Taxation Laws Amendment Act (No. 2) 1991 (Cth)
This compilation was prepared on 23 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 1 - PRELIMINARY
Section
Short title [
Commencement [
PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
Principal Act
Indexation factor for valuation purposes - non-remote housing
Repeal of sections 65B and 65C
Insertion of new section:
Reduction of taxable value of fringe benefits in relation to
1991-92 year of tax - Cocos (Keeling) Islands
Assessment on assumption
Remote area holiday transport
Christmas Island and Cocos (Keeling) Islands
10. Consequential amendments - repeal of sections 65B and 65C of the
Principal Act
11. Consequential amendments - Cocos (Keeling) Islands
12. Application of amendments
13. Amendment of assessments
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
14. Principal Act
15. Interpretation
16. Exemptions
17. Repeal of section 23AD
18. Exemption of certain income derived in respect of approved overseas
projects
19. Exemption of income earned in overseas employment
20. Insertion of new Division:
Interpretation - meaning of `exempt' and `not exempt'
Interpretation - payments derived when due
Index of payments covered by Division
Index of payments covered by Subdivision
Interpretation - supplementary amounts
Interpretation - expressions used in the
Age pension
Invalid pension
Wife pension
Carer pension
Sole parent pension
Widowed person allowance
Widow B pension
Sheltered employment allowance
Rehabilitation allowance
Unemployment benefit
Job search allowance
Employment entry payment
Sickness benefit
Special benefit
Special needs age pension
Special needs invalid pension
Special needs wife pension
Special needs sole parent pension
Special needs widow B pension
Bereavement payments - special needs pensions
Family allowance
Family allowance supplement
Child disability allowance
Double orphan pension
Mobility allowance
Exempt bereavement payment calculator A
Index of payments covered by Subdivision
Interpretation - supplementary amounts
Interpretation - expressions used in the
Interpretation - meaning of `pension age'
Section 13 pension
Age service pension
Invalidity service pension
Wife service pension
Carer service pension
Section 70 pension
Clothing allowance
Attendant allowance
Section 98A bereavement payment
Section 99 funeral benefit
Section 100 funeral benefit
Decoration allowance
Victoria Cross allowance
Recreation transport allowance
Vehicle Assistance Scheme
Special assistance
Temporary incapacity allowance
Loss of earnings allowance
Travelling expenses
Pharmaceutical supplement
Exempt bereavement payment calculator B
Seamen's war pensions and allowances
Bereavement payments
Payments by virtue of the
Allowances under Part III
Domiciliary nursing care benefit
Similar Australian and United Kingdom veterans' payments
Wounds and disability pensions
Occupational superannuation payments not covered by this
Division
21. Application of Division - 1985-86 to 1990-91
22. Insertion of new section:
Application of Division - 1991-92 and subsequent years
23. Insertion of new section:
Transitional capital gains tax provisions for certain Cocos
(Keeling) Islands assets
24. Amounts received on retirement or termination of employment in lieu of
long service leave
25. Securities lending arrangements
26. Interpretation
27. Insertion of new section:
Subdivision has effect subject to section 160AQUA (transfer of
shareholder status for tax purposes)
28. Distribution benefits - CFCs
29. Bad debts of money-lenders not allowable deductions where attributable
to listed country branches
30. Deduction of expenditure on prevention of land degradation
31. Gifts, pensions etc.
32. Rebates for residents of isolated areas
33. Interpretation
34. Payment of interest by taxpayer on distributions from certain
non-resident trust estates
35. Persons to whom Division applies
36. Disposal, loss, destruction or termination of use of property
37. Insertion of new section:
Application of section 122K before 1 July 1991 - subsequent use
of property for rehabilitation
38. Disposal, loss, destruction or termination of use of property
39. Insertion of new section:
Application of section 124AM before 1 July 1991 – subsequent
use of property for rehabilitation
40. Insertion of new Division:
Interpretation
Deduction of expenditure on rehabilitation-related activities
Rehabilitation-related activity
No deduction for certain expenditure
No deduction where expenditure is recouped
Transactions between persons not at arm's length
Property used for rehabilitation-related activities taken to be
used for the purpose of producing assessable income
41. Foreign debt
42. Foreign equity
43. Section 128F debenture amounts
44. Adjustment of foreign equity in certain cases involving resident holding
companies of financial institutions
45. Insertion of new section:
159GZLB. Transition to wholly-owned banking group – resident company
group and adjustment of foreign equity
46. Rebates for dependants
47. Housekeeper
48. Interpretation
49. Rebate in respect of certain pensions, benefits etc.
50. Insertion of new section:
Rebate for certain Cocos (Keeling) Islands income – 1991-92
51. Credits in respect of foreign tax
52. Interpretation
53. Insertion of new Division:
160AQUA. Transfer of shareholder status for tax purposes – cum-dividend
stock exchange sales and securities lending arrangements
160AQUB. Securities dealer to give dividend statement to other party –
cum-dividend sale
160AQUC. No securities dealer - party to cum-dividend sale contract to
give dividend statement to other party
160AQUD. Borrower under a securities lending arrangement to give
dividend statement to lender
54. General application of Part in relation to corporate trust estates
55. Penalty for setting out incorrect amounts in dividend statements
56. Deemed assessment
57. Quotation of tax file number in employment declaration
58. Effect of incorrect quotation of tax file number
59. Explanation of terms: investment, investor, investment body
60. Insertion of new sections:
Quotation of investment body remitter number to be alternative
to quoting tax file number
Quotation of tax file number in connection with indirectly held
investment
61. Investments held jointly
62. Persons receiving certain pensions etc. - employment
63. Persons receiving certain pensions etc. - investments
64. Non-residents
65. When income tax becomes due and payable
66. Interpretation
67. Certain employees to be subject to provisional tax
68. Uplifted provisional tax amount
69. Provisional tax on estimated income
70. Interpretation
71. Duty of payer to pay deducted amount to Commissioner
72. Credits in respect of deducted amounts
73. Interpretation
74. Medicare levy
75. Prescribed persons
76. Insertion of new section:
Modified application of bad debt provisions
77. Reduction of section 456 assessability where item subject to foreign
accruals tax
78. Assessability in respect of certain dividends paid by a CFC
79. Insertion of new section:
Keeping of records - section 457
80. Insertion of new section:
Keeping of records - section 459A
81. Offence of failing to keep records
82. Circumstances where records not required to be kept – reasonable excuse
etc.
83. Application of amendments
84. Amendment of assessments
PART 4 - AMENDMENT OF THE INCOME TAX RATES ACT 1986
85. Principal Act
86. Interpretation
87. Interpretation
88. Application of amendments
PART 5 - AMENDMENT OF THE MEDICARE LEVY ACT 1986
89. Principal Act
90. Amount of levy - person who has spouse or dependants
91. Application of amendments
PART 6 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953
92. Principal Act
93. Interpretation
SCHEDULE 1
AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986 CONSEQUENTIAL ON
THE REPEAL OF SECTIONS 65B AND 65C OF THAT ACT
SCHEDULE 2
CONSEQUENTIAL AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
RELATING TO THE COCOS (KEELING) ISLANDS
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 2) 1991.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 2
Commencement [
2. (1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Sections 4, 6, 8, 9 and 11 commence on the day after the day on which
this Act receives the Royal Assent.
(3) Section 29 commences, or is taken to have commenced, immediately after
the commencement of section 14 of the Taxation Laws Amendment Act 1991.
(4) Paragraph 33 (a) is taken to have commenced at the same time as section
59 of the Taxation Laws Amendment Act (No. 2) 1990.
(5) Paragraphs 33 (c) and (d) are taken to have commenced at the same time
as section 31 of the Taxation Laws Amendment Act (No. 3) 1989.
(6) Section 77 commences, or is taken to have commenced, immediately after
the commencement of section 76 of the Taxation Laws Amendment Act 1991.
(7) Section 78 is taken to have commenced immediately after the commencement
of the Taxation Laws Amendment (Foreign Income) Act 1990.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment
Act 1986.*1*
*1* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112,
1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78,
1988); Nos. 6, 78, 95, 97 and 153, 1988; Nos. 2, 11, 97 and 107, 1989; Nos.
58, 60 and 135, 1990; and No. 48, 1991.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 4
Indexation factor for valuation purposes - non-remote housing
4. Section 28 of the Principal Act is amended by inserting in paragraph (5)
(b) "and the Territory of Cocos (Keeling) Islands" after "Christmas
Island".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 5
Repeal of sections 65B and 65C
5. Sections 65B and 65C of the Principal Act are repealed.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 6
6. Before section 65CA of the Principal Act the following section is
inserted in Division 14 of Part III:
Reduction of taxable value of fringe benefits in relation to 1991-92 year of
tax - Cocos (Keeling) Islands
"65CAA. (1) Where:
a fringe benefit (not being a car fringe benefit) in relation to an
employer in relation to the year of tax commencing on 1 April 1991 relates to
a particular employee; and
on or after 1 July 1991, the employee derived salary or wages from
Cocos (Keeling) Islands service, being salary or wages paid by the employer;
and
the fringe benefit was provided in respect of that Cocos (Keeling)
Islands service; and
except in the case of a loan fringe benefit, a housing fringe benefit
on or after 1
July 1991; and
in the case of a loan fringe benefit, a housing fringe benefit or a
period residual fringe benefit - the whole or a part (which whole or part is
in this subsection called the `reducible portion') of the taxable value of the
fringe benefit is attributable to the obligation to repay the whole or any
part of the loan, the subsistence of the housing right or the provision of the
residual benefit, as the case may be, on or after 1 July 1991;
the amount that, but for this subsection and sections 62, 64 and 65, would be
the taxable value or, if paragraph (e) applies, the reducible portion of
taxable value, of that fringe benefit in relation to the year of tax is to be
reduced by 50%.
"(2) Where:
one or more car fringe benefits (in this subsection called the
`eligible car fringe benefits') in relation to an employee, in relation to an
employer, in relation to the year of tax commencing on 1 April 1991 relate to
a particular car; and
on or after 1 July 1991, the employee derived salary or wages from
Cocos (Keeling) Islands service, being salary or wages paid by the employer;
and
the eligible car fringe benefits were provided on or after 1 July 1991
in respect of that Cocos (Keeling) Islands service;
the amount that, but for this subsection and sections 62, 64 and 65, would be
the taxable value, or the sum of the taxable values, as the case requires, of
the car fringe benefits in relation to the employer in relation to the year of
tax that relate to the car is to be reduced by the amount calculated using the
formula:
x 0.5
where:
`Taxable value' means so much of the taxable value or the sum of the taxable
values as is attributable to the eligible car fringe benefits.
