Income Tax Assessment Amendment Act 1983 (Cth)
Section
1. Short title, &c.
2. Commencement
3. Exemption of certain film income
4. Certain items of assessable income
5. Certain film proceeds included in assessable income
6. Interpretation
7. Calculation of taxable income
8. Divisible amounts of assessable income
9. Divisible deductions
10. Special depreciation on property used for storage of grain, hay or fodder
11. Limit on cost price for depreciation of motor vehicle
12. Special depreciation on plant
13. Special depreciation on property used for primary production
14. Special depreciation on property used for basic iron or steel production
15. Insertion of new section—
57al. Special depreciation on property acquired or constructed after 19 July 1982
16. Film losses
17. Beneficiary not under any legal disability
18. Liability of trustee
19. Insertion of new section—
98a. Non-resident beneficiaries assessable in respect of certain income
20. Purchase of mining or prospecting right or information
21. Deduction of residual previous capital expenditure
22. Deduction of residual capital expenditure
23. Residual (1 May 1981 to 18 August 1981) capital expenditure
24. Deduction of residual (1 May 1981 to 18 August 1981) capital expenditure
TABLE OF PROVISIONS—
Section
25. Residual (19 August 1981 to 19 July 1982) capital expenditure
26. Deduction of residual (19 August 1981 to 19 July 1982) capital expenditure
27. Insertion of new section—
122dg. Deduction of allowable (post 19 July 1982) capital expenditure
28. Deductions not allowable under other provisions
29. Election in relation to expenditure incurred after 17 August 1976
30. Purchase of prospecting or mining rights or information
31. Deduction of residual previous capital expenditure
32. Deduction of residual capital expenditure
33. Deduction of residual (1 May 1981 to 18 August 1981) capital expenditure
34. Residual (19 August 1981 to 19 July 1982) capital expenditure
35. Deduction of residual (19 August 1981 to 19 July 1982) capital expenditure
36. Insertion of new section—
124adg. Deduction of allowable (post 19 July 1982) capital expenditure
37. Deduction of unrecouped previous capital expenditure
38. Exploration and prospecting expenditure
39. Double deductions
40. Reduction of allowable deductions where certain declarations lodged
41. Definitions
42. Application of Division where deduction allowable under section 124zaf or 124zafa
43. Disposal of unit of industrial property where deduction allowable under section 124zaf or 124zafa
44. Interpretation
45. Insertion of new sections—
124zada. Declarations
124zadb. Notification regarding non-completion of film
46. Election that Division not apply
47. Deductions for capital expenditure under pre 13 January 1983 contracts
48. Insertion of new section—
124zafa. Deductions for capital expenditure under post 12 January 1983 contracts
49. Expenditure of contributions
50. Insertion of new section—
124zaga. Satisfaction of Commissioner as to the future application of certain provisions
51. Allocation of contributions expended
52. Variation of contracts
53. Limitation of deductibility of revenue expenses
54. Insertion of new Division—
124zf. Interpretation
124zg. Qualifying expenditure
124zh. Deductions in respect of qualifying expenditure
124zj. Reduction of deductions
124zk. Deduction in respect of destruction of building
55. Rebate of tax for certain primary producers
56. Amount of instalment of tax
57. Estimated income tax
58. Interpretation
59. Employer not accounting for deductions
60. Interpretation
61. Amount of provisional tax
62. Provisional tax on estimated income
63. Additional tax where income underestimated
64. Reduction of provisional tax
65. Insertion of new Division—
221yha. Interpretation
221yhb. Provision of information to Commissioner
TABLE OF PROVISIONS
Section
221yhc. Duties of payees
221yhd. Duties of eligible paying authorities
221yhe. Deduction forms to be forwarded to Commissioner
221yhf. Credits in respect of deductions from prescribed payments
221yhg. Application of credits
221yhh. Failure to make deductions from prescribed payments
221yhj. Failure to pay amounts deducted to Commissioner
221yhk. Failure to furnish deduction form, &c.
221yhl. Remission of certain amounts
221yhm. Persons discharged from liability in respect of deductions
221yhn. Recovery of amounts by Commissioner
221yho. Payments into and out of Consolidated Revenue Fund
221yhp. Deduction variation certificates
221yhq. Deduction exemption certificates
221yhr. Reporting exemption certificates
221yhs. Revocation of certificates
221yht. Notification and review of decisions
221yhu. Offences
221yhv. Time for prosecutions
221yhw. Joinder of charges under this Division
221yhx. Power of Commissioner to obtain information
221yhy. Declarations
221yhz. Special provisions relating to partnerships
66. Insertion of new Division—
221zm. Interpretation
221zn. Deductions from certain withdrawals from film accounts
221zo. Liability of person who fails to make deduction
221zp. Liability of person who fails to remit deduction
221zq. Remission of certain amounts
221zr. Recovery of amounts by Commissioner
221zs. Entitlement to credits in respect of deductions
221zt. Application of credits
221zu. Persons discharged from liability in respect of deductions from refunds
221zv. Payments into and out of Consolidated Revenue Fund
221zw. Time for prosecutions
221zx. Joinder of charges under this Division
67. Application of trust amendments
68. Amendment of assessments
[
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
“(jb) the amount of any interest payable to the taxpayer under the
Taxation (Interest on Overpayments )Act 1983, being interest that has been paid to the taxpayer or applied by the Commissioner in discharge or partial discharge of a liability of the taxpayer to the Commonwealth;”.
(a) by omitting from paragraph (1) (a) “or 57ak” and substituting “, 57ak or 57al”;
(b) by inserting in paragraph (1) (a) “or 124zafa” after “124zaf”;
(c) by omitting from paragraph (1) (a) “or Division 10c (other than section 124ze)” and substituting “, Division 10c (other than section 124ze) or Division 10d (other than section 124zk)”;
(d) by inserting in paragraph (2) (xa) “or 124zafa” after “124zaf”; and
(e) by inserting in paragraph (2) (y) “or 10d” after “10c”.
(a) by omitting paragraph (2) (a) and substituting the following paragraph:
“(a) the depreciation allowable to a taxpayer under this Act in relation to a year of income in respect of a unit of property to which this section applies in relation to the year of income is—
(i) in the case of a unit of property to which sub-paragraph (ii) does not apply—20% of the cost of the unit; or
(ii) in the case of a unit of property that—
(A) was acquired by the taxpayer under a contract entered into after 19 July 1982; or
(B) was constructed by the taxpayer and commenced to be constructed after 19 July 1982,
33⅓% of the cost of the unit;”;
(b) by omitting paragraph (2) (c) and substituting the following paragraph:
“(c) no depreciation is allowable to the taxpayer in respect of that unit in relation to any year of income after—
(i) in the case of a unit of property to which sub-paragraph (a) (i) applies—the fourth year of income succeeding the relevant year of income; or
(ii) in the case of a unit of property to which sub-paragraph (a) (ii) applies—the second year of income succeeding the relevant year of income.”; and
(c) by adding at the end thereof the following sub-sections:
“(4) Where the Commissioner is satisfied that—
(a) on or before 19 July 1982 a taxpayer—
(i) owned a unit of property;
(ii) entered into a contract or arrangement for the acquisition of a unit of property; or
(iii) commenced the construction of a unit of property,
(which unit of property is, in each case, referred to in this sub-section as the ‘original unit’);
(b) after 19 July 1982 and at a time when—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer was the owner of the original unit;
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer was a party to the contract or arrangement or was, by reason of the original unit having been acquired in pursuance of that contract or arrangement, the owner of the original unit; or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer had yet to complete the construction of the original unit or was, by reason of the original unit having been constructed by the taxpayer, the owner of the original unit,
the taxpayer entered into a scheme in pursuance of which—
(iv) the taxpayer became the owner of the original unit (otherwise than in pursuance of the contract or arrangement referred to in sub-paragraph (a) (ii) or, in a case to which sub-paragraph (a) (iii) applies, by reason of the unit having been constructed by the taxpayer); or
(v) the taxpayer became the lessee or end-user of the original unit;
(c) depreciation ascertained in accordance with sub-paragraph (2) (a) (ii) in relation to the original unit would, but for this sub-section, be allowable to—
(i) in a case to which sub-paragraph (b) (iv) applies—the taxpayer; or
(ii) in a case to which sub-paragraph (b) (v) applies—a person who was the owner of the original unit at any time when the taxpayer was the lessee or end-user, as the case may be, of the original unit; and
(d) in a case to which sub-paragraph (b) (iv) applies—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of obtaining a deduction for depreciation ascertained in accordance with sub-paragraph (2) (a) (ii),
the Commissioner may apply this Division for the purposes of ascertaining the depreciation allowable in relation to the original unit in relation to the taxpayer or a person referred to in sub-paragraph (c) (ii), as the case may be, as if—
(e) in a case to which sub-paragraph (b) (iv) applies—the taxpayer became the owner of the original unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii); or
(f) in a case to which sub-paragraph (b) (v) applies—the person referred to in sub-paragraph (c) (ii) became the owner of the
original unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii).
