Taxation Laws Amendment Act (No. 2) 1987 (Cth)
This compilation was prepared on 24 September 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
TABLE OF PROVISIONS
PART I – PRELIMINARY
Section
Short title [
Commencement [
PART II - AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION
(ADMINISTRATION) ACT 1969
Principal Act
Interpretation
PART III - AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAX
(INSURANCE BUSINESS) ACT 1969
Principal Act
Exemptions
Application
Principal Act
Dividends
Holding of car
Holding period of car
Deemed specification of matters in taxpayer's return
Deemed specification of matters in odometer records
Unsigned or fraudulent entries in log book records
Reasonable estimate of underlying business percentage
Log book year of income
Business percentage established during applicable log book
Replacement cars
Re-acquisition etc. of cars
17. Insertion of new sections:
Deductions not allowable for car expenses unless
Deductions not allowable for car expenses incurred in a log
book year of income unless log book records
maintained
Deductions not allowable for car expenses incurred in a
non-log book year of income unless log book records
Amount of deduction allowable for car expenses - log book
Nominated business percentage to be reduced if it exceeds
business percentage established during applicable
19. Deduction for car expenses where income-producing use exceeds 5,000
20. Deduction for car expenses where income-producing use does not exceed
27. Insertion of new section:
Phasing-out dividends
40. Insertion of new section:
41. Insertion of new section:
43. Insertion of new Division:
160ARDA. General application of Part in relation to corporate trust
160ARDB. Company tax to include tax payable by current corporate
160ARDC. Certain corporate trust dividends to be treated as
160ARDF. Franking credit where franked dividends received through
160ARDH. Residence requirement for franking deficit tax to offset
160ARDJ. No extra amount assessable under section 160AQT to trustee
160ARDK. No rebate under section 160AQX or 160AQZ to trustee of
46. Insertion of new section:
Penalty tax for over-estimating business
PART V - AMENDMENT OF THE PAY-ROLL TAX (TERRITORIES) ASSESSMENT
PART VII - AMENDMENT OF CERTAIN ACTS RELATING TO BANK ACCOUNT
PART VIII - AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE
TRANSFER OF CERTAIN AUSTRALIAN CAPITAL TERRITORY TAXES AND
PART IX - AMENDMENT OF CERTAIN ACTS RELATING TO THE
COMMISSIONER'S INFORMATION GATHERING AND ACCESS POWERS
SCHEDULE 1
SCHEDULE 2
AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER OF CERTAIN
SCHEDULE 3
AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER OF AUSTRALIAN
SCHEDULE 4
AMENDMENTS RELATING TO THE COMMISSIONER'S INFORMATION GATHERING AND
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 2) 1987.
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 2
Commencement [
2. (1) Subject to this section, this Act shall come into operation on the
day on which it receives the Royal Assent.
(2) Parts II and III shall be deemed to have come into operation on 1
January 1987.
(3) If the Taxation Laws Amendment Act 1987 has not commenced before the day
on which this Act receives the Royal Assent, section 45 of this Act shall come
into operation on the date of commencement of that Act.
(4) Sections 36 to 43 (inclusive) shall come into operation, or be deemed to
have come into operation, immediately after the commencement of section 1 of
the Taxation Laws Amendment (Company Distributions) Act 1987.
(5) Part V shall be deemed to have come into operation on 1 July 1986.
(6) Subject to subsection (7), Part VII shall come into operation on the
commencement of Part VIII of the Cheques and Payment Orders Act 1986.
(7) Subsection 57 (1) and the amendments of the Bank Account Debits Tax
Administration Act 1982 made by Part VII inserting the definition of "account
transaction" in subsection 3 (1) of that Act and inserting sections 3A and 3B
in that Act shall be deemed to have come into operation on 6 May 1987.
(8) Part VIII shall come into operation on a day, or respective days, to be
fixed by Proclamation.
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 3
Principal Act
3. The Australian Capital Territory Taxation (Administration) Act 1969*1* is
in this Part referred to as the Principal Act.
For previous amendments, see No. 216, 1973;
Nos. 61, 92 and 127, 1981; No. 127, 1982; No. 39, 1983; No. 123, 1984; Nos.
123 and 168, 1985; and Nos. 48 and 154, 1986.
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 4
Interpretation
4. Section 4 of the Principal Act is amended by inserting in subsection (1)
the following definitions in their respective appropriate alphabetical
positions (determined on a letter-by-letter basis):
"'aircraft' means a machine or apparatus that can derive support in the
atmosphere from the reactions of the air or from buoyancy, but does not
include an air-cushion vehicle;
'international trade insurance' means:
(a) insurance of freight against loss or damage in the course of,
or incidental to, international transport of the freight;
(b) insurance of an aircraft or ship against loss or damage during
a particular period when the aircraft or ship is under construction or
undergoing refitting, maintenance or repairs where, at the time the insurance
was effected, the aircraft or ship was intended by the owner to be used wholly
or principally for the international transport of freight for an indefinitely
continuing period commencing immediately after the completion of the
construction, refitting, maintenance or repairs, as the case may be;
(c) insurance of an aircraft or ship against loss or damage in the
course of, or incidental to, a particular journey or journeys where, at the
time the insurance was effected, it was intended by the owner that the journey
or journeys would be wholly or principally for the international transport of
freight; or
(d) insurance of an aircraft or ship against loss or damage during
a particular period where, at the time the insurance was effected, the
aircraft or ship was intended by the owner to be used during that period
wholly or principally for the international transport of freight;
'international transport', in relation to freight, means the transport in,
or in connection with, trade or commerce, of the freight between:
(a) a place in a foreign country; and
(b) a place in:
(i) another foreign country;
(ii) Australia; or
(iii) an external Territory;
'ship' means a vessel or boat of any description, and includes:
(a) an air-cushion vehicle; and
(b) a floating structure;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 5
Principal Act
5. The Australian Capital Territory Tax (Insurance Business) Act 1969*2* is
in this Part referred to as the Principal Act.
For previous amendments, see No. 216, 1973;
Nos. 125 and 130, 1981; No. 125, 1982; and No. 168, 1985.
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 6
Exemptions
6. Section 6 of the Principal Act is amended by inserting after paragraph
(a) the following paragraph:
"(b) international trade insurance;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 7
Application
7. The amendment made by this Part applies in relation to the premiums
received by an insurer in respect of insurance effected by the insurer on or
after the date of commencement of this section.
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 8
Principal Act
8. The Income Tax Assessment Act 1936*3* is in this Part referred to as the
Principal Act.
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,
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, 70, 87 and 148, 1968; Nos. 18, 93 and 101,
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
19, 24,
57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and
175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49,
51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;
No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123 and 168,
1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 49, 51, 52,
90, 109, 112 and 154, 1986; and Nos. 000 and 000, 1987.
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 9
Dividends
9. Section 44 of the Principal Act is amended by omitting subsections (2)
and (2D).
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 10
Rebate on dividends
10. Section 46 of the Principal Act is amended:
(a) by inserting after subsection (1) the following subsection:
"(1AA) The dividends that:
(a) are paid to a shareholder in the year of income commencing
on 1 July 1986 or a subsequent year of income; and
(b) apart from this subsection, would be private company
dividends;
shall be taken for the purposes of this section to be private company
dividends only to the extent of the amount of phasing-out dividends included
in the distributable income of the shareholder of the year of income concerned
for the purposes of Division 7.";
(b) by omitting subsection (7) and substituting the following subsection:
"(7) For the purposes of subsections (2) and (3), the part of
any dividends that is included in the taxable income of a shareholder of the
year of income is:
(a) if the taxable income is equal to or less than the amount of
the dividends included in the assessable income of the shareholder of the year
of income-the whole of the taxable income; or
(b) in any other case-so much of the taxable income as equals
the amount (if any) of the dividends included in the assessable income of the
shareholder of the year of income."; and
(c) by omitting subsection (9).
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 11
Rebate on dividends paid as part of dividend stripping operation
11. Section 46A of the Principal Act is amended by inserting after
subsection (1) the following subsection:
"(1A) The dividends that:
(a) are paid to a shareholder in the year of income commencing on 1 July
1986 or a subsequent year of income; and
(b) apart from this subsection, would be private company dividends; shall be
taken for the purposes of this section to be private company dividends only to
the extent of the amount of phasing-out dividends included in the
distributable income of the shareholder of the year of income concerned for
the purposes of Division 7.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 12
Distributions by liquidator
12. Section 47 of the Principal Act is amended by omitting from subsection
(3) "does not include the paid-up value of shares which have been issued by
the company in satisfaction of dividends which have been paid out of profits
arising from the revaluation of assets not acquired for the purposes of
re-sale at a profit but".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 13