"(3) A reference in this section to Cocos (Keeling) Islands service is a
reference to service as an employee where:
salary or wages are payable in respect of the service; and
if:
section 24BB of the Income Tax Assessment Act 1936 had
not been enacted; and
(ii) section 24BA of that Act had applied in relation to
the year of income in which the salary or wages were derived;
the salary or wages would have been exempt income under section 24G of that
Act.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 7
Assessment on assumption
7. Section 124A of the Principal Act is amended by omitting from paragraph
(1) (b) "the whole or a part of".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 8
Remote area holiday transport
8. Section 143 of the Principal Act is amended by adding at the end of
paragraph (4) (d) "and the Territory of Cocos (Keeling) Islands".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 9
Christmas Island and Cocos (Keeling) Islands
9. Section 157 of the Principal Act is amended:
(a) by adding at the end of subsection (1) "and to the Territory of Cocos
(Keeling) Islands";
(b) by inserting in subsection (2) "or the Territory of Cocos (Keeling)
Islands" after "Christmas Island".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 10
Consequential amendments - repeal of sections 65B and 65C of the Principal
Act
10. The Principal Act is amended as set out in Schedule 1.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 11
Consequential amendments - Cocos (Keeling) Islands
11. The Principal Act is amended as set out in Schedule 2.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 12
Application of amendments
12. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) The repeal of sections 65B and 65C of the Principal Act effected by this
Part and the amendments made by sections 7 and 10 apply in relation to
eligible foreign remuneration, or foreign earnings, derived on or after 1 July
1990 and:
except in the case of a loan fringe benefit, a housing fringe benefit
or a period residual fringe benefit - in relation to a benefit provided on or
after 1 July 1990; or
in the case of a loan fringe benefit, a housing fringe benefit or a
period residual fringe benefit - in relation to the obligation to repay the
whole or any part of the loan, the subsistence of the housing right or the
provision of the residual benefit, as the case may be, on or after 1 July
1990.
(3) Subject to this section, the amendments made by sections 4, 6, 8, 9 and
11 apply to assessments of the fringe benefits taxable amount of an employer
of the year of tax commencing on 1 April 1991 and of each subsequent year of
tax.
(4) In spite of anything in the amended Act, the amended Act applies in
relation to the Territory of Cocos (Keeling) Islands as if that Territory had
become an internal Territory on 1 July 1991.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 13
Amendment of assessments
13. Section 74 of the Principal Act does not prevent the amendment of an
assessment made before the commencement of this section for the purpose of
giving effect to this Act.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 14
Principal Act
14. In this Part, "Principal Act" means the Income Tax Assessment Act
1936.*2*
*2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No.
5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69,
1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37,
1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48,
1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No.
43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65,
1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960;
Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46,
68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos.
19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101,
1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972;
Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20,
1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,
165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171
and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24,
57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and
175, 1981; 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, 168 and
174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,
109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,
1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,
1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by
No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as
amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);
Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70,
73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105,
1989); Nos. 20, 35, 45, 57, 58, 60, 61, 87, 119 and 135, 1990; and Nos. 4, 5,
6, 48 and 55, 1991.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 15
Interpretation
15. Section 6 of the Principal Act is amended by inserting in subsection (1)
the following definition:
" `Timor Gap treaty' means the Treaty defined by subsection 5 (1) of the
Petroleum (Australia--Indonesia Zone of Cooperation) Act 1990;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 16
Exemptions
16. Section 23 of the Principal Act is amended by omitting paragraph (jca).
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 17
Repeal of section 23AD
17. Section 23AD of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 18
Exemption of certain income derived in respect of approved overseas projects
18. Section 23AF of the Principal Act is amended:
(a) by omitting from subsection (1) "365" and substituting "91";
(b) by omitting subsection (2);
(c) by omitting from paragraph (15) (b) "subsection (1) or (2)" and
substituting "this section";
(d) by omitting subsections (17A) and (17B) and substituting the following
subsections:
"(17A) If the income of a taxpayer of a year of income consists of an amount
that is exempt from tax under this section (in this section called the `exempt
amount') and other income, the amount of tax (if any) payable in respect of
the other income is calculated using the formula:
Notional gross tax
x Other taxable
income
where:
`Notional gross tax' means the number of whole dollars in the amount of income
tax that would be assessed under this Act in respect of the taxpayer's taxable
income of the year of income if:
the exempt amount were not exempt income; and
the taxpayer were not entitled to any rebate of tax; `Notional gross
taxable income' means the number of whole dollars in the amount that would
have been the taxpayer's taxable income of the year of income if the exempt
amount were not exempt income;
`Other taxable income' means the amount (if any) remaining after deducting
from so much of the other income as is assessable income:
any deductions allowable to the taxpayer in relation to the year of
income that relate exclusively to that assessable income; and
so much of any other deductions (other than apportionable deductions)
allowable to the taxpayer in relation to the year of income as, in the opinion
of the Commissioner, may appropriately be related to that assessable income;
and
the amount calculated using the formula in subsection (17B).
"(17B) The formula referred to in paragraph (17A) (f) is:
Apportionable
Other taxable income
+ Notional gross
taxable income
where:
`Apportionable deductions' means the number of whole dollars in the
apportionable deductions allowable to the taxpayer in relation to the year of
income;
`Other taxable income' means the amount that, apart from paragraph (17A) (f),
would be represented by the component `Other taxable income' in subsection
(17A);
`Notional gross taxable income' means the number of whole dollars in the
amount that would have been the taxpayer's taxable income of the year of
income if the exempt amount were not exempt income.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 19
Exemption of income earned in overseas employment
19. Section 23AG of the Principal Act is amended:
by omitting from subsection (1) "365" and substituting "91";
by omitting subsections (2), (3), (4) and (5) and substituting the
following subsections:
"(2) An amount of foreign earnings derived in a foreign country is not exempt
from tax under this section if the amount is exempt from income tax in the
foreign country only because of any of the following:
a law of the foreign country giving effect to a double tax agreement;
a double tax agreement;
provisions of a law of the foreign country under which income covered
by any of the following categories is generally exempt from income tax:
income derived in the capacity of an employee;
income from personal services;
(iii) similar income;
the law of the foreign country does not provide for the imposition of
income tax on one or more of the categories of income mentioned in paragraph
(c);
a law of the foreign country corresponding to the International
Organizations (Privileges and Immunities) Act 1963 or to the regulations under
that Act;
an international agreement to which Australia is a party and that deals
with:
diplomatic or consular privileges and immunities; or
(ii) privileges and immunities in relation to persons
connected with international organisations;
a law of the foreign country giving effect to an agreement covered by
paragraph (f).
"(3) If the income of a taxpayer of a year of income consists of an amount
that is exempt from tax under this section (in this section called the `exempt
amount') and other income, the amount of tax (if any) payable in respect of
the other income is calculated using the formula:
Notional gross tax
x Other taxable
income
where:
`Notional gross tax' means the number of whole dollars in the amount of income
tax that would be assessed under this Act in respect of the taxpayer's taxable
income of the year of income if:
the exempt amount were not exempt income; and
the taxpayer were not entitled to any rebate of tax;
`Notional gross taxable income' means the number of whole dollars in the
amount that would have been the taxpayer's taxable income of the year of
income if the exempt amount were not exempt income;
`Other taxable income' means the amount (if any) remaining after deducting
from so much of the other income as is assessable income:
any deductions allowable to the taxpayer in relation to the year of
income that relate exclusively to that assessable income; and
so much of any other deductions (other than apportionable deductions)
allowable to the taxpayer in relation to the year of income as, in the opinion
of the Commissioner, may appropriately be related to that assessable income;
and
the amount calculated using the formula in subsection (4).
"(4) The formula referred to in paragraph (3) (f) is:
Apportionable
Other taxable income
+ Notional gross
taxable income
where:
`Apportionable deductions' means the number of whole dollars in the
apportionable deductions allowable to the taxpayer in relation to the year of
income;
`Other taxable income' means the amount that, apart from paragraph (3) (f),
would be represented by the component `Other taxable income' in subsection
(3);
`Notional gross taxable income' means the number of whole dollars in the
amount that would have been the taxpayer's taxable income of the year of
income if the exempt amount were not exempt income.";
(c) by omitting subsection (6H);
(d) by inserting in subsection (7) the following definitions: " `double tax
agreement' means:
double tax agreement within the meaning of Part X; or
the Timor Gap treaty;
`income tax', in relation to a foreign country:
in all cases - does not include a municipal income tax; and
in the case of a federal foreign country - does not include a State
income tax;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 20
20. After section 24 of the Principal Act the following Division is
inserted:
"Division 1AA - Exemption from income tax - payments under
the Social Security Act 1991 and the Veterans' Entitlements
Act 1986, and similar payments
"Subdivision A - Preliminary
Interpretation - meaning of `exempt' and `not exempt'
24A. In this Division:
`exempt' means exempt from income tax;
`not exempt' means not exempt from income tax under this Division.
Interpretation - payments derived when due
"24AA. (1) For the purposes of the application of this Division to a payment
derived by a taxpayer, the payment is taken to have been derived on the day on
which the payment became due.
"(2) For the purposes of the application of this Division to a payment that
would have been derived by a taxpayer in particular circumstances, the payment
is taken to have been derived on the day on which the payment would have
become due in those circumstances.
Index of payments covered by Division
"24AAA. The following is an index of payments covered by this Division:
Subdivision Sections
Subdivision B 24AB-24ABZB
Act 1991
Payments under the Veterans'
Entitlements Act 1986
24AC-24ACX
Payments under the Seamen's
Subdivision D 24AD-24ADA
Payments by virtue of the Veterans'
Entitlements (Transitional Provisions
Subdivision E 24AE
Allowances under Part III of the
Subdivision F 24AF
Payments of domiciliary nursing care
benefit under Part VB of the National
Subdivision G 24Ag
Similar Australian and United Kingdom
Subdivision H 24AH
Subdivision I 24AI
"Subdivision B - Exemption from income tax - payments under
the Social Security Act 1991
Index of payments covered by Subdivision
"24AB. The following is an index of payments under the Social Security Act
1991 covered by this Subdivision:
Section
24ABC
24ABF
24ABY
24ABZ
24ABN
24ABW
24ABX
24ABD
24ABM
24ABZA
24ABK
24ABJ
24ABO
24ABG
24ABP
24ABG
24ABR
24ABT
24ABU
24ABS
24ABL
24ABI
24ABH
24ABE
Interpretation - supplementary amounts
"24ABA. (1) For the purpose of applying this Subdivision to a payment
derived by a taxpayer, the supplementary amounts are as follows:
Supplementary amounts
(a) so much of the payment as
was included in the payment
because the taxpayer or the
partner of the taxpayer paid
rent;
(b) so much of the payment
as represents an increase in the
rate of the pension that is
calculated by reference to
another person or other persons;
so much of the payment as
was included in the payment by
way of remote area allowance.