“(5) Where the Commissioner is satisfied that—
(a) on or before 19 July 1982 a taxpayer—
(i) owned a unit of property;
(ii) entered into a contract or arrangement for the acquisition of a unit of property; or
(iii) commenced the construction of a unit of property,
(which unit of property is, in each case, referred to in this sub-section as the ‘original unit’);
(b) after 19 July 1982 and at a time when—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer was the owner of the original unit;
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer was a party to the contract or arrangement or was, by reason of the original unit having been acquired in pursuance of that contract or arrangement, the owner of the original unit; or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer had yet to complete the construction of the original unit or was, by reason of the original unit having been constructed by the taxpayer, the owner of the original unit,
the taxpayer entered into a scheme in pursuance of which—
(iv) the taxpayer became the owner; or
(v) the taxpayer became the lessee or end-user,
of a unit of property (in this sub-section referred to as the ‘substituted unit’) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit;
(c) depreciation ascertained in accordance with sub-paragraph (2) (a) (ii) in relation to the substituted unit would, but for this sub-section, be allowable to—
(i) in a case to which sub-paragraph (b) (iv) applies—the taxpayer; or
(ii) in a case to which sub-paragraph (b) (v) applies—a person who was the owner of the substituted unit at any time when the taxpayer was the lessee or end-user, as the case may be, of the substituted unit; and
(d) any of the following conditions is satisfied, namely:
(i) in a case to which sub-paragraphs (b) (ii) and (iv) or (b) (iii) and (iv) apply, where the taxpayer was not the owner of the original unit at the time when he entered into the scheme—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of obtaining a deduction for depreciation ascertained in accordance with sub-paragraph (2) (a) (ii);
(ii) in a case to which sub-paragraphs (b) (ii) and (v) or (b) (iii) and (v) apply, where the taxpayer was not the owner of the original unit at the time when he entered into the scheme—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of benefiting, directly or indirectly, from the application of sub-paragraph (2) (a) (ii) in relation to the substituted unit in relation to a person referred to in sub-paragraph (c) (ii); or
(iii) in a case to which—
(a) sub-paragraphs (b) (ii) and (iv), (b) (ii) and (v), (b) (iii) and (iv) or (b) (iii) and (v) apply, where the taxpayer was the owner of the original unit at the time when he entered into the scheme; or
(b) sub-paragraphs (b) (i) and (iv) or (b) (i) and (v) apply,
it could be reasonably expected that the taxpayer would not have entered into the scheme but for the operation of sub-section (4),
the Commissioner may apply this Division for the purposes of ascertaining the depreciation allowable in relation to the substituted
unit in relation to the taxpayer or a person referred to in sub-paragraph (c) (ii), as the case may be, as if—
(e) in a case to which sub-paragraph (b) (iv) applies—the taxpayer became the owner of the substituted unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition “of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii); or
(f) in a case to which sub-paragraph (b) (v) applies—the person referred to in sub-paragraph (c) (ii) became the owner of the substituted unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii).
“(6) For the purposes of sub-sections (4) and (5), a taxpayer shall be taken to be the end-user of a unit of property if, under a scheme to which the taxpayer is a party—
(a) at a time when the unit of property is owned by a person other than the taxpayer, the unit is, or is to be, used (whether or not by that person), wholly or principally, in connection with the provision of services to the taxpayer; and
(b) the taxpayer controls, or is able to control, directly or indirectly, the use of the property in or in connection with the provision of the services.
“(7) In this section—
‘lease’, in relation to a unit of property, includes—
(a) any scheme under which a right to use the unit of property is granted by the owner to another person; and
(b) any scheme under which a right to use the unit of property, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person,
but does not include a hire-purchase agreement;
‘person’ includes a partnership and a person in the capacity of the trustee of a trust estate;
‘scheme’ includes—
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.
“(8) A reference in sub-section (4), (5), (6) or (7) to a unit of property shall be read as including a reference to a portion of a unit of property.
“(9) In this section, a reference to the acquisition by a taxpayer of property shall be read as including a reference to the construction of the property for the taxpayer by another person or persons.”.
(a) by omitting paragraph (3) (a) and substituting the following paragraph:
“(a) the depreciation allowable to a taxpayer under this Act in relation to a year of income in respect of a unit of property to which this section applies in relation to the year of income is—
(i) in the case of a unit of property to which sub-paragraph (ii) does not apply—20% of the cost of the unit; or
(ii) in the case of a unit of property that—
(A) was acquired by the taxpayer under a contract entered into after 19 July 1982; or
(B) was constructed by the taxpayer and commenced to be constructed after 19 July 1982,
33% of the cost of the unit;”;
(b) by omitting paragraph (3) (c) and substituting the following paragraph:
“(c) no depreciation calculated in accordance with this section is allowable to the taxpayer in respect of that unit in relation to any year of income after—
(i) in the case of a unit of property to which sub-paragraph (a) (i) applies—the fourth year of income succeeding the relevant year of income; or
(ii) in the case of a unit of property to which sub-paragraph (a) (ii) applies—the second year of income succeeding the relevant year of income.”;
(c) by inserting after sub-section (8) the following sub-sections:
“(8a) Where the Commissioner is satisfied that—
(a) on or before 19 July 1982 a taxpayer—
(i) owned a unit of property;
(ii) entered into a contract or arrangement for the acquisition of a unit of property; or
(iii) commenced the construction of a unit of property, (which unit of property is, in each case, referred to in this sub-section as the ‘original unit’);
(b) after 19 July 1982 and at a time when—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer was the owner of the original unit;
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer was a party to the contract or arrangement or was, by reason of the original unit having been acquired in pursuance of that contract or arrangement, the owner of the original unit; or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer had yet to complete the construction of the original unit or was, by reason of the original unit having been constructed by the taxpayer, the owner of the original unit,
the taxpayer entered into a scheme in pursuance of which—
(iv) the taxpayer became the owner of the original unit (otherwise than in pursuance of the contract or arrangement referred to in sub-paragraph (a) (ii) or, in a case to which sub-paragraph (a) (iii) applies, by reason of the unit having been constructed by the taxpayer); or
(v) the taxpayer became the lessee or end-user of the original unit;
(c) depreciation ascertained in accordance with sub-paragraph
(3) (a) (ii) in relation to the original unit would, but for this sub-section, be allowable to—
(i) in a case to which sub-paragraph (b) (iv) applies—the taxpayer; or
(ii) in a case to which sub-paragraph (b) (v) applies—a person who was the owner of the original unit at any time when the taxpayer was the lessee or end-user, as the case may be, of the original unit; and
(d) in a case to which sub-paragraph (b) (iv) applies—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of obtaining a deduction for depreciation ascertained in accordance with sub-paragraph (3) (a) (ii),
the Commissioner may apply this Division for the purposes of ascertaining the depreciation allowable in relation to the original unit in relation to the taxpayer or a person referred to in sub-paragraph (c) (ii), as the case may be, as if—
(e) in a case to which sub-paragraph (b) (iv) applies—the taxpayer became the owner of the original unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii); or
(f) in a case to which sub-paragraph (b) (v) applies—the person referred to in sub-paragraph (c) (ii) became the owner of the
original unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii).
“(8b) Where the Commissioner is satisfied that—
(a) on or before 19 July 1982 a taxpayer—
(i) owned a unit of property;
(ii) entered into a contract or arrangement for the acquisition of a unit of property; or
(iii) commenced the construction of a unit of property,
(which unit of property is, in each case, referred to in this sub-section as the ‘original unit’);
(b) after 19 July 1982 and at a time when—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer was the owner of the original unit;
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer was a party to the contract or arrangement or was, by reason of the original unit having been acquired in pursuance of that contract or arrangement, the owner of the original unit; or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer had yet to complete the construction of the original unit or was, by reason of the original unit having been constructed by the taxpayer, the owner of the original unit,
the taxpayer entered into a scheme in pursuance of which—
(iv) the taxpayer became the owner; or
(v) the taxpayer became the lessee or end-user,
of a unit of property (in this sub-section referred to as the ‘substituted unit’) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit;
(c) depreciation ascertained in accordance with sub-paragraph (3) (a) (ii) in relation to the substituted unit would, but for this sub-section, be allowable to—
(i) in a case to which sub-paragraph (b) (iv) applies—the taxpayer; or
(ii) in a case to which sub-paragraph (b) (v) applies—a person who was the owner of the substituted unit at any time when the taxpayer was the lessee or end-user, as the case may be, of the substituted unit; and
(d) any of the following conditions is satisfied, namely:
(i) in a case to which sub-paragraphs (b) (ii) and (iv) or (b) (iii) and (iv) apply, where the taxpayer was not the owner of the original unit at the time when he entered into the scheme—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of obtaining a deduction for depreciation ascertained in accordance with sub-paragraph (3) (a) (ii);
(ii) in a case to which sub-paragraphs (b) (ii) and (v) or (b) (iii) and (v) apply, where the taxpayer was not the owner of the original unit at the time when he entered into the scheme—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of benefiting, directly or indirectly, from the application of sub-paragraph (3) (a) (ii) in relation to the substituted unit in relation to a person referred to in sub-paragraph (c) (ii); or
(iii) in a case to which—
(A) sub-paragraphs (b) (ii) and (iv), (b) (ii) and (v), (b) (iii) and (iv) or (b) (iii) and (v) apply, where the taxpayer was the owner of the original unit at the time when he entered into the scheme; or
(B) sub-paragraphs (b) (i) and (iv) or (b) (i) and (v) apply,
it could be reasonably expected that the taxpayer would not have entered into the scheme but for the operation of sub-section (8a),
the Commissioner may apply this Division for the purposes of ascertaining the depreciation allowable in relation to the substituted
unit in relation to the taxpayer or a person referred to in sub-paragraph (c) (ii), as the case may be, as if—
(e) in a case to which sub-paragraph (b) (iv) applies—the taxpayer became the owner of the substituted unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies— the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii); or
(f) in a case to which sub-paragraph (b) (v) applies—the person referred to in sub-paragraph (c) (ii) became the owner of the substituted unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii).
“(8c) For the purposes of sub-sections (8a) and (8b), a taxpayer shall be taken to be the end-user of a unit of property if, under a scheme to which the taxpayer is a party—
(a) at a time when the unit of property is owned by a person other than the taxpayer, the unit is, or is to be, used (whether or not by that person), wholly or principally, in connection with—
(i) the production of goods for the taxpayer;
(ii) the supply of goods to the taxpayer; or
(iii) the provision of services to the taxpayer; and
(b) the taxpayer controls, or is able to control, directly or indirectly, the use of the property in or in connection with the production of the goods, the supply of the goods or the provision of the services, as the case may be.
“(8d) In this section—
‘goods’ includes whatever is capable of being owned or used;
‘lease’, in relation to a unit of property, includes—
(a) any scheme under which a right to use the unit of property is granted by the owner to another person; and
(b) any scheme under which a right to use the unit of property, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person,
but does not include a hire-purchase agreement;
‘person’ includes a partnership and a person in the capacity of the
trustee of a trust estate;
‘scheme’ includes—
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.”; and
(d) by omitting from sub-section (9) “sub-sections (6), (7) and (8)” and substituting “sub-section (6), (7), (8), (8a), (8b), (8c) or (8d)”.