Domestic losses of previous years
13. Section 80 of the Principal Act is amended by omitting subsection (3A).
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 14
Interpretation
14. Section 82KT of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of "retention period" and
substituting the following definition:
"'retention period', in relation to an expense incurred by a
taxpayer during a year of income, means the period that:
(a) commences on:
(i) in the case of a car expense:
(A) that is in respect of fuel or oil and that
was incurred when the car concerned was owned or leased by the taxpayer at a
time during the year of income; and
(B) where documentary evidence of the expense was not obtained by
or
on behalf of the taxpayer;
whichever of the following times is applicable:
(C) if the taxpayer elects that subsection 82KW (2) apply in
relation
to the car in relation to the year of income - the commencement of the holding
period within the meaning of that subsection or, if the first use of the car
in the course of producing assessable income of the taxpayer occurred during
that holding period, the commencement of that use;
(D) in any other case - the commencement of the holding period
within
the meaning of section 82KUA or, if the first use of the car in the course of
producing assessable income of the taxpayer occurred during that holding
period, the commencement of that use; or
(ii) in any other case - the day on which documentary evidence of the
expense was obtained by or on behalf of the taxpayer; and
(b) ends:
(i) in a case to which subparagraph (ii) does not
apply - at the end of the period of:
(A) if the expense is a car expense and, at any time during the
year
of income, the car to which the expense relates is used in the course of
producing assessable income of the taxpayer, not being salary or wages - 7
years;
(B) if the expense is a travel expense and, while undertaking the
travel to which the expense relates, the taxpayer engages in an activity in
the course of producing assessable income of the taxpayer, not being salary or
wages - 7 years; or
(C) in any other case - 3 years and 6 months;
that commences on the day on which the taxpayer lodges a return of income of
the taxpayer of the year of income; or
(ii) if, at the end of that period of 7 years, or 3 years and 6
months,
as the case may be, an objection, or a request for amendment of an assessment
(not being an objection), relating to the expense or to matters including the
expense, or a review or appeal arising out of such an objection, has not been
determined or otherwise finally disposed of - on the day on which the
objection (and any review or appeal arising out of it), the request, or the
review or appeal (and any appeal or further appeal arising out of it), as the
case may be, has or have been determined or so disposed of;";
(b) by omitting from subsection (1) the definition of "relevant car
documents";
(c) by inserting in subsection (1) the following definitions in their
respective appropriate alphabetical positions (determined on a letter-by-
letter basis):
" 'applicable log book period', in relation to a car held by a taxpayer
during a period (in this definition called the 'holding period') in a year of
income, means:
(a) if the holding period is a period of less than 12
weeks - the holding period;
(b) if the holding period is a period of not less than 12 weeks and
there
is a continuous period (in this paragraph called a 'concurrent holding
period') of not less than 12 weeks in the year of income during which the
taxpayer held both:
(i) the car; and
(ii) one or more other log book cars;
a continuous period of not less than 12 weeks that:
(iii) begins and ends:
(A) if there is a continuous period (in this sub-subparagraph
called
the 'sole holding period') of not less than 12 weeks in the year of income
during which the taxpayer held the car and no other log book cars (other than
rental log book cars) and the sole holding period commenced after the end of
the concurrent holding period or, if there are 2 or more concurrent holding
periods, the last of those concurrent holding periods - during the sole
holding period; and
(B) in any other case - during the concurrent holding period or, if
there are 2 or more concurrent holding periods, during the last of those
concurrent holding periods;
(iv) in a case to which sub-subparagraph (iii) (B) applies - is the
same as the applicable log book period for the other log book car, or each of
the other log book cars, so held during the concurrent holding period
concerned; and
(v) in all cases - is specified by the taxpayer in his or her return
for the year of income; or
(c) in any other case - a continuous period of not less than 12 weeks
that:
(i) begins and ends during the holding period; and
(ii) is specified by the taxpayer in his or her return
for the year of income;
'exclusive business use deduction', in relation to a car expense
incurred by a taxpayer in a year of income in relation to a car held by the
taxpayer during a period (in this definition called the 'holding period') in
the year of income, means the deduction that, apart from this Subdivision,
would have been allowable to the taxpayer under this Act in respect of the car
expense if all use of the car by the taxpayer during the holding period had
been exclusively in the course of producing assessable income of the
taxpayer;
'log book car', in relation to a taxpayer, in relation to a year of
income, means a car held by the taxpayer during a period (in this definition
called the 'holding period') in the year of income where:
(a) the car was used, at any time during the holding
period, in the course of producing assessable income of the taxpayer; and
(b) the taxpayer did not elect that subsection 82KW (2)
or (3) or 82KX (1) apply in relation to the car in relation to the year of
income;
'log book records', in relation to a car held by a taxpayer, in
relation to a period, means a daily log book or similar document in which, in
respect of each journey:
(a) that is undertaken in the car during the period in the
course of producing assessable income of the taxpayer; and
(b) that the taxpayer, or a person acting on behalf of the taxpayer,
chooses to record in the document for the purposes of demonstrating the
pattern of use of the car during the period;
an entry setting out particulars of:
(c) the date on which the journey began and the date on
which it ended;
(d) the respective odometer readings of the car at the
beginning and end of the journey;
(e) the number of kilometres travelled by the car in the
course of the journey;
(f) the purpose or purposes of the journey;
(g) the name of the person, or the names of the persons,
driving the car on that journey;
(h) the date on which the entry is made; and
(j) the name of the person by whom the entry is made;
is made in the English language at, or as soon as reasonably practicable
after, the end of the journey, and that, in relation to each such entry so
made, is signed, at the time when the entry is made, by the person who made
the entry;
'long-term log book car', in relation to a taxpayer, in relation to
a year of income, means a log book car in relation to the taxpayer in relation
to the year of income other than:
(a) a rental log book car; or
(b) a car while it is held by the taxpayer pending its replacement, for
use in the course of producing assessable income of the taxpayer, by another
car;
'low business kilometre car', in relation to a taxpayer, in relation
to a year of income, means a car held by the taxpayer during a period (in this
definition called the 'holding period') in the year of income where the number
calculated in accordance with the formula:
DY
---
DHP
where:
DHP is the number of days in the holding period;
DY is the number of days in the year of income; and
BK is the number of whole kilometres travelled by the car during the
holding period in the course of producing assessable income of the taxpayer;
does not exceed 5,000;
'nominated business percentage', in relation to a car held by a
taxpayer during a period (in this definition called the 'holding period') in a
year of income, means a percentage that represents an estimate made by the
taxpayer of the underlying business percentage applicable to the car in
relation to the taxpayer for the holding period, having regard to all relevant
matters including, but without limiting the generality of the foregoing:
(a) any log book records, odometer records or other
records maintained by or on behalf of the taxpayer; and
(b) any variations in the pattern of use of the car;
'odometer records', in relation to a car, in relation to a period, means a
document:
(a) in which particulars of:
(i) the odometer reading of the car at the
commencement of the period or, if the first use of the car in the course of
producing assessable income of the taxpayer occurred during the period, at the
commencement of that use;
(ii) the odometer reading of the car at the end of
the period or, if the last use of the car in the course of producing
assessable income of the taxpayer occurred during the period, at the end of
that use;
(iii) if paragraph 82KTJ (1) (b) applies with effect
from a particular date - the odometer readings of both the replacement car and
of the original car referred to in that paragraph, as at that date;
(iv) the respective dates on which the entries are
made; and
(v) the name of the person, or the names of the
respective persons, by whom the entries are made;
are entered in the English language, and that is signed by the person or
persons referred to in subparagraph (v), at, or as soon as reasonably
practicable after, the respective times to which those odometer readings
relate; and
(b) in which particulars of the make, model and, if the
car has an internal combustion engine, the engine capacity (expressed in cubic
centimetres) of the car or, if paragraph 82KTJ (1) (b) applies, of both the
replacement car and the original car referred to in that paragraph, are
entered in the English language;
'rental log book car', in relation to a taxpayer, in relation to a
year of income, means a log book car in relation to the taxpayer in relation
to the year of income where:
(a) the car is leased to the taxpayer under an agreement
of a kind ordinarily entered into by a person taking cars on hire
intermittently as occasion requires, on an hourly, daily, weekly or other
short-term basis; and
(b) the car has neither been, nor may reasonably be
expected to be, on hire under successive agreements of a kind that result in
substantial continuity of the hiring of the car;
'underlying business percentage', in relation to a car held by a
taxpayer during a period (in this definition called the 'holding period') in a
year of income, means the percentage calculated in accordance with the
formula:
BK
100 X --
TK
where:
BK is the number of whole kilometres travelled by the car
during the holding period in the course of producing assessable income of the
taxpayer; and
TK is the number of whole kilometres travelled by the car
during the holding period."; and
(d) by inserting in paragraph (6) (b) "section 82KUD and" after "other
than".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 15
15. After section 82KT of the Principal Act the following sections are
inserted:
Holding of car
"82KTA. (1) A reference in this Subdivision to a car held by a taxpayer is a
reference to a car owned or leased by the taxpayer for use in the course of
producing assessable income of the taxpayer (whether or not the car was used
for any other purpose while it was so owned or leased).
"(2) A reference in this Subdivision to a period during which a car was held
by a taxpayer is a reference to a period during which the car was continuously
held by the taxpayer.
Holding period of car
"82KTB. Unless the contrary intention appears, a reference in this
Subdivision to a period in a year of income during which a taxpayer held a car
is a reference to the period that:
(a) commences on whichever of the following times is applicable:
(i) if the taxpayer held the car at the time of commencement
of the year of income - that time;
(ii) in any other case - the time in the year of income when the
taxpayer commenced to hold the car; and
(b) ends at whichever of the following times is applicable:
(i) if the taxpayer continued to hold the car until the time of
the end of the year of income - that time;
(ii) in any other case - the time in the year of income when the
taxpayer ceased to hold the car.
Deemed specification of matters in taxpayer's return
"82KTC. Where:
(a) a taxpayer furnishes a return for a year of income; and
(b) the taxpayer fails, through inadvertance, to specify in the return any
or all of the following matters:
(i) a period of a kind mentioned in the definition of 'applicable
log book period' in subsection 82KT (1);
(ii) a nomination of the kind mentioned in subsection 82KTJ (1)
or particulars of such a nomination;
(iii) a percentage of a kind mentioned in section 82KUB or
82KUC;
the Commissioner may determine that a period, nomination, particular or
percentage of that kind specified by the taxpayer in a document lodged with
the Commissioner shall be treated, for the purposes of this Subdivision, as if
it had been specified by the taxpayer in that return.
Deemed specification of matters in odometer records
"82KTD. Where:
(a) odometer records are purportedly maintained by or on behalf of a
taxpayer in relation to a car for a period; and
(b) the taxpayer, or a person acting on behalf of the taxpayer, fails,
through inadvertence, to enter, as mentioned in the definition of 'odometer
records' in subsection 82KT (1), particulars of the make, model and engine
capacity of the car or, if paragraph 82KTJ (1) (b) applies, of both the
original car and the replacement car referred to in that paragraph;
the Commissioner may determine that particulars of that kind specified by the
taxpayer in a document lodged with the Commissioner shall be treated, for the
purposes of this Subdivision, as if they had been entered in those odometer
records.
Unsigned or fraudulent entries in log book records
"82KTE. For the purposes of this Subdivision, where log book records
maintained by or on behalf of a taxpayer for a period in respect of a car held
by the taxpayer purport to contain an entry of the kind referred to in the
definition of 'log book records' in subsection 82KT (1) but:
(a) the entry is not signed as mentioned in that definition; or
(b) the entry is false or misleading in a material particular;
the pattern of use of the car purporting to be shown by the log book records
shall be determined as if that entry had not been made.
Reasonable estimate of underlying business percentage
"82KTF. For the purposes of this Subdivision, the percentage that represents
a reasonable estimate of the underlying business percentage applicable to a
car held by a taxpayer during a period in a year of income shall be determined
having regard to all relevant matters including, but without limiting the
generality of the foregoing:
(a) any log book records, odometer records or other records maintained by or
on behalf of the taxpayer; and
(b) any variations in the pattern of use of the car.