Unemployment benefit
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 21
Application of Division - 1985-86 to 1990-91
21. Section 24BA of the Principal Act is amended by inserting "preceding the
year of income commencing on 1 July 1991" after "all subsequent years of
income".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 22
22. After section 24BA of the Principal Act the following section is
inserted:
Application of Division - 1991-92 and subsequent years
"24BB. This Division applies to assessments in respect of income of the
1991-92 year of income and of all subsequent years of income as if:
the definition of `prescribed Territory' in subsection 24B (1) were
omitted and the following definition were substituted:
` "prescribed Territory" means Norfolk Island.'; and
subsection 24L (5) were omitted and the following subsection were
substituted:
`(5) In subsections (1), (3), (4), (4A), (4B) and (4C),
"Australia", "resident" and "non-resident" have the meanings that those
expressions would have if subsection 7A (2) did not refer to Norfolk
Island.'.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 23
23. After section 24N of the Principal Act the following section is
inserted:
Transitional capital gains tax provisions for certain Cocos (Keeling) Islands
assets
"24P. (1) Subject to an election under subsection (5), this section applies
to an asset held by a taxpayer where all of the following conditions are
satisfied:
the asset was owned by the taxpayer at the end of 30 June 1991;
if the asset had been disposed of by the taxpayer on 1 July 1991, Part
IIIA would, or would, apart from section 160zzf and Divisions 5A, 7A and 17 of
that Part, have applied in respect of that disposal;
if:
the asset had been disposed of by the taxpayer on 1
July 1991; and
profits or gains of a capital nature had been derived
by the taxpayer in respect of that disposal; and
(iii) section 24BB had not been enacted; and
section 24BA had applied in relation to the year of
income in which disposal occurred;
the profits or gains would have been exempt income under
this Division.
"(2) For the purposes of Part IIIA:
except for the purposes of determining the cost base to the taxpayer of
the asset - the asset is taken to have been acquired by the taxpayer on 30
June 1991; and
the taxpayer is taken to have paid or given as consideration in respect
of the acquisition of the asset an amount equal to the market value of the
asset as at the end of 30 June 1991; and
the taxpayer is taken to have paid or given that consideration on 30
June 1991.
"(3) Paragraphs 160ZZU (1) (a) and (b) do not apply in relation to the
taxpayer in relation to the asset.
"(4) If a provision of Part IIIA provides that, if a disposal of an asset
occurs within 12 months after the day (in this subsection called the
`acquisition day') on which the asset was acquired by a taxpayer, a reference
in another provision of that Part to the indexed cost base to the taxpayer in
respect of the asset is to be construed as a reference to the cost base to the
taxpayer in respect of the asset, paragraph (2) (a) of this section does not
apply for the purposes of determining the acquisition day for the purposes of
the first-mentioned provision.
"(5) If, as at the date on which a taxpayer disposes of an asset, the
taxpayer has complied with section 160zzu in relation to the asset, the
taxpayer may elect that this section does not apply in relation to the asset.
"(6) An election for the purposes of subsection (5) must be lodged with the
Commissioner on or before the date of lodgment of the taxpayer's return of
income for the year of income in which the disposal occurred or within such
further period as the Commissioner allows.
"(7) An expression used in this section and in Part IIIA has the same
meaning in this section as it has in that Part.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 24
Amounts received on retirement or termination of employment
in lieu of long service leave
24. Section 26AD of the Principal Act is amended by adding at the end the
following subsection:
"(13) Where:
apart from this subsection, an amount would be included in the
assessable income of a taxpayer in respect of an amount to which this section
applies (in this subsection called the `lump sum amount'); and
apart from section 24BB, no amount, or a lesser amount, would be
included in the assessable income of the taxpayer in respect of the lump sum
amount;
this section has effect in relation to the lump sum amount as if:
references in the preceding provisions of this section (other than
subsection (12)) to 15 August 1978 were references to 30 June 1991; and
subsection (5) were omitted.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 25
Securities lending arrangements
25. Section 26BC of the Principal Act is amended:
by omitting "listed" from paragraph (a) of the definition of "eligible
security" in subsection (1) and substituting "public";
by inserting in subsection (1) the following definitions:
" `distribution' includes:
interest; or
a dividend; or
a share issued by a company to a shareholder in the company where the
share is issued:
as a bonus share; or
in the circumstances mentioned in subsection 6BA (1);
or
an amount credited by the trustee of a unit trust to a unit holder as a
unit holder; or
a unit issued by the trustee of a unit trust in the circumstances that
would be covered by section 160ZYC if paragraph (d) of that section had not
been enacted;
`public company' means:
a listed company; or
a mutual life assurance company (within the meaning of section 110);
or
a company in which a government or an authority of a government has a
controlling interest; or
a company that is a subsidiary of a company covered by paragraph (a),
(b) or (c);
`subsidiary' has the same meaning as in section
160ZZO.";
by omitting from subparagraph (3) (a) (ii) "not being later than 3
months" and substituting "being less than 12 months";
by omitting paragraph (3) (c) and substituting the following
paragraph:
if any of the following events occurred during the period (in this
section called the `borrowing period') commencing at the original disposal
time and ending at the re-acquisition time:
the making or payment of a distribution (whether in
property or money) in respect of the borrowed security;
the issue, by the company, trustee, government or
government authority concerned, of a right or option in respect of the
borrowed security;
if the borrowed security is a right or option:
the giving of a direction by the lender to the
borrower to exercise the right or option; or
the giving of a direction by the lender to the
borrower to exercise an identical right or option;
then (even if the event occurred after the borrowed security was disposed of
by the borrower to a third party), the lender receives from the borrower,
under the agreement:
if subparagraph (i) applies:
the distribution; or
if the distribution is in property - identical
property; or
a payment (in this section called the `compensatory
payment') equal to the value to the lender of the distribution; or
if subparagraph (ii) applies:
the right or option; or
an identical right or option; or
a payment (in this section also called the
`compensatory payment') equal to the value to the lender of the right or
option; or
if subparagraph (iii) applies:
the shares, units, bonds, debentures or financial
instruments that resulted from exercising the right or option; or
shares, units, bonds, debentures or financial
instruments that are identical to those that resulted from, or that would have
resulted from, exercising the right or option; or
a payment (in this section also called the
`compensatory payment') equal to the value to the lender of the shares, units,
bonds, debentures or financial instruments that resulted from, or would have
resulted from, exercising the right or option; and";
(e) by inserting after subsection (3) the following subsection:
"(3A) For the purposes of paragraph (3) (c), if, apart from this subsection,
either of the following events occurred after the commencement of the
borrowing period:
the making or payment of a distribution (whether in property or money)
in respect of the borrowed security;
the issue, by the company, trustee, government or government authority
concerned, of a right or option in respect of the borrowed security;
(even if the event occurred after the borrowed security was disposed of by the
borrower to a third party), the event is taken to have occurred during the
borrowing period if, and only if, (assuming that the borrower had held the
borrowed security at all times during the borrowing period) the entitlement to
the distribution or issue would have been attributable to the borrower's
holding of the borrowed security at a particular time during the borrowing
period.";
(f) by inserting after subsection (4) the following subsections:
"(4A) If the lender receives a compensatory payment covered by
sub-subparagraph (3) (c) (v) (C), then, in determining whether an amount is
included in the assessable income of the lender under a provision of this Act
other than Part IIIA, the lender is to be treated as if:
the lender had held the borrowed security at all relevant times during
the borrowing period; and
the right or option had been issued directly to the lender in respect
of the borrowed security; and
the the lender had disposed of the right or option immediately after
its issue for a consideration equal to the compensatory payment.
"(4B) If the lender receives a compensatory payment covered by
sub-subparagraph (3) (c) (vi) (C), then, in determining whether an amount is
included in the assessable income of the lender under a provision of this Act
other than Part IIIA, the lender is to be treated as if:
the lender had held the right or option at all relevant times during
the borrowing period; and
the lender had exercised the right or option; and
the lender had immediately disposed of the shares, units, bonds,
debentures or financial instruments that resulted from exercising the right or
option for a consideration equal to the compensatory payment.";
by omitting from subparagraph (6) (b) (i) all the words after "of that
Part" and substituting the following word and sub-subparagraphs:
"if:
the lender had disposed of the borrowed security
immediately before the acquisition of the replacement security; and
that Part had applied in respect of the disposal of
the borrowed security by the lender; or";
(h) by omitting subsection (7) and substituting the following subsection:
"(7) If, in the case of a borrowed security to which paragraph (6) (b)
applies, the replacement security was disposed of by the lender (otherwise
than under a transaction covered by subsection (3)):
if the disposal of the replacement security occurred within 12 months
after the earliest day on which a paired security in relation to the
replacement security was acquired by the lender (otherwise than under a
transaction covered by subsection (3)) - the reference in paragraph (6) (b) to
the indexed cost base to the lender of the borrowed security is to be read as
a reference to the cost base to the lender of the paired security; or
if the disposal of the replacement security occurred not less than 12
months after the earliest day on which a paired security in relation to the
replacement security was acquired by the lender (otherwise than under a
transaction covered by subsection (3)) - subsection 160Z (3) does not apply to
the disposal of the replacement security.";
by inserting after subsection (9) the following subsections:
"(9A) Subject to subsection 160zh (6), a reference in subsection 160ZH (1),
(2) or (3) to the incidental costs to the borrower of the acquisition of an
eligible security covered by sub-subparagraph (3) (a) (ii) (B) includes a
reference to a compensatory payment incurred by the borrower.
"(9B) For the purposes of the application of Part IIIA to a right or option
received by the lender as mentioned in subparagraph (3) (c) (v), the borrower
and lender are to be treated as if the eligible security in respect of which
the right or option was issued had been held by the lender at the time of the
acquisition of the right or option.
"(9C) For the purposes of the application of Part IIIA to a share, unit,
bond, debenture or financial instrument received by the lender as mentioned in
subparagraph (3) (c) (vi), the borrower and the lender are to be treated as
if:
the share, unit, bond, debenture or financial instrument had been
received as the result of the exercise of the borrowed security; and
the borrowed security had been held by the lender at the time of the
exercise; and
the lender had exercised the borrowed security; and
the lender had exercised the borrowed security at the time the
direction concerned was given; and
the amount of the contribution (if any) made by the lender to the
borrower in respect of the carrying out of the direction were an amount paid
as consideration by the lender in respect of the exercise.
