Taxation Laws Amendment Act (No. 2) 1994 (Cth)
This compilation was prepared on 28 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
Object
Interpretation
Application
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Object
Interpretation
Repeal of section and substitution of new sections:
Tax treatment of holder of qualifying security
Accrual period
Accrual amount
Implicit interest rate for fixed return security
Implicit interest rate for variable return security
Consequences of actual payments
Balancing adjustments on transfer of qualifying security
Tax treatment of issuer of a qualifying security
Effect of Division in relation to non-residents
Effect of Division where certain payments not assessable
Effect of Division where qualifying security is trading stock
Bad debts
Infrastructure borrowings to be non-assessable and non-deductible
Interpretation
Credits in respect of amounts assessed under Division 16E of Part III
Application
Object
Interpretation
Application
Object
Insertion of new Division:
Object
Simplified outline
List of definitions
Requirements for Division to apply
Share value shift under an arrangement
Controller of a company etc.
"Material decrease", "material increase" and "total market
value increase"
Consequences of value shift to pre-CGT share
Consequences of value shift to post-CGT share
Keeping records
Application
Object
What constitutes a disposal or acquisition
Disposals by bare trustees and persons enforcing securities
Application
Transitional
Object
Securities lending arrangements
Application
Application
Transfer of asset between related companies
Interpretation
When companies under common ownership
Disposal of shares or interest in trust
Keeping of records
Application
Object
Companies ceasing to be related after section 160ZZO application
Application
Object
Part applies in respect of disposals of assets
Application
Object
Time of disposal and acquisition
Amendment of assessments
Application
Object
Insertion of new section:
Reduction of capital gains and capital losses for certain
taxable Australian assets
Application
Object
Transfer of net capital loss within company group
Application
Object
Transfers of assets between companies under common ownership
Application
Object
Insertion of new section:
159GZZZMA. Meaning of "rebatable dividend adjustment" for purposes of
share buy-back provisions
Part of off-market purchase price is a dividend
Consideration in respect of off-market purchase
Reductions of capital gains where amount otherwise assessable
Reduction of amounts for the purposes of reduced cost base
Return of capital on shares
Insertion of new section:
Meaning of "rebatable dividend adjustment" for purposes of
sections 160ZA and 160ZL
Application
Object
Insertion of new section:
Exemption for interest in foreign holding company of foreign
life insurance company
Insertion of new section:
Exemption for interest in foreign holding company of foreign
general insurance company
Insertion of new section:
Exemption for interest in foreign holding company of foreign
real property company
Insertion of new section:
Exemption for interest in foreign holding company of foreign
mixed activity company
Object
Interpretation
Schedule 4
Object
Lessor may transfer benefit of deduction to lessees
Repeal of section
Application
Object
Property to which Subdivision applies
Disposal etc. of property within 12 months after installation etc.
Disposal etc. of property after 12 months after installation etc.
Special provisions relating to partnerships
Disposals within company group
Interpretation
Object
Deduction under Subdivision to be in addition to certain other
deductions
Object
Uplifted provisional tax amount
Provisional tax on estimated income
Application
Object
Insertion of new section:
Exemption of income attributable to constitutionally
protected funds
Insertion of new section:
Exemption of income attributable to constitutionally
protected funds
100. Interpretation
101. Part has effect subject to the Constitution
102. Insertion of new section:
Constitutionally protected funds exempt from tax
103. Insertion of new section:
Exemption of income attributable to constitutionally
protected funds
104. Application
105. Transitional
106. Object
107. Depreciation
108. Annual depreciation percentage
109. Application
110. Object
111. Meaning of "OB activity"
112. Interpretation provisions relating to offshore banking units
113. Division not to apply to interest payments on offshore borrowings by
offshore banking units
114. Application
115. Object
116. Deduction for gifts, pensions etc.
117. Object
118. Officers to observe secrecy
119. Application
120. Object
121. Income of persons connected with certain projects of United States
Government
PART 4 - AMENDMENTS RELATING TO NON-COMPULSORY UNIFORMS/WARDROBES
123. Object
124. Principal Act
125. Repeal of section and substitution of new section:
Transitional - "no deduction" rule does not apply if expense
incurred before 1 July 1995 and clothing designs approved by
Commissioner
126. Principal Act
127. No deduction to employee for expenditure incurred in connection with a
non-compulsory uniform/wardrobe
PART 5 - AMENDMENTS RELATING TO ENTERTAINMENT EXPENSE PAYMENTS
128. Object
129. Principal Act
130. Insertion of new section:
Reduction of taxable value in respect of entertainment
component of certain fringe benefits
131. Application
132. Principal Act
133. Deductions not allowable for entertainment expenses
134. Application
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 2) 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 2
Commencement [
2.(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Divisions 1 and 13 of Part 3 are taken to have commenced on 22 October
1986.
(3) Subdivision D of Division 4 of Part 3 is taken to have commenced
immediately after the commencement of Division 15 of Part 3 of the Taxation
Laws Amendment Act 1993.
(4) Subdivisions A and B of Division 5 of Part 3 are taken to have commenced
immediately after the commencement of the Income Tax Assessment Amendment
(Foreign Investment) Act 1992.
(5) Subdivisions B and C of Division 6 of Part 3 are taken to have commenced
immediately after the commencement of Division 11 of Part 2 of the Taxation
Laws Amendment Act (No. 3) 1992.
(6) Section 113 is taken to have commenced immediately after the
commencement of the Taxation Laws Amendment Act (No. 4) 1992.
(7) Part 4 is taken to have commenced immediately after the commencement of
Division 2 of Part 2 of the Taxation Laws Amendment Act (No. 6) 1992.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment
Act 1986*1*.
Fringe Benefits Tax Assessment Act 1986
*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.
37, 58, 60 and 135, 1990; Nos. 48, 100 and 216, 1991; Nos. 35, 92, 101, 118,
191, 210, 223 and 237, 1992; Nos. 17 and 18, 1993; and No. 56, 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 4
Object
4. The object of this Division is to change the basis of determining the
benchmark interest rate, and therefore the statutory interest rate (which is
used in determining the taxable value of loan fringe benefits).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 5
Interpretation
5. Section 136 of the Principal Act is amended:
(a) by omitting paragraph (a) of the definition of "benchmark interest rate"
in subsection (1) and substituting the following paragraph:
"(a) in relation to a year of tax, means the rate of interest, known as the
large bank housing lenders variable interest rate on loans for housing for
owner occupation, last published by the Reserve Bank of Australia before the
commencement of the year of tax; and";
(b) by omitting paragraph (a) of the definition of "statutory interest rate"
in subsection (1) and substituting the following paragraph:
"(a) in relation to a year of tax, means the benchmark interest rate in
relation to the year of tax; or".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 6
Application
6. The amendments made by this Division apply to assessments of the fringe
benefits taxable amount of an employer of the year of tax beginning on 1 April
1994 and of all later years of tax.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 7
Principal Act
7. In this Part, "Principal Act" means the Income Tax Assessment Act
1936*2*.
Income Tax Assessment Act 1936
*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; Nos. 4, 5, 6,
48, 55, 100, 203, 208 and 216, 1991; Nos. 3, 35, 69, 70, 80, 81, 92, 98, 101,
118, 138, 167, 190, 191, 208, 223, 224, 227, 237 and 238, 1992; Nos. 7, 17,
18, 27 and 32, 1993; and No. 56, 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 8
Object
8. The object of this Division is to bring the tax treatment of variable
return securities into line with that of fixed return securities.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 9
Interpretation
9. Section 159GP of the Principal Act is amended:
(a) by omitting from subsection (1) the definitions of "adjusted term",
"eligible notional accrual period", "non-varying element", "notional accrual
amount", "notional accrual period", "taxpayer's yield to redemption" and
"varying element";
(b) by inserting in subsection (1) the following definitions:
"'accrual amount' has the meaning given by subsection 159GQB(1);
'accrual period' has the meaning given by section 159GQA;
'eligible return' has the meaning given by subsection (3);
'implicit interest rate' has the meaning given by subsection 159GQB(2);
'taxpayer's maximum term', in relation to a security held by a taxpayer,
means:
(a) if the security was issued to the taxpayer-the term of the security; or
(b) if the security was transferred to the taxpayer-the part of the term
remaining after the transfer;";
(c) by omitting subsections (4) and (5).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 10
Repeal of section and substitution of new sections
10. Section 159GQ of the Principal Act is repealed and the following
sections are substituted:
Tax treatment of holder of qualifying security
Accrual amounts to be worked out
"159GQ.(1) If a taxpayer holds a qualifying security for all or part of a
year of income, the effect on the taxpayer's taxable income is determined by
working out the accrual amount (see section 159GQB) for each accrual period
(see section 159GQA) in the year of income and then summing the accrual
amounts.
Positive sum assessable
"(2) If the sum is a positive amount, the amount is included in the
assessable income of the taxpayer of the year of income.
Negative sum deductible
"(3) If the sum is a negative amount, a deduction of the amount is allowable
in the assessment of the taxpayer of the year of income.
Accrual period
Taxpayer's maximum term to be divided into accrual periods
"159GQA.(1) The taxpayer's maximum term for the qualifying security is
divided into accrual periods in accordance with this section.
Whole year of income
"(2) If a year of income is wholly taken up by any of the taxpayer's maximum
term, the year of income is divided into 2 accrual periods of 6 months.