Log book year of income
"82KTG. For the purposes of this Subdivision, a year of income (in this
section called the 'current year of income') is a log book year of income of a
taxpayer in relation to a particular car (in this section called the
'deductible car') if, and only if:
(a) the current year of income is the first year of income in which section
82KUD is applied for the purpose of determining the amount of the deductions
allowable under this Act in respect of car expenses incurred by the taxpayer
in relation to the deductible car;
(b) the taxpayer elects that the current year of income be treated as a log
book year of income of the taxpayer in relation to the deductible car;
(c) the taxpayer has elected that subsection 82KW (2) or (3) or 82KX (1)
apply in relation to the deductible car in relation to the preceding year of
income;
(d) both of the following conditions are satisfied:
(i) section 82KUD is applied for the purpose of determining the
amount of the deductions allowable under this Act in respect of car expenses
incurred by the taxpayer in the preceding year of income that relate to one or
more cars (but not counting any car that was a rental log book car or any car
held at a time in the year of income pending its replacement, for use in the
course of producing assessable income of the taxpayer, by another log book
car);
(ii) that section is applied for the purpose of determining the
deductions allowable under this Act in respect of car expenses incurred by the
taxpayer in the current year of income that relate to a number of cars (but
not counting any car that was a rental log book car or any car held at a time
in the year of income pending its replacement, for use in the course of
producing assessable income of the taxpayer, by another log book car) that
exceeds the number of cars referred to in subparagraph (i);
(e) both of the following conditions are satisfied:
(i) the taxpayer owned or leased the deductible car during a
period in the preceding year of income;
(ii) a deduction was not allowable to the taxpayer:
(A) in respect of a car expense that related to the
deductible car and was incurred by the taxpayer in the preceding year of
income; or
(B) under subsection 82KW (3) or section 82KX in relation
to the deductible car in relation to the preceding year of income;
(f) the preceding year of income was a log book year of income of the
taxpayer in relation to the deductible car and either of the following
conditions is satisfied:
(i) subparagraph 82KUB (a) (i), (ii), (iii) or (iv) applied in
relation to the deductible car in relation to the preceding year of income;
(ii) the conditions set out in subparagraphs 82KUB (b) (iii) and
(iv) or the conditions set out in subparagraphs 82KUB (c) (i) and (ii), as
the case may be, were not satisfied in relation to the deductible car in relation
to the preceding year of income;
(g) the preceding year of income was not a log book year of income of the
taxpayer in relation to the deductible car and any of the following conditions
is satisfied:
(i) the condition set out in paragraph 82KUC (a) was not satisfied
in relation to the deductible car in relation to the preceding year of
income;
(ii) the condition set out in sub-subparagraph 82KUC (b) (i) (A)
or (B) or subparagraph 82KUC (b) (ii), as the case may be, was not satisfied
in relation to the deductible car in relation to the preceding year of
income;
(iii) both of the following conditions are satisfied:
(A) the taxpayer specified (otherwise than by virtue of
section 82KUE), in his or her return for the preceding year of income, a
percentage of the kind mentioned in subparagraph 82KUC (b) (iii);
(B) the percentage calculated in accordance with the
formula referred to in that subparagraph exceeded 10%; or
(h) the Commissioner causes a notice in writing to be served on the taxpayer
before the commencement of the current year of income requiring the taxpayer
to treat the current year of income as a log book year of income of the
taxpayer in relation to the deductible car.
Business percentage established during applicable log book period
"82KTH. A reference in this Subdivision to the business percentage
established during an applicable log book period in relation to a car held by
a taxpayer during a period (in this section called the 'holding period') in a
year of income is a reference to the underlying business percentage that would
apply to the car in relation to the taxpayer for the holding period if it were
assumed that the actual pattern of use of the car throughout the holding
period were the same as the pattern of use of the car purporting to be shown
by the log book records and odometer records maintained by or on behalf of the
taxpayer for the applicable log book period.
Replacement cars
"82KTJ. (1) Subject to subsection (3), for the purposes of the application
of this Subdivision (other than section 82KW, 82KX or 82KY) to a car expense,
where a taxpayer, in his or her return for a year of income, nominates a
particular car (in this section called the 'replacement car') as having
replaced another car (in this section called the 'original car') with effect
from a specified date in the year of income:
(a) the original car shall be treated, with effect from that date, as a
different car; and
(b) the replacement car shall be treated, with effect from that date, as the
same car as the original car.
"(2) A nomination shall specify the make, model and registration number (if
any) of the original car and of the replacement car.
"(3) Subsection (1) does not apply for the purposes of determining the
deduction that, apart from this Subdivision, would have been allowable under
this Act in respect of a car expense.
"(4) For the purposes of this Subdivision:
(a) a car is a predecessor of a second car if the second car replaced the
first-mentioned car for use in the course of producing assessable income of
the taxpayer concerned; and
(b) a car is a predecessor of a second car if a third car is a predecessor
of of the second car and the first-mentioned car is a predecessor of the third
car (including a case where the first-mentioned car is a predecessor of the
third car by another application or applications of this paragraph).
"(5) For the purposes of this Subdivision, a car shall not be treated as a
car held by a taxpayer pending its replacement, for use in the course of
producing assessable income of the taxpayer, by another car unless both cars
are held at the same time.
"(6) For the purposes of subparagraphs 82KUB (a) (ii) and (iii) and (b) (i)
and (ii), where:
(a) at a particular time, a taxpayer ceases to hold a particular car (in
this subsection called the 'original car'); and
(b) after that time, the taxpayer commences to hold another car as a
replacement, for use in the course of producing assessable income of the
taxpayer, for the original car;
the taxpayer shall be treated as having held the original car until that later
time.
Re-acquisition etc. of cars
"82KTK. (1) Subject to subsection (2) of this section and to section 82KTJ,
for the purposes of the application of this Subdivision (other than section
82KW, 82KX or 82KY) to a car expense, where:
(a) a taxpayer holds a car during a period (in this subsection called the
'current period'); and
(b) the taxpayer held the car during a period that ended, or during 2 or
more periods each of which ended, before the commencement of the current
period;
the car shall be treated as a different car in each of the periods referred to
in this subsection.
"(2) Subsection (1) does not apply for the purposes of determining the
deduction that, apart from this Subdivision would have been allowable under
this Act in respect of a car expense.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 16
Documentary evidence
16. Section 82KU of the Principal Act is amended by omitting from subsection
(10) "paragraph 82KV (1) (a) or 82KW (2) (b)" and substituting "paragraph
82KUA (b) or 82KW (2) (ba)".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 17
17. After section 82KU of the Principal Act the following sections are
inserted:
Deductions not allowable for car expenses unless documentary evidence
obtained
etc.
"82KUA. Subject to this Subdivision, where a car is held by a taxpayer
during a period (in this section called the 'holding period') in a year of
income, a deduction is not allowable under this Act in respect of a car
expense incurred by the taxpayer in the year of income in relation to the car
unless:
(a) if the car expense is in respect of fuel or oil:
(i) odometer records are maintained by or on behalf of the
taxpayer for the holding period; or
(ii) documentary evidence of the expense is obtained by or on
behalf of the taxpayer; or
(b) if the car expense is not in respect of fuel or oil - documentary
evidence of the expense is obtained by or on behalf of the taxpayer.
Deductions not allowable for car expenses incurred in a log book year of
income unless log book records and odometer records etc. are maintained
"82KUB. Subject to this Subdivision, where a car (in this section called the
'deductible car') is held by a taxpayer during a period (in this section
called the 'holding period') in a year of income (in this section called the
'current year of income') that is a log book year of income of the taxpayer in
relation to the deductible car, a deduction is not allowable under this Act in
respect of a car expense incurred by the taxpayer in the current year of
income in relation to the deductible car unless:
(a) if the deductible car is not a rental log book car and any of the
following subparagraphs applies:
(i) the taxpayer commenced to hold the deductible car during
the last 12 weeks of the current year of income;
(ii) all of the following sub-subparagraphs apply:
(A) on the last day (in this subparagraph called the 'last
holding day') in the current year of income when the taxpayer held the
deductible car (otherwise than pending its replacement, for use in the course
of producing assessable income of the taxpayer, by another log book car), the
taxpayer held no other cars that were long-term log book cars;
(B) there was an earlier day in the current year of income
when the taxpayer held both the deductible car (or its predecessor) and one or
more other cars that were long-term log book cars;
(C) the period in the current year of income, being the
period that ended on the last holding day and that consisted of a number of
consecutive days, where, on each of those days, the taxpayer held the
deductible car (or its predecessor) and no other car that was a long-term log
book car, is less than 12 weeks;
(D) it would be concluded that the taxpayer did not
commence, or cease, to hold any car for the sole or dominant purpose of
ensuring that the maintenance of log book records or odometer records, or of
log book records and odometer records, would not be required as a condition of
a deduction being allowable under this Act in respect of a car expense
incurred in relation to the deductible car, or in relation to the deductible
car and one or more other log book cars;
(iii) all of the following sub-subparagraphs apply:
(A) on the last day (in this subparagraph called the 'last
holding day') in the current year of income when the taxpayer held the
deductible car (otherwise than pending its replacement, for use in the course
of producing assessable income of the taxpayer, by another log book car), the
taxpayer held one or more other cars that were long-term log book cars;
(B) there was an earlier day in the current year of income
when the taxpayer held one or more long-term log book cars that did not wholly
consist of the deductible car (or its predecessor) and that other car (or its
predecessor) or those other cars (or their predecessors), as the case may be;
(C) the period in the current year of income, being the
period that ended on the last holding day and that consists of a number of
consecutive days where, on each of those days, the taxpayer held the
deductible car (or its predecessor) and that other car (or its predecessor) or
those other cars (or their predecessors), as the case may be, is less than 12
weeks;
(D) it would be concluded that the taxpayer did not
commence, or cease, to hold any car for the sole or dominant purpose of
ensuring that the maintenance of log book records or odometer records, or of
log book records and odometer records, would not be required as a condition of
a deduction being allowable under this Act in respect of a car expense
incurred in relation to the deductible car, or in relation to the deductible
car and one or more other log book cars;
(iv) the Commissioner is satisfied, having regard to the taxpayer's
circumstances, that it would be unreasonable to expect log books and odometer
records in relation to the deductible car to have been maintained by or on
behalf of the taxpayer for an applicable log book period in relation to the
deductible car;
the taxpayer, in his or her return for the current year of income, specifies a
percentage as the nominated business percentage applicable to the deductible
car in relation to the taxpayer for the holding period;
(b) if paragraph (a) does not apply, the deductible car is not a rental log
book car and either of the following subparagraphs applies:
(i) all of the following sub-subparagraphs apply:
(A) on the last day (in this subparagraph called the 'last
holding day') in the current year of income when the taxpayer held the
deductible car (otherwise than pending its replacement, for use in the course
of producing assessable income of the taxpayer, by another log book car), the
taxpayer held no other cars that were long-term log book cars;
(B) there was an earlier day in the current year of income
when the taxpayer held both the deductible car (or its predecessor) and one or
more other cars that were long-term log book cars;
(C) the period in the current year of income, being the
period that ended on the last holding day and that consisted of a number of
consecutive days, where, on each of those days, the taxpayer held the
deductible car (or its predecessor) and no other car that was a long-term log
book car, is not less than 12 weeks;
(D) it would be concluded that the taxpayer did not
commence, or cease, to hold any car for the sole or dominant purpose of
ensuring that the taxpayer could, in his or her return for a subsequent year
of income, specify a percentage as the nominated business percentage
applicable to the deductible car or specify percentages as the nominated
business percentages respectively applicable to the deductible car and one or
more other log book cars, without being limited to the business percentage
established during the applicable log book period for the current year of
income;
(ii) all of the following sub-subparagraphs apply:
(A) on the last day (in this subparagraph called the 'last
holding day') in the current year of income when the taxpayer held the
deductible car (otherwise than pending its replacement, for use in the course
of producing assessable income of the taxpayer, by another log book car), the
taxpayer held one or more other cars that were long-term log book cars;
(B) there was an earlier day in the current year of income
when the taxpayer held one or more long-term log book cars that did not wholly
consist of the deductible car (or its predecessor) and that other car (or its
predecessor) or those other cars (or their predecessors), as the case may be;
(C) the period in the current year of income, being the
period that ended on the last holding day and that consists of a number of
consecutive days where, on each of those days, the taxpayer held the
deductible car (or its predecessor) and that other car (or their predecessors)
or those other cars (or their predecessors), as the case may be, is not less
than 12 weeks;
(D) it would be concluded that the taxpayer did not
commence, or cease, to hold any car for the sole or dominant purpose of
ensuring that the taxpayer could, in his or her return for a subsequent year
of income, specify a percentage as the nominated business percentage
applicable to the deductible car or specify percentages as the nominated
business percentages respectively applicable to the deductible car and one or
more other log book cars, without being limited to the business percentage
established during the applicable log book period for the current year of
income;
both of the following conditions are satisfied:
(iii) log book records and odometer records are maintained by or
on behalf of the taxpayer for the applicable log book period in relation to
the deductible car;
(iv) the taxpayer, in his or her return for the current year of
income, specifies a percentage as the nominated business percentage applicable
to the deductible car in relation to the taxpayer for the holding period; or
(c) in any other case - both of the following conditions are satisfied:
(i) log book records and odometer records are maintained by or
on behalf of the taxpayer for the applicable log book period in relation to
the deductible car; and
(ii) the taxpayer, in his or her return for the current year of
income, specifies a percentage as the nominated business percentage applicable
to the deductible car in relation to the taxpayer for the holding period, not
being a percentage that exceeds the business percentage established during the
applicable log book period.
