Income Tax Assessment Amendment Act 1980 (Cth)
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BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
(a) by omitting “payment, whether periodical or not, and however described or computed, to the extent to which it is paid” from the definition of “royalty” or “royalties” in sub-section (1) and substituting “amount paid or credited, however described or computed, and whether the payment or credit is periodical or not, to the extent to which it is paid or credited, as the case may be,”;
(b) by omitting “or” (last occurring) from paragraph (d) of the definition of “royalty” or “royalties” in sub-section (1); and
(c) by adding at the end of the definition of “royalty” or “royalties” in sub-section (1) the following word and paragraph:
“; or (f) a total or partial forbearance in respect of—
(i) the use of, or the granting of the right to use, any such property or right as is mentioned in paragraph (a) or any such equipment as is mentioned in paragraph (b);
(ii) the supply of any such knowledge or information as is mentioned in paragraph (c) or of any such assistance as is mentioned in paragraph (d); or
(iii) the use of, or the granting of the right to use, any such property as is mentioned in paragraph (e);”.
(a) by inserting after sub-paragraph (li) of paragraph (a) of sub-section (1) the following sub-paragraph:
“; (lii) the Child Accident Prevention Foundation of Australia,”; and
(b) by omitting from paragraph (b) of sub-section (6b) “30” (wherever occurring) and substituting “90”.
(a) by omitting from paragraph (b) of sub-section (6) “, or net eligible declared capital” and substituting “, net eligible declared capital or net declared petroleum capital”;
(b) by omitting from paragraph (b) of sub-section (6) “or (2a)” and substituting “, (2a) or (2b)”; and
(c) by omitting from sub-section (6) “or net eligible declared capital” (last occurring) and substituting “, net eligible declared capital or net declared petroleum capital”.
(a) by inserting before the definition of “mining company” in sub-section (1) the following definitions:
“‘eligible payments’ has the same meaning as in section 160aca;
“‘eligible petroleum company’ has the same meaning as in section 160aca;
“‘eligible petroleum deduction’, in relation to a company, means—
(a) a deduction allowed or allowable in an assessment of the income of the company under section 124adb, 124ah or 124am in respect of petroleum outgoings incurred on or after 22 August 1979; or
(b) in the case of a company that has made an election in pursuance of section 124ag in respect of expenditure on plant incurred on or after 22 August 1979, being expenditure constituting petroleum outgoings—a deduction allowed or allowable in respect of that plant under section 54 or 59,
but does not include a deduction that is attributable to expenditure that is, by virtue of sub-section (4) or (5), deemed to have been incurred out of unexpended moneys paid on shares, being section 77a moneys, section 77d moneys or section 160aca off-shore moneys;”;
(b) by inserting after the definition of “net declared capital” in sub-section (1) the following definition:
“‘net declared petroleum capital’, in relation to an eligible petroleum company, means the amount, ascertained as at the end of the year of income, that is the sum of any amounts specified in declarations duly lodged by the company under sub-section (3a), (7a) or (13a) of section 160aca (other than amounts specified in declarations lodged by the company under sub-section (7a) of that section that have been expended before or during that year of income in making eligible payments or that the Commissioner is satisfied will be expended in accordance with those declarations in making eligible payments), reduced by the sum of any amounts that have been applied by the Commissioner in accordance with sub-section (2b) of this section in the assessment of the income of the company of an earlier year of income;”;
(c) by inserting “sub-section (3), (7) or (13) of” after “in pursuance of” in the definition of “net eligible declared capital” in sub-section (1);
(d) by omitting “and expended before or during that year of income in making prescribed payments” from the definition of “net eligible declared capital” in sub-section (1) and substituting “that have been expended before or during that year of income in making prescribed payments or that the Commissioner is satisfied will be expended in accordance with those declarations in making prescribed payments”;
(e) by inserting after the definition of “petroleum mining company” in sub-section (1) the following definition:
“‘petroleum outgoings’ has the same meaning as in section 160aca;”;
(f) by inserting “or an eligible petroleum deduction” after “prescribed petroleum deduction” in the definition of “prescribed deduction” in sub-section (1);
(g) by inserting “or (5)” after “(4)” in the definition of “prescribed petroleum deduction” in sub-section (1);
(h) by omitting from the definition of “prescribed petroleum deduction” in sub-section (1) all the words after “moneys paid on shares,” and substituting “being section 77a moneys, section 77d moneys or section 160aca petroleum moneys;”;
(j) by adding at the end of sub-section (1) the following definitions:
“‘section 77a moneys’, in relation to a company, means moneys specified in a declaration or declarations duly lodged by the company under section 77a of the
Income Tax Assessment Act 1936 as amended and in force on 26 September 1969;“‘section 77d moneys’, in relation to a company, means moneys specified in a declaration or declarations duly lodged by the company under section 77d;
“‘section 160aca off-shore moneys’, in relation to a company, means moneys specified in a declaration or declarations duly lodged by the company under sub-section (3), (7) or (13) of section 160aca, other than moneys specified in a declaration or declarations under sub-section (7) of that section that the Commissioner is satisfied will be expended in accordance with that declaration or those declarations in making prescribed payments;
“‘section 160aca petroleum moneys’, in relation to a company, means moneys specified in a declaration or declarations duly lodged by the company under sub-section (3a), (7a) or (13a) of section 160aca, other than moneys specified in a declaration or declarations under sub-section (7a) of that section that the Commissioner is satisfied will be expended in accordance with that declaration or those declarations in making eligible payments.”;
(k) by inserting after sub-section (1) the following sub-sections:
“(1a) For the purposes of this section, where—