“57al. (1) Subject to sub-sections (2) and (7), this section applies to a unit of property in relation to a taxpayer in relation to a year of income if—
(a) depreciation is allowable to the taxpayer under section 54 in respect of the unit of property in relation to the year of income; and
(b) the unit of property—
(i) was acquired by the taxpayer under a contract entered into after 19 July 1982; or
(ii) was constructed by the taxpayer and commenced to be constructed after 19 July 1982.
“(2) This section does not apply in relation to a unit of property that is—
(a) a motor vehicle (including a vehicle known as a four-wheel drive vehicle) that is—
(i) a motor car, station wagon, panel van, utility truck or similar vehicle;
(ii) a motor cycle or similar vehicle; or
(iii) any other road vehicle designed to carry a load of less than 1 tonne or fewer than 9 passengers;
(b) an article being, or being a reproduction of, a painting, sculpture, drawing, engraving or photograph, or an article of a description, or having a use, similar to that of any of those articles;
(c) a structural improvement;
(d) a unit of property in respect of which section 57ah or 57aj applies; or
(e) a unit of property in respect of which, but for this section, the annual depreciation fixed under section 55, as increased by any amount that would, but for this section, be applicable under section 57ag, would be, or exceed, 33%.
“(3) Notwithstanding anything contained in sections 55, 56, 56a and 57, but subject to sub-sections 56 (2) and (3), the depreciation allowable under this Act in respect of a unit of property to which this section applies shall be ascertained in accordance with this section.
“(4) The depreciation allowable to a taxpayer under this Act in relation to a year of income in respect of a unit of property to which this section applies in relation to the year of income is—
(a) where, but for this section, the annual depreciation fixed under sub-section 55 (1), as increased by any amount that would, but for this section, be applicable under section 57ag, would be 20% or less—20% of the cost of the unit; and
(b) in any other case—331/3% of the cost of the unit.
“(5) Sub-sections 56 (1a), (1b), (1c) and (4) apply for the purposes of this section in like manner as those sub-sections apply for the purposes of section 56.
“(6) Sub-sections 122n (2), 123e (2) and 124an (2) apply in relation to a unit of property to which this section applies as if a reference in those sub-sections to section 56 included a reference to this section.
“(7) A taxpayer may elect, for the purpose of the calculation of depreciation allowable as a deduction to him under this Act, that this section shall not apply in relation to a unit of property to which this section would otherwise apply and, where an election is so made, this section does not apply in relation to that unit of property in relation to the taxpayer in relation to any year of income.
“(8) An election referred to in sub-section (7) in respect of a unit of property—
(a) shall be exercised by notice in writing to the Commissioner; and
(b) shall be lodged with the Commissioner on or before the date of lodgment of the return of income of the taxpayer for the first year of income in which depreciation calculated in accordance with this section would, but for sub-section (7), be allowable to the taxpayer in respect of the unit of property, or before such later date as the Commissioner allows.
“(9) Where the Commissioner is satisfied that—
(a) on or before 19 July 1982 a taxpayer—
(i) owned a unit of property;
(ii) entered into a contract or arrangement for the acquisition of a unit of property; or
(iii) commenced the construction of a unit of property,
(which unit of property is, in each case, referred to in this sub-section as the ‘original unit’);
(b) after 19 July 1982 and at a time when—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer was the owner of the original unit;
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer was a party to the contract or arrangement or was, by reason of the original unit having been acquired in pursuance of that contract or arrangement, the owner of the original unit; or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer had yet to complete the construction of the original unit or was, by reason of the original unit having been constructed by the taxpayer, the owner of the original unit,
the taxpayer entered into a scheme in pursuance of which—
(iv) the taxpayer became the owner of the original unit (otherwise than in pursuance of the contract or arrangement referred to in sub-paragraph (a) (ii) or, in a case to which sub-paragraph (a) (iii) applies, by reason of the unit having been constructed by the taxpayer); or
(v) the taxpayer became the lessee or end-user of the original unit;
(c) depreciation ascertained in accordance with this section in relation to the original unit would, but for this sub-section, be allowable to—
(i) in a case to which sub-paragraph (b) (iv) applies—the taxpayer; or
(ii) in a case to which sub-paragraph (b) (v) applies—a person who was the owner of the original unit at any time when the taxpayer was the lessee or end-user, as the case may be, of the original unit; and
(d) in a case to which sub-paragraph (b) (iv) applies—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of obtaining a deduction for depreciation ascertained in accordance with this section,
the Commissioner may apply this Division for the purposes of ascertaining the depreciation allowable in relation to the original unit in relation to the taxpayer or a person referred to in sub-paragraph (c) (ii), as the case may be, as if—
(e) in a case to which sub-paragraph (b) (iv) applies—the taxpayer became the owner of the original unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii);or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii); or
(f) in a case to which sub-paragraph (b) (v) applies—the person referred to in sub-paragraph (c) (ii) became the owner of the original unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii).
“(10) Where the Commissioner is satisfied that—
(a) on or before 19 July 1982 a taxpayer —
(i) owned a unit of property;
(ii) entered into a contract or arrangement for the acquisition of a unit of property; or
(iii) commenced the construction of a unit of property,
(which unit of property is, in each case, referred to in this sub-section as the ‘original unit’);
(b) after 19 July 1982 and at a time when—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer was the owner of the original unit;
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer was a party to the contract or arrangement or was, by reason of the original unit having been acquired in pursuance of that contract or arrangement, the owner of the original unit; or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer had yet to complete the construction of the original unit or was, by reason of the original unit having been constructed by the taxpayer, the owner of the original unit,
the taxpayer entered into a scheme in pursuance of which—
(iv) the taxpayer became the owner; or
(v) the taxpayer became the lessee or end-user,
of a unit of property (in this sub-section referred to as the ‘substituted unit’) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit;
(c) depreciation ascertained in accordance with this section in relation to the substituted unit would, but for this sub-section, be allowable to—
(i) in a case to which sub-paragraph (b) (iv) applies—the taxpayer; or
(ii) in a case to which sub-paragraph (b) (v) applies—a person who was the owner of the substituted unit at any time when the taxpayer was the lessee or end-user, as the case may be, of the substituted unit; and
(d) any of the following conditions is satisfied, namely:
(i) in a case to which sub-paragraphs (b) (ii) and (iv) or (b) (iii) and (iv) apply, where the taxpayer was not the owner of the original unit at the time when he entered into the scheme—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of obtaining a deduction for depreciation ascertained in accordance with this section;
(ii) in a case to which sub-paragraphs (b) (ii) and (v) or (b) (iii) and (v) apply, where the taxpayer was not the owner of the original unit at the time when he entered into the scheme—the taxpayer entered into the scheme for the purpose, or for purposes that included the purpose, of benefiting, directly or indirectly, from the application of this section in relation to the substituted unit in relation to a person referred to in sub-paragraph (c) (ii); or
(iii) in a case to which—
(a) sub-paragraphs (b) (ii) and (iv), (b) (ii) and (v), (b) (iii) and (iv) or (b) (iii) and (v) apply, where the
taxpayer was the owner of the original unit at the time when he entered into the scheme; or
(b) sub-paragraphs (b) (i) and (iv) or (b) (i) and (v) apply,
it could be reasonably expected that the taxpayer would not have entered into the scheme but for the operation of sub-section (9),
the Commissioner may apply this Division for the purposes of ascertaining the depreciation allowable in relation to the substituted unit in relation to the taxpayer or a person referred to in sub-paragraph (c) (ii), as the case may be, as if—
(e) in a case to which sub-paragraph (b) (iv) applies—the taxpayer became the owner of the substituted unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii); or
(f) in a case to which sub-paragraph (b) (v) applies—the person referred to in sub-paragraph (c) (ii) became the owner of the substituted unit in pursuance of a contract entered into on the date on which—
(i) in a case to which sub-paragraph (a) (i) applies—the taxpayer entered into the contract or arrangement for the acquisition of the original unit or commenced the construction of the original unit, as the case may be, in pursuance of which the taxpayer became the owner of the original unit for the purposes of sub-paragraph (a) (i);
(ii) in a case to which sub-paragraph (a) (ii) applies—the taxpayer entered into the contract or arrangement referred to in sub-paragraph (a) (ii); or
(iii) in a case to which sub-paragraph (a) (iii) applies—the taxpayer commenced the construction referred to in sub-paragraph (a) (iii).
“(11) For the purposes of sub-sections (9) and (10), a taxpayer shall be taken to be the end-user of a unit of property if, under a scheme to which the taxpayer is a party—
(a) at a time when the unit of property is owned by a person other than the taxpayer, the unit is, or is to be, used (whether or not by that person), wholly or principally, in connection with—
(i) the production of goods for the taxpayer;
(ii) the supply of goods to the taxpayer; or
(iii) the provision of services to the taxpayer; and
(b) the taxpayer controls, or is able to control, directly or indirectly, the use of the property in or in connection with the production of the goods, the supply of the goods or the provision of the services, as the case may be.
“(12) In this section—
‘goods’ includes whatever is capable of being owned or used;
‘lease’, in relation to a unit of property, includes—
(a) any scheme under which a right to use the unit of property is granted by the owner to another person; and
(b) any scheme under which a right to use the unit of property, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person,
but does not include a hire-purchase agreement;
‘person’ includes a partnership and a person in the capacity of the trustee of a trust estate;
‘scheme’ includes—
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.
“(13) A reference in sub-section (9), (10), (11) or (12) to a unit of property shall be read as including a reference to a portion of a unit of property.
“(14) A reference in this section to the acquisition by a taxpayer of property shall be read as including a reference to the construction of the property for the taxpayer by another person or persons.”.
