Commonwealth Numbered Regulations - Explanatory Statements

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Income Tax Assessment Act 1936

Income Tax Regulations (Amendment)

These regulations amend the Income Tax Regulations which deal with the signing of documents by group employers and variations in the notional tax for companies. The regulations also insert a new regulation [regulation 147A] which is necessary to specify who will sign documents on behalf of a government body in situations where the government body is liable to pay an unremitted amount to the Commissioner of Taxation.

Signatures by or for group employers

Regulation 120 currently prescribes the person to sign documents by or for group employers. The group employers mentioned in the regulation include:

       the Crown in the right of the Commonwealth or of a State [paragraph 120(1)(d)]; and

       a municipal corporation, local governing body or public authority [paragraph 120(1)(e)].

Both employers covered in paragraphs 120(1)(d) and (e) also fall within the definition of a government body in subsection 221A(1) of the Act

Regulation 2 replaces existing paragraphs 120(1)(d) and (e) and introduces the term government body [subregulation 2.3], as that tern is defined in subsection 221A(1), into the regulations. The replacement paragraph combines the operation of paragraphs 120(1)(d) and (e). This achieved by making reference to where a group employer is a government body rather than the two references as at present.

The amendment does not affect the signatory who will continue to be the officer appointed or authorised for the purpose of signing documents on behalf of the government body.

Variation of amount of notional tax of companies

Where the rate of income tax payable by companies for a financial year differs from the rate declared by the Parliament for the next succeeding year, subsection 221AZB(4) of the Act authorises the variation of the amount of notional tax.

Regulation 3 is a technical amendment to correct an incorrect reference, to notional tax in subsection 221AD(2), in subregulation 124(1) and (2). Section 221AD is contained in Division 1A of Part VI of the Act which deals with collection of tax for years of income ending before 30 June 1990. The contact notional tax reference is in subsection 221AZB(4) in Division 1B of Part VI of the Act which deals with collection of tax for the 1993-94 year of income.

Affidavits and statutory declarations of government bodies

The Insolvency (Tax Priorities) Legislation Amendment Act 1993, which received Royal Assent on 16 June 1993, amended the Act to remove the Tax Commissioner's priority in relation to debts for unremitted amounts in cases of insolvency. The amending legislation also established a new recovery regime for those amounts. The new regime allows the Commissioner to commence recovery proceedings on the basis of an estimate of the unremitted amount. The new regime also requires payers to make statutory declarations and to file affidavits [subsections 222AGF(7), 222AHE(5) and 222AIH(4)]. Paragraph:

       222AGF(7)(c) deals with a statutory declaration to reduce or revoke an estimate; and

        222AHE(5)(c) deals with an affidavit for a defence in recovery proceedings; and

       222AIH(4)(c) deals with a statutory declaration to reject a proof of debt lodged by the Commissioner, and provides that where the person is a government body, the affidavit (or statutory declaration) is to be sworn (or made) by a prescribed person.

Regulation 4 inserts new Division 9 into Part 7 of the Income Tax Regulations to prescribe the person for the purposes of subsections 222AGF(7), 222AHE(5) and 222AIH(4). Subregulation 4.1 inserts new regulation 147A to prescribe the person, in the case of a government body, to be the Paying Officer of the government body.

Subregulation 4.1 further defines the term "Paying Officer" to mean an officer of the government body who, by law or by reason of holding any office in the government body, disburses, or is responsible for disbursing, moneys of the government body.

The regulations do not affect the rights of any person (other than the Commonwealth) in a manner prejudicial to that person, nor will they impose any liability on such person.

Accordingly, the regulations amend the Income Tax Regulations as mentioned above.

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