Badly Explain Your Profession

[xSilverPhinx]

I learn enough to realise I know hardly anything, and study traumatic memory temporal dynamics in hopes of better understanding anxiety disorders such as PTSD and GAD (Generalised Anxiety Disorder).

[Tank]

I learn enough to realise I know hardly anything, and study traumatic memory temporal dynamics in hopes of better understanding anxiety disorders such as PTSD and GAD (Generalised Anxiety Disorder).

I thought that was a very good description.

[Bad Penny II]

I'm a bean counter, I count beans or whatever needs counting.
I got taught the rules of counting sheep, the taxation implications of double wool clips, but I've never counted any.
Maybe we could make a dollar selling advanced sheep counting techniques to insomniacs...

PREAMBLE

The following ruling issued as a result of the insertion of section 26BA into the Income Tax Assessment Act. It details the practical application of the section which relates to the assessability of proceeds received by woolgrower for double wool clips arising from advanced shearing because of drought conditions.

2. It should be noted that section 26BA as originally enacted was repealed and substituted by Act No.50 of 1966. The original section applied to the 1964-65 year only while the substituted section extended the section to the 1965-66 year. An amendment by Act No.76 of 1967 extended the application of the section indefinitely and, for the 1966-67 year et seq, to circumstances arising from fire or flood in addition to drought.
RULING

3. It may be observed at the outset that section 26BA does not apply where, because of drought, a shearing is delayed and as a consequence the assessable income of one year includes the proceeds of two wool clips. These cases are to be dealt with in line with the principles that have been adopted in the past.

4. Section 26BA also does not apply, where there has been an advanced shearing because of drought conditions, to wool shorn at the advanced shearing that is on hand at the end of the 1964-65 income by reason of the advanced shearing.

5. Shortly stated, section 26BA applies where the assessable income of a woolgrower of the 1964-65 income year includes proceeds of the sale of two wool clips - one of which results from an advanced shearing because of drought conditions. The woolgrower is entitled, under section 26BA, to elect to transfer the net profit on the sale of wool shorn at the advanced shearing (i.e., proceeds of sale less shearing and selling expenses) from the 1964-65 income year to the 1965-66 income year.

6. Sub-section (1) of section 26BA formally provides the right of election in cases in which a business of primary production is carried on by a person as a sole trader and states the circumstances in which the right of election is to be available.

7. Paragraph (a) of the sub-section confers the right of election where, during the 1964-65 income year, a taxpayer carried on a business of primary production in Australia. If the taxpayer has adopted a substituted accounting period ending on some day other than the 30th June, the 1964-65 income year of the taxpayer for this purpose will be the accounting period that is in substitution for the year ended 30th June, 1965.

8. Paragraph (b) provides that, subject to other conditions of the sub-section, the right of election is available if the assessable income of the taxpayer of the 1964-65 income year includes proceeds of the sale of wool referred to in either subparagraph (i) or subparagraph (ii).

9. Subparagraph (i) refers to the proceeds of wool that was shorn in the 1964-65 income year from sheep forming assets of the taxpayer's business. In effect, the wool referred to in this subparagraph is the wool shorn at the normal shearing during the year. If sheep shorn by a taxpayer are leased to him they should, for the purposes of section 26BA, be regarded as assets of his business.

10. Subparagraph (ii) relates to wool that was shorn in the 1963-64 income year from sheep forming assets of the taxpayer's business and was on hand at the beginning of the 1964-65 income year and brought to account at that time for taxation purposes at its cost price. If the wool is brought to account at the beginning of the income year 1964-65 at market selling value the profit on the wool attributable to the 1963-64 income year would be taxed in that year and not in the 1964-65 income year.

11. Paragraph (c) requires as a condition of the right of election that, by reason of a drought in an area in Australia in which the taxpayer carried on his business, another shearing of sheep additional to the shearing referred to in paragraph (b) has taken place. The other shearing is required to have taken place at a time earlier than the time at which, but for the drought, it would ordinarily have taken place. In other words, paragraph (c) requires an advanced shearing to have taken place by reason of drought.

12. The question whether an advanced shearing has taken place by reason of drought will, of course, arise. This question is essentially one of fact to be decided in the light of the circumstances of each case. Section 26BA will probably in practice apply in relation to woolgrowers in New South Wales and Queensland only and the lodgment of an election under the section by a woolgrower carrying on business in an area in those States declared by appropriate State authorities to be a drought area may be accepted as sufficient evidence that this condition in paragraph (c) is satisfied. In other cases, woolgrowers' claims that shearing has been advanced because of drought conditions should not be subject to exhaustive enquiries in the absence of any indication that the shearing was not advanced for this reason.

