FEDERAL TAXATION

Wanganui Chronicle, Volume 87, Issue 60, 13 March 1943, Page 5

FEDERAL TAXATION

BILL THREATENS CRISIS IN AUSTRALIA Recd. 6 p.m. Canberra, March 12. The Australian Commonwealth Government’s acceptance of some machinery amendments to the Income Tax Assessment Bill made by the Opposition majority in the Senate has been announced by the I* ederal Treasurer, Mr. J. B. Chifley. The principal amendment accepted will make it possible for taxpayers to claim refunds of amounts over-paid in taxation instalments. It had been the Government’s intention to freeze these over-payments at a low rate of interest until after the war. The Government, however, refused to accept the Senate reauest to delete from the Income Taxaßate Bill a clause providing for the passage of £30.000,000 in the national welfare proposals before the Tax Bill becomes operative on April 1. The Bill will not be returned to lhe Senate, and the Senate Opposition, holding a majority of two, will have to decide whether to adhere to its request or let the matter drop. A serious political crisis will develop if the Senate persists, according to observers.

The Prime Minister, Mr. J. Curtin, has indicated that the Government would be prepared to light an election on the issue. The Senate claimed that the provision was unconstitutional in a tax measu r e.

In dealing with the Rates Bill the Senate had to proceed by request since it has no constitutional power to Amend a money Bill.