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Index

                                                                             


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Subject-matter   Paragraph note  
Abnormal income, averaging  14.66 See also Averaging of income 
Accessions taxes  3.38 See also Estate and gift duty 
Accident funds, tax treatment of premiums and benefits  7.96 
Accounting, re fluctuating incomes  14.69 
Accounting periods 
—annual accounting  7.23–7.26 
—inflation  6.66–6.67 
—trusts  15.9 
Adjustment sheets  22.65–22.67 
Administration, complexities 
—concessional deductions  12.25 
—cost of travel to and from work  7.64 
—fringe benefits  9.8 
—imputed rent of the owner-occupied home  7.46, 7.48 
—income earning activities in the home  7.76, 7.77 
—surcharge on property income  14.13 
Administration, savings in  9.70 
Administration, income tax  22.1–22.140, 28.24 
—adjustment sheets  22.65–22.67 
—advance exposure of proposed legislation  22.62 
—amendment of assessments  22.14–22.15 
—appeals  22.1, 22.35–22.39 
—Boards of Review  22.11, 22.20–22.34, 28.24 
—certainty of liability for tax  22.5, 22.7, 22.10 
—company tax  22.129–22.138 
—costs of appeals, reviews and objections  22.40–22.42 
—hardship relief  22.55–22.61 
—High Court  22.28, 22.35 
—independent standing committee, proposal for  22.63 
—information supplied by Commissioner  22.68–22.73, 23.2 
—international comparisons  22.5, 22.17 
—losses, assessment procedures  22.74–22.78 
—non-taxable assessments  22.74–22.78 
—objections to assessments  22.16–22.21 
—payment of tax  22.89–22.139 
—prosecution procedures and penalties  22.45–22.54 
—provisional tax  22.109–22.128 



  ― 560 ―
—recommendations 
22.12, 22.15, 22.17, 22.18, 22.19, 22.21, 22.24–22.34, 22.38–22.39, 22.42, 22.44, 22.46, 22.47, 22.48, 22.53, 22.54, 22.58, 22.59, 22.62, 22.63, 22.67, 22.69, 22.73, 22.78, 22.81, 22.85, 22.86, 22.88, 22.94, 22.97–22.98, 22.101, 22.102, 22.108, 22.116, 22.123, 22.130, 22.140. 
—registered tax agent  22.83–22.88 
—statistics  22.16 
—Supreme Court  22.6, 22.21, 22.35 
—taxpayer compliance  22.79–22.82 
—withholding tax  22.139–22.140 
Administration of deceased estate  16.89 See also Estate and gift duty. 
Adoption expenses as concessional deductions  12.17 
Advance payment of income tax, interest on  22.43–22.44 
Agents, registered  See Registered tax agents 
Agricultural associations  20.22, 20.27 
Alimony  7.22, 10.30–10.32 
Amortisation  See Depreciation 
Annual accounting  3.13–3.15, 7.23–7.26, 8.4, 8.6–8.8, 8.27–8.47 
Annuities  15.13, 21.48, 21.55, 21.136 
Anti-bunching  See Averaging of income 
Appeals  22.1, 22.35–22.39 
—against Commissioner's discretionary powers  22.38 
—costs of  22.40–22.42 
—powers and jurisdiction of Courts  22.35 
—procedures  22.38–22.39 
—recommendations  22.38–22.39 
Assessments, non-taxable  22.74–22.78 
Australian tax systems 
—complexity  2.5 
—criteria for tax systems  3.1–3.49 
—distribution of taxes  4.6–4.16, 5.10 
—goals of tax reform  4.32–4.38, 5.1–5.16, 28.1–28.2, 28.5, 28.10, 28.11, 28.30 
—historical perspective  2.1–2.5, 28.6 
—international comparison  1.8, 2.6–2.11 
—need for review  1.1–1.10 
Austria, wealth tax  26.3, 26.4 
Authors and inventors, averaging of income  14.66, 14.83 
Averaging, income tax: temporal  3.13. 7.24 
Averaging of income  14.60–14.85 
—anti-bunching  14.64–14.66, 14.83–14.85 
—authors and inventors  14.66, 14.83 
—block averaging  14.72 
—capital gains tax  23.35 
—cumulative averaging method  14.71 



  ― 561 ―
—drought bonds 
14.62, 14.64 
—existing law  14.62–14.66, 14.70 
—income equalisation schemes  14.69, 14.80–14.83 
—inflation  14.69 
—marginal adjustment scheme  14.73 
—primary producers  14.62–14.63, 14.65, 14.68–14.69, 14.77, 14.79, 14.85, 18.19–18.21 
—recommendations  14.69, 14.77–14.79, 14.82–14.84 
—United States system  14.74, 14.76–14.77 
Aviation associations  20.22 
Avoidance  22.7, 22.100, 28.16 
—estate and gift duty  24.2, 24.10 
—income-splitting  11.1, 11.6, 11.42–11.44 p. 157 
—shape of personal income tax rate scale  14.31–14.32, 14.37 
—superannuation  21.49–21.51 
—unit of taxation  10.26 
—wholesale sales tax  27.A25–27.A28 
Beneficiaries  See Trusts 
Blind persons, medical expenses  12.49–12.51 
Block averaging  See Averaging of income 
Board of Relief  See Hardship relief 
Boards of Review  22.11, 22.20–22.34, 28.24 
—appeals from  22.35–22.39 
—constitution of  22.34 
—costs of appearance before  22.30, 22.40–22.42 
—discretion of  22.21, 22.25, 22.30 
—evidence before  22.32, 22.33 
—grounds for appeal to  22.20 
—immunity of members and representatives  22.28 
—powers and procedures  22.22–22.34 
—‘pre-trial’ procedure  22.27 
—quorum  22.29 
—recommendations  22.21, 22.24–22.34 
Borrowing, government  1.8, 3.3 
Business income, and inflation  6.66–6.67, 6.69, 6.70 
Business and professional income  8.1–8.212, 19.1, 28.14 
—accounting principles  8.4, 8.6–8.8, 8.27–8.29, 8.45–8.47, 8.88, 8.178–8.179, 8.182 
—accruals tax accounting  8.9, 8.27–8.47 
—annual accounting  8.4, 8.6–8.8, 8.27–8.47, 8.155 
—anti-pollution expenses  8.14, 8.207–8.208 
—building depreciation  8.11, 8.71, 8.82–8.109, 28.14 
—capital raising costs  8.71, 8.110–8.112 
—cash or accruals basis  8.9, 8.16–8.26 
—concept of profits  8.1–8.2, 8.4, 8.29, 8.45–8.47, 28.14 
—deductibility of expenses  8.4 
—depreciation  8.11, 8.33, 8.71–8.112, 8.185, 8.186, 8.196 
—doubtful debts  8.10, 8.48, 8.50, 8.69–8.70 
—holiday pay  8.10, 8.48 
—inflation, effects of  8.5, 8.13, 8.175–8.193 



  ― 562 ―
—know-how, cost of acquiring 
8.71, 8.110–8.112 
—and held for resale, holding charges  8.37 
—leasehold improvement  8.71, 8.105–8.109 
—lease transactions  8.195–8.197 
—long-service leave  8.10, 8.33, 8.48, 8.50, 28.14 
—loss carry forward  8.113 
—loss from impending lawsuit  8.68 
—losses, recoupment of  8.12, 8.155–8.174 
—matching of income and expense  8.9, 8.48, 8.57, 8.71, 8.113 
—obsolescence, depreciation  8.76–8.78, 8.81 
—plant and equipment depreciation  8.75–8.71 
—professional libraries  8.202–8.204 
—professional work in progress  8.34, 8.38–8.44 
—provisions and accrued expenses  8.10, 8.48–8.70 
—recommendations  8.19–8.22, 8.24, 8.25, 8.37, 8.41, 8.47, 8.55, 8.57, 8.63, 8.67, 8.68, 8.70, 8.81, 8.93, 8.100, 8.109, 8.117, 8.118, 8.121, 8.133, 8.135, 8.138, 8.139, 8.144–8.145, 8.146, 8.151, 8.163, 8.168, 8.171, 8.174, 8.200, 8.204 
—repairs expenditure  8.14, 8.198–8.201 
—revenue implications  8.43, 8.55, 8.104, 8.160 
—sick leave  8.10 
—statistics  8.52, 8.55, 8.58, 8.62 
—trading stock  8.12, 8.113–8.154, 8.187–8.188 
—transitional provisions  8.24–8.26, 8.44, 8.55, 8.63–8.65, 8.104 
—travelling and entertainment expenses  8.14, 8.205–8.206 
—warranties, product  8.10, 8.48, 8.50, 8.66–8.67 
Canada 
—averaging of income  14.72, 14.75–14.76, 14.79, 14.81 
—capital gains tax  23.20, 23.25, 23.33, 23.41 
—charities  25.8, 25.14 
—company tax  16.28, 16.52, 16.53, 16.55, 16.56, 16.67, 16.72, 16.74, 16.81, 16.82, 16.97, 16.100–16.101, 16.114, 16.127, 16.151 
—hobby farming  18.33, 18.34 
—income tax, international aspects  17.51, 17.96 
—inflation  6.18 
—information from Commissioner  22.69, 22.72, 22.73 
—investment income  9.80 
—life insurance  21.151, 21.156, 21.157 
—mining industry  19.A18–19.A21, 19.A62–19.A74, 19.A99–19.A101 
—personal allowance universal  14.19 
—personal income tax rate structure  14.3 
—rate scale, adjustment of  14.54 
—standard deduction  9.71–9.73 
—superannuation  21.53, 21.55 
—tax reform  2.11 
—unit of taxation  10.2, 10.12 