(a) there is, at the end of a year of income, an amount of net declared capital in respect of a company;
(b) apart from this section—
(i) the company is not entitled to any prescribed deductions in respect of the year of income; or
(ii) the company is entitled in respect of the year of income to prescribed deductions of an amount less than the amount of the net declared capital referred to in paragraph (a);
(c) apart from sub-sections (1b), (1c) and (2b), the company is entitled to eligible petroleum deductions in respect of the year of income; and
(d) at the end of the year of income the company does not hold unexpended moneys paid on shares, being section 77a moneys or section 77d moneys,
the amount of the prescribed deductions (if any) to which the company is, apart from this section, entitled in respect of the year of income shall be increased, and the amount of the eligible petroleum deductions to which the company is, apart from sub-sections (1b), (1c) and (2b), entitled in respect of the year of income shall be reduced, by an amount equal to so much of the amount of the eligible petroleum deductions referred to in paragraph (c) as does not exceed—
(e) in a case to which sub-paragraph (i) of paragraph (b) applies— the amount of the net declared capital referred to in paragraph (a); and
(f) in a case to which sub-paragraph (ii) of paragraph (b) applies—the amount by which the net declared capital referred to in paragraph (a) exceeds the amount of the prescribed deductions referred to in sub-paragraph (ii) of paragraph (b).
“(1b) For the purposes of this section, where—
(a) there is, at the end of a year of income, an amount of net eligible declared capital in respect of a company;
(b) apart from sub-sections (1c) and (2a)—
(i) the company is not entitled to any prescribed petroleum deductions in respect of the year of income; or
(ii) the company is entitled in respect of the year of income to prescribed petroleum deductions of an amount less than the amount of the net eligible declared capital referred to in paragraph (a);
(c) apart from sub-sections (1c) and (2b), the company is entitled in respect of the year of income to eligible petroleum deductions in respect of mining or prospecting outgoings; and
(d) at the end of the year of income the company does not hold unexpended moneys paid on shares, being section 160aca offshore moneys,
the amount of the prescribed petroleum deductions (if any) to which the company is, apart from sub-sections (1c) and (2a), entitled in respect of the year of income shall be increased, and the amount of the eligible petroleum deductions to which the company is, apart from sub-sections (1c) and (2b), entitled in respect of the year of income shall be reduced, by an amount equal to so much of the amount of the eligible petroleum deductions referred to in paragraph (c) as does not exceed—
(e) in a case to which sub-paragraph (i) of paragraph (b) applies— the amount of the net eligible declared capital referred to in paragraph (a); and
(f) in a case to which sub-paragraph (ii) of paragraph (b) applies—the amount by which the net eligible declared capital referred to in paragraph (a) exceeds the amount of the prescribed petroleum deductions referred to in sub-paragraph (ii) of paragraph (b).
“(1c) For the purposes of this section, where—
(a) there is, at the end of a year of income, an amount of net eligible declared capital in respect of a company;
(b) apart from sub-section (2a)—
(i) the company is not entitled to any prescribed petroleum deductions in respect of the year of income; or
(ii) the company is entitled in respect of the year of income to prescribed petroleum deductions of an amount less than the amount of the net eligible declared capital referred to in paragraph (a);
(c) apart from sub-section (2b), the company is entitled in respect of the year of income to eligible petroleum deductions in respect of petroleum outgoings other than mining or prospecting outgoings;
(d) a notice in writing in relation to moneys specified in a declaration lodged by the company under sub-section (3), (7) or (13) of section 160aca has been given to the company in pursuance of sub-section (6), (18), (22) or (24) of section 160aca; and
(e) the amount of the net eligible declared capital referred to in paragraph (a) exceeds the sum of—
(i) the amount of any prescribed petroleum deductions to which the company is entitled in respect of the year of income; and
(ii) the amount of any unexpended moneys paid on shares, being section 160aca off-shore moneys, held by the company at the end of the year of income,
the amount of the prescribed petroleum deductions (if any) to which the company is, apart from sub-section (2a), entitled in respect of the year of income shall be increased, and the amount of the eligible petroleum deductions to which the company is, apart from sub-section (2b), entitled in respect of the year of income shall be reduced, by an amount equal to so much of the amount of those eligible petroleum deductions as does not exceed the amount of the excess referred to in paragraph (e).”;
(m) by omitting from paragraph (c) of sub-section (2) “apart from this section” and substituting “apart from this sub-section”;
(n) by inserting in paragraph (a) of sub-section (2a) “sub-section (3), (7) or (13) of before “section 160aca”;
(o) by omitting from paragraph (c) of sub-section (2a) “apart from this section” and substituting “apart from this sub-section”;
(p) by omitting sub-section (3) and substituting the following sub-sections:
“(2b) In the assessment of the income of an eligible petroleum company—
(a) that has at any time lodged a declaration or declarations under sub-section (3a), (7a) or (13a) of section 160aca;
(b) in respect of which there is, at the end of the year of income, an amount of net declared petroleum capital; and
(c) that is, apart from this sub-section, entitled in respect of the year of income to any eligible petroleum deductions,
the commissioner shall apply the whole or a part of the amount of the net declared petroleum capital as at the end of the year of income in reduction of those eligible petroleum deductions in accordance with the following provisions—
(d) where the total of those eligible petroleum deductions exceeds the net declared petroleum capital—he shall apply the whole of the amount of the net declared petroleum capital in reduction of those eligible petroleum deductions by that amount; and
(e) where the total of those eligible petroleum deductions does not exceed the net declared petroleum capital—he shall apply so much of the amount of the net declared petroleum capital as is equal to the total of those eligible petroleum deductions in reduction of those eligible petroleum deductions to nil.