Beginning of taxpayer's maximum term
"(3) If the taxpayer's maximum term begins after the beginning of the year
of income:
(a) if it begins less than 6 months after the beginning of the year of
income-the period from the beginning of the taxpayer's maximum term until the
middle of the year of income is an accrual period and the second 6 months of
the year of income is an accrual period; and
(b) in any other case-the part of the year of income taken up by the
taxpayer's maximum term is an accrual period.
End of taxpayer's maximum term
"(4) If the taxpayer's maximum term ends before the end of a year of
income:
(a) if it ends no later than 6 months after the beginning of the year of
income-the part of the year of income taken up by the taxpayer's maximum term
is an accrual period; and
(b) in any other case-the first 6 months of the year of income is an accrual
period and the period from the middle of the year of income until the end of
the taxpayer's maximum term is an accrual period.
Example
"(5) For example, if the taxpayer's year of income is a financial year and a
security with a 2 year term is issued to the taxpayer on 1 April, the accrual
periods will be as follows:
1st year of income
2nd year of income
3rd year of income
1 July
1 July
1 Apr.
3 month accrual period
6 month accrual period
6 month accrual period
6 month accrual period
3 month accrual period
Accrual amount
Formula
"159GQB.(1) The 'accrual amount' for an accrual period is worked out using
the formula:
x Opening balance) - Periodic interest etc.
"Implicit interest rate"
"(2) In the formula in subsection (1), 'Implicit interest rate' means the
rate of interest worked out under section 159GQC (for a fixed return security)
or 159GQD (for a variable return security), properly adjusted to take account
of the case where the accrual period is less than 6 months.
"Opening balance"
"(3) In the formula in subsection (1), 'Opening balance' means the amount
worked out using the formula:
+ Previous accruals - Payments
where:
'Issue/transfer price' means the issue price or transfer price, as the case
requires, of the security; and
'Previous accruals' means:
(a) if paragraph (b) does not apply-the sum, whether positive or negative,
of all accrual amounts for previous accrual periods in the taxpayer's maximum
term; or
(b) if the accrual period is the first in the taxpayer's maximum term-nil;
and
'Payments' means all payments (other than of periodic interest) made or
liable to be made under the security during all previous accrual periods in
the taxpayer's maximum term.
"Periodic interest etc."
"(4) In the formula in subsection (1), 'Periodic interest etc.' means the
sum of:
(a) all periodic interest payments made or liable to be made under the
security during the accrual period, properly adjusted in the case of any
payment made other than at the end of the period; and
(b) if any payments (other than of periodic interest) made or liable to be
made under the security during the accrual period are made or liable to be
made other than at its end-an amount to adjust properly for the making of the
payments other than at the end of the period.
Implicit interest rate for fixed return security
"159GQC. For the purposes of the formula component 'Implicit interest rate'
in subsection 159GQB(1), the rate of interest for a fixed return security in
relation to a taxpayer is the rate of compound interest per period of 6 months
at which:
(a) the sum of the present values of all amounts payable under the security
during the taxpayer's maximum term; equals:
(b) the issue price or the transfer price, as the case requires, of the
security.
Implicit interest rate for variable return security
Implicit interest rate to be recalculated each year etc.
"159GQD.(1) For the purposes of the formula component 'Implicit interest
rate' in subsection 159GQB(1), the rate of interest for a variable return
security must be worked out in accordance with subsection (2) separately for
each year of income during the taxpayer's maximum term. If there are 2 accrual
periods of 6 months in the year of income, the rate is the same for both
periods. It is possible for the rate to be negative.
Rate
"(2) The rate applicable in relation to a year of income is the rate of
compound interest per period of 6 months in the calculation period (see
subsection (3)) at which:
(a) the sum of the present values of all amounts payable under the security
during the calculation period; equals:
(b) the opening balance, mentioned in subsection 159GQB(1), for the accrual
period that begins the calculation period.
"Calculation period"
"(3) The 'calculation period' means the part of the taxpayer's maximum term
that occurs after the beginning of the year of income.
Where amount payable is not known
"(4) For the purposes of paragraph (2)(a), if by the end of the year of
income it is not possible to determine whether an amount will be payable, or
the size of the amount that will be payable, after the end of the year of
income, the determination is to be made by applying subsection (5), (7) or
(11), or a combination of those subsections.
Assumption of constant level
"(5) Subject to subsection (7), if an amount payable is worked out to any
extent by reference to the amount or level, at a particular time, of a rate,
price, index or other thing, it is to be assumed that the rate, price, index
or thing will be the same at all times after the end of the year of income as
it was at the end of the year of income (or, if it was not available at the
end of the year of income, at the time when it was last available in the year
of income).
Examples
"(6) For the purposes of subsection (5):
(a) an example of an amount worked out wholly by reference to the amount of
a rate at a particular time is an interest payment under a floating rate note.
The amount payable is the product of an interest rate indicator (such as the
prevailing bank bill rate) and the face or par value of the note; and
(b) an example of an amount worked out wholly by reference to the amount of
a price at a particular time is a redemption payment under a commodity linked
security where the amount of the payment is the product of the prevailing
price of a commodity (such as gold) and the face or par value of the security.
Assumption of continuing rate of change
"(7) If an amount payable is worked out to any extent by reference to the
amount of change in an index or other thing that occurs during a period, it is
to be assumed that the index or other thing will continue to change at the
same rate as it did:
(a) if the index or other thing was available at the end of the year of
income-during the year of income; or
(b) in any other case-during the period of 12 months in respect of which the
index or other thing was last available in the year of income.
Example
"(8) An example for the purposes of subsection (7) is a payment whose amount
is the product of the face or par value of a security and the percentage
increase in the All Groups Consumer Price Index number (the 'CPI') during the
year ending on 30 June 1995. If the year of income for which the implicit
interest rate is being worked out is the 1993-94 year of income and the CPI
increases by 2% during the year ending on 31 March 1994 (the date of the last
available number during the year of income), the CPI is assumed to increase by
2% during the year ending on 30 June 1995.
Disguised continuing rate of change case
"(9) For the purposes of subsection (7), if an amount payable is worked out
to any extent by reference to the quotient of:
(a) the amount or level of an index or other thing at a particular time;
and
(b) either:
(i) the amount or level of the index or other thing at a different
time; or
(ii) another amount that, while not expressed to be the amount or
level of the index or other thing at a different time, may reasonably be
regarded as representing the amount or level of the index or other thing at a
different time;
the amount payable is taken to be worked out to that extent by reference to
the amount of change in the index or other thing that occurs during the period
between the 2 times.
Example
"(10) An example for the purposes of subsection (9) is a payment under a
security issued in December 1994 that is worked out by multiplying a number of
dollars by the quotient of:
(a) the All Groups Consumer Price Index number in respect of the quarter
ending on 31 December 1997; and
(b) the number 114.
Assume that the number in paragraph (b) is the same as the All Groups Consumer
Price Index number in respect of the quarter ending on 31 December 1994. In
this case, it would be reasonable to regard the number as representing the
amount of the index at 31 December 1994, and therefore to apply subsection
(7).
General assumption
"(11) If it is not possible to make the determination mentioned in
subsection (4) in respect of the whole or part of any amount by applying
subsection (5) or (7), or both, (for example, because no information about a
rate, price or index was available during the year of income), the
determination in respect of that whole or part is to be made on the basis of
what is most likely in the circumstances.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 11
Consequences of actual payments
11. Section 159GR of the Principal Act is amended:
(a) by omitting from paragraphs (1)(a) and (b) "or subsection (2) of this
section";
(b) by omitting subsection (2).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 12
Balancing adjustments on transfer of qualifying security
12. Section 159GS of the Principal Act is amended by omitting from
paragraphs (3)(c) and (d) "sections 159GQ and 159GR" and substituting "section
159GQ".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 13
Tax treatment of issuer of a qualifying security
13. Section 159GT of the Principal Act is amended:
(a) by omitting subsection (1) and substituting the following subsections:
"(1) Subsections (1A) and (1B) apply if a taxpayer is an issuer of a
qualifying security to which this section applies during a period (the 'issuer
period') comprising the whole or part of a year of income.
"(1A) If, on the assumptions in subsection (1C), an amount would be included
in the taxpayer's assessable income of the year of income in respect of the
issuer period, then, subject to this section, the taxpayer is entitled to a
deduction in his or her assessment for the year of income equal to that
amount.
"(1B) If, on the assumptions in subsection (1C), a deduction would be
allowable in the taxpayer's assessment for the year of income, then an amount
equal to the deduction is included in the taxpayer's assessable income of the
year of income.