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—wealth tax 
26.3 
Canadian Royal Commission on the Status of Women (1967–1970)  p.140 
Capital gains tax  23.1–23.82, 28.9, 28.25, 28.30 
—and wealth tax  26.10, 26.11, 26.17, 26.25 
—at death  23.52–23.54, 24.54 
—arguments for and against  3.36, 23.9–23.10 
—bunching and spreading  23.14, 23.26, 23.35–23.38, 23.82 
—capital losses  23.71 
—chattels  23.63–23.64 
—companies  23.26, 23.40–23.44, 23.69 
—company tax  16.10, 16.20, 16.28, 16.43 
—deferral of introduction  23.4, 23.5, 23.82, p.435 
—depreciable assets  23.67 
—development gains  2.11, 23.78–23.82, 28.25 
—exemption provisions  23.55–23.66 
—gifts  23.51 
—indexation  23.22, 23.82 
—inflation  3.16, 6.68, 6.69, 6.70, 23.4, 23.22–23.24, 23.29, 23.30, 23.82, p.435 
—information bulletins, need for  23.2–23.3, 23.5, 23.20 
—intangible assets  23.68 
—life assurance policies  23.65 
—lock-in effect  23.21 
—on death  23.55 
—overseas systems  2.10–2.11, 23.8, 23.20, 23.25, 23.27, 23.33, 23.41 
—proportion of gain to be taxed  23.28–23.29, p.435, p.438 
—rate of tax  23.25–23.29, 23.82, p.438 
—realisation  23.14, 23.21 
—recommendations  23.5, 23.21, 23.35, 23.40, 23.51, 23.52, 23.53, 23.64, 23.65, 23.66, 23.67, 23.68, 23.69, 23.74, 23.75, 23.76, 23.82, p.435, p.436, p.438 
—recent amendments  23.2–23.3, 23.5–23.6, 23.29, 23.54, 23.56, 23.60, 23.62, 23.70, 23.72, 23.77 
—reservations by Committee members  pp.435–437, p.438 
—residence, principal  23.57–23.59, 23.82 
—retirement, exemption on  23.55 
—roll-over  23.58, 23.69 
—sections 26(a), 26AAA, 52  23.74–23.77, pp.436–437 
—spreading of gains  23.35–23.38 
—superannuation rights  23.66 
—systems, alternative  23.21–23.30 
—transitional provisions  23.31–23.34 
—trusts  23.26, 23.45–23.50 
—‘valuation day’  23.31–23.34 
—valuation, method of  23.34 
Carter Report 
—business and professional income  8.129 
—charities  25.8, 25.14 



  ― 564 ―
—company tax 
16.44, 16.81 
—death tax  24.7 
—integration of personal and company income tax  14.27 
—maximum marginal rate of personal income tax  14.32 
—primary production losses  18.34 
—unit of taxation  10.12 
—wealth tax  26.3 
Cash or accruals basis, change of method  8.9, 8.16–8.26 
Charities  20.21, 25.1–25.39, 28.27 
—classes  25.4–25.5 
—deductibility of gifts to  12.30, 25.3–25.11, 25.22–25.26 
—definition  25.1 
—encouragement of  25.6, 25.20–25.37 
—income, treatment of  25.12–25.16, 25.27–25.37 
—in competition with private enterprise  25.12, 25.27, 25.29–25.31, 25.34, 25.37 
—in relation to estate and gift duty  25.17–25.19, 25.24 
—present law  25.3, 25.12, 25.17, 25.18, 25.38, Appendices 25A, 25B, 25C 
—recommendations  25.26, 25.37, 25.39 
—role of  25.20 
—subsidisation of  25.21–25.37 
—uniformity of tax treatment  25.38–25.39, Appendix 25C 
Chemist expenses, concessional deduction for  12.43 
Child, concessional deduction for  12.13–12.16 
Child endowment  4.11, 5.3, 7.22, 12.13, 12.14, 12.15, 12.16 
—aggregation with parental income  12.15 See also Social service grants 
Child-minding expenses  7.18, 7.66–7.75 
—deduction for housekeeper  7.68 
—in relation to education expenses  7.71, 7.72 
—practical considerations  7.70, 7.73 
—rebates for  7.73 
—recommendation  7.69, 7.70 
Children,  See Child endowment; Child minding expenses; concessional deductions; Dependants; Income-splitting; Unit of taxation. 
Chiropodists  12.46 
Colombia, wealth tax  26.3 
Commissioner's discretionary power  11.6, 11.27, 11.35, 11.44, 11.46, 21.104, 21.106, 22.2–22.13, 28.24 
—and tax avoidance  22.7 
—appeals from exercise of  22.13, 22.38 
—expenses of income earning activities in the home  7.80 
—guidelines, need for  22.9–22.10 
—limitations in  22.6, 22.10, 22.18, 22.19, 22.20 
Commission of Inquiry into Poverty  12.14 
Commissioned studies for Committee  xviii 



  ― 565 ―
Committee of inquiry 
—advertisement inviting submissions  xviii 
—appointment of  xvii 
—composition  xvii–xviii 
—staff  xix 
—terms of reference  xvii, xx, 1.8, 1.14, 3.1–3.6, 19.5, 28.1, 28.4, 28.5, 28.6 
Committee of Inquiry into Compensation and Rehabilitation in Australia  7.36 
Companies 
—capital gains tax  23.26, 23.40–23.44, 23.69 
—estate and gift duty  16.3 
—growing significance of  16.1–16.3 
—trusts and partnerships  15.2, 15.29 See also Company tax; Distributions; Dividends; Private companies 
Company groups  16.22–16.35 
—consolidated returns  16.125, 16.127, 16.129–16.130 
—holding and subsidiary companies  16.132–16.133 
—loss transfer  16.126, 16.128 
—proposed basis of assessment  16.131–16.133 
—trading and consortium companies  16.134–16.135 
Company income  See Business and professional income 
Company tax  1.3, 3.21, A3.33–3.35, 16.1–16.152 
—and capital gains tax  16.10. 16.20, 16.28, 16.43 
—and inflation  6.22 
—and personal income tax  14.26–14.27, 16.8, 16.10, 16.17, 16.34, 16.40. 16.41 
—and VAT  27.45 
—assessment of company groups  16.122–16.135 
—bonus issues of shares  16.25 
—continuity of ownership  16.137–16.144 
—convertible notes, treatment of  16.147–16.149 
—criticisms of present system  16.16–16.20 
—distributions  See Distributions 
—dividends  16.12, 16.13, 16.14 
—efficiency, economic  3.35, 16.20 
—election to be treated as partnership  16.24, 16.79–16.96 
—equity  16.6, 16.17, 16.19, 16.23, 16.29, 16.39, 16.46–16.47, 16.50, 16.69 
—high gearing, treatment of  16.150–16.152 
—imputation system, proposal for  16.52–16.74, 28.18 
—imputation system, discussion of  16.32–16.51, 16.117, 16.145, 16.146 
—incidence  3.33, 16.5–16.8, 16.32 
—international implications  16.10, 16.14, 16.26, 16.30, 16.31, 16.35, 16.46, 16.50, 16.64–16.74, 16.151 
—justification for  16.5–16.11 
—loan and share capital  16.145–16.152 
—losses, carry forward of  16.136–16.144 



  ― 566 ―
—neutrality 
16.20, 16.23, 16.29, 16.37, 16.39, 16.45, 16.49, 16.50, 16.100, 16.145, 16.150 
—present system  2.10, 16.2–16.15, 16.102–16.152 
—private company  16.13, 16.15, 16.62, 16.102, 16.107, 16.130 
—public company  16.13 
—rate of tax  16.13, 16.14, 16.17–16.19, 16.31, 16.40, 16.41, 16.43, 16.46 
—rebate  16.14, 16.107 
—recommendation  16.51, 16.56, 16.80, 16.100, 16.120, 16.131, 16.133, 16.135, 16.143, 16.148 
—revenue implications  16.57–16.58, 16.60, 16.129, 16.132 
—separate (‘classical’) system  16.12, 16.16, 16.17, 16.20, 16.117 
—shifting of  16.7, 16.9, 16.75–16.78 
—small enterprises  16.97–16.101 
—split rate system  16.32–16.39 
—subvention payments  16.133, 16.144 
—tax shelters  7.32, 16.31, 16.32, 16.39, 16.47, 16.62, 16.63, 16.109, 16.110 
—unacceptable alternatives  16.21–16.31 
—undistributed profits tax  16.15, 16.62, 16.112, 16.124, 16.130, 16.148 See also Company groups; Income tax; Tax mix 
Company tax, collection of  22.129–22.138 
—and imputation system  22.136, 22.138 
—present legislation  22.129–22.130, 22.133 
Compensation 
—for injury to reputation  7.41, 23.17 
—for loss of office  7.5–7.9, 21.15 
—for physical injury  1.10, 7.5, 7.10, 7.34–7.40, 23.17 
—periodical payments  7.36 
—recommendations  7.40, 7.41 
Complexity 
—capital gains tax  3.36, 23.10 
—concessional deduction  12.17 
—estate and gift duty  3.38 
—income tax, international aspects  17.37–17.38, 17.49, 17.52 
—personal income tax  3.31, 14.2, 14.3–14.6 
—personal income tax rate structure  14.2, 14.3–14.6 
—present system  2.5 
—surcharge on property income  14.10, 14.12–14.13 
—VAT  27.50 
—wealth tax  3.39 See also Simplicity 
Concessional allowances  See Concessional deductions; Concessional rebates 
Concessional deductions  12.1–12.62, 28.16 
—adoption expenses  12.17 
—and inflation  6.52–6.59 



  ― 567 ―
—and unit of taxation 
10.25 
—anomalies  12.7, 12.8 
—charitable donations  12.30, 25.3–25.11, 25.22–25.26 
—child-minding expenses  See Concessional rebates 
—children  6.53, 6.54, 6.55, 7.21, 12.13–12.16, 28.16 
—criticisms of  12.3, 12.4, 12.5, 12.6, 12.7, 12.12 
—dental expenses  12.17 
—dependent adults  12.11 
—dependants  12.3–12.16 
—duplication of other benefits  12.22, 12.23, 12.25 
—education expenses  7.21, 12.17, 12.30–12.34 
—effect on demand  12.21 
—efficiency and equity  12.19, 12.20, 12.26, 12.27, 12.29 
—funeral expenses  12.17, 12.52 
—gifts  12.17 
—housekeeper  7.67, 12.12 
—housekeeper in relation to child-minding expenses  7.75 
—instrument of social policy  12.22, 12.24 
—life assurance premiums  7.21, 12.17, 12.19, 21.134–21.139, 21.151 
—living-away-from home allowances  12.17, 12.30 
—inter-relationship of benefits  12.20 
—medical expenses  7.21, 12.71, 12.30, 12.35–12.51 
—mortgage interest  12.17, 12.21 
—optical expenses  12.17 
—rates and land taxes  7.42, 12.17 
—recommendations  12.4, 12.6, 12.8, 12.11, 12.12, 12.14, 12.15, 12.16, 12.29 
—self-education expenses  12.17, 12.30 
—spouse  6.53, 6.54, 6.55, 7.21, 12.3–12.10, 28.16 
—statistics  12.1, 12.18 
—student  12.16 
—subscriptions  12.17 
—superannuation  7.21, 12.17, 21.30–21.32 
—travelling costs  7.58, 7.59 
—travel to and from work  7.56, 7.61 
—zone allowances  7.21, 12.17, 12.53–12.62 
Concessional rebates 
—and family unit taxation  12.9 
—blind persons  12.50 
—child-minding expenses  7.66–7.75 
—child-minding expenses in relation to education expenses  7.71, 7.72 
—child-minding expenses in relation to housekeeper deduction  7.75 
—dependent adults  12.11 
—education expenses  12.32, 12.33 
—housekeeper  12.12 
—invalids  12.50 



