Income Tax Regulations (Amendment) (Cth)

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Statutory Rules 1997No. 368 1

__________________

Income Tax Regulations2 (Amendment)

I, ThE Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Income Tax Assessment Act 1936.

Dated 8 December 1997.

 WILLIAM DEANE

 Governor-General

By His Excellency’s Command,

C. R. KEMP

Assistant Treasurer

____________

PART 1—PRELIMINARY

1.   Commencement

1.1   Parts 1 and 2 are taken to have commenced on 1 April 1995.

1.2   Part 3 is taken to have commenced on 24 December 1996.

1.3   Part 4 is taken to have commenced on 1 July 1997.

1.4   Part 6 commences on 1 January 1998.

1.5   Part 7 commences on 1 July 1998.

[NOTE:  Part 5 commences on gazettal: see Acts Interpretation Act 1901, s 48.]

2.   Amendment

2.1   The Income Tax Regulations are amended as set out in Parts 2 to 7.

PART 2—AMENDMENTS TAKEN TO HAVE COMMENCED ON 1 APRIL 1995

3.   Regulation 152HA (Accruals tax laws)

3.1   After paragraph 152HA (e), insert:

  • “(ea)

    paragraph CG 1 (a) and sections CG 2 to CG 13 (inclusive) of the Income Tax Act 1994 of New Zealand;”.

PART 3—AMENDMENTS TAKEN TO HAVE COMMENCED ON 24 DECEMBER 1996

4.   Schedule 12 (Approved stock exchanges for the purposes of Part XI of the Act)

4.1   After the item relating to China, insert:

Colombia

 Bogota stock exchange”.

4.2   After the item relating to Singapore, insert:

Slovakia

 Bratislava stock exchange”.

4.3   After the item relating to Spain, insert:

Sri Lanka

 Colombo stock exchange”.

4.4   After the item relating to Yugoslavia, insert:

Zimbabwe

 Zimbabwe stock exchange”.

4.5   Item relating to Yugoslavia:

Omit the item, substitute:

Yugoslavia, Federal Republic of

 Belgrade stock exchange”.

PART 4—AMENDMENTS TAKEN TO HAVE COMMENCED ON 1 JULY 1997

Division 4.1—Amendments

5.   Regulation 152A (Interpretation)

5.1   Subregulation 152A (2) (definition of “normal company tax rate”):

Omit the definition, substitute:

‘normal company tax rate’ means, for a broad-exemption listed country, the normal rate of tax, imposed under that country’s tax law, on income derived from sources in that country by a company that is a resident of that country;”.

6.   Regulation 152HA (Accruals tax laws)

6.1   Paragraph 152HA (f):

Omit the paragraph.

7.   Regulation 152J (What are “listed countries”?)

7.1   Omit the regulation, substitute:

What are “broad-exemption listed countries” and “limited-exemption listed countries”?

 “152J.(1) Each foreign country, or part of a foreign country, specified in Part 1 of Schedule 10 is a broad-exemption listed country for the purposes of Part X of the Act.

 “(2) Each foreign country, or part of a foreign country, specified in Part 2 of Schedule 10 is a limited-exemption listed country for the purposes of Part X of the Act.”.

8.   Amendments to change “listed country” to “broad-exemption listed country”

8.1   Omit from the following provisions “listed country”, substitute “broad-exemption listed country”:

Provision

Occurrences

Subregulation 152A (2), definitions of:

 “concessional rate of tax”

2

 “offshore banking business”

2

 “offshore financial business”

1

 “offshore insurance business”

2

 “offshore investment business”

2

 “offshore reinsurance business”

4

 “permanent establishment”

1

 “relevant listed country”

4

 “relevant period”

1

Subregulation 152A (3)

3

Subregulation 152A (4)

2

Subregulation 152B (1)

1

Subregulation 152B (2)

1

Paragraph 152B (3) (a)

1

Paragraph 152B (3) (b)

1

Subregulation 152C (1) (text before paragraph (a))

1

Paragraph 152C (1) (d)

1

Subparagraph 152C (1) (f) (text after subparagraph (ii))

1

Subparagraph 152C (1) (g) (text after subparagraph (ii))

1

Paragraph 152C (1) (h)

1

Subregulation 152C (3)

1

Subregulation 152C (3A) (text before paragraph (a))