“(3) Notwithstanding that, in the assessment of the income of a petroleum exploration company, a mining company, a petroleum mining company or an eligible petroleum company, any prescribed deductions, prescribed petroleum deductions or eligible petroleum deductions have been reduced in pursuance of sub-section (2), (2a) or (2b), those deductions shall, for the purposes of the provisions of this Division other than this section and for the purposes of sections 59, 60 and 62, be deemed to have been allowed in full.”; and
(q) by omitting sub-section (4) and substituting the following sub-sections:
“(4) Where—
(a) a company, after 21 August 1979 and before the commencement of this sub-section, incurred, or, after the commencement of this sub-section, incurs, expenditure (in this sub-section referred to as the ‘relevant expenditure’) on mining or prospecting outgoings; and
(b) apart from any application of sub-section (5), the company held, immediately before the relevant expenditure was incurred, unexpended moneys paid on shares, being moneys that consisted of or included one or more of the following:
(i) section 77a moneys;
(ii) section 77d moneys;
(iii) section 160aca off-shore moneys,
then the relevant expenditure shall be deemed, for the purposes of this section, for the purposes of sub-section (20) of section 77d and for the purposes of section 160aca, to have been expended by the company in accordance with the following provisions:
(c) where the unexpended moneys consisted of or included section 77a moneys—so much of the relevant expenditure as did not exceed the amount of the section 77a moneys shall be deemed to have been expended by the company out of the section 77a moneys;
(d) where the unexpended moneys consisted of or included section 77d moneys but did not include section 77a moneys—so much of the relevant expenditure as did not exceed the amount of the section 77d moneys shall be deemed to have been expended by the company out of the section 77d moneys;
(e) where the unexpended moneys included section 77a moneys and included section 77d moneys and the amount of the relevant expenditure exceeded the amount of the section 77a moneys—so much of the excess as did not exceed the amount of the section 77d moneys shall be deemed to have been expended by the company out of the section 77d moneys;
(f) where—
(i) the unexpended moneys included section 77a moneys, section 77d moneys or section 77a moneys and section 77d moneys and also included section 160aca off-shore moneys; and
(ii) the amount of the relevant expenditure exceeded the amount of the section 77a moneys, the amount of the section 77d moneys or the sum of the amount of the section 77a moneys and the amount of the section 77d moneys, as the case may be,
so much of the excess as did not exceed the amount of the section 160aca off-shore moneys shall be deemed to have been expended by the company out of the section 160aca off-shore moneys;
(g) where the unexpended moneys consisted of or included section 160aca off-shore moneys but did not include section 77a moneys and did not include section 77d moneys—so much of the relevant expenditure as did not exceed the amount of the section 160aca off-shore moneys shall be deemed to have been expended by the company out of the section 160aca off-shore moneys.
“(5) Where—
(a) a company, after 21 August 1979 and before the commencement of this sub-section, incurred, or, after the commencement of this sub-section, incurs, expenditure (in this sub-section referred to as the ‘relevant expenditure’) on petroleum outgoings; and
(b) after taking into account any application of sub-section (4), the company held, immediately before the relevant expenditure was incurred, unexpended moneys paid on shares, being moneys that consisted of or included one or more of the following:
(i) section 77a moneys;
(ii) section 77d moneys;
(iii) section 160aca petroleum moneys,
then the relevant expenditure shall be deemed, for the purposes of this section, for the purposes of sub-section (20) of section 77d and for the purposes of section 160aca, to have been expended by the company in accordance with the following provisions:
(c) where the unexpended moneys consisted of or included section 77a moneys—so much of the relevant expenditure as did not exceed the amount of the section 77a moneys shall be deemed to have been expended by the company out of the section 77a moneys;
(d) where the unexpended moneys consisted of or included section 77d moneys but did not include section 77a moneys—so much of the relevant expenditure as did not exceed the amount of the section 77d moneys shall be deemed to have been expended by the company out of the section 77d moneys;
(e) where the unexpended moneys included section 77a moneys and included section 77d moneys and the amount of the relevant expenditure exceeded the amount of the section 77a moneys—so much of the excess as did not exceed the amount of the section 77d moneys shall be deemed to have been expended by the company out of the section 77d moneys;
(f) where—
(i) the unexpended moneys included section 77a moneys, section 77d moneys or section 77a moneys and section 77d moneys and also included section 160aca petroleum moneys; and
(ii) the amount of the relevant expenditure exceeded the amount of the section 77a moneys, the amount of the section 77d moneys or the sum of the amount of the section 77a moneys and the amount of the section 77d moneys, as the case may be,
so much of the excess as did not exceed the amount of the section 160aca petroleum moneys shall be deemed to have been expended by the company out of the section 160aca petroleum moneys;
(g) where the unexpended moneys consisted of or included section 160aca petroleum moneys but did not include section 77a moneys and did not include section 77d moneys—so much of the relevant expenditure as did not exceed the amount of the section 160aca petroleum moneys shall be deemed to have been expended by the company out of the section 160aca petroleum moneys.