  ― 568 ―
—recommendations 
12.4, 12.6, 12.8, 12.11, 12.12, 12.14, 12.15, 12.16, 12.32, 12.33 
—self-education  7.100 
—spouse  12.4 
—student  12.16 
—zone allowance  12.58–12.59 
Contributions  See Subscriptions 
Coombs Task Force  19.47 
Co-operatives  7.27, 20.29–20.37, 28.22 
—degree of concessional treatment  20.31–20.34 
—government loan repayments  20.37 
—present legislation  20.29–20.30 
—recommendations  20.36, 20.37 
—secondary activities  20.36 
Credit unions  7.27 
Criteria for tax systems  3.1–3.49 See also Goals of tax reform 
Cultural societies  20.22, 20.24 
Cumulative averaging method  See Averaging of income 
Customs duties  17.30 
Death taxes  See Accessions taxes; Estate and gift duty; Inheritance taxes 
Deceased estates  See trusts 
Deductions  See Concessional deductions: Concessional rebates 
Deduction, standard  See Standard deduction 
Denmark 
—rate scale, adjustment of  14.54 
—wealth tax  26.3, 26.6, 26.7, 26.8, 26.20 
Dental expenses, concessional deduction  12.17, 12.45 
Dependant allowances 
—erosion of inflation  14.42 
Dependants 
—estate and gift duty  24.29–24.36, 24.40 
—wealth tax  26.6 See also Child endowment; Concessional deductions; Unit of taxation 
Depreciation  8.11, 8.33, 8.71–8.112, 8.185, 8.186, 8.190, 15.21, 19.63–19.70, 19.89, 28.14 
—and capital gains tax  23.67 
—buildings  8.82–8.109 
—change of ownership  8.98–8.102 
—demolition and damage  8.103 
—inclusion of existing  8.94–8.97 
—leasehold improvements  8.105–8.109 
—qualifying classes  8.93 
—Hulme Committee recommendation  8.83–8.85 
—international comparison  8.86–8.87 
—‘nothings’ and other capital costs  8.110–8.112 
—on home office equipment  7.82 
—plant and machinery  8.75–8.81 



  ― 569 ―
Development gains tax 
2.11, 4.20, 23.78–23.82, 28.25 
Distribution of income and taxes  4.6–4.16 See also Fairness; Progressivity; Redistribution 
Distributions 
—minimum  16.15, 16.39, 16.41, 16.47–16.48, 16.62–16.63, 16.102–16.115 See also Company tax; Dividends; Private companies 
Dividends  1.3, 16.12. 16.13, 16.14, See also Distributions 
Drought bonds, averaging of income  14.62, 14.64 
Economic growth  3.28, 4.26, 5.5 
Economic management  3.27, 28.8 
Education,—policies towards  4.22 
Education expenses 
—concessional deduction  12.17, 12.19, 12.30–12.34 
—in relation to child-minding expenses  7.71, 7.72 
—present law  12.31 
—recommendation  12.32, 12.33 
Education, self  See Concessional deductions; Concessional rebates; Education expenses; Self-education 
Efficiency, economic  3.23–3.26, 11.2, 16,20, 21.4, 26.14, 26.18 
—and other objectives  3.45–3.49 
—concessional deductions  12.19, 12.25, 12.29 
—income tax, international aspects  17.29–17.35, 17.40, 17.42, 17.66–17.67 
Election 
—family unit treatment  10.15, 10.17, 10.21, 10.26, 10.27–10.28, 10.33, pp.140–141 
—partnership treatment for companies  16.24, 16.79–16.96 
Employment contract, payment for release from  9.67–9.69 
Employment income 
—fringe benefits  9.2–9.45, 28.15 
—living away from home allowances  9.60–9.62 
—relating to other years  9.46–9.49 
—standard deduction  9.70–9.73, 28.15 
—study leave  9.63–9.66 
—travel and removal expenses  9.50–9.59 
Employer associations  20.22 
Equalisation, income  See Averaging of income 
Equity 
—and the personal income tax rate structure  14.4, 14.17, 14.60 
—and wealth tax  26.26, 26.18, 26.21, 26.22 
—and company tax  16.6, 16.17, 16.19, 16.23, 16.29, 16.39, 16.46–16.47, 16.50, 16.69 
—concessional deductions  12.19, 12.20, 12.26, 12.27, 12.29, 12.33, 12.54, 12.56, 25.22, 25.26 
—income splitting  10.4, 11.2 



  ― 570 ―
—income tax, international aspects 
17.23–17.28, 17.30, 17.32, 17.40, 17.42, 17.45, 17.65–17.66, 17.68 
—social service payments  13.6, 13.9 
—surcharge on property income  14.10 
—superannuation  21.62, 21.65 See also Fairness 
Estate and gift duty  1.3, 2.5, 3.37, 3.38, 11.16, 11.19, 11.31, 11.41, 21.64, 24.1–24.76, 24.A1–24.A105, 24.B1–24B8, 24.C1–24.C3, 28.31 
—accessions taxes  24.7, 24.8 
—advance payment of  24.43–24.46 
—and wealth tax  24.6, 26.11, 26.15, 26.16, 26.17, 26.23, 26.25 
—assessment procedures  24.69–24.70 
—avoidance  24.2, 24.10 
—base  7.7, 24.11–24.16, 24.22, 24.61 See also Estate and gift duty, proposed integrated base of 
—charities, gifts to  25.17, 25.19 
—concessions  24.29–24.39 
—deductions  24.22 
—dependants  24.29–24.36, 24.40 
—discretionary trusts  24.12, 24.19 
—domicile  24.61 
—estate planning  24.14, 24.30 
—inflation  6.60–6.64 
—inflation, adjustments for  24.2, 24.41–24.42, 24.51, 24.B3–24.B6, 
—inheritance taxes  24.7, 24.9 
—integrated estate and gift duty  24.17–24.21, 24.31, 24.50, 24.64–24.68, 24.A1, 24.B2, 28.26 See also Estate and Gift Duty, proposed integrated base of 
—integration of Commonwealth and State duties  24.71–24.76, 28.26 
—life interests  24.12, 24.19, 24.49, 24.65 
—liquidity of estate  24.39 
—loans  24.13, 24.18 
—merits and defects  3.37–3.38, 4.31, 24.A2 
—options  24.13, 24.18 
—personal representative  24.53, 24.54, 24.57, 24.64 
—present system  24.17, 24.23, 24.27–24.28, 24.38, 24.52, 24.A2, 24.B1 
—purposes  24.4 
—quick succession relief  24.47–24.51, 24.B7–24.B8 
—rate structure  24.2, 24.20, 24.23–24.28, 24.B1–24.B8 
—recommendations  24.9, 24.12, 24.20, 24.22, 24.23, 24.25, 24.26, 24.30, 24.31, 24.33, 24.35, 24.38, 24.39, 24.40, 24.47, 24.48, 24.51, 24.52, 24.56, 24.59, 24.60, 24.62, 24.63, 24.64, 24.68, 24.70, 24.75 



  ― 571 ―
—recovery of duty 
24.64–24.68 
—reservations by Committee members  p.485, p.487 
—revenue yield  24.1, 24.2 
—rights, valuation  24.11, 24.13, 24.18 
—situs of assets  24.61–24.63, 24.C1–24.C3 
—‘slab’ or ‘slice’ system  24.23 
—surviving spouse  24.29–24.31 
—transitional provisions  24.76 
—types of  24.7 
—valuation of assets  24.14, 24.52–24.59 
See also Tax mix 
Estate and gift duty, proposed integrated base of  24.A1–24.A105 
—accumulating income  24.A38–24.A43 
—annuities  24.A51–24.A53, 24.A98 
—assignment of interest on estate  24.A49, 24.A105 
—avoidance of tax  24.A2, 24.A12, 24.A35, 24.A48 
—broadness  24.A2–24.A3 
—‘closely controlled company’  24.A94 
—companies  24.A70–24.A94 
—companies, use of, to effect gifts  24.A77–24.A94 
—company, benefits received from  24.A75–24.A76 
—company, gifts by  24.A79–24.A83 
—company, gifts to  24.A78 
—control over companies  24.A73–24.A74, 24.A76 
—debts  24.A65–24.A66 
—discretionary trusts  24.A37 
—estates limited by time  24.A35–24.A36, 24.A51 
—‘family company’  24.A94, p.485 
—enlargement of existing interest  24.A46 
—inequities under present system  24.A2 
—insurance and superannuation  24.A96–24.A98 
—interrelation of income tax and gift duty  24.A105, p.159, p.161 
—involuntary gifts  24.A95 
—joint ownership of property  24.A99 
—lease of property at reduced rates  24.A59 
—life estates  24.A27–24.A34, 24.A51 
—limited interests  24.A48, 24.A50, 24.A51–24.A53 
—loan of money at low interest rate  24.A62–24.A64 
—non-income producing assets  24.A39, 24.A41 
—options  24.A13–24.A24 
—partnerships  24.A67–24.A69, 24.A105, p.485, p.487 
—powers over property  24.A5–24.A13 
—power to appoint income  24.A10, 24.A105 
—power to consent  24.A13 
—protective trusts  24.A47 
—recommendations  24.A1–24.A105 
—reservations by Committee members  p.485, p.487 
—services, supplied at under or over value  24.A54–24.A57, 24.A105 
—settled property  24.A25–24.A50 
—settlement of property on self  24.A45 
—shares, allotted at undervalue  24.A84 
—shares, differential declarations of dividends  24.A91–24.A93, 24.A105 