1

Subparagraph 152C (3A) (a) (ii)

1

Paragraph 152C (3A) (b)

2

Subparagraph 152C (3C) (a) (i)

1

Subparagraph 152C (3C) (a) (ii)

2

Subregulation 152C (3G)

4

Subregulation 152C (5)

1

Paragraph 152D (1) (a)

3

Paragraph 152D (1) (b)

5

Paragraph 152D (1) (c)

3

Subregulation 152D (4) (text before paragraph (a))

1

Paragraph 152D (4) (b)

2

Subregulation 152D (5) (text before paragraph (a))

1

Paragraph 152D (5) (a)

2

Paragraph 152D (5) (b)

2

Subregulation 152D (6) (text before paragraph (a))

1

Paragraph 152D (6) (b)

1

Subregulation 152E (1) (text before paragraph (a))

1

Paragraph 152E (2) (c)

1

Subregulation 152E (3)

1

Subregulation 152H (1) (text before paragraph (a))

1

Paragraph 152H (1) (a)

1

Paragraph 152H (1) (b)

2

Subregulation 152H (2) (text before paragraph (a))

1

Paragraph 152H (2) (a)

1

Regulation 152HA

1

Regulation 152I

1

[NOTE:  The heading to regulation 152I of the Income Tax Regulations should be altered by omitting “listed” and substituting “broad-exemption listed”.]

9.   Schedule 10 (Listed countries for the purposes of Part X of the Act)

9.1   Omit the Schedule, substitute:

 SCHEDULE 10 Regulation 152J

LISTED COUNTRIES FOR THE PURPOSES OF PART X OF THE ACT

PART 1—BROAD-EXEMPTION LISTED COUNTRIES

Canada

France

Germany

Japan

New Zealand

United Kingdom of Great Britain and Northern Ireland

United States of America

PART 2—LIMITED-EXEMPTION LISTED COUNTRIES

Austria

Bangladesh

Belgium

Brazil

Brunei

Bulgaria

China (except the Hong Kong Special Administrative Region)

Czech Republic

Denmark

Fiji

Finland

French Polynesia

Greece

Hungary

Iceland

India

Indonesia

Ireland

Israel

Italy

Kenya

Kiribati

Korea, Republic of

Luxembourg

Malaysia

Malta

Myanmar

Netherlands

New Caledonia

Norway

Pakistan

Papua New Guinea

Philippines

Poland

Portugal

Romania

Saudi Arabia

Singapore

Solomon Islands

Spain

Sri Lanka

Sweden

Switzerland

Taiwan

Thailand

Tokelau

Tonga

Turkey

Tuvalu

Vietnam

Western Samoa

Zimbabwe

Division 4.2—Transitional

10.   Phased application of Division 4.1

10.1   The amendments made by Division 4.1 apply to matters dealt with by the Act from the time when amendments made by Schedule 1 of the Taxation Laws Amendment (Foreign Income Measures) Act 1997 apply to those matters.

PART 5—AMENDMENTS COMMENCING ON GAZETTAL

11.   Schedule 9

11.1   After item 5, insert:

“5A

Canada

An entity that operates in Canada as an international banking centre under a law of Canada

5B

Canada

An entity that operates in Canada as a non-resident owned investment corporation under a law of Canada”.

11.2   Item 6:

Omit the item, substitute:

“6

France

An entity that operates in France as a headquarters or coordination entity, or as a logistics centre, under a law of France, or by virtue of an administrative arrangement with the French authorities

6A

France

An entity that operates in France as a société d’investissement à capital variable (‘SICAV’), or as a société de capital-risques (‘SCR’), under a law of France”.

11.3   Item 7:

Omit the item, substitute:

“7

Germany

An entity that operates in Germany as a headquarters or coordination entity under a law of Germany or by virtue of an administrative arrangement with the German authorities”.

PART 6—AMENDMENTS COMMENCING ON 1 JANUARY 1998

12.   Regulation 152M (Exemption of interests in foreign trusts)

12.1   Omit the regulation.

13.   Schedule 11 (Foreign trusts for the purposes of Part XI of the Act established in countries that prohibit direct foreign investment on stock exchanges in those countries)

13.1   Omit the Schedule.

PART 7—AMENDMENTS COMMENCING ON 1 JULY 1998

14.   Schedule 9

14.1   Omit the Schedule, substitute:

 SCHEDULE 9 Paragraph 152D (1) (c)

DESIGNATED CONCESSION INCOME—ENTITIES

PART 1—INTERPRETATION

1. In this Schedule, unless the contrary intention appears, words and phrases have the same meanings as they have in Part X of the Act or Part 8A of these Regulations, as the case requires.