“(6) For the purposes of sub-sections (4) and (5)—
(a) where a company duly lodges a declaration under sub-section (3) or (7) of section 160aca that the company has expended moneys specified in the declaration on mining or prospecting outgoings, moneys so specified in the declaration shall be taken, immediately before they were expended by the company, to have been moneys specified in a declaration duly lodged by the company under sub-section (3) or (7) of section 160aca; and
(b) where a company duly lodges a declaration under sub-section (3a) or (7a) of section 160aca that the company has expended moneys specified in the declaration on petroleum outgoings, moneys so specified in the declaration shall be taken, immediately before they were expended by the company, to have been moneys specified in a declaration duly lodged by the company under sub-section (3a) or (7a) of section 160aca.”.
(a) by inserting after the definition of “eligible operations” in sub-section (1) the following definitions:
“‘eligible payments’ means payments to eligible petroleum companies, being eligible petroleum companies of the kind mentioned in paragraph (b) of sub-section (7a), in respect of shares in those companies for the purpose of enabling the moneys paid to be expended by those eligible petroleum companies on petroleum outgoings;
“‘eligible petroleum company’ means a company that carries on, or that the Commissioner is satisfied proposes to carry on, eligible petroleum operations, being a company—
(a) that is a petroleum mining company; or
(b) that is a holder of—
(i) a current authority, licence, permit or right granted under a law of a State or a Territory to prospect, explore or mine for petroleum;
(ii) a current lease granted under a law of a State or a Territory, being a lease by virtue of which the company is entitled to prospect, explore or mine for petroleum; or
(iii) any interest in an authority, licence, permit or right of a kind mentioned in sub-paragraph (i) or in a lease of a kind mentioned in sub-paragraph (ii), being—
(a) an interest created by an instrument that has been registered in accordance with the law under which the authority, licence, permit, right or lease was granted; or
(b) if that law makes no provision for registration of such an interest—an interest that has been approved in writing by the person authorized to do so in accordance with that law;
“‘eligible petroleum operations’ means operations of any one or more of the following kinds, namely, exploration, prospecting and mining for petroleum in Australia;”;
(b) by inserting after the definition of “petroleum mining company” in sub-section (1) the following definition:
“‘petroleum outgoings’, in relation to an eligible petroleum company, means expenditure of the company that—
(a) is incurred in carrying on eligible petroleum operations; and
(b) is allowable capital expenditure within the meaning of section 124aa or is expenditure referred to in section 124ah, but does not include expenditure in the acquisition of a petroleum prospecting or mining right or petroleum prospecting or mining information;”;
(c) by inserting in sub-section (3) “, being prescribed payments paid to the company before 22 October 1979 or other moneys paid to the company before 22 August 1979,” after “moneys paid on shares”;
(d) by inserting after sub-section (3) the following sub-section:
“(3a) Subject to this section, an eligible petroleum company that has, in a year of income, received moneys paid on shares, being moneys paid to the company on or after 22 August 1979 but not being prescribed payments, may, for the purposes of sub-section (5a) and Division 10aa, before the expiration of one month after the end of that year of income or within such further time as the Commissioner allows, lodge with the Commissioner a declaration in writing signed by the public officer of the company that the company has expended or proposes to expend, before the expiration of the fourth year of income of the company next following the year of income in which those moneys were received, such of those moneys as are specified in the declaration upon petroleum outgoings.”;
(e) by omitting sub-section (4) and substituting the following sub-sections:
“(4) Where a company specifies in a declaration made under sub-section (3) or (7) part only of the moneys paid on shares in the company that the company received in a year of income and that are of the kind referred to in that sub-section, the declaration shall be deemed not to have been duly lodged unless the part of the moneys paid on shares that is specified in the declaration is specified as a percentage of the total amount of the moneys paid on shares that the company received in that year of income and that are of the kind referred to in that sub-section, and does not exclude moneys paid on particular shares or on shares included in a particular class or classes of shares or moneys paid on shares by a particular person or persons or by persons included in a particular class or classes of persons.