  ― 572 ―
—shares, obligation to sell in restricted market 
24.A89–24.A90 
—shares, variation in rights of  24.A85, 24.A86–24.A88 
—tax haven  24.A38 
—transactions, exempt  24.A100–24.A104 
—transfer of assets to a company  24.A70–24.A72 
—transitional provisions  24.A42 
—trusts  24.A5, 24.A7, 24.A25–24.A50, p.485 
—use of property at reduced rates  24.A58–24.A64 
Estate planning  See Estate and gift duties 
Evasion 
—income splitting  11.1 
—shape of personal income tax rate scale  14.31, 14.32, 14.37 See also Avoidance 
Exempt bodies  20.20–20.28 
—charitable institutions  20.21 
—recommendation  20.20, 20.21, 20.26 
Excise duties 
—merits and defects  27.8, 27.10–27.12, 27.14–27.18 
—present system  2.10, 27.3–27.4, 27.7, 27.9 
—recommendations  27.14–27.18, 27.40–27.41 See also Goods and services, taxation of; Tax mix 
Exempt income  7.22 See also Social service grants 
Expenses 
—adoption  12.17 
—dental  12.17 
—education  12.17, 12.30–12.34 
—for release from employment contract  9.67–9.69 
—funeral  12.17 
—insurance for income protection  7.89–7.96 
—medical  12.17, 12.35–12.37 
—of income earning activities in the home  7.76–7.83 
—optical  12.17 
—self-education  7.97–7.100, 12.17 
—subscriptions to trade and professional associations  7.84–7.88 See also Concessional deductions; Concessional rebates 
Expenses of employment, deduction of  7.2, 7.16–7.21, 28.15 
Fairness 
—and other objectives  3.45–3.49 
—capital gains tax  3.36, 23.13 
—company tax  3.33 
—horizontal equity  3.7–3.18, 3.30–3.31, 23.13 
—personal income tax  3.30 
—vertical equity  3.7–3.9, 3.16–3.18, 23.13 See also Equity; Distribution of income and taxes; Progressivity 
Family unit  See Unit of taxation 



  ― 573 ―
Ferguson Committee 
—business and professional income  8.83, 8.91 
—company tax  16.104, 16.109 
—income splitting  11.28, 11.29 
—life insurance  21.142, 21.145 
Finland, wealth tax  26.3, 26.4, 26.8 
Fluctuating income  See Averaging of income 
Foreign source income  7.33 
France 
—income tax, international aspects  17.94 
—unit of taxation  10.11 
Friendly societies  20.22, 20.23 
—tax treatment of premiums and benefits  7.96 
Friendly society dispensaries  20.23, 20.38–20.45, 28.22 
—present legislation  20.39 
—recommendation  20.43, 20.44, 20.45 
Fringe benefits 
—adequacy of present law  9.4, 9.7–9.13, 28.15 
—as part of income  4.28, 7.15 
—as part of job  9.8, 9.9 
—basis of calculation  9.11, 9.12, 9.13 
—allowances, lump sum  9.42 
—education of employee  9.35 
—education of employee's children  9.34 
—entertainment  9.36–9.39 
—goods and services at discount  9.21–9.24 
—housing  9.15, 9.16 
—low interest loans  9.26, 9.27 
—motor vehicles  9.19, 9.20 
—prizes and gifts  9.29–9.30 
—stock options and share purchases  9.32 
—travel  9.36–9.39 
—classes of benefits  9.14–9.45 
—allowances, lump sum  9.40–9.42 
—board and lodging  9.17 
—education of employee  9.35 
—education of employee's children  9.34 
—entertainment  9.36–9.39 
—goods and services at discount  9.21–9.24 
—housing  9.15, 9.16 
—low interest loans  9.25–9.28 
—motor vehicles  9.18–9.20 
—personal expenses  9.33–9.39 
—prizes and gifts  9.29, 9.30 
—stock options and share purchases  9.31–9.32 
—travel  9.36–9.39 
—disclosures by employer  9.45 
—for taxpayer's dependants  9.7, 9.34 
—recommendations  9.8, 9.10, 9.11, 9.12, 9.13, 9.15, 9.16, 9.17, 9.18, 9.22–9.24, 9.25, 9.28, 9.29, 9.32, 9.34, 9.35, 9.36, 9.42, 9.45 
—tax instalment deduction  9.6, 9.43–9.45, 22.102 



  ― 574 ―
Funeral expenses 
—deductions for  12.17, 12.52, 24.22 
Gambling and lottery winnings  7.5, 7.8 
General insurance industry  20.1, 20.2–20.19, 28.22 
—catastrophe fund  20.11–20.12 
—claims incurred but not reported, deduction for  20.9–20.10 
—determination of earned premiums  20.4–20.8 
—present position  20.3, 20.4–20.5, 20.14–20.17 
—recommendations  20.8, 20.12, 20.19 
—reinsurance with non-residents  20.13–20.19 
General mining  See Mining industry 
Germany 
—company tax  2.11 
—imputed rent of the owner-occupied home  7.43 
—income tax, international aspects  17.94 
—integration of company and personal income tax  14.27 
—primary production losses  18.33 
—wealth tax  26.3, 26.4, 26.7, 26.8, 26.19 
Gift duty  See Estate and gift duty 
Gifts 
—as income  7.5, 7.7 
—capital gains tax  23.51 
—concessional deductions  12.17, 12.19, 12.30 See also Charities; Fringe Benefits; Income Splitting 
Goals of tax reform  4.32–4.38, 5.1–5.16, 28.1–28.2, 28.5, 28.10, 28.11, 28.30 See also Criteria for tax systems 
Gold mining, concessions to  See Mining industry 
Goods and services, taxation of  3.7, 3.40–3.43, 27.1, 27.51, 28.9, 28.16, 28.29 See also Excise duties; Retail sales tax; Tax mix; Turnover tax; Value-added tax; Wholesale sales tax 
Government expenditure, rising trend  1.5, 1.7–1.10 
Grants to low income earners, taxation of  12.10 
Hardship relief  22.55–22.61, 28.24 
—Board of Relief  22.55, 22.56 
—procedure for  22.55–22.56 
—scope of  22.59, 22.60 
—statistics  22.57 
Holiday pay  8.10, 8.48, 8.50, 8.51–8.65, 21.15, 21.26 
Home, expenses of income earning activities in  7.76–7.83 
—administrative complexities  7.76–7.77 
—deductibility, tests to be applied  7.77–7.80 
—recommendation  7.81–7.83 
Home-ownership 
—encouragement of  7.44, 12.20 
—interest payments  12.17, 12.21 
Home-ownership, concessions to 
—capital gains tax  23.57–23.59, 23.82 



  ― 575 ―
—personal income tax 
7.44, 7.56 See also Imputed income 
Hospital and medical benefits, concessional deductions for  12.38 
Hospitals  20.21 
Housekeeping deduction  7.67 
—concessional debate  12.12 
—in relation to child-minding expenses  7.75 
Hulme Committee 
—business and professional income  8.3, 8.72–8.73, 8.77, 8.83–8.85, 8.89, 8.91, 8.98 
Imputation system  See Company tax 
Imputed income  7.5, 7.11–7.15 
Imputed rent of the owner-occupied home  7.42–7.53 
—bases of calculation  7.45 
—criticisms of  7.46–7.52 
—history of  7.42 
—recommendation  7.53 
—taxability  7.42 See also Rent payments, deduction for 
Incentives 
—home ownership  7.44 
—shape of personal income tax rate scale  14.26, 14.28–14.30, 14.37 
—to save  21.108, 21.116, 21.118, 21.127 
—to work  3.24, 4.24–4.25 
Income 
—charities  See Charities 
—employment  See Employment income 
—partnerships  See Partnerships 
—trusts  See Trusts 
Income, assessability of certain receipts 
—imputed rent  7.42, 7.46–7.52 
—lump sum payments  7.34, 7.38, 7.41 
—periodic payments  7.36 
Income averaging  See Averaging of income 
Income splitting  10.4, 10.17, 10.26, 10.29, 11.1–11.48, 24.A105 
—aggregation of income  11.8, 11.9–11.11, p.157 
—alienation of income  11.37 
—and section 260  11.42–11.44, p.157, p.159, p.162 
—avoidance of tax  11.1, 11.6, p.157, 28.16 
—children  11.8, 11.9–11.15, 11.26, 11.28, 11.45, pp.158–160, p.161 
—evasion of tax  11.1 
—excessive payments for services and benefits  11.34–11.36 
—family companies  11.3, 11.25–11.33, 11.34, 11.35, 11.36, 11.38–11.41 
—income from gifts of capital  11.4, 11.16–11.24, p. 157, pp.158–159 
—inequity  11.2 
—international comparisons  11.5 
—methods  11.3, 11.25–11.33 



  ― 576 ―
—non-income producing assets 
11.16, 11.18, 11.19 
—obligations to dependants  11.45, 11.46 
—partnerships  11.3, 11.25–11.33, 11.34, 11.36, p.161 
—recommendations  11.5, 11.9, 11.13, 11.15, 11.24, 11.30, 11.32, 11.33, 11.36, 11.41, 11.44, 11.45, 11.46, 11.48 
—relatives  11.3, 11.7, 11.25, 11.34, 11.38, 11.39, 11.46 
—reservations by Committee members  pp.157–160, pp.161–162 
—spouses  11.7, 11.8, 11.22, 11.23, 11.28, 11.45, pp.157–159, p.161 
—transactions at arm's length  11.7, 11.13, 11.14, 11.32, 11.33, 11.41, 11.44 
—trusts  11.3, 11.25, 11.33, 11.36, p.161 
Income tax 
—ability to pay  9.76 
—and gift duty  24.A105 
—annual accounting  7.23–7.26 
—base  7.1–7.102, 28.13 
—compensation for injury  7.5–7.9, 7.34–7.40, 7.41, 21.15 
—complexity  2.5, 3.31, 14.2, 14.3–14.6, 17.37–17.38, 17.49, 17.52 
—concept of income  3.7–3.16, 7.1–7.15 
—exempt income  7.22 
—expenses  7.16–7.21 
—income moving through intermediaries  7.28–7.31 
—international aspects  See Income tax, international aspects 
—losses  7.25 See also Company tax expenses; Personal income tax; Tax mix 
Income tax, administration  See Administration, income tax 
Income tax, international aspects  17.1–17.104, 28.19 
—Australian residents  17.12–17.55 
—‘Australian trust’  17.16 
—branch operations in Australia  17.91–17.95 
—Canada  17.51, 17.96 
—credit for foreign tax  17.3, 17.5, 17.19–17.21 
—double taxation  17.16, 17.22–17.41, 17.10 
—double taxation agreements  17.5, 17.7–17.8, 17.11, 17.12, 17.21, 17.27, 17.39, 17.44, 17.74–17.104 
—double taxation, relief from  17.22–17.41, 17.77 
—efficiency, economic  17.29–17.35, 17.40, 17.42, 17.66–17.68 
—equity considerations  17.23–17.28, 17.30, 17.32, 17.40, 17.42, 17.45, 17.65–17.66, 17.68 
—foreign source  7.33, 17.2, 17.3, 17.4, 17.5, 17.12–17.55, 17.56, 17.77, 28.19 
—France  17.96 
—Germany  17.96 