PART 2—COUNTRIES AND ENTITIES

Column 1

Item

Column 2

Country

Column 3

Entity

1

Canada

An entity that operates in Canada as an international banking centre under Canadian law

2

Canada

An entity that operates in Canada as a non-resident owned investment corporation under Canadian law

3

France

An entity that operates in  France as a headquarters or coordination entity, or as a logistics centre, under French law, or by virtue of an administrative arrangement with the French authorities

4

France

An entity that operates in  France as a société d’investissement à capital variable (“SICAV”), or as a société de capital-risques (“SCR”), under French law

5

Germany

An entity that operates in Germany as a headquarters or coordination entity under German law or by virtue of an administrative arrangement with the German authorities

NOTES

1. Notified in the Commonwealth of Australia Gazette on 15 December 1997.

2. Statutory Rules 1936 No. 94 as amended by 1939 Nos. 6 and 42; 1940 Nos. 138 and 289; 1941 Nos. 120 and 327; 1942 Nos. 339 and 553; 1943 Nos. 80, 127 and 151; 1944 Nos. 90 and 124; 1945 Nos. 12, 85, 169 and 192; 1946 No. 135; 1947 Nos. 77 and 173; 1948 Nos. 115 and 162; 1949 Nos. 25 and 50; 1950 Nos. 63 and 101; 1951 Nos. 136 and 157; 1952 Nos. 89, 90 and 102; 1953 Nos. 55 and 88; 1954 Nos. 11, 99 and 112; 1955 No. 23; 1956 Nos. 34, 35 (repealed by 1956 No. 96) and 96; 1957 Nos. 39 and 74; 1958 Nos. 27 and 70; 1959 Nos. 25 and 81; 1960 Nos. 44 and 74; 1962 Nos. 15, 44 and 112; 1963 Nos. 53 and 92; 1964 Nos. 74, 121 and 134; 1965 Nos. 133 and 187; 1966 No. 156; 1967 Nos. 112 and 126; 1968 No. 1; 1969 No. 68; 1970 Nos. 43, 126, 168 and 213; 1971 Nos. 120 and 148; 1972 Nos. 48, 50

NOTES—continued

 and 137; 1973 No. 266; 1974 Nos. 193, 226 and 267; 1975 Nos. 88, 89, 99, 101 and 213; 1976 Nos. 115, 188 and 212; 1977 Nos. 77, 107 and 248; 1978 Nos. 85 and 193; 1979 Nos. 126 and 239; 1980 Nos. 86, 137 and 149; 1981 Nos. 116 and 360; 1982 Nos. 115, 128, 267 and 280; 1983 Nos. 79, 87, 111, 213 and 319; 1984 Nos. 172, 286, 408 and 416; 1985 Nos. 21, 148, 274 and 278; 1986 No. 325; Acts Nos. 28, 49 and 112, 1986; Statutory Rules 1987 Nos. 92 and 120; 1988 Nos. 196, 208, 262, 381, 382, 383 and 384; Act No. 97, 1988; Statutory Rules 1989 Nos. 67, 80, 115 (as amended by 1989 No. 358), 123, 124, 141, 250 and 358; 1990 Nos. 19, 126, 151, 152, 192, 347, 390, 398 and 468; 1991 Nos. 20, 121, 156, 158, 240, 300, 301, 390 and 391; 1992 Nos. 38, 129, 216, 313 and 449; 1993 Nos. 15, 46, 47, 65, 91, 159, 202, 216, 275, 288 and 370; 1994 Nos. 95, 96, 127, 174, 195, 219, 399, 412, 460, 461 and 462; 1995 Nos. 58, 107, 139, 152, 153, 194, 316, 356, 381, 382, 383 and 447; Act No. 30, 1995; Statutory Rules 1996 Nos. 38, 56, 114, 124, 133, 150, 185, 274, 320, 345 and 346; 1997 Nos. 68, 141, 148, 169, 176, 191, 196, 197, 270 and 338.

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