(a) the references in paragraphs 57al (9) (a) and (10) (a) of that Act to 19 July 1982 shall be read as references to 18 August 1981; and
(b) the references in paragraphs 57al (9) (b) and (10) (b) of that Act to 19 July 1982 shall be read as references to 18 May 1983.
“(2) A reference in this section to income of a trust estate to which a beneficiary is presently entitled shall be read as not including a reference to income of a trust estate—
(a) to which a beneficiary is deemed to be presently entitled by virtue of the operation of sub-section 95a (2) where the beneficiary—
(i) is a natural person;
(ii) is a resident at the end of the year of income;
(iii) is not, in respect of that income, a beneficiary in the capacity of a trustee of another trust estate; and
(iv) is not a beneficiary to whom sub-section 97a (1) or (1a) applies in relation to the year of income; or
(b) to which a beneficiary is presently entitled where the beneficiary—
(i) is a non-resident at the end of the year of income;
(ii) is not a beneficiary to whom sub-section (3) of this section or sub-section 97a (1) or (1a) applies in relation to the year of income; and
(iii) is not, in respect of that income, a beneficiary in the capacity of a trustee of another trust estate.
“(3) Where—
(a) a beneficiary of a trust estate is presently entitled to a share of the income of the trust estate;
(b) the beneficiary is a non-resident at the end of the year of income; and
(c) the beneficiary is—
(i) a body, association, fund or organization the income of which is exempt from tax by virtue of the operation of section 23; or
(ii) an organization the income of which is exempt from tax by virtue of a regulation in force under the
International Organizations (Privileges and Immunities )Act 1963,
that beneficiary is, for the purposes of the application of this Division in relation to that beneficiary in relation to that year of income, a beneficiary to whom this sub-section applies.”.
“(3) Where a beneficiary of a trust estate who is presently entitled to a share of the income of the trust estate—
(a) is a company and is not, in respect of that share of the income of the trust estate, a beneficiary in the capacity of a trustee of another trust estate;
(b) is a non-resident at the end of the year of income; and
(c) is not—
(i) a beneficiary to whom sub-section 97a (1a) applies in relation to the year of income; or
(ii) a body, association, fund or organization referred to in sub-paragraph 97 (3) (c) (i) or (ii),
the trustee of the trust estate shall be assessed and is liable to pay tax in respect of—
(d) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and
(e) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia,
at the rate declared by the Parliament for the purposes of this sub-section.
“(4) Where—
(a) a beneficiary of a trust estate who is presently entitled to a share of the income of the trust estate—
(i) is not a company and is not, in respect of that share of the income of the trust estate, a beneficiary in the capacity of a trustee of another trust estate;
(ii) is a non-resident at the end of the year of income; and
(iii) is not a beneficiary to whom sub-section 97a (1) or (1a) applies in relation to the year of income; and
(b) the trustee of the trust estate is not assessed and is not liable to pay tax in pursuance of sub-section (1) or (2) in respect of any part of that share of the net income of the trust estate,
the trustee of the trust estate shall be assessed and is liable to pay tax in respect of—
(c) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and
(d) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia,
as if it were the income of an individual and were not subject to any deduction other than the concessional deductions (if any) that would have been allowable to the beneficiary if the beneficiary had been assessed in respect of the amount, or the sum of the amounts, applicable by virtue of paragraphs (c) and (d).”.
“98a. (1) Where the trustee of a trust estate is assessed and is liable to pay tax in respect of the whole or a part of a share of the net income of a trust estate of a year of income in pursuance of sub-section 98 (3) or (4), the assessable income of the beneficiary who is presently entitled to that share of the income of the trust estate shall include—
(a) so much of the individual interest of the beneficiary in the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and
(b) so much of the individual interest of the beneficiary in the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia.
“(2) Where sub-section (1) applies in relation to a beneficiary in relation to a year of income—
(a) there shall be deducted from the income tax assessed against the beneficiary the amount (in this sub-section referred to as the ‘relevant amount’) of the tax paid by the trustee in respect of the beneficiary’s interest in the net income of the trust estate; and
(b) if the relevant amount is greater than the amount of the income tax assessed against the beneficiary—the Commissioner shall pay to the beneficiary an amount equal to the difference between those 2 amounts.”.
“(a) so much of the capital expenditure (other than expenditure on plant or expenditure of a kind referred to in section 122j or in section 123aa of the
Income Tax Assessment Act 1936-1967 )incurred by the vendor before the date of the transaction in relation to the area that is the subject of the right or to which the information relates as—(i) to the extent to which that expenditure is not allowable (post 19 July 1982) capital expenditure within the meaning of section 122dg—would have been included in the residual previous capital expenditure, the residual capital expenditure, the residual (1 May 1981 to 18 August 1981) capital expenditure or the residual (19 August 1981 to 19 July 1982) capital expenditure of the vendor as at the end of the year of income of the vendor during which the transaction occurred but for the transaction and any later transaction in relation to that area; and
(ii) to the extent to which that expenditure is allowable (post 19 July 1982) capital expenditure within the meaning of section 122dg—
(a) has not been allowed and is not allowable as a deduction to the vendor under sub-section 122dg (2) in respect of a year of income of the vendor preceding the year of income during which the transaction occurred; and
(b) is attributable to an amount of expenditure incurred in relation to that area that has not been taken into account in determining an amount to be included in the allowable capital expenditure of a person under paragraph 122a (1) (d) in respect of a transaction entered into before the first-mentioned transaction;”.
(a) by omitting sub-section (1) and substituting the following sub-section:
“(1) For the purposes of this Division, but subject to sub-section (2), the residual (19 August 1981 to 19 July 1982) capital expenditure of a taxpayer as at the end of a year of income (in this section referred to as the ‘relevant year of income’) shall be ascertained by deducting from the amount of allowable capital expenditure incurred by the
taxpayer after 18 August 1981 and before the end of the relevant year of income, being—
(a) expenditure incurred on or before 19 July 1982; or
(b) expenditure incurred after 19 July 1982—
(i) under a contract entered into on or before 19 July 1982; or
(ii) in respect of the construction of property by the taxpayer where that construction commenced on or before 19 July 1982,
but not being—
(c) expenditure incurred under a contract entered into on or before 18 August 1981; or
(d) expenditure incurred in respect of the construction of property by the taxpayer where that construction commenced on or before 18 August 1981,
the sum of—
(e) any part of that allowable capital expenditure that—
(i) has been allowed or is allowable as a deduction under section 122df from the assessable income of a year of income preceding the relevant year of income; or
(ii) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 122b by the taxpayer and a person who acquired the property from the taxpayer)—
(a) that has been disposed of, lost or destroyed; or
(b) the use of which by the taxpayer for prescribed purposes has been otherwise terminated,
and has not been allowed and is not allowable as a deduction from the assessable income of any year of income that ended before the year of income in which the disposal, loss, destruction or termination of use took place; and
(f) so much of any amounts specified in notices duly given to the Commissioner under section 122b in relation to the acquisition from the taxpayer, during the relevant year of income or a preceding year of income, of a mining or prospecting right or mining or prospecting information as is attributable to expenditure that would, but for this paragraph, be included in the residual (19 August 1981 to 19 July 1982) capital expenditure of the taxpayer as at the end of the relevant year of income.”; and
(b) by omitting from sub-section (2) “(1) (c) (ii) (b) has, after 18 August 1981,” and substituting “(1) (e) (ii) (b) has, after 18 August 1981 and on or before 19 July 1982,”.
(a) by omitting “residual (post 18 August 1981) capital expenditure” (wherever occurring) and substituting “residual (19 August 1981 to 19 July 1982) capital expenditure”; and
(b) by inserting in sub-section (3) “122dg or” before “122j”.
“122dg. (1) In this section, ‘allowable (post 19 July 1982) capital expenditure’, in relation to a taxpayer, means allowable capital expenditure incurred by the taxpayer after 19 July 1982, not being expenditure incurred—
(a) under a contract entered into on or before 19 July 1982; or
(b) in respect of the construction of property by the taxpayer where that construction commenced on or before 19 July 1982.
“(2) Where, in a year of income, a taxpayer incurs allowable (post 19 July 1982) capital expenditure, an amount ascertained in accordance with this section is an allowable deduction in respect of that expenditure in respect of that year of income and in respect of all subsequent years of income.
“(3) Subject to sub-section (6), the deduction allowable under sub-section (2) in respect of a year of income (in this sub-section referred to as the ‘relevant year of income’) in respect of an amount of allowable (post 19 July 1982) capital expenditure incurred by a taxpayer is the amount ascertained by dividing the amount of that expenditure that is unrecouped as at the end of the relevant year of income by—
(a) a number equal to the difference between 10 and the number of years of income (if any) preceding the relevant year of income in respect of which a deduction has been allowed or is allowable, or, but for the operation of sub-section (6), would have been allowed or would be allowable, under sub-section (2) in respect of that amount of expenditure; or
(b) a number equal to the number of whole years in the estimated life of the mine or proposed mine on the mining property, or, if there is more than one such mine, of the mine that has the longer or longest estimated life, as at the end of the relevant year of income,
whichever number is the less.
“(4) For the purposes of sub-section (3), the amount of the allowable (post 19 July 1982) capital expenditure incurred by a taxpayer that is unrecouped as at the end of a year of income (in this sub-section referred to as
the ‘relevant year of income’) shall be ascertained by deducting from the amount of that allowable (post 19 July 1982) capital expenditure the sum of—
(a) any part of that allowable (post 19 July 1982) capital expenditure that—
(i) has been allowed or is allowable, or, but for the operation of sub-section (6), would have been allowed or would be allowable, as a deduction under sub-section (2) in respect of a year of income preceding the relevant year of income; or
(ii) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 122b by the taxpayer and a person who acquired the property from the taxpayer)—
(a) that has been disposed of, lost or destroyed; or
(b) the use of which by the taxpayer for prescribed purposes has been otherwise terminated,
and has not been allowed and is not allowable as a deduction under sub-section (2) in respect of a year of income preceding the relevant year of income; and
(b) so much of any amounts specified in notices duly given to the Commissioner under section 122b in relation to the acquisition from the taxpayer, during the relevant year of income or a year of income preceding the relevant year of income, of a mining or prospecting right or mining or prospecting information as—
(i) is attributable to that allowable (post 19 July 1982) capital expenditure; and
(ii) has not been allowed and is not allowable as a deduction under sub-section (2) in respect of a year of income preceding the relevant year of income.