"(1C) For the purposes of subsections (1A) and (1B), the assumptions are
that:
(a) the security was issued to the taxpayer (rather than the taxpayer being
the issuer of the security); and
(b) the taxpayer held the security during the whole of the issuer period;
and
(c) the taxpayer did not transfer the security at the end of the issuer
period; and
(d) sections 159GW, 159GX and 159GY were not enacted.";
(b) by omitting from subsection (2) "(1)" and substituting "(1A)";
(c) by omitting subsection (4).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 14
Effect of Division in relation to non-residents
14. Section 159GW of the Principal Act is amended:
(a) by adding at the end of paragraph (1)(a) "and";
(b) by omitting paragraph (1) (b).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 15
Effect of Division where certain payments not assessable
15. Section 159GX of the Principal Act is amended by omitting "or 159GR".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 16
Effect of Division where qualifying security is trading stock
16. Section 159GY of the Principal Act is amended:
(a) by adding at the end of paragraph (a) "or";
(b) by omitting paragraph (b).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 17
Bad debts
17. Section 63 of the Principal Act is amended by omitting from subsection
(1A) "or 159GR" (wherever occurring).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 18
Infrastructure borrowings to be non-assessable and non-deductible
18. Section 159GZZZZE of the Principal Act is amended by omitting paragraph
(2)(b).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 19
Interpretation
19. Section 221YHZA of the Principal Act is amended by omitting paragraph
(2B)(b) and substituting the following paragraph:
"(b) so much of a payment that became payable at the end of the term of the
investment as does not exceed:
(i) the amount that, under section 159GQ, would have been included
in the investor's assessable income for the year of income in which the end of
the term occurred;
if:
(ii) any adoption of an accounting period in lieu of a year of
income were ignored for the purposes of this paragraph and the application of
Division 16E of Part III in relation to this paragraph.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 20
Credits in respect of amounts assessed under Division 16E of Part III
20. Section 221YSA of the Principal Act is amended by omitting from
paragraph (4)(a) "or 159GR".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 21
Application
21. The amendments made by this Division apply in relation to qualifying
securities issued after 27 January 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 22
Object
22. The object of this Division is to exclude certain securities issued in a
series from the application of the accruals assessability provisions of
Division 16E of Part III of the Principal Act.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 23
Interpretation
23. Section 159GP of the Principal Act is amended:
(a) by inserting after paragraph (b) of the definition of "qualifying
security" in subsection (1) the following paragraph:
"(ba) that is not part of an exempt series (see subsection (9A));";
(b) by inserting after subsection (9) the following subsections:
"(9A) For the purposes of paragraph (ba) of the definition of 'qualifying
security' in subsection (1), if:
(a) after 16 December 1984, a person issues a security (the 'first in the
series') that is not a qualifying security; and
(b) during the period from the end of 16 December 1984 until the issuing of
the first in the series, the person did not issue any qualifying security with
exactly the same payment dates, payment amounts and other terms as the first
in the series; and
(c) after issuing the first in the series, the person issues another
security (the 'later security') with exactly the same payment dates, payment
amounts and other terms as the first in the series; the later security is
'part of an exempt series'.
"(9B) In determining for the purposes of paragraph (9A)(b) or (c) whether a
security has exactly the same other terms as another security, the fact that
the first-mentioned security has a different issue price than the
second-mentioned security is to be disregarded.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 24
Application
24. The amendments made by this Division apply to securities issued after 16
December 1984.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 25
Object
25. The object of this Subdivision is to remove the capital gains tax
advantages of share value shifting arrangements.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 26
Insertion of new Division
26. After Division 19A of Part IIIA of the Principal Act the following
Division is inserted:
"Division 19B-Share value shifting arrangements
Object
"160ZZRI. The object of this Division is to remove the capital gains tax
advantages of share value shifting arrangements.
Simplified outline
"160ZZRJ. The following diagram is a simplified outline of this Division:
Division applies if:
* the value of shares of a taxpayer or an associate is shifted under
an arrangement involving a company and the taxpayer
* the taxpayer is the controller of the company at some time in the
course of the arrangement
* the value shifted from the shares is material
Consequences to the extent that value shift is to pre-CGT shares:
possible deemed capital gain in respect of decreased value shares
cost base reduction for decreased value shares, to take account of
value shifted
Consequences to the extent that value shift is to post-CGT shares:
possible deemed capital gain in respect of decreased value shares of
different person
cost base reduction for decreased value shares of same or different
person, to take account of value shifted
if material increase in increased value shares, cost base increase
for those shares, to take account of value shifted
List of definitions
"160ZZRK. The following is a list of expressions defined for the purposes of
this Division and their location:
subsection 160ZZRM(3)
subsection 160ZZRN(2)
subsection 160ZZRN(1)
paragraph 160ZZRM(1)(b)
paragraph 160ZZRQ(2)(a)
subsection 160ZZRN(2)
subsection 160ZZRN(2)
subparagraph 160ZZRM(1)(c)(ii)
paragraph 160ZZRM(1)(c)
subsection 160ZZRO(1)
subsection 160ZZRO(2)
subsection 160ZZRM(6)
subsection 160ZZRM(5)
paragraph 160ZZRQ(6)(b)
subsection 160ZZRM(4)
subsection 160ZZRM(1)
subsection 160ZZRO(3).
Requirements for Division to apply
"160ZZRL. In order for the operative provisions of this Division (sections
160ZZRP and 160ZZRQ) to apply, the following requirements must be satisfied:
(a) first, a share value shift must take place under an arrangement
involving a company and a taxpayer (see section 160ZZRM);
(b) secondly, the taxpayer must be a controller (see subsection 160ZZRN(1))
of the company at some time during the period beginning when the arrangement
is entered into and ending when it has been implemented;
(c) thirdly, there must be a material decrease (see subsection 160ZZRO(1))
in the market value of a share involved in the share value shift.
Share value shift under an arrangement
"Share value shift"
"160ZZRM.(1) A 'share value shift' takes place under an arrangement (see
subsection (3)) involving a company and a taxpayer if:
(a) under the arrangement, the company, the taxpayer or an associate of the
taxpayer, either alone or with one or more other persons, does something in
relation to a share or shares (including issuing a share or shares) in the
company (for example, changing voting rights attached to a share, buying-back
shares or issuing new shares at a discount on their market value); and
(b) at the same time as, or after, the thing is done, one or more shares
(each of which is a 'decreased value share') in the company (whether or not
shares to which paragraph (a) applies) that are post-CGT shares held by the
taxpayer or an associate of the taxpayer decrease in market value; and
(c) at the same time as, or after, the thing is done, either or both of the
following happen:
(i) one or more existing shares (each of which is an 'increased
value share') in the company (whether post-CGT shares or pre-CGT shares and
whether or not shares to which paragraph (a) applies) held by:
(A) in any case-the taxpayer or an associate of the taxpayer; or
(B) if any decreased value share was held by an associate of the
taxpayer-an associate of that associate;
increase in market value; or
(ii) one or more new shares (each of which is also an 'increased
value share') in the company are issued to:
(A) in any case-the taxpayer or an associate of the taxpayer; or
(B) if any decreased value share was held by an associate of the
taxpayer-an associate of that associate;
where the market value of each new share exceeds the consideration (if any)
given by the taxpayer or other person for its issue (the excess is referred to
in this Division as an 'increase' in its market value); and
(d) it is reasonable to conclude that the decrease and increase were caused
by the doing of the thing mentioned in paragraph (a).
Increase or decrease partly due to arrangement
"(2) If it is reasonable to conclude that an increase or decrease in the
market value of one or more shares is partly caused by the doing of the thing
under the arrangement and partly caused by something else, subsection (1)
applies to the decrease or increase to the extent only that it is reasonable
to conclude that the decrease or increase is caused by the doing of the thing
under the arrangement.
"Arrangement"
"(3) An 'arrangement' is:
(a) any arrangement, agreement, understanding, promise or undertaking,
whether express or implied and whether or not enforceable, or intended to be
enforceable, by legal proceedings; or
(b) any scheme, plan, proposal, action, course of action, or course of
conduct, whether of one person or more than one person.
"Share"
"(4) The expression 'share' includes:
(a) an interest in a share; or
(b) a right or option (including a contingent right or option) to acquire a
share or an interest in a share.
"Pre-CGT share"
"(5) A share is a 'pre-CGT share' if it was acquired by the shareholder
before 20 September 1985.
"Post-CGT share"
"(6) A share is a 'post-CGT share' if it was acquired by the shareholder on
or after 20 September 1985.
Controller of a company etc.
"Controller"
"160ZZRN.(1) A taxpayer is a 'controller' of a company if:
(a) the taxpayer has an associate-inclusive control interest in the company
of not less than 50%; or
(b) both the following subparagraphs apply:
(i) the taxpayer has an associate-inclusive control interest in
the company of not less than 40%;
(ii) the company is not controlled by a group of entities other
than a group consisting of or including the taxpayer or any of the taxpayer's
associates; or
(c) the taxpayer controls the company, either alone or together with an
associate or associates.
"Associate", "entity" and "group"
"(2) The expressions 'associate', 'entity' and 'group' have the same
respective meanings as in Part X.
"Associate-inclusive control interest"
"(3) Subject to the modifications in subsection (4), whether a taxpayer has
an associate-inclusive control interest of not less than 50%, or not less than
40%, in a company is to be determined by applying Division 3 of Part X.
Modifications of applied provisions
"(4) The modifications are as follows:
(a) that Division 3 of Part X applies for the purpose of determining the
associate-inclusive control interests in a company whether or not in the
capacity of trustee;
Note: The expression 'company' in Part X does not include a company in the
capacity of trustee.
(b) that the purpose of making the determination is one of the purposes for
which subsection 349(4) is to be applied;
(c) that subsections 350(6) and (7) and 355(1) do not apply;
(d) that the reference in subsection 352(2) to a CFE is a reference to:
(i) a company of which the taxpayer or an associate is a
controller; or
(ii) a partnership; or
a trust;
(e) that references in section 354 to a CFP are references to any
partnership;
(f) that references in section 355 to a CFT are references to any trust.