Deductions not allowable for car expenses incurred in a non-log book year
of income unless log book records kept in previous log book year of
income etc.
"82KUC. Subject to this Subdivision, where a car is held by a taxpayer
during a period (in this section called the 'holding period') in a year of
income (in this section called the 'current year of income') that is not a log
book year of income of the taxpayer in relation to the car, a deduction is not
allowable under this Act in respect of a car expense incurred by the taxpayer
in the current year of income in relation to the car unless:
(a) odometer records are maintained by or on behalf of the taxpayer in
relation to the car for the holding period; and
(b) the taxpayer, in his or her return for the current year of income,
specifies whichever of the following percentages is applicable:
(i) if paragraph 82KUB (b) applied in relation to the car in
relation to the taxpayer in relation to the year of income that was the last
log book year of income of the taxpayer in relation to the car:
(A) if the current year of income is the year of income
next following that last log book year of income - a percentage as
thenominated business percentage applicable to the car in relation to the
taxpayer for the holding period, not being a percentage that exceeds the
business percentage established during the applicable log book period for that
last log book year of income; or
(B) in any other case - the percentage that was the
nominated business percentage applicable to the car in relation to the
taxpayer for the period that was the holding period in the year of income next
following that last log book year of income and specified in the taxpayer's
return for that next following year of income;
(ii) if subparagraph (i) does not apply - the percentage that was:
(A) the nominated business percentage applicable to the
car in relation to the taxpayer for the period that was the holding period in
the year of income that was the last log book year of income of the taxpayer
in relation to the car; and
(B) specified in the taxpayer's return for that last log book
year of income; or
(iii) if the percentage referred to in sub-subparagraph (i) (B) or
subparagraph (ii) would, apart from this subparagraph, be applicable but the
taxpayer is of the opinion that the percentage calculated in accordance with
the formula:
N - U
where:
N is the percentage referred to in sub-subparagraph (i) (B)
or subparagraph (ii), as the case may be; and
U is the percentage that represents a reasonable estimate
of the underlying business percentage applicable to the car in relation to the
taxpayer for the holding period;
is a percentage that:
(A) if the car is a low business kilometre car of the
taxpayer in relation to the year of income - exceeds nil; or
(B) in any other case - exceeds 10%;
a percentage as the nominated business percentage applicable to the car in
relation to the taxpayer for the holding period.
Amount of deduction allowable for car expenses - log book method
"82KUD. Subject to this Subdivision, the amount of a deduction allowable
under this Act to a taxpayer in respect of a car expense relating to a car
incurred by the taxpayer in a year of income where the car was held by the
taxpayer during a period (in this section called the 'holding period') in the
year of income is:
(a) if the percentage calculated in accordance with the formula:
N - U
where:
N is the percentage applicable to the car specified in the taxpayer's
return for the year of income as mentioned in section 82KUB or 82KUC; and
U is the percentage (in this paragraph called the 'reasonable
percentage') that represents a reasonable estimate of the underlying business
percentage applicable to the car in relation to the taxpayer for the holding
period;
is a percentage that:
(i) if either of the following sub-subparagraphs apply:
(A) the year of income is a log book year of income of
the taxpayer in relation to the car;
(B) the year of income is not a log book year of income
of the taxpayer in relation to the car and the car is a low business kilometre
car of the taxpayer in relation to the year of income;
exceeds nil; or
(ii) in any other case - exceeds 10%;
the reasonable percentage of the amount of the exclusive business use
deduction in respect of the car expense; or
(b) in any other case - the percentage applicable to the car specified in
the taxpayer's return for the year of income, as mentioned in section 82KUB or
82KUC, of the amount of the exclusive business use deduction in respect of the
car expense.
Nominated business percentage to be reduced if it exceeds business
percentage established during applicable log book period or if it is
unreasonable
"82KUE. (1) For the purposes of this Subdivision, where:
(a) a taxpayer, in his or her return for a year of income, specifies, or
purports to specify, a percentage (in this subsection called the 'excessive
percentage') of the kind mentioned in subparagraph 82KUB (c) (ii) or
sub-subparagraph 82KUC (b) (i) (A) in respect of a car held by the taxpayer
during a period (in this subsection called the 'holding period') in the year
of income; and
(b) the excessive percentage exceeds the percentage (in this subsection
called the 'reduced percentage') that is the lesser of the following
percentages:
(i) the business percentage applicable to the car that was
established during the applicable log book period referred to in subparagraph
82KUB (c) (ii) or sub-subparagraph 82KUC (b) (i) (A), as the case may be;
(ii) the percentage that represents a reasonable estimate of the
underlying business percentage applicable to the car in relation to the
taxpayer for the holding period;
the following provisions have effect:
(c) the taxpayer shall be treated as if he or she had, in the return,
specified, in respect of the car, the reduced percentage instead of the
excessive percentage;
(d) if the taxpayer, in his or her return for a subsequent year of income,
specifies, or purports to specify, in respect of the car, the excessive
percentage in accordance with the condition set out in subsubparagraph 82KUC
(b) (i) (B) or subparagraph 82KUC (b) (ii) - the taxpayer shall be treated
as if he or she had, in the return for that subsequent year of income, specified,
in respect of the car, the reduced percentage instead of the excessive
percentage.
"(2) For the purposes of this Subdivision, where:
(a) subparagraph 82KUC (b) (iii) applies in relation to a car held by a
taxpayer during a period (in this subsection called the 'holding period') in a
year of income; and
(b) apart from this subsection, the taxpayer fails to specify, in his or her
return for the year of income, a percentage as the nominated business
percentage applicable to the car in relation to the taxpayer for the holding
period;
the taxpayer shall be treated as if he or she had, in the return, specified,
in respect of the car, as that nominated business percentage, the percentage
that represents a reasonable estimate of the underlying business percentage
applicable to the car in relation to the taxpayer for the holding period."
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 18
Car expenses - exemptions from log book method substantiation
18. Section 82KV of the Principal Act is amended:
(a) by omitting subsections (1) and (2);
(b) by omitting from subsection (3) "Subsections (1) and (2)", and
substituting "Sections 82KUA, 82KUB, 82KUC and 82KUD";
(c) by inserting after paragraph (3) (a) the following paragraph:
"(aa) both of the following conditions are satisfied:
(i) at all times during the year of income when the car
was held by the taxpayer, the car was unregistered;
(ii) during the period in the year of income when the car
was held by the taxpayer, the car was exclusively or principally used in the
course of producing assessable income of the taxpayer;"; and
(d) by adding at the end the following subsection:
"(6) For the purposes of this section, a car shall be taken to be
registered in a particular place if it may be driven on a public road in that
place without contravening the law in force in that place.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 19
Deduction for car expenses where income-producing use exceeds 5,000
kilometres - statutory formula
19. Section 82KW of the Principal Act is amended:
(a) by inserting in subsection (1) "(in this section called the 'holding
period')" after "during a period";
(b) by omitting from paragraph (2) (a) "paragraph (b)" and substituting
"paragraphs (b) and (ba)";
(c) by omitting paragraph (2) (b) and substituting the following paragraphs:
"(b) a deduction is not so allowable in respect of such an
expense, being an expense in respect of fuel or oil, unless:
(i) odometer records are maintained by or on behalf of
the taxpayer for the holding period; or
(ii) documentary evidence of the expense is obtained by
or on behalf of the taxpayer;
(ba) a deduction is not so allowable in respect of any other such
expense unless documentary evidence of the expense is obtained by or on behalf
of the taxpayer; and";
(d) by omitting from paragraph (2) (c) "section 82KV" and substituting
"sections 82KUA, 82KUB, 82KUC and 82KUD";
(e) by adding at the end of paragraph (3) (b) "and";
(f) by omitting from paragraph (3) (c) "and" (last occurring); and
(g) by omitting paragraph (3) (d).
