

Victoria Queensland South Australia Western

Australia Tasmania Australian Capital Territory

Northern Territory Australia

$ $

U n d e r 1 ,2 0 0

1 . 2 0 0 - 1 ,3 9 9

1 . 4 0 0 - 1 ,5 9 9

1 . 6 0 0 - 1 ,7 9 9

1 . 8 0 0 - 1 ,9 9 9

2 . 0 0 0 - 2 ,3 9 9

2 . 4 0 0 - 2 ,7 9 9

2 . 8 0 0 - 3 ,1 9 9

3 . 2 0 0 - 3 ,5 9 9

3 . 6 0 0 - 3 ,9 9 9

4 . 0 0 0 - 4 ,7 9 9

4 . 8 0 0 - 5 ,5 9 9

5 . 6 0 0 - 6 ,3 9 9

6 . 4 0 0 - 7 ,1 9 9

7 . 2 0 0 - 7 ,9 9 9

8 . 0 0 0 - 8 ,7 9 9

8 . 8 0 0 - 9 ,9 9 9

1 0 . 0 0 0 - 1 1 ,9 9 9

1 2 . 0 0 0 - 1 5 ,9 9 9

1 6 . 0 0 0 - 1 9 ,9 9 9

2 0 . 0 0 0 - 3 9 ,9 9 9

4 0 ,0 0 0 a n d o v e r

Total .

NET TAX ($’000)

1,720 3,468 4.582 5,865

7,497 21.690 30,980 44,307 62,429

86,143 216,636 234,792 218,643

182,341 140,602 104,422 107,624

111,109 124,160 70,581 122,197

47,559

1,336 2,808 3,910 4,908

6,305 17,729 26,104 37,687

53 222 69.572 172,423 186,698 165,403 130,519

98,315 73,906 80,526 85,439

97,270 61,060 113,611 55,618

725 1,502 2,028 2,717 3,478 9,695 13,553 18,894 25,618

33,236 80,198 82,785 69,461 54,854 42,122

31,521 34,718 38,831 45,056 28,309

54,843 20,795

507 992 1,366 1,777 2,211 6,206 9,117 13,491

19,180 24,624 59,906 61,560 51,782 37,046 27,002

19,085 21,238 24,337 28,900

18,471 32,724 12,196

438 883 1,202 1,597 2,027 5,724 7,882 11,233

15,707 19,722 46,128 48,116 43,253 34,329 27,010 21,180 23,664 27,166 32,588

18,678 30.552 10,689

150 298 411 511 668 1,962 2,818 4,236

5,989 7,553 17,635 17,159 13,976 10,846

8,155 5,836 6,443 6,713 7,967 4,659

8,798 2,920

55 103 130 174 209 594 832 1,228 1,614 2,286

6,735 8,683 9,106 8,935 8,135 7,777 10,854 12,163 10,080

5,000 4,616 1,148

30 4,962

61 10,117

81 13,711

98 17,646

125 22,519

310 63,910

457 91,743

595 131,670

741 184,500

986 244,122

2,556 602,219

3,101 642,894

3,276 574,900

3,072 461,942

2,557 353,899

2,066 265,790

2,289 287,357

1,891 307,649

1.346 347,368

39) 207,156

573 367,914

278 151,204

135,702 100,457 26,888 5,355,190

P roperty deductions N et

incom e

Taxable incom e R ebates

T ax instalm ent deductions presented

N um ber! A m ount w ith $’000 $’000 $’000

A m o u n t $’000 N u m b er with

A m ount $’000

7,576 3,506

11,835 5,307 9,556 5,049

9,454 5,168

9,540 5,531

8,450 5,206

7,143 4,644

5,442 3,728

4,199 3,037

5,308 4,137

3,671 3,159

1,961 1,828

866 877

85,001 51,177

46,126 28,353

4,077 2,328

1,099 584

602,049 1,281,854' 2,007,7821 2,796,399

3,178,821 3,005,048 2,359,112 1,655,834

1,124,080 1,229,090 734,264 347,853

148,427

20,470,6! 3

564,943 1,182,958 1,836,486 2,464,203 2,680,791 2,479,511

1,922,261 1,338,331 904,183 987,637

594,626 289,859 128,983

17,374,772

408! 351,044 11,645! 472,807 6,397 784

109 46 32 28

17 28 22 19

11

554,554 613,253 573,067 460,615

313,734 194,192 117,698 112,153

54,758 20,031 5,974

57,637 137,558 264,105 417,501

535,218 564,177 484,245 365,270

263,734 309,288 202,325 103,976

47,140

125,938, 101,065

19,548 3,843,880,3,752,174

8,45112,474,24313,033,242

9 1 484,1901 31,232

3 167,735i 12,935

TABLE 9 (b)

COM PUTER ASSISTED ASSESSING—INCO M E YEAR 1973-74 TAXPAYERS W ITH NO BUSINESS INCOME Assessments Issued 1 July 1974 to 28 February 1975

Spouse and daughter house­

keeper

Children

16 years

S tudent children

invalid relatives

P arents, parents-

keeper

Paym ents to m edical

hospital benefits fund

udt :

Life, etc. insurance prem ium s an n u a tio n

paym ents

T A X AB LE— T O T A Ε­ Ν um ber o f taxpayers

relevant deduction .

with

1,085,616 1,117,468 162,904 24,113 2,659,820 2,269,640 1,846,303 1,370,924

A m o u n t allow ed . . S’000 338,076 505,543 35,088 7,370 259,802 52,670 350,976 355,863

N O N -T A X A B LE—'TO T A L N u m b er o f taxpayers

relevant d eduction .

with

13,390 21,236 2,365 476 75,217 48,209 31,228 11,832

A m o u n t allow able . . $’00( 3,868 9,255 526 127 3,324 540 3,592 722

M edical expenses

D en ta l H ospital

expenses expenses C hem ist expenses O ptical

expenses

2,819,246 1,962,716 226,334 93,837

1,006,860 3,078,190 129,187 127,907

915,432 33,676

70,560 3,005

43,132 1,495

19,868 2,966

81,174 1,706

16,335 565

O ther m edical expenses

R ecoup-

m edical

hospital benefits fund

N et

medical expenses

Gifts

R ates and

on n o n ­ incom e producing property

E ducation expenses

Self­

education expenses allow ance

TA X A B L E — T O T A L — N um ber o f taxpayers

relevant deduction .

with

181,240 2,202,740 (a) 1,563,216 1,498,675 906,563 393,476 133,706

A m ount allow ed . . S"000 8,730 254,292 365,379 29,378 229,680 230,083 28,064 43,437

Ν Ο Ν -TA X A B L E T O T A L N u m b er o f taxpayers

relevant deduction .

with

3,357 34,371 (a) 24,217 18,092 14,342 29,961 10,719

A m ount allow able . . S’000 270 3,230 6,777 435 2,252 2,918 2,529 3,887

Living-

allow ance

C alls

m ining

afforest-

O th er deduc-

T o tal deduc-

40,222 660 (u) ( a )

12,168 49 252,215 3,095,841

4,158 12 (a) (a)

944 3,082 44,780

(a) Numbers not available.

P roperty deductions N et

incom e

Taxable incom e R ebates

T ax instalm ent deductions presented

N um ber A m ount w ith $’000 s*ooo $’000

A m o u n t $’000 N u m b er A m o u n t $’000

315 675 907 967 911 740

570 446 294 452 386 328 250

93

213 345 367 376

329 292 241 159 237 288 315 238

14,501 50,083 75,126 81,646 74,050 64,188

50,000 39,146 28,117 41,868 35,439 29,821 24,841

12,951 41.647 62,321 68,026 62,076

54,233 42.648 33,495 24,336

36,719 31,491 26,933 22,687

8

183 105 12 1

1 1

1

2,072 4,298 5,818 5,956

5,006 3,946 2,537 1,618

1,094 1,202 718 394

182

272 914 1,842 2,808 3,305 3,469 2,745 2,137 1,659 2,156 1,472 1,004 594

7,241 3,492 608,827 519,563 316 34,841 24,376

5,146 2,660 367,984 304,313 130 21,054 19,032

377 149 9,106 4,936! 2,950 405

228 94 4,519 1,905 . . 1,290 251

Excludes taxpayers with incom e from prim ary production partnerships o r trusts and taxpayers with partnership o r tru st incom e from property only.

S A L E S T A X

Sales tax was introduced into the Australian Government’s fiscal system in 1930. It has developed from a single-rate tax with a limited number of exemptions to a multiple-rate tax with a large spread of exemptions.

LEGISLATION

The laws dealing specifically with sales tax at 30 June 1975 were:

Sales Tax Assessment Acts (Nos 1 to 9) 1930-1973.

Sales Tax Acts (Nos 1 to 9) 1930-1975.

Sales Tax Procedure A ct 1934-1973.

Sales Tax (Exemptions and Classifications) Act 1935-1975.

Sales Tax Regulations.

Sales Tax Procedure Regulations. Sales Tax (Exemptions and Classifications) Regulations.

The various Assessment Acts and the subjects to which those Acts relate are set out in the following schedule.

Appropriate Assessment Act Subjects of taxation

1. S a le s T a x A s s e s s m e n t A c t { N o . 1) 1930-1973 Goods manufactured in Australia and sold by the manu­ facturer or treated by him as stock for sale by retail, or applied to his own use.

2. S a le s T a x A s s e s s m e n t A c t { N o . 2) 1930-1973 Goods manufactured in Australia and sold by a pur­ chaser from the manufacturer.

3. S a le s T a x A s s e s s m e n t A c t { N o . 3) 1930-1973 Goods manufactured in Australia and sold by a person not being either the manufacturer or a purchaser from the manufacturer.

4. S a le s T a x A s s e s s m e n t A c t {N o . 4) 1930-1973

5. S a le s T a x A s s e s s m e n t A c t { N o . 5) 1930-1973

6. S a le s T a x A s s e s s m e n t A c t { N o . 6) 1930-1973

7. S a le s T a x A s s e s s m e n t A c t { N o . 7) 1930-1973

8. S a le s T a x A s s e s s m e n t A c t { N o . 8) 1930-1973

9. S a le s T a x A s s e s s m e n t A c t {N o . 9) 1930-1973

Certain goods manufactured in Australia and applied by the purchaser to his own use.

Goods imported into Australia.

Goods imported into Australia and sold by the importer or applied to his own use.

Goods imported into Australia and sold by a person other than the importer.

Certain goods imported into Australia, purchased by a taxpayer and applied to his own use.

Certain goods in Australia dealt with by lease.

The Sales Tax Assessment Acts deal with the assessment, collection and administration of the tax imposed by the Sales Tax Acts, which specify the rates of tax. The Sales Tax Assessment Act (No. 1) contains a number of procedural provisions which are specifically applied to other Assessment Acts.

1 09

The Sales Tax Procedure Act 1934-1973 also provides machinery for the collection and recovery of sales tax but obviates the necessity of establishing which of the Assessment Acts applies to a particular transaction.

The Sales Tax (Exemptions and Classifications) Act 1935-1975 prescribes the goods which are exempt from sales tax and the goods which are subject to tax at rates other than what is known as the general rate.

BASIS OF THE TAX

The sales tax applies to goods only. It is not imposed on personal or professional services as such, nor on sales of real property or of intangible property.

It is a single stage tax which is designed substantially to fall on sales by manufacturers and wholesalers to retailers. The intention is that all goods that are produced in, or imported into, Australia for use or consumption here shall bear the tax unless they are specifically exempted from it. Secondhand goods that have been used in Australia are not ordinarily taxed but imported goods that have been used overseas are normally taxable in a similar fashion to new goods. Exports are exempt from tax.

Although termed a sales tax, the levy is not limited to sales only. Where goods have not already borne tax, it could, for example, fall on leases of those goods or on the application of those goods to a taxpayer’s own use. It may also fall on importations of goods where they are not imported for sale by wholesale,

e.g., where they are imported by retailers or consumers.

The tax is payable on what is termed a ‘sale value’. Broadly, the aim is that the ‘sale value’ upon which tax is payable shall be the equivalent of a fair wholesale price. Thus, where the tax is payable on a wholesale sale, it is payable on a ‘sale value’ equal to the price for which the goods are sold, i.e., the sale price. If the tax is payable on a retail sale, e.g., a sale by a manufacturer to a consumer (or the use by a manufacturer of goods produced by him), it is payable,

broadly, on a value equal to a fair wholesale price.

EXEMPTION FROM THE TAX

A wide variety of goods is exempt from the tax. The classes of exempt goods are set out in the First Schedule to the Sales Tax (Exemptions and Classifications) Act.

AVOIDANCE OF DOUBLE TAXATION OF GOODS

Upon registering for sales tax purposes with the Taxation Office, manufacturers and wholesale merchants are issued with a numbered certificate of registration and are referred to as registered persons. The certificate number, when quoted by a registered person in respect of the purchase or importation of goods, enables the registered person to acquire the goods free of tax.

The system of quoting certificates plays an important part in avoiding the double taxing of goods and in the deferment of the tax payment until the goods pass from the last wholesaler. Thus, by quoting his certificate, a manufacturer

11 0

acquires his raw materials free of tax and he is required to pay tax on his sales of finished products unless the purchaser quotes a certificate for the goods or they are of an exempted class. Similarly, a wholesale merchant normally quotes his certificate when purchasing or importing goods required for resale and is

required to pay tax on his sales unless the purchasers in turn quote certificates or the goods are exempt. Retailers are ordinarily obliged to bear tax when purchasing or importing stocks of taxable goods and they then incur no further liability for tax on their sales.

COLLECTION OF THE TAX

Sales tax is payable by three classes of persons—manufacturers, wholesale mer­ chants and importers. Manufacturers and wholesale merchants are required to register with the Taxation Office in each State in which they have a place of business as manufacturer or wholesale merchant, unless they deal only in exempt goods.

Registered manufacturers and wholesale merchants are required to furnish monthly returns of their transactions to the Taxation Office. Registered persons are required to calculate the tax payable on their taxable transactions and to forward payment with their returns each month. Importers (other than regis­

tered persons who are entitled to quote their certificate numbers for the goods) pay tax when clearing goods through the Customs.

RATES OF SALES TAX

The various rates of tax which have operated over the years since the inception of sales tax are given in the table below.

The Sales Tax (Exemptions and Classifications) Act has been amended on numerous occasions since the introduction of differential rates of sales tax in 1940. The First Schedule to the Act, however, has always listed exempt goods, while the other schedules have been altered, or new schedules introduced, to describe the goods taxable at the various rates imposed from time to time by the several Sales Tax Acts.

The rate of tax described in the table below as the ‘General Rate’ applies, for all periods, to all goods not included in any schedule of the Sales Tax (Exemp­ tions and Classifications) Act.

RATES OF SALES TAX

PA RT A. 1 AU GUST 1930 TO 21 NOVEMBER 1940

Period

Goods not specifically exempted from tax

%

From 1 August 1930 . . . . 2 \

From 11 July 1931 . . . . . 6

From 26 October 1933 . . . . 5

From 11 September 1936 . . . . 4

From 22 September 1938 . . . . • 5

From 9 September 1939 . . . . 6

From 3 May 1940 to 21 November 1940 . 81

PART B. FRO M 22 NOVEMBER 1940

Period

General Rate

Second Schedule

Third Schedule

Fourth Schedule

Fifth Schedule

Sixth Schedule

% % % % % %

From 22 November 1940 . . 10 5 15

From 30 October 1941 . . 10 5 20

From 1 May 1942 . . . m 25

From 21 July 1943 . . . 12* 7* 25

From 15 November 1946 . . 10 25

From 8 September 1949 . . 8* 25

From 13 October 1950 . . 8* 10 25 33*

From 27 September 1951 . . 12* 20 25 33* 50 66*

From 7 August 1952 . . 12* 20 33* 50

From 10 September 1953 . . 12* 16*

From 19 August 1954 . . 12* 16* 10

From 15 March 1956 . . 12* 25 10 16* 30

From 4 September 1957 . . 12* 25 8* 16* 30

From 16 November 1960 . . 12* 25 8* 16* 40

From 22 February 1961 . . 12* 25 8* 16* 30

From 16 August 1961 . . 12* 25 2* 16* 30

From 7 February 1962 . . 12* 25 2* 22*

From 12 August 1964 . . 12* 25 2* 25

From 14 August 1968 . . 15 25 2* 25

From 19 August 1970 . . 15 27* 2* 27*

From 29 January 1975 . . 15 27* 2* 5 15

From 1 May 1975 . . . 15 27* 2* 7 17*

From 1 June 1975 . . . 15 27* 2* 9 20

From 1 July 1975 . . . 15 27* 2* 11 22*

From 1 August 1975 . . 15 27* 2* 13 25

From 1 September 1975 . . 15 27* 2* 15 27*

Amendments to the Acts

In the period covered by this Report, the Sales Tax Acts (Nos 1-9) and the Sales Tax (Exemptions and Classifications) Act were amended by the Sales Tax Acts (Nos 1-9) 1975—Acts Nos 15 to 23 of 1975— and the Sales Tax (Exemp­ tions and Classifications) Act 1975—Act No. 24 of 1975.

The purpose of the amendments was to reduce the rates of tax payable on passenger and commercial motor vehicles for a limited period commencing on and from 29 January 1975. The Acts also provided for the restoration of these tax rates to the pre-existing levels of 2 7 ί per cent for passenger vehicles and

15 per cent for commercial vehicles on and from 1 September 1975. The rates of tax in force during this period were:—

Period

Rate of tax

Passenger vehicles Commercial vehicles

29 January 1975 to 30 April 1975 . . . .

%

15.0

% 5.0

1 May 1975 to 31 May 1975 . . . . . 17.5 7.0

1 June 1975 to 30 June 1975 . . . . . 20.0 9.0

1 July 1975 to 31 July 1975 ......................................... 22.5 11.0

1 August 1975 to 31 August 1975 . . . . 25.0 13.0

1 1 2

Statistics

REVENUE Collections from sales tax for each of the financial years 1964-65 to 1974-75 inclusive are set out in the following table. This table also shows the sales tax collections as a percentage of total revenue collections by the Taxation Office in each year.

SALES TAX COLLECTIONS Financial Years 1964-65 to 1974-75

Financial year

Sales tax collections

Percentage of total revenue collected by Commissioner

of Taxation

1964-65 .........................................

s

362,760,936

%

12.6

1965-66 ......................................... 369,390,332 11.7

1966-67 ......................................... 379,269,864 11.3

1967-68 ......................................... 417,012,100 11.2

1968-69 ......................................... 494,063,293 11.7

1969-70 ......................................... 567,359,253 11.4

1970-71 ......................................... 633,159,391 11.3

1971-72 ......................................... 682,800,737 11.1

1972-73 ......................................... 764,968.502 11.7

1973-74 ......................................... 968,758,243 11.2

1974-75 ......................................... 1,154,290,467 10.0

SALE VALUES OF TAXABLE GOODS The following table summarises the principal sales tax statistics for each of the financial years 1964-65 to 1974-75.

SALE VALUES OF TAXABLE GOODS INCLUDED IN SALES TAX RETURNS AND COLLECTIONS BY TAXATION OFFICE AND DEPARTMENT OF CUSTOMS AND EXCISE Financial Years 1964-65 to 1974-75

Financial year

Gross taxable sales

Net taxable sales* Taxation

Office

Net Collection

Department of Customs and Excise

s

Total

Taxation Office collections as percentage

of net taxable sales

$'000 $’000 S’OOO S’000 S'000 %

1964-65 . . 2,630,474 2,529,492 351,274 11,486 362,761 13.9

1965-66 . . 2,682,717 2,584,377 353.714 15,676 369,390 13.7

1966-67 . . 2.850.711 2,743,758 367,494 11,776 379,270 13.4

1967-68 . . 3,095,982 2,980,277 405,738 11,274 417,012 13.6

1968-69 . . 3,397,210 3,274,458 479,633 14,430 494,063 14.7

1969-70 . . 3,800,943 3,662.229 546,263 21.097 567,359 14.9

1970-71 . . 4,131,560 3,940,059t 609.661 23,498 633,159 15.5

1971-72 . . 4,433,785 4,239,139t 660,919 21,882 682.801 15.6

1972-73 . . 4,996,428 4,797,837f 740,674 24.295 764,965 15.4

1973-74 . . 6,606,366t 6,292,70! f 935,122 33,636 968,758 14.9

1974-75 . . 7,677,069t 7,293.216+ 1,103.329 50.961 1,154.290 15.1

* R epresents gross taxable sales less discounts, goods returned, bad debts and other adjustm ents. t Estim ated.

More detailed statistics of sales tax for the financial year 1973-74 are to be found in Part B of Taxation Statistics 1973-74, the supplement to the Fifty- third Report.

113

E S T A T E D U T Y

Estate duty first came into operation on 21 December 1914.

LEGISLATION

The laws relating specifically to estate duty at 30 June 1975 were:

Estate Duty Assessment A ct 1914-1974.

Estate Duty Act 1914-1966.

Estate Duty Regulations.

Estate Duty Convention ( United States of America) Act 1953-1973.

BASIS OF THE DUTY

The estate duty legislation provides for the imposition of a duty on the estates of deceased persons. For the purpose of assessing estate duty the estate of the deceased person comprises:

{a) where the deceased was domiciled in Australia at the time of his death— his real property in Australia and his personal property both in and out of Australia; or (b) where the deceased had a foreign domicile at the time of his death

—his real and personal property in Australia.

In each case, property over which the deceased person had a general power of appointment exercised by his will is included in his estate.

Real property situated outside Australia is not dutiable. In respect of personal property situated outside Australia and dutiable in the estate of a deceased person domiciled in Australia at the time of his death, a rebate of duty is allowable equal to the lesser of the duty paid outside Australia or the estate

duty payable on that property. (Provisions to avoid double duty are contained in the convention with the United States set out in the Estate Duty Convention ( United States of America) A ct 1953-1973.)

Provision is made for the inclusion in the deceased person’s estate of gifts made by him within three years before his death. Where the inclusion of such gifts causes an increase in the estate duty payable, however, a rebate is allowable of the amount of that increase or the amount of any gift duty imposed by the Gift Duty Assessment Act paid in respect of gifts, whichever is the lesser.

Deductions are allowed for debts and taxes due at the date of death and for probate and death duties payable under a State Act. Where the estate of a deceased person includes an interest in the matrimonial home and the gross value of that interest is less than $85,000 there is also allowable a deduction calculated by reference to a formula but not exceeding $35,000 if the interest or part of it passes to the surviving spouse. The value remaining after the above adjustments is the value of the estate on which the statutory exemption referred to below is calculated.

1 1 4

Estate duty is not assessed or payable on bequests and gifts for religious, scientific or public educational purposes in Australia, or to public or non-profit hospitals, to public benevolent institutions, to public libraries or certain specified bodies.

STATUTORY EXEMPTIONS The law provides for diminishing statutory exemptions which relieve small estates from duty and up to certain levels provide a measure of relief for other estates.

As at 30 June 1975, these exemptions were:

(а) where the whole of the estate passes to the widow, widower, children or grandchildren of the deceased person—-(i) for qualifying estates of deceased primary producers— $48,000 (ii) for other estates— $40,000

decreasing by $2 for every $8 by which the value of the estate exceeds $48,000 or $40,000 as the case may be;

(б) where no part of the estate passes to the abovementioned relatives— (i) for qualifying estates of deceased primary producers— $24,000 (ii) for other estates— $20,000 decreasing by $2 for every $8 by which the value of the estate exceeds

$24,000 or $20,000 as the case may be; and

(c) where part only of the estate passes to the abovementioned relatives — an amount calculated proportionately under (a) and (b) above. For statutory exemptions in previous years see the table on page 82 of the Fifty-first Report and page 118 of this Report.

VALUE FOR DUTY OF ESTATE Duty payable is calculated on the value for duty of the estate— which is obtained by subtracting the statutory exemption and any other special exemption from the value of the estate as described above.

RATES OF DUTY The present rates of estate duty, which have remained unchanged since 1941, are—where the value for duty:

(a) does not exceed $20,000— 3 per cent; ( b) exceeds $20,000 but does not exceed $40,000— 3 per cent increasing by 0.03 per cent for every complete $200 by which the value exceeds $20,000;

(c) exceeds $40,000 but does not exceed $240,000— 6 per cent increasing by 0.02 per cent for every complete $200 by which the value exceeds $40,000; (d ) exceeds $240,000 but is less than $1,000,000— 26 per cent increasing

by 0.005 per cent for every complete $2,000 by which the value exceeds $240,000; (e) is $1,000,000 or more— 27.9 per cent.

115

For rates prior to 3 December 1941, see Table No. 38 of the Forty-fifth Report.

QUICK SUCCESSION REBATE A rebate of estate duty may be allowable if the deceased was a beneficiary in an estate (upon which duty is payable or has been paid) of a person who predeceased him by not more than five years.

RURAL PROPERTY REBATE A rebate of part of any estate duty attributable to rural property included in the estate of a deceased primary producer may be allowable if the value of the estate (before deducting any statutory exemption) is less than $250,000 and certain conditions are satisfied. If the value of a qualifying estate does not exceed

$140,000, the rebate is 50 per cent of any duty attributable to rural property in Australia. Rates of rebate gradually reducing from fifty per cent are applicable to estates having net values between $140,000 and $250,000.

ASSESSMENT AND COLLECTION OF DUTY The Estate Duty Regulations require that a return be lodged within three months of the date of death, or within one month after probate of the will or letters of administration are granted (if not granted within three months after death).

The duty is payable after an assessment is received from the Commissioner.

RELIEF FROM PAYMENT OF DUTY Where a beneficiary might suffer serious financial hardship if the full amount of duty payable in respect of an estate were to be exacted, application may be made for relief from payment of estate duty. A Board of Relief exists to consider such applications (see ‘Statutory Taxation Boards’).

Amendments to the Acts

Estate Duty Assessment Act 1974

The Principal Act was amended by the Estate Duty Assessment Act 1974— Act No. 130 of 1974— which was assented to on 6 December 1974.

Two main changes in the law were effected by the amending Act. They are outlined in the succeeding paragraphs.

Matrimonial Home Deduction A new section— section 8aaa— was inserted in the Principal Act to make provision for the allowance of a deduction in the assessment of duty payable on the estate of a deceased person where an interest in the matrimonial home passes to the

surviving spouse.

A matrimonial home deduction is allowable where— (a) a death of the deceased person occurred on or after 30 April 1974:

(b) the deceased person was domiciled in Australia immediately before his death;

1 1 6

(c) the gross value of the deceased person’s interest in the matrimonial home was less than $85,000; and (d) an interest in the matrimonial home passes to the surviving spouse. Where the whole of the deceased person’s interest in the matrimonial home passes to the surviving spouse and its gross value does not exceed $35,000 the

deduction allowable is an amount equal to the gross value of the interest. Where the whole of the interest passes to the surviving spouse and the gross value of the interest exceeds $35,000 the deduction allowable is $35,000 reduced by $7 for every $10 by which the gross value exceeds $35,000. There is no

deduction allowable where the gross value of the deceased person’s interest is $85,000 or more. Where the deceased person’s interest in the matrimonial home does not pass wholly to the surviving spouse the deduction otherwise allowable is reduced by such amount as the Commissioner considers appropriate.

Relief Board A new section—section 4 8 a— inserted in the Principal Act empowers a board comprising the Commissioner of Taxation as Chairman, the Secretary to the Department of the Treasury and the Comptroller-General of Customs (or their

substitutes) to consider applications for release from payment of estate duty.

The Board has authority to release a person liable to pay estate duty either in whole or in part from liability if the benefit of the release will accrue to a beneficiary who would suffer serious hardship if the full amount of duty were to be exacted.

The powers of the Board may be exercised by the Commisioner of Taxation where application is made for release from payment of estate duty of $200 or less.