“(5) For the purposes of sub-paragraphs (4) (a) (ii) and (4) (b) (ii), an amount that would have been allowed or allowable as a deduction under sub-section (2) but for the operation of sub-section (6) shall be deemed to have been allowed or to be allowable as such a deduction.
“(6) The amount, or the total of the amounts, of the deduction or deductions allowable under sub-section (2) in respect of a year of income (including any amount that is deemed to be a deduction so allowable by virtue of sub-section (7)) shall not exceed an amount equal to so much of the assessable income of the year of income as remains after deducting all allowable deductions, other than deductions allowable under this section or under section 122j, and, where the total of the amounts of 2 or more deductions that would be allowable under this section but for this sub-section exceeds the maximum amount determined in accordance with this sub-section, those deductions shall be reduced respectively by amounts proportionate to those deductions and equal in total to the excess.
“(7) Subject to sub-sections (8) and (9), where the whole or a part of a deduction in respect of a year of income is disallowed under sub-section (6),
that whole or part shall be deemed to be a deduction that is allowable under sub-section (2) in respect of the next succeeding year of income.
“(8) Where—
(a) an amount of allowable (post 19 July 1982) capital expenditure was incurred by a taxpayer on property (not being property in respect of which a notice has been duly given to the Commissioner under section 122b) that, during a year of income, has been disposed of, lost or destroyed or the use of which by the taxpayer for prescribed purposes has been otherwise terminated; and
(b) the whole or a part of an amount (which whole or part is in this sub-section referred to as the ‘relevant amount’) in respect of which a deduction would, but for this sub-section, be allowable to the taxpayer in that year of income or in a succeeding year of income by virtue of the operation of sub-section (7) is attributable to the amount referred to in paragraph (a),
a deduction is not allowable to the taxpayer in respect of the relevant amount.
“(9) Where—
(a) an amount is specified in a notice duly given to the Commissioner under section 122b in relation to the acquisition from a taxpayer, during a year of income, of a mining or prospecting right or mining or prospecting information; and
(b) the whole or a part of an amount (which whole or part is in this sub-section referred to as the ‘relevant amount’) in respect of which a deduction would, but for this sub-section, be allowable to the taxpayer in that year of income or in a succeeding year of income by virtue of the operation of sub-section (7) is attributable to the amount referred to in paragraph (a),
a deduction is not allowable to the taxpayer in respect of the relevant amount.
“(10) Where—
(a) after 17 August 1976, a taxpayer has incurred allowable capital expenditure on property the use of which by the taxpayer for prescribed purposes has been terminated; and
(b) the property has, after 19 July 1982, come into use by the taxpayer for purposes for which allowable capital expenditure may be incurred,
so much of that first-mentioned expenditure as the Commissioner determines shall, for the purposes of this section, be deemed to have been incurred by the taxpayer on that property, on the day on which that property so came into use by the taxpayer, for the purposes for which that property so came into use.
“(11) Where, having regard to the information in his possession, the Commissioner is not satisfied that the estimated life of a mine or a proposed mine as made by the taxpayer is a reasonable estimate, the estimated life shall, for the purposes of paragraph (3) (b), be taken to be such period as the Commissioner considers reasonable.”.
“(a) so much of the expenditure of a capital nature (other than expenditure on plant) incurred by the vendor before the date of the transaction in relation to the area that is the subject of the right or to which the information relates as—
(i) to the extent to which that expenditure is not allowable (post 19 July 1982) capital expenditure within the meaning of section 124adg—would have been included in the residual previous capital expenditure, the residual capital expenditure, the residual (1 May 1981 to 18 August 1981) capital expenditure or the residual (19 August 1981 to 19 July 1982) capital expenditure of the vendor as at the end of the year of income of the vendor during which the transaction occurred but for the transaction and any later transaction in relation to that area; and
(ii) to the extent to which that expenditure is allowable (post 19 July 1982) capital expenditure within the meaning of section 124adg—
(a) has not been allowed and is not allowable as a deduction to the vendor under sub-section 124adg (2) in respect of a year of income of the vendor preceding the year of income during which the transaction occurred; and
(b) is attributable to an amount of expenditure incurred in relation to that area that has not been taken into account in determining an amount to be included in the allowable capital expenditure of a person under paragraph 124aa (2) (b) in respect of a transaction entered into before the first-mentioned transaction;”.
(a) by inserting in sub-section (3) “, section 124adg” after “section 124adf”; and
(b) by inserting in sub-section (4) “, section 124adg” after “section 124adf” (wherever occurring).
(a) by omitting sub-section (1) and substituting the following sub-section:
“(1) For the purposes of this Division, but subject to the succeeding provisions of this section, the residual (19 August 1981 to 19 July 1982) capital expenditure of a taxpayer as at the end of a year of income (in this section referred to as the ‘relevant year of income’) shall be ascertained by deducting from the sum of—
(a) the amount of allowable capital expenditure (other than allowable capital expenditure to which paragraph (b) applies) incurred by the taxpayer after 18 August 1981 and before the end of the relevant year of income, being—
(i) expenditure incurred on or before 19 July 1982; or
(ii) expenditure incurred after 19 July 1982—
(a) under a contract entered into on or before 19 July 1982; or
(b) in respect of the construction of property by the taxpayer where that construction commenced on or before 19 July 1982,
but not being—
(iii) expenditure incurred under a contract entered into on or before 18 August 1981; or
(iv) expenditure incurred in respect of the construction of property by the taxpayer where that construction commenced on or before 18 August 1981; and
(b) any amount of allowable capital expenditure that is deemed by sub-section (2) to have been incurred by the taxpayer after 18 August 1981 and on or before 19 July 1982,
the following amounts:
(c) any part of the expenditure included in that sum that—
(i) has been allowed or is allowable as a deduction under section 124adf from the assessable income of a year of income preceding the relevant year of income; or
(ii) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 124ab by the taxpayer and a person who acquired the last-mentioned property from the taxpayer) that has been disposed of, lost or destroyed or the use of which by the taxpayer for the purposes of carrying on prescribed petroleum operations has been otherwise terminated, and has not been allowed and is not allowable as a deduction from the assessable income of any year of income that ended before the year of income in which the disposal, loss, destruction or termination of use took place; and
(d) the sum of so much of any amounts specified in notices duly given to the Commissioner under section 124ab in relation to the acquisition from the taxpayer, during the relevant year of income or a preceding year of income, of a petroleum prospecting or mining right or petroleum prospecting or mining information as is attributable to expenditure that would, but for this paragraph, be included in the residual (19 August 1981 to 19 July 1982) capital expenditure of the taxpayer as at the end of the relevant year of income.”; and
(b) by inserting in paragraph (2) (b) “and on or before 19 July 1982” after “18 August 1981”.
(a) by omitting “residual (post 18 August 1981) capital expenditure” (wherever occurring) and substituting “residual (19 August 1981 to 19 July 1982) capital expenditure”; and
(b) by omitting from sub-section (3) “and section 124ah” and substituting “, section 124adg and section 124ah”.
“124adg. (1) In this section, ‘allowable (post 19 July 1982) capital expenditure’, in relation to a taxpayer, means allowable capital expenditure incurred by the taxpayer after 19 July 1982, not being expenditure incurred—
(a) under a contract entered into on or before 19 July 1982; or
(b) in respect of the construction of property by the taxpayer where that construction commenced on or before 19 July 1982.
“(2) Where, in a year of income, a taxpayer incurs allowable (post 19 July 1982) capital expenditure, an amount ascertained in accordance with this section is an allowable deduction in respect of that expenditure in respect of that year of income and in respect of subsequent years of income.
“(3) Subject to sub-section (6), the deduction allowable under sub-section (2) in respect of a year of income (in this sub-section referred to as the ‘relevant year of income’) in respect of an amount of allowable (post 19 July 1982) capital expenditure incurred by a taxpayer is the amount ascertained by dividing the amount of that expenditure that is unrecouped as at the end of the relevant year of income by—
(a) a number equal to the difference between 10 and the number of years of income (if any) preceding the relevant year of income in respect of which a deduction has been allowed or is allowable, or, but for the operation of sub-section (6), would have been allowed or would be allowable, under sub-section (2) in respect of that amount of expenditure; or
(b) a number equal to the number of whole years in the estimated life of the petroleum field or proposed petroleum field as at the end of the relevant year of income,
whichever number is the less.
“(4) For the purposes of sub-section (3), the amount of the allowable (post 19 July 1982) capital expenditure incurred by a taxpayer that is unrecouped as at the end of a year of income (in this sub-section referred to as the ‘relevant year of income’) shall be ascertained by deducting from the amount of that allowable (post 19 July 1982) capital expenditure the sum of—
(a) any part of that allowable (post 19 July 1982) capital expenditure that—
(i) has been allowed or is allowable, or, but for the operation of sub-section (6), would have been allowed or would be allowable, as a deduction under sub-section (2) in respect of a year of income preceding the relevant year of income; or
(ii) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 124ab by the taxpayer and a person who acquired the property from the taxpayer)—
(a) that has been disposed of, lost or destroyed; or
(b) the use of which by the taxpayer for the purposes of carrying on prescribed petroleum operations has been otherwise terminated,
and has not been allowed and is not allowable as a deduction under sub-section (2) in respect of a year of income preceding the relevant year of income; and
(b) so much of any amounts specified in notices duly given to the Commissioner under section 124ab in relation to the acquisition from the taxpayer, during the relevant year of income or a year of income preceding the relevant year of income, of a petroleum prospecting or mining right or petroleum prospecting or mining information as—
(i) is attributable to that allowable (post 19 July 1982) capital expenditure; and
(ii) has not been allowed and is not allowable as a deduction under sub-section (2) in respect of a year of income preceding the relevant year of income.