"(9D) If a distribution covered by subparagraph (3) (c) (i) consists of one
or more shares issued by a company to the borrower or to a third party in the
circumstances mentioned in subsection 6BA (1), then, for the purposes of the
applicaton of Part IIIA to a share (in this subsection called the `notional
bonus share') received by the lender in relation to the distribution in the
circumstances mentioned in sub-subparagraph (3) (c) (iv) (A) or (B), the
borrower and the lender are to be treated as if:
the company had issued the notional bonus share to the lender instead
of the borrower or the third party, as the case requires; and
the notional bonus share had been issued in the circumstances mentioned
in subsection 6BA (1); and
the notional bonus share had been issued in respect of the borrowed
security; and
the lender had held the borrowed security at the time the notional
bonus share was issued.
"(9E) If a distribution covered by subparagraph (3) (c) (i) consists of one
or more units issued by the trustee of a unit trust to the borrower or to a
third party in the circumstances covered by section 160ZYC, then, for the
purposes of the application of Part IIIA to a unit (in this subsection called
the `notional bonus unit') received by the lender in relation to the
distribution in the circumstances mentioned in sub-subparagraph (3) (c) (iv)
(A) or (B), the borrower and the lender are to be treated as if:
the trustee had issued the notional bonus unit to the lender instead of
the borrower or the third party, as the case requires; and
the notional bonus unit had been issued in the circumstances covered by
section 160ZYC; and
the notional bonus unit had been issued in respect of the borrowed
security; and
the lender had held the borrowed security at the time the notional
bonus unit was issued.
"(9F) If the lender receives a compensatory payment covered by
sub-subparagraph (3) (c) (v) (C), then, for the purposes of the application of
Part IIIA to the lender, the lender is to be treated as if:
the lender had held the borrowed security at all relevant times during
the borrowing period; and
the right or option had been issued directly to the lender in respect
of the borrowed security; and
the lender had disposed of the right or option immediately after its
issue for a consideration equal to the compensatory payment.
"(9G) If the lender receives a compensatory payment covered by
sub-subparagraph (3) (c) (vi) (C), then, for the purposes of the application
of Part IIIA to the lender, the lender is to be treated as if:
the lender had held the right or option at all relevant times during
the borrowing period; and
the lender had exercised the right or option; and
the lender had immediately disposed of the shares, units, bonds,
debentures or financial instruments that resulted from exercising the right or
option for a consideration equal to the compensatory payment.";
by omitting from subsection (10) "or (9)" and substituting ",(9), (9A),
(9B), (9C), (9D), (9E), (9F) or (9G)";
by omitting from subsection (11) "and (9)" and substituting ",(9),
(9A), (9B), (9C), (9D), (9E), (9F) and (9G)";
by inserting after subsection (11) the following subsections:
"(11A) If:
the lender receives from the borrower a distribution or identical
property covered by subparagraph (3) (c) (iv); and
assuming that the borrowed security had continued to be held by the
lender, an amount (in this subsection called the `otherwise assessable
amount') would have been included in the lender's assessable income of a year
of income in respect of the distribution concerned;
the lender's assessable income of the year of income includes an amount equal
to the otherwise assessable amount.
"(11B) If:
the lender receives from the borrower a compensatory payment covered by
sub-subparagraph (3) (c) (iv) (C); and
assuming that the borrowed security had continued to be held by the
lender, an amount (in this subsection called the `otherwise assessable
amount') would have been included in the lender's assessable income of a year
of income in respect of the distribution concerned;
the lender's assessable income of the year of income includes an amount equal
to the otherwise assessable amount.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 26
Interpretation
26. Section 27A of the Principal Act is amended by inserting after
subsection (14) the following subsection:
"(14A) Where an amount paid to a taxpayer (in this subsection called the
`received amount'), being an ETP, an annuity or a payment made as a supplement
to an annuity, would, apart from section 24bb and assuming that:
subsection 27C (1A) did not apply in relation to the received amount;
and
no part of the received amount was taken to be applied in accordance
with section 27D;
be wholly or partly exempt from tax because of Division 1A, the following
provisions have effect:
this Subdivision has effect in relation to the received amount as if:
references in this Subdivision to 30 June 1983 were
references to 30 June 1991; and
references in this Subdivision (other than in
subparagraph (a) (iii) of the definition of `superannuation fund' in
subsection (1)) to 1 July 1983 were references to 1 July 1991;
no amount is to be included in the assessable income of the taxpayer
under subsection 27C (1) in relation to the received amount.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 27
27. Before section 44 of the Principal Act the following section is
inserted:
Subdivision has effect subject to section 160AQUA (transfer of shareholder
status for tax purposes)
"43A. This Subdivision has effect subject to section 160AQUA (which deals with
transfer of shareholder status for tax purposes in cases involving a
cum-dividend stock exchange sale or a securities lending arrangement).".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 28
Distribution benefits - CFCs
Act is amended:
by omitting subparagraph (10) (j) (ii) and substituting the following
subparagraph:
if subparagraph (i) does not apply and there is
only one arrangement transfer - so much of the amount or market value of the
arrangement transfer as is attributable to the provision of the eligible
benefit; or";
by omitting the definition of "Total Excess" in subparagraph (10) (j)
(iii) and substituting the following definition:
" `Total Excess' means so much of the total amount or market value of all the
arrangement transfers as is attributable to the provision of the eligible
benefit;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 29
Bad debts of money-lenders not allowable deductions where
attributable to listed country branches
29. Section 63D of the Principal Act is amended by omitting from subsection
(1) "so much of the deduction is allowable as equals the amount calculated"
and substituting "a proportion of the deduction is allowable, being the
proportion calculated".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 30
Deduction of expenditure on prevention of land degradation
30. Section 75D of the Principal Act is amended:
by omitting subsection (1) and substituting the following subsections:
"(1) Subject to this section, this section applies to expenditure of a
capital nature that meets the requirements set out in subsections (1A) and
(1B).
"(1A) The expenditure must be incurred by a taxpayer:
who carries on a business of primary production on any land (in this
section called the `subject land') in Australia; or
who carries on a business, other than one of primary production or of
mining or quarrying, for the purpose of gaining or producing assessable income
from the use of any rural land (in this section also called the `subject
land') in Australia.
"(1B) The expenditure must also be incurred in, or in an extension of, any of
the following operations:
an operation primarily and principally for the purpose of the
eradication or extermination of animal or vegetable pests from the subject
land;
an operation primarily and principally for the purpose of the
destruction of weed or plant growth detrimental to the subject land;
an operation primarily and principally for the purpose of preventing or
combating land degradation otherwise than by the erection of fences on the
subject land;
an operation consisting of the erection of fences (including any
extension, alteration or addition to fences) on the subject land primarily and
principally for the purpose of excluding live-stock or vermin from areas
affected by land degradation in order to prevent or limit any extension or
aggravation of land degradation in those areas and to assist in the
reclamation of those areas;
an operation consisting of the erection of fences (including any
extension, alteration or addition to fences) to separate different land
classes on the subject land in accordance with an approved land management
plan in respect of the whole or part of the subject land;
an operation consisting of the construction on the subject land of
levee banks or similar improvements having like uses;
an operation (not being an operation consisting of the draining of
swamp or low-lying land) consisting of the construction on the subject land,
primarily and principally for the purpose of controlling salinity or assisting
in drainage control, of surface drainage works or sub-surface drainage
works.";
by omitting from paragraph (3) (a) "(1) (d)" and substituting "(1B) (d)
or (e)";
by omitting from paragraph (6) (b) "referred to in subsection (1) or an
extension of such an operation" and substituting "or extension referred to in
subsection (1B)";
by omitting from paragraph (7) (a) "of a kind referred to in subsection
(1) or an extension of such an operation" and substituting "or extension of a
kind referred to in subsection (1B)";
by omitting from paragraph (7) (b) "primary production" and
substituting "a kind referred to in paragraph (1A) (a) or (b)";
by omitting from paragraphs (9) (a), (10) (a) and (11) (a) "subsection
(1)" and substituting "subsection (1B)";
by adding at the end the following subsections:
"(14) In this section, a reference to an approved land management plan, in
relation to land, is a reference to a land management plan in relation to the
land that:
has been prepared by:
an officer of a land conservation agency having
authority for the preparation of such plans; or
an approved farm consultant; or
has been approved in writing by:
an officer of a land conservation agency with
authority to do so; or
an approved farm consultant;
as being a suitable land management plan for the land.
"(15) For the purposes of subsection (14), a person is an approved farm
consultant only if an approval under this section of the person as a farm
consultant is in force.
"(16) The following persons may, in writing, approve a person as a farm
consultant for the purposes of this section:
the Secretary to the Department of Primary Industries and Energy;
an officer of that Department authorised in writing by its Secretary
for the purpose of giving such approvals.
"(17) In deciding whether to approve a person as a farm consultant, the
following matters are to be taken into account:
the qualifications, experience and knowledge of the person in relation
to land conservation and farm management;
the standing of the person in the professional community;
any other relevant matters.
"(18) Subject to the Administrative Appeals Tribunal Act 1975, applications
may be made to the Tribunal by a person for review of a decision under
subsection (16):
to refuse approval of the person as a farm consultant; or
to revoke the approval of the person as a farm consultant.
"(19) In this section:
`decision' has the same meaning as in the Administrative Appeals Tribunal Act
1975;
`land conservation agency' means a State or Territory Government department,
or authority, that has responsibility for land conservation;
`land management plan' means a plan for an area of land indicating:
different land classes comprising the land; and
the location of any fencing that would be required to separate any of
the land classes primarily and principally in order to prevent land
degradation;
together with, or including, a description of the kind of fencing and how it
would prevent land degradation.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 31
Gifts, pensions etc.
31. Section 78 of the Principal Act is amended by inserting in subparagraph
(1) (a) (xxiv) "Royal" before "College".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 32
Rebates for residents of isolated areas
32. Section 79A of the Principal Act is amended by omitting the definition
of "prescribed allowance" in subsection (4) and substituting the following
definition:
" `prescribed allowance' means so much of a payment under the Social Security
Act 1991 or the Veterans' Entitlements Act 1986 as was included in the payment
by way of remote area allowance;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 33
Interpretation
33. Section 82KH of the Principal Act is amended:
by omitting from subsection (1BA) all the words after "any part of
that" and substituting "eligible relevant expenditure, sections 79E, 79F, 80,
80AAA and 80AA are to be applied on the basis that the amount of eligible
relevant expenditure is an amount of relevant expenditure but is not an amount
of eligible relevant expenditure.";
(b) by omitting from paragraph (1G) (s) "or (t)";
(c) by adding at the end of paragraph (1G) (s) "and";
(d) by omitting paragraph (1G) (t);
(e) by omitting from paragraph (1JE) (b) "or (t)";
(f) by omitting paragraph (1L) (t).