Statistics

REVENUE The table below sets out the revenue collections from estate duty in each of the financial years $1964-65 to 1974-75, and the percentage relationships between these collections and the total revenue collections of the Taxation Office.

ESTATE DUTY COLLECTIONS Financial Years 1964-65 to 1974-75

F in a n c ia l y e a r

E s ta te d u ty

c o lle c tio n s

P e r c e n ta g e o f

to t a l r e v e n u e

c o lle c te d b y T a x a t i o n

O ffice

s %

1 9 6 4 -6 5 4 1 ,5 3 0 ,7 2 2 1 .4

1 9 6 5 -6 6 3 6 ,1 2 4 ,3 8 0 1 .2

1 9 6 6 -6 7 4 1 ,5 3 3 ,7 4 8 1 .2

1 9 6 7 -6 8 5 4 .7 1 6 ,6 5 5 1 .5

1 9 6 8 -6 9 6 0 ,7 2 5 ,7 8 0 1 .4

1 9 6 9 -7 0 7 1 ,3 3 2 ,4 5 3 1 .4

1970-71 7 0 ,0 7 2 ,7 8 0 1 . 3

1 9 7 1 -7 2 6 7 .2 0 5 .9 1 7 1 . 1

1 9 7 2 -7 3 6 6 ,3 5 0 ,2 9 5 ■ 1 .0

1 9 7 3 -7 4 6 5 ,8 7 5 ,2 4 5 0 . 7

1 9 7 4 -7 5 6 3 ,7 1 8 ,5 2 4 0 - 6

1 1 7

ESTATE DUTY ASSESSMENTS ISSUED

The following table summarises the main statistics of estate duty assessments issued each year from 1964-65 to 1974-75.

ESTATE DUTY ASSESSMENTS ISSUED

Financial Years 1964-65 to 1974-75

Financial year

Number of estates

Gross value as assessed Deductions

Statutory exemption* Dutiable value

Net duty payable

$ ’0 0 0 $ ’0 0 0 $ ’00 0 $ ’000 $ ’0 0 0

1 9 6 4 -6 5 . . . 12,423 6 0 2 ,2 1 6 116,821 9 2 ,6 4 1 3 9 2 ,7 5 4 4 0 .9 3 5

1 9 6 5 -6 6 . . . 10,948 5 8 7 ,4 8 8 117,305 1 0 9 ,4 6 8 3 6 0 ,715 3 8 ,4 1 0

1 9 6 6 -6 7 . . . 12,056 6 6 4 ,0 3 4 131,929 1 2 7 ,6 0 2 4 0 4 ,5 0 2 4 3 ,8 1 7

1 9 6 7 -6 8 . . . 14,489 8 4 0 ,2 2 6 1 6 8 ,106 1 5 5 ,8 0 0 5 1 6 ,3 2 0 57,711

1 9 6 8 -6 9 . . . 14,105 8 4 1 ,4 6 2 1 6 2 ,8 3 4 1 5 2 ,2 0 6 5 2 6 ,4 2 2 6 4 ,0 4 5

1 9 6 9 -7 0 . . . 16,358 1 ,0 6 8 ,2 1 3 2 2 2 ,9 5 3 1 7 0 ,7 5 5 6 7 4 ,5 0 4 8 3 ,3 7 9

1 9 7 0 -7 1 . . . 1 6 ,502 9 9 3 ,6 1 0 1 6 8 ,3 9 6 1 7 9 ,4 2 3 645,791 80,551

1 9 7 1 -7 2 . . . 18,505 1 ,0 4 5 ,4 1 8 1 9 2,017 2 0 9 ,3 7 7 6 4 4 ,0 2 4 7 1 ,7 5 0

1 9 7 2 -7 3 . . . 16,734 9 6 9 ,7 7 8 1 7 6 ,3 2 4 2 0 2 ,7 9 3 5 9 0 ,6 6 0 6 4 ,3 6 6

1 9 7 3 -7 4 . . . 12.052 9 6 4 ,8 0 4 194,159 2 3 8 ,2 1 2 532,433 65,981

1974-75(«) . . . 13,521 (b) (b) (b) (b ) 8 0 ,3 2 9

( a ) P relim inary (6) N o t available.

* S tatutory ex e m p tio n :

F ro m 28 O ctober 1953— W here w hole o f estate passes to w idow , w idow er, children o r grandchildren— $10,000 decreasing by $2 for every $6 by w hich th e value o f th e estate exceeds $10,000.

W here no p a rt o f estate passes to ab o v e relatives— $5,000 decreasing by $2 fo r every $6 by which th e value o f th e estate exceeds $5,000.

F ro m 31 O ctober 1963— W here the whole o f th e estate passes to th e widow, widow er, children o r grandchildren o f the deceased— $20,000, decreasing by $2 fo r every $8 by w hich the value o f th e estate exceeds $20,000.

W here no p a rt o f th e estate passes to th e above relatives— $10,000, decreasing by S2 for every $8 by which the value o f the estate exceeds $10,000.

W here p a rt only o f th e estate passes to th e above relatives— an am o u n t calculated proportionately.

F ro m 25 S eptem ber 1969— W here th e w hole o f th e estate passes to th e w idow, widow er, children o r grandchildren o f the deceased

person— (i) fo r qualifying estates o f deceased prim ary producers— $24,000 (ii) fo r o th e r estates— $20,000 decreasing by $2 fo r every $8 by w hich the value o f th e estate exceeds $24,000 or $20,000 as the case m ay be. W here no p a rt o f th e estate passes to th e abovem entioned relatives—

(i) fo r qualifying estates o f deceased p rim ary producers— $12,000 (ii) for other estates—$10,000 decreasing by $2 fo r every $8 by w hich the value o f th e estate exceeds $12,000 o r $10,000 as the case may be. W here p a rt only o f the estate passes to th e abovem entioned relatives— a n am o u n t calculated proportionately.

Since 16 A ugust 1972— See ‘S tatu to ry E xem ption’ at page 115 o f this R eport.

More detailed statistics for the 1973-74 financial year are to be found in Part C of ‘Taxation Statistics 1973-74’, the supplement to the Fifty-third Report.

118

G I F T D U T Y

Gift duty came into operation on 29 October 1941.

LEGISLATION The laws relating specifically to gift duty as at 30 June 1975 were:

Gift Duty Assessment Act 1941-1973.

Gift Duty Act 1941-1972.

Gift Duty Regulations.

Gift Duty Convention ( United States of America) Act 1953-1973.

BASIS OF THE DUTY Gift duty is payable at rates laid down by the Gift Duty Act 1941-1972 in respect of a gift made by:

(a) any person domiciled in Australia or company incorporated in Australia; (b) any other person where the property is situated in Australia at the time when the gift is made.

A gift is defined as any disposition of property which is made otherwise than by will without adequate consideration in money or money’s worth.

EXEMPTIONS Certain exemptions from duty are provided by the Gift Duty Assessment Act, the more important being:

(a) payments to an employees’ superannuation or like fund; (b) retiring allowances or gratuities granted to employees; (c) gifts to organizations not carried on for the profit of any individual; (d) gifts to the Australian Government or a State; (e) small gifts not exceeding $100 in the aggregate in any period of

eighteen months.

In addition (see below— ‘Rates of Duty’) no duty is payable when the value of all gifts made by the same donor within a period of eighteen months both before and after making a gift does not exceed $10,000.

RATES OF DUTY The rate of gift duty applicable to a particular gift is fixed by reference to the total value of all gifts made by the same donor within the period of eighteen months before and eighteen months after the time of making that gift.

The present rates of gift duty are as set out below.

Where the total value of all gifts as described above:

(a) does not exceed $10,000— nil;

1 19

(b) exceeds $10,000 but does not exceed $20,000— 3 per cent, provided that the gift duty payable shall not exceed one-half of the amount by which the gift exceeds $10,000, or a proportionate amount where more than one gift is involved. This provision allows for a progressive increase in the rate from nil at $10,000 until it reaches 3 per cent at $10,639.

(c) exceeds $20,000 but does not exceed $40,000— 3 per cent increasing by 0.03 per cent for every complete $200 by which the value exceeds $ 20,000;

(d) exceeds $40,000 but does not exceed $240,000— 6 per cent increasing by 0.02 per cent for every complete $200 by which the value exceeds $40,000; ( e) exceeds $240,000 but is less than $1,000,000—-26 per cent increasing

by 0.005 per cent for every complete $2,000 by which the value exceeds $240,000; (/) is $1,000,000 or more— 27.9 per cent.

The above rates have been in force since 29 October 1941 except that:

(a) prior to 3 June 1947, where the value of all gifts did not exceed $1,000, the rate was nil, and where the value of all gifts exceeded $1,000 but did not exceed $20,000 the rate was 3 per cent; (b) between 3 June 1947 and 15 August 1972 the rate was nil where

the value of all gifts did not exceed $4,000 and where the value of all gifts ranged between $4,001 and $4,255 the duty did not exceed one- half of the amount by which the value of all gifts exceeded $4,000.

ASSESSMENT AND COLLECTION OF DUTY

Both the donor and the donee are liable to furnish gift duty returns. However, if a return is furnished by the donor, the donee is relieved of this obligation. Where the value of the gift together with the total value of gifts made by the donor during the preceding eighteen months does not exceed $7,500, no return is necessary.

Payment of duty is made after an assessment is received from the Commis­ sioner. The donor and the donee are jointly and severally liable to pay the duty.

Where an assessment is made on a particular gift and subsequently, within eighteen months of the date of this gift, further gifts are made by the same donor, an amendment to the original assessment may be necessary to account for any increase in the rate of duty occasioned by these additional gifts.

Amendments to the Acts

There were no amendments to the gift duty Acts in the period covered by this Report.

1 20

Statistics

REVENUE

The following table shows the amounts of gift duty collected in each financial year from 1964-65 to 1974-75. It also shows for each year the percentage of the total revenue collected by the Taxation Office which is represented by gift duty collections.

GIFT DUTY COLLECTIONS Financial Years 1964-65 to 1974-75

Financial year

Gift duty collections

Percentage of total revenue collected by Taxation Office

$ %

1964-65 ......................................... 7,308,388 0.3

1965-66 ......................................... 6,194,654 0.2

1966-67 ......................................... 7,658,425 0.2

1967-68 ......................................... 8,543,493 0.2

1968-69 ......................................... 9,375,650 0.2

1969-70 ......................................... 8,553,318 0.2

1970-71 ......................................... 7.795,240 0.1

1971-72 ......................................... 8,529,580 0.1

1972-73 ......................................... 6,941,157 0.1

1973-74 .......................................... 9,725,055 0.1

1974-75 ......................................... 16,203,924 0. 1

GIFT DUTY ASSESSMENTS ISSUED The number of gift duty assessments, the value of the gifts as returned and as assessed and the gift duty payable for each financial year from 1964-65 to 1974-75 are shown in the following table. The distribution of the numbers of gift duty assessments by grade of dutiable value of assessment for each financial year from 1965-66 to 1973-74 is shown in the table on page 122.

More detailed statistics for the 1973-74 financial year are to be found in Part D of ‘Taxation Statistics 1973-74’, the supplement to the Fifty-third Report.

GIFT DUTY ASSESSMENTS ISSUED Financial Years 1964-65 to 1974-75

Financial year

Number of assessments Value as returned

Value as assessed

Duty assessed

S 'o o o S 'o o o S’000

1964-65 . . . . 8,306 125.098 124,709 6,870

1965-66 . . . . 7,515 110,725 111,658 5,911

1966-67 . . . . 8.496 128,334 130,771 7,633

1967-68 . . . . 9.293 149,175 150,322 8,701

1968-69 . . . . 10,053 162,006 163,476 9,501

1969-70 . . . . 9,807 155,117 156,053 8,399

1970-71 . . . . 9,740 146,916 147,676 7,796

1971-72 . . . . 10,425 171,947 172,244 9,878

1972-73 . . . . 7,199 129,757 130,875 7,158

1973-74 . . . . 6.976 197,666 199,454 18,037

1974-75(0) . . . . 7.461 (b ) (6) 34.498

(

121

NUMBERS OF GIFT DUTY ASSESSMENTS ISSUED

Financial Years 1965-66 to 1973-74

Grade of

Number of assessments

of assessment 1965-66 1966-67 1967-68 1968-69 1969-70 1970-71 1971-72 1972-73 1973-74

$ $

1- 199 . 188 225 196 130 151 148 111 105 123

200- 999 . 246 228 250 276 275 366 246 240 194

1,000- 1,999 . 232 206 210 235 264 245 188 168 118

2,000- 3,999 . 304 388 290 372 366 406 334 267 216

4,000- 5,999 . 1,047 1,243 1,326 1,414 1,272 1,337 1,369 756 281

6,000- 7,999 . 875 947 1,064 1,132 1,076 1,067 1,095 536 197

8,000- 9,999 . 647 737 780 848 809 797 883 416 193

10,000-19,999 . 2,021 2,233 2,510 2,748 2,781 2,755 3,090 2,103 2,053

20,000-39,999 . 1,497 1,758 2,029 2,186 2,139 2,027 2,416 1,932 2,356

40,000-99,999 . 418 461 559 616 604 533 619 608 1,001

100,000 and over . 40 70 79 96 70 59 74 68 244

Total . 7,515 8,496 9,293 10,053 9,807 9,740 10,425 7,199 6,976

122

P A Y - R O L L T A X

Pay-roll tax was first imposed by the Australian Government on wages accruing after 30 June 1941. The tax continued as an Australian Government levy until, in terms of an agreement reached with the States at the June 1971 Premiers Conference, it was transferred to the States with effect from 1 September 1971. From that date the Australian Government ceased to impose pay-roll tax except in relation to the Australian Capital Territory and the Northern Territory.

LEGISLATION

The laws relating specifically to pay-roll tax at 30 June 1975 were as follows— Pay-roll Tax Assessment Act 1941-1973 Pay-roll Tax A ct 1941-1966 Pay-roll Tax Regulations Pay-roll Tax ( Termination of Commonwealth Tax) Act 1971

Pay-roll Tax ( Territories) Assessment A ct 1971-1973 Pay-roll Tax ( Territories) Act 1971-1974

Pay-Roll Tax (Termination of Commonwealth Tax) Act 1971 By virtue of the operation of this Act, the Pay-roll Tax Assessment Act 1941-1969 and the Pay-roll Tax Act 1941-1966 ceased to have effect in relation to wages paid or payable on or after 1 September 1971 and the pay-roll tax rebate scheme

which was to have operated until 30 June 1973 was terminated as from the end of the 1970-71 rebate year. The rebate scheme was replaced by a grants scheme operated under the Export Incentive Grants Act (see page 126).

Pay-roll Tax ( Territories) Assessment A ct 1971-1973 Pay-roll Tax ( Territories) Act 1971-1974 These Acts together provide for the imposition, assessment and collection of pay-roll tax on wages paid or payable on or after 1 September 1971 being wages

for services rendered wholly within the area comprising the Australian Capital Territory and the Northern Territory, or wages paid or payable in those Terri­ tories other than wages for services rendered wholly within one State.

EXEMPTIONS FROM TAX Exemptions from tax are limited to wages paid by the Governor-General or the Governor of a State, the representatives in Australia of the governments of other countries, public hospitals and certain other hospitals, public benevolent and religious institutions, certain non-government schools, local government bodies

(except in relation to such trading activities as may be specified by regulation) and wages paid by some specified organisations. Wages paid by an employer to an employee on leave from his employment by reason of being a member of the Defence Force are also exempt. The tax, however, applies to wages paid, other than from the consolidated revenue fund, by a public authority constituted by or under a law of Australia or of the Australian Capital Territory or the

Northern Territory.

l.v>4l '7 5 -f

123

An employer who pays wages that are not specifically exempt from tax is entitled to a deduction by way of a general exemption of $1,733.33 per month from the wages paid or payable by him when determining the amount on which tax is payable. Where, however, an employer is required under State law to include wages in a pay-roll tax return in one or more States, as well as in a

Territory, only a proportionate part of $1,733.33 is allowable.

RATE OF T A X

The rates of pay-roll tax imposed by the Pay-roll Tax ( Territories) Act 1971-74 are as follows:

Period in which wages payable Rate

%

1 September 1971 to 31 August 1973 . . . 21

1 September 1973 to 30 June 1974 . . . . 31

1 July 1974 to 30 November 1974 . . . . 41

From 1 December 1974 . . . . . 5

The relevant rate is applied to the amount by which the wages payable exceed the general exemption.

ASSESSMENT AND COLLECTION OF TAX

An employer who pays wages, other than wages that are specifically exempt from tax, at a rate in excess of $400 per week, is required to register with the Commissioner of Taxation and lodge monthly returns, unless the Commissioner gives permission for returns to be lodged at longer intervals. The amount of tax payable is required to be remitted with the return.

Provision is made to ensure that employers receive the full benefit of the general exemption by annual adjustments of tax in cases where, in certain months of the year, the employer’s wages bill falls below the general exemption allowable as a deduction in monthly return, i.e., $1,733.33 or a proportionate part of that amount where the employer is liable also to include wages in a pay-roll tax return lodged under the laws of a State.

Amendments to the Act

Pay-roll Tax ( Territories) Act 1974

This Act amended the Pay-roll Tax ( Territories) Act 1971-1973 to increase from 41 per cent to 5 per cent the rate of pay-roll tax payable as from 1 December 1974. The rate of pay-roll tax payable in the Australian Capital Territory and the Northern Territory was thereby brought into line with that levied by State Parliaments since 1 September 1974.

1 2 4

Statistics

PAY-ROLL TAX COLLECTIONS

Financial Years 1964-65 to 1974-75

Financial year

Pay-roll tax collections *

Percentage of revenue collected by Taxation Office

s %

1963-64 .......................................... 136,443.470 5.7

1964-65 .......................................... 150,077,552 5.2

1965-66 .......................................... 161,943,228 5.1

1966-67 .......................................... 173,231,715 5.2

1967-68 .......................................... 184,415,546 4.9

1968-69 .......................................... 205,567,623 4.9

1969-70 .......................................... 230,468,697 4.6

1970-71 .......................................... 247,677,262 4.4

1971-72 .......................................... 40,395,804 0.7

1972-73 .......................................... — 11,642,931 —0.2

1973-74 .......................................... 5,357,810 0.1

1974-75 .......................................... 14,837,928 0.1

* Gross collections less refunds of pay-roll tax rebates.

Further statistics of pay-roll tax are given in Part E of ‘Taxation Statistics 1973-74’, the supplement to the Fifty-third Report.

125

E X P O R T I N C E N T I V E G R A N T S

Following the termination of the pay-roll tax rebate scheme as from 30 June 1971, an Export Incentive Grants Scheme was introduced to provide, in the form of direct grants, benefits similar to those that would have been payable if the rebate scheme had continued in operation. The year ended 30 June 1974 is the last year of export in respect of which the grants are payable.

LEGISLATION The Act relating specifically to export incentive grants at 30 June 1975 was— Export Incentive Grants A ct 1971-1973.

Eligibility for Grants Eligibility for grants under the Export Incentive Grants Act 1971-1973 is deter­ mined on the same basis as eligibility for a rebate would have been determined if the pay-roll tax rebate provisions embodied in the Pay-roll Tax Assessment Act

1941-1969 had continued in operation. As pay-roll tax is no longer payable under that Act, however, the amount of a grant in relation to any financial year is limited to the amount that would have been payable if pay-roll tax had continued to be payable under that Act at the rate of 21 per cent fixed by the Pay-roll

Tax Act 1941-1966. The amount of a grant is not related to the amount of pay­ roll tax that might be payable by an employer under State or Territory laws imposing pay-roll tax.

A broad outline of the provisions which applied in relation to the pay-roll tax rebate scheme from July 1968 to June 1971 and which was re-enacted in substance in the Export Incentive Grants Act 1971-1973 appears at pages 80 and 81 of the Forty-seventh Report.

Statistics

Statistics of Export Incentive Grants are shown in ‘Taxation Statistics 1973-74’, the supplement to the Fifty-third Report.

1 2 6

A U S T R A L I A N C A P I T A L T E R R I T O R Y

S T A M P D U T Y A N D T A X

Stamp duty and tax on a range of instruments and transactions connected with the Australian Capital Territory, including Jervis Bay, came into operation on 1 July 1969.

LEGISLATION

The Acts relating specifically to the stamp duty and tax at 30 June 1975 were: Australian Capital Territory Taxation (Administration) Act 1969-1973. Australian Capital Territory Stamp Duty Act 1969-1973. Australian Capital Territory Tax (Cheques) Act 1969.

Australian Capital Territory Tax (Hire-purchase Business) Act 1969. Australian Capital Territory Tax (Insurance Business) Act 1969-1973. Australian Capital Territory Tax (Sales of Marketable Securities') Act 1969-1973. Australian Capital Territory Tax (Purchases of Marketable Securities)

A ct 1969-1973. Australian Capital Territory Stamp Duty Regulations. Australian Capital Territory Tax (Sales of Marketable Securities) Australian Capital Territory Tax (Insurance Business) Regulations. Australian Capital Territory Tax (Purchases of Marketable Securities)

Regulations.

The titles of the several Acts are broadly indicative of their functions. Briefly, the Australian Capital Territory Taxation (Administration) Act 1969-1973 pro­ vides for the administrative procedures necessary for assessment and collection of duty and tax, and gives rights of objection and appeal in relation to assessments. The other six Acts impose duty or tax on the particular transactions to which they relate.

SCOPE OF A.C.T. STAMP DUTY AND TAX AND RATES OF DUTY AND TAX The range of dutiable instruments or transactions subject to duty or tax and the rate at which the duty or tax is imposed are set out hereunder:

cheques drawn on branches of banks in the Territory, and bills of exchange (other than cheques) and promissory notes, that are drawn, made, negotiated, presented for payment, or paid, in the Territory— at the rate of 5 cents for each instrument; hire-purchase agreements entered in the Territory— at the rate of 1 i

per cent on the purchase price less the deposit where that balance exceeds $100; insurance (other than life insurance, third party motor vehicle insurance and workers’ compensation insurance)— at the rate of 5 per cent of

premiums received in the Territory;

1 2 7

transfers of freehold or leasehold interests in land situated in the Territory — at the rate of $1 per $100 (or part thereof) of the value of the

interest in the land transferred; leases of land situated in the Territory— at the rate of $1 per $100 (or part thereof) of the value of the consideration by way of premium and 30 cents for every $100 (or part thereof) of the total amount of the

rent payable over the term of the lease; transfers of shares and marketable securities effected otherwise than through a broker for full value— 15 cents per $25.00 (or part thereof) of the unencumbered value of the securities;

sales and purchases of shares and marketable securities effected through brokers for full value— 30 cents per $100 (or part thereof) of the sale price, payable by the broker acting for the seller if he acted pursuant to an order to sell given to him in the Territory, and 30 cents per $100

(or part thereof) of the sale price, payable by the broker for the buyer if he acted pursuant to an order to buy given to him in the Territory. If the sale price is less than $100 the rate is 7 cents per $25 (or part thereof) in each case.

A general exemption from all duties is provided for public hospitals, public benevolent institutions, religious institutions, public educational institutions and for visiting diplomatic personnel and their families. The exemptions for members of a diplomatic mission in Australia are conditional upon reciprocal treatment being afforded to members of the Australian Mission in the country represented here. Conveyances by or to the Australian Government are specifically exempted from the duty.

ASSESSMENT AND COLLECTION OF DUTY Payment of duty or tax is made under systems similar to those employed by State authorities. Broadly stated, an enterprise in the Territory that is regularly involved in dutiable transactions, such as a bank, a hire-purchase company, an insurance company or a stock exchange broker, is liable to make a monthly return to the Commissioner together with a remittance of tax payable in respect of those transactions. The tax payable under this system is imposed on the various transactions or instruments by the five taxing Acts.

In other cases, payment of duty imposed by the Stamp Duty Act 1969-1973 is indicated by affixing duty stamps or by impressment of a duty stamp on a document produced to the Australian Taxation Office for assessment.

Amendments to the Acts

There were no amendments to the Acts relating to stamp duty and tax in the Australian Capital Territory during the period covered by the Report.

Statistics

Statistics of Australian Capital Territory stamp duty and tax are included in Taxation Statistics 1973-74, the supplement to the 53rd Report.

1 28

W O O L T A X

Wool tax first came into operation on 1 July 1936. It remained in force until 1 July 1946 when it was suspended to make way for the wool contributory charge. From 1 July 1952 the wool contributory charge was abolished and the wool tax was reimposed. The proceeds from the wool tax are applied to wool research and wool use promotion, and as from 1 July 1973 also finances the administrative marketing expenses of the Australian Wool Corporation.

LEGISLATION

The laws relating specifically to wool tax at 30 June 1975 were:

Wool Tax Acts (Nos 1 to 5) 1964-1975.

Wool Tax (Administration) Act 1964-1973.

Wool Tax (Nos 1 to 5) Regulations.

Wool Tax (Administration) Regulations.

Wool Tax Act Subject of taxation

W o o l T a x A c t ( N o . 1) 1964-1975 W o o l T a x A c t ( N o . 2) 1964-1975

W o o l T a x A c t ( N o . 3) 1964-1975

W o o l T a x A c t ( N o . 4) 1964-1975

W o o l T a x A c t ( N o . 5) 1964-1975

Shorn wool produced in Australia and sold by a wool-broker. Shorn wool produced in Australia and purchased by a registered wool- dealer from a person other than a wool-broker. Shorn wool produced in Australia and purchased by a manufacturer

from a person other than a wool-broker or a registered wool-dealer. Shorn wool produced in Australia and subjected by a manufacturer to a process of manufacture. Shorn wool produced in, and exported from, Australia.

SCOPE OF THE TAX

Wool tax applies to all shorn wool produced in Australia and which is sold by a wool-broker, purchased by a registered wool-dealer, purchased or processed by a manufacturer, or exported. Once wool has borne tax it does not become subject to tax a second time, e.g., tax is not payable by a manufacturer or exporter in respect of wool purchased at auction from a wool-broker.

RATES OF TAX

The Wool Tax Acts (Nos 1 to 5) 1964-75 impose on the sale value of taxable wool a tax at the rate of 3 per cent or such lower rate as is prescribed by

regulation plus, in respect of wool sold etc. during the period 2 September 1974 to 30 June 1976, tax at a further rate of 5 per cent of the sale value of that wool. Each of the five Acts provides that, before prescribing any rate lower than 3 per cent, the Governor-General shall take into consideration recommendations

with respect to that rate made by the Australian Wool Industry Conference.

1 29

The rates of wool tax and wool contributory charge levied since the intro­ duction of wool tax in 1936 are set out below.

RATES O F W OOL TAX AND W OOL CONTRIBUTORY CHARGE

W o o l T a x

(1 July 1936 to 30 June 1946)

From 1 July 1936 . . . . . 5c per bale. 2Jc per fadge or butt. fc per bag.

From 1 June 1945 to 30 June 1946 . . 20c per bale. 10c per fadge or butt. 33c per bag.

W o o l C o n t r i b u t o r y C h a r g e

(1 July 1946 to 30 June 1952)

From 1 July 1946 . . . . . 5 per cent of the sale price obtained for the wool

From 1 August 1947 . . . . . f per cent of the sale price obtained for the wool

From 1 July 1948 . . . . . 4- per cent of the sale price obtained for the wool

From 26 August 1950 ......................................... 73 per cent of the sale price obtained for the wool

From 27 August 1951 to 30 June 1952 . . 3 per cent of the sale price obtained for the wool

W o o l T a x

(From 1 July 1952)

From 1 July 1952 .......................................... 40c per bale. 20c per fadge or butt. 6 |c per bag.

From 1 July 1957— For wool use promotion . . . .

For wool research . . . . .

40c per bale. 20c per fadge or butt. 6 jc per bag.

20c per bale. 10c per fadge or butt. 3j-c per bag.

From 1 August 1960— For wool use promotion. . . . .