  ― 577 ―
—Italy 
17.96 
—Japan  17.21, 17.96 
—jurisdiction  17.1, 17.2, 17.6, 17.7, 17.9, 17.10, 17.38, 17.42, 17.53, 17.56, 17.60–17.61, 17.63, 17.101, 17.104 
—New Zealand  17.5, 17.96 
—non-residents  7.33, 17.1, 17.6, 17.10, 17.56–17.95, 17.A1–17.A25, 28.19 
—non-residents—justification for taxing  17.63–17.68 
—O.E.C.D. model convention  17.96, 17.99 
—origin of income  See Source of income 
—Papua New Guinea  17.20, 17.27, 17.35, 17.37, 17.38 
—permanent establishment  17.7, 17.61 
—recommendations  17.42–17.55, 17.70, 17.73, 17.76, 17.80–17.81, 17.88, 17.90, 17.92, 17.93, 17.95, 17.100, 17.101, 17.102, 17.103, 17.104, 17.A1–17.A25 
—residence of companies  17.13–17.15 
—revenue implications  17.41 
—royalties  See Interest and royalties 
—simplicity  17.36–17.41, 17.42, 17.43, 17.68, 17.A10 
—Singapore  17.21, 17.96 
—source of income  17.1, 17.2, 17.6, 17.7, 17.8, 17.9, 17.10, 17.56–17.93, 17.A1–17.A25 
—tax-haven companies and trusts  17.9, 17.10, 17.15, 17.16, 17.26, 17.46–17.55, 17.71, 17.73, 17.76, 17.82, 17.90, 17.93 
—transactions between residents and non-residents  17.84–17.90 
—treatment of income derived from 
—dividends  17.A22–17.A23 
—domestic manufacturing  17.A5 
—domestic sale of domestic goods  17.A3 
—interest  17.A24–17.A25 
—know-how  17.A19–17.A21 
—overseas sale of domestic goods  17.A4 
—performance of non-employee services  17.A12 
—personal employment  17.A10–17.A11 
—rental of chattels  17.A14–17.A16 
—sale of Australian real property  17.A6 
—sale of commercial or industrial property  17.A18 
—sale of imported goods  17.A1–17.A2 
—sale of shares  17.A7–17.A9 
—use of commercial or industrial property  17.A17 
—United Kingdom  17.13, 17.37, 17.88, 17.96, 17.101, 17.A1 
—United States  17.37, 17.48, 17.51, 17.96, 17.101, 17.102, 17.104, 17.A1 



  ― 578 ―
—withholding tax 
17.1, 17.6, 17.53, 17.61–17.62, 17.67, 17.68, 17.69, 17.71–17.76, 17.82, 17.86, 17.91, 17.94–17.95, 17.A22, 17.A25 
Indexation 
—and inflation  6.34 
—capital gains tax  23.22, 23.82 
—estate and gift duty  24.44, 24.46 
—personal income tax  2.11 See also Rate scale, adjusting 
India,—wealth tax  26.3 
Industries Assistance Commission  19.5, 19.49, 19.55, 19.70 
Inflation  6.1–6.72, 28.4 
—and the personal income tax rate structure  6.15, 14.2, 14.39–14.59, 28.16 
—and averaging of income  14.69 
—capital gains tax  3.16, 6.68, 6.69, 6.70, 23.22–23.24, 23.29, 23.30, 23.82 
—company tax  6.22 
—concessional allowances  6.52–6.59 
—cost push theory  6.7, 6.9, 6.10, 6.11 
—demand pull theory  6.7, 6.8, 6.10 
—distribution of income and wealth  6.3 
—effects on taxes  6.5, 6.36–6.72 
—erosion of personal allowances  14.42 
—estate and gift duty  6.60–6.64, 24.2, 24.41–24.42, 24.51, 24.B3–24.B6 
—indexation, wage  6.34 
—indirect taxes  6.23 
—investment income  9.77–9.78 
—payroll tax  6.23 
—personal income tax  2.11, 6.15–6.21, 6.35, 6.42–6.51 
—professional income  8.5 
—property income  6.69, 6.70 
—recommendations re  6.32, 6.51, 6.64, 6.72 
—savings, effect on  6.3, 21.164 
—tax as a tool to control  6.7–6.35 
—method  6.26, 6.33 
—problems re  6.27–6.32 
—taxation, effect of on  6.4, 6.7–6.35 
—tax base  6.36, 6.65–6.71 
—tax drift  6.36, 6.39–6.64 
—tax mix  6.41 
—tax payment  6.36, 6.37–6.38 
—total tax receipts  6.40 
—wealth tax  26.18–26.19 
Inflation, business income  6.66–6.67, 6.69, 6.70, 8.5, 8.13, 8.175, 8.193 
—accelerated depreciation  8.185 
—committees of inquiry, other  8.172, 8.180, 8.184 
—replacement cost depreciation  8.186 
Information supplied by Commissioner  22.68–22.73 
—advance rulings  22.73 



  ― 579 ―
—information bulletins 
22.70–22.72, 23.2–23.3, 23.5, 23.20 
—return forms  22.68–22.69 
Information, penalties for failure to supply  22.49–22.50 
Inheritance taxes  2.11, 3.38 See also Estate and gift duty 
Instalment deductions  See Tax instalment deductions 
Insurance industry  7.27, 20.1, 20.2–20.19 See also Life Assurance 
Insurance premiums 
—concessional deductions  7.21, 12.17, 12.19, 21.134–21.139, 21.151 
Insurance premiums, for income protection  7.89–7.96 
—justification for deductibility  7.93–7.95 
—recommendation  7.93–7.95 
Interest on home loans, deductibility of  7.17–7.21, 7.44, 7.54, 12.30 
International aspects of income tax  See Income tax, international aspects, also under individual countries 
Invalid dependants, concessional rebate for  12.11 
Invalids, medical expenses  12.49–12.51 
Inventors  See Authors and Inventors 
Investment income  9.74–9.81, 16.3 
—and inflation  9.77, 9.78 
—need for concessional treatment  9.74–9.81 
—basis of concession  9.79–9.80 
—justifications  9.75, 9.76 
—recommendations  9.78–9.81 See also Property income  Ireland 
—company tax  16.52 
—wealth tax  26.3 
Italy, income tax, international aspects  17.96 
Japan 
—income tax, international aspects  17.21, 17.96 
—wealth tax  26.3 
Land taxes  See Rates and taxes, deduction for 
Legislative drafting  28.4 
Library, professional  8.202–8.204 
Life insurance  21.1–21.9, 21.78, 21.134 
—and capital gains tax  23.65 
—and superannuation contributions  21.135–21.136 
—annuity  21.136 
—companies, taxation of  21.140–21.147 
—concessional deductions  7.21, 12.17, 21.134–21.139, 21.151 
—contributions to  7.21, 12.30 
—history  21.134–21.157 
—international comparisons  21.150–21.157 
—observations  21.150–21.164 
—policy proceeds, taxation of  21.148–21.149 
—premiums, deductibility of  21.134–21.139 



  ― 580 ―
—present legislation 
21.134–21.157 
—superannuation funds  21.46 
—‘30/20’ requirement  21.147 
Ligertwood Committee 
—business and professional income  8.3, 8.54, 8.61, 8.67, 8.72, 8.107, 8.119, 8.122, 8.129, 8.157 
—company tax  16.113, 16.138, 16.140–16.141 
—friendly society dispensaries  20.39 
—superannuation and life insurance  21.24, 21.33, 21.36, 21.41 
—trusts  15.30 
Living away from home allowances  9.60–9.62 
—concessional deduction  12.17, 12.30 
—recommendation  9.62 
Local governing bodies and public authorities  20.20 
Long service leave  7.26, 8.10, 8.33, 8.48, 8.50, 8.51–8.65, 21.15, 21.26, 21.70 
Losses 
—capital gains tax  23.71 
—company tax  16.136–16.144 
—income tax  7.25 See also trusts, company tax 
Losses, recoupment of  8.12, 8.155–8.174 
—and exempt income  8.169–8.171 
—carry back  8.156–8.163 
—carry forward  8.113, 8.164–8.168 
—effect of dividend income  8.172–8.174 
—international comparisons  8.156, 8.166 
—recommendations  8.163, 8.168, 8.171, 8.174 
Lump sum payments 
—compensation for injury  7.34, 7.35 
—superannuation and life insurance  21.15, 21.16, 21.26, 21.27, 21.47, 21.49–21.51, 21.52, 21.54–21.57, 21.61, 21.62–21.93, 21.112, 21.114, 21.128, 21.129 
Luxembourg, wealth tax  26.3, 26.4, 26.8 
Manufacturing associations  20.22 
Marginal adjustment scheme  See Averaging of income 
Medical and surgical appliances 
—concessional deduction  12.44 
Medical expenses 
—blind persons  12.49–12.51 
—concessional deduction  7.21, 12.17, 12.30, 12.35–12.51 
—encouragement of  12.20 
—equity  12.38 
—invalids  12.49–12.51 
—possible anomoly  12.36 
—present law  12.35 
—travel  12.47 
—travel by ambulance  12.48 
Mining industry  7.29, 19.1–19.115, 28.21 
—accelerated depreciation  19.63–19.70 
—accounting practices  19.14, 19.33, 19.59, 19.67 
—anti-pollution and ecological expenditure  19.30–19.35 