13. Paragraph (d) limits the right of election to those cases in which the assessable income of the 1964-65 income year includes proceeds of the sale of wool shorn at the advanced shearing, as well as of a shearing referred to in paragraph (b). In the case of both paragraph (b) and paragraph (d) it is not necessary that proceeds of the sale of all the wool shorn at the particular shearing be included in 1964-65 assessable income - it is sufficient if proceeds of the sale of some only of the wool is so included.

14. Where the tests of sub-section (1) are satisfied the taxpayer is entitled to elect that succeeding provisions of section 26BA will apply in relation to the profit on the sale of wool shorn at the advanced shearing, proceeds of the sale of which are included in his 1964-65 assessable income. (The profit on the sale of the wool is to be ascertained in accordance with sub-section (7)). Appropriate checks should be made to ensure that any election relates only to wool shorn at an advanced shearing.

15. Sub-section (2) will ensure that a right of election will be available to each member of a partnership if the advanced shearing by the partnership took place in circumstances that, if the partnership business had been conducted by a sole trader, that person would have been entitled to make an election under sub-section (1). In other words, the partnership is treated as a taxpayer and, on this basis, the amount of profit on the sale of wool shorn of the advanced shearing is determined. Each partner is then granted an independent right of election in respect of the part of the profit that is included in his individual interest in the net income of the partnership of the income year 1964-65. If one partner makes an election, and the others do not, the provisions of section 26BA are to be applied in determining the net income of the partnership under Division 5 as regards that partner but not as regards the others.

16. Cases involving advanced shearings may arise in which a partnership has been created, varied or dissolved during the 1964-65 income year. If a normal shearing (paragraph (b) of sub-section (1)) has been made by a partnership and, after variation of the partnership by the addition of new partners or the withdrawal of partners, an advanced shearing (paragraph (c) of sub-section (1)) is made by the reconstituted partnership, sub-section (2) should be applied on the same basis as if the new partnership had conducted the business during the whole of the income year. A corresponding approach should be taken where a business formerly conducted by a sole trader is, before the advanced shearing, transferred to a partnership of which he is a member. In the converse case where a partnership business ceases and is then run by one of the partners as a sole trader, the sole trader may make an election uner sub-section (1).

17. Sub-section (3) extends to trustees of trust estates and persons presently entitled to the income of trust estates the same principle as is adopted in sub-section (2) in relation to partners. If there are a number of beneficiaries presently entitled to income of the trust estate, each may make a separate election under paragraph (b).

18. As was noted in paragraph 22 of CITCM 810 in relation to section 36AA, problems could arise in the application of sub-section (3). Comments by Deputy Commissioners on the preliminary draft of section 26BA indicate that provisions in other sections corresponding with section 26BA(3) have operated satisfactorily in practice. If, however, in any case a satisfactory practical solution of any problems arising under the section cannot be reached with the trustee, the matter should be referred to Head Office.

19. Sub-section (4) is the operative provision. It provides that where an election is made by a taxpayer, the assessable income of the taxpayer of the income year 1964-65 is to be reduced by the profit (or the part of the profit) to which the election relates. It also provides that the assessable income of the taxpayer of the income year 1965-66 is to include the amount to which the election relates.

20. Paragraph (a) of sub-section (4) provides that, where an election is made in relation to the whole amount of the profit (e.g., in the case of a sole trader), the assessable income of the taxpayer of the 1964-65 income year is to be reduced by the amount of the profit on the sale of the wool. The paragraph also establishes a corresponding position where an election relates to part of the amount of the profit (e.g., where an election is made by a partner).

[Tank]

I'm a bean counter, I count beans or whatever needs counting.
I got taught the rules of counting sheep, the taxation implications of double wool clips, but I've never counted any.
Maybe we could make a dollar selling advanced sheep counting techniques to insomniacs...

PREAMBLE

The following ruling issued as a result of the insertion of section 26BA into the Income Tax Assessment Act. It details the practical application of the section which relates to the assessability of proceeds received by woolgrower for double wool clips arising from advanced shearing because of drought conditions.