For wool research . . . . .

50c per bale. 25c per fadge or butt. 8jc per bag.

20c per bale. 10c per fadge or butt. 33c per bag.

From 28 August 1961— For wool use promotion . . . .

For wool research . . . . .

$1.00 per bale. 50c per fadge or butt. 12^c per bag. 20c per bale. 10c per fadge or butt. 3 |c per bag.

From 1 July 1964 . . . . . 13 per cent of the sale value of the wool

From 1 July 1965 . . . . . 2 per cent of the sale value of the wool

From 1 August 1970 . . . . . 1 per cent of the sale value of the wool

From 1 July 1973 . . . . . 2.4 per cent of the sale value of the wool

From 1 July 1974 ......................................... 2.75 per cent of the sale value of the wool

From 2 September 1974 . . . . 7.75 per cent of the sale value of the wool

COLLECTION OF TAX Wool-brokers are required to lodge monthly returns in respect of wool which they sell, as also are registered wool-dealers in respect of wool which they purchase. Manufacturers are obliged to lodge monthly returns only if they

1 3 0

purchase or process wool that has not previously been subject to tax, e.g., wool purchased from or processed for a grower. Exporters also are obliged to lodge returns only in respect of wool that has not previously been subject to tax.

The returns of wool-brokers, registered wool-dealers and manufacturers are required to be lodged within twenty one days after the end of each month and to be accompanied by a remittance for the tax involved. The tax payable by a wool-broker is recoverable from the person on whose behalf the wool is sold.

Registered wool-dealers and manufacturers may deduct the tax payable on their purchases from the price paid to the sellers of the wool. Manufacturers who process wool for other persons may recover the tax payable on the wool from those persons.

Exporters do not lodge monthly returns but either lodge a return and pay the tax on each shipment prior to its being exported or enter into an arrangement with the Commissioner to lodge a return and pay the tax later. The due date for the return and tax in the latter cases is usually within a fixed period of time

after the wool has been disposed of overseas.

Amendments to the Acts

The Wool Tax Acts (Nos 1 to 5) were amended twice since the preparation of the 53rd Report.

The Wool Tax Acts (Nos l to 5) 1974 imposed for the period 2 September 1974 to 30 June 1975 the further tax of 5 per cent of the sale value of wool referred in ‘Rates of Tax’.

The Wool Tax Acts (Nos 1 to 5) 1975 continued that further tax in force for the period 1 July 1975 to 30 June 1976.

Statistics

REVENUE

Collections of wool tax for the financial years 1964-65 to 1974-75 are shown in the table below.

WOOL TAX COLLECTIONS Financial Years 1964-65 to 1974-75

F i n a n c i a l y e a r W o o l t a x c o l l e c t i o n s

1 9 6 4 - 6 5 .....................................................................................

s

1 3 ,9 8 6 ,7 2 8

1 9 6 5 - 6 6 ...................................................................................... 1 5 ,2 0 0 ,7 7 8

1 9 6 6 - 6 7 ..................................................................................... 1 4 ,8 6 8 ,7 1 6

1 9 6 7 - 6 8 ..................................................................................... 1 3 ,6 9 4 .1 3 4

1 9 6 8 - 6 9 ..................................................................................... 1 5 .2 7 1 .5 6 3

1 9 6 9 - 7 0 ..................................................................................... 1 4 ,0 2 7 ,9 9 9

1 9 7 0 - 7 1 ..................................................................................... 5 ,5 6 6 ,9 5 2

1 9 7 1 - 7 2 ..................................................................................... 5 ,4 9 5 ,7 0 4

1 9 7 2 - 7 3 ..................................................................................... 1 1 ,1 7 0 .2 0 2

1 9 7 3 - 7 4 ..................................................................................... 2 6 ,5 3 1 ,4 0 0

1 9 7 4 - 7 5 ..................................................................................... 6 4 ,2 8 7 ,9 0 1

131

The table below summarizes the information relating to quantities of wool included in wool tax returns for the financial years 1970-71 to 1974-75.

The table on page 133 summarizes information in respect of the value of wool subject to tax under the Wool Tax Acts (Nos 1 to 5) and included in monthly returns in respect of the period 1 July 1973 to 30 June 1975.

QUANTITIES OF TAXABLE WOOL SHOWN IN WOOL TAX RETURNS

Each Quarter of Financial Years 1970-71 to 1974-75

Q u a r t e r e n d e d B a le s B u tt s B ag s

1 9 7 0 - 7 1 — 3 0 S e p t e m b e r . . . . 1 ,0 1 6 ,4 0 1 3 ,8 9 9 3 2 ,4 5 7

31 D e c e m b e r . . . . 1 ,6 3 1 ,9 5 8 4 ,7 1 0 2 3 ,7 2 3

31 M a r c h . . . . 1 ,5 8 1 ,5 8 5 4 ,5 7 1 1 6 ,5 6 8

3 0 J u n e . . . . 1 ,4 1 4 ,1 8 7 3 ,5 9 9 1 4 ,9 2 5

Total for 1970-71 . . 5,644,131 16,779 87,673

1 9 7 1 - 7 2 — 3 0 S e p t e m b e r . . . . 8 2 8 ,1 5 1 3 ,6 3 6 1 3 ,6 8 6

31 D e c e m b e r . . . . 1 ,7 0 6 ,5 8 9 5 ,4 7 0 1 9 ,8 1 7

31 M a r c h . . . . 1 ,5 3 0 ,7 7 7 6 ,1 9 0 1 9 ,0 3 5

3 0 J u n e . . . . 1 ,2 9 1 ,2 4 4 6 ,3 9 4 2 2 ,9 8 8

Total for 1971-72 . . 5,356,761 21,690 75,526

1 9 7 2 - 7 3 — 3 0 S e p t e m b e r . . . . 9 5 7 ,7 7 1 7 ,3 9 3 2 1 ,2 5 4

31 D e c e m b e r . . . . 1 .4 5 7 ,6 8 4 1 3 ,8 6 4 4 2 ,5 6 7

31 M a r c h . . . . 1 ,1 0 4 ,0 5 0 8 ,3 7 2 3 3 ,8 4 2

3 0 J u n e . . . . 7 8 5 ,4 1 0 7 ,2 9 1 2 4 ,0 4 5

Total for 1972-73 . . 4,304,915 36,920 121,708

1 9 7 3 - 7 4 — 3 0 S e p t e m b e r . . . 8 0 2 ,4 6 4 6 ,7 0 1 2 6 ,1 7 4

31 D e c e m b e r . . . . 1 ,3 9 2 ,5 8 9 9 ,9 6 9 3 5 ,6 4 4

31 M a r c h . . . . 1 ,0 8 2 .4 4 2 7 ,4 1 6 2 6 ,9 2 8

3 0 J u n e . . . . 8 1 5 ,5 9 9 6 ,2 2 3 2 0 ,4 5 8

Total for 1973-74 . . 4,093,094 3 0 ,3 0 9 1 0 9 ,2 0 4

1 9 7 4 - 7 5 — 3 0 S e p t e m b e r . . . 6 9 1 ,9 8 0 4 ,6 2 7 1 4 ,6 7 3

31 D e c e m b e r . . . . 1 ,5 1 3 ,3 3 6 1 0 ,6 7 5 2 8 ,8 6 8

31 M a r c h . . . . 1 ,3 6 2 ,4 2 4 8 ,5 0 8 2 0 .5 8 9

3 0 J u n e . . . . 1 ,3 5 6 .1 6 1 7 ,7 7 2 1 2 ,2 9 4

Total for 1 9 7 4 - 7 5 . . 4 ,9 2 3 ,9 0 1 3 1 ,5 8 2 7 6 ,4 2 4

1 3 2

VALUE OF WOOL INCLUDED IN WOOL TAX RETURNS

Each Quarter of Financial Years 1973-74 and 1974-75

O f f ic e B r o k e r s D e a l e r s

M a n u ­

f a c t u r e r s

D i r e c t

e x p o r t

T o t a l

s $ $ s s

Q U A R T E R E N D E D 3 0 S E P T E M B E R 1 9 7 3

N e w S o u t h W a l e s . . . 4 3 ,0 7 6 ,8 3 5 8 ,5 6 9 ,2 4 5 5 1 ,6 4 6 ,0 8 0

V i c t o r i a . . . . . 4 0 ,7 2 1 ,2 1 2 1 2 ,3 1 5 ,8 0 7 2 9 7 ,4 6 5 2 4 ,1 0 4 5 3 ,3 5 8 ,5 8 8

Q u e e n s l a n d . . . . 3 8 ,2 2 1 ,3 9 0 3 ,4 5 5 ,6 0 3 3 9 ,8 7 7 4 1 ,7 1 6 ,8 7 0

S o u t h A u s t r a l i a . . . 3 4 ,0 9 4 ,7 8 3 3 ,5 6 3 ,1 1 7 2 ,5 7 3 ,8 6 5 4 0 ,2 3 1 ,7 6 5

W e s t e r n A u s t r a l i a . . . 3 4 ,3 6 9 ,0 5 9 4 1 ,7 6 4 ,5 5 3 3 ,5 6 0 7 6 ,1 3 7 ,1 7 2

T a s m a n i a . . . . 2 5 8 ,8 6 3 2 6 8 ,6 9 6 7 ,1 3 7 5 3 4 ,6 9 6

Total . . . . 190,742,142 69,937,021 2,878,467 67,541 263,625,171

Q U A R T E R E N D E D 31 D E C E M B E R 1 9 7 3

N e w S o u t h W a l e s . . . 8 0 ,5 3 5 ,9 4 8 6 ,1 2 4 ,2 1 1 8 6 ,6 6 0 ,1 5 9

V i c t o r i a . . . . . 1 0 4 ,7 6 8 ,4 3 2 1 1 ,3 9 3 ,1 0 6 1 6 7 ,1 1 0 1 3 3 ,0 0 1 1 1 6 ,4 6 1 ,6 4 9

Q u e e n s l a n d . . . . 2 5 ,3 6 2 ,3 3 1 1 ,8 1 7 ,1 4 6 2 1 ,3 7 3 2 7 ,2 0 0 ,8 5 0

S o u t h A u s t r a l i a . . . 5 1 ,9 5 8 ,4 5 6 2 ,5 3 2 ,8 3 6 2 ,3 4 0 ,3 5 5 3 ,1 1 4 5 6 ,8 3 4 ,7 6 1

W e s t e r n A u s t r a l i a . . . 6 3 ,6 8 9 ,5 7 1 4 2 ,0 2 3 ,9 9 2 1 0 5 ,7 1 3 ,5 6 3

T a s m a n i a . . . . 1 4 ,2 3 5 ,3 6 8 6 8 0 ,5 1 2 2 ,1 6 7 8 ,1 3 4 1 4 ,9 2 6 ,1 8 1

Total . . . . 340,550,106 64,571,803 2,509,632 165,622 407,797,163

Q U A R T E R E N D E D 31 M A R C H 1 9 7 4

N e w S o u t h W a l e s . . . 6 3 ,4 9 1 ,7 2 8 3 ,1 5 3 ,3 9 0 6 6 ,6 4 5 ,1 1 8

V i c t o r i a . . . . . 9 2 ,5 1 2 ,2 8 8 4 ,1 8 5 ,1 7 0 2 6 2 ,1 3 1 2 6 ,5 6 5 9 6 ,9 8 6 ,1 5 4

Q u e e n s l a n d . . . . 1 5 ,3 2 5 ,4 9 9 3 9 6 ,6 8 8 1 5 ,7 2 2 ,1 8 7

S o u t h A u s t r a l i a . . . . 3 4 ,2 1 4 ,3 2 3 1 ,0 3 7 ,0 4 7 7 7 3 ,1 4 3 3 6 .0 2 4 ,5 1 3

W e s t e r n A u s t r a l i a . . . 3 8 ,1 0 8 ,7 0 1 1 1 ,5 1 2 ,5 2 2 1 ,3 8 4 4 9 ,6 2 2 ,6 0 7

T a s m a n i a . . . . 8 ,9 6 8 ,0 5 5 3 0 3 ,8 5 5 5 ,5 5 0 9 ,2 7 7 ,4 6 0

Total . . . . 252,620,594 20,588,672 1,040,824 27,949 274,278,039

Q U A R T E R E N D E D 3 0 J U N E 1 9 7 4

N e w S o u t h W a l e s . . . 3 2 ,7 2 5 ,2 3 3 2 ,6 6 7 ,2 1 4 3 5 ,3 9 2 ,4 4 7

V i c t o r i a . . . . . 5 2 ,1 9 4 ,5 5 0 3 ,7 5 7 ,4 3 7 4 6 6 ,4 6 9 5 2 ,4 7 9 5 6 ,4 1 8 ,4 5 6

Q u e e n s l a n d . . . . 2 2 ,7 6 4 ,6 7 0 7 9 3 ,8 1 7 5 ,5 5 3 2 3 ,5 6 4 ,0 4 0

S o u t h A u s t r a l i a . . . 1 6 ,9 2 3 ,2 3 4 9 5 5 ,6 7 4 4 8 8 ,7 3 6 1 8 ,3 6 7 ,6 4 4

W e s t e r n A u s t r a l i a . . . 2 4 ,6 9 1 ,5 9 3 6 ,0 4 5 ,1 4 4 3 0 ,7 3 6 ,7 3 7

T a s m a n i a . . . . 4 ,4 2 0 ,0 2 6 9 9 ,3 1 2 1 7 ,4 6 8 4 ,5 3 6 ,8 0 6

T o t a l . . . . 153,719,306 14,318,598 955,205 75,500 169,016,130

133

VALUE OF WOOL INCLUDED IN WOOL RETURNS— continued

O ffic e B r o k e r s D e a l e r s

M a n u ­

f a c t u r e r s

D i r e c t e x p o r t

T o t a l

$ $ $ $ s

Q U A R T E R E N D E D 3 0 S E P T E M B E R 1 9 7 4

N e w S o u t h W a l e s . . . 2 6 ,1 4 0 ,0 8 8 3 ,3 0 1 ,2 1 7 7 ,1 7 1 2 9 ,4 4 8 .4 7 7

V i c t o r i a . . . . . 1 7 ,5 0 0 ,1 5 4 3 ,6 4 6 ,3 2 2 8 5 ,2 7 3 5 0 8 ,6 7 9 2 1 ,7 4 0 ,4 2 8

Q u e e n s l a n d . . . . 1 3 ,2 8 0 ,6 9 2 5 9 8 ,3 0 7 • · 1 3 ,8 7 8 ,9 9 9

S o u t h A u s t r a l i a . . . 1 3 ,8 9 8 ,5 2 7 1 ,9 3 8 ,1 1 9 1 ,5 7 3 ,5 8 7 1 7 ,4 1 0 ,2 3 3

W e s t e r n A u s t r a l i a . . . 1 9 ,2 4 1 ,7 9 5 1 6 ,2 6 8 ,0 3 6 3 5 ,5 0 9 ,8 3 1

T a s m a n i a . . . . 2 6 3 , 3 2 4 1 5 6 ,0 4 6 8 3 1 . . 4 2 0 ,2 0 1

Total . . . . 90,324,580 25,908,047 1,659,691 515,850 118,408,168

Q U A R T E R E N D E D 31 D E C E M B E R 1 9 7 4

N e w S o u t h W a l e s . . . 5 0 , 6 2 8 ,9 3 4 9 ,2 8 3 ,5 5 6 5 9 ,9 1 2 ,4 9 0

V i c t o r i a . . . . . 7 3 ,0 7 7 ,1 5 2 7 ,4 1 6 ,1 5 7 1 1 2 ,2 5 6 8 4 7 ,6 6 2 8 1 ,4 5 3 ,2 2 7

Q u e e n s l a n d . . . . 2 2 ,7 1 0 ,4 1 0 9 9 2 ,2 9 1 2 3 ,7 0 2 ,7 0 1

S o u t h A u s t r a l i a . . . 2 7 ,4 3 1 ,4 5 9 3 ,7 3 6 ,7 1 0 2 ,5 4 2 ,0 8 2 3 3 ,7 1 0 ,2 5 1

W e s t e r n A u s t r a l i a . . . 5 4 ,3 6 7 ,4 7 6 2 1 ,7 3 2 ,5 0 3 7 6 ,0 9 9 ,9 7 9

T a s m a n i a . . . . 9 ,9 4 2 ,0 9 5 4 8 8 ,1 2 3 1 2 ,5 6 9 1 0 ,4 4 2 ,7 8 7

Total . . . . 238,157,526 43,649,340 2,654,338 860,231 285,321,435

Q U A R T E R E N D E D 31 M A R C H 1 9 7 5

N e w S o u t h W a l e s . . . 5 8 ,0 2 6 ,9 0 5 4 ,3 9 3 ,0 4 5 6 2 ,4 1 9 ,9 5 0

V i c t o r i a . . . . . 7 7 ,2 3 5 ,3 5 4 5 ,0 9 5 ,1 1 1 1 5 3 ,0 9 8 3 2 2 ,1 7 6 8 2 ,8 0 5 ,7 3 9

Q u e e n s l a n d . . . . 2 0 ,1 6 3 ,4 2 1 8 7 5 ,0 0 3 2 1 ,0 3 8 ,4 2 4

S o u t h A u s t r a l i a . . . 2 7 ,5 7 3 ,7 9 3 2 ,0 0 2 ,4 7 4 1 ,0 1 8 ,6 2 8 3 0 ,5 9 4 ,8 9 5

W e s t e r n A u s t r a l i a . . . 4 1 ,6 8 4 ,6 8 0 9 ,2 6 9 ,9 4 6 5 0 ,9 5 4 ,6 2 6

T a s m a n i a . . . . 7 ,7 8 8 ,0 9 4 2 9 1 ,2 0 6 6 6 5 8 ,0 7 9 ,9 6 5

Total . . . . 232,472,247 21,926,785 1,172,391 322,176 255,893,599

Q U A R T E R E N D E D 3 0 J U N E 1 9 7 5

N e w S o u t h W a l e s . . . 5 6 ,8 2 1 ,4 4 9 4 ,8 7 0 ,7 8 7 2 4 ,1 0 0 6 1 ,7 1 6 ,3 3 6

V i c t o r i a . . . . . 6 5 ,3 5 8 .1 0 2 4 ,6 3 6 ,0 7 1 4 1 8 ,3 2 3 2 6 9 ,0 8 9 7 0 ,6 8 1 ,5 8 5

Q u e e n s l a n d . . . . 2 1 ,9 4 2 ,9 7 7 1 ,5 8 7 ,2 5 3 2 3 ,5 3 0 ,2 3 0

S o u t h A u s t r a l i a . . . 3 4 ,1 4 0 ,2 1 4 1 ,3 4 0 ,5 1 2 9 2 8 ,8 1 7 3 6 ,4 0 9 ,5 4 3

W e s t e r n A u s t r a l i a . . . 3 8 ,2 4 5 ,7 7 8 6 ,1 0 7 ,2 1 0 4 4 ,3 5 2 ,9 8 8

T a s m a n i a . . . . 4 ,0 7 7 ,0 7 3 1 9 5 ,6 7 5 5 6 5 1 2 .1 5 5 4 ,2 8 5 ,4 6 8

Total . . . . 220,585,593 18,737,508 1,347,705 305,344 240,976,150

1 3 4

S T E V E D O R I N G I N D U S T R Y C H A R G E

The stevedoring industry charge has operated since 22 December 1947. The proceeds from the charge are applied to finance:

(a) payments to regular waterside workers in permanent and continuous ports for long service leave, pensions, redundancy and shifts for which workers are available but are not required to work; (b) payments to workers in non-continuous and seasonal ports, to non­

permanent workers in non-permanent continuous ports and to irregular workers in all ports for attendance money, long service leave, annual leave and sick leave.

LEGISLATION

The laws relating specifically to the stevedoring industry charge at 30 June 1975 were:

Stevedoring Industry Charge Assessment Act 1947-1973.

Stevedoring Industry Charge Act 1947-1973.

Stevedoring Industry Charge Assessment Regulations.

Stevedoring Industry Charge Regulations.

SCOPE OF THE CHARGE

The charge is based on the number of man-hours worked and is payable by employers of waterside workers. For the purpose of the charge there are three classes (A, B and C) of waterside workers.

Class A waterside workers are permanent waterside workers in permanent and continuous ports, Class B are regular casual waterside workers in continuous ports and Class C are regular casual waterside workers in non-continuous and seasonal ports and irregular workers in all ports.

RATE OF CHARGE

The Stevedoring Industry Charge Act provides that the rates of charge shall be an amount prescribed for the time being which shall not exceed:

for Class A waterside workers— SI.50 per man-hour for Class B waterside workers— $1.75 per man-hour for Class C waterside workers— SI.20 per man-hour

The rates of charge at 30 June 1975 were:

for Class A waterside workers— SI.40 per man-hour for Class B waterside workers— SI.75 per man-hour for Class C waterside workers— $1.15 per man-hour

135

The rates of charge since the date of commencement have been as follows:

From 22 December 1947 . . . . 3fc per man-hour

From 11 October 1949 . . . . 21/ lgc per man-hour

From 4 December 1951 . . . . 3ic per man-hour

From 28 October 1952 . . . . 9c per man-hour

From 4 May 1954 . . . . . 5c per man-hour

From 30 October 1956 . . . . 15fc per man-hour

From 21 May 1957 . . . . . 20c per man-hour

From 1 April 1958 . . . . . 30c per man-hour

From 1 July 1959 . . . . . 25c per man-hour

From 1 April 1962 . . . . . 33ic per man-hour

From 8 March 1967 . . . . . 48c per man-hour

From 27 November 1967—Class A . . $16.85 per man-week Class B . . 80c per man-hour

Class C . . 55c per man-hour

From 15 February 1971— Class A . $17.55 per man-week

Class B . . 80c per man-hour

Class C . . 55c per man-hour

From 31 May 1971 — Class A . . 65c per man-hour

Class B . . $1.20 per man-hour

Class C . . 82c per man-hour

From 10 February 1972— Class A . . $1 per man-hour

Class B . $1.20 per man-hour

Class C . . 82c per man-hour

From 27 July 1973 — Class A . . $1.07 per man-hour

Class B . . $1.60 per man-hour

Class C . . $1.15 per man-hour

From 22 December 1974— Class A . . $1.40 per man-hour

Class B . . $1.75 per man-hour

Class C . . $1.15 per man-hour

ASSESSMENT AND COLLECTION OF THE CHARGE Returns are required to be lodged monthly by employers of waterside labour accompanied by remittance covering the charge payable.

Amendments to the Acts

There were no amendments to the stevedoring industry charge Acts during the period covered by this Report.

1 3 6

Statistics

STEVEDORING INDUSTRY CHARGE COLLECTIONS Financial Years 1964-65 to 1974-75

Y e a r

S t e v e d o r i n g i n d u s t r y

c h a r g e c o l l e c t i o n s

$

1 9 6 4 - 6 5 ..................................................................................... 1 0 ,4 1 0 ,8 1 0

1 9 6 5 - 6 6 ..................................................................................... 9 ,5 3 1 ,1 4 3

1 9 6 6 - 6 7 ..................................................................................... 9 ,7 5 8 ,3 6 1

1 9 6 7 - 6 8 ..................................................................................... 1 4 ,2 5 8 ,5 1 0

1 9 6 8 - 6 9 ..................................................................................... 1 4 ,4 7 9 ,5 4 3

1 9 6 9 - 7 0 ..................................................................................... 1 3 ,8 0 0 ,8 1 3

1 9 7 0 - 7 1 ..................................................................................... 1 3 ,2 4 2 ,4 3 6

1 9 7 1 - 7 2 ..................................................................................... 1 6 ,2 7 6 ,7 4 1

1 9 7 2 - 7 3 ..................................................................................... 1 7 ,9 7 1 ,0 7 2

1 9 7 3 - 7 4 ..................................................................................... 2 0 ,2 0 3 ,1 0 4

1 9 7 4 - 7 5 ..................................................................................... 2 2 ,4 1 1 ,1 4 2

Other statistics relating to the collection of the stevedoring industry charge are to be found in Part H of ‘Taxation Statistics 1973-74’, the supplement to the Fifty-third Report.

13 7

T O B A C C O C H A R G E

The tobacco charge came into operation on 1 January 1956. The proceeds of the charge are used in research and otherwise with a view to fostering and expanding the Australian tobacco industry.

LEGISLATION The laws relating specifically to the tobacco charge at 30 June 1975 were:

Tobacco Charges Assessment A ct 1955-1973. Tobacco Charge Act (No. 1) 1955-1966. Tobacco Charge A ct (No. 2) 1955. Tobacco Charge Act (No. 3) 1955. Tobacco Charges Regulations.

Tobacco (Rate of Charge) Regulations.

SCOPE OF THE CHARGE Tobacco charge is imposed on growers of tobacco in respect of leaf sold by them to manufacturers and on manufacturers in respect of Australian leaf used by them in the manufacture of goods for smoking.

RATES OF CHARGE The Tobacco Charge Act (No. 1) 1955-1966 provides that the charge on leaf sold to a manufacturer is one half cent per pound or such lower rate as may be prescribed by regulation.

The Tobacco Charge Act (No. 2) 1955 provides that the charge on leaf purchased by a manufacturer is twice the charge for the time being in force under the Tobacco Charge Act (No. 1) 1955-1966.

The Tobacco Charge Act (No. 3) 1955 also relates the charge on leaf used by grower-manufacturers directly to the charge imposed by the Tobacco Charge Act (No. 1) 1955-1966.

The rates of tobacco charge at present in force are as follows:

(a) in respect of leaf sold to a manufacturer— (i) 1.1 cents per kilogram of leaf payable by the grower or other person who owns the leaf immediately before sale; (ii) 2.2 cents per kilogram of leaf payable by the manufacturer. (The

latter charge is not payable if the manufacturer is a growers’ co-operative association which acquires not less than nine-tenths of its leaf purchases from its shareholders.) (b) in respect of leaf grown and used by grower-manufacturers—

(i) where the manufacturer grows nine-tenths of the leaf used by him— 1.1 cents per kilogram of leaf; (ii) in other cases—2.2 cents per kilogram of leaf.

1 39

ASSESSMENT AND COLLECTION OF CHARGE

Returns with remittances for the charge payable are required to be lodged quarterly by: (

(c) manufacturers who purchase leaf except where they arrange for brokers to pay the tax on their behalf; and (d) grower-manufacturers.

The broker is responsible for the payment of the charge levied on the person selling leaf through him to a manufacturer. By arrangement with the manufacturer the broker may also pay the charge on the leaf purchased through him by the manufacturer. In these cases the broker recoups the charges paid by him from the grower and manufacturer.

Amendments to the Acts

There were no amendments to the tobacco charge Acts during the period covered by this Report.

Statistics

Collections of tobacco charge for the financial years 1964-65 to 1974-75 are shown in the table below.

TOBACCO CHARGE COLLECTIONS Financial years 1964-65 to 1974-75

Y e a r

T o b a c c o c h a r g e

c o l l e c t i o n s

s

1 9 6 4 - 6 5 ..................................................................................... 3 5 3 ,7 8 0

1 9 6 5 - 6 6 ..................................................................................... 3 6 9 ,3 5 8

1 9 6 6 - 6 7 ..................................................................................... 3 8 0 ,2 0 7

1 9 6 7 - 6 8 ..................................................................................... 4 2 6 ,9 5 6

1 9 6 8 - 6 9 ...................................................................................... 3 1 3 ,1 1 8

1 9 6 9 - 7 0 ..................................................................................... 5 3 8 ,9 5 2

1 9 7 0 - 7 1 ...................................................................................... 5 0 2 ,3 7 2

1 9 7 1 - 7 2 ..................................................................................... 5 6 7 ,2 4 4

1 9 7 2 - 7 3 ...................................................................................... 5 0 9 ,5 4 6

1 9 7 3 - 7 4 ..................................................................................... 5 3 5 ,3 5 3

1 9 7 4 - 7 5 ..................................................................................... 5 0 4 ,8 3 8

Other statistics of tobacco charge for the financial years 1972-73 and 1973-74 are given in Part J of ‘Taxation Statistics 1973-74’, the supplement to the Fifty-third Report.