  ― 581 ―
—capital raising and company formation expenditure 
19.62 
—conduct of mining operations  19.8–19.12 
—depletion allowance  19.36–19.41 
—development and infrastructure expense  19.21–19.26 
—exploration and prospecting expenditure  19.18–19.20, 19.56–19.61, 19.A3–19.A35 
—gold mining  19.47, 19.A4, 19.A94–19A95 
—housing and welfare expenditure  19.71–19.72 
—immediate write-off provisions  19.63–19.70 
—international comparisons  19.16, 19.29, 19.A1–19.A107 
—net income  19.1, 19.4, 19.13–19.16, 19.36 
—overseas exploration and prospecting  19.29 
—present legislation  19.2, 19.17, 19.18, 19.21–19.22, 19.27–19.28, 19.42–19.44, 19.48–19.74, 19.62, 19.63–19.65, 19.71, 19.A3–19.A7 
—pre-tax profits  19.1 
—processing and treatment of minerals  19.27–19.28 
—purchase of rights or information  19.42–19.45 
—recommendations  19.19, 19.21, 19.25, 19.26, 19.27, 19.28, 19.34, 19.39, 19.41, 19.44, 19.45, 19.46, 19.51, 19.54, 19.61, 19.62, 19.70, 19.72 
—recent legislative amendments  19.48–19.74 
—sale of right or information  19.46, 19.A11, 19.A53–19.A54 
—site restoration  119.31–19.35 
—special treatment of  19.1, 19.4, 19.15, 19.16 
—transport facilities  19.22–19.26, 19.73–19.74, 19.A42–19.A48 
—wasting assets  19.12, 19.37, 19.41 See also Petroleum mining; Quarrying industry 
Mortgage interest—concessional deductions for  12.17, 12.21 
Mutual funds  7.27 
Mutuality principle  20.25, 20.33, 20.41 
National health insurance scheme, medical expenses  12.42 
National superannuation committee of inquiry  21.66 
Naturopaths  12.46 
Negative tax system 
—and social security payments  13.15 
—and wealth tax  26.2 
Netherlands 
—rate scale, adjustment of  14.54 
—wealth tax  26.3, 26.7, 26.19, 26.20 
Net wealth (net worth) tax  See Wealth tax 
New Zealand 
—averaging of income  14.81–14.82 
—business and professional income  8.151–8.153 
—charities  25.7, 25.13, 25.19 
—company tax  16.126 
—income splitting  11.42 
—income tax, international aspects  17.5, 17.96 



  ― 582 ―
—investment income 
9.80 
—life insurance  21.151, 21.154, 21.157 
—mining industry  19.A27–19.A35, 19.A89–19.A90, 19.A102–19.A105 
—personal income tax rate structure  14.3 
—property speculation tax  2.11 
—rebate for overtime earnings  6.19 
—standard deduction  9.71, 9.72 
—superannuation  21.53, 21.54, 21.56 
—tax rebate, non-reimbursable  14.19 
—unit of taxation  10.2 
—wealth tax  26.3 
Non profit clubs and societies  20.25 
Non-residents  7.22, 7.33, 23.26 
Norway, wealth tax  26.3, 26.4, 26.7, 26.9, 26.20 
‘Nothings’  8.71, 8.110–8.112 
Objections to assessments  2.5, 22.16–22.21, 28.24 
—cost of  22.40–22.42 
Oil and gas mining  See Petroleum mining 
Optical expenses, concessional deduction for  12.17 
Pakistan, wealth tax  26.3 
Parent, concessional rebate for  12.11 
Partnerships  7.28, 7.30, 11.3, 11.25–11.33, 11.34, 11.36, 15.1–15.3, 15.41–15.53, 15.63, 23.69, 28.17 
—allocation of income  15.3, 15.41, 15.45 
—change from cash to accruals basis  8.26 
—character of income  15.47–15.48 
—difference to companies  15.2 
—foreign source income  15.63 
—international aspects  15.63 
—loss treatment  15.49–15.50 
—net income  15.41, 15.42, 15.44–15.48 
—non-resident partner  15.63 
—profits  15.41, 15.44 
—recommendations  15.48, 15.51, 15.52, 15.53, 15.63 
—retired partners  15.51–15.53 
—tax credit, dividends  15.47 See also Business and professional income 
P.A.Y.E.  See Tax instalment deductions 
Payment of tax  22.89–22.139 
Payments, apportionment of composite  7.102 
Payroll tax  1.3, 2.9, 27.45 
—and inflation  6.23 
Penalties  22.45–22.54 
—failure to make return  22.51–22.53 
—failure to supply information  22.49–22.50 
—imprisonment  22.46 
—time for payment of  22.48 
Pensions, superannuation  21.48, 21.52, 21.66, 21.78, 21.112, 21.114, 21.129 
Personal alowance, universal  14.19 



  ― 583 ―
Personal income tax 
3.30–3.32, 10.1–10.33, 12.1–12.62, 13.1–13.27, 14.1–14.85, 28.16 
—and company tax  14.26–14.27, 16.8, 16.10, 16.17, 16.34, 16.40, 16.41 
—complexity of  3.31, 14.2, 14.3–14.16 
—concessional deductions: dependants  7.21, 12.3–12.6 
—concessional deductions: others  7.21, 12.30–12.62 
—indexation  2.11, 6.34 
—inflation and the rate scale  2.11, 6.15–6.21, 6.35, 6.42–6.51 
—negative tax system  13.15, 26.2 
—principles relating to concessional deductions  12.17–12.29 
—rate structure  14.1–14.85, 27.44 
—simplification of rate structure  3.21, 3.31 
—social service payments, taxation of  5.15, 7.22, 13.1, 13.3, 13.10–13.12, 27.44 
—unit of taxation  2.11, 3.11, 10.1–10.33 See alsoIncome tax; Rate structure; Shape of personal income tax rate scale; Tax mix 
Personal Representative as trustee  15.8 
Petroleum mining  19.75–19.91 
—amortisation  19.88 
—depreciation allowances  19.89 
—development expenditure  19.86–19.88 
—exploration and prospecting expenditure  19.78–19.85 
—international comparisons  19.77, 19.A1–19.A107 
—present legislation  19.75–19.76, 19.79, 19.80, 19.83, 19.87, 19.90, 19.A8–19.A10, 19.A49–19.A52 
—purchase of right or information  19.90–19.91 
—recommendations  19.82, 19.84, 19.87, 19.91 
—wasting assets  19.88 See also Mining industry; Quarrying industry 
Pollution and ecological expenditure 
—business and professional income  8.14, 8.207–8.208 
—mining industry  19.30–19.35, 19.110 
Primary production  7.24, 7.27 
Primary producers, averaging of income  7.24, 14.62–14.63, 14.65, 14.68–14.69, 14.77, 14.79, 14.85 
Primary production, taxation of  18.1–18.35, 28.20 
—averaging of income  18.19–18.21 
—bunching of income  18.19 
—capital expenditure  18.22–18.28 
—cost price valuation  18.9, 18.10, 18.11–18.12, 18.13, 18.14, 18.15, 18.16 
—depreciation  18.22–18.28 
—eligibility  18.3–18.4 
—forest operations  18.5–18.8 
—hobby farms  18.33, 18.35, 28.20 
—losses  18.29, 18.33, 18.34 
—market selling price valuation  18.9, 18.10, 18.13, 18.16 
—present system  18.1–18.2 



  ― 584 ―
—recommendations 
14.77, 14.79, 18.8, 18.18, 18.19, 18.20, 18.21, 18.28, 18.35 
—restriction of benefit of tax provisions applying  18.30–18.35 
—spreading of profits  18.19–18.21 
—valuation of livestock  18.9.18.18 
Private companies  11.3, 11.25–11.33, 11.34, 11.35, 16.3, 16.13, 16.15, 16.62, 16.102, 16.105, 16.107, 16.130 
—close control  16.105, 16.106, 16.108, 16.112 
—investment companies  16.116–16.121 See also Companies; Company tax 
Professional income  See Business and professional income 
Progressivity 
—effects of  4.23–4.29 
—estate and gift duty  24.4, 24.24 
—issues re  3.18, 4.1–4.5 
—personal income tax rate structure  14.1 
—statistics  4.6–4.16 See also Fairness; Redistribution 
Property income  4.31, 16.116, 16.117 
—inflation  6.69, 6.70 See also Investment income; Surcharge on property income 
Prosecutions  22.1, 22.45–22.54 
—onus of proof  22.47 
—present position  22.45 
—recommendations  26.46, 22.47, 22.48, 22.53, 22.54 
Provisional tax  22.109–22.128 
—criticisms of  22.118–22.122 
—international comparisons  22.117 
—p.a.y.e. method  22.116–22.117, 22.123–22.128 
—present system  22.109, 22.113, 22.114 
—recommendations  22.116, 22.123 
Quarrying industry  19.92–19.115, 28.20 
—anti-pollution and ecological expenditure  19.110 
—depreciation of quarrying plant  19.100–19.101 
—development expenditures  19.104–19.109 
—expenditure incurred in  19.96–19.99 
—exploration expenditure  19.102–19.103 
—international comparison  19.98, 19.99 
—nature of, compared to mining  19.93–19.95 
—present legislation  19.97 
—purchase and sale of a quarry  19.111–19.115 
—recommendations  19.103, 19.105, 19.109, 19.110, 19.111, 19.113–19.114, 19.115 
—transport facilities  19.108 
—wasting assets  19.92, 19.95, 19.111, 19.115 See also Mining industry; Petroleum mining 
Rate scales, units of taxation  10.20–10.22 



  ― 585 ―
Rate scale, adjustment of 
—by statutory or discretionary mechanism  14.47–14.52 
—procedure  14.52–14.59 
—purposes of  14.44–14.46 
—recommendation  14.52, 14.59 
Rate structure, personal income tax  14.1–14.85 
—and inflation  14.2, 14.39–14.59 
—averaging of income  14.2, 14.60–14.85 
—basic characteristics  14.1 
—complexity  14.2, 14.3–14.5 
—dependant allowances  14.42 
—frequency of adjustment  14.2, 14.40–14.59 
—shape  14.2, 14.15–14.39, 28.16 
—surcharge on property income  14.2, 14.6–14.14 
Rate scale, personal income tax  See Averaging of income; Complexity of personal income tax rate structure; Rate scale, adjustment of; Shape of personal income tax rate scale; Surcharge on property income 
Rates and land taxes  26.1 
—concessional deduction  12.17, 12.30 
Rates and taxes, deductions for  7.42 
—recommendation  7.54 
Receipts, composite apportionment of  7.101 
Records, keeping of for travel and entertainment expenses  9.39 
Redistribution 
—non-tax policies  4.17–4.22 
—objective  4.32–4.38 
—through taxation  4.17, 4.23–4.31 See also Fairness; Progressivity 
Reform, goals of  4.32–4.38, 5.1–5.16, 28.1–28.2, 28.5 
Registered tax agents  22.83–22.88 
—constitution of board  22.86 
—declarations by  22.87–22.88 
—present position  22.83–22.85 
—recommendations  22.85, 22.86, 22.88 
Rent payments, deduction for  7.56, 7.57 See also Imputed rent 
Repairs  8.13, 8.198–8.201 
Retail sales tax  27.29, 27.30 
Retirement benefits  7.5, 7.9 
Retiring allowances  21.3, 21.25–21.29, 21.43 See also Superannuation and retiring allowances 
Returns, penalties for failure to make  22.51–22.53 
Revenue, losses from concessional deductions  12.18 
Review and appeal  See Appeals 
Ross Committee (1967), charities  25.7, 25.13 
Salary and wages income  See Employment income 



