Income Tax Assessment Amendment Act (No. 6) 1982 (Cth)

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Income Tax Assessment Amendment Act (No. 6) 1982

No. 123 of 1982

An Act relating to income tax

[Assented to 13 December 1982]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Income Tax Assessment Amendment Act (No. 6) 1982.

(2) The Income Tax Assessment Act 19361 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Calculation of taxable income

3. Section 50c of the Principal Act is amended by omitting from sub-paragraph (3) (d) (i) “or 78” and substituting “, 78 or 78b”.

 

Full-year deductions and partnership deductions

4. Section 50f of the Principal Act is amended by inserting in paragraph (1) (c) “,78b” after “78”.

5. After section 78a of the Principal Act the following section is inserted:

Promoters recoupment tax

“78b. (1) Where a taxpayer who is included in an eligible promoters class in relation to a promoters taxable amount—

(a) has paid to the Commissioner an amount of promoters recoupment tax payable on that promoters taxable amount; or

(b) has paid an amount to another person by way of contribution in respect of promoters recoupment tax payable on that promoters taxable amount,

a deduction is allowable in the assessment of the taxpayer in respect of income of the year of income in which the last purchase time in relation to the scheme to which the promoters taxable amount relates occurred of an amount equal to—

(c) in a case to which paragraph (a) applies—the amount paid by the taxpayer reduced by any amount or amounts received by the taxpayer by way of contribution in respect of promoters recoupment tax payable on that promoters taxable amount; or

(d) in a case to which paragraph (b) applies—the amount paid by the taxpayer.

“(2) For the purposes of paragraph (1) (c), an amount shall be deemed to have been received by the taxpayer by way of contribution although it is not actually paid over to the taxpayer, but is re-invested, accumulated, capitalized, carried to any reserve, sinking fund or insurance fund, however designated, or otherwise dealt with on behalf of the taxpayer or as the taxpayer directs.

“(3) Where, at any time after the making of an assessment in relation to a taxpayer, the taxpayer considers that the Commissioner ought to amend the assessment to allow a deduction under this section, the taxpayer may post to or lodge with the Commissioner a request in writing for an amendment of the assessment to allow the deduction.

“(4) The Commissioner shall consider the request and shall serve on the taxpayer, by post or otherwise, a written notice of his decision on the request.

“(5) If the taxpayer is dissatisfied with the Commissioner’s decision on the request, the taxpayer may, within 60 days after service on the taxpayer 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 taxpayer relies.

“(6) The provisions of Division 2 of Part V (other than section 185) apply in relation to an objection made under sub-section (5) in like manner as those provisions apply in relation to an objection against an assessment.

“(7) For the purposes of this section, expressions that are used in this section to which particular meanings are assigned by section 3 of the Taxation (Unpaid Company Tax) Assessment Act 1982 have the respective meanings that are so assigned to them.”.

Limitation on certain deductions

6. Section 79c of the Principal Act is amended by inserting “, 78b” after “78”.

Payment of withholding tax

7. Section 128c of the Principal Act is amended—

(a) by omitting from sub-section (3) “10%” and substituting “20%”; and

(b) by omitting sub-section (4) and substituting the following sub-section:

“(4) Where additional tax is due and payable by a person under sub-section (3) in relation to an amount of withholding tax and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the withholding tax 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 withholding tax 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 additional tax or part of the additional tax; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional tax or part of the additional tax,

the Commissioner may remit the additional tax or part of the additional tax.”.

Amendment of assessments

8. Section 170 of the Principal Act is amended by omitting from sub-section (10) “or 78a” and substituting “, 78a or 78b”.

Penalty for unpaid tax

9. Section 207 of the Principal Act is amended by omitting sub-section (1) and substituting the following sub-sections:

“(1) If any tax remains unpaid after the time when it became due and payable or would, but for section 206, have become due and payable, additional tax is due and payable at the rate of 20% per annum on the amount unpaid, computed from that time or, where, under section 206, the Commissioner has granted an extension of time for payment of the tax or has permitted payment of the tax to be made by instalments, from such date as the Commissioner determines, not being a date prior to the date on which the tax was originally due and payable.

“(1a) Where additional tax is due and payable by a person under sub-section (1) in relation to an amount of tax and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the tax 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 tax 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 additional tax or part of the additional tax; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional tax or part of the additional tax,

the Commissioner may remit the additional tax or part of the additional tax.”.

Estimated income tax

10. Section 221ag of the Principal Act is amended by omitting sub-sections (6) and (7) and substituting the following sub-sections:

“(6) If the amount of income tax payable by the company in respect of its taxable income of the year of income exceeds the estimated income tax and that amount of income tax has become due and payable, then additional tax, in respect of the period that commenced on the day immediately following the date specified in the notice referred to in sub-section (1) as the date on which the amount of the instalment of tax specified in that notice was due and payable and ended on the day on which that amount of income tax became due and payable, is due and payable by the company at the rate of 20% per annum on the amount by which—

(a) the amount payable as the instalment of tax as specified in the notice referred to in sub-section (1); or

(b) an amount equal to one-quarter of the amount of income tax so payable by the company,

whichever is the less, exceeds—

(c) the adjusted instalment of tax; or

(d) in a case to which sub-section (5) applies—the amount ascertained in accordance with paragraph (b) of that sub-section,

whichever is the greater, but the Commissioner may, in a particular case, if he is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional tax or any part of the additional tax, remit the additional tax or any part of the additional tax.