“(5) For the purposes of sub-paragraphs (4) (a) (ii) and (4) (b) (ii), an amount that would have been allowed or allowable as a deduction under sub-section (2) but for the operation of sub-section (6) shall be deemed to have been allowed or to be allowable as such a deduction.
“(6) The amount, or the total of the amounts, of the deduction or deductions allowable under sub-section (2) in respect of a year of income (including any amount that is deemed to be a deduction so allowable by virtue of sub-section (7)) shall not exceed an amount equal to so much of the assessable income of the year of income as remains after deducting all allowable deductions, other than deductions allowable under this section or under section 124ah, and, where the total of the amounts of 2 or more deductions that would be allowable under this section but for this sub-section exceeds the maximum amount determined in accordance with this sub-section, those deductions shall be reduced respectively by amounts proportionate to those deductions and equal in total to the excess.
“(7) Subject to sub-sections (8) and (9), where the whole or a part of a deduction in respect of a year of income is disallowed under sub-section (6), that whole or part shall be deemed to be a deduction that is allowable under sub-section (2) in respect of the next succeeding year of income.
“(8) Where—
(a) an amount of allowable (post 19 July 1982) capital expenditure was incurred by a taxpayer on property (not being property in respect of which a notice has been duly given to the Commissioner under section 124ab) that, during a year of income, has been disposed of, lost or destroyed or the use of which by the taxpayer for the purposes of carrying on prescribed petroleum operations has been otherwise terminated; and
(b) the whole or a part of an amount (which whole or part is in this sub-section referred to as the ‘relevant amount’) in respect of which a deduction would, but for this sub-section, be allowable to the taxpayer in that year of income or in a succeeding year of income by virtue of the operation of sub-section (7) is attributable to the amount referred to in paragraph (a),
a deduction is not allowable to the taxpayer in respect of the relevant amount.
“(9) Where—
(a) an amount is specified in a notice duly given to the Commissioner under section 124ab in relation to the acquisition from a taxpayer, during a year of income, of a petroleum prospecting or mining right or petroleum prospecting or mining information; and
(b) the whole or a part of an amount (which whole or part is in this sub-section referred to as the ‘relevant amount’) in respect of which a deduction would, but for this sub-section, be allowable to the taxpayer in that year of income or in a succeeding year of income by virtue of the operation of sub-section (7) is attributable to the amount referred to in paragraph (a),
“221yhm. Where a person has made a deduction from a prescribed payment and that deduction was made, or purports to have been made, for the purposes of section 221yhd, the person is, by force of this section, discharged from all liability to pay or account for the deduction to any person other than the Commissioner.
“221yhn. (1) An amount payable to the Commissioner under this Division by a person other than the Commonwealth is a debt due to the Commonwealth and payable to the Commissioner and—
(a) that amount may by sued for and recovered in a court of competent jurisdiction by the Commissioner or a Deputy Commissioner suing in his official name; or
(b) a court before which proceedings are taken against that person for an offence against a provision of this Division may order that person to pay that amount to the Commissioner.
“(2) The provisions of section 243 apply in proceedings for the recovery of an amount payable to the Commissioner under this Division in like manner as those provisions apply in proceedings by the Crown for the recovery of a pecuniary penalty under this Act.
“(3) The provisions of section 249 apply to an order for the payment of a sum of money to the Commissioner made under paragraph (1) (b) of this section or sub-section 221yhd (4) in like manner as those provisions apply to an order for the payment of a sum of money to the Commissioner made under Part VII.
“(4) Where—
(a) 2 or more amounts payable to the Commissioner by a person would, but for this sub-section, be debts due to the Commonwealth under sub-section (1);
(b) an amount (in this sub-section referred to as the ‘relevant payment’) is paid to the Commissioner in respect of one or more of those amounts; and
(c) the sum of the amounts payable exceeds the relevant payment,
the Commissioner may, notwithstanding any direction to the contrary by or on behalf of the person by whom the amounts are payable or the person making the relevant payment, apply the relevant payment in partial discharge of the sum of the amounts payable and recover as a debt due to the Commonwealth the amount by which the sum of the amounts payable exceeds the relevant payment.
“221yho. (1) All moneys received by the Commissioner in pursuance of this Division shall be paid into the Consolidated Revenue Fund.
“(2) An amount that the Commissioner is liable to pay in pursuance of this Division is payable out of the Consolidated Revenue Fund, which, to the necessary extent, is appropriated accordingly.
“221yhp. (1) Subject to this section, on application in writing by a person, in a form approved by the Commissioner for the purposes of this section, the Commissioner may issue to the person a deduction variation certificate under this section in relation to a year of income or a part of a year of income.
“(2) The Commissioner shall not issue a deduction variation certificate to a person in relation to a year of income or a part of a year of income unless he is satisfied that, because special circumstances exist in relation to the person in relation to the year of income, or the part of the year of income, as the case may be, the amount otherwise to be deducted from prescribed payments to the person under regulations for the purposes of sub-paragraph 221yhd(5) (a) (i) should be reduced.
“(3) Subject to section 221yhs, a deduction variation certificate remains in force during the period specified in the certificate as the period during which the certificate remains in force.
“221yhq. (1) Subject to this section, on application in writing by a person, in a form approved by the Commissioner for the purposes of this section, the Commissioner may issue a deduction exemption certificate under this section to the person in relation to a specified period.
“(2) Subject to sub-sections (4) and (5), the Commissioner shall not issue a deduction exemption certificate to a person (in this sub-section referred to as the ‘applicant’) unless the Commissioner is satisfied that there is no reasonable likelihood that tax will be payable by the applicant in relation to the year of income to which the certificate, if issued, will relate or the following conditions are satisfied:
(a) the Commissioner is satisfied—
(i) that the applicant has, for a period (in this paragraph referred to as the ‘relevant period’) of 3 years immediately preceding the date of the application, been regularly engaged in carrying on business in Australia;
(ii) that, during the relevant period, the applicant has, in relation to each business carried on by the applicant during the relevant period—
(a) maintained such accounting and taxation records in relation to the business as correctly record and explain the transactions and financial position of the business;
(b) conducted the business at or from established premises that were advertised to the public as being premises from which the business was carried on; and
(c) conducted all financial transactions relating to the business through a bank account or bank accounts that was or were separate from any private or domestic account maintained by the applicant;
(iii) that, during the relevant period, the applicant has satisfactorily complied with his obligations under Acts administered by the Commissioner; and
(iv) that, during the period to which the certificate, if issued, will relate—
(a) the applicant will regularly be engaged in carrying on business in Australia;
(b) the conditions specified in sub-sub-paragraphs (ii) (a) to (c) will be satisfied in relation to each business that might be carried on by the applicant during that period; and
(c) the applicant will satisfactorily comply with his obligations under Acts administered by the Commissioner;
(b) if the applicant kept taxation and accounting records in relation to the year of income in relation to which the applicant last furnished a return of income under section 161 and the records—
(i) include a balance sheet; and
(ii) have been audited by a person who, in the opinion of the Commissioner, is competent and qualified to audit the records,
the applicant has furnished to the Commissioner a declaration by a prescribed person that the prescribed person has examined the records and has satisfied himself that the return of income accurately discloses the assessable income and allowable deductions of the applicant in respect of that year of income;
(c) if the applicant is a company, partnership or trustee of a trust estate and is not required to furnish a declaration in accordance with paragraph (b) in relation to the year of income in relation to which the applicant last furnished a return of income under section 161—the applicant has furnished to the Commissioner—
(i) a statement setting out details of all property (including money) acquired or disposed of by the applicant during that year of income;
(ii) a statement reconciling the details specified in accordance with sub-paragraph (i) with the assessable income and allowable deductions specified in the return of income; and
(iii) a declaration by a prescribed person that the prescribed person has examined the statements prepared in accordance with sub-paragraphs (i) and (ii) and has satisfied himself that the return of income accurately discloses the assessable income and allowable deductions of the applicant in respect of that year of income;
(d) if the applicant is not a company, partnership or trustee of a trust estate and is not required to furnish a declaration in accordance with paragraph (b) in relation to the year of income in relation to which the applicant last furnished a return of income under section 161—the applicant has furnished to the Commissioner—
(i) a statement setting out details of all property (including money) acquired or disposed of by the applicant during that year of income (including details relating to acquisitions or disposals of a private or domestic nature);
(ii) a statement reconciling the details specified in accordance with sub-paragraph (i) with the assessable income and allowable deductions specified in the return of income; and
(iii) a declaration by a prescribed person that the prescribed person has examined the statements prepared in accordance with sub-paragraphs (i) and (ii) and has satisfied himself that the return of income accurately discloses the assessable income and allowable deductions of the applicant in respect of that year of income; and
(e) where paragraph (c) or (d) applies in relation to the applicant and the Commissioner requires any statements or declarations of the kind referred to in those paragraphs in relation to an associate of the applicant—the applicant or the associate has furnished to the Commissioner those statements or declarations.
“(3) For the purposes of sub-section (2) —
(a) a reference to the Commissioner being satisfied that there is no reasonable likelihood that tax will be payable in relation to a year of income by an applicant for a deduction exemption certificate shall, in the case of an applicant being a partnership or the trustee of a trust estate, be read as a reference to the Commissioner being satisfied that there is no reasonable likelihood that there will be any net income of the partnership or trust estate, as the case may be, in relation to the year of income;
(b) a reference to a prescribed person is a reference to—
(i) a person who is a registered tax agent within the meaning of Part VIIa; or
(ii) a person who, in the opinion of the Commissioner, is competent and qualified to furnish a declaration required by that sub-section; and
(c) a reference to an associate of a person (in this paragraph referred to as the ‘relevant person’) is a reference to—
(i) where the relevant person is a company (including a company in the capacity of trustee of a trust estate)—any person who is a director of, or shareholder in, the company;
(ii) where the relevant person is a partnership—any of the partners in the partnership; and
(iii) in any other case—any relative of the relevant person.