1 4 0

C A N N I N G - F R U I T C H A R G E

The canning-fruit charge was introduced to provide funds for the promotion of sales overseas and in Australia of canned apricots, peaches and pears and canned mixed fruit that includes apricots, peaches or pears. It came into operation on 2 December 1959, but fruit falling within the scope of the charge delivered to canneries on and after 15 November 1959 was subject to the charge.

LEGISLATION The laws relating specifically to canning-fruit charge at 30 June 1975 were: Canning-Fruit Charge {Administration) Act 1959-1973. Canning-Fruit Charge A ct 1959-1973.

Canning-Fruit Charge Regulations.

SCOPE OF THE CHARGE The charge applies to apricots, peaches and pears accepted at canneries as fruit of canning quality or which are taken into the canneries for use in the production

of canned fruit.

RATE OF CHARGE The Canning-Fruit Charge Act 1959-1973 provides that the rate of the charge is $1.00 per tonne of fruit or such lesser rate as is prescribed from time to time. Before making regulations which fix the rate of charge the Governor-General

takes into consideration recommendations made by the Australian Canned Fruit Sales Promotion Committee.

The rates of charge since the date of commencement have been:

COLLECTION OF THE CHARGE The charge is borne by the person who supplies the fruit to the cannery. Usually this is the grower of the fruit. In practice, however, the charge is paid to the Taxation Office by the canner, who recoups the tax from amounts payable by

him to the supplier of the fruit. The charge is payable to the Taxation Office before any payment is made by the canner to the supplier for his fruit. Regular periodical returns for the purpose of the charge are not necessary but canners forward appropriate information to the Taxation Office at the time the charge

is paid.

$

From 15 November 1959 From 7 December 1960 From 27 November 1961 From 1 December 1962 From 1 December 1963

From 1 December 1964 From 10 December 1971 Since 1 December 1973

1.00 per ton 0.50 per ton 1.00 per ton 0.75 per ton 0.50 per ton

0.75 per ton 1.00 per ton 1.00 per tonne

141

Amendments to the Acts

There were no amendments to the Canning-Fruit Charge Acts during the period covered by this Report.

Statistics

C A N N I N G - F R U I T C H A R G E C O L L E C T I O N S

Financial Year 1964-65 to 1974-75

Y e a r

C a n n i n g - f r u i t

c h a r g e c o l l e c t i o n s

$

1 9 6 4 - 6 5 ..................................................................................... 1 0 1 ,5 8 8

1 9 6 5 - 6 6 ..................................................................................... 1 1 9 ,9 3 0

1 9 6 6 - 6 7 ..................................................................................... 1 1 6 ,4 7 0

1 9 6 7 - 6 8 ..................................................................................... 1 2 3 ,1 9 9

1 9 6 8 - 6 9 ..................................................................................... 1 6 3 ,7 1 4

1 9 6 9 - 7 0 ..................................................................................... 9 9 ,0 5 1

1 9 7 0 - 7 1 ..................................................................................... 2 1 8 ,4 0 3

1 9 7 1 - 7 2 ..................................................................................... 1 7 0 ,5 6 8

1 9 7 2 - 7 3 ..................................................................................... 1 3 6 ,4 8 5

1 9 7 3 - 7 4 ..................................................................................... 1 8 2 ,8 2 9

1 9 7 4 - 7 5 ..................................................................................... 1 0 8 ,3 7 3

Other statistics relating to the collection of canning-fruit charge are included in Part K of ‘Taxation Statistics 1973-74’, the supplement to the Fifty-third Report.

1 4 2

EXCHANGE CONTROL—TAX CLEARANCE CERTIFICATES

The Taxation Office screens certain exchange control applications for the purposes of deterring, detecting and curtailing the use of tax havens in schemes to avoid or evade Australian taxes. The comprehensive legislation governing this tax screening came into operation on 23 December 1974.

Legislation

The laws dealing with the tax screening arrangements as at 30 June 1975 were: Banking A ct 1959-1974 Banking (Foreign Exchange) Regulations Taxation Administration Act 1953-1974.

Section 3 9 b of the Banking Act 1959-1974— which was inserted in the law by the Banking Act 1974 (Act No. 132 of 1974)—provides for the Reserve Bank, in particular cases, to refuse an application for exchange control approval made to it under the Banking (Foreign Exchange) Regulations unless there is produced

to the Bank a tax clearance certificate issued by the Commissioner of Taxation. The Treasurer is given authority by section 3 9 b (2) of the Banking Act to direct by notice published in the Gazette that classes of transactions are to be subjected to this tax screening process. If a proposed transaction falls within such a class

or if the Reserve Bank considers that any other exchange control application should be subjected to tax screening, the Bank requires the applicant to obtain from the Commissioner, under the Taxation Administration Act, a tax clearance certificate. A direction by the Treasurer for purposes of this procedure was published in Gazette No. 1 0 3 e of 23 December 1974.

Part IV of the Taxation Administration Act 1953-1974— which was incorpor­ ated in the Principal Act by the Taxation Administration Act 1974 (Act No. 133 of 1 9 7 4 ) —provides the machinery by which and the rules under which the

Commissioner may issue a tax clearance certificate.

Broadly, an application for a tax clearance certificate in respect of a proposed transaction that, by reason of the exchange control regulations can only be made with the authority of the Reserve Bank, may be made under section 1 4 b of the Taxation Administration Act where—

(a) the transaction for which approval is sought is of a kind specified in a direction by the Treasurer given under section 39b (2) of the Banking Act; or (b) the Bank has declined, under section 39b ( 1) (b ) of the Banking Act,

to grant exchange control approval without a tax clearance certificate being provided by the Commissioner.

Sections 14c a n d 1 4 d of the Taxation Administration Act have the effect that the Commissioner is to issue a tax clearance certificate if the applicant satisfies him that the transaction in respect of which the certificate is sought does not involve the avoidance or evasion of Australian tax. Tests for determining whether

transactions are to be classes as in the avoidance or evasion category are included

1 43

in the law and the Commissioner is authorized to act on the basis of appropriate undertakings as well as to issue a clearance certificate where the adverse tax implications are of minor importance.

Should the Commissioner decline to issue a tax clearance certificate he is required to advise the applicant accordingly and the applicant is given, by section 1 4 g , rights of formal objection against this refusal. If the Commissioner does not

then issue a clearance certificate the applicant may, under section 1 4 h , have the matter referred to one of the Boards of Review that is set up to hear objections against decisions of the Commissioner under other taxation laws. There is a right of appeal to the High Court on any question of law involved in a decision of a Board of Review.

Other sections of Part IV of the Taxation Administration Act 1953-1974 contain provisions for the maintenance of secrecy by taxation officers in their handling of applications for tax clearance certificates and for obtaining relevant information.

Operation of the Screening Arrangements

Since the commencement of the legislation on 23 December 1974 and up to 30 June 1975, 1223 applications for certificates have been received. Tax clearance certificates have been issued in the vast majority of these cases. However, the operation of legislation of this kind is not to be measured on the basis of the number of certificates issued or refused. Rather, the legislation’s effectiveness is to be judged on the basis that its existence, together with the prospect of screening by the Taxation Office of proposals so designed to avoid or evade Australian tax, will act as a bar to the bringing forward of such plans. The tax avoidance or evasion schemes that would, but for the tax screening arrangements, have been entered into and which are not submitted to the Taxation Office, cannot of course enter into any statistic.

144

BREACHES AND EVASIONS—SCHEDULES I TO IV

Imposition of Additional Tax: Year Ended 30 June 1974

Supplementary to Schedules A2, B1 and Cl (pages 49, 52 and 53), Schedules I, II and III below set out, in pursuance of section 14 of the Income Tax Assessment Act and corresponding provisions in the Sales Tax and Pay-roll Tax Assessment Acts, specific cases in which additional tax has been imposed. Schedule IV records variations to amounts of additional tax published in previous reports.

The statutory additional tax in the case of omissions from returns is double the amount of the tax avoided. In the majority of cases, however, part of the statutory additional tax has been remitted after consideration of explanations from the taxpayers.

The cases listed below reached finality in the year ended 30 June 1974. To the extent that the additional tax was imposed during the year ended 30 June 1974, these cases are included also in Schedules A2, B1 and Cl. In other cases, however, the additional tax was imposed before 1 July 1973.

Income Tax

U N D E R S T A T E M E N T O F T A X A B L E I N C O M E

Schedule I

The following taxpayers have been charged additional tax under section 226 (2.) of the Income Tax Assessment Act. This sub-section reads as follows:

‘226.—(2.) Any taxpayer who omits from his return any assessable income, or includes in his return as a deduction for expenditure incurred by him an amount in excess of the expenditure actually incurred by him, shall be liable to pay as additional tax an amount equal to double the difference between the tax properly payable by him and the tax that would be payable if it were assessed upon the basis of the return furnished by him, or the amount of Two dollars, whichever is the greater.’

For some of the taxpayers listed below, particulars are included in relation to returns which were lodged during the course of an investigation into the taxpayer’s affairs and which attracted additional tax under section 226 (1.) of the Act. This sub-section provides for the imposition of additional tax in cases of failure to furnish returns or information as and when required.

A taxpayer is listed in this Schedule only where:

(i) he has understated his taxable income; (ii) he did not voluntarily make a full and true disclosure of the understated taxable income; (iii) the amount of the statutory additional tax under section 226 (2.), after any remission,

exceeds $500 and the total additional tax—including any amount under section 226 (1.)—is more than 25 per cent of the tax avoided; and (iv) the case has reached finality in the sense that the taxpayer has exhausted all his rights of objection and appeal.

N ote—For individual taxpayers a brief form of residential address is shown in column (1) together with the full name of the taxpayer. The address shown is that of the taxpayer in the final year of the period of the understatement of income.

145

I N C O M E T A X

U nderstatement of Taxable Income S c h e d u le I — continued

N a m e a n d a d d r e s s

S e e N o t e p a g e 1 4 5

( 1 )

O c c u p a t i o n

( 2 )

F i n a n c i a l y e a r

o r y e a r s

( 3 )

U n d e r ­

s t a t e m e n t

o f t a x a b l e

i n c o m e

( 4 )

I n c r e a s e i n

t a x

a s s e s s e d

( 5 )

A d d i t i o n a l

t a x

c h a r g e d

( 6 )

I n d i v i d u a l s

N E W S O U T H W A L E S

$

1

$ $

A d a m s , N e i m u r G r a c e .

D e n i l i q u i n

G r a z i e r . . 1 9 6 3 - 6 4 t o 1 9 6 8 - 6 9 3 ,4 7 6 1 , 9 8 3 . 7 9 9 8 9 . 0 0

A d a m s , R o b e r t . .

( d e c e a s e d ) D e n i l i q u i n

G r a z i e r . . 1 9 6 3 - 6 4 t o 1 9 6 7 - 6 8 2 ,6 1 1 1 ,5 5 5 . 2 4 7 7 5 . 0 0

A p p e l , G o d f r e y H u g h .

R o s e v i l l e

M e d i c a l p r a c t i t i o n e r 1 9 6 6 - 6 7 t o 1 9 7 1 - 7 2 1 1 ,8 2 2 4 , 7 7 7 . 2 8 j 1 , 7 7 4 . 0 0

A p p s , S t a n l e y S y l v e s t e r .

M a c l e a n

F i s h e r m a n . . 1 9 6 5 - 6 6 t o 1 9 7 0 - 7 1 1 5 ,9 0 7 2 , 0 2 6 . 7 3 1 , 0 1 0 . 0 0

A v i s , L e o n a r d C h a r l e s .

C o o g e e

W h o l e s a l e r . . 1 9 6 6 - 6 7 t o 1 9 7 1 - 7 2 1 0 ,0 7 9 4 , 0 0 7 . 0 1 2 , 0 0 1 . 0 0

B a l l a r d , L e s l e y J a m e s .

T o u k l e y

B r i c k l a y e r . . 1 9 6 7 - 6 8 t o 1 9 7 1 - 7 2 1 7 ,3 9 3 3 , 1 2 2 . 0 4 1 , 5 5 9 . 0 0

B e c h a r a , J o s e p h . .

G r a n v i l l e

C o m p a n y d i r e c t o r . 1 9 6 5 - 6 6 t o 1 9 7 0 - 7 1 1 4 ,2 1 3 4 , 4 5 2 . 3 0 1 , 5 5 5 . 0 0

B e l l , F r e d e r i c k J a m e s .

G r i f f i t h

B o o k m a k e r . . 1 9 6 8 - 6 9 1 3 ,0 2 1 2 , 1 6 4 . 1 9 1 , 0 8 2 . 0 0

B e l l , M e r v y n S t a n l e y

G e o r g e

Y a g o o n a

M i l k v e n d o r . . 1 9 6 8 - 6 9 t o 1 9 7 0 - 7 1 5 ,0 0 4 1 , 1 9 7 . 1 4 5 9 8 . 0 0

B e l l, P h y l l i s B e r t h a .

Y a g o o n a

M i l k v e n d o r . . 1 9 6 8 - 6 9 t o 1 9 7 1 - 7 2 5 ,5 7 6 1 ,0 5 2 . 6 3 5 2 4 . 0 0

B e l l a t o , A l f o n s o . .

G u i l d f o r d

C o m p a n y d i r e c t o r . 1 9 6 5 - 6 6 t o 1 9 6 9 - 7 0 1 2 ,4 8 5 3 , 9 6 2 . 3 2 1 , 9 7 8 . 0 0

B e n n e t t , E r i c . .

W o o l g o o l g a

B a n a n a g r o w e r a n d

g r a z i e r

1 9 6 6 - 6 7 t o 1 9 7 1 - 7 2 3 7 ,4 6 9 1 3 , 7 0 5 . 0 6 6 , 8 5 0 . 0 0

B i a n c h i n o , A n t o n i o .

G u n n e d a h

P a i n t e r . . . 1 9 6 6 - 6 7 t o 1 9 7 1 - 7 2 9 ,2 8 3 2 , 8 7 8 . 2 5 . 1 , 4 3 6 . 0 0

B l a c k , C l i v e J o h n . .

( d e c e a s e d ) I n g l e b u r n

P r o p e r t y o w n e r . 1 9 5 6 - 5 7 t o 1 9 6 4 - 6 5 5 4 ,5 9 9 1 9 ,9 2 1 . 3 0

1

5 , 0 7 8 . 7 0

B l i g h t , J o h n G o r d o n .

K y l e B a y

R e a l e s t a t e a g e n t . 1 9 6 8 - 6 9 a n d 1 9 6 9 - 7 0 7 ,0 3 0 3 , 6 8 7 . 6 6 1 , 8 4 2 . 0 0

B o a r d , S h i r l e y P a t r i c i a .

B o n d i B e a c h

M a n a g e r e s s . . 1 9 6 7 - 6 8 t o 1 9 7 0 - 7 1 5 ,0 0 9 1 , 4 6 3 . 5 4 i 7 3 0 . 0 0

B o g d a n , A n d r e w . .

C e n t e n n i a l P a r k

S u r g e o n . . 1 9 6 4 - 6 5 t o 1 9 6 9 - 7 0 2 0 ,7 4 7 8 , 5 3 3 . 4 2 3 , 8 3 7 . 0 0

B r u c e , R o d e r i c k . .

W a v e r l e y

P l u m b e r a n d c o m ­

p a n y d i r e c t o r

1 9 6 9 - 7 0 a n d 1 9 7 0 - 7 1 3 ,6 6 2 1 ,4 7 1 .4 7 7 3 4 . 0 0

B r u z z e , A n n a . .

B a l m o r a l B e a c h

G r e e n g r o c e r . . 1 9 6 5 - 6 6 t o 1 9 7 0 - 7 1 2 0 ,6 8 3 7 , 0 2 3 . 4 4 3 , 5 1 0 . 0 0

B r u z z e , L e o . . .

B a l m o r a l B e a c h

G r e e n g r o c e r . . 1 9 6 5 - 6 6 t o 1 9 7 0 - 7 1 2 0 ,6 8 3 ! 7 , 1 5 0 . 3 3 3 , 5 7 4 . 0 0

B r y a n t , G o r d o n M e r v y n

W o l l o n g b a r

F a r m e r . . . 1 9 6 6 - 6 7 t o 1 9 7 1 - 7 2 1 8 ,7 5 6 3 , 1 8 5 . 0 0 1 , 5 8 8 . 0 0

B r y a n t , W e s l e y P a r s o n s

W o l l o n g b a r

F a r m e r . . . 1 9 6 6 - 6 7 t o 1 9 7 1 - 7 2 1 9 ,0 0 0 3 , 9 2 8 . 3 6 1 1 , 9 6 2 . 0 0

B u r g e s s , M e r v y n S y d n e y J

R i v e r s t o n e

Watchmaker . . | 1 9 6 6 - 6 7 t o 1 9 7 1 - 7 2 1 9 ,0 0 5 6 , 8 4 4 . 9 5 3 , 4 1 9 . 0 0

B u r n s , R e x R o b e r t . |

P a n a n i a

M a n a g e r . . 1 1 9 6 8 - 6 9 t o 1 9 7 1 - 7 2 4 ,9 0 5 1 ,7 2 2 .4 8 8 2 3 . 0 0

B u r t o n , A l e c . . I

A r c a d i a

C o m p a n y d i r e c t o r . j

1

1 9 6 5 - 6 6 t o 1 9 7 0 - 7 1 1 1 ,3 4 0 2 , 8 1 3 . 6 8 j 1 .4 0 4 . 0 0

146

I N C O M E T A X

U nderstatement of Taxable Income S c h e d u le I — continued

Name and address

S e e N ote page 145

0 )

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

Individuals

ΝΈΛV SOUTH WALES

$ s S

Byak, Ivan Sardelic .

Chatswood

Investor and prop­ erty owner 1965-66 to 1970-71 23,946 13,577.90 10,181.00

Byers, Hugh Francis . Five Dock Wholesale butcher . 1966-67 to 1971-72 4,201 1,972.84 984.00

Cacciotti, Valentino . Annandale Marble terrazzo polisher

1967-68 to 1971-72 9,428 2,436.79 651.00

Campbell, Dorothy Mary Dover Heights Music teacher . 1964-65 to 1967-68 7,745 1,836.35 917.00

Casarotto, Caesare .

Earlwood

Tailor . . . 1965-66 to 1967-68 4,208 1,470.46 733.00

Chascas, George . .

Marrickville

Real estate dealer . 1966-67 to 1971-72 10,616 3,213.51 1,605.00

Chong, Check Yee .

Erskineville

Labourer . . 1965-66 to 1971-72 21,977 5,897.20 2,945.00

Choon, Charles . .

Sylvania

Restaurateur . . 1967-68 to 1971-72 5,739 1,351.77 675.00

Churchill, Nicholas . Kahibah Club proprietor . 1962-63 to 1968-69 16,272 5,347.62 2,670.00

Clifford, Andrew . .

Strathfield

Real estate salesman 1968-69 to 1970-71 5,500 3,102.84 1,550.00

Cocco, Domenico .

Guildford

Bricklayer . . 1966-67 to 1971-72 21,926 8,103.03 3,471 .00

Cohen, Nancy . .

N orth Bondi

Manufacturing engineer

1965-66 to 1969-70 33,984 15,389.04 7,411.00

Cohen, Neville . .

N orth Bondi

Manufacturing engineer

1965-66 to 1969-70 35,484 15,683.91 7,459.00

Constantinopoulos, Bill West Marrickville Merchant . . 1964-65 to 1970-71 35,270 14,313.62 7.153.00

Coorey, George Elias . Lidcombe Storekeeper and property owner

1965-66 to 1970-71 28,693 9,385.88 3,125.00

Costello, Patrick William Parramatta Company director 1966-67 to 1969-70 12,061 6,229.68 : 3,113.00

Crowe, Henry Harold . (deceased) Point Piper

Medical practitioner 1947-48 to 1964-65 73,264 42,257.80 26,110.00

Dalziel, John David .

Evans Head

Secretary manager . 1959-60, 1960-61 and 1963-64 to 1971-72

38.688 14,043.03 7,015.00

Davis, Reginald Wallace North Bondi Postal officer . . 1966-67 to 1971-72 11,916 3,980.42 1,988.00

Debrcceriy, William Alexander Comboyne

Farmer . . . 1965-66 to 1971-72 54,953 21,365.22 10.493.00

Doulman, Geoffrey Kevin Black town

Dry cleaner . 1968-69 to 1971-72 18,705 4.193.09 1,676.00

Dvorsky, Josef . .

Lane Cove

Crane driver . . 1969-70 to 1971-72 3,021 1.028.41 512.00

Edgar, Thomas Geoffrey Point Piper Director . . 1967-68 and 1968-69 19,509 13,337.82 4.652.00

Ellul, John . . .

Horsley Park

Poultry farmer . 1962-63 to 1964-65

and 1966-67

13,558 2.514.43 1.256.00

147

I N C O M E T A X

U nderstatement of Taxable Income S c h e d u le I— continued

Name and address

S e e N ote page 145

(1)

Occupation

(2)

Financial year or years

(3)

Under­ statement o f taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

Individuals

NE3V SOUTH WALES

8 $ 8

Elsom, Daisy Marion . Maroubra Travel adviser . 1965-66 to 1970-71 5,272 1,513.76 591.00

Fallico, Gaetano . .

Newtown

Fish shop proprietor 1966-67 to 1970-71 6,016 1,431.39 714.00

Finlay, Rodney Stanislaus Charlestown

Barber . . . 1968-69 to 1970-71 7,735 2,003.86 1,001.00

Flematti, Giuseppe .

Cronulla

Construction superin tendant 1968-69 to 1971-72 5,752 2,082.93 1,040.00

Floras, Theofanis . .

Enmore

Fork lift driver and landlord 1966-67 to 1971-72 3,657 1,012.05 672.00

Fois, Franceschino .

Mereweather Heights

Ice cream bar proprietor

1965-66 to 1970-71 3,782 1,079.01 535.00

Foy, Stephen Loong . Mosman Managing director and property

owner

1966-67 and 1967-68 6,066 2,707.13 1,353.00

French, Victor Cecil , Bankstown Machinist . . 1966-67 to 1971-72 18,687 5,774.68 2,884.00

Frond, William Marshall Richmond Clerk . . . 1965-66 to 1970-71 38,952 15,534.95 7,767.00

Gallagher, Leonard James Coraki

Fisherman . . 1965-66 to 1970-71 6,328 1,225.34 609.00

Galli, Alessandro . .

Aranda, A.C.T.

Building contractor. 1969-70 and 1970-71 10,689 4,649.65 1,860.00

Gambotto, Gian Carlo . East Lindfield Interpreter and manager

1967-68 to 1970-71 9,010 1,885.08 940.00

Gambotto, Lorenzo . Gladesville Property owner . 1966-67 to 1970-71 12,079 3,912.48 1,954.00

Gargoura, Michel .

Rockdale

Clerk . . . 1968-69 to 1971-72 5,195 1,362.04 679.00

Garvan, Harold Calaghan Double Bay

Teacher . . 1966-67 to 1971-72 14,823 7,201.12 2,878.00

Gasparet, Aldo . .

Concord

Carpenter . . 1966-67 to 1971-72 16,008 4,390.95 2,193.00

Gates, Arthur Cecil .

Gerringong

Investor . . 1966-67 to 1971-72 6,619 2,310.11 1,152.00

Ghidinelli, Narciso . via Lismore Banana grower . 1966-67 to 1971-72 7,177 1,219.62 607.00

Ghidinelli, Severina . via Lismore Banana grower . 1966-67 to 1971-72 ' 7,394 1,402.92 699.00

Glavurdic, Zvonko .

Marrickville

Carpenter . . 1968-69 to 1970-71 3,252 1,237.81 617.00

Glen, Alan William .

Fairlight

Salesman . . 1965-66 to 1969-70 3,165 1,153.34 574.00

Gould, Linden Murray . Mallanganee Dairy farmer . . 1966-67 to 1971-72 4,264 1,270.48 531.00

1 48

I N C O M E T A X

U n d e r st a t em en t o f T axa ble I n com e

Schedule I — co n tin u ed

Name and address

S e e N o t e page 145

0 )

Occupation

(2)

Financial year or years

( 3 )

Under­ statement of taxable income

( 4 )

Increase in tax assessed

( 5 )

Additional tax charged

( 6 )

$ $ s

NEW SOUTH WALES

Individuals

Grenville, Daniel Stanley Company director . 1965-66 to 1970-71 40,201 21,832.39 8,817.00

Northbridge Haigh, Robert W ilfred . Builder . . . 1966-67, 1968-69 15,334 4,549.07 2,273.00

Murwillumbah and 1969-70

Hanna, John Peter . Residential 1965-66 to 1970-71 9,210 4,649.23 2,322.00

Point Piper proprietor

Hanna, Sara. . . Residential 1965-66 to 1970-71 4,605 2,107.91 1,051.00

Point Piper proprietress

Hansen, Kathleen Jean . Sports club 1965-66 to 1970-71 11,885 4.420.67 2,207.00

Parram atta proprietress

Hansen, Ronald Lancelot Sports club 1965-66 to 1970-71 11,731 4,146.95 2,071.00

Parram atta proprietor

Hassarati, Hanna . . Demolisher . . 1967-68 to 1969-70 9,631 4,013.68 1,468.00

Belmore

Hassarati, Therese . Secretary . . 1967-68 to 1969-70 9,631 3,893.10 1,404.00

Belmore

Hatzl, Wilhelm . . Carpenter . . 1964-65 to 1970-71 4,858 1,614.08 804.00

Sylvania

Hill, Dallas Ettienne . Investor . . 1968-69 and 1970-71 20,006 8,963.26 3,585.00

Byron Bay Hing, Albert . . Dentist . . . 1960-61 to 1971-72 146,732 76,401.38 30,554.00

Northbridge Hood, Sydney Thomas . Floor sander . , 1965-66 to 1967-68 11,920 3,542.82 1,770.00

Northmead Howe, William Harold . Bricklayer . . 1966-67 to 1970-71 10,032 2,055.55 673.00

Hunters Hill Hurt, Lindley . . Boat shed 1967-68 to 1971-72 16,359 9,124.43 4,559.00

Toronto proprietor

1,549.00 Ilsley, Joseph John . Horse trainer . 1967-68 to 1971-72 16,257 4,657.11

M ona Vale Issa, George Boutros . Carpenter . . 1963-64, 1964-65, 5,371 1,407.95 702.00

Fairy Meadow 1966- 67 and

1967- 68

Jacobsen, Peter Gunther Real estate 1966-67 to 1971-72 41,157 13,390.19 6,691.00

Darling Point consultant

1,091.00 Jakab, Alex (deceased) . Photographer . 1965-66 to 1969-70 10,506 2,733.95 Orange 595.00 Jansen, Constance Bertha Hairdresser . . 1968-69 to 1970-71 3,226 1.194.47

CofTs Harbour Johnstone, Frederick Solicitor . . 1966-67 to 1969-70, 18,306 11,501.06 4,597.00

Thomas 1971-72 and

Armidale 1972-73

Jones, Bruce Llewellyn . Flight steward . 1968-69 to 1971-72 14.024 4.925.10 2,461.00

Darling Point

1,022.00 Kain, Brian . . . Shop and garage 1967-68 to 1971-72 8,475 2,048.54

Braidwood proprietor

998.00 Kakouris, Aris . . Snack bar proprietor 1968-69 to 1971-72 7,584 2,993.25

Kane, Ronald Lawrence Manager . . 1966-67 to 1970-71 24,794 9,744.60 4,869.00

N orth Rocks

1,486.00 Karavas, John . . Musician . . 1967-68 to 1971-72 9,751 2,975.28

Dulwich Hill

1 4 9

I N C O M E T A X

U nderstatement of T axable Income S c h e d u le I— continued

Name and address

S e e N ote page 145

(1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

s $ I s

NEW SOUTH WALES

Individuals I I I I

Kelly, John Brian . Administrator . 1970-71 and 1971-72 2,946 1,014.49 507.00

Campbelltown Khan, Fazel Mahomad . Property owner . 1955-56 to 1966-67 30,014 10,736.67 5,362.00

Dapto and 1968-69

Khan, Hukoomat Bibi . Property owner . 1956-56 to 1961-62, 28,948 14,146.08 9,731.69

Dapto 1963-64 to !