“(7) Where—

(a) an amount payable by the company as an instalment of tax in respect of its income of the year of income was calculated under sub-section 221ae (1) by reference to an amount of notional tax ascertained under sub-section 221 ad (2b);

(b) the amount of income tax payable by the company in respect of its taxable income of the year of income exceeds the estimated income tax; and

(c) the amount of income tax referred to in paragraph (b) has become due and payable,

then additional tax, in respect of the period that commenced on the day immediately following the date specified in the notice in respect of that instalment of tax served on the company in accordance with section 221af as the date on which the amount payable as that instalment of tax was due and payable and ended on the day on which the amount of income tax referred to in paragraph (b) became due and payable, is due and payable by the company at the rate of 20% per annum on the amount by which—

(d) the amount that, but for the operation of sub-section 221ad (2b), would have been payable as that instalment of tax under sub-section 221ae (1);or

(e) an amount equal to one-quarter of the amount of income tax referred to in paragraph (b),

whichever is the less, exceeds—

(f) the adjusted instalment of tax; or

(g) the amount that was payable by the company as that instalment of tax, whichever is the greater, but the Commissioner may, in a particular case, if he is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional tax or any part of the additional tax, remit the additional tax or any part of the additional tax.”.

Group employers

11. Section 221f of the Principal Act is amended by omitting sub-section (10)and substituting the following sub-sections:

“(10) If any amount payable to the Commissioner by a group employer under this section remains unpaid after the time when it becomes payable, an additional amount is payable at the rate of 20% per annum on the amount unpaid computed from that time.

“(10a) Where an additional amount is payable by a person under sub-section (10) in relation to an amount payable to the Commissioner and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the amount payable to the Commissioner 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 amount payable to the Commissioner 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 additional amount or part of the additional 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 additional amount or part of the additional amount,

the Commissioner may remit the additional amount or part of the additional amount.”.

Deductions to be forwarded to Commissioner, &c.

12. Section 221yn of the Principal Act is amended—

(a) by omitting from sub-section (4) “10%” and substituting “20%”; and

(b) by omitting sub-section (5) and substituting the following sub-section:

“(5) Where an additional amount is payable by a person under sub-section (4) in relation to an amount payable to the Commissioner and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the amount payable to the Commissioner 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 amount payable to the Commissioner 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 additional amount or part of the additional 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 additional amount or part of the additional amount,

the Commissioner may remit the additional amount or part of the additional amount.”.

Deductions to be forwarded to Commissioner, &c.

13. Section 221zc of the Principal Act is amended—

(a) by omitting from sub-section (4) “10%” and substituting “20%”; and

(b) by omitting sub-section (5) and substituting the following sub-section:

“(5) Where an additional amount is payable by a person under sub-section (4) in relation to an amount payable to the Commissioner and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the amount payable to the Commissioner 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 amount payable to the Commissioner 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; and

(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the additional amount or part of the additional 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 additional amount or part of the additional amount,

the Commissioner may remit the additional amount or part of the additional amount.”.

Deferment for 2 months of increased rate of additional tax

14. (1) This section applies in relation to each of the following provisions of the Income Tax Assessment Act 1936, namely, sub-sections 128c (3), 207 (1), 221ag (6) and (7), 221f (10), 221yn (4) and 221zc (4).

(2) For the purpose of the computation of an amount of additional tax, or an additional amount, under a provision of the Income Tax Assessment Act 1936 in relation to which this section applies, in respect of any period that occurred or occurs before the expiration of 2 months after the commencement of this Act, a reference in that provision to 20% shall be construed as a reference to 10%.

Agreement to remit additional tax

15. Notwithstanding the amendment made by this Act to section 207 of the Principal Act, where, in relation to an amount of additional tax that is payable, or will become payable, by a taxpayer under that section in relation to an amount of tax payable under an assessment against which an objection has been lodged under section 185 of the Principal Act, the Commissioner has, before the commencement of this Act, entered into an agreement or arrangement with the taxpayer, or otherwise indicated his intention to the taxpayer, to remit the whole or a part of the additional tax, either unconditionally or subject to conditions, sub-section 207 (1a) of the Principal Act as amended by this Act does not apply in relation to that additional tax but the Commissioner may, for reasons that he thinks sufficient, remit that additional tax or any part of that additional tax.

NOTE

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, 108, 109, 110, 111, 154 and 175, 1981; and Nos. 29, 38, 39, 76 and 106, 1982.

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