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 20
Deduction for car expenses where income-producing use does not exceed
5,000 kilometres - statutory formula
20. Section 82KX of the Principal Act is amended:
(a) by adding at the end of paragraph (1) (a) "and";
(b) by omitting from paragraph (1) (b) "and" (last occurring); and
(c) by omitting paragraph (1) (c).
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 21
Elections
21. Section 82KY of the Principal Act is amended by omitting subsections (2)
and (3) and substituting the following subsections:
"(2) Where:
(a) apart from this subsection, a taxpayer has not elected that subsection
82KW (2) or (3) or 82KX (1) apply in relation to a car in relation to a year
of income; and
(b) whichever of the following amounts is the greatest:
(i) the sum of the deductions that would have been allowable
under this Act to the taxpayer in respect of those car expenses if the
taxpayer had made an election that subsection 82KW (2) apply in relation to
the car in relation to the year of income;
(ii) the deduction that would have been allowable to the taxpayer
in relation to the car in relation to the year of income if the taxpayer had
elected that subsection 82KW (3) apply in relation to the car in relation to
the year of income;
(iii) the deduction that would have been allowable to the taxpayer
in relation to the car in relation to the year of income if the taxpayer had
elected that subsection 82KX (1) apply in relation to the car in relation to
the year of income;
exceeds the sum of the deductions allowable to the taxpayer under this Act in
respect of car expenses relating to the car incurred by the taxpayer in the
year of income and ascertained under section 82KUD;
this Subdivision (other than the definition of 'log book car' in subsection
82KT (1) and section 82KTG) applies, and shall be deemed always to have
applied, as if the election referred to in whichever of subparagraphs (b) (i),
(ii) or (iii) is applicable had been made by the taxpayer in relation to
the car in relation to the year of income.
"(3) For the purposes of subsection (2), where a deduction is not allowable
to the taxpayer under this Act in respect of car expenses relating to a car
incurred by the taxpayer in the year of income because of a failure to comply
with section 82KUB or 82KUC, the sum of those deductions shall be taken to be
a nil amount.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 22
Retention, and production, of documents
22. Section 82KZA of the Principal Act is amended:
(a) by inserting before paragraph (1) (a) the following paragraph:
"(aa) in the case of a car expense that is in respect of fuel or
oil and that was incurred when the car concerned was owned or leased by the
taxpayer:
(i) documentary evidence of the expense; or
(ii) odometer records maintained by or on behalf of the
taxpayer for:
(A) if the taxpayer elects that subsection
82KW (2) apply in relation to the car in relation to the year of income - the
holding period within the meaning of that subsection; or
(B) in any other case - the holding period within
the meaning of section 82KUA;";
(b) by omitting from paragraph (1) (a) "any case" and substituting "the case
of any other expense";
(c) by omitting from paragraphs (1) (b) and (3) (e) "relevant car documents"
and substituting "log book records and odometer records";
(d) by inserting before paragraph (3) (c) the following paragraph:
"(ba) in the case of a car expense that is in respect of fuel or
oil and that was incurred when the car concerned was owned or leased by the
taxpayer - produces to the Commissioner, within the period specified in the
notice or such longer period as the Commissioner allows:
(i) documentary evidence of the expense; or
(ii) odometer records maintained by or on behalf of the
taxpayer for:
(A) if the taxpayer elects that subsection
82KW (2) apply in relation to the car in relation to the year of income - the
holding period within the meaning of that subsection; or
(B) in any other case - the holding period within
the meaning of section 82KUA;";
(e) by inserting in paragraph (3) (c) "in the case of any other expense - "
before "produces";
(f) by inserting in paragraph (3) (d) "in a case where the taxpayer produces
to the Commissioner documentary evidence - " before "includes";
(g) by inserting before paragraph (5) (a) the following paragraph:
"(aa) odometer records of the kind referred to in subparagraph
(1) (aa) (ii) maintained by or on behalf of the taxpayer in respect of a car
expense incurred by the taxpayer;";
(h) by omitting from paragraphs (5) (b) and (7) (a) "relevant car documents"
and substituting "log book records or odometer records";
(j) by omitting from subparagraph (6) (e) (i) "(1) (a) and (3) (c)" and
substituting "(1) (aa) and (a) and (3) (ba), (c)";
(k) by inserting after subsection (6) the following subsection:
"(6A) Where a document, being odometer records of the kind
referred to in subparagraph (1) (aa) (ii) maintained by or on behalf of a
taxpayer in respect of a car expense incurred by the taxpayer in a year of
income, is lost or destroyed and the Commissioner is satisfied that:
(a) the taxpayer took all reasonable precautions to prevent loss
or destruction of the document;
(b) the document was lost or destroyed because of circumstances
beyond the control of the taxpayer; and
(c) subsection (5) does not apply in relation to the document;
paragraphs (1) (aa) and (3) (ba) do not apply in relation to the expense and
shall be deemed not to have applied at any time after the document was lost or
destroyed."; and
(m) by inserting after subsection (7) the following subsection:
"(7A) For the purposes of this section, log book records or
odometer records shall be deemed to relate to a car expense incurred by a
taxpayer in a year of income (in this subsection called the 'current year of
income') in relation to a car if, and only if:
(a) section 82KUB requires the records to be maintained by or
on behalf of the taxpayer as a condition of a deduction being allowable to the
taxpayer under this Act in respect of the expense; or
(b) both of the following conditions are satisfied:
(i) the current year of income is not a log book year of
income of the taxpayer in relation to the car;
(ii) section 82KUB required the records to be maintained
by or on behalf of the taxpayer as a condition of a deduction being allowable
to the taxpayer under this Act in respect of a car expense incurred by the
taxpayer in relation to the car in the year of income that was the last log
book year of income of the taxpayer in relation to the car before the current
year of income.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 23
Modified application of Act in relation to certain unit trusts
23. Section 102L of the Principal Act is amended:
(a) by omitting from subsection (11) "116AA,"; and
(b) by omitting from subsection (12) "sections 116AA and" and substituting
"section".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 24
Modified application of Act in relation to certain unit trusts
24. Section 102T of the Principal Act is amended:
(a) by omitting from subsection (12) "116AA,"; and
(b) by omitting from subsection (13) "sections 116AA and" and substituting
"section".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 25
Interpretation
25. Section 103 of the Principal Act is amended:
(a) by omitting "section 24G, subsection 44 (2) or section 107" from the
definition of "special fund dividends" in subsection (1) and substituting "24G
or 107"; and
(b) by inserting "subsection 105A (4AA)," after "by virtue of" in the
definition of "the undistributed amount" in subsection (1).
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 26
Additional tax on undistributed amount
26. Section 104 of the Principal Act is amended by adding at the end the
following subsection:
"(3) Additional tax under this section is not payable by a private company
in relation to the year of income commencing on 1 July 1986 or a subsequent
year of income unless the distributable income of the company of the year of
income includes an amount of phasing-out dividends.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 27
27. After section 104 of the Principal Act the following section is
inserted:
Phasing-out dividends
"105. (1) Where, but for subsection (7), a company has made a sufficient
distribution in relation to the year of income commencing on 1 July 1985 or a
subsequent year of income, the phasing-out amount of the company in relation
to the year of income is the amount of the excess referred to in subsection
105A (1) ascertained as at the end of the prescribed period and without regard
to section 105AA.
"(2) Where, but for subsection (7), a company has not made a sufficient
distribution in relation to the year of income commencing on 1 July 1985 or a
subsequent year of income, the phasing-out amount of the company in relation
to the year of income is the amount of the dividends taken into account in
determining the undistributed amount in relation to the year of income
ascertained as at the end of the prescribed period and without regard to
section 105AA.
"(3) Where the amount that, but for subsection (7), would be the phasing-out
amount of a company in relation to a year of income is greater than nil:
(a) the company shall:
(i) allocate the whole, or particular parts, of the phasing-out
amount to the shareholder, or to all or any of the shareholders, to whom
dividends (in this subsection called the 'eligible dividends'), being
dividends taken into account in ascertaining whether the company has made a
sufficient distribution in relation to the year of income, were paid so that:
(A) a shareholder is not allocated an amount that exceeds
the amount of eligible dividends so paid to the shareholder; and
(B) the sum of the amounts so allocated equals the phasingout amount;
(ii) give to each such shareholder a notice in writing specifying
the amount allocated to the shareholder; and
(iii) give to the Commissioner a copy of each such notice; and
(b) the allocation under paragraph (a) shall be made, and the notices given:
(i) if the prescribed period ended before the commencement of
this subsection - within 28 days after the commencement of this subsection;
or
(ii) in any other case - within 28 days after the end of the
prescribed period;
or within such further time as the Commissioner allows.
"(4) Where dividends (in this subsection called 'retrospective dividends')
paid to a shareholder in a company after 1 July 1985 are deemed by section
105AA to have been paid during the prescribed period in relation to a year of
income of the company:
(a) the company shall:
(i) give to each shareholder to whom any of the retrospective
dividends were paid a notice in writing stating that this subsection applies
to the retrospective dividends paid to the shareholder; and
(ii) give to the Commissioner a copy of each such notice; and
(b) the notices under paragraph (a) in relation to the payment of dividends
to a shareholder shall be given:
(i) if the dividends were paid before the commencement of this
subsection - within 28 days after the commencement of this subsection or such
further time as the Commissioner allows; or
(ii) in any other case - not later than 28 days after the time of
payment of the dividends or such later time as the Commissioner allows.
"(5) Where all of the following conditions are satisfied in relation to
dividends paid by a company:
(a) the dividends were paid after 1 July 1985;
(b) the dividends are taken into account in determining whether the company
has made a sufficient distribution in relation to the year of income
commencing on 1 July 1984 or an earlier year of income;
(c) apart from section 105AA, the dividends were paid during the prescribed
period in relation to the year of income to which paragraph (b) applies;
the company shall, within 28 days after the commencement of this subsection or
such further time as the Commissioner allows, give a notice in writing to each
shareholder to whom any of the dividends were paid stating that this
subsection applies to the dividends paid to the shareholder.