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 34
Payment of interest by taxpayer on distributions from certain
non-resident trust estates
34. Section 102AAM the Principal Act is amended by omitting from paragraph
(1) (c) "the distributed amount is" and substituting "so much of the
distributed amount as is not a rebatable section 99B amount for the purposes
of section 102AAN is".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 35
Persons to whom Division applies
35. Section 102AC of the Principal Act is amended:
(a) by omitting from subparagraph (2) (c) (i) "1947" and substituting
"1991";
(b) by omitting from sub-subparagraph (2) (d) (i) (A) "Part XII of the
Social Security Act 1947" and substituting "Part 2.19 of the Social Security
Act 1991";
(c) by omitting from sub-subparagraph (2) (d) (i) (B) "Division 3 of Part IV
of the Social Security Act 1947" and substituting "Part 2.3 of the Social
Security Act 1991";
(d) by omitting from paragraph (2) (e) "orphan's" and substituting
"orphan";
(e) by omitting from paragraph (2) (e) "1947" and substituting "1991";
(f) by omitting from paragraph (2) (f) "subsection 95 (2) of the Social
Security Act 1947, a double orphan's" and substituting "section 1003 of the
Social Security Act 1991, a double orphan";
(g) by omitting from paragraph (3) (a) "orphan's" and substituting
"orphan";
(h) by omitting from paragraph (3) (a) "subsection 95 (2) of the Social
Security Act 1947" and substituting "section 1003 of the Social Security Act
1991".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 36
Disposal, loss, destruction or termination of use of property
36. Section 122K of the Principal Act is amended:
(a) by inserting in subsection (4) the following definition: "
`rehabilitation-related activities' has the same meaning as in Division
10AB;";
(b) by adding at the end the following subsections:
"(5) For the purposes of subsection (1), use of property by a taxpayer is
taken to be use for prescribed purposes if:
the use is on or after 1 July 1991; and
the use is for rehabilitation-related activities in relation to a site
on which the taxpayer conducted:
prescribed mining operations within the meaning of
Subdivision A; or
activities in respect of which a deduction is
allowable, or has been allowed, under section 122J; and
either of the following conditions is satisfied:
the property is plant or articles for the purposes of
section 54;
the property is housing and welfare within the
meaning of Subdivision A.
"(6) For the purposes of subsection (1), use of property by a taxpayer is
taken to be use for eligible purposes if:
the use is on or after 1 July 1991; and
the use is for rehabilitation-related activities in relation to a site
on which the taxpayer conducted activities in respect of which a deduction is
allowable, or has been allowed, under section 122JF; and
the property is plant or articles for the purposes of section 54.
"(7) A reference in subsection (5) or (6) to use of property by a taxpayer
for a particular purpose includes a reference to the holding in reserve of
property owned by the taxpayer which has been installed ready for use for that
purpose.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 37
37. After section 122K of the Principal Act the following section is
inserted:
Application of section 122K before 1 July 1991 - subsequent use of property
for rehabilitation
"122KA. (1) This section applies to property if:
either of the following conditions is satisfied:
the property is plant or articles for the purposes of
section 54;
the property is housing and welfare within the
meaning of Subdivision A; and
section 122K has applied in respect of the termination of use of the
property; and
the date of the termination (in this section called the `section 122K
termination date') was before 1 July 1991; and
no deduction is allowable, or has been allowed, in respect of the use
of the property that occurred in the period commencing on the section 122K
termination date and ending on 30 June 1991; and
the taxpayer commences to use the property for rehabilitation-related
activities on the day after the section 122K termination date; and
the taxpayer has not ceased to use the property for
rehabilitation-related activities before 1 July 1991.
"(2) For the purposes of this section, the estimated eligible rehabilitation
period is the period:
commencing on 1 July 1991; and
ending on the day on which, as at 1 July 1991, it is estimated that the
property will cease to be used by the taxpayer for rehabilitation-related
activities.
"(3) If, having regard to information in the Commissioner's possession, the
Commissioner is not satisfied that the estimate is a reasonable estimate, the
estimated eligible rehabilitation period is taken to end on such day as the
Commissioner considers reasonable.
"(4) For the purposes of this section, the estimated total rehabilitation
period is the period:
commencing on the day after the section 122K termination date; and
ending at the end of the estimated eligible rehabilitation period.
"(5) For the purposes of this section, the actual eligible rehabilitation
period is the period:
commencing on 1 July 1991; and
ending on the day on which the property is disposed of, lost or
destroyed, or the use of which by the taxpayer for rehabilitation-related
activities has been otherwise terminated.
"(6) For the purposes of this section, the actual total rehabilitation
period is the period:
commencing on the day after the section 122K termination date; and
ending at the end of the actual eligible rehabilitation period.
"(7) An amount calculated using the following formula is allowable as a
deduction to the taxpayer for each year of income any part of which occurs
during both the actual eligible rehabilitation period and the estimated
eligible rehabilitation period:
Eligible rehabilitation days
x in year
Days in estimated total
rehabilitation period
where:
`Capital amount' means the capital amount in relation to the property;
`Eligible rehabilitation days in year' means the number of days in so much of
the year of income as occurs during both of the actual eligible rehabilitation
period and the estimated eligible rehabilitation period;
`Days in estimated total rehabilitation period' means the number of days in
the estimated total rehabilitation period.
"(8) Subsections (9) and (10) apply in relation to a year of income if:
deductions are allowable, or have been allowed, under subsection (7) in
respect of the property; and
the actual eligible rehabilitation period ends in the year of income.
"(9) The amount (if any) calculated using the following formula is an
allowable deduction to the taxpayer for the year of income:
Actual eligible rehabilitation days Deductions
x Days in actual total - previously
allowed
where:
`Capital amount' means the capital amount in relation to the property;
`Actual eligible rehabilitation days' means the number of days in the actual
eligible rehabilitation period;
`Days in actual total rehabilitation period' means the number of days in the
actual total rehabilitation period;
`Deductions previously allowed' means the total deductions that are allowable,
or have been allowed, under subsection (7) in respect of the property.
"(10) The amount (if any) calculated using the following formula is included
in the assessable income of the taxpayer of the year of income:
Actual eligible rehabilitation days
x Days in actual total
rehabilitation period
where:
whichever of the following amounts is applicable in
relation to the property:
in the case of the disposal, loss or destruction of the property - the
consideration receivable in respect of the disposal, loss or destruction; or
in the case of other termination of the use of the property - the value
of the property at the end of the actual eligible rehabilitation period;
`Actual eligible rehabilitation days' means the number of days in the actual
eligible rehabilitation period;
`Days in actual total rehabilitation period' means the number of days in the
actual total rehabilitation period.
"(11) A reference in this section to use of property by a taxpayer for a
particular purpose includes a reference to the holding in reserve of property
owned by the taxpayer which has been installed ready for use for that
purpose.
"(12) In this section:
`actual eligible rehabilitation period' has the meaning given by subsection
(5);
`actual total rehabilitation period' has the meaning given by subsection (6);
`capital amount', in relation to property, means the lesser of:
the total expenditure of a capital nature of the taxpayer in respect of
the property; and
the value of the property as at the section 122K termination date;
`estimated eligible rehabilitation period' has the meaning given by subsection
(2);
`estimated total rehabilitation period' has the meaning given by subsection
(4);
`rehabilitation-related activities' has the same meaning as in Division 10AB;
`section 122K termination date' has the meaning given by subsection (1).".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 38
Disposal, loss, destruction or termination of use of property
38. Section 124AM of the Principal Act is amended by adding at the end the
following subsections:
"(8) For the purposes of subsection (1), use of property by a taxpayer is
taken to be use for purposes of carrying on prescribed petroleum operations or
of exploring or prospecting for petroleum if:
the use is on or after 1 July 1991; and
the use is for rehabilitation-related activities in relation to a site
on which the taxpayer conducted:
prescribed petroleum operations within the meaning of
subsection 124 (1); or
activities in respect of which a deduction is
allowable, or has been allowed, under section 124AH; and
either of the following conditions is satisfied:
the property is plant or articles for the purposes of
section 54;
expenditure on the property is covered by paragraph
124AA (2) (c), (d) or (e).
"(9) A reference in subsection (8) to use of property by a taxpayer for a
particular purpose includes a reference to the holding in reserve of property
owned by the taxpayer which has been installed ready for use for that
purpose.
"(10) In this section:
`rehabilitation-related activities' has the same meaning as in Division
10AB.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 39
39. After section 124AM of the Principal Act the following section is
inserted: Application of section 124AM before 1 July 1991 - subsequent use of
property for rehabilitation
"124AMA. (1) This section applies to property if:
either of the following conditions is satisfied:
the property is plant or articles for the purposes of
section 54;
expenditure on the property is covered by paragraph
124AA (2) (c), (d) or (e); and
section 124AM has applied in respect of the termination of use of the
property; and
the date of the termination (in this section called the `section 124AM
termination date') was before 1 July 1991; and
no deduction is allowable, or has been allowed, in respect of the use
of the property that occurred in the period commencing on the section 124AM
termination date and ending on 30 June 1991; and
the taxpayer commences to use the property for rehabilitation-related
activities on the day after the section 124AM termination date; and
the taxpayer has not ceased to use the property for
rehabilitation-related activities before 1 July 1991.
"(2) For the purposes of this section, the estimated eligible rehabilitation
period is the period:
commencing on 1 July 1991; and
ending on the day on which, as at 1 July 1991, it is estimated that the
property will cease to be used by the taxpayer for rehabilitation-related
activities.
"(3) If, having regard to information in the Commissioner's possession, the
Commissioner is not satisfied that the estimate is a reasonable estimate, the
estimated eligible rehabilitation period is taken to end on such day as the
Commissioner considers reasonable.
"(4) For the purposes of this section, the estimated total rehabilitation
period is the period:
commencing on the day after the section 124AM termination date; and
ending at the end of the estimated eligible rehabilitation period.
"(5) For the purposes of this section, the actual eligible rehabilitation
period is the period:
commencing on 1 July 1991; and
ending on the day on which the property is disposed of, lost or
destroyed, or the use of which by the taxpayer for rehabilitation-related
activities has been otherwise terminated.
