The Acting Commissioner of Taxation has forwarded the following memorandum for advice:

Under section 15 of the Income Tax Assessment Act 1915, a number of assessments were made and issued to agents in Australia in respect of sales made in Australia, on
behalf of persons resident out of Australia.

In many cases the agents forwarded the assessment notice to their principals, some of whom paid the tax and others refused to pay. In other cases the agents simply paid the tax out of their own moneys without reference to their principals, as they were afraid that unless they did so they might lose their agencies. The agents were not personally liable to pay such tax.

Section 15 has since been repealed so that assessments for years subsequent to the year 1915-16 will not be made.

The question of refunding the tax paid by agents out of their own moneys is under the consideration of the Treasurer, but before deciding the matter your advice is required as to whether such refund can be legally made without an amendment of the Income Tax Assessment Act.

The refunds in question cannot legally be made without an amendment of the Income Tax Assessment Act or special provision being made on the Estimates.

[Vol. 15, p. 239]