"(6) The distributable income of a company of a year of income (in this
subsection called the 'current year of income') shall be taken to include
phasing-out dividends of an amount equal to so much of the aggregate of the
following amounts as does not exceed the distributable income:
(a) where the company has been given a notice under paragraph (3) (a) in
relation to dividends paid to the company in the current year of income:
(i) if the notice relates only to dividends paid to the company
in the current year of income - the amount allocated to the company in
accordance with paragraph (3) (a);
(ii) if the notice relates to dividends paid to the company in the
current year of income and also relates to dividends paid to the company in
the year of income next succeeding the current year of income - so much of the
amount allocated to the company in accordance with paragraph (3) (a) as does
not exceed the amount of the dividends to which the notice relates that were
paid to the company in the current year of income; and
(iii) if the notice relates to dividends paid to the company in the
current year of income and also relates to dividends paid to the company in
the year of income preceding the current year of income - the amount allocated
to the company in accordance with paragraph (3) (a) reduced by so much of that
amount as was taken into account in applying subparagraph (ii) of this
paragraph to that preceding year of income;
(b) if the current year of income is the year of income commencing on 1 July
1986 or a later year of income and the company has been given a notice under
subsection (4) or (5) in relation to dividends paid to the company in the
current year of income - the amount of the dividends paid.
"(7) If a company contravenes subsection (3), (4) or (5) in relation to a
year of income, this Division applies to the company in relation to the year
of income as if the company did not pay any dividends during the prescribed
period.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 28
Sufficient distribution
28. Section 105A of the Principal Act is amended by inserting after
subsection (4) the following subsection:
"(4AA) A dividend paid by a company on or after 1 July 1987 shall not be
taken into account in ascertaining whether a company is deemed to have made a
sufficient distribution in relation to a year of income to the extent that the
whole, or a part, of the dividend has been franked in accordance with section
160AQF.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 29
Retention allowance
29. Section 105B of the Principal Act is amended:
(a) by inserting "preceding the year of income commencing on 1 July 1986"
after "a year of income"; and
(b) by adding at the end the following subsection:
"(2) The retention allowance of a private company in respect of
its distributable income of the year of income commencing on 1 July 1986 or of
a subsequent year of income is the distributable income reduced by the amount
of phasing-out dividends included in that distributable income.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 30
Premiums not assessable income
30. Section 111 of the Principal Act is amended by omitting from subsection
(2) "subsections 113 (2) and 116AA (1)" and substituting "subsection 113 (2)".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 31
Repeal of section 116AA
31. Section 116AA of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 32
Interpretation
32. Section 124ZAA of the Principal Act is amended by adding at the end the
following subsection:
"(11) Where the Minister is satisfied that:
(a) a proposed film, when completed, will have a significant non- Australian
content; or
(b) a film has a significant non-Australian content;
the Minister may treat the proposed film or film as not being a qualifying
Australian film for the purposes of this Division.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 33
Provisional certificates
33. Section 124ZAB of the Principal Act is amended by inserting in
subparagraph (6) (b) (ii) "Australian" after "qualifying".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 34
Determination of content of film
34. Section 124ZAD of the Principal Act is amended by omitting from the
beginning of the section to and including "have regard to " and substituting
the following:
"In determining for the purposes of this Division whether a film has, or a
proposed film, when completed, will have, a significant Australian content or
a significant non-Australian content, the Minister shall have regard to - ".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 35
Liability to withholding tax
35. Section 128B of the Principal Act is amended by omitting from paragraph
(3) (c) "subsection 44 (2), or section 107," and substituting "section 107".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 36
Interpretation
36. Section 160APA of the Principal Act is amended by inserting the
following definitions in their respective appropriate alphabetical positions
(determined on a letter-by-letter basis):
"'corporate trust dividend' means a unit trust dividend within the meaning
of Division 6B or 6C of Part III;
'corporate trust estate' means a prescribed trust estate within the meaning
of Division 6B or 6C of Part III;
'current corporate trust', in relation to a year of income, means:
(a) a corporate unit trust in relation to the year of income for
the purposes of Division 6B of Part III; or
(b) a public trading trust in relation to the year of income for
the purposes of Division 6C of Part III;
'insurance funds' has the same meaning as in Division 8 of Part III;
'life assurance company' means a life assurance company within the meaning
of Division 8 of Part III;
'resident trust estate', in relation to a year of income, means a trust
estate that is a resident unit trust in relation to the year of income for the
purposes of Division 6B or 6C of Part III;
'unit' means a unit within the meaning of Division 6B or 6C of Part III;
'unitholder' means a unitholder within the meaning of Division 6B or 6C of
Part III.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 37
Receipt of franked dividends
37. Section 160APP of the Principal Act is amended:
(a) by omitting "Where" and substituting "Subject to this section. where";
and
(b) by adding at the end the following subsections:
"(2) No franking credit arises if the dividend is wholly exempt
income of the shareholder.
"(3) If the dividend is partly exempt income of the shareholder,
the franking credit shall be reduced by the amount calculated in accordance
with the formula:
ED
X __
TD
where:
ED is the number of dollars in the part of the dividend that is
exempt income;
FC is the amount of the franking credit determined under
subsection (1); and
TD is the number of dollars in the total amount of the dividend.
"(4) No franking credit arises if the shareholder is a registered
organisation within the meaning of Division 8A of Part III.
"(5) No franking credit arises if:
(a) the shareholder is a life assurance company; and
(b) the assets of the shareholder from which the dividend was
derived were included in insurance funds of the shareholder at any time during
the period commencing at the beginning of the year of income of the
shareholder in which the dividend was paid and ending at the time the dividend
was paid.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 38
Receipt of franked dividends through trusts and partnerships
38. Section 160APQ of the Principal Act is amended:
(a) by omitting "Where" and substituting "Subject to this section, where";
and
(b) by adding at the end the following subsections:
"(2) No franking credit arises if the company is a registered
organisation within the meaning of Division 8A of Part III.
"(3) No franking credit arises if:
(a) the company is a life assurance company; and
(b) the assets of the company to which the trust amount or
partnership amount is attributable were included in insurance funds of the
company at any time during the period commencing at the beginning of the year
of income of the company in which the franking credit would arise but for this
subsection and ending at the time when the franking credit would arise but for
this subsection.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 39
Under-franking
39. Section 160APX of the Principal Act is amended by adding at the end the
following subsection:
"(2) If the declaration made in relation to the dividend for the purposes of
section 160AQF specifies a percentage for the purposes of subsection
160AQF(1A), the dividend shall be taken for the purposes of subsection (1) of
this section to be a franked dividend to the extent of the percentage so
specified.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 40
40. After section 160APX of the Principal Act the following section is
inserted:
Excessive reduction in section 160APX debit
"160APXA. (1) Where:
(a) a franking debit of a company that would have arisen under section
160APX has been reduced (including a reduction to nil) under subsection
160APX(2) because the company specified a percentage for the purposes of
subsection 160AQF(1A) in relation to a year of income; and
(b) the total amount of the dividends taken into account in determining
whether the company has made a sufficient distribution for the purposes of
Division 7 of Part III in relation to that year of income exceeds the amount
of the dividends required to be paid in order that the company be taken to
have made a sufficient distribution;
the Commissioner may determine that a franking debit is to arise in relation
to the company of such an amount as the Commissioner considers reasonable, not
exceeding 120% of the amount of the reduction.
"(2) The franking debit of the company arises on the day on which the
Commissioner serves on the company a notice specifying the amount of the
debit.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987
- SECT 41
41. After section 160AQC of the Principal Act the following section is
inserted in Division 2 of Part IIIAA:
Transfer of asset to insurance funds
"160AQCA. Where:
(a) a franking credit of a life assurance company arose under section 160APP
or 160APQ at a particular time during a year of income of the company; and
(b) after that time and during the year of income:
(i) if section 160APP applied - the asset of the company from
which the dividend referred to in that section was derived; or
(ii) if section 160APQ applied - the asset of the company to
which the trust amount or partnership amount referred to in that section is
attributable;
becomes part of the insurance funds of the company; there arises, on the day
Schedule 1 (paragraph (e)):
Omit "Bank Account".
Australian Sports Commission Act 1985
Subsection 37 (1):
Omit "Bank Account".
Australian Institute of Sport Act 1986
Subsection 39 (1):
Omit "Bank Account".
Bank Account Debits Tax Administration Act 1982
Title
Omit "banks", substitute "financial institutions".
Section 1:
Omit "Bank Account".
Subsection 3 (1) (other than the definitions of "account", "bank", "cheque"
and
"tax" and paragraph (b) of the definition of "excluded debit"):
Omit "bank" (wherever occurring), substitute "financial institution".
Subsection 3 (1) (definition of "bank"):
Add ", but does not include a non-bank financial institution" at the end of
the definition.
Subsection 3 (1) (paragraph (b) of the definition of "excluded debit"):
Omit the paragraph, substitute the following paragraph:
"(b) made to an account kept with a financial institution (in this
paragraph
called the 'account keeping institution') in the name of another financial
institution (in this paragraph called the 'account holding institution')
where:
(i) either of the following conditions is satisfied:
(A) the business carried on by the account holding institution in
Australia consists wholly or principally of banking business;
(B) all debits made, or to be made, to the account are in connection
with banking business carried on by the account holding institution
in Australia; and
(ii) the debit is not in connection with a cheque or payment order drawn
on the account keeping institution by the account holding institution
where the cheque or payment order was, at a time when it was
incomplete, delivered by the account holding institution to a customer
under an agreement under which the customer was authorised to fill up
the cheque or payment order;".
Subsection 3 (1) (definition of "tax"):
Omit "Bank Account".
Subsection 3 (1) (definition of "account"):
Omit the definition, substitute the following definition:
"'account' means:
(a) an account kept with a bank, being an account to which payments by
the bank in respect of cheques drawn on the bank by the account holder,
or by any one or more of the account holders, may be debited; or
(b) an account kept with a non-bank financial institution, being an
account
to which payments by the institution in respect of payment orders drawn
on the institution by the account holder, or by one or more of the
account holders, may be debited;".
Subsection 3 (1):
Insert the following definition in its appropriate alphabetical position
(determined on a letter-by-letter basis):
"'account transaction', in relation to an account, means:
(a) the payment of a cheque;
(b) the payment of a payment order; or
(c) the doing of any other act or thing;
that will result in the making of a debit to that account;".