"(6) For the purposes of this section, the actual total rehabilitation
period is the period:
commencing on the day after the section 124am termination date; and
ending at the end of the actual eligible rehabilitation period.
"(7) An amount calculated using the following formula is allowable as a
deduction to the taxpayer for each year of income any part of which occurs
during both the actual eligible rehabilitation period and the estimated
eligible rehabilitation period:
Eligible rehabilitation days
in year
Days in estimated total
rehabilitation period
where:
`Capital amount' means the capital amount in relation to the property;
`Eligible rehabilitation days in year' means the number of days in so much of
the year of income as occurs during both of the actual eligible rehabilitation
period and the estimated eligible rehabilitation period;
`Days in estimated total rehabilitation period' means the number of days in
the estimated total rehabilitation period.
"(8) Subsections (9) and (10) apply in relation to a year of income if:
deductions are allowable, or have been allowed, under subsection (7) in
respect of the property; and
the actual eligible rehabilitation period ends in the year of income.
"(9) The amount (if any) calculated using the following formula is an
allowable deduction to the taxpayer for the year of income:
Actual eligible rehabilitation days Deductions
x Days in actual total - previously
allowed
where:
`Capital amount' means the capital amount in relation to the property;
`Actual eligible rehabilitation days' means the number of days in the actual
eligible rehabilitation period;
`Days in actual total rehabilitation period' means the number of days in the
actual total rehabilitation period;
`Deductions previously allowed' means the total deductions that are allowable,
or have been allowed, under subsection (7) in respect of the property.
"(10) The amount (if any) calculated using the following formula is included
in the assessable income of the taxpayer of the year of income:
Actual eligible rehabilitation days
x Days in actual total
rehabilitation period
where:
whichever of the following amounts is applicable in
relation to the property:
in the case of the disposal, loss or destruction of the property - the
consideration receivable in respect of the disposal, loss or destruction; or
in the case of other termination of the use of the property - the value
of the property at the end of the actual eligible rehabilitation period;
`Actual eligible rehabilitation days' means the number of days in the actual
eligible rehabilitation period;
`Days in actual total rehabilitation period' means the number of days in the
actual total rehabilitation period.
"(11) A reference in this section to use of property by a taxpayer for a
particular purpose includes a reference to the holding in reserve of property
owned by the taxpayer which has been installed ready for use for that
purpose.
"(12) Where an amount is included in the assessable income of a taxpayer
under subsection (10), the amount is taken to be assessable income from
petroleum.
"(13) In this section:
`actual eligible rehabilitation period' has the meaning given by subsection
(5);
`actual total rehabilitation period' has the meaning given by subsection (6);
`capital amount', in relation to property, means the lesser of:
the total expenditure of a capital nature of the taxpayer in respect of
the property; and
the value of the property as at the section 124AM termination date;
`estimated eligible rehabilitation period' has the meaning given by subsection
(2);
`estimated total rehabilitation period' has the meaning given by subsection
(4);
`rehabilitation-related activities' has the same meaning as in Division 10AB;
`section 124AM termination date' has the meaning given by subsection (1).".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 40
40. After section 124AQ of the Principal Act the following Division is
inserted:
"Division 10AB - Rehabilitation and Restoration of Mining,
Quarrying and Petroleum Sites
Interpretation
"124B. In this Division:
`extractive activities' means:
eligible exploration or prospecting activities; or
eligible quarrying operations within the meaning of Subdivision B of
Division 10; or
prescribed mining operations within the meaning of Subdivision A of
Division 10; or
prescribed petroleum operations within the meaning of Division 10AA;
`eligible exploration or prospecting activities' means activities in respect
of which a deduction is allowable, or has been allowed, under section 122J,
122JF or 124AH; `housing and welfare' means:
residential accommodation; or
health, educational, recreational or other similar facilities; or
facilities for the provision of meals;
and includes works carried out directly in connection with such accommodation
or facilities (including works for the provision of water, light, power,
access or communications);
`land' includes:
a legal or equitable estate or interest in land; or
a right, power or privilege over, or in connection with, land;
`predecessor' means a predecessor, whether immediate or otherwise;
`rehabilitation-related activities' has the meaning given by section 124BB;
`restore' includes rehabilitate.
Deduction of expenditure on rehabilitation-related activities
"124BA. (1) Subject to this Division, expenditure (whether of a capital
nature or otherwise) incurred by a taxpayer on or after 1 July 1991, to the
extent to which the expenditure is in respect of rehabilitation-related
activities, is an allowable deduction for the year of income in which the
expenditure is incurred.
"(2) A provision of this Act (including a provision of section 51) that
expressly prevents or restricts the operation of section 51 applies in the
same way to this section.
Rehabilitation-related activity
"124BB. (1) A reference in this Division to a rehabilitation-related
activity in relation to a taxpayer is a reference to the restoration of a site
on which the taxpayer conducted extractive activities to, or to a reasonable
approximation of, the pre-mining condition of the site.
"(2) A reference in this section to the pre-mining condition of a site is a
reference to the condition the site was in before extractive activities were
first commenced on the site, whether by the taxpayer or by a predecessor of
the taxpayer.
No deduction for certain expenditure
"124BC. (1) A deduction is not allowable under section 124BA for expenditure
in respect of:
property, being plant or articles for the purposes of section 54; or
acquiring land; or
constructing buildings or other structures; or
a bond or security, however described, for the performance of
rehabilitation-related activities.
"(2) A deduction is not allowable under section 124BA for expenditure of a
capital nature in respect of housing and welfare.
No deduction where expenditure is recouped
"124BD. (1) Section 124ba does not apply, and is to be taken never to have
applied, to expenditure where both of the following conditions are satisfied:
the taxpayer is recouped, or becomes entitled to be recouped, in
respect of the expenditure;
the amount of the recoupment is not, and will not be, included in the
assessable income of the taxpayer of any year of income.
"(2) Where a taxpayer receives, or becomes entitled to receive, an amount
that constitutes to an unspecified extent a recoupment of expenditure, the
Commissioner may, for the purposes of subsection (1), determine the extent to
which that amount constitutes a recoupment of that expenditure.
"(3) Section 170 does not prevent the amendment of an assessment at any time
for the purpose of giving effect to this section.
Transactions between persons not at arm's length
"124BE. If:
a person has incurred expenditure in connection with a transaction
where the parties to the transaction are not dealing with each other at arm's
length in relation to the transaction; and
deductions are or have been allowable under this Division in respect of
the expenditure; and
the amount of the expenditure is greater or less than is reasonable;
the amount of the expenditure is taken, for all purposes of the application of
this Act in relation to the parties to the transaction, to be the amount that
would have been reasonable if the parties were dealing with each other at
arm's length.
Property used for rehabilitation-related activities taken to be used for the
purpose of producing assessable income
"124BF. (1) For the purposes of this Act, where property is used by a
taxpayer on or after 1 July 1991 for rehabilitation-related activities, that
use of the property by the taxpayer is taken to be for the purpose of
producing assessable income of the taxpayer.
"(2) Subsection (1) has effect subject to a provision of this Act that
expressly provides that a particular use of property is not taken to be for
the purpose of producing assessable income.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 41
a body corporate (in this section called the
`interposed entity') is the investor in relation to an investment (in this
section called the `secondary investment') with an investment body (in this
section called the `secondary investment body');
another person (in this section called the `primary
investor') is entitled to receive from the interposed entity all or part of
the income from the secondary investment (which right to receive the income or
part of the income is in this section called `primary investment');
both of the following conditions are satisfied:
a person (in this section also called the `primary
investor') is the investor in relation to an investment (in this section also
called the `primary investment') covered by item 4 in the table in subsection
202D (1), being a deposit of money with a solicitor (in this section also
called the `interposed entity');
as a result of carrying out the purpose for which that
investment was made, the interposed entity is the investor in relation to
another investment (in this section also called the `secondary investment')
with an investment body (in this section also called the `secondary investment
body'); and
the conditions set out in the regulations are satisfied;
the following provisions have effect for the purposes of this Part and of
Division 3B of Part VI:
the primary investor may quote his or her tax file number under section
202DB to the secondary investment body in connection with the secondary
investment as if he or she were the investor in relation to the secondary
investment;
if the primary investor quotes his or her tax file number as mentioned
in paragraph (c) - the interposed entity is taken to have quoted his or her
tax file number to the secondary investment body in connection with the
secondary investment;
the interposed entity is not entitled to actually quote his or her tax
file number to the secondary investment body in connection with the secondary
investment;
the interposed entity is taken not to be an investment body in relation
to the primary investment.