2. It should be noted that section 26BA as originally enacted was repealed and substituted by Act No.50 of 1966. The original section applied to the 1964-65 year only while the substituted section extended the section to the 1965-66 year. An amendment by Act No.76 of 1967 extended the application of the section indefinitely and, for the 1966-67 year et seq, to circumstances arising from fire or flood in addition to drought.
RULING

3. It may be observed at the outset that section 26BA does not apply where, because of drought, a shearing is delayed and as a consequence the assessable income of one year includes the proceeds of two wool clips. These cases are to be dealt with in line with the principles that have been adopted in the past.

4. Section 26BA also does not apply, where there has been an advanced shearing because of drought conditions, to wool shorn at the advanced shearing that is on hand at the end of the 1964-65 income by reason of the advanced shearing.

5. Shortly stated, section 26BA applies where the assessable income of a woolgrower of the 1964-65 income year includes proceeds of the sale of two wool clips - one of which results from an advanced shearing because of drought conditions. The woolgrower is entitled, under section 26BA, to elect to transfer the net profit on the sale of wool shorn at the advanced shearing (i.e., proceeds of sale less shearing and selling expenses) from the 1964-65 income year to the 1965-66 income year.

6. Sub-section (1) of section 26BA formally provides the right of election in cases in which a business of primary production is carried on by a person as a sole trader and states the circumstances in which the right of election is to be available.

7. Paragraph (a) of the sub-section confers the right of election where, during the 1964-65 income year, a taxpayer carried on a business of primary production in Australia. If the taxpayer has adopted a substituted accounting period ending on some day other than the 30th June, the 1964-65 income year of the taxpayer for this purpose will be the accounting period that is in substitution for the year ended 30th June, 1965.

8. Paragraph (b) provides that, subject to other conditions of the sub-section, the right of election is available if the assessable income of the taxpayer of the 1964-65 income year includes proceeds of the sale of wool referred to in either subparagraph (i) or subparagraph (ii).

9. Subparagraph (i) refers to the proceeds of wool that was shorn in the 1964-65 income year from sheep forming assets of the taxpayer's business. In effect, the wool referred to in this subparagraph is the wool shorn at the normal shearing during the year. If sheep shorn by a taxpayer are leased to him they should, for the purposes of section 26BA, be regarded as assets of his business.

10. Subparagraph (ii) relates to wool that was shorn in the 1963-64 income year from sheep forming assets of the taxpayer's business and was on hand at the beginning of the 1964-65 income year and brought to account at that time for taxation purposes at its cost price. If the wool is brought to account at the beginning of the income year 1964-65 at market selling value the profit on the wool attributable to the 1963-64 income year would be taxed in that year and not in the 1964-65 income year.

11. Paragraph (c) requires as a condition of the right of election that, by reason of a drought in an area in Australia in which the taxpayer carried on his business, another shearing of sheep additional to the shearing referred to in paragraph (b) has taken place. The other shearing is required to have taken place at a time earlier than the time at which, but for the drought, it would ordinarily have taken place. In other words, paragraph (c) requires an advanced shearing to have taken place by reason of drought.

12. The question whether an advanced shearing has taken place by reason of drought will, of course, arise. This question is essentially one of fact to be decided in the light of the circumstances of each case. Section 26BA will probably in practice apply in relation to woolgrowers in New South Wales and Queensland only and the lodgment of an election under the section by a woolgrower carrying on business in an area in those States declared by appropriate State authorities to be a drought area may be accepted as sufficient evidence that this condition in paragraph (c) is satisfied. In other cases, woolgrowers' claims that shearing has been advanced because of drought conditions should not be subject to exhaustive enquiries in the absence of any indication that the shearing was not advanced for this reason.

13. Paragraph (d) limits the right of election to those cases in which the assessable income of the 1964-65 income year includes proceeds of the sale of wool shorn at the advanced shearing, as well as of a shearing referred to in paragraph (b). In the case of both paragraph (b) and paragraph (d) it is not necessary that proceeds of the sale of all the wool shorn at the particular shearing be included in 1964-65 assessable income - it is sufficient if proceeds of the sale of some only of the wool is so included.

14. Where the tests of sub-section (1) are satisfied the taxpayer is entitled to elect that succeeding provisions of section 26BA will apply in relation to the profit on the sale of wool shorn at the advanced shearing, proceeds of the sale of which are included in his 1964-65 assessable income. (The profit on the sale of the wool is to be ascertained in accordance with sub-section (7)). Appropriate checks should be made to ensure that any election relates only to wool shorn at an advanced shearing.