Subsection 3 (1):
Insert the following definitions in their respective appropriate
alphabetical
positions (determined on a letter-by-letter basis):
"'financial institution' means:
(a) a bank; or
(b) a non-bank financial institution;
'incomplete', in relation to a cheque or payment order, means wanting in a
material particular necessary for the cheque or payment order to be, on its
face, a complete cheque or payment order;
'non-bank financial institution' means a non-bank financial institution
within the meaning of the Cheques and Payment Orders Act 1986 that carries on
a
business that includes the keeping of accounts that may be drawn on by
payment
order;
'payment order' has the same meaning as in the Cheques and Payment Orders
Act
1986;".
Section 3:
Add at the end the following subsection:
"(9) A reference in this Act to an account kept with a non-bank financial
institution includes a reference to an account kept by way of withdrawable
share capital in, or money deposited with, the institution.".
After section 3:
Insert the following sections in Part I:
Deemed separate debits
"3A. For the purposes of this Act, a debit that, but for this section,
would
be a single debit made to an account in respect of 2 or more account
transactions shall be treated as being separate debits in relation to each of
those account transactions.
Debits to be expressed in Australian currency
"3B. Where a debit is made in a currency other than Australian currency, a
reference in this Act to the amount of the debit is a reference to the amount
of the debit expressed in terms of Australian currency.".
Section 8:
Omit "Bank Account" (wherever occurring).
Subsection 8 (1):
Omit "bank with", substitute "financial institution with".
Section 10:
Omit "bank" (wherever occurring), substitute "financial institution".
Subsection 11 (5):
Omit "bank" (wherever occurring), substitute "financial institution".
Subsections 12 (1) and (3):
Omit "bank" (wherever occurring), substitute "financial institution".
Subsections 13 (1) and (2):
Omit "bank" (wherever occurring), substitute "financial institution".
Subsections 14 (1), (2) and (5):
Omit "bank" (wherever occurring), substitute "financial institution".
Subsections 15 (1), (3) and (4):
Omit "bank", substitute "financial institution".
Paragraph 16 (3) (a):
Omit "bank", substitute "financial institution".
Subsection 18 (3):
Omit "bank" (wherever occurring), substitute "financial institution".
Section 56:
Omit "bank" (wherever occurring), substitute "financial institution".
After subsection 57 (1):
Insert the following subsections:
"(1A) A non-bank financial institution that carries on a business in
Australia that includes the keeping of accounts that may be drawn on by
payment order:
(a) may appoint an officer or officers of the institution to be a
representative officer or representative officers of the institution for the
purposes of this Act; and
(b) unless exempted by the Commissioner, shall ensure that, at all times
after the end of one month after the commencement of this subsection, or after
the day on which the institution commences to carry on that business in
Australia,
whichever is the later, there is at least one officer who holds an
appointment
as such a representative officer.
"(1B) A non-bank financial institution that contravenes subsection (1A) is,
in respect of each day on which it contravenes that subsection (including the
day
of a conviction of an offence against this subsection or any subsequent day),
guilty of an offence punishable on conviction by a fine not exceeding $50.".
Subsections 57 (2), (3), (4) and (5):
Omit "bank" (wherever occurring), substitute "financial institution".
Taxation Administration Act 1953
Paragraph 8J (2) (g):
Omit "Bank Account".
Paragraph 8ZE (3) (b):
Omit "Bank Account".
Subparagraph 14ZKA (2) (b) (ii):
Omit "Bank Account".
Taxation (Interest on Overpayments) Act 1983
Subsection 3 (1) (paragraph (c) of the definition of "objection"):
Omit "Bank Account".
Subsection 3 (1) (paragraph (g) of the definition of "relevant tax"):
Omit "Bank Account".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987 - SCHEDULE 2
Section 59
AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER
OF CERTAIN AUSTRALIAN CAPITAL TERRITORY TAXES AND DUTIES
Australian Capital Territory Stamp Duty Act 1969
After section 3:
Insert the following section:
Termination of stamp duty
"3A. (1) Stamp duty is not imposed by subsection 4 (1) on:
(a) an instrument of Crown lease where the date of commencement specified
in
the lease is on or after the termination day;
(b) a bill of exchange or promissory note that is drawn or made on or after
the termination day; or
(c) an instrument (not being an instrument of Crown lease or a bill of
exchange or promissory note) that is executed on or after the termination
day.
"(2) Stamp duty is not imposed by subsection 4 (1) on a bill of exchange or
promissory note by reason of its negotiation, presentment for payment or
payment on or after the termination day.".
Australian Capital Territory Taxation (Administration) Act 1969
Subsection 4 (1) (definition of "Commissioner"):
Omit the definition.
Subsection 4 (1):
Insert the following definitions in their respective appropriate
alphabetical
positions (determined on a letter-by-letter basis):
"'A.C.T Commissioner' means the Commissioner for Australian Capital
Territory
Revenue Collections appointed under the Taxation Administration Ordinance
1987 of the Australian Capital Territory;
'changeover day' means the date of commencement of section 59 of the
Taxation
Laws Amendment Act (No. 2) 1987;
'Commonwealth Commissioner' means the Commissioner of Taxation;
'termination day' means:
(a) in relation to tax or duty of a particular class or classes in
respect
of which a day is fixed by Proclamation as the termination day - that day;
and
(b) in any other case - the changeover day;".
After section 5:
Insert the following section:
Transfer of administration from Commonwealth Commissioner
"5A. (1) On and after the changeover day, this Act and related laws have
effect as if:
(a) a reference in this Act (other than sections 7 and 95) or a related law
to the Commissioner or to the Commissioner of Taxation were a reference to
the
A.C.T Commissioner;
(b) anything done by, or done or arising in relation to, the Commonwealth
Commissioner before the changeover day had been done by, or had been done
or had arisen in relation to, the A.C.T. Commissioner;
(c) a reference in sections 58AD, 58T and 91A to an Act of which the A.C.T.
Commissioner has the general administration included a reference to a law of
the Territory of which the A.C.T. Commissioner has the general administration;
(d) a reference in sections 7 and 95 to the Commissioner were a reference
to
the A.C.T. Commissioner or the Commonwealth Commissioner; and
(e) a reference in section 3C of the Taxation Administration Act 1953 and
section 8 of the Taxation (Interest on Overpayments) Act 1983 to the
Commissioner were a reference to the A.C.T. Commissioner or the Commonwealth
Commissioner.
"(2) Where, at the beginning of the changeover day, the Commonwealth
Commissioner is a party to proceedings that are in whole or in part
proceedings
arising out of this Act or a related law:
(a) the proceedings, if continued, shall be continued with the Commonwealth
Commissioner as a party; and
(b) the Commonwealth Commissioner shall act as representative of the A.C.T.
Commissioner in so far as the proceedings are proceedings arising out of this
Act or the related law.
"(3) Section 8 of the Taxation Administration Act 1953 applies for the
purpose of this Act and any related law as if references in that section to
the
Commonwealth Commissioner were references to the A.C.T. Commissioner.
"(4) In this section:
'party' includes intervenor;
'related law' means any law of the Commonwealth (other than Part II, and
Division 3 of Part IIIA, of the Taxation Administration Act 1953) to the
extent
to which the law has effect in relation to this Act.
"(5) A reference in any law of the Commonwealth to an Act of which the
Commonwealth Commissioner has the general administration includes a reference
to this Act.".
Section 22:
After the penalty, insert the following subsection:
"(2) This section does not apply to the supply or use of a cheque form on
or
after the day that is the termination day for the tax imposed by the
Australian
Capital Territory Tax (Cheques) Act 1969.".
Section 23:
After the penalty, insert the following subsection:
"(2) This section does not apply to the drawing of a cheque on or after the
day that is the termination day for the tax imposed by the Australian Capital
Territory Tax (Cheques) Act 1969.".
After subsection 24 (1):
Insert the following subsection:
"(1A) Subsection (1) does not apply in respect of a month commencing on or
after the termination day for the tax imposed by the Australian Capital
Territory Tax (Cheques) Act 1969.".
After subsection 32 (1):
Insert the following subsection:
"(1A) This section does not apply in relation to a month commencing on or
after the termination day.".
After subsection 42 (1):
Insert the following subsection:
"(1A) This section does not apply in relation to a month commencing on or
after the termination day.".
After subsection 44E (1):
Insert the following subsection:
"(1A) This section does not apply in relation to a month commencing on or
after the termination day.".
After subsection 52 (1):
Insert the following subsection:
"(1A) Subsection (1) does not apply in respect of a sale or purchase of a
marketable security occurring on or after the changeover day.".
Section 52:
Before the penalty, insert the following subsection:
"(4) This section does not apply to the impressing of a stamp on or after
the
day that is the termination day for the tax imposed by the Australian Capital
Territory Tax (Purchases of Marketable Securities) Act 1969.".
After subsection 53 (1):
Insert the following subsection:
"(1A) This section does not apply in relation to a month commencing on or
after the day that is the termination day for the tax imposed by the
Australian
Capital Territory Tax (Purchases of Marketable Securities) Act 1969.".
After paragraph 58C (1) (a):
Insert the following paragraph:
"(aa) the Registrar is satisfied that the registration is exempt from tax
under section 3A of the Taxing Act:".
Section 58G:
Add at the end the following subsection:
"(2) This section does not apply to a transfer of a marketable security
where
the transfer is effected by an instrument of transfer that appears to have
been
executed by the transferor, or by any of the transferors, on or after the
changeover day (including an instrument that appears to have been executed by
the transferee or by any of the transferees, before the changeover day).".
Section 58M:
Add at the end the following subsection:
"(6) This section does not apply to an increase or advance that is made, or
an enforcement that occurs, on or after the termination day.".
After subsection 58P (2):
Insert the following subsection:
"(2A) Subsection (2) does not apply if the collateral security is executed
on
or after the termination day.".
Section 58Q:
Add at the end the following subsection:
"(3) This section does not apply to a payment made on or after the
termination day.".
After subsection 58R (2):
Insert the following subsection:
"(2A) Subsection (2) does not apply in respect of any month commencing on
or
after the termination day.".
Australian Capital Territory Tax (Cheques) Act 1969
After section 3:
Insert the following section:
Termination of tax
"3A. Tax is not imposed on cheque forms supplied or used by a banker on or
after the termination day.".
Australian Capital Territory Tax (Hire-purchase Business) Act 1969
After section 3:
Insert the following section:
Termination of tax
"3A. Tax is not imposed on a hire-purchase agreement that is entered into
on
or after the termination day.".
Australian Capital Territory Tax (Insurance Business) Act 1969
After section 3:
Insert the following section:
Termination of tax
"3A. Tax is not imposed on premiums received by an insurer in respect of
insurance effected by the insurer on or after the termination day.".