“(4a) Where a company specifies in a declaration made under sub-section (3a) or (7a) part only of the moneys paid on shares in the company that the company received in a year of income and that are of the kind referred to in that sub-section, the declaration shall be deemed not to have been duly lodged unless the part of the moneys paid on shares that is specified in the declaration is specified as a percentage of the total amount of the moneys paid on shares that the company received in that year of income and that are of the kind referred to in that sub-section, and does not exclude moneys paid on particular shares or on shares included in a particular class or classes of shares or moneys paid on shares by a particular person or persons or by persons included in a particular class or classes of persons.
“(4b) A reference in sub-section (4) or (4a) to moneys received by a company does not include a reference to moneys received by the company as prescribed payments or as eligible payments, as the case may be, and specified in a declaration or declarations duly lodged by another company under sub-section (7) or (7a), as the case may be.”;
(f) by inserting after sub-section (5) the following sub-section:
“(5a) Subject to this section and to section 160acb, a taxpayer is entitled, in his assessment in respect of income of a year of income, to a rebate of tax equal to 30% of so much of the moneys paid on shares by that taxpayer during that year of income to an eligible petroleum company as are specified in a declaration duly lodged by that company under sub-section (3a).”;
(g) by inserting in sub-section (6) “or by an eligible petroleum company under sub-section (3a)” after “sub-section (3)”;
(h) by inserting in sub-section (6) “or (5a), as the case may be,” after “sub-section (5)”;
(j) by inserting in sub-section (7) “, being moneys paid to the company before 22 August 1979” after “moneys paid on shares”;
(k) by inserting after sub-section (7) the following sub-section:
“(7a) Subject to this section, a company that has not, during a year of income of the company in which the company has received moneys paid on shares, being moneys paid to the company on or after 22 August 1979, carried on any business other than—
(a) operations of any one or more of the following kinds, namely, exploration, prospecting and mining in Australia for—
(i) petroleum; or
(ii) minerals other than petroleum that are obtainable by mining operations for the extraction of minerals from their natural site,
being operations carried on for the purpose of gaining or producing assessable income; or
(b) providing capital (whether by investment in shares or otherwise) to eligible petroleum companies, being eligible petroleum companies the whole of the share capital in which at the time when the capital is provided—
(i) is beneficially owned by the first-mentioned company; or
(ii) is beneficially owned by that company and by—
(a) another company that is a listed company or the whole of the share capital in which is beneficially owned by one or more listed companies; or
(b) other companies each of which is a listed company or is a company the whole of the share capital in which is beneficially owned by one, or more listed companies, may, for the purposes of sub-section (15a) and Division 10aa, before the expiration of one month after the end of that year of income or within such further time as the Commissioner allows, lodge with the Commissioner a declaration in writing signed by the public officer of the company that—
(c) the company has expended, or proposes to expend, such of those moneys as are specified in the declaration—
(i) if the company is an eligible petroleum company—on petroleum outgoings or on the making of eligible payments, or partly on petroleum outgoings and partly on the making of eligible payments; or
(ii) in any other case—on the making of eligible payments;
(d) in the case of any of the moneys specified in the declaration that have already been expended by the company on the making of eligible payments—the moneys were so expended within 2 months of the date on which the company received the moneys; and
(e) in the case of any of the moneys specified in the declaration that the company has not already expended—the company proposes to expend the moneys—
(i) in the case of moneys to be expended on petroleum outgoings—before the expiration of the fourth year of income of the company next following the year of income in which the company received the moneys; or
(ii) in the case of moneys to be expended on the making of eligible payments—within 2 months of the date on which the company received the moneys.”;
(m) by omitting sub-section (8) and substituting the following sub-section:
“(8) Where—
(a) a company has lodged a declaration under sub-section (7) or (7a); and
(b) the company has, whether before or after the declaration was lodged, expended moneys specified in the declaration in making prescribed payments or eligible payments, as the case may be,
the declaration shall be deemed not to be duly lodged in relation to the moneys referred to in paragraph (b) unless the company was a listed company at the time of the making of the payments referred to in paragraph (b).”;
(n) by inserting in sub-section (9) “, (7a)” after “(7)” (first occurring);
(o) by inserting in sub-section (9) “or eligible petroleum companies” after “petroleum mining companies”;
(p) by inserting after sub-section (12) the following sub-section:
“(12a) A company that has expended moneys in making payments to an eligible petroleum company in respect of shares in the eligible petroleum company is not entitled to lodge a declaration under sub-section (7a) in respect of those moneys unless—
(a) the eligible petroleum company has lodged a declaration under sub-section (3a) in respect of those moneys;
(b) the Commissioner has informed the first-mentioned company, in writing, that he is satisfied that the eligible petroleum company has expended or will expend those moneys in accordance with that declaration; and