"(2) If there are 2 or more primary investors in relation to a primary
investment, all the primary investors are taken to have quoted their tax file
numbers as mentioned in paragraph (1) (c) if, and only if:
all of those primary investors are persons who, for the purposes of
this Part, are taken, by section 202EE or 202EF, or both, to have quoted their
tax file numbers under this Division in connection with the primary
investment; or
if:
paragraph (a) does not apply; and
all of those primary investors are covered by any or
all of the following categories:
persons who, for the purpose of this Part, are taken,
under section 202EE or 202EF, or both, to have quoted their tax file numbers
under this Division in connection with the primary investment;
persons to whom section 202EB applies;
entities mentioned in paragraph 202EC (1) (a); and
all of the following conditions are satisfied in
relation to at least one of those primary investors:
the primary investor is covered by sub-subparagraph
(ii) (B) or (C);
the primary investor gives to the secondary investment
body the information mentioned in subsection 202EB (1) or 202EC (1) as if the
primary investor were the investor in relation to the secondary investment;
as a result of the giving of that information, the
primary investor would be taken, under section 202EB or 202EC, to have quoted
his or her tax file number under this Division in connection with the
secondary investment; or
at least one of those primary investors:
has a tax file number; and
(ii) has quoted that number under section 202DB to the
secondary investment body in connection with the secondary investment as if he
or she were the investor in relation to the secondary investment.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 61
Investments held jointly
61. Section 202DG of the Principal Act is amended by adding at the end the
following subsection:
"(4) This section does not apply in relation to investments covered by
section 202DDB.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 62
Persons receiving certain pensions etc. - employment
62. Section 202EA of the Principal Act is amended by omitting subsection (5)
and substituting the following subsection:
"(5) This section applies in relation to the following:
an age pension under Part 2.2 of the Social Security Act 1991;
an invalid pension under Part 2.3 of that Act;
a wife pension under Part 2.4 of that Act;
a carer pension under Part 2.5 of that Act;
a sole parent pension under Part 2.6 of that Act;
a widow B pension under Part 2.8 of that Act;
a special benefit under Part 2.15 of that Act;
a special needs pension under Part 2.16 of that Act;
a pension under Part III of the Veterans' Entitlements Act 1986.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 63
Persons receiving certain pensions etc. - investments
63. Section 202EB of the Principal Act is amended by omitting paragraphs (5)
(a) and (b) and substituting the following paragraphs:
one of the following:
an age pension under Part 2.2 of the Social Security
Act 1991;
an invalid pension under Part 2.3 of that Act;
a wife pension under Part 2.4 of that Act;
a carer pension under Part 2.5 of that Act;
a sole parent pension under Part 2.6 of that Act;
a widow B pension under Part 2.8 of that Act;
a special benefit under Part 2.15 of that Act;
(viii) a special needs pension under Part 2.16 of that
Act; or
a rehabilitation allowance under Part 2.10 of the Social Security Act
1991 where the person is qualified to receive a pension or benefit mentioned
in paragraph (a); or".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 64
Non-residents
64. Section 202EE of the Principal Act is amended:
by omitting subsection (1) and substituting the following subsection:
"(1) For the purposes of this Part, where:
a non-resident is an investor in relation to an investment to which
this Part applies; and
at a particular time, the investment body pays an amount to the
non-resident by way of income derived from the investment;
the non-resident is taken to have quoted the non-resident's tax file number in
connection with the investment at that time if:
the investment body is required to make a deduction under subsection
221YL from the payment; or
the investment body would have been required to make such a deduction
but for the operation of paragraph 128B (3) (a), (b) or (ga) or subparagraph
128B (3) (h) (iii) or (iv).";
by omitting paragraph (2) (a) and substituting the following
paragraph:
a person who was a non-resident and an investor in relation to an
investment to which this Part applies becomes a resident of Australia at a
particular time; and".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 65
When income tax becomes due and payable
is amended by omitting paragraphs
(a) and (b) and substituting the following paragraphs:
if the entity is required to make a payment under section 221AZD in
respect of that year of income:
if the entity furnishes the return on or before the
day by which the entity is required to make the payment - on that day; or
if the entity furnishes the return after the day
by which the entity is required to make the payment - on the day on which the
return is furnished; or
if the entity is not required to make a payment under section 221AZD in
respect of that year of income otherwise than because no amount of income tax
is payable - on the day that would have been applicable under paragraph (a) if
the entity had been required to make such a payment under section 221AZD.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 66
Interpretation
66. Section 221A of the Principal Act is amended:
(a) by adding "or" at the end of paragraph (b) of the definition of
"prescribed non-resident" in subsection (1);
(b) by omitting paragraphs (c) and (d) of the definition of "prescribed
non-resident" in subsection (1) and substituting the following paragraph:
a provision of the Social Security Act 1991 other than Part 2.11, 2.12
or 2.14 of that Act;";
(c) by omitting "excepted payments for the purposes of section 23AD" from
the definition of "salary or wages" in subsection (1) and substituting
"covered by Division 1AA of Part III";
(d) by omitting paragraph (ha) of the definition of "salary or wages" in
subsection (1).
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 67
Certain employees to be subject to provisional tax
67. Section 221YAB of the Principal Act is amended by omitting from the
definition of "Qualifying rebates" in paragraph (b) "and 159TL" and
substituting ", 159TL and 160ACE".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 68
Uplifted provisional tax amount
68. Section 221YCAA of the Principal Act is amended by inserting in
paragraph (2) (m) "160ACE," after "159L,".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 69
Provisional tax on estimated income
69. Section 221YDA of the Principal Act is amended:
(a) by inserting in paragraph (1) (da) "160ACE," after "160AAA,";
(b) by inserting in subparagraph (2) (a) (ii) "160ACE," after "160AAA,".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 70
Interpretation
70. Section 221YHZA of the Principal Act is amended by omitting subsection
(2B).
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 71
Duty of payer to pay deducted amount to Commissioner
71. Section 221YHZA of the Principal Act is amended by inserting after
subsection (1A) the following subsection:
"(1AA) The Commissioner may, by notice in writing served on an investment
body, vary, in relation to the investment body, in such instances and to such
extent as the Commissioner thinks fit, any of the requirements of subsection
(1A).".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 72
Credits in respect of deducted amounts
72. Section 221YHZK of the Principal Act is amended by adding at the end the
following subsection:
"(5) If, apart from this subsection:
the Commissioner is satisfied that an amount or amounts (in this
subsection called the `deducted amount') were deducted, or were purportedly
deducted, under subsection 221YHZC (1A), from a dividend paid to a shareholder
in a company (in this subsection called the `registered shareholder'); and
section 160AQUA applies to the payment of the dividend;
this section has effect as if:
the company had made a payment (in this subsection called the `notional
payment') to the transferee or the lender mentioned in section 160AQUA, as the
case requires, of the amount that, by virtue of 160AQUA, is taken to be a
dividend paid to the transferee or lender for the purposes of section 44; and
the deducted amounts had been deducted, or purportedly deducted, from
the notional payment instead of from the dividend that was paid to the
registered shareholder.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 73
Interpretation
73. Section 251R of the Principal Act is amended by omitting from subsection
(5) "Part X of the Social Security Act 1947" and substituting "Part 2.17 of
the Social Security Act 1991".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 74
Medicare levy
74. Section 251S of the Principal Act is amended by adding at the end the
following subsection:
"(4) In determining for the purposes of paragraph (1) (a) or (b) whether, in
relation to the 1991-92 year of income or any subsequent year of income, a
person was a resident of Australia otherwise than by virtue of subsection 7A
(2), that subsection is to be applied as if the reference in that subsection
to the Territory of Cocos (Keeling) Islands were omitted.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 75
Prescribed persons
75. Section 251U of the Principal Act is amended by inserting after
subsection (1A) the following subsection:
"(1B) In determining for the purposes of paragraph (1) (d) whether, in
or any subsequent year of income, a
person was a resident solely by virtue of subsection 7A (2), that subsection
is to be applied as if the reference in that subsection to the Territory of
Cocos (Keeling) Islands were omitted.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 76
76. After section 399 of the Principal Act the following section is
inserted:
Modified application of bad debt provisions
"399A. (1) For the purposes of applying this Act in calculating the
attributable income of the eligible CFC for the eligible period:
the amendment made to section 63 by section 13 of the Taxation Laws
Amendment Act 1991 is to be taken to have applied to debts created or acquired
at any time; and
section 63D of this Act is to be disregarded; and
subsection (2) of this section has effect.
"(2) Where:
apart from this subsection, an amount would be a notional allowable
deduction to the eligible CFC under section 51 or 63 in respect of the writing
off of a debt as bad; and
the debt was created or acquired in the ordinary course of a
money-lending business of the eligible CFC that carries on that business; and
assuming that income:
that has been derived by the eligible CFC in respect
of the debt; or
that would have been reasonably likely to have been
derived by the eligible CFC in respect of the debt if it had not become bad;
were instead derived by the eligible CFC during periods to which it may
reasonably be attributed, there would be a part or parts (which part or the
total of which parts is in this subsection called the `notional exempt income
period') of the period (in this subsection called the `eligible debt holding
period') beginning when the debt was so created or acquired, and ending when
it was written off, in respect of which some or all of that income would not
be included in the notional assessable income of the eligible CFC for any
statutory accounting period;
then only a proportion of the amount referred to in paragraph (a) is a
notional allowable deduction, being the proportion calculated using the
following formula:
Eligible debt holding period - Notional exempt income period
Eligible debt term
where:
`Eligible debt holding period' means the number of days in the eligible debt
holding period;
`Notional exempt income period' means the number of days in the notional
exempt income period;
`Eligible debt term' means:
where the debt was acquired from a person other than an associate,
within the meaning of Part IIIA - the number of days in the eligible debt
holding period; or
in any other case - the number of days in the period beginning on the
day on which the debt was created (whether by the eligible CFC or another
person) and ending at the end of the day on which it was written off.