“(4) Where—
(a) a person meets the requirements of sub-paragraph (2) (a) (iv) but fails to meet one or more of the requirements of sub-paragraphs (2) (a) (i), (ii) and (iii); and
(b) the Commissioner, having regard to—
(i) the purposes of this Division;
(ii) the special circumstances (if any) that exist or existed in relation to the person; and
(iii) such other matters (if any) as he thinks fit,
is of the opinion that it would be unreasonable not to issue a deduction exemption certificate to the person,
the Commissioner may issue a deduction exemption certificate to the person.
“(5) The special circumstances to which the Commissioner may have regard in the application of sub-section (4) in relation to a person being a company, a partnership or the trustee of a trust estate include—
(a) in the case of a company being a private company in relation to the year of income next preceding the year of income to which, or to part
of which, the certificate, if issued, will relate—the extent to which the requirements of sub-paragraphs (2) (a) (i), (ii) and (iii) have been complied with in relation to any businesses carried on by directors of, or shareholders in, the company;
(b) in the case of a company to which paragraph (a) does not apply—the extent to which the requirements of sub-paragraphs (2) (a) (i), (ii) and (iii) have been complied with in relation to any businesses carried on by directors of the company;
(c) in the case of a partnership—the extent to which the requirements of sub-paragraphs (2) (a) (i), (ii) and (iii) have been complied with in relation to any businesses carried on by partners in the partnership; or
(d) in the case of a trustee of a trust estate—the extent to which the requirements of sub-paragraphs (2) (a) (i), (ii) and (iii) have been complied with in relation to any businesses (not including the business of the trust estate) carried on by the trustee.
“(6) For the purposes of the application of sub-section (5) in relation to an application for a deduction exemption certificate, a person shall be deemed to have fully complied with the requirements of sub-paragraphs (2) (a) (i), (ii) and (iii) in relation to all businesses carried on by the person at any time before the date of the application for the certificate if, on the date f the application, the person was the holder of a deduction exemption certificate that was in force.
“(7) In the application of sub-paragraph (2) (a) (i) in relation to a person in the capacity of trustee of a trust estate, the reference to the person having been regularly engaged in carrying on business in Australia shall be read as a reference to the person having been regularly engaged in carrying on the business of the trust estate in Australia.
“(8) Subject to section 221yhs, a deduction exemption certificate remains in force during the period specified in the certificate as the period during which the certificate remains in force.
“(9) Where a payee has properly furnished a deduction form to an eligible paying authority in relation to a prescribed payment and—
(a) if the payment is to be made to the payee in person—
(i) the payee has declared in the deduction form that a deduction exemption certificate has been issued to the payee in respect of the period specified in the declaration and has not been revoked;
(ii) the payee has produced to the eligible paying authority a deduction exemption certificate issued to the payee and applicable to the time when the payment is to be made; and
(iii) the eligible paying authority has no reasonable grounds for believing that the deduction exemption certificate has been revoked; or
(b) if the payment is not to be made to the payee in person—the payee has declared in the deduction form that a deduction exemption certificate
has been issued to the payee in respect of the period specified in the declaration and has not been revoked,
the eligible paying authority shall not make any deduction from the prescribed payment under paragraph 221yhd (1) (a).
“221yhr. (1) Where—
(a) an application in writing, in a form approved by the Commissioner for the purposes of this section, is made jointly to the Commissioner by an eligible paying authority and a payee with whom the eligible paying authority has entered into a contract under which the eligible paying authority is liable to make prescribed payments to the payee;
(b) a deduction exemption certificate issued to the payee is in force; and
(c) the Commissioner is satisfied that special circumstances exist in relation to the eligible paying authority and the payee,
the Commissioner may issue to the eligible paying authority and the payee jointly a reporting exemption certificate under this section in relation to prescribed payments under the contract.
“(2) Subject to section 221yhs, the reporting exemption certificate remains in force while there is in force a deduction exemption certificate issued to the payee.
“(3) Sections 221yhc and 221yhd do not apply in relation to prescribed payments in relation to which a reporting exemption certificate is in force.
“221yhs. (1) The Commissioner may, at any time, revoke a prescribed certificate, and where he does so, he shall, in writing, notify the person or persons to whom the certificate was issued of the revocation.
“(2) A person who is notified by the Commissioner under sub-section (1) of the revocation of a certificate shall, within 14 days after he receives the notification, return the certificate to the Commissioner.
Penalty: $500.
“(3) If—
(a) a person (in this sub-section referred to as the ‘payee’) to whom a deduction variation certificate or a deduction exemption certificate has been issued properly furnishes to an eligible paying authority in relation to a prescribed payment a deduction form in which the payee has made a declaration in relation to the certificate as mentioned in paragraph 221yhd (5) (a) or sub-section 221yhq (9);
(b) after the payee furnishes the deduction form to the eligible paying authority and before the prescribed payment is made, the payee receives notification under sub-section (1) of the revocation of the certificate; and
(c) the payee does not notify the eligible paying authority of the revocation before the prescribed payment is made,
the payee is guilty of an offence punishable, on conviction, by a fine not exceeding $2,000.
“221yht. (1) Where the Commissioner makes a decision on an application under section 221yhp, 221yhq or 221yhr, the Commissioner shall give notice in writing of his decision to the applicant.
“(2) Where a person who has been notified of a decision of the Commissioner made under section 221yhl (other than sub-section (1)) or section 221yhp, 221yhq, 221yhr or 221yhs is dissatisfied with the decision, the person may, within 60 days after service on the person of notice of the decision of the Commissioner, post to, or lodge with, the Commissioner an objection in writing against the decision stating fully and in detail the grounds on which the person relies.
“(3) The provisions of Division 2 of Part V (other than section 185) apply in relation to an objection made under sub-section (2) in like manner as those provisions apply in relation to an objection against an assessment.
“221yhu. A person shall not—
(a) endeavour to obtain, for his own advantage or benefit, credit with respect to, or payment of, the amount of a deduction made from a prescribed payment made to another person;
(b) present, for the purpose of obtaining credit, payment or other benefit, a deduction form, or document purporting to be a deduction form, other than a deduction form duly delivered to him;
(c) alter a prescribed certificate or produce to an eligible paying authority a deduction exemption certificate or a deduction variation certificate that has been altered without the authority of the Commissioner;
(d) without lawful excuse, have in his possession a forgery or colourable imitation of a prescribed certificate;
(e) falsely pretend to be the person named in a deduction exemption certificate or a deduction variation certificate; or
(f) by the production of a document other than a prescribed certificate issued to him that is for the time being in force, cause an eligible paying authority to refrain from making a deduction from a prescribed payment or to make a deduction from a prescribed payment of an amount less than the amount applicable under the regulations in relation to the prescribed payment.
Penalty: $5,000 or imprisonment for 12 months, or both.
“221yhv. A prosecution for an offence against this Division may be commenced at any time.
“221yhw. (1) Charges against the same person for any number of offences against this Division may be joined in one complaint if those charges are founded on the same facts or form, or are part of, a series of offences of the same or a similar character.
“(2) Where more than one charge is included in the same complaint in pursuance of sub-section (1), particulars of each offence charged shall be set out in a separate paragraph.
“(3) All charges so joined shall be tried together unless the court considers it just that any charge should be tried separately and makes an order to that effect.
“(4) If a person is found guilty of more than one offence, the court may, if it thinks fit, impose one penalty in respect of all offences of which the person has been found guilty, but that penalty shall not exceed the sum of the maximum penalties that could be imposed if penalties were imposed for each offence separately.
“221yhx. Section 264 applies, for the purposes of this Division, as if the reference in paragraph (1) (b) of that section to a person’s income or assessment were a reference to a matter relevant to the administration or operation of this Division.
“221yhy.
Any form that is approved, or published in the
“221yhz. (1) Subject to this section, this Division applies in relation to the making and receipt of prescribed payments by a partnership as if the partnership were a person.
“(2) Where, but for this sub-section, an obligation would be imposed on a partnership by virtue of the operation of sub-section (1), the obligation may be discharged by any of the partners.
“(3) Where, by virtue of the operation of sub-section (1), an amount is payable under this Division by a partnership, the partners are jointly and severally liable to pay that amount.
“(4) Where, by virtue of the operation of sub-section (1), an offence against this Division is deemed to have been committed by a partnership, that offence shall be deemed to have been committed by each of the partners.”.
“221zm. Except in so far as the contrary intention appears, an expression that is used in this Division and in Division 10ba of Part III has, in this Division, the same meaning as in Division 10ba, whether or not the expression is defined in, or a particular meaning is assigned to the expression by, Division 10ba.
“221zn. (1) Where a person withdraws an amount of money (in this sub-section referred to as the ‘relevant amount’) from a film account and the amount is not, upon withdrawal, dealt with in the prescribed manner, the person shall—
(a) if the relevant amount is, upon withdrawal, to be paid to a person as a refund of capital moneys expended by way of contribution to the cost of producing the film—upon withdrawal deduct from the relevant amount an amount equal to—
(i) if the person to whom the refund is to be made is a company, other than a company in the capacity of trustee of a trust estate—69% of the relevant amount; and
(ii) in any other case—90% of the relevant amount;
(b) if paragraph (a) does not apply in relation to the relevant amount—upon withdrawal deduct from the relevant amount an amount equal to 90% of the relevant amount;
(c) pay the amount deducted under paragraph (a) or (b) to the Commissioner within 21 days after withdrawing the relevant amount;
(d) forward to the Commissioner, together with the payment referred to in paragraph (c), a statement in respect of the payment, in a form approved by the Commissioner and signed by the person; and
(e) if the amount deducted under paragraph (a) or (b) is not paid to the Commissioner upon being deducted—upon the deduction being made, pay the amount deducted into the film account.
“(2) Where a person (in this sub-section referred to as the ‘account operator’) makes a deduction in accordance with paragraph (1) (a) from an amount withdrawn from a film account for refund to a person (in this sub-section referred to as the ‘contributor’), the contributor may, within 7 days after the amount is withdrawn, apply in writing to the Commissioner for a certificate under sub-section (3) exempting the account operator from the requirement of sub-section (1) to pay the amount deducted to the Commissioner.