(c) the first-mentioned company has not been allowed a rebate under sub-section (5a) in respect of those moneys.”;
(q) by inserting after sub-section (13) the following sub-section:
“(13a) A declaration lodged by a company under sub-section (7a) shall be deemed not to be duly lodged, in relation to moneys specified in the declaration that have not been expended by the company in accordance with the declaration before the declaration is lodged (not being moneys that the company has, by the declaration, declared that it proposes to expend on petroleum outgoings only), unless the declaration is accompanied by an undertaking in writing signed by the public officer of the company that the company will not, without the approval of the Commissioner, pay any of those moneys to an eligible petroleum company in respect of shares in that company unless, before the payment—
(a) the eligible petroleum company has lodged with the Commissioner, for the purposes of the undertaking and Division 10aa, a declaration in writing signed by the public officer of the eligible petroleum company that the eligible petroleum company proposes to expend the moneys on petroleum outgoings before the expiration of the fourth year of income of the eligible petroleum company next following the year of income in which the eligible petroleum company received the moneys; and
(b) the Commissioner has informed the first-mentioned company, in writing, that he is satisfied that the eligible petroleum company will so expend the moneys.”;
(r) by inserting after sub-section (14) the following sub-section:
“(14a) The Commissioner shall not, for the purposes of an undertaking given by a company under sub-section (13a), approve the payment of moneys by that company to an eligible petroleum company unless he is satisfied that the eligible petroleum company—
(a) will expend the moneys on petroleum outgoings before the expiration of the fourth year of income of the eligible petroleum company next following the year of income of that company in which that company received the moneys; and
(b) will lodge with the Commissioner, before the expiration of one month after the end of the year of income of the eligible petroleum company in which that company receives the moneys, a declaration under sub-section (3a) in respect of the moneys,
and, if, in respect of any part of the moneys, the eligible petroleum company fails so to lodge such a declaration, the Commissioner may inform the first-mentioned company, by notice in writing, of that failure and, upon the company being so informed, the notice shall have effect as if it were a notice given under sub-section (18a) informing the company that the Commissioner is of the opinion that the company has failed to comply, in relation to that part of the moneys, with the undertaking given by it under sub-section (13a).”;
(s) by inserting after sub-section (15) the following sub-section:
“(15a) Subject to this section and section 160acb, a taxpayer is entitled, in his assessment in respect of income of a year of income, to a rebate of tax equal to 30% of so much of the moneys paid on shares by that taxpayer during that year of income to a company as are specified in a declaration duly lodged by that company under sub-section (7a).”;
(t) by inserting after sub-section (16) the following sub-section:
“(16a) Where a company duly lodges a declaration under sub-section (7a) in respect of any moneys—
(a) a rebate in respect of those moneys is not allowable under sub-section (5a) in any assessment in respect of income of the company; and
(b) where the company has expended moneys specified in the declaration in making eligible payments, the amount of the expenditure shall not be allowable as a deduction from the assessable income of the company and shall not be taken into account for the purposes of this Act in ascertaining the amount of any profit or loss arising from sale of the shares in respect of which the eligible payments were made.”;
(u) by inserting after sub-section (17) the following sub-section:
“(17a) Where—
(a) a company has given an undertaking under sub-section (13a) in respect of any moneys;
(b) an eligible petroleum company has, for the purposes of the undertaking, duly lodged with the Commissioner in respect of those moneys a declaration of the kind referred to in paragraph (a) of that sub-section;
(c) the Commissioner has informed the first-mentioned company, in writing, that he is satisfied that the eligible petroleum company will expend those moneys on petroleum outgoings in accordance with the declaration; and
(d) the eligible petroleum company has received those moneys as moneys paid on shares,
the eligible petroleum company is not entitled to lodge a declaration under sub-section (3a) or (7a) in respect of those moneys.”;
(v) by inserting in paragraph (b) of sub-section (18) “before the expiration of the second year of income of the petroleum mining company next following the year of income in which the petroleum mining company received the prescribed payments” after “prospecting outgoings”;
(w) by inserting after sub-section (18) the following sub-section:
“(18a) If, at any time, the Commissioner—
(a) is not satisfied, as to any moneys specified in a declaration duly lodged by a company under sub-section (7a), that those moneys have been or will be expended by the company in accordance with the declaration;
(b) is not satisfied, as to any moneys specified in a declaration so lodged, being moneys expended in making eligible payments, that the moneys included in the payments have been or will be expended by the eligible petroleum company on petroleum outgoings before the expiration of the fourth year of income of the eligible petroleum company next following the year of income in which the eligible petroleum company received the eligible payments; or