"Material decrease", "material increase" and "total market value increase"
"Material decrease"
"160ZZRO.(1) A decrease (the 'current decrease') in the market value of a
share involved in a share value shift is a 'material decrease' if:
(a) the sum of the percentage of the current decrease and the percentages of
all other decreases (if any) in the market value of the share as a result of
share value shifts under the same arrangement (whether before or after the
current decrease) is at least 5%; or
(b) the sum of all decreases in the market value of all shares whose market
value is decreased as a result of share value shifts at any time under the
same arrangement is at least $100,000.
"Material increase"
"(2) An increase (the 'current increase') in the market value of a share
involved in a share value shift is a 'material increase' if:
(a) the sum of the percentage of the current increase and the percentages of
all other increases (if any) in the market value of the share as a result of
share value shifts under the same arrangement (whether before or after the
current increase) is at least 5%; or
(b) the sum of all increases in the market value of all shares whose market
value is increased as a result of share value shifts at any time under the
same arrangement is at least $100,000.
"Total market value increase"
"(3) The 'total market value increase' in respect of an arrangement under
which one or more share value shifts take place is the sum of:
(a) all increases in market value of all shares whose market value is
increased as a result of the share value shifts; and
(b) all increases in market value of all other shares whose market value is
increased, where it is reasonable to conclude that the doing of the thing
mentioned in paragraph 160ZZRM(1)(a) in relation to any of the share value
shifts caused the increase.
Consequences of value shift to pre-CGT share
Section sets out consequences
"160ZZRP.(1) If the requirements of section 160ZZRL are satisfied and a
particular increased value share is a pre-CGT share, the following are the
consequences.
Deemed capital gain
"(2) If:
(a) in respect of each decreased value share for which there was a material
decrease in market value, this Part were applied on the following
assumptions:
(i) that a part of the share had been disposed of by its holder
immediately after the decrease in value of the share;
(ii) that the consideration for the disposal was an amount worked
out using the formula:
x Decrease in market value of
decreased value share
Total market value increase
(iii) that the cost base or indexed cost base of the part was the
amount worked out by multiplying the amount that would be the cost base or
indexed cost base for the whole of the share if it were being disposed of at
the time, by the fraction worked out using the formula:
Amount worked out under subparagraph (ii)
Market value of the share immediately before the decrease
and
(b) as a result a capital gain would accrue to the holder; then, for the
purposes of this Act, a capital gain of that amount is taken to accrue to the
holder for the year of income in respect of the disposal of an asset (even
though no asset was actually disposed of).
Adjustment to acquisition consideration etc. for decreased value share
"(3) Regardless of whether subsection (2) applies, for the purposes of any
application of this Part to a later disposal by the holder of any decreased
value share for which there was a material decrease in market value:
(a) all amounts that, under section 160ZH (which deals with cost base,
indexed cost base and reduced cost base) are attributable to the share in
relation to the period before the decrease in value took place;
are taken to be reduced by:
(b) the fraction worked out using the formula:
. Decrease in market value of
x decreased value share
Market value of decreased
value share immediately
before the decrease
Consequences of value shift to post-CGT share
Section sets out consequences
"160ZZRQ.(1) If the requirements of section 160ZZRL are satisfied and a
particular increased value share is a post-CGT share, the following are the
consequences.
Deemed capital gain
"(2) If:
(a) in respect of each decreased value share (a 'different person share'):
(i) held by a person other than the holder of the particular
increased value share; and
(ii) for which there was a material decrease in market value;
this Part were applied on the following assumptions:
(iii) that a part of the different person share had been disposed
of by its holder immediately after the decrease in value of the share;
(iv) that the consideration for the disposal was an amount worked
out using the formula:
x Decrease in market value of
different person share
value share
Total market value increase
(v) that the cost base or indexed cost base of the part was the
amount worked out by multiplying the amount that would be the cost base or
indexed cost base for the whole of the share if it were being disposed of at
the time, by the fraction worked out using the formula:
Amount worked out under subparagraph (iv)
Market value of the share immediately before the decrease
and
(b) as a result a capital gain would accrue to the holder; then, for the
purposes of this Act, a capital gain of that amount is taken to accrue to the
holder for the year of income in respect of the disposal of an asset (even
though no asset was actually disposed of).
Adjustment to acquisition consideration etc. for decreased value share
"(3) For the purpose of any application of this Part to a later disposal by
the holder of any decreased value share for which there was a material
decrease in market value:
(a) all amounts that, under section 160ZH (which deals with cost base,
indexed cost base and reduced cost base) are attributable to any such share in
relation to the period before the decrease in value took place;
are taken to be reduced by:
(b) the fraction worked out using the formula:
x Decrease in market value of
decreased value share
Market value of decreased value
share immediately before the
decrease.
Adjustment to cost base expenditure for increased value share
"(4) If there is a material increase (see subsection 160ZZRO(2)) in the
market value of the particular increased value share then, for the purposes of
any application of this Part to a later disposal of the particular increased
value share by the holder, the holder is taken to have incurred in relation to
the share, at the time of the increase in its market value, expenditure to
which paragraph 160ZH(1)(c), (2)(c) or (3)(c) applies that is equal to the sum
of the amounts qualifying under subsections (5) and (6) of this section.
Deemed expenditure referable to decreased value shares of different persons
"(5) One amount qualifying for the purposes of subsection (4) is the smaller
of the following:
(a) the amount worked out by multiplying the increase in market value of the
particular increased value share, to the extent that the increase is reflected
in its market value at the time of the later disposal, by the following
fraction:
Sum of decreases in market value of all different person shares
Sum of decreases in market value of all decreased value shares;
(b) the sum of the amounts worked out for each different person share using
the following formula:
x Decrease in market value
of different person share
Total market value increase.
Deemed expenditure referable to decreased value shares of same person
"(6) The other amount qualifying for the purposes of subsection (4) is the
smallest of the following:
(a) the amount worked out by multiplying the increase in market value of the
particular increased value share, to the extent that the increase is reflected
in its market value at the time of the later disposal, by the following
fraction:
1 - fraction in paragraph (5)(a);
(b) the sum of the amounts worked out for each share (a 'same person
share'):
(i) held by the person who holds the particular increased value
share; and
(ii) for which there was a material decrease in market value;
using the following formula:
x Decrease in market value
of same person share
Total market value increase
(c) the sum of the amounts of reductions that would result from the
application of subsection (3) if that subsection applied only to same person
shares.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 27
Keeping of records
27. Section 160ZZU of the Principal Act is amended by omitting paragraph
(1)(b) and substituting the following paragraph:
"(b) if the asset has not been disposed of:
(i) in any case-any amount that would, if the asset were disposed
of, form part of the cost base to the person in respect of the asset; and
(ii) if the asset is a share whose market value has suffered a
material decrease under an arrangement where the requirements of section
160ZZRL (which deals with share value shifting arrangements) are satisfied:
(A) the essential features of the arrangement; and
(B) the dates of the decreases in market value of all shares
involved in share value shifts under the arrangement; and
(C) the amounts of the decreases in market value of all shares
involved in share value shifts under the arrangement; and
(D) the amounts of the increases in market value of all shares
involved in share value shifts under the arrangement and of any other shares
covered by paragraph 160ZZRO(3)(b); and
(E) any amount that would, if the share were disposed of at the
time of the decrease in market value, form part of the cost base to the person
in respect of the asset; and".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 28
Application
28. The amendments made by this Subdivision apply to arrangements where the
decrease in market value and increase in market value occur after 12 noon, by
legal time in the Australian Capital Territory, on 12 January 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 29
Object
29. The object of this Subdivision is to clarify the capital gains tax
provisions of the Principal Act in relation to the creation of trusts and the
conversion of trusts into unit trusts.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 30
What constitutes a disposal or acquisition
30. Section 160M of the Principal Act is amended:
(a) by inserting in subsection (1A) ", subject to paragraphs (3)(a) and
(aa)," after "that";
(b) by omitting paragraph (3)(a) and substituting the following paragraphs:
"(a) the creation of a trust, by declaration or settlement, over the asset,
other than where either:
(i) all of the following sub-subparagraphs apply:
(A) the person who owned the asset immediately before the
creation of the trust is the sole beneficiary of the trust;
(B) that person is absolutely entitled to the asset as against
the trustee or would, but for a legal disability, be so entitled;
(C) the trust is not a unit trust; or
(ii) all of the following sub-subparagraphs apply:
(A) the trust is created by the transfer of an asset to a trust
from another trust;
(B) the beneficiaries of the trusts are identical;
(C) the terms of the trusts, including the interest of each
beneficiary in the income and corpus of the trusts, are identical;
(aa) the conversion of a trust over an asset to a unit trust where:
(i) the trust is not an existing unit trust; and
(ii) immediately before the conversion, a person was absolutely
entitled to the asset as against the trustee or would, but for a legal
disability, have been so entitled;";
(c) by inserting after subsection (3) the following subsection:
"(3A) For the purposes of paragraph (3)(a), the transfer of an asset to a
trust is taken to be the creation, by settlement, of a trust over the
asset.";
(d) by inserting after subsection (4) the following subsections:
"(4A) Subsection (4B) applies if:
(a) a change in the ownership of an asset results from the application of
paragraph (3)(a); and
(b) the person who owned the asset immediately before the creation of the
trust is the trustee of the trust; and
(c) immediately after the change, no beneficiary is absolutely entitled to
the asset as against the trustee.