  ― 586 ―
Sales Tax 
See Retail sales tax; Wholesale sales tax 
Saving incentives  See Incentives 
Savings 
—bias against  21.5–21.6 
—encouragement of  9.75, 21.6, 21.7 
—inflation, effect of  6.3, 21.164 
Self education 
—concessional deduction  12.17, 12.30 
—expenses  7.97–7.100 
—recommendation  7.100 
Senate Standing Committee on Finance and Government Operations (1973)  24.2 
Shape of personal income tax rate scale 
—avoidance and evasion  14.31–14.32, 14.37 
—effect on incentives  14.26, 14.28–14.30, 14.37 
—high range  14.25–14.33 
—in relation to company income tax  14.26–14.27 
—intermediate range  14.34–14.39 
—low range  14.16–14.24 
—maximum marginal rates  14.26, 14.33 
—recommendation  14.21, 14.33 
—revenue yield  14.25, 14.35 
—size of marginal steps  14.17–14.22, 14.24, 14.34, 14.36, 14.38 
Simplicity 
—and other objectives  3.45–3.49 
—and social security payments  13.6–13.7, 13.10–13.11, 13.13–13.14 
—averaging of income  14.69 
—company tax  3.21, 3.34 
—concessional deduction  12.25, 12.29 
—criteria of tax reform  3.19–3.22 
—excise duties  27.10 
—goals of tax reform  5.1, 5.16 
—income tax, international aspects  17.36–17.41, 17.42, 17.43, 17.68, 17.A10 
—personal income tax  3.21, 3.31 
—public expenditure v. concessional deductions  3.44 
—surcharge on property income  14.6 
—wholesale sales tax  27.A6 See also Complexity 
Singapore, income tax  17.21, 17.96 
Social security  See Child endowment; Social security contributions; Social service payments 
Social security contributions  2.7–2.9, 13.1, 13.17–13.27 
Social service payments  1.10, 3.4, 5.3, 13.2–13.16 
—alternatives to concessional deductions  3.44 
—and negative tax system  13.15, 26.2 
—and progressivity  3.44, 4.11–4.12 
—and VAT  27.47, 27.49 
—as income  13.3, 28.16 



  ― 587 ―
—eligibility for 
13.3–13.5, 13.13 
—incorporation in the tax base  5.15, 7.22, 13.1, 13.10–13.12, 27.44 
—reference numbers  13.14 See also Child endowment 
South Africa 
—mining industry  19.A25–19.A26, 19.A81–19.A88, 19.A106–19.A107 
—unit of taxation  10.10 
Spare parts  8.118–8.120 
Split-rate system  See Company tax 
Spooner Committee 
—business and professional income  8.3, 8.54, 8.72, 8.129, 8.149, 8.157, 8.165 
—company tax  16.105 
—excess profits tax  6.30 
—friendly society dispensary  20.38–20.39, 20.43 
—quarrying  19.112 
—retiring allowances, recommendations  21.20–21.23, 21.80 
Sporting societies  20.22, 20.27, 20.28 
Spouse 
—concessional deduction for  12.3 
—concessional rebate for  12.4, 14.23 
—earnings of  12.7 
—estate and gift duty  24.29–24.31 See also Concessional deduction; Unit of taxation 
Sri Lanka, wealth tax  26.3 
Stabilisation  See Economic management 
Standard Deduction  9.70–9.73, 28.15 
—recommendation  9.73 
Statistics 
—business and professional income  8.52, 8.55, 8.58, 8.62 
—concessional deductions  12.1, 12.18 
—distribution of income and taxes  4.6–4.16 
—historical perspective  2.1–2.5 
—inadequacy  4.6, 14.15, 14.20, 26.24, 28.8 
—international comparison  2.6–2.11 
—superannuation and life insurance  21.10, 21.139 
Student 
—concessional allowance for  12.16 
Study leave  9.63–9.66 
—recommendation  9.66 
Submissions 
—administration  22.1, 22.2–22.4, 22.11, 22.15, 22.16, 22.40, 22.43, 22.45, 22.49, 22.51, 22.59, 22.64, 22.74, 22.107, 22.110, 22.139 
—advertisement inviting  xviii 
—business and professional income  8.3–8.4, 8.11, 8.27–8.28, 8.78, 8.79, 8.130, 8.167, 8.175 
—company tax  16.122–16.124 
—criteria of tax system  3.5 



  ― 588 ―
—estate and gift duty 
24.2 
—exempt bodies and mutual associations  20.28, 20.30, 20.36, 20.40 
—general insurance  20.8, 20.11, 20.18 
—goods and services, taxation of  27.A9, 27.A11, 27.A16 
—income tax base  7.27 
—income tax, international aspects  17.95 
—inflation  6.42, 6.66 
—mining  19.5, 19.19, 19.21, 19.23, 19.27, 19.29, 19.53, 19.67, 19.68, 19.77, 19.92, 19.95, 19.98, 19.100–19.101, 19.107 
—numbers received  xviii, 1.5 
—personal income tax rate structure  14.15 
—primary production  18.26, 18.28, 18.30 
—reform of tax system  1.5 
—social security  13.2 
—superannuation  21.105 
—unit of taxation  10.3–10.4 
—wealth tax  26.2 
Subscriptions  7.84–7.88 
—distinction between employed and self employed person  7.84, 7.85 
—concessional deduction  12.17, 12.30 
—recommendation  7.88 
Superannuation  21.1–21.133 
—alternative methods of treatment  21.58–21.133 
—and capital gains tax  23.66 
—annuities  21.48, 21.55, 21.75, 21.78 
—arm's length transactions  21.28, 21.43, 21.74 
—avoidance of tax  21.49–21.51 
—benefits from funds, taxation of  21.47–21.51 
—concessional deduction  12.17, 12.19, 21.30–21.32 
—contributions, employee  21.30–21.36, 21.102, 21.117, 21.118, 21.121 
—contributions, employer  21.33–21.35, 21.117, 21.118, 21.130, 21.131 
—contributions to  7.89, 7.21, 7.95, 12.30 
—funds, taxation of  21.37–21.46, 21.94–21.101, 21.120 
—international comparisons  21.52–21.57 
—Canada  21.53, 21.55 
—New Zealand  21.53, 21.54, 21.56 
—U.K.  21.53, 21.56 
—U.S.  21.53, 21.57, 21.76 
—lump sum payments  21.13–21.24, 21.26, 21.27, 21.47, 21.49–21.51, 21.54–21.57, 21.61, 21.62–21.93, 21.112–21.114, 21.128, 21.129 
—pensions  21.48, 21.52, 21.66, 21.78, 21.112, 21.114, 21.129 
—present position  21.10–21.51 
—problems of reform  21.58, 21.63, 21.65, 21.83, 21.106, 21.132 



  ― 589 ―
—proposed ‘approved funds’ 
21.109, 21.114, 21.119–21.122 
—reasonable benefits  21.35, 21.42, 21.43, 21.79, 21.99, 21.102, 21.108 
—recommendations  21.68–21.79, 21.89–21.93, 21.94–21.101, 21.102–21.104, 21.105, 21.107, 21.110–21.122 
—restricted covenants  21.74 
—self employed persons  21.36, 21.44, 21.71, 21.72, 21.87, 21.95, 21.105, 21.108, 21.114, 21.116 
—spreading provisions  21.70, 21.73, 21.75, 21.76–21.77, 21.110 
—tax assisted saving  21.108, 21.116, 21.118, 21.127 
—‘30/20’ requirement  21.39, 21.42, 21.44, 21.46, 21.61, 21.97, 27.107 
—transitional provisions  21.80, 21.101, 21.106, 21.123, 21.124 
—vesting of contributions  21.111, 21.131 
Superannuation and Life Insurance, General considerations  21.1–21.9 
—concessional treatment  21.8 
—savings, encouragement of  21.6–21.7 
—special treatment, case for  21.4–21.9 
—transitional provisions  21.9 See also Concessional deductions 
Surcharge on property income 
—complexity  14.10, 14.12–14.13 
—personal income tax rate structure  14.2, 14.6–14.14 
—recommendation  14.14 
Sweden 
—imputed rent of the owner-occupied home  7.43 
—rate scale, adjustment of  14.55 
—travel to and from work  7.60 
—unit of taxation  2.11 
—wealth tax  26.3, 26.4, 26.7, 26.9, 26.20, 26.21 
Switzerland, wealth tax  26.3, 26.4, 26.7, 26.8 
Tax Avoidance  See Avoidance; Trusts 
Tax base, erosion of  6.36, 6.65–6.71, 12.27 
Tax credits  2.11 
—for gifts to charities  25.22, 25.25 
Tax drift  6.36, 6.39–6.64, 14.40 
—concessional allowances  6.52–6.59 
—estate and gift duties  6.60–6.64 
—income tax rates  6.42–6.51 
—tax mix  6.41 
—total tax receipts  6.40 
Tax havens  17.9, 17.10, 17.15, 17.16, 17.26, 17.46–17.55, 17.71, 17.73, 17.74, 17.82, 17.90, 17.93, 24.A38 
Tax instalment deductions (PAYE)  9.6, 9.43–9.45 22.89, 22.91–22.108 
—averaging of income  14.69 