(c) is of the opinion that a company by which a declaration has been so lodged has, in relation to any moneys specified in the declaration, failed to comply with the undertaking given by the company under sub-section (13a) in connection with the declaration,
the Commissioner may inform the company that lodged the declaration and, where paragraph (b) applies, the eligible petroleum company, by notice in writing given for the purposes of this sub-section, that he is not so satisfied or that he is of that opinion, as the case may be, and, upon the company or companies being so informed—
(d) the amount of any rebate allowed or allowable under sub-section (15a) by virtue of the declaration shall be reduced by an amount that bears to the amount of the rebate before being so reduced the same proportion as the amount of the moneys as to which the Commissioner is not so satisfied or is of that opinion bears to the amount of the moneys specified in the declaration; and
(e) the undertaking given under sub-section (13a) in connection with the declaration shall cease to apply to the moneys as to which the Commissioner is not so satisfied or is of that opinion.”;
(x) by inserting after sub-section (19) the following sub-section:
“(19a) Where a company has duly lodged a declaration under sub-section (3a) or sub-section (7a) in respect of any moneys, the company is not entitled to lodge a declaration in respect of any of those moneys under the other of those sub-sections except with the approval of the Commissioner and if, in accordance with such an approval of the Commissioner, the company duly lodges a further declaration in respect of any of those moneys, the declaration previously lodged by the company in respect of the moneys specified in the further declarations shall be deemed not to have been duly lodged.”;
(y) by omitting from sub-section (22) “or sub-section (15)” and substituting “, (5a), (15) or (15a)”;
(z) by omitting “or (15)” from paragraph (d) of sub-section (24) and substituting “, (5a), (15) or (15a)”;
(za) by omitting paragraph (e) of sub-section (24) and substituting the following paragraph:
“(e) in the case of a declaration duly lodged under sub-section (7) or (7a)—the undertaking given under sub-section (13) or (13a), as the case may be, in connection with the declaration shall cease to apply to the moneys as to which the Commissioner is so satisfied.”;
(zb) by omitting from sub-sections (25), (26) and (27) “or (15)” and substituting “, (5a), (15) or (15a)”; and
(zc) by adding at the end thereof the following sub-sections:
“(28) Where—
(a) a person has, after 2 October 1979, paid moneys on shares acquired by the person after that date;
(b) a rebate in respect of those moneys or in respect of part of those moneys has been allowed or would, but for this sub-section, be allowable, to the person in his assessment in respect of income of a year of income under sub-section (5a) or (15a); and
(c) the person has sold or otherwise disposed of the shares before the commencement of this sub-section or, after the commencement of this sub-section and before the expiration of the period of 12 months from the date on which the person acquired the shares, the person sells or otherwise disposes of the shares,
that rebate shall be deemed not to have been allowable or is not allowable, as the case may be.
“(29) Where—
(a) a person sells or otherwise disposes of shares after the expiration of the period of 12 months from the date on which the person acquired the shares; and
(b) the sale is made in pursuance of an option granted or an agreement entered into before the expiration of that period, whether or not that option or agreement is enforceable, or intended to be enforceable, by legal proceedings,
sub-section (28) has effect as if the shares had been sold before the expiration of that period.
“(30) References in sub-sections (28) and (29) to the sale or other disposal of shares shall be read as including references to the sale or other disposal of beneficial interests in shares.
“(31) In sub-section (29), ‘agreement’ means any agreement, arrangement or understanding, whether formal or informal and whether express or implied.”.
(a) by omitting sub-section (1) and substituting the following sub-section:
“(1) In this section—
‘eligible operations’, ‘eligible payments’, ‘eligible petroleum operations’, ‘mining or prospecting outgoings’, ‘petroleum outgoings’ and ‘prescribed payments’ have the same respective meanings as in section 160aca;
‘prescribed company’ means a company that carries on, or that the Commissioner is satisfied proposes to carry on, all or any of the following businesses:
(a) eligible operations;
(b) eligible petroleum operations;
(c) investment in shares in a company that carries on, or that the Commissioner is satisfied proposes to carry on, either or both of the businesses referred to in paragraphs (a) and (b).”;
(b) by inserting in paragraph (b) of sub-section (3) “sub-section (3) or (7) of” after “relevant company under”;
(c) by inserting in paragraph (c) of sub-section (3) “sub-section (3) or (7) of” after “relevant company under”;
(d) by inserting after sub-section (3) the following sub-sections:
“(3a) Sub-section (3) applies for the purpose of determining the amount of any rebate allowable in an assessment in respect of income of a person under sub-section (5a) or (15a) of section 160aca in like manner as sub-section (3) applies for the purpose of determining the amount of any rebate allowable in an assessment in respect of income of a person under sub-section (5) or (15) of section 160aca and, for the purpose of the application of sub-section (3) in accordance with this sub-section—
(a) a reference in sub-section (3) to sub-section (3) or (7) of section 160aca shall be read as a reference to sub-section (3a) or (7a) of section 160aca; and
(b) the reference in sub-section (3) to mining or prospecting outgoings shall be read as a reference to petroleum outgoings.