"(4B) If this subsection applies, then, for the purposes of the application
of this Part to any later disposal of the asset by the trustee, the cost base,
indexed cost base or reduced cost base of the asset is the amount that would
apply if the trustee had acquired the asset, at the time of the change in
ownership resulting from the application of paragraph (3)(a), for a
consideration equal to its market value at that time.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 31
Disposals by bare trustees and persons enforcing securities
31. Section 160V of the Principal Act is amended by inserting after
subsection (1A) the following subsection:
"(1B) For the avoidance of doubt, nothing in subsection (1) has the effect
that a change in the ownership of an asset under paragraph 160M(3)(a) or (aa)
is not taken to have occurred.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 32
Application
32. The amendments made by this Subdivision apply to creation of trusts, or
conversions of trusts into unit trusts, after 12 noon, by legal time in the
Australian Capital Territory, on 12 January 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 33
Transitional
33. The amendments made by this Subdivision are to be disregarded in
determining the application of Part IIIA of the Principal Act in relation to
disposals of assets at or before 12 noon, by legal time in the Australian
Capital Territory, on 12 January 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 34
Object
34. The object of this Subdivision is to amend the capital gains tax
provisions of the Principal Act to allow roll-over relief for transfers of
assets between related companies.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 35
Securities lending arrangements
35. Section 26BC of the Principal Act is amended by omitting "160ZZO" from
the definition of "subsidiary" in subsection (1) and substituting "160G".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 36
Application
36. Section 160ZYK of the Principal Act is amended by omitting
sub-subparagraph (b)(ii)(B) and substituting the following sub-subparagraph:
"(B) the issuing company is, or but for the issue of the rights would be,
related to the company referred to in paragraph (a) when the rights are
issued; and".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 37
Application
37. Section 160ZYR of the Principal Act is amended by omitting
sub-subparagraph (b)(ii)(B) and substituting the following sub-subparagraph:
"(B) the issuing company is, or but for the issue of the options would be,
related to the company referred to in paragraph (a) when the options are
issued; and".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 38
Transfer of asset between related companies
38. Section 160ZZO of the Principal Act is amended:
(a) by omitting from paragraph (1)(b) "a group company in relation to the
transferor in relation to the year of income in which the disposal took" and
substituting "related to the transferor when the disposal takes";
(b) by omitting subsections (3) to (8B) (inclusive).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 39
Interpretation
39. Section 160ZZRA of the Principal Act is amended by omitting "160ZZO"
from the definition of "subsidiary" and substituting "160G".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 40
When companies under common ownership
40. Section 160ZZRB of the Principal Act is amended by omitting from
paragraph (a) "a group company (within the meaning of section 160ZZO) in
relation" and substituting "related".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 41
Disposal of shares or interest in trust
41. Section 160ZZT of the Principal Act is amended by omitting from
paragraph (4)(d) "a group company (within the meaning of section 160ZZO) in
relation to the transferor in relation to the year of income in which the
disposal took" and substituting "related to the transferor when the disposal
takes".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 42
Keeping of records
42. Section 160ZZU of the Principal Act is amended by omitting from
paragraph (3)(b) "160ZZO" (first occurring) and substituting "160ZZOA".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 43
Application
43.(1) The amendments made by section 35 apply in relation to disposals that
occur during the 1993-94 year of income, or a later year of income, of the
lender.
(2) The amendments made by section 36 apply in relation to issues of rights
that occur during the 1993-94 year of income, or a later year of income, of
the shareholder.
(3) The amendments made by section 37 apply in relation to issues of options
that occur during the 1993-94 year of income, or a later year of income, of
the shareholder.
(4) The amendments made by sections 38, 39, 40 and 41 apply in relation to
disposals that occur during the 1993-94 year of income, or a later year of
income, of the transferor.
(5) The amendments made by section 42 apply in relation to acquisitions that
occur during the 1993-94 year of income, or a later year of income, of the
transferee.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 44
Object
44. The object of this Subdivision is to exclude certain company group
break-ups involving sub-groups from the capital gains tax provisions of the
Principal Act in relation to companies ceasing to be related after obtaining
roll-over relief.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 45
Companies ceasing to be related after section 160ZZO application
45. Section 160ZZOA of the Principal Act is amended:
(a) by inserting after paragraph (1)(c) the following word and paragraph:
"and (ca) the cessation referred to in paragraph (c) is not an eligible
sub-group break-up;";
(b) by omitting from paragraph (2)(c) "160ZZO" and substituting "160G";
(c) by adding at the end of subsection (2) the following word and
paragraphs:
"; and (e) if a company has one or more subsidiaries, the company and all of
the subsidiaries of the company are a 'sub-group' and the company is the
'holding company'; and
(f) a cessation referred to in paragraph (1)(c) is an 'eligible sub-group
break-up' if:
(i) the company referred to in paragraph (1)(c) is a member of a
sub-group at the time of the group roll-over disposal referred to in that
paragraph; and
(ii) the transferor and the transferee referred to in section
160ZZO:
(A) if sub-subparagraph (B) does not apply-in relation to the
group roll-over disposal; or
(B) if the group roll-over disposal was one of a series of group
roll-over disposals-in relation to each of the group roll-over disposals in
the series; were members of the sub-group at the time of the group roll-over
disposal concerned; and
(iii) if the company is the holding company of the sub-group -
immediately after the cessation, none of the shares in the company are held by
the ultimate holding company or by a company that is related to the ultimate
holding company; and
(iv) if the company is not the holding company of the sub-group -
immediately after the cessation, none of the shares in the company or in the
holding company are held by the ultimate holding company or by a company that
is related to the ultimate holding company.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 46
Application
46. Section 56 of the Taxation Laws Amendment Act 1993 applies in the same
way to the amendments made by this Subdivision as it applied to the amendments
made by Division 15 of Part 3 of that Act.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 47
Object
47. The object of this Subdivision is to exclude from the capital gains tax
provisions of the Principal Act the disposal of certain rights under
prescribed government incentive schemes.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 48
Part applies in respect of disposals of assets
48. Section 160L of the Principal Act is amended by inserting after
subsection (6) the following subsections:
"(6A) This Part does not apply to a disposal (other than a disposal by way
of assignment) by a taxpayer of a right to reimbursement, or to payment, under
a scheme, of expenses of the taxpayer in participating in the scheme where the
scheme is:
(a) established by the Commonwealth, a State or a Territory or by an
authority of the Commonwealth, of a State or of a Territory; and
(b) prescribed for the purposes of this subsection under regulations
applying to the time of the disposal (whether the regulations concerned are
made before or after the time of the disposal).
"(6B) Nothing in section 170 prevents the amendment of an assessment for the
purpose of giving effect to subsection (6A).".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 49
Application
49. The amendment made by this Subdivision applies in relation to disposals
before, at or after the commencement of this section.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 50
Object
50. The object of this Subdivision is to amend the Principal Act to ensure
that amended assessments may be made at any time to give effect to various
capital gains tax provisions.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 51
Time of disposal and acquisition
51. Section 160U of the Principal Act is amended by adding at the end the
following subsection:
"(10) Section 170 does not prevent the amendment of an assessment at any
time to give effect to subsection (3) or (8) where the time of an acquisition
or disposal is taken to have been before the making of the assessment.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 52
Amendment of assessments
52. Section 170 of the Principal Act is amended by inserting after
subsection (9C) the following subsection:
"(9D) This section does not prevent the amendment of an assessment at any
time if the amendment is made, in relation to a contract that after the making
of the assessment is found to be void ab initio, to ensure that Part IIIA is
taken always to have applied to the contract as if the contract had never been
made.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 53
Application
53.(1) Subject to subsection (2), the amendments made by this Subdivision
apply to assessments made at any time.
(2) The amendments made by this Subdivision do not permit the amendment of
an assessment if:
(a) the amendment of the assessment would effect an increase in the
liability of a taxpayer under the assessment; and
(b) as at the end of 11 January 1994, the Commissioner was prevented by
section 170 of the Principal Act from amending the assessment.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 54
Object
54. The object of this Subdivision is to amend the capital gains tax
provisions of the Principal Act to provide for the apportionment of gains or
losses in relation to certain assets that are only used in Australia for a
part of the time when they are owned.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 55
Insertion of new section
55. After section 160ZA of the Principal Act the following section is
inserted:
Reduction of capital gains and capital losses for certain taxable Australian
assets
"160ZAA. If:
(a) the disposal of an asset is covered by paragraph 160T(1)(b), but not by
any other paragraph of subsection 160T(1); and
(b) the taxpayer used the assets in the way described in that paragraph for
only part of the period (the 'ownership period') starting when the taxpayer
acquired the asset and ending when the taxpayer disposed of the asset; and
(c) a capital gain has accrued to the taxpayer, or the taxpayer has incurred
a capital loss, in respect of the disposal; the amount of the capital gain, or
of the capital loss, (as the case may be) is taken to be:
x Number of days the asset was
used in the way described in
paragraph 160T(1)(b)
Number of days in the ownership
period.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 56
Application
56. The amendment made by this Subdivision applies in relation to disposals
of assets after 12 noon, by legal time in the Australian Capital Territory, on
12 January 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 57
Object
57. The object of this Subdivision is to amend the capital gains tax
provisions of the Principal Act in relation to the transfer of net capital
losses within a company group.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 58
Transfer of net capital loss within company group
58. Section 160ZP of the Principal Act is amended:
(a) by inserting in subsection (13) "any payments covered by subsection (12)
and to" after "having regard to";
(b) by adding at the end the following subsections:
"(14) Where:
(a) an amount has been specified by the loss company in an agreement under
paragraph (7)(c); and
(b) either:
(i) a company (the 'parent company') that is a group company in
relation to the gain company in relation to the gain year holds shares in
another company that is such a group company, being shares that were acquired
by the parent company after 19 September 1985; or
(ii) a company (the 'creditor company') that is a group company in
relation to the gain company in relation to the gain year is owed a debt by
another company that is such a group company in respect of a loan made to that
other company, being a debt that commenced to be owed to the creditor company
after 19 September 1985; and
(c) either:
(i) the other company referred to in subparagraph (b)(i) or (ii),
as the case may be, is the gain company; or
(ii) the money paid to acquire the shares or the money lent, as
the case may be, has indirectly, through one or more interposed companies,
trusts or partnerships, been applied in the acquisition of shares in the gain
company by a company that is a group company in relation to the gain company
in relation to the gain year or in the making of a loan to the gain company by
a company that is such a group company;
the cost base, the indexed cost base or the reduced cost base, as the case may
be, to the parent company of the shares or to the creditor company of the debt
is increased by such amount as is appropriate having regard to any payments
covered by subsection (12) and to the direct or indirect interest of the
parent company or creditor company in the gain company.