1966-67 and 1968-69

Khoury, Bill. . . Builder . . . 1967-68 to 1970-71 6,683 i 2,235.55 1,115.00

Croydon

Kinigalakis, George . Fish shop proprietor 1968-69 to 1971.72 3,735 1,583.66 789.00

Tenterfield Kinigalakis, Marina . Fish shop 1968-69 to 1971-72 3,735 ■ 1,585.80 790.00

Tenterfield proprietress j

Kokotovich, Nikola . Concrete form- 1968-69 to 1971-72 27,662 I 13,708.04 4,032.00

Lansvale worker

Konstantinoa, Harry . Bootmaker . . 1965-66 to 1968-69 9,597 2,719.51 1,360.00

Griffith, A.C.T. j

Kyriakou, Melanthios . Service station 1967-68 to 1970-71 10,347 2,377.94 949.00

Lakemba proprietor j

Lagousis, Harry . . Carrier . . . 1966-67 to 1968-69 10,668 2,976.37 1,487.00

Marrickville Lentakis, Michael . Fitter . . . 1966-67 to 1971-72 7,446 | 2.590.08 1,032.00

Willoughby Ligias, Frank . . Shop proprietor . 1966-67 to 1970-71 3,781 1,261.97 628.00

Carss Park Longson, Irene . . i Gemstone dealer . 1965-66 to 1970-71 28,235 8,992.75 4,493.00

Nelson Bay Lowe, William Lawson . , Company director . 1964-65 to 1969-70 7,398 i 3,943.48 1,968.00

Middle Cove Lubec, Valentine . . Builder . . . 1966-67 to 1968-69 7,138 2,122.97 848.00

Horsley Park .

McArthur, Irene Mary . Milk vendor . . 1967-68 to 1971-72 1 6,487 2,033.05 811.00

Chifley, A.C.T. McArthur, William Milk vendor . . 1967-68 to 1971-72 6,731 2,073.46 827.00

James Chifley, A.C.T. McDonald, Ian Bruce . Swimming pool 1966-67 to 1970-71 49,821 25,041.10 12,518.00

Beecroft proprietor

McIntyre, Henry James | Shop assistant . 1961-62 to 1967-68 12,551 3,706.91 1,360.00

Belmore

McIntyre, Joan Carmel . Legal clerk . . ! 1961-62 to 1963-64, 7,016 1,932.70 964.00

Belmore 1965-66 and

1966-67

McKay, lan Copps . Company director . 1966-67 to 1971-72 10,471 3,868.22 1,932.00

Beverly Hills Makris, Konstantinos . Sub-contractor . 1966-67 to 1971-72 8,443 2,106.39 1,050.00

Punchbowl Manavis, Con . . Grocer . . . 1969-70 to 1971-72 3,431 1,215.18 531.00

Annandale Meek, William Gordon Club proprietor . 1962-63 to 1968-69 10,707 2.955.33 1,474.00

Hamilton

1 5 0

I N C O M E T A X

U n d e r s t a t e m e n t o f T a x a b l e I n c o m e

Schedule I— co n tin u e d

Name and address

S e e N ote page 145 (1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

Individuals

N E \ V SOUTH WALES

s $ s

Mekler, Alexander .

Rose Bay Mekler, Fernanda .

Rose Bay Merlino, Giovanni .

Cook. A.C.T.

Company director . 1964-65 to 1969-70 17,773 7,077.43 3,535.00

Company director . 1964-65 to 1969-70 12,384 4,737.75 2,366.00

Company director . 1968-69 to 1971-72 23,578 9,318.74 4,658.00

Mills, Thomas Irvine . W oollahra Property owner . 1966-67 4,667 2,252.00 827.00

Monk, Leslie Athol .

Killara

Veterinary surgeon 1962-63 to 1966-67 16,068 8,092.35 4,045.00

Morgan, John Alfred . W aratah West Plumber . . 1965-66 to 1971-72 9,013 2,965.08 1,264.00

Morrisey, John William Maroubra Junction Plumber . . 1968-69, 1970-71

and 1971-72

4.729 1,496.16 746.00

Mortimer, James . .

W oonona Heights Sales representative 1967-68 to 1972-73 7,717 1,265.34 630.00

Murphy, James . .

Tweed Heads

Electrical appliances retailer 1966-67 to 1971-72 5,544 1,051 .95 523.00

Namowitz, G unter Richard Kurnell

Haulier . . 1967-68 to 1969-70 5,232 1,514.28 503.00

Napoli, Rocco . .

Eastwood

Fruiterer . . 1967-68 to 1970-71 6,296 1,770.62 884.00

Nicholas, Bruce . .

Warrawong

Agent . . . 1965-66 to 1969-70 8,948 1,796.22 895.00

Nordlund, Kanute Valifred Condong

Farmer . . . 1966-67 to 1971-72 5,466 1,931.89 642.00

Nowacki, Stefan . .

Rooty Hill

Greengrocer . . 1965-66 to 1971-72 22,165 4,395.05 2,193.00

O'Donnell, Adrian Wilfred Gordon

Marketing m anager. 1967-68 to 1969-70 4,804 1,551.39 600.00

O’Reilly, Neil Patrick . Ashfield Second hand dealer. 1964-65 to 1966-67 7,059 2.293.57 1,146.00

Ort, Anna . . .

Austral

Poultry farmer . 1967-68, 1968-69

and 1970-71

8,350 2,353.68 935.00

Ort, John . . .

Austral

Poultry farmer . 1967-68, 1968-69

and 1970-71

8,350 2,393.63 935.00

Panetta, Vincent . .

Kellyville

M arket gardener . 1967-68, 1968-69, 1971- 72 and

1972- 73

11,969 2.192.57 1,095.00

Panuccio, Francesco . Fairfield Driving instructor . 1968-69 and 1969-70 7,521 2,668.08 1,066.00

Payne, Geoffrey Charles. Ballina Building contractor and fisherman

1965-66 to 1969-70 21.089 4.987.13 1,660.00

Polyzogopoulos, Vassilios Earlwood

Real estate salesman

1971-72 and 1972-73 6,222 1,312.74 524.00

Praxoulis, John Nicholas Bookmaker . . 1964— 65, 1965-66, 23,313 11.996.52 5,999.00

Braddon, A.C.T. 1967-67 and

1968-69

151

I N C O M E T A X

U nderstatement of T axable Income S c h e d u le I— continued

Name and address Occupation Financial year or years Under­ statement o f taxable

income

Increase in tax assessed

Additional tax charged

S e e N ote page 145

(1) (2) (3) (4) (5) (6)

$ $ s

NEW SOUTH WALES

I ndividuals I |

Prior, Patrick Anthony . 1 1 Company director . 1966-67 to 1971-72 14,524 7,220.42 3,608.00

Dundas

Prpic, Maria . . j Builder . . . 1969-70 3,076 1,308.19 654.00

Hill view

Psaltis, Anthony . . Shopkeeper . . 1968-69 to 1970-71 3,543 1,339.18 668.00

Narrabeen Psaltis, A rthur . . Shopkeeper . . 1968-69 to 1970-71 3,543 1,185.41 591.00

Narrabeen Quinn, Richard Bede (Snr l Director . . 1962-63 to 1970-71 25,733 12,037.54 3,883.00

Punchbowl Rezo, Drago . . Drainage contractor 1966-67 to 1968-69 30,038 13,358.26 6,678.00

Garran, A.C.T. and builder

Riley, Robert Alvos . Horse breaker . 1966-67 to 1971-72 8,391 2,619.50 1,107.00

Lismore

Rizzi, Fabio . . Property owner and 1965-66 to 1969-70 7,340 1,127.92 553.00

Moore Park taxi cab proprietor

Rolf, Barry . . . Diamond setter . 1967-68 to 1970-71 8,750 2,877.11 1,437.00

M aroubra Rogerson, Dianne Helen Concreting plant 1968-69 and 1969-70 4,813 1,642.98 700.00

Sylvania Heights proprietress

Rossides, Eddie . . Real estate salesman 1967-68 to 1970-71 8,668 3,100.86 1,548.00

Enmore

Schmiedt, Andrew Leslie Ladies clothing 1968-69 to 1970-71 7,160 2,379.08 726.00

Roseville retailer

Schmiedt, Susan . . Ladies clothing 1968-69 to 1971-72 11,299 4,008.95 1.895.00

Roseville retailer

Sciacca, Antonino . Bricklayer . . 1970-71 and 1971-72 6,114 2,234.78 1,116.00

Dulwich Hill Sciacca, Guiseppe . Bricklayer . . 1969-70 to 1971-72 6,409 2,238.94 1,118.00

Hurstville Secular, Hugh Wallace . Barber . . . 1965-66 to 1968-69 15,089 2,950.15 1,472.00

Denman and 1970-71

Semple, Norman Lome : Tiling contractor . 1965-66 to 1970-71 4,146 1,389.98 691.00

Tamworth Semple, Robert James . Tiling contractor . 1965-66 to 1970-71 10,290 3,610.73 1,803.00

Tamworth Sironic, Franjo . . Coffee lounge 1966-67 to 1971-72 13,799 3,837.54 1,916.00

Keiraville proprietor I

Sironic, Milkan . . Coffee lounge 1966-67 to 1971-72 13,771 3,809.31 1,901.00

Keiraville proprietress

Slaviero, Ilario . . 1 Banana grower . 1965-66 to 1970-71 5,781 1,206.42 601.00

Coffs Harbour |

Slaviero, Maria . . Banana grower . 1965-66 to 1970-71 5,781 1,262.32 628.00

Coffs Harbour Sougleris, Sotirios . Excavator . . 1968-69, 1970-71 7,011 2,310.25 1,153.00

Erskineville and 1971-72

Sowter, Leslie Francis . Company director . 1969-70 and 1970-71 3,662 1,531.42 j 765.00

Coogee j

796.00 Sullivan, Stanley Edward Milk vendor . . ! 1966-67 to 1970-71 7,528 1,998.24 Canterbury Symons, Arnold Bookmaker and 1965-66 to 1970-71 6,675 1,830.48 911.00

Frederick livestock breeder

Somersby

152

I N C O M E T A X

U nderstatement of T axable I ncome Schedule I— co n tin u e d

Name and address

S e e N ote page 145

(1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

Individuals

NEVV SOUTH WALES

s $ s

Symons, M arie Agnes . Somersby Bookmaker and cattle breeder

1965-66 to 1970-71 6,676 1,690.78 560.00

Taok, Mickhel . ,

Petersham

Labourer . . 1970-71 6,790 2,541.99 1,260.00

Tchistiakova, Zoya .

Strathfield

Pedicurist and masseuse

1968-69 to 1971-72 5,651 1,360.50 678.00

Thompson, Raymond Roy Goulburn

Painter . 1969-70 to 1972-73 6,000 2,014.52 1,005.00

Thorny, Antonio . .

Ashfield

Builder . . . 1967-68 to 1970-71 4,492 1,709.33 853.00

Tonner, Joseph John . Drummoyne Swimming pool manager

1967-68 to 1971-72 13,340 4,415.45 1,706.00

Travis, Raym ond Victor Kingsgrove Refrigeration engineer

1963-64 to 1971-72 19,109 5,173.69 2,447.00

Trebelas, George Kingsford

Cafe proprietor 1961-62 to 1967-68,

1969- 70 and

1970- 71

29,497 8,201.38 4,097.00

Tricker, Lawrence Lloyd Riverstone Excavation contractor

1966-67 to 1970-71 14,981 5,541.29 2,767.00

Troy, Adrian Angus .

Darling Point

Clinical psychologist 1966-67 to 1971-72 86,936 42,417.01 21,207.00

Tsangaris, Mick . .

Erskineville

Excavator . . 1968-69 to 1971-72 6,436 1,591.22 794.00

Underdown, Gwenyth Eleanore (deceased) Potts Point

Private hotel proprietress

1961-62 to 1966-67 56,276 27,296.24 13,645.00

Van Vlimmeren, Gerrit . Wentworthville Carpet layer . . 1967-68 to 1971-72 19,146 6,989.14 3,492.00

Vargyas, Joseph . .

Waverley

Painter . . . 1968-69 to 1971-72 12,627 2,803.64 1,206.00

Verbunt, Andrianus Johannes Corowa

Building contractor

1967-68 and 1968-69 5,365 2,823.64 1,128.00

Vitez, Charles . .

Bondi Junction

Dentist . . . 1965-66 to 1970-71 14,131 3,810.32 1,522.00

Volpato, Floriano .

Lismore

Travel agent . . 1966-67 to 1971-72 11,373 4,280.14 1,709.00

Walker, Dennis . .

Charlestown

Builder . . . 1966-67 to 1968-69 6,358 2,841.40 1,400.00

Wallace, William Edward Elanora Company director . 1964-65 to 1970-71 8,721 7,555.54 3,502.00

Wang Lum . . .

Petersham

Manager . . 1965-66 to 1970-71 11,210 4,431.44 2,212.00

Watt, Walter Joseph . Strathfield M otor dealer . . 1965-66, 1966-67

and 1968-69

5,580 1,856.10 927.00

Wemyss, Terence Ronald M alabar Heights Contract cleaner . 1969-70 and 1970-71 4,000 1,036.14 517.00

Wennholm, Allan Norman Hurstville

Company director . 1964-65 to 1968-69 . 30,115 18,704.87 9,352.00

153

I N C O M E T A X

U nderstatement of T axable Income S c h e d u le I — continued

Name and address Occupation Financial year

or years

Under­ statement of taxable income

Increase in tax assessed

Additional tax charged

S e e N ote page 145

(1) (2) (3) (4) (5) (6)

$ $ 8

NEW SO U TH WALES

I ndividuals | I I

Whitfield, Joyce Edith Company director . 1966-67 to 1971-72 4,872 2,124.75 847.00

Mary "

Longueville Wilsmore, Robert Solicitor and 1966-67 3,121 1,228.82 614.00

William notary

Wahroonga Winning, Kenneth Real estate agent . 1971-72 5,250 2,722.53 1,361.00

Douglas Nelson Bay Winram, Jan Elizabeth . Swimming coach . 1966-67 to 1970-71 8,888 2,122.13 1,053.00

Normanhurst Wong, Peter . . Restaurant 1967-68 to 1971-72 10,000 3,594.43 1,435.00

Eastwood proprietor

Wong, Robert . . Restaurant 1967-68 to 1971-72 10,000 3,380.78 1,350.00

Ermington proprietor

Yum, Sydney . . Company 1964-65 to 1969-70 12,208 6,272.16 3,134.00

Five Dock director

Zeiler, Herta . . Residential 1965-66 to 1969-70 6,131 1,119.31 557.00

Waverton proprietress

Zeiler. Rudolf . . Residential 1965-66 to 1969-70 7,188 1.832.69 914.00

Waverton proprietor

C ompanies, etc. [ 1

Antino Constructions Pty

1

Contractors . . 1966-67 to 1970-71 [ 78,379 29,801.95 14,901.00

Ltd

Aristocrat Enterprises Pty Importers . . 1968-69 and 1969-70 6,978 1,531.20 510.00

Ltd

Butler Bros Motors Pty Motor garage prop- 1967-68 to 1969-70 8,316 2,490.30 1,243.00

Ltd rietors

Holmesdale Pty Ltd . ; Importers . . 1964-65 to 1969-70 192,588 83,549.77 [ 27,848.00

Krug, P. J. Pty Ltd . Property owners . I 1967-68 to 1972-73 35,907 11,019.42 I 5,507.00

Paragon Art Needlecraft 1 Publishers . . | 1968-69, 1969-70 4,021 1,173.00 586.00

Pty Ltd and 1971-72

Quinns Shoe & Sports Store Pty Ltd

Total (208) *

Shoe and sports store proprietors 1963-64 to 1967-68, 1969- 70 and

1970- 71

33,700 9,113.10 3,019.00

3,165,469 1,208,828.93 556,460.39

In d iv id u a l s

V I C T O R I A

Albers, Ellen May . Rest home 1965-66 to 1967-68 7,973 2,673.90 ' 891.00

Olinda proprietress

Albers, Johannes . . Rest home proprietor 1965-66 to 1967-68 j 7.976 2,493.18 831.00

Olinda

Aldred, Joyce Miriam . Kindergarten 1967-68 to 1971-72 7,509 2,347.81 1,174.00

Canterbury proprietress

1 S e e a l s o Schedule A2, page 49.

1 54

I N C O M E T A X

U nderstatement of T axable Income Schedule I— c o n tin u e d

Name and address

S e e N ote p a g e 145 (1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

$ s S

VICTORIA

Individuals

Alvarez, Geronimo .

Chadstone

Company director . 1968-69 to 1971-72 7,874 1,397.75 696.00

Antrim, Frederick James Jordanville Carpet salesman . 1967-68 to 1971-72 7,685 2,263.71 753.00

Apostolou, Pandora . Clifton Hill Real estate agent . 1965-66, 1966-67, 1969- 70 and

1970- 71

7,806 1,840.21 918.00

Apostolou, Thomas . Clifton Hill Real estate agent . 1965-66 to 1970-71 19,030 7,022.64 3,508.00

Avery, Raymond Basil . Cheltenham Builder . . . 1966-67 to 1971-72 12,062 3,261.22 1,630.00

Babatsikos, Efthimios . Ascot Vale Taxi driver . . 1969-70 and 1971-72 5,439 1,699.26 849.00

Barker, Charles Leslie (deceased) Penshurst

Grazier . . 1966-67 to 1970-71 15,503 4,672.00 2,336.00

Beadel, Neil William Charles Clayton

Bricklaying contractor

1966-67, 1967-68, 1970- 71 and

1971- 72

6,319 1,224.50 610.00

Bell, Joseph Patrick .

Pascoe Vale

Bookmaker 1966-67 to 1971-72 5,461 1,852.65 927.00

Boulton, James Alfred (deceased) Sale

Investor . . 1966-67 to 1970-71 8,366 2,556.94 1,278.00

Bourke, Arthur James Vincent Oakleigh

Lawn mower repairer

1962-63 to 1971-72 32,397 8,024.72 3,845.00

Bowman, Patricia .

Box Hill

Retail draper . 1966-67 to 1971-72 8.194 2,607.78 1,300.00

Bowman, Patrick Joseph Box Hill Retail draper . 1966-67 to 1971-72 7,944 2,498.19 1,245.00

Burban. Frank . .

Richmond

Labourer and pro­ perty owner 1969-70 to 1972-73 13,748 5,087.17 2,541.00

Burgess, Arthur John . Caulfield Executive director . 1966-67 to 1970-71 2,670 1,609.22 802.00

Burman, Richard James (deceased) Gardenvale

Chartered accountant

1969-70 and 1970-71 23,190 11,771.27 5,885.00

Burns, Andrew Robert . Mordialloc General manager and company

director

1962-63 to 1971-72 10,174 6,713.79 3,355.00

Busch, Oswald Don (deceased) Toorak

Managing director . 1955-56 to 1968-69 159,469 104,907.28 99,649.00

Butcher, John Albert (deceased) Farmer . . . 1966-67 to 1971-72 11,925 1,513.91 754.00

W angaratta

13941/75— 6

155

I N C O M E T A X

U nderstatement of Taxable Income S c h e d u le I— continued

Name and address

S e e N ote page 145

(1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

Individuals

VICTORIA

$ $ $

Byrne, John Sydney . St Kilda Hire car operator and property

owner

1970-71 and 1971-72 3,008 1,123.98 562.00

Camera, Rocco . .

Hampton

W harf labourer . 1966-67 to 1971-72 7,168 2,361.99 1,180.00

Cameron, Ernest Charles Preston Bookmaker . . 1969-70 to 1971-72 11,598 4,464.83 2,232.00

Cameron, Malcolm Alexander Huntingdale

Plant operator . 1965-66 to 1970-71 16,087 5,702.60 2,847.00

Cameron, Wallace Stuart Ormond Solicitor . . . 1969-70 and 1970-71 3,977 1,283.59 640.00

Canestra, John . .

Ormond

Sales manager . 1967-68 to 1971-72 10,626 3,268.17 1,633.00

Capicchiano, Felix .

Castlemaine

Real estate salesman 1966-67 to 1972-73 5,944 2,099.41 697.00

Capicchiano, Joseph Francis Castlemaine

Electrical and furni­ ture retailer and estate agent

1969-70 to 1972-73 3,877 1,745.18 580.00

Capparelli, Peppino . Malvern Cafe proprietor . 1966-67 to 1971-72 9,519 2,337.75 935.00

Capparelli, Wally . .

Malvern

Cafe proprietress . 1966-67 to 1971-72 9,232 2,224.08 890.00

Caratti, Donato . .

Burwood

Truck driver . . 1967-68 to 1971-72 12,584 3,627.94 1,812.00

Carson, John Edward . South Yarra Insurance broker . 1967-68 to 1971-72 5,666 3,512.56 1,169.00

Cascajo, Amalio . .

Armadale

Manufacturer of ladies wear 1966-67 to 1970-71 11,296 4,335.05 2,165.00

Cascajo, Victoria . . .

Armadale

Manufacturer of ladies wear 1966-67 to 1970-71 17,079 6,244.22 3,121.00

Clarke, Helen Joan .

North Kew .

Hairdresser . . 1966-67 to 1971-72 4,667 2,214.59 1,107.27

Coleman, Barbara. .

Footscray

Watchmaker and jeweller 1962-63 to 1966-67 and 1968-69 to

1971-72

23,649 6,570.82 3,285.00

Coleman, Harry . .

Footscray

Watchmaker and . jeweller 1960-61 to 1966-67 and 1968-69 to

1971-72

31,721 8,509.72 4,254.00

Connell, Russell . .

East Bentleigh

Bookmaker . . 1966-67 to 1971-72 16,362 7,398.71 2,960.00

Cusmano, Anna Maria . North Fitzroy Property owner . 1970-71 2,797 1,045.82 520.00

Cusmano, Giuseppe . N orth Fitzroy Property owner . 1970-71 2,796 1,055.74 520.00

Davin, Denis James (deceased) Box Hill

Security officer . 1966-67 to 1970-71 4,535 1,647.01 824.00

Davison, Samuel Richard James Broadbeach, Qld

Investor . . 1968-69 to 1970-71 1,983 1,091.03 552.00

1 5 6

I N C O M E T A X

U nderstatement of T axable Income Schedule I— c o n tin u e d

N a m e a n d a d d r e s s

S e e N o t e p a g e 1 4 5

0 )

Occupation

( 2 )

Financial year or years

(3)

Under­ statement o f taxable income

( 4 )

Increase in tax assessed

(5)

Additional tax charged

(6)

s s $

VICTORIA

In d iv id u a l s

Dewar, James . . Florist . . . 1967-68 to 1970-71 32,966 19,553.00 14,447.00

Melbourne Di Filippo, G razia . Grocer . . . 1965-66 to 1971-72 27,94! 10,054.07 5,028.00

Springvale Di Filippo, Sammy . Grocer . . . 1965-66 to 1971-72 27,962 9,644.20 4,823.00

Springvale Dimitroff, Jura . . Architect . . 1965-66 to 1967-68 15,484 7,021.12 2,340.00

Hawthorn Di Stefano, Oreste . Labourer . .

and 1970-71 1967-68 to 1972-73 6,499 1,970.65 985.00

East Brunswick Di Stefano, Thom as . M otor mechanic . 1967-68 to 1969-70 5,649 1.517.52 759.00

East Brunswick Doherty, John Alexander Company manager and 1971-72 1965-66 to 1970-71 19,536 7,710.17 3,081.00

Strathm ore Downward, George Jeweller . . 1963-64 to 1968-69 48,663 23,062.80 6,965.10

Irvine Jacana

D unn, Raym ond Hudson Solicitor . . 1966-67 to 1971-72 42,004 24,455.03 12,228.00

(deceased) Windsor Efthim, Paul . . Machinist . . 1968-69 to 1972-73 7,753 2,317.85 1,159.00

Cheltenham English, Mary Edith . Clerk . . . 1966-67 to 1972-73 4.913 1,454.92 723.00

West Brunswick Farey, Emma Elizabeth . Property owner . 1966-67 to 1969-70 2.624 1.240.70 618.00

Ascot Vale Favaloro, Guiseppe . Cafe proprietor . 1967-68 to 1971-72 22,471 11,641.59 3,880.00

Shepparton Favaloro, Sheila Cafe proprietress . 1967-68 to 1971-72 14,948 6,795.05 2,265.00

Josephine Shepparton Fezzullari, Georgia , Process worker . 1966-67 to 1971-72 8,351 1,843.56 921.00

Clifton Hill Fitzgerald, Peter John . Manufacturer. . 1969-70 to 1971-72 11,600 4,694.65 2,347.00

East Burwood Fitzgerald, Shirley Anne. Secretary and 1969-70 to 1971-72 22,316 7,530.77 3,765.00

East Burwood Foster, Andrew . .

bookkeeper Manager . . 1966-67 to 1971-72 9,931 3,883.97 1,943.00

Preston

Francis, Beryl Jean . Carpet layer . . 1966-67 to 1971-72 10,248 2,508.01 1,255.00

M oorabbin Francis, Kevin . . Carpet layer . . 1966-67 to 1971-72 10,206 2,412.51 1.206.00

M oorabbin Gafer, Alush . . Investor . . 1966-67 to 1970-71 9,806 2,354.74 1,174.00

Burwood

Geromikos, Ioanna . Mixed business 1969-70 to 1971-72 5,656 1,607.89 641.00

Hawthorn Geromikos, Panagiotis . proprietress Mixed business . 1969-70 to 1971-72 5,656 1,584.72 632.00

Hawthorn Giannoukas, Ann . .

proprietor Bus service 1969-70 to 1971-72 ' 5,516 1,482.06 741.00

West Footscray proprietress

1 57

I N C O M E T A X

U nderstatement of Taxable Income S c h e d u le I— continued

N a m e a n d a d d r e s s

S e e N o t e p a g e 145

0 )

O c c u p a t io n

(2 )

F in a n c ia l y e a r

o r y e a rs

(3)

U n d e r ­ s ta t e m e n t o f ta x a b le

in c o m e

(4)

I n c r e a s e in

ta x

a s s e s s e d

(5)

A d d iti o n a l ta x c h a rg e d

(6 )

I n d iv id u a l s I

V I C T O R I A

$ $ $

G i a n n o u k a s , S a v v a s .

W e s t F o o ts c r a y

B u s s e rv ic e p r o p r i e t o r

1 9 6 9 -7 0 to 1 9 7 1 -7 2 5 ,5 1 6 1 ,4 8 3 .3 4 7 4 2 .0 0

G ilc h r is t, J o h n F u l t o n .

R e s e r v o ir

R i d i n g s c h o o l

p r o p r i e t o r a n d

f a r m e r

1 9 6 7 -6 8 3,341 1 ,2 3 7 .2 2 6 1 8 .0 0

G r e c h , G e o r g e . .

S t A lb a n s

W e ld e r . . . 1 9 6 7 -6 8 t o 1 9 7 0 -7 1 3 ,7 4 4 1 ,2 2 9 .7 7 5 2 5 .0 0

G r e g o r o v ic , R o g g e r o .