"(3) For the purposes of subsection (2):
where a debt that is written off was acquired from another person, the
creation and any previous acquisition of the debt is to be disregarded, other
than for the purposes of paragraph (2) (e); and
if, on the assumption in paragraph (2) (c), income would be derived by
the eligible CFC during a period before the first statutory accounting period
of the eligible CFC beginning on or after 1 July 1990, then, in spite of
anything in that paragraph, that income is taken not to be included in the
notional assessable income of the eligible CFC for any statutory accounting
period; and
it is to be assumed that, for any statutory accounting period for which
there is no requirement to calculate the attributable income of the eligible
CFC in relation to the eligible taxpayer, there is such a requirement.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 77
Reduction of section 456 assessability where item subject to foreign accruals
tax
77. Section 456A of the Principal Act is amended by omitting from
subparagraph (1) (c) (i) "or above".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 78
Assessability in respect of certain dividends paid by a CFC
78. Section 458 of the Principal Act is amended:
(a) by inserting after subsection (2) the following subsection:
"(2A) Where:
a dividend is not taxed in a listed country at the country's normal
company tax rate because the whole or part of the dividend represents another
amount in respect of which foreign tax is payable under an accruals tax law of
the listed country; and
that other amount is, under the accruals tax law, taxed in the listed
country at the country's normal company tax rate;
the following provisions have effect:
if:
the whole of the dividend represents the other amount;
or
part of the dividend represents the other amount and,
on the assumption that section 325 applied to the remainder of the dividend as
if it were an entire dividend, the remainder of the dividend would be taxed in
the listed country at the country's normal company tax rate;
then subsection (1) does not apply in relation to the dividend;
in any other case - the only application that subsection (1) has in
relation to the dividend is in respect of the remainder of the dividend as if
it were an entire dividend.";
(b) by inserting after subsection (6) the following subsection:
"(6A) Where:
either:
the dividend referred to in subsection (3) (in this
subsection called a `dividend amount'); or
any amount (in this subsection also called a
`dividend amount') that would, as a result of the payment of the dividend
referred to in subsection (4) or (5), be included in the tax base of the CFC
or CFT, or of any partnership or trust, referred to in paragraph (4) (b) or
(5) (b), in respect of the holding of any interest or present entitlement
referred to in that paragraph;
is not taxed in a listed country at the country's normal company tax rate
because the whole or part of the dividend amount represents another amount (in
this subsection called the `accruals-taxed amount') in respect of which
foreign tax is payable under an accruals tax law of the listed country; and
the accruals-taxed amount is, under the accruals tax law, taxed in the
listed country at the country's normal company tax rate;
the following provisions have effect:
if:
the whole of the dividend amount represents the
accruals-taxed amount; or
part of the dividend amount represents the accruals-taxed
amount and, on the assumption that section 325 applied to the remainder of the
dividend amount as if it were an entire dividend amount, the remainder of the
dividend amount would be taxed in the listed country at the country's normal
company tax rate;
then subsection (3), (4) or (5), as the case may be, does not apply in
relation to the dividend referred to in that subsection;
in any other case - the only application that subsection (3), (4) or
(5), as the case may be, has in relation to the dividend referred to in that
subsection is in respect of a proportion of the dividend (as if it were an
entire dividend) calculated using the formula:
Remainder
x Dividend
Dividend amount
where:
`Remainder' means the remainder of the dividend amount;
`Dividend amount' means the dividend amount;
`Dividend' means the amount of the dividend.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 79
79. After section 462 of the Principal Act the following section is
inserted:
Keeping of records - section 457
"462A. Subject to this Division, where:
subsection 457 (1) applies to a change of residence of a CFC; and
at the residence-change time referred to in that subsection, a person
is an attributable taxpayer in relation to the CFC;
the person must keep records (in Australia or elsewhere) containing
particulars of:
the acts, transactions and other circumstances that resulted in the
person being an attributable taxpayer in relation to the CFC at that time;
and
the basis of the calculation of:
the direct attribution interest; and
the aggregate of the indirect attribution interests;
in the CFC held by the person at that time; and
the basis of the calculation of the attribution percentage of the
person in relation to the CFC at that time; and
the basis of the calculation of the amount (including a nil amount)
included in the assessable income of the person under section 457 in relation
to the change of residence concerned.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 80
80. After section 464 of the Principal Act the following section is
inserted:
Keeping of records - section 459A
"464A. Subject to this Division, where:
subsection 459A (1) applies in relation to an amount (in this section
called the `trigger amount') included in the assessable income of an
Australian partnership or of an Australian trust as mentioned in paragraph
459A (1) (a); and
at the time referred to in whichever subparagraph of paragraph 459A (1)
(c) is applicable, a person is an attributable taxpayer in relation to the
CFC or the CFT mentioned in that paragraph;
the person must keep records (in Australia or elsewhere) containing
particulars of:
the acts, transactions and other circumstances that resulted in the
person being an attributable taxpayer in relation to the CFC or the CFT at
that time; and
the basis of the calculation of:
the direct attribution interest; and
the aggregate of the indirect attribution interests;
in the CFC or the CFT held by the person at that time; and
the basis of the calculation of the attribution percentage of the
person in relation to the CFC or the CFT at that time; and
the basis of the calculation of the amount (including a nil amount)
that, apart from subsection 459A (2), would be included in the assessable
income of the person under subsection 459A (1) in relation to the trigger
amount.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 81
Offence of failing to keep records
81. (1) Section 465 of the Principal Act is amended by inserting "462A,"
after "462,".
(2) Section 465 of the Principal Act is amended by omitting "or 464" and
substituting ", 464 or 464A".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 82
Circumstances where records not required to be kept - reasonable excuse etc.
82. (1) Section 467 of the Principal Act is amended by inserting in
paragraphs (a) and (b) "or 462A" after "462".
(2) Section 467 of the Principal Act is amended:
(a) by omitting from paragraphs (a) and (b) "or subsection" and substituting
", subsection";
(b) by inserting in paragraphs (a) and (b) "or section 464A" after "(2) or
(3)".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 83
Application of amendments
83. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) The amendments made by sections 16, 17, 20, 32, 35, 46, 47, 48, 49, 57,
58, 62, 63, 66 and 73 apply in relation to payments made on or after 1 July
1991.
(3) The amendments made by sections 18, 19 and 51 apply in relation to
income derived on or after 1 July 1990.
(4) The amendments made by section 25 apply in relation to agreements of the
kind known as securities lending arrangements that are entered into on or
after the date of commencement of this subsection.
(5) The amendments made by section 28 apply in relation to dividends paid
after 18 April 1991.
(6) The amendment made by section 30 applies to expenditure incurred after
21 August 1990.
(7) Subparagraph 78 (1) (a) (xxiv) 0f the amended Act applies to gifts made
on or after 13 July 1989.
(8) The amendments made by paragraghs made by paragraphs 33 (b), (e) and (f)
apply to assessments in respect of income of the 1985-86 year of income and og
all subsequent years of income.
(9) Even though an amendment of the Income Tax Assessment Act 1936 has been
made under paragraph 33 (c) or (d), if a particular assessment would be
affected by the amendment, the amendment is to be regarded in making the
assessment.
(10) The amendments made by sections 41-42 and 44 apply to assessments in
respect of income of the 1987-88 year of income and of all subsequent years of
income.
(11) Section 159 GZLB of the amended Act applies to assessments in respect
of income of the 1991-92 year of income and of all subsequent years of
income.
(12) The amendment made by subsection made by subsection 52 (1) applies to a
dividend paid by a company during the 1991-92 year of income of the company or
during a sebsequent year of income.
(13) The amendments made by section 53 apply to dividends where the dividend
closing time is on or after:
(a) if the date of commencement of this subsection is before 1 August 1991-1
August 1991; or
(b) if the date of commencement of this subsection is on or after 1 August
1991-the first day of the month next following the month in which the date of
commencement of this subsection occurs.
(14) The amendments made by sections 56 and 65 apply in relation to the year
of income ending on 30 June 1990 or a subsequent year of income.
(15) Subsections 202D (6) and (7), section 202DDB and subsection 202DG (4)
of the amended Act apply to the quotation of tax file numbers on or after 1
July 1990.
(16) The amendment made by section 76 applies in relation to the calculation
of attributable income of any eligible period beginning on or after 1 July
1990.
(17) Section 458 of the amended Act has the same application as section 458
of the Principal Act was given when it was inserted by the Taxation Laws
Amendment (Foreign Income) Act 1990.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 84
Amendment of assessments
Section 74 of the Fringe Benefits Tax Assessment Act 1986 does not
prevent the amendment of an assessment made before the commencement of this
section for the purpose of giving effect to the amendments of sections 23AF
and 23AG of the Principal Act made by this Act.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 85
Principal Act
In this Part, "Principal Act" means the Income Tax Rates Act 1986.*3*
*3* No. 107, 1986, as amended. For previous amendments, see Nos. 60 and 138,
1987; and Nos. 11, 78 and 118, 1988; Nos. 98 and 106, 1989; No. 87, 1990; and
No. 48, 1991.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 86
Interpretation
Section 3 of the Principal Act is amended by omitting "1947" from
paragraph (c) of the definition of "prescribed non-resident" in subsection (1)
and substituting "1991".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 87
Interpretation
87. Section 16 of the Pricipal Act is amended by omitting paragraph (c) of
the definition of "elegible pensioner" in subsection (1) and substituting the
following paragraph:
"(c) a provision of the Social Security Act 1991 other than Part 2.11, 2.12
or 2.14 of that Act;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 88
Application of amendments
The amendments made by this Part apply in relation to payments made on
or after 1 July 1991.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 89
Principal Act
In this Part, "Principal Act" means the Medicare Levy Act 1986.*4*
*4* No. 110, 1986, as amended. For previous amendments, see No. 110, 1987; No.
93, 1988; No. 137, 1989; and Nos. 86 and 135, 1990.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 90
Amount of levy-person who has spouse or dependants
Section 8 of the Principal Act is amended by omitting from subsection
(6) "Part of the Social Security Act 1947" and substituting "Part 2.17 of the
Social Security Act 1991".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 91
Application of amendments
The amendments made by this Part apply in relation to payments made on
or after 1 July 1991.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 92
Principal Act
In this Part, "Principal Act" means the Taxation Administration Act
1953.*5*
*5* No. 1, 1953, as amended. For previous amendments, see Nos. 28, 39, 40 and
52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75,
1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133,
1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123,
1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and
168, 1985; Nos. 41, 46, 48, 112, 144 and 154, 1986; No. 49, 1986 (as amended
by No. 141, 1987); Nos. 120 and 145, 1987; No. 62, 1987 (as amended by No.
108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as
amended by No. 11, 1988); Nos. 95 and 97, 1988; Nos. 97, 105, 107, 124, 163
and 167, 1989; Nos. 20, 60, 61, 110, 119 and 136, 1990; and Nos. 5, 6 and 48,
1991.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991
- SECT 93
Interpretation
93. Section 2 of the Principal Act is amended:
(a) by following after paragraph (d) of the definition of "head" the
following paragraphs:
in the case of the Australian Bureau of Criminal
Intelligence-the Director of the Bureau;
in the case of the Independent Commission Against
Corruption-the Commissioner of the Commission;
in the case of the New South Wales Crimes
Commission-the Chairperson og the Commission;";
by inserting after paragraph (d) of the definition of "law enforcement
agency" the following paragraphs:
the Austral;ian Bureau of Criminal Intelligence
established by an agreement made on 6 February 1981 between the Commonwealth,
the 6 States and the Nothern Territory;
the Independent Commission Against Corruption
established by the Independent Commission Against Corruption Act 1988 of New
South Wales;
(dac) the New South Wales Crimes Commission;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991 - SCHEDULE 1
Section 10
AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
CONSEQUENTIAL ON THE REPEAL OF SECTIONS 65B AND 65C OF THAT ACT
1. The following provisions of the Principal Act are amended by omitting
"sections 62, 65B and 65C" (wherever occurring) and substituting "section
62":
Sections 61A, 61C, 61D, 63 and 65A.
2. The following provisions of the Principal Act are
amended by omitting "and sections 65B and 65C":
Sections 61B, 61E and 61F.
TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991 - SCHEDULE 2
Section 11
CONSEQUENTIAL AMENDMENTS OF THE FRINGE BENEFITS TAX
ASSESSMENT ACT 1986 RELATING TO THE COCOS (KEELING) ISLANDS
1. The following provisions of the Principal Act are amended by omitting
"section 62" (wherever occurring) and substituting "sections 62 and 65CAA":
Sections 61A, 61C, 61D, 63 and 65A.
2. The following provisions of the Principal Act are
amended by omitting "but for this section" and substituting
"but for this section and section 65CAA":
Sections 61B, 61E and 61F.
The
Act No. 100, 1991 amended as indicated in the Tables below.
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
100, 1991 | 27 June 1991 | |||
75, 2010 | 28 June 2010 | Schedule 6 (items 43, 44): 29 June 2010 | — |
am. = amended rep. = repealed rs. = repealed and substituted | |
Provision affected | How affected |
S. 84........................................ | am. No. 75, 2010 |
0
0
0