"(15) The amount of the increase under subsection (14) in the cost base, the
indexed cost base or the reduced cost base, as the case may be, to the parent
company of the shares, or to the creditor company of the debt, is not to
exceed the increase in the market value of the shares or the debt that results
from the capital loss being taken to have been incurred by the gain company.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 59
Application
59. The amendments made by this Subdivision apply in relation to amounts
specified in agreements made under paragraph 160ZP(7)(c) of the Principal Act
where the gain year is the 1993-94 year of income, or a later year of income,
of the gain company.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 60
Object
60. The object of this Subdivision is to amend the capital gains tax
provisions of the Principal Act to remove anomalies that are detrimental to
taxpayers in relation to the disposal of assets during the winding-up of
companies.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 61
Transfers of assets between companies under common ownership
61. Section 160ZZRD of the Principal Act is amended by adding at the end the
following subsection:
"(3) This Division does not apply if:
(a) the disposal is a distribution to shareholders of a company by a
liquidator in the course of winding-up the company; and
(b) the company is dissolved within 3 years after the winding-up commenced,
or within such further time as the Commissioner considers appropriate for the
purposes of the application of this subsection in relation to the company.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 62
Application
62. The amendment made by this Subdivision applies in relation to disposals
of assets after 6 December 1990.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 63
Object
63. The object of this Subdivision is to remove the capital gains tax
advantages of dividend rebate arrangements.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 64
Insertion of new section
64. After section 159GZZZM of the Principal Act the following section is
inserted in Subdivision A of Division 16K of Part III:
Meaning of "rebatable dividend adjustment" for purposes of share buy-back
provisions
"159GZZZMA.(1) For the purposes of this Division a 'rebatable dividend
adjustment' arises in relation to a share (the 'RDA share') if:
(a) under an arrangement:
(i) a company issues one or more shares at a premium; and
(ii) the RDA share is a share in the company (whether or not one
of the shares issued at a premium); and
(iii) the company buys the RDA share from the holder of the share;
and
(iv) the purchase is an off-market purchase; and
(b) an amount (the 'attributable amount'), being the whole or a part of the
purchase price of the RDA share, is taken by subsection (2) to be paid out of
the premiums on the shares; and
(c) assuming this section and subsection 159GZZZP(3) had not been
enacted-the holder of the RDA share would have been entitled to a rebate of
tax (the 'dividend rebate') in the holder's assessment for a year of income
under section 46 or 46A in respect of a dividend (the 'dividend amount') that
is taken, by subsection 159GZZZP(1), to be paid by the company in relation to
the purchase of the RDA share.
"(2) For the purposes of paragraph (1)(b), so much of the purchase price of
the RDA share as does not exceed the lesser of the dividend amount and the
amount worked out using the following formula is taken to be paid out of the
premiums:
x Total of all - Total of purchase prices
paid out of those premiums
through a share premium
account
Total of purchase prices for all purchases of
shares under the arrangement
where:
'Total of purchase prices paid out of those premiums through a share premium
account' means
(a) if:
(i) any amount (the 'credited amount') of the premiums on shares
issued under the arrangement was credited to a share premium account of the
company; and
(ii) any amount (the 'share premium amount') of the purchase price
of shares under the arrangement was debited against amounts standing to the
credit of that account;
so much of the share premium amount as could reasonably be attributed to the
credited amount; or
(b) in any other case-nil.
"(3) The amount of the rebatable dividend adjustment arising under
subsection (1) in relation to the RDA share is:
(Attributable amount -
Amount (if any) of the share
premium referred to in
subparagraph (1)(a)(i)
payable by the taxpayer
Number of RDA shares held by the taxpayer)
Amount of dividend rebate
x General company
tax rate
"(4) A rebatable dividend adjustment also arises in relation to a share (the
'RDA share') if:
(a) under an arrangement:
(i) the RDA share is a share in the company; and
(ii) the company buys the RDA share from the holder of the share;
and
the purchase is an off-market purchase; and
(b) an amount (the 'attributable amount'), being the whole or a part of the
purchase price of the RDA share, is taken by subsection (5) to be paid out of
profits arising from the revaluation of an asset; and
(c) had the company disposed of the asset immediately after the revaluation,
one or more of the following subparagraphs would have applied:
(i) any profit that would have arisen on the disposal of the asset
would, in whole or in part, have been included in the assessable income of the
company;
(ii) any loss that would have arisen from the disposal of the
asset would, in whole or in part, have been allowable as a deduction to the
company;
(iii) Part IIIA would, or would but for Division 17 of that Part,
have applied in respect of the disposal of the asset; and
(d) the holder of the RDA share is entitled to a rebate of tax (the
'dividend rebate') in the holder's assessment for a year of income under
section 46 or 46A in respect of an amount (the 'dividend amount') being so
much of the purchase price of the RDA share as is a dividend.
"(5) For the purposes of paragraph (4)(b), but subject to subsection (6), so
much of the purchase price as does not exceed the lesser of the dividend
amount and the amount worked out using the following formula is taken to be
paid out of the profit arising on the revaluation of the asset:
x Amount of profit arising on
revaluation of the asset
Total of purchase prices for all
purchases of shares under the arrangement
"(6) If a share purchase is made under an arrangement covered by both
paragraphs (1)(a) and (4)(a), the amount of the purchase price that would,
apart from this subsection, be taken by subsection (5) to be paid out of the
profit arising on the revaluation of the asset under the arrangement does not
exceed the amount that remains after deducting from the dividend amount any
part of the purchase price that is taken by subsection (2) to be paid out of
premiums on shares issued under the arrangement.
"(7) The amount of the rebatable dividend adjustment arising under
subsection (4) in relation to the RDA share is:
x Amount of dividend rebate
x General
company
tax rate
"(8) In this section:
'arrangement' has the same meaning as in section 160ZZRM;
'general company tax rate' has the same meaning as in section 160APA.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 65
Part of off-market purchase price is a dividend
65. Section 159GZZZP of the Principal Act is amended by adding at the end
the following subsection:
"(3) For the purposes of paragraph (1)(b), a rebatable dividend adjustment
that arises in relation to the share under subsection 159GZZZMA(1) is taken to
be an amount of the purchase price in respect of the buy-back of the share
which is debited against amounts standing to the credit of a share premium
account of the company.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 66
Consideration in respect of off-market purchase
66. Section 159GZZZQ of the Principal Act is amended:
(a) by omitting "Where" and substituting "Subject to subsection (2),
where";
(b) by adding at the end the following subsection:
"(2) For the purposes of paragraph (1)(b), if a rebatable dividend
adjustment arises in relation to the share under subsection 159GZZZMA(4), the
amount that the seller is taken to have received or to be entitled to receive,
as consideration in respect of the sale of the share, is to be increased by
the amount of the rebatable dividend adjustment.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 67
Reductions of capital gains where amount otherwise assessable
67. Section 160ZA of the Principal Act is amended:
(a) by omitting from paragraph (4)(b) all the words after "this Part" and
substituting "(other than an amount or amounts excluded by subsection
(4A));";
(b) by inserting after subsection (4) the following subsection:
"(4A) The following are excluded from paragraph (4)(b):
(a) in the case of any asset-any amount that has been, or will be, included
in the assessable income of the taxpayer under a provision having effect
where:
(i) the taxpayer recoups capital expenditure which was incurred in
respect of the asset; and
(ii) a deduction has been allowed or is allowable to the taxpayer
in respect of the capital expenditure; and
(b) if the asset is a share-the amount of any rebatable dividend adjustment
(see section 160ZLA) in relation to the share.";
(c) by omitting from paragraph (5)(c) all the words after "this Part" and
substituting "(other than an amount or amounts excluded by subsection
(5A));";
(d) by inserting after subsection (5) the following subsection:
"(5A) The following are excluded from paragraph (5)(c):
(a) in the case of any asset-any amount that has been, or will be, included
in the assessable income of the partnership under a provision having effect
where:
(i) the partnership recoups capital expenditure which was incurred
in respect of the asset; and
(ii) a deduction has been allowed or is allowable to the
partnership in respect of the capital expenditure; and
(b) if the asset is a share-the amount of any rebatable dividend adjustment
(see section 160ZLA) in relation to the share.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 68
Reduction of amounts for the purposes of reduced cost base
68. Section 160ZK of the Principal Act is amended:
(a) by omitting from subsection (1) "A reference in" and substituting
"Subject to subsection (1B), a reference in";
(b) by inserting after subsection (1A) the following subsection:
"(1B) If the asset is a share, the amount worked out under subsection (1) is
to be reduced by any rebatable dividend adjustment that arises in relation to
the share (see subsection (5)).";
(c) by omitting from subsection (3) "A reference in" and substituting
"Subject to subsection (3B), a reference in";
(d) by inserting after subsection (3A) the following subsection:
"(3B) If the asset is a share, the amount worked out under subsection (3) is
to be reduced by any rebatable dividend adjustment that arises in relation to
the share (see subsection (5)).";
(e) by adding at the end the following subsections:
"(5) A rebatable dividend adjustment arises in relation to a share (the 'RDA
share') if:
(a) under an arrangement, a company makes a distribution to the holder of
the RDA share; and
(b) an amount (the 'attributable amount'), being the whole or a part of the
distribution, could reasonably be taken to be attributable to profits that
were derived by the company before the holder acquired the RDA share; and
(c) the holder of the RDA share is entitled to a rebate of tax (the
'dividend rebate') in the holder's assessment for a year of income under
section 46 or 46A in respect of an amount (the 'dividend amount') being so
much of the distribution as is a dividend; and
(d) the holder of the RDA share is, at any time during the period in which
the arrangement is made or carried out, a controller of the company or an
associate of a controller of the company.