B r a y b r o o k

B r ic k la y in g c o n t r a c ­ t o r 1 9 6 5 -6 6 to 1 9 7 0 -7 1 13,621 3 ,5 6 2 .9 8 1 ,7 8 0 .0 0

G u z z a r d i , A n to n io .

M o o n e e P o n d s

T e r r a z z o c o n t r a c t o r 1 9 6 5 -6 6 to 1 9 7 0 -7 1 8 ,7 3 6 2 ,6 4 0 .2 5 1 ,3 1 9 .0 0

H a l l , H e n r y C la r e n c e .

C o b u r g

P lu m b e r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 5 3 ,5 6 5 2 4 ,8 3 3 .0 0 1 2 ,4 1 3 .0 0

H a m i lto n , C la r e n c e

J a m e s

D o n v a le

B u ild e r a n d m a n a g e r 1 9 6 7 -6 8 to 1 9 7 1 -7 2 7 ,905 4 ,0 2 9 .1 7 2 ,4 1 7 .0 0

H a m i l t o n , G e o r g e N e il .

R o s a n n a

B u ild e r a n d m a n a g e r 1 9 6 7 -6 8 a n d 1 9 6 9 -7 0

t o 1 9 7 1 -7 2

7 ,7 3 7 3 ,8 4 0 .6 4 2 ,3 0 4 .0 0

H a n c o c k , B e v e rle y M a ry

W y Y u n g

F a r m e r . . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 7,861 1 ,5 3 2 .9 2 6 1 4 .0 0

H a r d in g , W illia m

( d e c e a s e d ) S h e p p a r t o n

F a r m e r . . . 1 9 6 7 -6 8 to 1 9 7 1 -7 2 7 ,5 0 0 2 ,9 0 0 .4 7 1 ,4 4 8 .0 0

H e n d o n , P a u l . .

B e a u m a r is

F u r n i t u r e r e t a il e r . 1 9 6 7 -6 8 , 1 9 6 8 -6 9 ,

1 9 7 0 -7 1 a n d 1 9 7 1 -7 2 9 ,1 3 9 2 ,4 7 3 .6 7 9 7 7 .0 0

H e n r y , N o e l F o r t u n e .

R o s a n n a

P a n e l b e a te r a n d

s p r a y p a i n te r

1 9 6 6 -6 7 t o 1 9 7 0 -7 1 14,073 5 ,2 8 0 .3 0 2 ,1 1 0 .0 0

I v e z ic , M io d r a g . .

N o r t h K e w

M a n a g e r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 2 9 ,5 8 7 1 2 ,7 6 1 .0 4 6 ,3 8 1 .0 0

J a c o b s , M a v is F r e d a

(d e c e a s e d ) S o u th Y a r r a

I n v e s to r . . 1 9 6 3 - 6 4 to 1 9 7 1 -7 2 2 8 ,4 0 5 1 3 ,8 5 9 .1 4 6 ,8 7 0 .0 0

J o b e , F r a n c i s E r n e s t .

W e rr ib e e

R a ilw a y e m p lo y e e a n d in v e s to r 1 9 6 7 -6 8 t o 1 9 7 0 -7 1 8 ,9 1 4 3 ,2 3 5 .2 2 1 ,4 9 6 .0 0

K a ll ia n i o tis , J o h n . i

N o r t h B a lw y n

F i s h m o n g e r . . 1 9 6 8 -6 9 t o 1 9 7 0 .7 1 7 ,1 0 4 2 ,0 4 1 .9 6 8 1 6 .0 0

K a m in s k i, F r e d . .

B u r w o o d E a s t

P a i n t e r a n d d e c o r ­

a t o r

1 9 6 7 -6 8 t o 197 0 -7 1 4 ,7 9 2 1 ,6 3 7 .1 5 5 4 4 .0 0

K a m i n s k i , L o r e . .

B u r w o o d E a s t

P a i n t e r . . . 1 9 6 7 -6 8 t o 1 9 7 0 -7 1 4 ,8 2 9 1 ,6 3 6 .5 9 5 4 3 .0 0

K a n t z o s , K a r a m a n lis .

B o x H ill

R e s t a u r a n t p r o ­

p r ie to r

1 9 6 6 -6 7 t o 1970-71 7,639 2 ,5 2 5 .0 3 8 4 2 .0 0

K e e n a n , L e o n a r d J o h n

(d e c e a s e d ) M o a m a

P a n e l b e a te r a n d

s p r a y p a i n te r

1 9 6 6 -6 7 t o 1970-71 3,748 1 ,1 0 1 .6 3 5 4 8 .0 0

K e g le r, Ilg a . . .

B o x H ill N o r t h

S e c r e ta r y . . 1 9 6 8 -6 9 to 1 9 7 1 -7 2 6 ,2 3 2 1 ,8 4 8 .4 8 9 2 2 .0 0

K e g le r, K a r l L e o p o ld .

B o x H ill N o r t h

I n d u s tr ia l c o n s u l t a n t 1 1 9 6 8 -6 9 t o 1 9 7 1 -7 2 6 ,9 2 4 2 ,3 2 1 .9 2 1 ,1 6 0 .0 0

K e lly , J o h n G r a h a m .

O a k le ig h

S c r a p m e ta l d e a le r . j 1 9 6 6 -6 7 t o 197 0 -7 1 2 1 ,1 5 2 1 1 ,6 0 8 .8 6 ^ 4 ,6 4 4 .0 0

158

I N C O M E T A X

U nderstatement of T axable Income S c h e d u le I — continued

N a m e a n d a d d r e s s

S e e N o t e p a g e 145

(1 )

O c c u p a t io n

(2 )

F in a n c ia l y e a r

o r y e a rs

(3 )

U n d e r ­ s ta t e m e n t o f ta x a b le

in c o m e

(4)

I n c r e a s e in

ta x

a s s e s s e d

(5 )

A d d iti o n a l ta x c h a rg e d

(6)

I n d iv i d u a l s

V I C T O R I A

$

1

$ $

K e m p , J o h n M c P h e r s o n

R o s e b u d

D e n t a l s u r g e o n . 1 9 6 7 -6 8 to 1 9 7 1 -7 2 31,021 1 2 ,5 4 1 .4 8 6 ,2 6 8 .0 0

K o c h , H a n s . .

M o r w e ll

T .V . I n s ta l le r a n d

r e p a i r e r

1 9 6 6 -6 7 t o 1 9 7 1 -7 2 7,571 2 ,0 1 0 .2 6 1 ,0 0 6 .0 0

K o c h , H e lg a . .

M o r w e ll

T .V . I n s ta l le r a n d

r e p a i r e r

1 9 6 6 -6 7 t o 1 9 7 1 -7 2 7 ,5 7 3 1 ,9 0 4 .7 8 9 5 1 .0 0

L a n g lo is , H a r o l d A lf r e d

G le n W a v e r le y

W e ld e r a n d e n g in e e r 1 9 6 4 -6 5 t o 1 9 6 9 -7 0 2 8 ,7 4 6 1 2 ,4 4 8 .1 6 7 ,4 6 4 .0 0

L a n g lo is , R o s a l i e E m ily

G l e n W a v e r le y

M a n a g e r . . 1 9 6 8 -6 9 a n d 1 9 6 9 -7 0 1 1 ,897 4 ,8 0 8 .1 4 2 ,8 8 3 .0 0

L y n c h , R u b y M a r g u e r i t a

(d e c e a s e d ) C a u lfie ld

I n v e s t o r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 1 5 ,712 4 ,4 5 1 .9 0 2 ,2 2 6 .0 0

M c C a r t n e y , B e v e rle y A n n e

N y a h

B u tc h e r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 7 ,0 9 6 1 ,8 5 7 .6 6 6 8 6 .0 7

M c C a r t n e y , W i l l i a m

A lf r e d N y a h

B u tc h e r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 7 ,0 6 8 1 ,7 8 1 .8 0 7 7 1 .9 3

M c D o n a l d , T h o m a s E w a n

W a r r a n d y t e

B u ild e r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 6 9 ,7 5 5 3 8 ,3 1 0 .9 5 1 9 ,1 5 6 .0 0

M a c K a y , M a r t h a

( d e c e a s e d ) E ls te r n w ic k

I n v e s t o r . . 1 9 6 6 -6 7 t o 1 9 7 0 -7 1 5 .048 2 ,6 8 4 .1 1 1 ,0 7 4 .0 0

M a d d e n , M a r y M a g d a l­

e n e ( d e c e a s e d )

B la c k b u r n

N u r s e . . 1 9 6 6 -6 7 t o 1 9 7 0 -7 1 3,951 1 ,4 4 5 .7 8 6 5 0 .0 0

M a l k o u n , B a n d e lm o u n

M e r c h e d H e id e lb e r g

T a x i p r o p r i e t o r . 1 9 6 5 -6 6 t o 197 0 -7 1 4 ,2 9 6 1 ,2 8 9 .2 6 6 4 4 .0 0

M a r c h e s a n i , M a r io .

N e w to w n

M e d ic a l p r a c t i t i o n e r 1 9 6 3 -6 4 t o 1 9 6 9 -7 0 73,091 3 8 ,1 3 1 .8 8 1 9 ,0 6 4 .0 0

M a r r o , L u ig i . .

M i t c h a m

W h o le s a le f r u it e r e r . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 12,171 4 ,2 9 5 .3 9 2 ,1 4 7 .0 0

M a y , F r a n c i s P a tr i c k

W e s t H e id e lb e r g G e n e r a l p r o d u c t io n

m a n a g e r

1 9 6 7 -6 8 t o 1 9 7 2 -7 3 1 ,822 1,0 1 2 .0 3 5 3 1 .0 0

M e r e d i th , J a m e s W illia m

M id d le P a r k

G a r a g e p r o p r i e t o r . 1 9 7 0 -7 1 4 ,0 1 3 1 ,5 1 0 .6 6 7 5 5 .0 0

M ic e li, T e r e s a ( d e c e a s e d )

K o o - W e e - R u p

I n v e s t o r . . 1 9 6 5 -6 6 t o 1 9 6 7 -6 8 4 ,2 9 7 1 ,1 8 4 .4 2 5 3 5 .0 0

M ile s , K e n n e t h J o h n .

B e n d ig o

P l u m b e r . . 1 9 6 1 -6 2 t o 1 9 7 1 -7 2 4 9 ,7 6 6 2 0 ,7 4 6 .0 9 1 0 ,3 7 3 .0 0

M ile s , R a o u l F o r te s c u e

(d e c e a s e d ) S e a f o r d

L a n d l o r d . . 1 9 6 7 -6 8 t o 1 9 7 1 -7 2 3 ,093 1 ,3 1 5 .0 2 6 4 1 .0 0

M ille r , R o b e r t . .

N o r t h c o t e

C a r c l e a n e r a n d

in v e s to r

1 9 6 3 -6 4 t o 1970-71 4 ,9 8 0 1 ,2 6 5 .9 7 6 2 7 .0 0

M ilt o n , R o b e r t A le x a n d e r

D o n c a s te r

B u il d e r a n d m a n a g e r 1 9 6 7 -6 8 t o 1 9 7 1 -7 2 7 ,7 6 7 3 ,8 2 1 .7 5 2 ,2 9 4 .0 0

M o lc k , E r ic A lv is .

M o n tr o s e

S e rv ic e s ta tio n o w n e r a n d p r o p e r t y

o w n e r

1 9 6 6 -6 7 t o 1970-71 1 4 ,356 5 ,2 3 5 .5 6 2 ,6 1 5 .0 0

M o n a c o , D o m e n i c o .

C a m b e r w e ll

R e t a il f r u it e r e r . 1 9 6 7 -6 8 t o 1 9 7 1 -7 2 6 ,7 7 3 2 ,2 3 1 .0 7 1,4 8 8 .0 0

M o n a c o , S a v e r io . .

C a m b e r w e ll

R e t a il f r u i t e r e r . 1 9 6 8 -6 9 t o 1 9 7 1 -7 2 6 ,5 0 0 2 ,0 9 4 .1 4 1 ,3 9 7 .0 0

M u r p h y , V ic t o r E d w a r d |

C a m b e r w e ll

R e a l e s ta te a g e n t

a n d d e v e lo p e r

1 9 6 5 -6 6 t o 1 9 6 9 -7 0 2 1 ,6 2 2 8 ,7 2 2 .6 7 4 ,3 5 9 .7 5

1 5 9

I N C O M E T A X

U nderstatement of Taxable I ncome Schedule I—continued

N a m e a n d a d d r e s s

S e e N o t e p a g e 145

(1 )

O c c u p a t io n

(2 )

F in a n c ia l y e a r

o r y e a rs

(3)

U n d e r ­ s ta t e m e n t o f ta x a b le

in c o m e

(4 )

I n c r e a s e in

t a x

a s s e s s e d

(5)

A d d iti o n a l ta x c h a rg e d

(6)

I n d iv id u a l s

V I C T O R I A

$ $ $

O g ilv ie , C h a r l e s L e s lie

C a u lfie ld

R e t ir e d te a c h e r . 1 9 6 6 -6 7 to 1 9 6 9 -7 0 7 ,1 4 8 2 ,5 4 0 .2 2 1 ,0 1 4 .0 0

O ’N e ill, N o r m a n J o h n

S h e p p a r t o n

B a tte r y m a n u f a c t u r e r

1 9 6 8 -6 9 to 1 9 7 1 -7 2 4 8 ,7 6 3 2 6 ,5 2 7 .3 8 1 1 ,1 7 5 .0 0

P a p a d o p o u l o s , L o u i s .

N o r t h c o t e

R e a l e s ta te c o m m ­

is s io n a g e n t

1 9 6 7 -6 8 t o 1 9 7 2 -7 3 2 4 ,4 8 5 7 ,9 5 3 .3 9 3 ,5 7 0 .0 0

P a r k s , G e o r g e B e r n a r d

M o r d ia l lo c

U s e d c a r d e a le r . 1 9 6 5 -6 6 a n d 1 9 6 6 -6 7 1 0 ,285 2 ,8 7 6 .7 9 1 ,4 5 2 .0 0

P a s c o e , L e o n a r d H a r o l d

M a r y b o r o u g h

B u ild e r . . 1 9 6 3 -6 4 to 1 9 7 1 -7 2 3 4 ,3 4 9 1 3 ,4 8 7 .1 2 6 ,7 4 4 .0 0

P a t e r s o n , C o li n N ic h o l ls

S u n s h i n e

B u ild e r . . 1 9 6 6 -6 7 to 1 9 7 0 -7 1 12,2 1 8 4 ,3 9 2 .7 5 1 ,7 5 6 .0 0

P a v lid is , G e o r g e . .

N o r t h A l t o n a

C a f e p r o p r i e t o r . 1 9 6 9 -7 0 to 1 9 7 1 -7 2 7 ,2 7 4 2 ,0 9 0 .4 9 8 3 5 .0 0

P a v lid is , G r e g o r io s

M e n e l a o s D o n c a s t e r

D ir e c t o r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 3 3 ,2 5 9 1 3 ,9 2 3 .5 5 6 ,9 5 9 .0 0

P e a r c e , L e s lie G e r a ld

B a l la r a t

B u ild e r . . 1 9 6 6 -6 7 to 1 9 7 0 -7 1 3 ,8 1 2 1 ,0 3 6 .2 6 5 1 7 .0 0

P e n n y , A le x a n d e r

C la r e n c e S u n b u r y

C o m p a n y d i r e c t o r 1 9 6 6 -6 7 to 197 0 -7 1 2 5 ,0 0 0 8 ,8 2 9 .5 5 3 ,5 9 8 .0 0

P e n n y , I n a G w e n . .

S u n b u r y

C o m p a n y d i r e c t o r 1 9 6 6 -6 7 to 197 0 -7 1 2 3 ,7 0 3 7 ,6 7 2 .4 3 3 ,1 5 2 .0 0

P e te r s , C h a r l e s A l b e r t

( d e c e a s e d ) H a w t h o r n

I n v e s to r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 5,041 1 ,7 8 3 .8 4 8 9 3 .0 0

P h ilp o t , W a lte r B a y lis s

E a s t K e w

I n v e s to r . . 1 9 6 7 -6 8 to 1 9 7 0 -7 1 5,321 1,622.51 8 0 9 .0 0

P r a d o l i n , A n n a . .

N o b le P a r k

S e rv ic e s ta t io n

p r o p r ie tr e s s

1 9 6 6 -6 7 a n d 1 9 6 9 -7 0

t o 1 9 7 2 -7 3

1 1 ,277 2 ,9 5 5 .6 8 1 ,4 7 8 .0 0

P r a d o l i n , L y d i a . .

N o b le P a r k

S e rv ic e s ta tio n p r o p r ie tr e s s a n d

f a r m e r

1 9 6 6 -6 7 , 1 9 6 9 -7 0 a n d 1 9 7 1 -7 2

7 ,083 1 ,4 5 1 .6 5 7 2 5 .0 0

P r a d o li n , P ie t r o . .

N o b le P a r k

S e rv ic e s ta t io n

p r o p r i e t o r a n d

f a r m e r

1 9 6 6 -6 7 , 1 9 6 9 -7 0 a n d 1 9 7 1 -7 2

7 ,033 1 ,6 5 8 .4 6 8 2 8 .0 0

P r a d o li n , T i to . .

N o b le P a r k

S e rv ic e s t a t i o n

p r o p r i e t o r M u n ic ip a l o ffic e r

a n d m u s ic te a c h e r

1 9 6 6 -6 7 a n d 1 9 6 8 -6 9 to 1 9 7 2 -7 3 12,785 3 ,1 9 9 .3 0 1 ,6 0 0 .0 0

P r e b b le , B a r r y R i c h a r d .

E a s t B e n tle ig h

1 9 6 7 -6 8 to 1 9 7 1 -7 2 6 ,5 9 8 3 ,5 2 3 .1 2 2 ,3 4 9 .0 0

P r e b b le , S h irle y A n n .

East B e n tle ig h

M u s ic te a c h e r . 1 9 6 8 -6 9 to 1 9 7 1 -7 2 17,549 7 ,1 7 1 .1 9 4 ,7 8 0 .0 0

P r e n d e r g a s t, R o b e r t

L a r r a d

E ls te rn w ic k

C le r k . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 9 ,1 7 0 4 ,3 0 9 .5 7 1 ,7 5 4 .0 0

P r ic h a r d , J o h n R e g in a ld

S ta w e ll

B o o k m a k e r . . 1 9 6 5 -6 6 to 1 9 6 9 -7 0 1 9 ,337 11,5 0 8 .6 3 5 ,7 5 4 .0 0

P u lle n , H u g h F r a s e r .

T r a r a lg o n

Plumbing i n s p e c to r 1 9 6 6 -6 7 to 1 9 7 1 -7 2 4 ,7 2 9 1 ,8 6 5 .1 4 9 2 9 .0 0

Q u in , W illia m P e te r .

S a n d r in g h a m

E n g in e e r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 6 ,5 6 6 3 ,0 7 5 .0 2 1 ,5 3 4 .0 0

R a d t k e , D ie t e r H e r m a n

C a u lfie ld

Pastrycook . . 1 9 6 5 -6 6 to 1 9 6 9 -7 0 5 ,4 4 0 1 ,8 8 7 .4 9 7 5 5 .0 0

1 6 0

I N C O M E T A X

U nderstatement of T axable Income

S c h e d u le I— continued

Name and address

S e e N ote page 145

(1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

$ $ s

VICTORIA

I n d iv i d u a l s

R a d t k e , H e le n M a r g a r e t P a s t r y c o o k . . 1 9 6 5 -6 6 t o 1 9 6 9 -7 0 6 ,3 8 0 2 ,1 3 6 .6 8 8 5 5 .0 0

C a u lf ie ld

R a l e ig h , G e r a l d . . I n v e s to r , b u il d e r a n d 1 9 6 5 -6 6 t o 1 9 7 0 -7 1 1 4 1 ,1 9 7 7 4 ,2 8 5 .7 0 5 5 ,7 1 4 .0 0

C l a y t o n p r i m a r y p r o d u c e r

R a l e ig h , J e a n . . I n v e s to r , b u il d e r a n d 1 9 6 5 -6 6 t o 1 9 7 0 -7 1 1 4 1 ,1 9 7 7 4 ,2 8 5 .7 0 5 5 ,7 1 4 .0 0

C l a y t o n p r im a r y p r o d u c e r

R a m a d a n , Z e n e l . . W a te r s id e w o r k e r 1 9 6 7 -6 8 to 1 9 7 1 -7 2 4 ,7 5 3 1 ,2 8 5 .0 5 6 1 8 .0 0

E s s e n d o n a n d p r o p e r t y

o w n e r

R a y n e s , H e le n a M a r y . N u r s e . . 1 9 6 2 -6 3 to 1 9 7 1 -7 2 2 4 ,8 7 3 8 ,9 6 1 .7 0 4 ,4 8 0 .0 0

H a ll a m

R e illy , J a m e s E d w a r d . T .V . te c h n ic ia n . 1 9 6 7 -6 8 t o 1 9 7 0 -7 1 3 ,4 8 4 1 ,2 1 0 .6 6 5 1 1 .0 0

H a m p t o n

R i c h a r d s o n , F r e d e r i c k N e w s a g e n t . . 1 9 5 4 -5 5 t o 1 9 7 0 -7 1 1 4 2 ,8 2 4 6 9 ,3 5 1 .3 7 3 4 ,6 7 3 .0 0

T h o m a s ( d e c e a s e d ) E a s t O a k le ig h R id e r , M a x w e ll H a r v e y R e f in e r y e n g in e e r . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 3 ,4 3 0 1 ,4 0 6 .3 8 7 0 0 .0 0

G le n Ir is

R is s m a n n , A l b e r t . . R e t ir e d m ill m a n a g e r 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 6 ,6 2 8 1.619.51 8 0 7 .0 0

H o r s h a m

R o b e r t s o n , J o h n G e n e r a l m a n a g e r 1 9 6 6 -6 7 to 1 9 7 1 -7 2 1,929 1 ,1 2 2 .9 0 5 6 2 .0 0

M a x w e ll a n d d ir e c to r

M o o r a b b i n R o b i n s o n , M e r v y n R e t ir e d s c h o o l 1 9 5 7 -5 8 to 1 9 7 0 -7 1 8,301 3 ,1 5 7 .0 7 1 ,7 1 4 .0 0

M a n s fie ld te a c h e r a n d

R e d C liffs la n d lo r d

R o g e r s , P a t r i c k J o h n . B r e a d s a le s m a n . 1 9 6 7 -6 8 to 1 9 6 9 -7 0 4,561 1 ,1 5 9 .3 3 5 7 9 .0 0

P a s c o e V a le S o u th a n d 1 9 7 1 -7 2

R u m b l e , K e v in L y le . S c r a p m e ta l d e a le r 1 9 6 6 -6 7 t o 197 0 -7 1 1 9 ,236 4 ,2 9 3 .6 5 2 ,1 4 7 .0 0

B a l la r a t a n d fa r m e r

S a b a - B e ju c k le y , N ic h o l a s C lo t h in g 1 9 6 6 -6 7 to 1 9 7 0 -7 1 5 ,1 3 4 2 ,0 8 2 .0 2 1 ,0 4 0 .0 0

( d e c e a s e d ) m a n u f a c tu r e r

E lw o o d

S a lf a s , M ic h a e l . . M a il o ffic e r a n d la n d 1 9 6 6 -6 7 to 1 9 7 1 -7 2 8 ,0 2 6 2 ,5 7 9 .9 8 1 ,2 8 7 .0 0

C la y to n d e a le r

5 4 5 .0 0 S a v a g e , E lle n M a r y . I n v e s to r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 4 ,2 9 6 1 .0 9 3 .2 4

S u r r e y H ills

2 ,4 7 4 .0 0 S c h e l la n d e r , E d w a r d . H a n d b a g 1 9 6 6 -6 7 to 1 9 7 0 -7 1 14,587 4 .9 5 4 .6 4

M a r ib y r n o n g m a n u f a c tu r e r

2 ,6 5 4 .0 0 S c h u b a c k , D o n a l d L a n d lo r d , b o o t 1 9 6 6 -6 7 to 1 9 7 1 -7 2 17,2 7 7 5,3 1 3 .9 1

G o r d o n r e p a i r e r a n d

Sale r e t a il e r

S c h w in d , B a r r y M a lc o lm B r ic k la y e r . . 1968-69 to 1971-72 11.022 3,1 7 6 .4 1 1 ,5 8 6 .0 0

N o b le P a r k

7 8 0 .0 0 S e v a s to p o u l o s , V a s ilio s . T a x i o p e r a t o r . . 1 9 6 5 -6 6 to 197 0 -7 1 5 .2 7 3 1 ,6 8 1 .3 9

A b b o ts f o r d

539.00 S h a n n o n , R u p e r t P a u l I n v e s to r . . 1 9 6 6 -6 7 to 1 9 6 9 -7 0 6 ,7 7 3 1.479.51

( d e c e a s e d ) M u r r u m b e e n a

161

I N C O M E T A X

U nderstatement of Taxable Income

S c h e d u le I — continued

N a m e a n d a d d r e s s

S e e N o t e p a g e 145

(1)

O c c u p a t io n

(2 )

F in a n c ia l y e a r

o r y e a rs

(3)

U n d e r ­ s ta t e m e n t o f ta x a b le

in c o m e

(4 )

I n c r e a s e in

ta x

a s s e s s e d

(5 )

A d d iti o n a l ta x c h a r g e d

(6 )

I n d iv id u a l s

V I C T O R I A

$ $ $

S h e p p a r d W illia m

(d e c e a s e d ) M e lb o u r n e

W a te r s id e w o r k e r

a n d in v e s t o r

1 9 6 7 -6 8 to 1 9 7 1 -7 2 9 ,3 0 5 2 ,2 5 1 .8 3 1 ,1 0 0 .0 0

S h e r a r d , C o li n F r a n c i s

C o b u r g

S e rv ic e s t a t i o n .

p r o p r i e t o r

1 9 6 5 -6 6 to 1 9 6 8 -6 9 1 1 ,673 3 ,4 2 9 .0 5 1 ,7 1 5 .0 0

S h o r t, E d w a r d A le x a n d e r

S a le

B u ild e r . , 1 9 6 6 -6 7 to 1 9 7 1 -7 2 8.111 2 ,7 8 8 .0 3 j 1 ,1 1 1 .0 0

S h o r t, J o h n E r n e s t .

S a le

B u ild e r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 1 3 ,872 5,3 4 6 .5 1 2 ,1 3 4 .0 0

S im o n s , A lf r e d . .

R o c k b a n k

G r a z ie r , t r o t t i n g

o w n e r a n d t r a i n e r

1 9 6 6 -6 7 a n d 1 9 6 8 -6 9

t o 1 9 7 1 -7 2

9 ,6 5 5 3 ,5 9 9 .9 4 1 ,2 2 1 .0 0

S im s , C h a r l e s . .

R e s e r v o ir

T o o l r o o m m a n a g e r 1 9 6 9 -7 0 t o 1 9 7 1 -7 2 2 ,4 2 3 1 ,0 1 2 .1 7 5 0 7 .0 0

S k in n e r , M u r ie l J e a n .

E a s t M a lv e r n

I n v e s to r . . 1 9 6 3 -6 4 t o 1 9 7 1 -7 2 2 2 ,5 2 4 6 ,7 7 4 .3 2 3 ,3 8 4 .0 0

S m ith , M a r jo r i e G r a c e

A v e ril B u n d o o r a

N u r s e . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 4 ,3 0 6 1 ,7 7 7 .7 2 8 8 6 .0 0

S ta m m e r s , H e n r y J o h n

(d e c e a s e d ) N e e r im

F a r m e r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 15,501 4 ,1 3 0 .0 2 2 ,0 6 3 .0 0

S ta m m e r s , W illia m J o h n

N e e r im

F a r m e r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 13,2 5 0 3 ,7 1 1 .9 0 1 ,2 3 5 .0 0

S ta t h a m , A le x a n d e r .