Australian Capital Territory Tax (Life Insurance Business) Act 1981
After section 3:
Insert the following section:
Termination of tax
"3A. Tax is not imposed in respect of life insurance effected on or after
the
termination day.".
Australian Capital Territory Tax (Purchases of Marketable Securities)
Act 1969
After section 3:
Insert the following section:
Termination of tax
"3A. Tax is not imposed on a purchase of a marketable security where the
purchase is made on or after the termination day.".
Australian Capital Territory Tax (Sales of Marketable Securities)
Act 1969
After section 3:
Insert the following section:
Termination of tax
"3A. Tax is not imposed on a sale of a marketable security where the sale
is
made on or after the termination day.".
Australian Capital Territory Tax (Transfers of Marketable Securities)
Act 1986
After section 3:
Insert the following section:
Termination of tax
"3A. Tax is not imposed on the registration of a transfer of a marketable
security where the transfer is effected by an instrument of transfer that
appears to have been executed by the transferor, or by any of the
transferors,
on or after the termination day (including an instrument that appears to have
been executed by the transferee, or by any of the transferees, before the
termination day).".
Australian Capital Territory Tax (Vehicle Registration) Act 1981
After section 3:
Insert the following section:
Termination of tax
"3A. Tax is not imposed in respect of the registration of a vehicle where
application for the registration is made on or after the termination day.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987 - SCHEDULE 3
Section 60
AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER
OF AUSTRALIAN CAPITAL TERRITORY PAY-ROLL TAX
Pay-roll Tax (Territories) Act 1971
After section 2:
Insert the following section:
Termination of tax
"2A. This Act does not impose tax on wages that become payable on or after
the termination day.".
Paragraph 3 (1) (d):
Insert "and before the termination day" after "1974".
Subsection 3 (2):
Omit "section", substitute "Act".
Pay-roll Tax (Territories) Assessment Act 1971
Subsection 4 (1) (definition of "the Commissioner"):
Omit the definition.
Subsection 4 (1):
Insert the following definitions in their respective appropriate
alphabetical
positions (determined on a letter-by-letter basis):
"'A.C.T. Commissioner' means the Commissioner for Australian Capital
Territory Revenue Collections appointed under the Taxation Administration
Ordinance
1987 of the Australian Capital Territory;
'Commonwealth Commissioner' means the Commissioner of Taxation;
'termination day' means the date of commencement of section 60 of the
Taxation Laws Amendment Act (No. 2) 1987;".
After section 5:
Insert the following section:
Transfer of administration from Commonwealth Commissioner
"5A. (1) On and after the termination day, this Act and related laws have
effect as
if:
(a) a reference in this Act (other than section 8) or a related law to the
Commissioner or to the Commissioner of Taxation were a reference to the
A.C.T.
Commissioner;
(b) anything done by, or done or arising in relation to, the Commonwealth
Commissioner before the termination day had been done by, or had been done
or had arisen in relation to, the A.C.T. Commissioner;
(c) a reference in sections 21J, 21K and 25 to an Act of which the A.C.T.
Commissioner has the general administration included a reference to a law of
the Territory of which the A.C.T. Commissioner has the general
administration;
(d) a reference in section 8 to the Commissioner were a reference to the
Commissioner or the Commonwealth Commissioner; and
(e) a reference in section 3C of the Taxation Administration Act 1953 and
section 8 of the Taxation (Interest on Overpayments) Act 1983 to the
Commissioner were a reference to the A.C.T. Commissioner or the Commonwealth
Commissioner.
"(2) Where, at the beginning of the termination day, the Commonwealth
Commissioner is a party to proceedings that are in whole or in part
proceedings
arising out of this Act or a related law:
(a) the proceedings, if continued, shall be contined with the Commonwealth
Commissioner as a party; and
(b) the Commonwealth Commissioner shall act as representative of the A.C.T.
Commissioner in so far as the proceedings are proceedings arising out of this
Act or the related law.
"(3) Section 8 of the Taxation Administration Act 1953 applies for the
purposes of this Act and any related law as if references in that section to
the Commonwealth Commissioner were references to the A.C.T. Commissioner.
"(4) In this section:
'party' includes intervenor;
'related law' means any law of the Commonwealth (other than Part II, and
Division 3 of Part IIIA, of the Taxation Administration Act 1953) to the
extent
to which the law has effect in relation to this Act.
"(5) A reference in any law of the Commonwealth to an Act of which the
Commonwealth Commissioner has the general administration includes a reference
to this Act.".
After subsection 14 (1):
Insert the following subsection:
"(1AA) This section does not apply in relation to the financial year
commencing on 1 July 1987 or any subsequent financial year.".
After subsection 15A (1):
Insert the following subsection:
"(1A) This section does not apply in relation to the financial year
commencing on 1 July 1987 or any subsequent financial year.".
After subsection 17 (1):
Insert the following subsection:
"(1AA) Nothing in this Act requires the furnishing of a return in respect
of
a period commencing on or after the termination day.".
After subsection 21J(1):
Insert the following subsection:
"(1A) This section does not apply in relation to the financial year
commencing on 1 July 1987 or any subsequent financial year.".
After subsection 21K(2):
Insert the following subsection:
"(2A) This section does not apply in relation to a group period ending on
or after the termination day.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1987No. 62, 1987 - SCHEDULE 4
Section 62
AMENDMENTS RELATING TO THE COMMISSIONER'S INFORMATION
GATHERING AND ACCESS POWERS
Australian Capital Territory Taxation (Administration) Act 1969
Section 97:
Add at the end the following subsection:
"(3) The occupier of land entered or proposed to be entered by an officer
under subsection (1) shall provide the officer with all reasonable facilities
and assistance for the effective exercise of powers under this section.
Penalty for a contravention of this subsection: $1,000.".
Bank Account Debits Tax Administration Act 1982
Section 58:
Add at the end the following subsection:
"(3) The occupier of land or premises entered or proposed to be entered by
an
officer under subsection (1) shall provide the officer with all reasonable
facilities and assistance for the effective exercise of powers under this
section.
Penalty for a contravention of this subsection: $1,000.".
Estate Duty Assessment Act 1914
Section 44:
Add at the end the following subsections:
"(2) An officer is not entitled to enter or remain on or in any land,
building or place under this section if, on being requested by the occupier
of
the land, building or place for proof of authority, the officer does not
produce an authority in writing signed by the Commissioner stating that the
officer is
authorised to exercise powers under this section.
"(3) The occupier of land, or of a building or place, entered or proposed
to
be entered by the Commissioner, or by an officer, under subsection (1) shall
provide the Commissioner or the officer with all reasonable facilities and
assistance for the effective exercise of powers under this section.
Penalty for a contravention of this subsection: $1,000.".
Income Tax Assessment Act 1936
After section 221Y:
Insert the following section in Division 2 of Part VI:
Power of Commissioner to obtain information
"221YAA. 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.".
Section 263:
Add at the end the following subsections:
"(2) An officer is not entitled to enter or remain on or in any building or
place under this section if, on being requested by the occupier of the
building
or place for proof of authority, the officer does not produce an authority in
writing signed by the Commissioner stating that the officer is authorised to
exercise powers under this section.
"(3) The occupier of a building or place entered or proposed to be entered
by the Commissioner, or by an officer, under subsection (1) shall provide the
Commissioner or the officer with all reasonable facilities and assistance for
the effective exercise of powers under this section.
Penalty for a contravention of this subsection: $1,000.".
Pay-roll Tax (Territories) Assessment Act 1971
Section 68:
Add at the end the following subsection:
"(3) The occupier of land entered or proposed to be entered by an officer
under subsection (1) shall provide the officer with all reasonable facilities
and assistance for the effective exercise of powers under this section.
Penalty for a contravention of this subsection: $1,000.".
Taxation Administration Act 1953
Section 13F:
Add at the end the following subsection:
"(4) The occupier of land entered or proposed to be entered by an officer
under subsection (2) shall provide the officer with all reasonable facilities
and assistance for the effective exercise of powers under this section.
Penalty for a contravention of this subsection: $1,000.".
Section 14J:
Add at the end the following subsection:
"(3) The occupier of land entered or proposed to be entered by an officer
under subsection (1) shall provide the officer with all reasonable facilities
and assistance for the effective exercise of powers under this section.
Penalty for a contravention of this subsection: $1,000.".
Tobacco Charges Assessment Act 1955
Section 41:
Add at the end the following subsections:
"(2) An officer is not entitled to enter or remain on or in any building or
place under this section if, on being requested by the occupier of the
building
or place for proof of authority, the officer does not produce an authority in
writing signed by the Commissioner stating that the officer is authorised to
exercise powers under this section.
"(3) The occupier of a building or place entered or proposed to be entered
by
the Commissioner, or by an officer, under subsection (1) shall provide the
Commissioner or the officer with all reasonable facilities and assistance for
the effective exercise of powers under this section.
Penalty for a contravention of this subsection: $1,000.".
Wool Tax (Administration) Act 1964
Section 90:
Add at the end the following subsections:
"(2) An officer is not entitled to enter or remain on or in any building or
place under this section if, on being requested by the occupier of the
building
or place for proof of authority, the officer does not produce an authority in
writing signed by the Commissioner stating that the officer is authorised to
exercise powers under this section.
"(3) The occupier of a building or place entered or proposed to be entered
by
the Commissioner, or by an officer, under subsection (1) shall provide the
Commissioner or the officer with all reasonable facilities and assistance for
the effective exercise of powers under this section.
Penalty for a contravention of this subsection: $1,000.".
NOTE ABOUT SECTION HEADINGS
On the commencement of subsection 57 (2) of this Act, the headings to sections
10 and 57 of the Bank Account Debits Tax Administration Act 1982 are altered
by omitting "banks" and substituting "financial institutions".
The
Act No. 62, 1987 amended as indicated in the Tables below.
Act |
Number and year |
Date of Assent |
Date of commencement |
Application, saving or transitional provisions |
62, 1987 |
5 June 1987 |
|||
108, 1987 |
13 Nov 1987 |
S. 45: Royal Assent |
— | |
75, 2010 |
28 June 2010 |
Schedule 6 (item 39): 29 June 2010 |
— |
am. = amended rep. = repealed rs. = repealed and substituted | |
Provision affected | How affected |
S. 47........................................ | am. No. 108, 1987 |
S. 48........................................ | rep. No. 75, 2010 |
0
0
0