"(6) The amount of a rebatable dividend adjustment arising in relation to
the share under subsection (5) is:
x Amount of the dividend rebate
- SECT 86
Disposal etc. of property within 12 months after installation etc.
86. Section 82AG of the Principal Act is amended:
(a) by inserting after subsection (1A) the following subsection:
"(1B) If the taxpayer is a company:
(a) subparagraph (1)(b)(i) does not apply to the leasing of property to a
related company; and
(b) subparagraph (1)(b)(iii) does not apply to the granting of rights to a
related company to use property;
if, at all times during the period ending at the earlier of:
(c) the end of the term of the lease or period of the grant; and
(d) the end of the period of 12 months mentioned in subsection (1); the
related company remains a related company and uses the property wholly and
exclusively both in Australia and for the purpose of producing assessable
income other than by leasing the property or otherwise granting a right to
another person to use the property.";
(b) by inserting after subsection (3A) the following subsection:
"(3B) Paragraph (3)(d) or (f) does not apply if:
(a) the lessee is a company; and
(b) the other person is a related company of the lessee; and
(c) at all times during the period ending at the earlier of:
(i) the end of the term of the contract or arrangement; and
(ii) the end of the 12 months mentioned in subsection (3);
the other person was a related company of the lessee and used the property
wholly and exclusively both in Australia and for the purpose of producing
assessable income other than by leasing the property or otherwise granting a
right to another person to use the property.";
(c) by adding at the end the following subsection:
"(6) Subsection (4) does not apply if:
(a) the lessee is a company; and
(b) the other person is a related company of the lessee; and
(c) the use of the property under the contract or arrangement was to take
place while the other person remained a related company of the lessee and was
to be wholly and exclusively both in Australia and for the purpose of
producing assessable income other than by leasing the property or otherwise
granting a right to another person to use the property; and
(d) at all times during the period ending at the earlier of:
(i) the end of the term of the contract or arrangement; and
(ii) the end of the 12 months after the property was first used,
or installed ready for use, by the lessee;
the requirements of paragraph (c) were satisfied in relation to the use of the
property.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 87
Disposal etc. of property after 12 months after installation etc.
87. Section 82AH of the Principal Act is amended:
(a) by inserting after subsection (1A) the following subsection:
"(1B) If the taxpayer is a company:
(a) sub-subparagraph (1)(b)(ii)(A) does not apply to the leasing of property
to a related company; and
(b) sub-subparagraph (1)(b)(ii)(C) does not apply to the granting of rights
to a related company to use property;
if the use of the property under the lease or grant was to take place while
the related company remained a related company and was to be wholly and
exclusively both in Australia and for the purpose of producing assessable
income other than by leasing the property or otherwise granting a right to
another person to use the property.";
(b) by inserting after subsection (3A) the following subsection:
"(3B) Subparagraph (3)(b)(iv) or (vi) does not apply if:
(a) the lessee is a company; and
(b) the other person is a related company of the lessee; and
(c) the use of the property under the contract or arrangement was to take
place while the other person remained a related company of the lessee and was
to be wholly and exclusively both in Australia and for the purpose of
producing assessable income other than by leasing the property or otherwise
granting a right to another person to use the property.";
(c) by adding at the end the following subsection:
"(6) Subparagraph (4)(b)(iii) or (v) does not apply if:
(a) the taxpayer is a company; and
(b) the other person is a related company of the taxpayer; and
(c) the use of the property under the contract or arrangement was to take
place while the other person remained a related company of the taxpayer and
was to be wholly and exclusively both in Australia and for the purpose of
producing assessable income other than by leasing the property or otherwise
granting a right to another person to use the property.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 88
Special provisions relating to partnerships
88. Section 82AJ of the Principal Act is amended:
(a) by inserting after subsection (7AA) the following subsection:
"(7AB) Paragraph (7)(d) or (f) does not apply if:
(a) the lessee is a company; and
(b) the other person is a related company of the lessee; and
(c) at all times during the period ending at the earlier of:
(i) the end of the term of the contract or arrangement; and
(ii) the end of the 12 months mentioned in subsection (7);
the other person was a related company of the lessee and used the property
wholly and exclusively both in Australia and for the purpose of producing
assessable income other than by leasing the property or otherwise granting a
right to another person to use the property.";
(b) by inserting after subsection (7B) the following subsection:
"(7C) Subsection (7A) does not apply if:
(a) the lessee is a company; and
(b) the other person is a related company of the lessee; and
(c) the use of the property under the contract or arrangement was to take
place while the other person remained a related company of the lessee and was
to be wholly and exclusively both in Australia and for the purpose of
producing assessable income other than by leasing the property or otherwise
granting a right to another person to use the property; and
(d) at all times during the period ending at the earlier of:
(i) the end of the term of the contract or arrangement; and
(ii) the end of the 12 months after the property was first used,
or installed ready for use, by the lessee;
the requirements of paragraph (c) were satisfied in relation to the use of the
property.";
(c) by adding at the end the following subsection:
"(10) Subparagraph (8)(b)(iv) or (vi) does not apply if:
(a) the lessee is a company; and
(b) the other person is a related company of the lessee; and
(c) the use of the property under the contract or arrangement was to take
place while the other person remained a related company of the lessee and was
to be wholly and exclusively both in Australia and for the purpose of
producing assessable income other than by leasing the property or otherwise
granting a right to another person to use the property.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 89
Disposals within company group
89. Section 82AJA of the Principal Act is amended by inserting after
subsection (1A) the following subsections:
"(1B) For the purposes of subsection (1), if the requirements set out in
subsection (1C) are satisfied:
(a) subparagraph (1)(d)(i) does not apply to the leasing of the property to
a company (the 'related company') that is related to the person who owned the
property and is an eligible public company in relation to the year of income
in which the leasing occurs; or
(b) subparagraph (1)(d)(ib) does not apply to the granting of rights to use
the property to a company (also the 'related company') that is related to the
person who owned the property and is an eligible public company in relation to
the year of income in which the granting of rights occurs.
"(1C) For the purposes of subsection (1B), the requirements are:
(a) that, if the time (the 'test time') when the earlier of:
(i) the end of the term of the lease or period of the grant; and
(ii) the end of the period of 12 months mentioned in paragraph
(1)(d);
occurs is in a year of income after the one in which the leasing or the
granting of rights occurs, the related company is also an eligible public
company in relation to that later year of income; and
(b) that, at all times during the period ending at the test time, the
related company remains related to the person who owned the property and uses
the property wholly and exclusively both in Australia and for the purpose of
producing assessable income other than by leasing the property or otherwise
granting a right to another person to use the property.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 90
Interpretation
90. Section 82AQ of the Principal Act is amended by inserting in subsection
(1) the following definition:
"'related company', in relation to a company (the 'first company'), means
another company to which the first company is related within the meaning of
section 51AE (see subsections 51AE(16) to (19));".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 91
Object
91. The object of this Subdivision is to extend the availability of
development allowance and general investment allowance to expenditure on
eligible property that is allowable as a deduction under Division 10AAA of
Part III of the Principal Act (which deals with the transport of minerals and
quarry materials).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 92
Deduction under Subdivision to be in addition to certain other
deductions
92. Section 82AM of the Principal Act is amended by omitting from subsection
(2) ", 123B, 123BE,".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 93
Object
93. The object of this Division is to provide for HEC assessment debts under
the Higher Education Funding Act 1988 to be taken into account in the
calculation of provisional tax.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 94
Uplifted provisional tax amount
94. Section 221YCAA of the Principal Act is amended by inserting after
paragraph (2)(c) the following paragraph:
"(ca) the Higher Education Funding Act 1988, as that Act applies to
assessments in respect of the current year of income, had been in force and
applied to assessments in respect of the preceding year of income; and".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 95
Provisional tax on estimated income
95. Section 221YDA of the Principal Act is amended by adding at the end the
following subsection:
"(9) If this section applies for the purpose of determining the provisional
tax payable by a taxpayer in respect of income of a year of income, the
Commissioner may make such assumptions as the Commissioner thinks appropriate
as to any matters that are likely to affect:
(a) the liability of the taxpayer to pay, in respect of that year of income,
an amount in respect of an accumulated HEC debt under the Higher Education
Funding Act 1988; or
(b) the amount in respect of that debt that is properly payable by the
taxpayer.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 96
Application
96. The amendments made by this Division apply in relation to provisional
tax (including instalments) payable for the 1994-95 year of income and for all
later years of income.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 97
Object
97. The object of this Division is to exempt from tax all income derived by
certain State superannuation funds.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 98
Insertion of new section
98. After section 110C of the Principal Act the following section is
inserted:
Exemption of income attributable to constitutionally protected funds
"110CA. The assessable income of a life assurance company does not include
so much of any income derived by the company as is attributable to the
investment of premiums in respect of life assurance policies received from
constitutionally protected funds.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 99
Insertion of new section
99. After section 116FB of the Principal Act the following section is
inserted:
Exemption of income attributable to constitutionally protected funds
"116FC. The assessable income of a registered organisation does not include
so much of any income derived by the organisation as is attributable to the
investment of premiums in respect of life assurance policies received from
constitutionally protected funds.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 100
Interpretation
100. Section 267 of the Principal Act is amended by omitting from subsection
(1) the definition of "constitutionally protected fund" and substituting the
following definition:
"'constitutionally protected fund' means a fund that is declared by the
regulations to be a constitutionally protected fund;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 101