A lb e r t P a r k

In v e s to r a n d m a r in e

s te w a rd

1 9 6 7 -6 8 to 1 9 7 1 -7 2 3 ,3 0 6 1,3 8 3 .3 2 6 9 0 .0 0

S te e le , G la d y s E ls ie .

P o r t F a ir y

L a d ie s d r a p e r . . 1 9 6 2 -6 3 to 1 9 7 1 -7 2 1 1 ,946 3 ,0 2 5 .6 9 1.5 1 0 .0 0

S te e le . T h o m a s O s w a ld .

P o r t F a ir y

L ife a s s u r a n c e

a g e n t

1 9 5 4 -5 5 to 1 9 7 1 -7 2 105,593 4 9 ,0 2 5 .3 4 2 4 ,5 1 0 .0 0

S to n e , M a r g a r e t E m m a

P ric e M o n t A lb e r t

I n v e s to r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 4 ,7 9 6 1,1 3 2 .1 9 5 6 3 .0 0

S tr a c h a n , B e tty R o s in a .

M a n if o ld H e ig h ts P r iv a te s e c r e t a r y . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 3,781 1,0 1 5 .5 0 5 0 8 .0 0

S w ift, Iv y I re n e

(d e c e a s e d ) B la c k b u rn

In v e s to r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 2 ,6 0 6 1,3 7 0 .1 9 6 8 3 .0 0

T a r r a n t , A r t h u r H a r r y

D y n o c k (d e c e a s e d ) N o r t h c o t e

F i t t e r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 3,871 1,1 2 5 .1 4 5 6 0 .0 0

T e e s e , L e o n a r d O liv e r

(d e c e a s e d ) W a rr a g u l

In v e s to r . . 1 9 6 6 -6 7 to 197 0 -7 1 3,7 0 3 1,7 5 8 .2 8 8 7 9 .0 0

T e m p le to n , K e n n e th

S id n e y H a w th o r n

E le c tric a l c o n t r a c to r

1 9 5 8 -5 9 , 1 9 5 9 -6 0 ,

1 9 6 1 -6 2 to

1 9 6 3 -6 4 , 1 9 6 5 -6 6 to 1 9 6 9 -7 0 a n d

1 9 7 1 -7 2

2 8 ,5 8 7 13,1 9 7 .4 7 6 .5 9 1 .0 0

T h o m a s , E liz a b e th E lle n

(d e c e a s e d ) E a s t M e lb o u r n e

C le a n e r . . 1 9 6 7 -6 8 to 1 9 7 1 -7 2 4 ,4 9 6 1,1 1 0 .1 6 5 5 4 .0 0

1 62

I N C O M E T A X

U nderstatement of T axable Income Schedule I—c o n tin u e d

N a m e a n d a d d r e s s

S e e N o t e p a g e 145

0 )

O c c u p a t io n

(2 )

F i n a n c i a l y e a r

o r y e a rs

(3 )

U n d e r ­ s ta t e m e n t o f ta x a b le

in c o m e

(4)

I n c r e a s e in

ta x

a s s e s s e d

(5 )

A d d iti o n a l ta x c h a rg e d

(6)

I n d iv i d u a l s

V I C T O R I A

$ s $

T h o m a s , H a r o l d . .

F e r n t r e e G u lly

F i t t e r a n d t u r n e r

a n d p r o p e r t y

o w n e r

1 9 6 7 -6 8 to 1 9 7 1 -7 2 7 ,3 0 0 3 ,3 0 4 .0 6 1 ,6 5 0 .0 0

T o n i a z z o , F l o r i a n o

( d e c e a s e d ) M y r tle f o r d

T o b a c c o g r o w e r . 1 9 5 1 -5 2 to 1 9 5 3 -5 4 ,

1 9 5 6 -5 7 to

1 9 6 6 -6 7 a n d

1 9 6 8 -6 9

1 0 6,113 5 3 ,2 4 3 .7 4 2 6 ,6 2 1 .0 0

T o n i a z z o , I r m a . .

M y r tle f o r d

T o b a c c o g r o w e r . 1 9 6 0 -6 1 t o 1 9 6 6 -6 7

a n d 1 9 6 8 -6 9

4 7 ,2 0 0 2 4 ,0 4 6 .4 8 1 2 ,0 2 2 .0 0

T r a v e r s e , A ld o E m ilio .

E a s t O a k le ig h

B u ild e r a n d p r o p e r t y

o w n e r

1 9 6 5 -6 6 to 1 9 6 8 -6 9 9 ,8 5 0 2 ,1 3 2 .8 0 8 5 3 .0 0

T r a v e r s e , D o m e n i c a C la r a

E a s t O a k le ig h

B u il d e r a n d p r o p e r t y

o w n e r

1 9 6 5 -6 6 t o 1 9 7 0 -7 1 1 0 ,779 2 ,4 3 1 .3 5 9 7 2 .0 0

T u c k e r , J e s s ie I s a b e l .

N o r t h B a lw y n

I n v e s to r . . 1 9 6 9 -7 0 to 1 9 7 1 -7 2 2,181 1 ,2 4 2 .8 0 6 2 1 .0 0

T u e n a , R o y s t o n P e t e r .

M o n t A lb e r t

F i t t e r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 6 ,5 0 4 1,8 2 6 .8 3 9 1 1 .0 0

T w y c r o s s , V io le t

E l iz a b e th K e w

I n v e s t o r . . 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 9 ,0 9 0 3 ,6 7 8 .8 0 1 ,8 3 9 .0 0

V a n E e d e , C y r il

(d e c e a s e d ) B r ig h t o n

O p tic ia n . . 1 9 6 7 -6 8 t o 1 9 7 1 -7 2 2 3 ,1 5 2 1 1,817.12 3 ,9 3 6 .0 0

V ic t o r , C e s s il . .

E a s t B r u n s w ic k

C h e m is t a n d

c h i r o p o d is t

1 9 5 7 -5 8 to 1 9 6 9 -7 0 2 2 9 ,3 2 7 1 2 5 ,2 2 7 .6 6 5 5 .1 3 7 .0 0

W a d e , S ta n le y G e o r g e .

W e s t E s s e n d o n

B o o k m a k e r . . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 5 7 ,0 7 7 2 5 ,9 3 2 .0 2 1 2 ,9 6 5 .0 0

W h i tty , J o h n R a y m o n d .

B e a u m a r is

P r o d u c t i o n m a n a g e r 1 9 6 7 -6 8 to 1 9 7 0 -7 1 2,021 1 ,0 4 9 .3 6 5 2 4 .0 0

W illia m s , L e o n a r d C e c il

C a m b e r w e ll

B u il d e r . . 1 9 6 6 -6 7 t o 1 9 7 0 -7 1 2 3 ,7 4 7 1 2 ,4 1 4 .1 9 8 ,2 7 5 .0 0

W ils o n , A r n o l d D o u g la s

B a c c h u s M a r s h

B u ild e r a n d

c o n t r a c t o r

1 9 6 6 -6 7 a n d 1 9 6 8 -6 9

to 1 9 7 0 -7 1

2 9 ,3 0 7 10,811.81 4 .3 2 5 .0 0

W ils o n , J a m e s F r e d e r i c k

(d e c e a s e d ) B a c c h u s M a r s h

B u il d e r a n d

c o n t r a c t o r

1 9 6 6 -6 7 t o 1 9 6 9 -7 0 2 7 ,8 2 2 1 4 ,8 5 1 .2 4 7 ,4 2 5 .0 0

Y a n n a r a k i s , D i m o s .

K a n g a r o o G r o u n d

Primary producer . 1 9 6 6 -6 7 t o 1 9 7 0 -7 1 15,933 3 ,6 7 9 .4 4 1 ,8 3 9 .0 0

Y e r o n d a is , G e o r g e .

F a w k n e r

P lu m b e r a n d

b u ild e r

1 9 6 7 -6 8 t o 1 9 7 1 -7 2 12,002 4 ,6 9 2 .3 2 2 ,3 4 5 .0 0

Y e r o n d a is , O u r a n i a .

F a w k n e r

P lu m b e r a n d

b u ild e r

1 9 6 7 -6 8 to 1 9 7 1 -7 2 12,359 4 ,8 3 5 .8 0 2 ,4 1 7 .0 0

Y o u n g , N o r m a n

(d e c e a s e d ) Y a r r a J u n c t i o n

C ompanies, etc.

I n v e s t o r . . 1 9 6 7 -6 8 to 1 9 7 1 -7 2 7,721 1,471.79 7 9 0 .0 0

E. & J. A lb e r s P ty L td . G u e s t h o u s e a n d

r id in g s c h o o l

p r o p r ie to r s

1 9 6 6 -6 7 t o 1 9 6 8 -6 9 15,735 4 ,4 0 3 .4 5 1,4 6 8 .0 0

D . & G. D i F a b r iz io

S te e l F a b r i c a t i o n s P ty

L td

S te e l f a b r i c a to r s . 1 9 6 7 -6 8 to 1 9 7 2 -7 3 2 5 0 ,4 8 4 13 0 ,9 9 9 .7 5 5 7 ,2 8 5 .0 0

163

13941/75—7

I N C O M E T A X

U nderstatement of Taxable Income S c h e d u le I— continued

N a m e a n d a d d r e s s

S e e N o t e p a g e 1 4 5

( 1 )

O c c u p a t i o n

(2)

F i n a n c i a l y e a r

o r y e a r s

(3)

U n d e r ­

s t a t e m e n t

o f t a x a b l e

i n c o m e

( 4 )

I n c r e a s e i n

t a x

a s s e s s e d

(5)

A d d i t i o n a l

t a x

c h a r g e d

( 6 )

C o m p a n i e s , e t c .

VICTORIA

s $ $

Ham ilton and Milton Pty Ltd Builders and shopfitters

1970-71 and 1972-73 10,009 4 , 8 7 6 . 1 2 1,951.00

Instock Cartons Pty Ltd. Cardboard container manufacturers

1966-67 to 1971-72 42,548 1 5 , 8 4 9 . 0 8 6,335.00

Lingtrim Pty Ltd . . Nylon pleaters . 1968-69 and 1969-70 11,397 5 , 8 4 8 . 8 0 2,627.00

Myvore Village Pty Ltd Investors . . 1965-66 to 1967-68 7,559 2,078.72 1,039.00

Peter Rowland Pty Ltd . Caterers . . 1969-70 to 1973-74 12,339 4,855.93 1,619.00

F . R. Tuck & Co. .

(Brokers) Pty Ltd Merchants and brokers 1969-70 to 1971-72 10,784 4,326.10 1,210.00

T o t a l (208) . 3,878,684 1,693,837.78 893,172.12

QUEENSLAND

I n d iv id u a l s

B e ll,. A l b e r t R i c h m o n d . B u ild in g . . 1 9 6 7 -6 8 7 ,1 2 4 3 ,9 1 3 .1 2 1 ,0 3 8 .0 0

(d e c e a s e d ) K a lin g a B id n e r , K e v in . .

c o n t r a c t o r

T r u c k d r iv e r . . 1 9 6 5 -6 6 t o 1 9 7 1 -7 2 1 5 ,1 7 9 3 ,3 8 4 .9 2 1 ,3 5 0 .0 0

W i n d s o r

B o la n d , R ic h a r d E g a n . M o te l m a n a g e r a n d 1 9 6 5 -6 6 to 1 9 7 0 -7 1 1 7 ,9 7 6 8 ,3 1 9 .0 4 4 ,1 5 7 .0 0

F l o r i d a G a r d e n s

B o la n d , V io le t R o s e .

fla ts p r o p r i e t o r

M o te l m a n a g e r e s s 1 9 6 5 -6 6 to 197 0 -7 1 1 7 ,4 9 0 7 ,4 0 8 .5 2 3 ,7 0 1 .0 0

F l o r i d a G a r d e n s

B o y le , J a m e s . .

a n d fla ts

p r o p r ie tr e s s T r u c k d r iv e r . . 1 9 6 5 - 6 6 ,1 9 6 6 - 6 7 a n d 1 2 ,9 7 2 3 ,0 0 4 .2 4 8 6 4 .0 0

Y e r o n g a

B r a z z a le , G u id o . . T o b a c c o g r o w e r .

1 9 6 8 - 6 9 to 1 9 7 0 -7 1 1 9 6 6 -6 7 t o 1 9 7 1 -7 2 6 ,5 8 6 2 ,1 8 5 .9 0 7 2 5 .0 0

M u tc h ilb a B r a z z a le , M a rc e lla . T o b a c c o g r o w e r . 1 9 6 6 -6 7 to 1 9 7 1 -7 2 6 ,5 8 8 2 ,1 8 6 .5 0 7 2 6 .0 0

M u tc h i lb a B u llo c k , R a y m o n d C o n t r a c t c a r r i e r 1 9 6 6 -6 7 to 1 9 7 0 -7 1 5 ,0 6 6 1 ,6 2 0 .5 4 6 4 6 .0 0

A lw y n G a y th o r n e C a m b r u z z i, G u is e p p in a . C a n e f a r m e r . . 1 9 6 9 -7 0 a n d 197 0 -7 1 10,683 2 ,9 6 8 .8 7 1 ,1 8 7 .0 0

M illa r o o

C a m b r u z z i, M a r io C a n e f a r m e r . . 1 9 6 9 -7 0 a n d 1 9 7 0 -7 1 9 ,8 6 5 2 ,8 8 6 .2 7 1 ,1 5 3 .0 0

V itt a r io M illa r o o

C a p a n n a - P is c e , A n to n io P a in t e r . . 1 9 6 5 -6 6 to 1 9 7 0 -7 1 13,613 3 ,1 5 4 .8 8 1 ,2 5 9 .0 0

G r e e n s lo p e s C a p e lli, C e ls a . . H o te l e m p lo y e e a n d 1 9 6 4 -6 5 to 197 0 -7 1 9 ,7 5 2 1,5 5 1 .1 2 7 7 3 .0 0

M a r e e b a

C a p e lli, P ie tr o . .

to b a c c o g r a d e r

L a b o u r e r a n d 1 9 6 5 -6 6 to 1 9 7 0 -7 1 9 ,0 6 8 1,7 4 7 .1 3 8 7 1 .0 0

M a r e e b a

C u r r a n , P e te r . .

to b a c c o g r a d e r

T a x i o w n e r - d r iv e r . 1 9 6 6 -6 7 to 1 9 7 0 -7 1 2 2 ,7 6 0 7 ,3 1 7 .6 7 3 ,6 5 6 .0 0

M o u n t Isa

D o r f le r , F r ie d r i c h . R e t ir e d m o n e y 1 9 6 6 -6 7 to 1970-71 4 ,8 4 5 2 ,1 1 0 .7 3 8 8 9 .0 0

S o u th B r is b a n e

D u r s t o n , E n a S o p h ia .

le n d e r C a s h ie r - c le r k . . 1 9 6 5 -6 6 to 1 9 7 1 -7 2 4 ,8 3 3 1,3 1 2 .4 3 5 1 1 .0 0

M o u n t Isa

* S e e a l s o Schedule A2, page 49.

164

I N C O M E T A X

U nderstatement of Taxable Income

S c h e d u le I— continued

Name and address

S e e N o t e p a g e 1 4 5

( 1 )

Occupation

(2)

Financial year or years

(3)

Under­ statement o f taxable

income

(4)

Increase in tax assessed

( 5 )

Additional tax charged

(6)

$ $ s

Individuals

Fachin, Guiseppe . Building 1966-67 to 1971-72 20,649 9,857.45 3,721.00

Toowoomba Fiocco, Eldino Aldo .

Southport Geeson, Cecil Henry .

contractor Property owner . 1966-67 to 1968-69 15,564 5,302.45 1,589.00

Carrier . . 1965-66 to 1970-71 7,260 3,387.80 1,351.00

Halifax

Geeson, M aria . . Carrier-clerk . 1965-66 to 1970-71 8,042 3,802.46 1,518.00

Halifax

Gillam, George Thomas Storekeeper and ice 1966-67 and 1968-69 5,385 1,628.51 649.00

Toowoomba vendor to 1970-71

Goakes, Wilfred Robert Printer . . 1963-64 to 1967-68 10,643 4,207.40 1,174.00

South Brisbane Hack, Stanley Edgar . Builder . . 1965-66 to 1967-68 9,345 4,409.06 1,616.00

Woombye and 1969-70

Herron, Kerry Cameron Valuer . . 1968-69 to 1970-71 11,051 5,249.29 1,591.00

N orth Rockhampton Iozzi, Arm ando Luigi . Bricklayer . . 1968-69 to 1971-72 7,119 1,728.44 549.00

Kedron

Ius, Antonio . . Tobacco farmer . 1963-64 to 1965-66 30,717 9,470.20 4,732.00

Mutchilba and 1967-68 to

1971-72

James, Douglas Sydney Bookmaker . . 1965-66 to 1968-69 12,396 6,617.85 2,575.00

Coorparoo Jamieson, George M otor dealer . 1966-67 to 1971-72 11,346 6,342.60 2,474.00

Dempster North Rockhampton Karagiannis, Andreas . Mixed business . 1968-69 to 1971-72 6,707 1,597.43 637.00

West End proprietor

630.00 Karagiannis, Tsambica Mixed business 1968-69 to 1971-72 6,707 1,580.76

West End proprietress

1,467.00 Keane, Timothy . . Taxi owner-driver . 1966-67, 1967-68 15,492 3,671.97

M ount Isa and 1969-70 to

1971-72

Kennedy, A rthur . .

Morningside Klein, Kevin Leo .

Truck driver . . 1967-68 to 1970-71 8,471 2,125.27 706.00

Carrier . . 1966-67 to 1971-72 11,482 2,479.97 971.00

Toowoomba Kowald, Gordon Harold Builder . . 1966-67 to 1971-72 4,859 1,581.47 628.00

Toowoomba . .

3,732.00 Little, Robert Clince . Property and guest 1966-67 to 1971-72 29,075 7,469.99 Tweed Heads . house owner

1,102.00 Mascadri, Ezio Bruno . Taxi proprietor . 1966-67 and 1968-69 9,600 3,005.17 Mount Isa to 1971-72

2,189.00 Mason, W olford Seymour Plant hirer . . 1966-67 and 1968-69 16,195 5,540.19 Bald Hills to 1971-72

548.00 Mazzoleni, Christina . Tobacco farmer . 1965-66 to 1970-71 6,427 1,700.56

Mutchilba

613.00 Mazzoleni, Marciano . Tobacco farmer . 1965-66 to 1970-71 7,011 1,891.27

Mutchilba

13,003.00 Moss, Edwin Ronald . Duplicating 1962-63 to 1970-71 59,344 26,013.98

Southport office proprietor

165

I N C O M E T A X

U nderstatement of Taxable I ncome S c h e d u le I— continued

Name and address

S e e Note page 145 (1)

I

Occupation

1

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

QUEENSLAND

$ $ S

Moss, Mary Macdonald Southport 1 Duplicating office 1 proprietress

1962-63 to 1970-71 60,628 I 26,372.81 13,183.00

McNabb, Donald Alexander Silkstone

1 Floor surfacer . 1966-67 to 1971-72 15,408 2,985.64 1,192.00

Oravala, Eero Matlas . Mount Isa Underground .

timberman

1966-67 to 1972-73 13,399 5,935.38 2,371.00

Pearce, Leonard Herbert Too won g Builder . . 1965-66 to 1971-72 29,826 9,608.73 2,727.60

Piotto, Pietro . .

Millaroo

Cane farmer . . 1968-69 to 1971-72 11,613 4,262.08 1.702.00

Pizzatti, Angelina .

Dimbulah

Tobacco farmer . 1966-67 to 1971-72 16,459 2,571.23 718.00

Pizzatti, Pietro . .

Dimbulah

Tobacco farmer . 1966-67 to 1971-72 16,460 3,946.01 1,286.00

Reda, Antonietta .

Mutchilba

Tobacco farmer . 1966-67 to 1971-72 9.859 1,924.23 766.00

Reda, Pasquale . .

Mutchilba

Tobacco farmer . 1966-67 to 1971-72 10.882 2,176.94 868.00

Romaguera, Jamie .

Dorrington

Building contractor

1966-67 to 1970-71 20.861 8,068.99 2,664.00

Smith, Anthony . .

Sunnybank

Landscape gardener

1965-66,1966-67 and 1968-69 tol970— 71 14,268 3,029.24 1,209.00

Stevens, William D aniel. Bulimba Superannuation pensioner

1966-67 to 1971-72 10,433 3,535.41 1,411.00

Talbot, Edward . .

MacGregor

Engraver and keycutter

1966-67 to 1971-72 7,769 2,586.83 1,289.00

Talbot, Margaret Doreen MacGregor

Engraver and keycutter

1966-67 to 1971-72 7,769 2,586.83 1,289.00

Thomson, Arthur Warwick Thargomindah

Foreman . . ! 1958-59 to 1970-71 7,972 2,274.83 904.00

Tooma, Anthony Edward South Brisbane

Plumber . . 1966-67 to 1970-71 13,100 3,096.24 | 1,237.00

Tooma, Frederick .

South Brisbane

Storekeeper . . i 1965-66 to 1970-71 11,115 2,907.51 1,1 10.00

Tooma, James . .

Surfers Paradise Plumber and property owner 1966-67 to 1970-71 17,789 5,634.16 2,254.00

Van Echtelt, Bernardus Theodorus Mount Isa

General storekeeper

1966-67 to 1970-71 13,673 5,096.08 2,036.00

Walls, George Arthur . Enoggera General carrier . 1965-66 to 1970-71 10,869 2,050.85 816.00

Whyte, Keith James Glen Stafford

Builder . . 1965-66 to 1970-71 J 17,483 6,915.57 2,154.00

Wilson, Calver Austin . Mount Isa Fuel agent and property owner

1965-66 to 1971-72 15,563 4,686.81 1,869.00

Wilson, Edna . .

Mount Isa

Fuel agent and property owner 1965-66 to 1971-72 14,650 4,503.06 1 1.795.00

Zande, Leveo Patrick · Nambour Builder . . 1969-70 and 1970-71 11,165 5,342.74 1,708.00

Total (64) * . . 884,300 297,831.62 121,829.60

• S e e a l s o S chedule A2, page 49.

166

I N C O M E T A X

U nderstatement of T axable Income S c h e d u le I— continued

Name and address

S e e N ote page 145

(1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable

income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

Individuals

SC>UTH AUSTRALIA

$ $ $

Bensch, Lawrence Malcolm Tanunda

Contractor . . 1966-67 to 1970-71 19,696 9,578.29 3,829.00

Berezowski, Mikolai . Royal Park Driver . . 1970-71 to 1972-73 7,836 2,317.11 800.00

Bull, William Harris . Naracoorte Contractor . . 1966-67 to 1971-72 6,641 1,640.22 653.00

Cole, Francis . .

West Beach

Bookmaker . . 1966-67 to 1971-72 19,059 8,278.55 3,308.00

Concannon, Dora May . Fulham Licensed victualler

1964-65 to 1968-69 6,923 1,994.24 685.00

Cutri, Vincenzo . .

Croydon

Restaurant keeper . 1966-67 to 1970-71 6,679 1,342.72 509.00

De Chellis, M aria .

St Peters

Salvage operator . 1966-67 to 1968-69, 1970- 71 and

1971- 72

7,357 2,442.92 975.00

De Chellis, Pasquale . St Peters Salvage operator . 1966-67 to 1968-69, 1970- 71 and

1971- 72

7,357 2,489.65 993.00

De Laine, Clifford Leon Ascot Park Kangaroo shooter and pet food shop

proprietor

1965-66 to 1971-72 9,926 2,823.28 938.00

De Vito, Rosa . .

Thebarton

Shopkeeper , . 1966-67 to 1971-72 10,391 3,582.72 1,191.00

De Vito, Silvio . .

Thebarton

Shopkeeper . . 1966-67 to 1971-72 10,391 3,628.15 1,206.00

Gough, William John . (deceased) Reynella

Grazier and investor 1969-70 and 1970-71 3,479 1,396.10 521.00

Harvey, Isabella Campbell (deceased) Adelaide

Lodging house and property owner 1961-62 to 1969-70 53,882 22,383.70 10,850.00

Hassen, Jack . .

Seacliff Park

Garage proprietor

1965-66 to 1967-68, 1969- 70 and

1970- 71

7,651 | 2,152.08 715.00

Heitmann, Colin Richard Rostrevor Manager . . 1962-63 to 1970-71 21,552 | 7,093.33 1 2,213.00

Heitmann, Gwenda Eileen Joy Rostrevor

Secretary . . 1962-63 to 1970-71 21,359 6,277.65 1,959.00

Jenkins, Elsie May (deceased) Myrtle Bank

Dry cleaner, opal

dealer and landlady

1957-58 to 1970-71 1 280,585 131,867.26 65,919.00

Jones, Henry Morgan (deceased) North Unley

Retired . . 1966-67 to 1970-71 7,843 2,402.07 953.00

Le Cornu, Norman Caldwell Seacliff

Retail furniture manager 1967-68 to 1971-72 17,801 8,022.25 . 2,536.00

Lunanova, Giuseppe . Semaphore Tiler . . 1965-66 to 1971-72 19,889 6,636.05 2,651.00

Meaney, Thomas Francis 1 West Croydon Manager . . 1962-63 to 1969-70 35,636 14.418.32 7,413.00

1 67

I N C O M E T A X

U nderstatement of Taxable Income Schedule I—continued

Name and address

S e e N ote page 145 (1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

Individuals

s o t JTH AUSTRALIA

$ s $

Milanese, Guiseppa . Norwood Gardener . . 1970-71 to 1972-73 5,616 1,482.70 579.00

Milanese, Michele .

Norwood

Gardener . . 1966-67 to 1972-73 14,525 3,133.50 1,250.00

Mundy, Donald Richard Reynella Driver . . 1970-71 to 1972-73 5,925 1,611.44 643.00

N unn, Richard Eli ,

via Marree

Manager and pastoralist

1966-67 to 1970-71 47,129 16,411.80 4,806.00

Oldham, Fulton Stanley William (deceased) Med indie

Representative and company director 1966-67 to 1970-71 8,991 5,214.19 2,082.00

Partridge, A rthur Henry Cheltenham Waterside worker . 1966-67 to 1971-72 6,144 1,655.80 659.00

P atching, W alter Reginald N orth Brighton

H orse trainer . 1965-66 to 1971-72 7,650 1,466.26 582.00

Roediger, Harry Frank . Yeelanna Farm er . . 1966-67 to 1971-72 3,554 1,712.48 670.00

Sabatka, Alois ,

Holden Hill

Carpenter . . 1965-66 to 1971-72 14,860 3,990.77 1,327.00

Stavrinou, Christina . Manningham Fish shop proprietress

1966-67 to 1971-72 16,020 4,941.66 1,971.00

Tsiolis, Ageliki . .

Adelaide

Fish cafe proprietress

1966-67 to 1970-71 7,015 1,960.97 859.00

Tsiolis, Stavros . .

Adelaide

Fish cafe proprietor

1966-67 to 1970-71 7,030 2,181.64 965.00

Van Der Lelie, Ludovicus Christianus Klemzig

Fencing contractor 1966-67 to 1971-72 8,197 1,813.40 601.00

Virgin, John Alan .

Victor Harbor

Building contractor. 1964-65 to 1967-68 and 1971-72 8,497 3,038.40 1,211.00

Virgin, Kevin Leslie , Victor Harbor Farm er and builder 1964-65 to 1971-72 12,119 5,359.1 1 1,587.00

Wilckens, Henry .

N orth Adelaide .

Company director, building and engineering consultant

1970-71 6,810 1,707.69 569.00

Total (37) * . 762,015 300,448.47 131,178.00

* S e e a l s o S chedule A2, page 49.