15. Sub-section (2) will ensure that a right of election will be available to each member of a partnership if the advanced shearing by the partnership took place in circumstances that, if the partnership business had been conducted by a sole trader, that person would have been entitled to make an election under sub-section (1). In other words, the partnership is treated as a taxpayer and, on this basis, the amount of profit on the sale of wool shorn of the advanced shearing is determined. Each partner is then granted an independent right of election in respect of the part of the profit that is included in his individual interest in the net income of the partnership of the income year 1964-65. If one partner makes an election, and the others do not, the provisions of section 26BA are to be applied in determining the net income of the partnership under Division 5 as regards that partner but not as regards the others.

16. Cases involving advanced shearings may arise in which a partnership has been created, varied or dissolved during the 1964-65 income year. If a normal shearing (paragraph (b) of sub-section (1)) has been made by a partnership and, after variation of the partnership by the addition of new partners or the withdrawal of partners, an advanced shearing (paragraph (c) of sub-section (1)) is made by the reconstituted partnership, sub-section (2) should be applied on the same basis as if the new partnership had conducted the business during the whole of the income year. A corresponding approach should be taken where a business formerly conducted by a sole trader is, before the advanced shearing, transferred to a partnership of which he is a member. In the converse case where a partnership business ceases and is then run by one of the partners as a sole trader, the sole trader may make an election uner sub-section (1).

17. Sub-section (3) extends to trustees of trust estates and persons presently entitled to the income of trust estates the same principle as is adopted in sub-section (2) in relation to partners. If there are a number of beneficiaries presently entitled to income of the trust estate, each may make a separate election under paragraph (b).

18. As was noted in paragraph 22 of CITCM 810 in relation to section 36AA, problems could arise in the application of sub-section (3). Comments by Deputy Commissioners on the preliminary draft of section 26BA indicate that provisions in other sections corresponding with section 26BA(3) have operated satisfactorily in practice. If, however, in any case a satisfactory practical solution of any problems arising under the section cannot be reached with the trustee, the matter should be referred to Head Office.

19. Sub-section (4) is the operative provision. It provides that where an election is made by a taxpayer, the assessable income of the taxpayer of the income year 1964-65 is to be reduced by the profit (or the part of the profit) to which the election relates. It also provides that the assessable income of the taxpayer of the income year 1965-66 is to include the amount to which the election relates.

20. Paragraph (a) of sub-section (4) provides that, where an election is made in relation to the whole amount of the profit (e.g., in the case of a sole trader), the assessable income of the taxpayer of the 1964-65 income year is to be reduced by the amount of the profit on the sale of the wool. The paragraph also establishes a corresponding position where an election relates to part of the amount of the profit (e.g., where an election is made by a partner).

You were right it wasn't worth reading 

[Davin]

I develop bugs so that I can fix them later.

[Buddy]

People trust a dumb 23 year old to help them made financial decisions for some reason.

[Magdalena]

I'm a bean counter, I count beans or whatever needs counting.
I got taught the rules of counting...

You're a Card Counter...playing Blackjack, at a Trump Casino?

People trust a dumb 23 year old to help them made financial decisions for some reason.

You're a Croupier/a Card Dealer...At the table where Bad Penny II plays Blackjack, at a Trump Casino?

[Bluenose]

I re-arrange vast quantities of ones and zeroes so my customers can look at pictures of cats

[Ecurb Noselrub]

I do stuff that other people tell me to do, so they don't get in trouble.

[jumbojak]

I tell people where to go and when they don't want to go there I tell them to go somewhere else. Then they get mad because somewhere else isn't a good place to be.

[joeactor]

People lock me in a room and I yell. Later, other people pay to hear it.

[Tank]

People lock me in a room and I yell. Later, other people pay to hear it.

[xSilverPhinx]

 

I learn enough to realise I know hardly anything, and study traumatic memory temporal dynamics in hopes of better understanding anxiety disorders such as PTSD and GAD (Generalised Anxiety Disorder).

I thought that was a very good description.

Let me try again:

I probe brains to see if a traumatic memory is still in a certain region after a period of time. And drink caffeine. Lots of it.

[Magdalena]

I probe brains to see if a traumatic memory is still in a certain region after a period of time.

You work in Area 51? 

[xSilverPhinx]

I probe brains to see if a traumatic memory is still in a certain region after a period of time.

You work in Area 51? 

No...