“(3b) Where—
(a) a company (in this sub-section referred to as the ‘interposed company’) has, whether before or after the commencement of this sub-section, duly lodged a declaration or declarations under sub-section (7) of section 160aca that the company had expended or proposed to expend, on the making of prescribed payments or partly on the making of prescribed payments and partly on mining or prospecting outgoings, such of the moneys, being moneys paid on shares, received by the company during a year of income (in this sub-section referred to as the ‘relevant year of income’) as were specified in the declaration or declarations;
(b) during the relevant year of income or after the end of the relevant year of income and before the expiration of the third year of income next following the relevant year of income, the interposed company sold or otherwise disposed of, to a prescribed company, a share or shares in a company (in this sub-section referred to as the ‘operating company’) that, whether during or after the end of the relevant year of income, received, as prescribed payments, moneys specified in a declaration lodged by the interposed company as mentioned in paragraph (a); and
(c) the Commissioner is not satisfied that the operating company had, on or before the date of the sale or other disposal by the interposed company of the share, or of any of the shares, referred to in paragraph (b), expended on mining or prospecting outgoings—
(i) all of the moneys received by the operating company during the relevant year of income or a preceding year of income and specified in a declaration or declarations duly lodged by the operating company under sub-section (3), (7) or (13) of section 160aca; and
(ii) all of the moneys received by the operating company from the interposed company within 2 months after the end of the relevant year of income and specified in a declaration or declarations duly lodged by the operating company under sub-section (3) or (13) of section 160aca,
then the amount of any rebate allowable, in an assessment in respect of income of a taxpayer, under sub-section (15) of section 160aca in relation to moneys paid on shares by the taxpayer to the interposed company during the relevant year of income shall be reduced by an amount calculated in accordance with the formula where—
A is the number of cents in the amount of the rebate that would be allowable to the taxpayer in respect of those moneys apart from this sub-section;
B is so much of the consideration received by the interposed company in respect of the sale or other disposal of the share or shares referred to in paragraph (b) (other than any share or shares referred to in that paragraph that was or were sold or otherwise disposed of by the interposed company after the operating company had expended on mining or prospecting outgoings all of the moneys referred to in the sub-paragraphs of paragraph (c)) as does not exceed so much of the moneys specified in the declaration or declarations lodged by the interposed company as mentioned in paragraph (a) as was expended by the interposed company on the making of prescribed payments to the operating company; and
C is the number of cents in the total amount specified in the declaration or declarations lodged by the interposed company as mentioned in paragraph (a).”;
(e) by omitting from sub-section (5) “sub-section (3)” and substituting “sub-sections (3), (3a) and (3b)”; and
(f) by omitting sub-section (6) and substituting the following sub-sections:
“(6) Where—
(a) a person has sold or otherwise disposed of a share in a company (in this sub-section referred to as the ‘relevant company’) that has, in accordance with a declaration lodged by the relevant company under sub-section (7) or (7a) of section 160aca, expended moneys paid on the share by the person in making a payment to another company for the purpose of enabling the moneys included in the payment to be expended by that other company on mining or prospecting outgoings or on petroleum outgoings, as the case may be; and
(b) the Commissioner is satisfied that an amount included in the payment has been expended by that other company on mining or prospecting outgoings or on petroleum outgoings, as the case may be,
sub-section (3) or (3a), as the case may be, of this section has effect as if that amount had been expended by the relevant company on mining or prospecting outgoings or on petroleum outgoings, as the case may be, and had been so expended by the relevant company at the time when the amount was expended by the other company.
“(6a) For the purposes of sub-section (3b), where—
(a) a company referred to in that sub-section as the operating company has, in accordance with a declaration lodged by the company under sub-section (7) of section 160aca, expended moneys received by the company in making payments to another company for the purpose of enabling the moneys included in the payment to be expended by that other company on mining or prospecting outgoings; and
(b) the Commissioner is satisfied that the moneys paid to the other company have been expended by the other company on mining or prospecting outgoings,
the moneys paid by the operating company to the other company shall be deemed to have been expended by the operating company on mining or prospecting outgoings at the time when they were expended by the other company on mining or prospecting outgoings.
“(6b) Sub-sections (3b) and (6a) apply for the purpose of determining the amount of any rebate allowable in an assessment in respect of income of a person under sub-section (15a) of section 160aca in like manner as those sub-sections apply for the purpose of determining the amount of any rebate allowable in an assessment in respect of income of a person under sub-section (15) of section 160aca and, for the purpose of the application of sub-sections (3b) and (6a) in accordance with this sub-section—
(a) a reference in sub-section (3b) to sub-section (3) of section 160aca shall be read as a reference to sub-section (3a) of section 160aca;
(b) a reference in sub-section (3b) or (6a) to sub-section (7) of section 160aca shall be read as a reference to sub-section (7a) of section 160aca;
(c) a reference in sub-section (3b) to sub-section (13) of section 160aca shall be read as a reference to sub-section (13a) of section 160aca;
(d) a reference in sub-section (3b) or (6a) to mining or prospecting outgoings shall be read as a reference to petroleum outgoings;
(e) a reference in sub-section (3b) to prescribed payments shall be read as a reference to eligible payments; and
(f) the reference in paragraph (b) of sub-section (3b) to the third year of income next following the year of income referred to in that sub-section as the relevant year of income shall be read as a reference to the fifth year of income next following the year of income so referred to.”.
(a) by inserting “sub-section (3), (7) or (13) of” after “declaration under”; and
(b) by adding at the end thereof the following sub-section:
“(2) Where a company duly lodges a declaration under sub-section (3a), (7a) or (13a) of section 160aca, any expenditure incurred by the company in the year of income in which the moneys to which the declaration relates were received by the company, or in either of the next two succeeding years of income, on a unit of plant, being expenditure referred to in section 124ah that constitutes petroleum outgoings as defined by section 160aca, shall not be taken into account in determining whether the company is entitled to a deduction under section 82ab notwithstanding any election made by the company under section 124ag in respect of that expenditure.”.
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