168

I N C O M E T A X

U nderstatement of T axable Income Schedule I—continued

N a m e a n d a d d r e s s

S e e N o t e p a g e 145

( 0

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

( 5 )

Additional tax charged

(6)

I n d i v i d u a l s

WES TERN AUSTRALIA S s s

Artiuczyk, M ateusz . Perth Carpenter, contractor and

property owner

1958-59 to 1971-72 14,518 3,268.51 1,624.00

Cooper, Edwin . .

Wilson

Plasterer . . 1966-67 to 1971-72 8,575 1,730.12 689.00

Symeou, George . .

Como

Business partner . 1966-67 to 1971-72 6,422 1,665.32 666.11

Symeou, Maria . .

Como

Business partner . 1966-67 to 1971-72 6,420 1,676.45 670.56

Thomson, Leslie Alexander R obert (deceased) Morley

Draper . , 1966-67 to 1971-72 32,443 16,003.20 6,397.00

Total (5) * . 68,378 24,343.60 10,046.67

TASMANIA

I ndividuals

A rcher, Brian R oper . Estate agent . . 1965-66 and 1967-68 3,717 1,646.18 656.00

Wynyard

Biyth, Lloyd Wilfred . Building contractor. to 1969-70 1967-68 to 1971-72 4,380 2,153.07 675.00

Launceston Biyth, R ona Olive . Building contractor. 1967-68 to 1971-72 4.245 2,085.25 675.00

Launceston Burleigh, Peter Robinson Company director . 1962-63 to 1969-70 20,868 11,964.56 3,984.00

Launceston Cannell, Myrtle Ruth . Hotel proprietress . 1963-64 to 1970-71 10,399 4,354.59 2,174.00

Zeehan

Cannell, Patrick John . Hotel proprietor . 1963-64 to 1970-71 10,399 4,046.00 2,018.00

Zeehan

Dodge, Claude . . Pastrycook . . 1965-66 to 1971-72 13,282 4,516.88 1,353.00

Glenorchy Frohm ader, Alfred Fitter and turner . 1967-68 to 1971-72 3,315 1,262.09 503.00

Charles (deceased) Queenstown Heerey, Francis Company director . 1960-61, 1961-62 17,719 8,723.28 6,536.00

Laurence New Town Jones, Raymond John . Manager . .

and 1965-66 to 1970-71 1957-58 to 1969-70 96,510 51,490.19 19,313.00

Montello

Long, Charles Alfred . Company director . 1965-66 to 1969-70 6,905 3,774.54 1,257.00

H obart

Long, Marjorie Joan . Company director . 1965-66 to 1969-70 4,825 1,600.45 531.00

H obart

Menzie, Doris Vera . Hotel proprietress . 1965-66 to 1968-69 8,881 3,167.99 934.00

Hobart

Menzie, Montrew Hotel proprietor . 1965-66 to 1968-69 7,920 2,830.09 851.00

Richard H obart

M orton, Colin Rex . Refrigeration 1965-66 to 1970-71 ' 7,066 3,095.54 1,030.00

Bumie engineer

* S e c a l s o S chedule A2, page 49.

169

I N C O M E T A X

U nderstatement of Taxable Income S c h e d u le I— continued

Nam e and address

S e e N ote page 145

(1)

Occupation

(2)

Financial year or years

(3)

Under­ statement o f taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

I ndividuals

TASMANIA

$ $ $

Osborne, David Wayne . Smithton Fisherman . . 1970-71 and 1971-72 12,292 2,139.27 1,068.00

Pipkin, Theo A rthur .

New Town

Electrical mechanic 1966-67 to 1971-72 5,247 1,510.20 600.00

Reynard, Hilary John . Kettering Fisherman . . 1964-65 to 1971-72 25,936 7,625.09 3,808.00

Sadek, Anton . .

Glenorchy

Builder , 1956-57 to 1964-65,

1966- 67 and 1967- 68

66,648 29,164.71 17,495.00

Sonners, Hedley John . Moonah Plasterer and concretor

1966-67 to 1971-72 23,980 9,139.62 4,570.00

Southam, Reginald Frederick Corbett Launceston

Manufacturer’s agent 1966-67 to 1971-72 9,196 3,776.06 1,256.00

Southam, Reginald James Craig Launceston

Manufacturer’s agent 1966-67 to 1971-72 7,126 2,275.92 755.00

Treweek, Trevor Richard Kingston

Solicitor . . 1970-71 4,001 2,218.63 1,109.00

Trinder, Raymond Walter East Devonport

Farm er and manufacturer

1968-69 to 1971-72 3,448 2.016.12 805.00

Valentine, Roger Stuart James Sandy Bay

Legal practitioner . 1964-65 to 1970-71 9,139 4,448.51 1,480.00

Van Garderen, Marinus. Ulverstone

C ompanies, etc.

Building contractor. 1966-67 to 1969-70 24,965 9,994.00 3,995.00

C. A. Long Pty Ltd . Cartage and general

contractors

1965-66 to 1969-70 14,251 4,666.55 1,554.00

C. O. Reynolds & Co.

Pty Ltd

Contractors and primary producers 1970-71 7,056 2,646.00 1,323.00

C. R. Morton Pty Ltd . Refrigeration engineers 1966-67 to 1970-71 5,744 1,943.72 647.00

F. L. Heerey Electrical 1 Pty Ltd Electrical contractors

1965-66 to 1970-71 13,664 4,090.45 2,042.00

Total (30) * . i 453,124.00 194,365.55 84,997.00

NORTHERN TERRITORY

I n d iv id u a l s

Celani, Antonio . .

Narrows

Plumbing sub­ contractor

1969-70 and 1970-71 3,766 1,504.56 600.00

Holmes, Graham Carlton Parap

Vending machine p r o p r ie to r 1964-65 to 1969-70 10,736 3,115.53 1,242.00

Kakakios, Stavros. .

Tennant Creek .

Baker . . 1966-67 to 1971-72 73,021 42,236.05 11,323.00

* S e e a l s o Schedule A2, page 49.

170

I N C O M E T A X

Understatement of T axable Income Schedule I—continued

Nam e and address

S e e N ote page 145

(1)

Occupation

(2)

Financial year or years

(3)

Under­ statement of taxable income

(4)

Increase in tax assessed

(5)

Additional tax charged

(6)

Individuals

NORT HERN TERRITORY

S $ $

Mattioli, Filippo . .

Rapid Creek Procopio, Antonio .

Alawa

Plumber . . 1969-70 and 1970-71 3,766 1,719.72 686.00

Pipe layer . . 1970-71 3,516 1,498.68 599.00

Quong, Edward . .

Darwin

Director . . 1965-66 to 1971-72 38,817 13,972.89 3,942.00

Quong, Richard . .

Darwin

Director . . 1966-67 to 1971-72 38,759 16,555.73 4,579.00

Shaw, Frank Hugh .

Darwin

Clerical assistant . 1966-67 to 1972-73 25,706 10,146.93 3,379.00

Tutty, John Augustine . (deceased) Darwin

Retired bus proprietor

1961-62 to 1969-70 31,359 15,627.15 7,807.00

Wycisk, W alter Helmuth Parap

Companies, etc.

Hospital orderly . 1966-67 to 1971-72 4,568 1,599.19 503.00

Nelli Contractors Pty Ltd Contractors . . 1966-67 6,619 2,482.13 760.00

Quong’s Bakery Pty Ltd Bakery and retail store proprietors 1966-67 to 1971-72 80,061 29,021.67 11,607.00

Venturin Investments Pty Ltd Builders . . 1966-67 to 1970-71 58,921 23,139.46 7,731.00

Total (13)* . 379,615 162,619.69 54,758.00

* S e e a l s o Schedule A2, page 49.

171

SALES TAX

IMPOSITION OF ADDITIONAL TAX Schedule II

(i) statutory additional tax, after any remission, exceeds $500 and is more than 25 per cent of the tax avoided; (ii) the case has reached finality; and (iii) he did not voluntarily make a full and true disclosure of the circumstances which led to his

being charged the additional tax.

A t a x p a y e r is li s t e d in th i s S c h e d u le o n l y w h e r e :

Name Business or occupation Period Increase in

tax payable Additional tax charged

(1) (2) (3) (4) (5)

Atlas Printing Press Pty Ltd Printers . . . . 1 February 1971 to 5,986.00

$

2,993.00

(Vic.) 30 November 1973

Australian Display and Decor Wholesalers of ornaments 1 July 1970 to 31 3,373.08 1,323.00

Imports Pty Ltd (Vic.) and household goods March 1973

Bond Worth Ltd (Vic.) . Carpet manufacturers . . 1 September 1970 to 5,480.50 1,757.00

31 July 1973

Campbell Ibbotson (Vic.) Pty Shop fitters. . . . 1 September 1971 to 2,561.45 853.00

Ltd 31 March 1974

Cargills Pty Ltd (W.A.) . Manufacturers of caravanettes 1 October 1970 to 30 23,647.43 6,600.00

and retailer/wholesaler camping equipment September 1973

Cibboto, Mario and Schulz, Manufacturers of coin- 1 March 1971 to 31 2,291.55 687.00

David John (trading as operated amusement December 1971

Mardavco Manufacturing Co.) (Vic.) machines Clancy, John Joseph (trading Printer . . . . 1 September 1966 to 32,531.40 9,444.00

as J. J. Clancy Printing Co., also trading as Clancy and Fisher Offset Printing Co.) (Vic.)

31 July 1973

Compak South Pacific Pty Ltd Wholesalers of telecommuni- 1 July 1971 to 30 4,310.17 2,000.00

(S.A.) cations equipment April 1974

Conveying Equipment Co. Engineers . . . . 1 September 1970 to 3,972.90 1,324.00

Pty Ltd (Vic.) 30 September 1973

Dansie, Dudley Gordon Pryor Manufacturer of 1 January 1970 to 31 1,702.95 550.00

and Dansie, Shirley Joan (trading as Photolab and Thelma Duryea Studio) (S.A.)

photographs December 1972

Eddy, John James (Vic.) . Boat builder . . . 1 August 1970 to 30 1,998.00 666.00

June 1973

Evans, Peter Rolf (N.S.W.) . Manufacturer and whole- 1 March 1970 to 31 2,814.65 1,800.00

saler of opal jewellery August 1973

Harding and Halden Pty Ltd Retailers/wholesalers of draw- 1 January 1971 to 31 2,293.72 700.00

(N.S.W.) ing office supplies December 1972

Harrison Distributors Pty Ltd Wholesalers of mowers 1 July 1969 to 30 4,582.37 3,054.00

(Tas.) and chain saws June 1972

Holdfast Trailers Pty Ltd (S.A.) Manufacturers of trailers and 1 February 1969 to 2,237.87 900.00 horsefloats 31 December 1971

Malouf, Richard George Bath, Manufacturers and whole- 2 June 1970 to 31 1,848.89 924.00

Peter Herbert and Westacott, salers of spectacle frames December 1973 Albert Victor (trading as Unisol Optical Company) (N.S.W.)

and sunglasses

Mavridis, Constandinos Photographer . . . 1 June 1970 to 30 2,088.89 669.00

(N.S.W.) April 1973

Minca, Victor and Minca, Importers of handbags . 1 December 1972 to | 2,224.20 741.00

Ester (trading as Victor

Minca and Associates) (Vic.)

30 September 1973

1

1 7 2

S A L E S T A X

Schedule II— c o n tin u e d

I mposition of A dditional T ax

Name

(1)

Business or occupation

(2)

Period

(3)

Increase in tax payable

(4)

Additional tax charged

(5)

Moyes, George William and Moyes, Elma Betty (trading as Sola Electronics) (Vic.)

Manufacturers of coin-

operated amusement mach­ ines

1 June 1972 to 30

April 1974

s

6,339.51

s

2,113.00

N athan, Anthony and

O ’Loughlin, William (trading as N athan and O'Loughlin) (N.S.W.)

Manufacturers and whole­ salers of jewellery 1 April 1970 to 31 March 1973

3,148.67 800.00

Process Printers (Warrnam- bool) Pty Ltd (Vic.) Printers . . . . 1 July 1970 to 30

November 1973

16,290.00 8,145.00

Reed, Royston Mark and

Reed, Jose Mary (trading as Jens Vet Products) (Vic.)

Wholesalers of pets supplies . 1 June 1970 to 31 March 1973 1,946.50 778.00

Reynolds, Frank Alexander and Reynolds, Dorothy

Marie (trading as Reynolds Industries (N.S.W.)

Manufacturers of canvas goods 1 September 1968 to 30 June 1973 15,969.06 6,000.00

Rosen, Rexley Darrell (trading as Continental Auto Com­ ponents) (Vic.) Saita, Nick and Saita Nutsy

(trading as Newstyle

Jewelley Co.) (N.S.W.)

Wholesalers of m otor vehicle parts 1 March 1972 to 31 August 1973

1,533.19 750.00

Wholesalers of jewellery . 1 August 1970 to 31 July 1973 3,360.24 1,650.00

Sephton, Douglas andSephton, Daphne Margrethe (trading as Vincent Studios) (N.S.W.)

Photographers . . . 1 March 1971 to 28

February 1974

1,232.00 650.00

Southern Billiards (Vic.) Pty Ltd Manufacturers of billiards tables

1 October 1970 to 31 May 1973 27,125.38 10,850.00

Stawell Timber Industries Pty Ltd (Vic.) Sawmillers and billiards

tables manufacturers 1 April 1971 to 30

November 1973

10,372.00 3,457.00

Stoddart Bros Marine Pty Ltd (N.S.W.) Wholesalers of fibre-glass yachts

1 February 1971 to 31 May 1973 3,674.44 1.000.00

Toyo Swift Pty Ltd (Vic.) . Wholesalers of tyres . . 1 January 1972 to 28

February 1974

12,404.27 4,134.00

Von Linden, Carl (trading as Fotocon) (Qld) Manufacturer of photographs 1 August 1968 to 30 September 1973

6,030.29 2,412.00

Total (31) . . ............................................................................. . . . . 215,371.57 79,724.00

PAY-ROLL TAX

I M P O S I T I O N O F A D D I T I O N A L T A X

Schedule III

A t a x p a y e r is lis te d in t h is S c h e d u le o n ly w h e r e :

(i) s t a t u t o r y a d d it i o n a l ta x , a f te r a n y r e m is s io n , e x c e e d s $ 5 0 0 a n d is m o r e t h a n 25 p e r c e n t o f th e

t a x a v o id e d ;

(ii) t h e c a s e h a s r e a c h e d f in a lity ; a n d

(in ) h e d id n o t v o l u n ta r i ly m a k e a fu ll a n d t r u e d i s c lo s u r e o f th e c ir c u m s ta n c e s w h ic h led t o h is

b e in g c h a r g e d t h e a d d it i o n a l ta x .

F o r th e p e r i o d 1 J u ly 1973 to 30 J u n e 1974 th e r e w e re n o s u c h c a s e s t o r e p o r t .

173

VARIATIONS TO AMOUNTS OF ADDITIONAL TAX PUBLISHED IN PREVIOUS REPORTS Schedule IV

T h e f o llo w in g s c h e d u le s h o w s p a r t i c u l a r s o f v a r ia ti o n s in a d d it i o n a l t a x p u b l is h e d in b r e a c h e s a n d

e v a s io n s s c h e d u le s in p r e v io u s r e p o r t s . T h e v a r ia ti o n s w e re m a d e d u r i n g th e p e r i o d 1 J u l y 1973 t o

3 0 J u n e 1974.

Name Variation

Carthy, Eric (Vic.) . . . Additional tax of $22,815.00 shown on page 118 of the Fifty-first Report has

been reduced to $9,834.00.

Gladwin-Grove, Cecil Francis (W.A.) Additional tax of $7,174.00 shown on page 132 of the Fifty-first Report has been reduced to $5,664.00. Glover, John William (Vic.) . . Additional tax of $34,933.00 shown on page 131 of the Forty-eighth Report has been reduced to $23,673.11. Hellingman, Lambertus Johannes

(Vic.) Howson, Frank William (N.S.W.) .

Additional tax of $2,605.00 shown on page 121 of the Fifty-first Report has been reduced to $136.52. Additional tax of $1,867.00 shown on page 108 of the Fiftieth Report has been reduced to $1,219.00.

Wilmoth, Robin Sutherland (Vic.) . Additional tax of $5,729.00 shown on page 142 of the Fifty-second Report has been reduced to $5,545.00.

1 7 4

INDEX

Additional tax . . . . . .

Amendments to the Acts— Australian Capital Territory stamp duty and tax Canning-fruit charge . . . . .

Estate duty . . . . . . .

Gift duty . . . . . . .

Income tax . . . . . . .

Pay-roll tax . . . . . . .

Sales tax . . . . . . .

Stevedoring industry charge . . . .

Tobacco charge . . . . . .

Wool tax . . . . . . .

Amounts debited, credited and outstanding . Appeals to the Courts . . . . .

Appendixes . . . . . . .

Assessments— Estate duty . . . . . . .

Gift duty . . . . . . .

Income tax— Amendments to . . . . .

Issue of . . . . . . .

Notices . . . . . . .

Objections against . . . . .

Assistance to taxpayers . . . . .

Australian Capital Territory stamp duty and tax— General . . . . . . .

Revenue . . . . . . .

Automatic data processing . . . .

Boards— Boards of Review— Functions and personnel . . . .

References to . . . . . .

Relief Board—Relief granted . . .

Tax Agents’ Boards— Cancellations . . . . . .

Registrations . . . . . .

Valuation Boards— Functions and personnel . . . .

Breaches and evasions of the Acts . . .

Canning-fruit charge . . . . .

Estate duty . . . . . . .

Gift duty . . . . . . .

Income tax . . . . . . 48,

Pay-roll tax . . . . . .

Sales tax . . . . . . 52,

Stevedoring industry charge . . . .

Tobacco charge . . . . . .

Wool tax . . . . . . .

Budget estimates . . . . . .

Canning-fruit charge— Amendments to the Acts . .

Collections . . . . .

Cost of collection . . .

General . . . . .

Rate of charge . . . .

Revenue . . . . .

Statistics . . . . .

Work volume . . . .

Cash, monthly collections o f income tax

P a g e

Collections— All taxes . . . . . . . 19

Compared with Budget estimates . . . 20

Companies— Rates of tax . . . . . . 74

Statistics . . . . . . . 98

Computer assessing . . . . . . 100

Concessional deductions . . . . . 96

Cost of collection— All taxes . . . . . . 69

Income tax . . . . . . . 6 9

Decentralization . . . . . , 1 0

Deductions, tax instalment . . . . 19,63

Double taxation . . . . . . 77

Drought bonds .................................................... 75

Employment statistics—Taxation Office staff . 68 Estate duty— Amendments to the Acts . . . . 116

Assessments made . . . . . 65

Assessments issued— Details of financial years 1964-65 to 1974-75 118 Collections . . . . . . . 1 9

Cost o f collection . . . . . 69

Estimate compared with actual collections . 20 General . . . . . . . 114

Legal proceedings . . . . . 55

Rates o f duty . . . . . . 1 1 5

References to Valuation Boards . . . 67

Refunds of revenue . . . . . 23

Revenue . . . . . . . 1 1 7

Statistics . . . . . . . 1 1 7

Statutory exemption . . . . . 1 1 5

Tax outstanding . . . . . . 24

Tax written off . . . . . . 27

Work volume . . . . . . 65

Estimates of revenue—All taxes— Comparison with collections . . . . 20

Exchange control . . . . . . 143

Export incentive grants . . . . 65, 126

Export incentive rebates . . . . 65,126

Gift duty— Amendments to the Acts . . . . 1 2 0

Assessments made . . . . . 65

Assessments issued— By grade of dutiable value of gift . . 122

Details of—for financial years 1964-65 to 1974-75 ....................................................121

Collections . . . . . . . 19

Cost of collection . . . . . 69

Estimate compared with actual collections . 20 General . . · · · ■ . 1 1 9

Legal proceedings Rates of duty .

Refunds of revenue Revenue . .

Statistics . ..

Tax outstanding . Tax written off .

Work volume .

Page

48

128 142 116 120

78 124 112 136 140 131

24 36 59

118 121

61 60 60 63 28

127 19 5

30 31 33

35 34

38 48 56

55 55 145 53 172

56 56 56 20

142 19 69 141 141 142 142

66 21

1 75

I N D E X —continued

Income tax— Amendments to the Acts . . .

Assessments— Issue of . . . . . .

Breaches and evasions of the Acts . . Budget estimates . . . . .

C ollectio n s....................................................

Cost of collection . . . .

Estimate compared with actual collections General . . . . . .

Instalment deductions . . . .

Investigations . . . . .

Legal proceedings . . . .

Lodgment of returns . . . .

Partnerships and trusts . . . .

Provisional tax—Self-assessment of .

P a g e

. 78

. 60

48,145 . 20

. 19

. 69

. 20

. 70

. 63

. 64

. 48

. 60

. 97

. 22

Rates of tax—■ Companies . . . 74

Further tax . . . 74

Individuals . . . 73

Superannuation funds . 75

Trustees . . . . 75

Withholding tax . . 77

References to Boards of Review 31

Refunds of revenue . . 23

Relief granted . . . 34

Returns received . . . 60

Revenue . . . . 95

Statistics— Companies . . . 98

Individuals . . . 95

Partnerships and trusts . 97

Tax instalment deductions . 63

Tax outstanding . . . 24

Tax written off . . . 27

Variation o f provisional tax . 22

W ork volume . . . 60

Individual taxpayers— Rates of tax . . . 73

Statistics . . . . 95

Information—Proceedings to obtain 48

Investigations—Income tax . 64

Inward mail . . . . 66

Irrecoverable tax written off—All taxes 27

Issue of assessments—Income tax 60

Legal proceedings— S e e ‘Breaches and evasions of the Acts.’ Legislation— Australian Capital Territory stamp duty and tax 127

Canning-fruit charge . . . . . 141

Estate duty . . . . . . . 114

Gift duty . . . . . . . 119

Income tax . . . . . . . 70

Pay-roll tax . . . . . . . 123

Sales tax . . . . . . . 109

Stevedoring industry charge . . . . 135

Tobacco charge . . . . . . 139

Wool t a x ..............................................................129

Lodgment of returns— Income tax . . . . . . . 60

Other taxes . . . . . . . 64

Management . . . . . . . 5,60

Statistics . . . . . . . 60

P a g e

Monthly cash collections—Income tax . . 21

Objections . . . . . . . 63

Office a c c o m m o d a ti o n ..........................................10

Organization . . . . . . . 4

Partnerships and trusts—Statistics . . . 97

Pay-roll tax— Amendments to the Acts . . . . 124

Breaches and evasions o f the Acts . . . 53

Collections . . . . . . . 1 9

Cost o f collection...........................................................69

Estimate compared with actual collections . 20 General . . . . . . . 123

Rate of tax . . . . . . . 124

Rebates . . . . . . . 64

References to Boards of Review . . . 30

Refunds o f r e v e n u e ................................................ 23

Relief granted . . . . . . 34

Revenue . . . . . . . 125

Statistics . . . . . . . 125

Tax outstanding . . . . . . 24

Tax written off . . . . . . 2 7

Work volume . . . . . . 64

Period covered by report . . . . . iii

Personnel . . . . . . . 1 6

Proceedings to obtain returns, etc. . . . 63

Proceedings to recover tax . . . . 66

Property valuation . . . . . . 66

Provisional tax— S e lf-a s se s sm e n t...........................................................22

Variation . . . . . . . 22

Publications . . . . . . . 28

Rates of tax— Australian Capital Territory stamp duty and tax 127 Canning-fruit c h a r g e .............................................. 141

Estate duty . . . . . . . 115

Gift duty . . . . . . . 1 1 9

Income tax— Companies . . . . . . 74

Further tax . . . . . . 74

Individuals . . . . . . 73

Superannuation funds . . . . 75

Trustees . . . . . . . 75

Withholding tax . . . . . 77

Pay-roll tax . . . . . · . 1 2 4

Sales t a x ................................................................... H I

Stevedoring industry charge . . . . 135

Tobacco charge . . . . . . 1 3 9

Wool tax . . . . . . . 1 2 9

Rebates— Estate duty . . . . . . . 1 1 6

Income tax . . . . . . . 7 5

Pay-roll t a x .................................................................... 64

References to— Board of Relief . . . . . . 33

Boards of Review. . . . · . 3 1

Valuation Boa r ds . . . . . . 32

Refunds of revenue—All taxes . . . . 23

Regional offices . . . . . . 8

Relief gr ant ed. . . . . . . 34

Returns, income tax— Number lodged 1963-64 to 1974-75 . . 60

Proceedings to obtain lodgment . . . 63

176

IN D E X —continued

Revenue . . . . .

P a g e

1 8

Australian Capital Territory stamp duty and tax 19 Canning-fruit charge . . . 142

Collections by Taxation Office . 19

Estate d u t y .......................................... 117

Gift duty . . . . . 121

Income tax . . . . . 95

Pay-roll t a x ......................................... 125

Refunds o f . . . . . 23

Sales tax . . . . . 113

Stevedoring industry charge . . 137

Tobacco charge . . . . 140

Wool tax . . . . . 131

Sales tax— Amendments to the Acts . . 112

Breaches and evasions o f the Acts . 52

Collections . . . . . 19

Cost of collection. . . . 69

Estimate compared with actual collections 20 G e n e r a l .......................................... 109

Rates of tax . . . . 111

Refunds o f revenue . . 23

Revenue . . . . . 113

Sale values of taxable, goods included in tax returns . . . . .

sales

113

Statistics . . . . . 113

Tax outstanding . . . . 24

Tax written off" . . . . 27

W ork volume . . . . 64

St aff—

Changes in executive personnel . 16

Num ber employed in Taxation Office 68

Employed in various duties in Taxation Office. 68

Statistics— '

Assessments issued . . . 60

Board of Relief . . . . 33

Boards of Review . . . 31

Canning-fruit charge . . . 142

Estate duty . . . . . 117

Gift duty . . . . . 121

Income tax . . . . . 95

Management . . . . 60

Pay-roll t a x . . . . . 125

Returns lodged . . . . 60

Revenue . . . . . 19

Sales tax . . . . . 113

Stevedoring industry charge . . 137

Tax agents . . . . . 34

Tobacco charge . . . . 140

Wool tax . . . . . 131

Statutory Taxation Boards— S e e "Boards’ and ‘Statistics’.

Stevedoring industry charge— Amendments to the Acts Collections . . .

Cost of collection .

General . . .

Rate of charge . .

Revenue . . .

Statistics . . .

Tax outstanding . .

Work volume . .

Summary of activities . Superannuation funds .

Taxation Committees . Tax agents— Boards . . .

Registration of . .

Registrations cancelled . Tax clearance certificates Tax collected—All taxes . Tax instalment deductions Tax outstanding—All taxes Tax—Proceedings to recover

Tax written off—All taxes Taxes administered . .

Tobacco charge— Amendments to the Acts Collections . . .

Cost of collection .

General . . .

Rates of charge . .

Revenue . . .

Statistics . . ·

Tax outstanding . .

W ork volume . .

Trustees . . ·

Valuation Boards . .

Valuation of property . Volume of work . .

Withholding tax . . ■ · ;

Wool contributory charge—S e e ‘Wool Tax’. Wool tax— Amendments to the Acts . . ·

Collections . . . . . .

Cost of collection. . . . .

General . . . . . .

Rates o f tax . · · - -

Revenue . . . . . .

Statistics . . . . . .

Tax outstanding . . . . .

Value of wool included in returns . ·

Work volume . . . . .

Work volume . . . . . .

P a g e

136 19 69 135 135 137 137

24 66 2 75

57

34 34 35 143

19 63 24

66 27 1

140 19 69 139 139 140 140

24 66 75

32 66 60

77

131 19 69 129 129 131 131

24 132 66 60

177

R 74/2751