  ― 590 ―
—concessional deductions 
22.92 
—dual employment  22.100–22.101 
—excess deductions  22.91–22.95 
—extension of system  22.97–22.99, 22.102 
—false claims  22.106 
—fringe benefits  22.102 
—home loan interest  22.92 
—identity of taxpayer under PAYE system  22.100, 22.104–22.105 
—interest on excess instalments  22.107–22.108 
—limitations on effectiveness  22.96–22.103 
—variation in  22.92, 22.94–22.95 
Tax mix 
—actual  2.4, 2.9–2.10, 6.41 
—proposals re  1.6, 3.45–3.49, 5.1–5.16 
Tax payment, and inflation  6.36, 6.37–6.38 
Tax planning  16.96, 16.118–16.119, 24.2 See also Trusts 
Tax rebate, non-reimbursable  14.19 
Terms of reference  xvii, xx, 1.8, 1.14, 3.1–3.6, 28.1, 28.4, 28.5, 28.6 
‘30/20’ requirement  21.39, 21.42, 21.44, 21.46, 21.61, 21.97, 21.107, 21.147 
Trade unions  20.22, 20.27 
Trading stock  8.12, 8.113–8.154, 8.187–8.188 
—cost price valuation  8.124–8.155, 8.126–8.135 
—definition of  8.166–8.122 
—disposal of  8.140–8.154 
—land held for resale  8.177 
—market selling valuation  8.136–8.138 
—methods of valuation  8.123, 8.139 
—net realisable value  8.137–8.138 
—plant spares and consumable stores  8.118–8.120 
—present provisions  8.113–8.114, 8.116–8.117 
—recommendations  8.117, 8.118, 8.121, 8.133, 8.135, 8.138, 8.139, 8.144–8.145, 8.146, 8.151 
—replacement price  8.139 
—shares and debentures  8.119–8.121 
Transfer payments  See Child endowment; Social service grants 
Travel and removal expenses  9.50–9.59 
—recommendations  9.51, 9.56, 9.58 
—removal within employment  9.35–9.56 
—temporary travel within employment  9.51–9.52 
—to new employment  9.57–9.59 See also Living away from home allowance; Study leave 
Travelling and entertainment expenses  8.14, 8.205–8.206, 9.36–9.42 
Travel to and from work, deductibility of  7.58–7.65 
—arguments against  7.64 
—arguments for  7.61–7.63 
—recommendation  7.65 
Treasury, assistance of  xviii 



  ― 591 ―
Treasury/Tax papers 
xviii 
Trusts  15.1–15.40, 15.54–15.62, 7.27, 7.28, 7.29, 7.31, 11.3, 11.25–11.33 
—accounting period  15.9 
—accumulating income  15.25–15.35, 15.55, 15.59, 15.60, 28.17 
—allocation of income  15.3, 15.7 
—and capital gains tax  23.26, 23.45–23.50 
—annuity  15.13 
—assignment of interest  15.57 
—beneficiaries presently entitled  15.4, 15.5, 15.7, 15.8–15.13 
—beneficiaries, presently entitled but under disability  15.14–15.15 
—bonus shares  15.18 
—character of income  15.6 
—credit for tax paid by  15.28–15.29 
—deceased estates  15.8, 15.23, 15.31, 15.33, 15.35, 24.12, 24.19 
—depreciation  15.21 
—difference to companies  15.2 
—discretion, exercise of  15.10–15.11 
—double taxation relief  15.60 
—foreign source income  15.55, 154.56, 15.58, 15.60, 15.61 
—income received in advance  15.5 
—international aspects  15.54–15.62 
—lease premiums  15.20 
—losses  15.36–15.40, 8.163 
—net income  15.16–15.24 
—personal representative  15.8 
—rates of tax  15.30–15.32 
—recommendations  15.5, 15.6, 15.8, 15.9, 15.10, 15.12, 15.15, 15.18, 15.22, 15.32, 15.34, 15.35, 15.40, 15.56, 15.61 
—resettlement of trust incomes  15.12 
—residence of beneficiary  15.55, 15.56 
—residence of trust  15.58, 15.59 
—residence of trustee  15.55, 15.56 
—tax avoidance  15.30–15.32, 15.34 
—trustees, allocation of income to  15.7 
—trust income  15.16–15.24 See also Business and professional income; Estate and gift duty; Estate and gift duty, proposed integrated base of 
Trustees  See Trusts 
Turnover tax  27.25 
Undistributed profits tax  16.15, 16.62, 16.112, 16.124, 16.130, 16.148 See also Company tax; Private companies 
United Kingdom 
—business and professional income  8.187 



  ― 592 ―
—capital gains tax 
23.20, 23.25, 23.27, 23.33, 23.41, 23.43, 23.62, 23.80 
—charities  25.9, 25.15, 25.19, 25.35 
—company tax  16.12, 16.52, 16.54, 16.55, 16.56, 16.72, 16.74, 16.81, 16.82, 16.98, 16.100–16.101, 16.128, 16.131, 16.134–16.135 
—hobby farming  18.33 
—income splitting  11.12, 11.15 
—income tax, international aspects  17.13, 17.37, 17.88, 17.96, 17.101, 17.103, 17.A1 
—inflation  6.18 
—life insurance  21.134, 21.151, 21.153, 21.157 
—mining industry  19.A15–19.A17, 19.A56–19.A61 
—personal allowance, universal  14.19 
—personal income tax rate structure  14.3 
—superannuation  21.56 
—travel to and from work  7.60 
—surcharge on property income  14.6 
—unit of taxation  10.6–10.7, 10.20 
—wealth tax  26.3 
United Kingdom Royal Commission on the Taxation of Profits and Income (1955)  19.38, 25.10, 25.15 
United States 
—averaging of income  14.74, 14.76–14.77 
—business and professional income  8.67 
—capital gains tax  23.43–23.44 
—charities  25.11, 25.15, 25.19, 25.23 
—child minding expenses  7.68 
—company tax  16.12, 16.81, 16.85–16.87, 16.88, 16.90, 16.91, 16.93, 16.96, 16.113, 16.125 
—estate and gift duty  24.A11 
—hobby farming  18.33 
—income tax, international aspects  17.37, 17.48, 17.51, 17.96, 17.101, 17.102, 17.104, 17.A1 
—information, dissemination of  22.69, 22.72 
—life insurance  21.151, 21.155, 21.157 
—mining industry  19.A22–19.A24, 19.A75–19.A80, 19.A98 
—partnerships  15.53 
—personal allowance, universal  14.19 
—personal income tax rate structure  2.11, 14.3 
—superannuation  21.53, 21.57, 21.76 
—surcharge on property income  14.6 
—unit of taxation  10.8–10.9, 10.20 
—valuation of livestock  18.16, 18.17 
—wealth tax  26.3 
Unit of taxation  10.1–10.33, pp.157–158, 28.16 
—aggregation of income  pp.140–141, 28.16 
—alimony  10.30–10.32 
—and child endowment  10.25, 12.15 
—and dependent spouse  10.23, 12.9 



  ― 593 ―
—arguments for reform of 
10.14–10.19 
—avoidance of tax  10.26, p.140 
—children  10.24, 10.25, 28,16 
—compulsory family rate  10.15, 10.16, 11.4 
—concessional deduction  10.25 
—de facto spouses  10.29 
—family  10.1–10.33, pp.140–141 
—income splitting  10.4, 10.19, 10.21, 10.26, 10.29, 11.1–11.48 
—international comparisons  10.5–10.13 
—optional family  10.15, 10.17, 10.21, 10.26, 10.27–10.28, 10.33, p.140, p.158 
—personal income tax  2.11, 3.11, 10.1–10.33 
—public examination of  10.33, pp.140–141 
—rate scale  10.20–10.22, p.141 
—recommendation  10.25, 10.27, 10.33, pp.140–141 
—reservation by Committee member  pp.140–141 
—separated or divorced spouse  10.30–10.32 
—working wives  10.23 
Uraguay, wealth tax  26.3 
VAT 
—business and professional income  8.23 
—and company tax  27.45 
—and income tax  27.44, 27.49 
—and payroll tax  27.45 
—and social service payments  27.47, 27.49 
—base  27.31–27.35, 27.38, 28.29 
—exemptions  27.33, 27.38 
—food and clothing  27.20–27.21, 27.23 
—merits and defects  27.37 
—overseas systems  2.10, 27.31, 27.33–27.38 
—rate of tax  27.34, 27.42, 27.48–27.49 
—recommendations  27.39–27.51 See also Goods and services, taxation of; Tax mix 
Wasting Assets  See Mining industry; Petroleum mining, Quarrying industry 
Wealth tax  3.39, 4.31, 24.6, 26.1–26.25, 28.28 
—administration of  26.13, 26.15, 26.16, 26.17, 26.18, 26.19, 26.20, 26.22 
—and capital gains tax  26.10, 26.11, 26.25 
—and estate and gift duty  24.6, 26.11, 26.15, 26.16, 26.17, 26.23, 26.25 
—consideration of  26.10–26.24 
—exemptions  26.5, 26.6 
—overseas experience  2.10, 26.3–26.9, 26.19, 26.20, 26.21 
—property included  26.1, 26.5 
—rate of tax  26.7 
—recommendations  26.16, 26.25 
—revenue yield  26.8 



  ― 594 ―
—valuation of assets 
26.17, 26.19, 26.20, 26.21, 26.22, 26.24 
Wholesale sales tax 
—avoidance  27.A25–27.A28 
—broad-based  27.26–27.28 
—freight charges  27.A20–27.A24 
—objections and appeals  27.A12–27.A19 
—present system  1.3, 2.5, 2.10, 27.3, 27.5–27.6, 27.10, 27.13–27.14, 27.A2, 27.A7–27.A8, 27.A10, 28.29 
—recommendations  27.14, 27.40–27.41, 27.A9, 27.A24, 27.A28 
—simplicity  27.A6 
—transitional provisions  27.A3–27.A5 See also Goods and services, taxation of 
Withholding tax  17.1, 17.6, 17.53–17.62, 17.67, 17.68, 17.69, 17.71–17.76, 17.82, 17.86, 17.91, 17.94, 17.95, 17.A22, 17.A25, 22.139–22.140 
Wives  See Concessional deductions; Dependants; Unit of taxation 
Women, Canadian Royal Commission on the Status of (1970)  p.140 
Work incentive  See Incentive 
Zone allowances 
—boundaries  12.55–12.57 
—concessional deductions  7.21, 12.17, 12.19, 12.53–12.62 
—deduction or rebate?  12.58–12.59 
—qualifying period  12.61–12.62 
—recommendations  12.57, 12.59, 12.61–12.62 

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