“(3) The Commissioner shall, if he is satisfied that no deduction has been allowed under section 124zafa to the contributor in respect of any part of the amount expended by the contributor that, by virtue of section 124zah, is taken to be included in the amount withdrawn from the film account, issue to the contributor a certificate under this sub-section in relation to the amount deducted.
“(4) Where the certificate is presented to the account operator—
(a) the account operator is not required to pay the amount deducted to the Commissioner; and
(b) the contributor is not entitled to a credit under section 221zs in respect of the amount deducted.
“(5) A person who fails to comply with the requirements of sub-section (1) is guilty of an offence punishable upon conviction by—
(a) in the case of a failure to comply with the requirements of paragraph (1) (c)—a fine not exceeding $1,000 or imprisonment for a period not exceeding 6 months; and
(b) in any other case—a fine not exceeding $200.
“(6) In determining for the purposes of this section whether capital moneys have been expended by a taxpayer by way of contribution to the cost of producing a film, sections 124zag, 124zal and 124zam shall be disregarded.
“221zo. (1) Subject to sub-section (2), where a person fails to deduct an amount required to be deducted under this Division from an amount (in this sub-section referred to as the ‘withdrawn amount’) withdrawn from a film account, the person is liable, in addition to any other penalty to which the person may be liable, to pay to the Commissioner—
(a) an amount (in this sub-section referred to as the ‘undeducted amount’) equal to the amount that the person failed to deduct; and
(b) an amount equal to 10% per annum of so much of the undeducted amount as remains unpaid, computed from the expiration of the period of 21 days after the withdrawn amount was withdrawn from the film account.
“(2) Where the Commissioner becomes aware that a person has failed to deduct an amount required to be deducted under this Division from an amount withdrawn from a film account, the Commissioner shall notify the person in writing of the amount that was required to be deducted.
“(3) An amount that a person is liable to pay under paragraph (1) (a) in relation to an amount withdrawn from a film account ceases to be payable upon the expiration of 60 days after the person receives a notice from the Commissioner under sub-section (2) in relation to the amount withdrawn.
“(4) Where a person has become entitled to a credit under section 221zs in relation to an amount paid to the Commissioner under paragraph (1) (a) by another person (in this sub-section referred to as the ‘relevant person’)—
(a) the Commissioner shall, on application by the relevant person, notify the relevant person of the identity of the person who has become entitled to the credit and of the amount of the credit; and
(b) the relevant person may recover as a debt, from the person who became entitled to the credit, an amount equal to the amount of the credit.
“221zp. Where an amount payable to the Commissioner by a person under paragraph 221zn (1) (c) remains unpaid after the expiration of the period before the expiration of which it is required by that paragraph to be paid—
(a) that amount continues to be payable by that person to the Commissioner; and
(b) an additional amount is, in addition to any other penalty to which that person may be liable, payable by that person to the Commissioner at the rate of 20% per annum on the amount unpaid, computed from the expiration of that period.
“221zq. Where an amount (in this section referred to as the ‘late payment amount’) is payable under paragraph 221zo (1) (b) or an additional amount (in this section also referred to as the ‘late payment amount’) is payable under paragraph 221zp (b) in relation to an amount (in this section referred to as the ‘principal amount’) payable to the Commissioner and—
(a) the Commissioner is satisfied that—
(i) the circumstances that contributed to the delay in payment of the principal amount were not due to, or caused directly or indirectly by, an act or omission of the person; and
(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances;
(b) the Commissioner is satisfied that—
(i) the circumstances that contributed to the delay in payment of the principal amount were due to, or caused directly or indirectly by, an act or omission of the person;
(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and
(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the late payment amount or part of the late payment amount; or
(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the late payment amount or part of the late payment amount,
the Commissioner may remit the late payment amount or part of the late payment amount.
“221zr. (1) An amount payable to the Commissioner under this Division by a person is a debt due to the Commonwealth and payable to the Commissioner and—
(a) that amount may be sued for and recovered in a court of competent jurisdiction by the Commissioner or a Deputy Commissioner suing in his official name; or
(b) a court before which proceedings are taken against that person for an offence against a provision of this Division may order that person to pay that amount to the Commissioner.
“(2) The provisions of section 243 apply in proceedings for the recovery of an amount payable to the Commissioner under this Division in like manner as those provisions apply in proceedings by the Crown for the recovery of a pecuniary penalty under this Act.
“(3) The provisions of section 249 apply to an order for the payment of a sum of money to the Commissioner made under paragraph (1) (b) of this section in like manner as those provisions apply to an order for the payment of a sum of money to the Commissioner made under Part VII.
“221zs. (1) Where—
(a) a deduction is made under sub-section 221zn (1) from a refund made to a person; or
(b) an amount is paid to the Commissioner under paragraph 221zo (1) (a) in relation to an amount that was required to be deducted from an amount refunded to a person,
the person is entitled to a credit of an amount equal to the deduction or the amount paid to the Commissioner, as the case may be.
“(2) Where, in a case to which sub-section (1) does not apply—
(a) a deduction is made under sub-section 221zn (1) from an amount (in this sub-section referred to as the ‘withdrawn amount’) withdrawn from a film account or an amount is paid to the Commissioner under paragraph 221zo (1) (a) in relation to an amount that was required to be deducted from an amount (in this sub-section also referred to as the ‘withdrawn amount’) withdrawn from a film account; and
(b) the Commissioner has determined under section 124zah that an amount (in this sub-section referred to as the ‘contribution amount’) of moneys expended by a person is to be taken to be included in the withdrawn amount,
the person is entitled to a credit of an amount equal to so much of the deduction or of the amount paid to the Commissioner, as the case may be, as bears to the amount of the deduction or the amount paid to the Commissioner, as the case may be, the same proportion as the contribution amount bears to the withdrawn amount.
“221zt. (1) Subject to this section, the amount of a credit to which a person is entitled by virtue of this Division is a debt due and payable to the person by the Commissioner on behalf of the Commonwealth.
“(2) Where a person is entitled to a credit in respect of an amount withdrawn from a film account and no deduction has been allowed in any assessment of the person in respect of the amount expended by the person that,
by virtue of section 124zah, is taken to be included in the amount withdrawn, the Commissioner shall apply the credit in total or partial discharge of any liability to the Commonwealth of the person, being a liability arising under, or by virtue of, this Act or any other Act of which the Commissioner has the general administration.
“(3) Where a person is entitled to a credit in respect of an amount withdrawn from a film account and a deduction has been allowed in an assessment of the person in respect of an amount expended by the person that, by virtue of section 124zah, is taken to be included in the amount withdrawn—
(a) the Commissioner is not required to apply the credit until the assessment has been amended to disallow the deduction; and
(b) when the assessment has been amended to disallow the deduction, the Commissioner shall apply the credit successively—
(i) in payment of any tax payable under the amended assessment; and
(ii) in total or partial discharge of any other liability to the Commonwealth of the person, being a liability arising under, or by virtue of, this Act or any other Act of which the Commissioner has the general administration.
“(4) Where the amount, or the sum of the amounts, applied or paid by the Commissioner as a credit to which a person is entitled under this Division exceeds the amount of the credit to which the person is so entitled, the Commissioner may recover the amount of the excess as if it were income tax due and payable by that person.
“221zu. (1) Subject to sub-section (2), where a person makes, or purports to make, a deduction under sub-section 221zn (1), the person is, by force of this section, discharged from all liability to pay or account for the deduction to any person other than the Commissioner.
“(2) Sub-section (1) ceases to apply in relation to a deduction that was made, or purports to have been made, under paragraph 221zn (1) (a) if, before the amount deducted is paid to the Commissioner, a certificate under sub-section 221zn (3) in relation to the amount deducted is produced to the person who made the deduction.
“221zv. (1) All moneys received by the Commissioner in pursuance of this Division shall be paid into the Consolidated Revenue Fund.
“(2) An amount that the Commissioner is liable to pay in pursuance of this Division is payable out of the Consolidated Revenue Fund, which, to the necessary extent, is appropriated accordingly.
“221zw. A prosecution for an offence against a provision of this Division may be commenced at any time.
“221zx. (1) Charges against the same person for any number of offences against this Division may be joined in one complaint if those charges are founded on the same facts or form, or are part of, a series of offences of the same or a similar character.
“(2) Where more than one charge is included in the same complaint in pursuance of sub-section (1), particulars of each offence charged shall be set out in a separate paragraph.
“(3) All charges so joined shall be tried together unless the court considers it just that any charge should be tried separately and makes an order to that effect.
“(4) If a person is found guilty of more than one offence, the court may, if it thinks fit, impose one penalty in respect of all offences of which the person has been found guilty, but that penalty shall not exceed the sum of the maximum penalties that could be imposed if penalties were imposed for each offence separately.”.
(a) but for this sub-section, a trustee of a trust estate would be assessed and liable to pay tax in pursuance of sub-section 98 (3) or (4) of the Principal Act as amended by this Act in respect of the net income or a part of the net income of the trust estate of the year of income of the trust estate in which 18 May 1983 occurred (which income is in this sub-section referred to as the “relevant trust income”); and
(b) the whole or a part of the relevant trust income was paid to, or applied for the benefit of, a beneficiary of the trust estate before that date,
the trustee shall be assessed and is liable to pay tax in pursuance of that sub-section in respect of so much only of the relevant trust income as was not paid to, or applied for the benefit of, a beneficiary of the trust estate before that date.
(3) Where—
(a) income of a trust estate of the year of income of the trust estate in which 18 May 1983 occurred was paid to, or applied for the benefit of, a beneficiary of the trust estate before that date; and
(b) but for sub-section (2), the trustee of the trust estate would have been assessed and liable to pay tax in respect of that income,
the assessable income of the beneficiary of the year of income shall include any part of the net income of the trust estate of the year of income in which that date occurred that was paid to, or applied for the benefit of, the beneficiary (whether before or after that date).
1. No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 60, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; and Nos. 29, 38, 39, 76, 80, 106 and 123, 1982.
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