Part has effect subject to the Constitution
101. Section 271 of the Principal Act is amended by omitting subsection (2).
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 102
Insertion of new section
102. After section 271 of the Principal Act the following section is
inserted:
Constitutionally protected funds exempt from tax
"271A. Despite any other provision of this Part, income derived by a
constitutionally protected fund is exempt from tax.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 103
Insertion of new section
103. After section 297B of the Principal Act the following section is
inserted:
Exemption of income attributable to constitutionally protected funds
"297C. The assessable income of a PST does not include so much of any income
derived by the PST as is attributable to amounts received from
constitutionally protected funds.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 104
Application
104.(1) Subject to subsection (2) and section 105, the amendments made by
this Division apply to assessments in respect of income of the 1993-94 year of
income and in respect of income of all later years of income.
(2) If a complying superannuation fund that is a constitutionally protected
fund within the meaning of the Principal Act as amended by this Division has
not, before the commencement of this section, paid income tax on the
assumption that all income of the fund was exempt from income tax, the
amendments made by this Division apply to assessments in respect of income of
the fund of the year of income in which 1 July 1988 occurred and in respect of
income of the fund of all later years of income.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 105
Transitional
105.(1) In this section:
"relevant year of income" means the 1988-89 income year or any of the 4
following years of income.
(2) Subsection 159SM(2) of the Principal Act is taken not to have applied in
respect of a relevant year of income in relation to an applicable fund if the
fund was a constitutionally protected fund within the meaning of the Principal
Act that had, before the commencement of this section, paid income tax in
respect of income of that relevant year of income.
(3) The definition of "taxed superannuation fund" in subsection 27A(1) of
the Principal Act is taken to have had effect in respect of a relevant year of
income as if the reference in that definition to a constitutionally protected
fund did not include a reference to such a fund within the meaning of that Act
that had, before the commencement of this section, paid income tax in respect
of income of that relevant year of income.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 106
Object
106. The object of this Division is to allow the concessional depreciation
rate for property used for providing employee amenities to be available on a
wholly-owned company group basis.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 107
Depreciation
107. Section 54 of the Principal Act is amended by omitting from paragraph
(2)(c) all the words after "that date," and substituting the following:
"by a person (the 'primary person') carrying on a business for the purpose of
producing assessable income, where those fixtures and fittings are provided
principally for:
(i) the use, for personal purposes, of persons of either or both
of the following kinds:
(A) persons employed in that business by the primary person;
(B) persons employed in a business, carried on for the purpose
of producing assessable income, by a company that is related (within the
meaning of section 51AE) to the primary person; or
(ii) the care of children of any of those persons.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 108
Annual depreciation percentage
108. Section 55 of the Principal Act is amended by omitting subparagraph
(4)(b)(i) and substituting the following subparagraph:
"(i) for persons of either or both of the following kinds:
(A) persons employed by the taxpayer in a business carried on by
the taxpayer for the purpose of producing assessable income;
(B) persons employed by a company that is related (within the
meaning of section 51AE) to the taxpayer in a business carried on by the
company for the purpose of producing assessable income; or".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 109
Application
109. The amendments made by this Division apply to assessments in respect of
income of the 1993-94 year of income and of all later years of income.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 110
Object
110. The object of this Division is to amend the Principal Act in relation
to offshore banking units:
(a) to include the borrowing and lending of gold as an OB activity; and
(b) to limit guarantee-type activity that qualifies as an OB activity; and
(c) to make minor technical amendments.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 111
Meaning of "OB activity"
111. Section 121D of the Principal Act is amended:
(a) by adding at the end of subsection (2) the following word and
paragraphs:
(c) borrowing gold from an offshore person; or
(d) lending gold to an offshore person.";
(b) by inserting in paragraphs (3)(a) and (d) "in relation to activities
that are, or will be, conducted wholly outside Australia" after "person".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 112
Interpretation provisions relating to offshore banking units
112. Section 128AE of the Principal Act is amended by omitting from
paragraph (7)(b) ", except under subsection (6),".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 113
Division not to apply to interest payments on offshore borrowings by
offshore banking units
113. Section 128GB of the Principal Act is amended by adding at the end of
subsection (4) the following definition:
"'offshore loan' means a loan to an offshore person within the meaning of
section 121E.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 114
Application
114.(1) The amendments made by sections 111 and 112 apply to the doing of
things after the commencement of those sections.
(2) The amendment made by section 113 applies to the doing of things after
the commencement of that section.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 115
Object
115. The object of this Division is to allow deductions for gifts made to
The "Weary" Dunlop Statue Appeal and The Sandakan Memorials Trust Fund.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 116
Deduction for gifts, pensions etc.
116. Section 78 of the Principal Act is amended:
(a) by inserting after the entry relating to rural school hostels in the
index in subsection (3) the following entry:
(4)-Table 5, item 5.2.2";
(b) by inserting after the entry relating to the Victoria Conservation Trust
in the index in subsection (3) the following entry:
(4)-Table 5, item 5.2.3";
(c) by inserting in Table 5 in subection (4), after item 5.2.1, the
following items:
The Sandakan Memorials the gift must be made after
29 July 1993 and before
30 July 1995
The 'Weary' Dunlop the gift must be made after
15 July 1993 and before
16 July 1994"
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 117
Object
117. The object of this Division is to allow tax file number information to
be communicated for the purpose of administering the childcare rebate scheme.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 118
Officers to observe secrecy
118. Section 16 of the Principal Act is amended by inserting after paragraph
(4)(f) the following paragraph:
"(fa) the Health Insurance Commission, being information, for the purpose of
the administration of the Childcare Rebate Act 1993, as to whether a
registered carer (within the meaning of that Act) or an applicant for
registration as a registered carer has a tax file number;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 119
Application
119. The amendment made by section 118 applies to the communication of
information after 30 June 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 120
Object
120. The object of this Division is to correct outdated references to
certain provisions of the United States income tax law.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 121
Income of persons connected with certain projects of United States
Government
121. Section 23AA of the Principal Act is amended by omitting from
paragraphs 5(b) and 6(b) "1954" and substituting "1986".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 123
Object
123. The object of this Part is:
(a) to extend the transitional arrangements relating to the denial of
deductions for non-compulsory uniforms/wardrobes; and
(b) to exclude expenditure on non-compulsory occupation specific clothing
from provisions denying its deductibility.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 124
Principal Act
124. In this Division, "Principal Act" means the Taxation Laws Amendment Act
(No. 6) 1992*3*.
Taxation Laws Amendment Act (No. 6) 1992
No. 227, 1992.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 125
Repeal of section and substitution of new section
125. Section 5 of the Principal Act is repealed and the following section is
substituted:
Transitional-"no deduction" rule does not apply if expense incurred before 1
July 1995 and clothing designs approved by Commissioner
"5. The rule in subsection 51AL(1) of the Principal Act as amended by this
Act does not apply if:
(a) the expense is incurred before 1 July 1995; and
(b) before that day and whether before or after the expense is incurred, the
Commissioner, on application by the employer of an employee, gives the
employer a written statement to the effect that the Commissioner is of the
opinion that the designs of the set of one or more items of clothing to which
the expense relates were a 'corporate uniform' or a 'corporate wardrobe'
within the meaning of Taxation Ruling IT 2641; and
(c) if the application for the statement is made after 31 August 1993-sets
of one or more items of clothing having those designs were available for
purchase by employees of the employer on or before 31 August 1993.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 126
Principal Act
126. In this Division, "Principal Act" means the Income Tax Assessment Act
1936*2*.
Income Tax Assessment Act 1936
*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; Nos. 4, 5, 6,
48, 55, 100, 203, 208 and 216, 1991; Nos. 3, 35, 69, 70, 80, 81, 92, 98, 101,
118, 138, 167, 190, 191, 208, 223, 224, 227, 237 and 238, 1992; Nos. 7, 17,
18, 27 and 32, 1993; and No. 56, 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 127
No deduction to employee for expenditure incurred in connection with a
non-compulsory uniform/wardrobe
127. Section 51AL of the Principal Act is amended:
(a) by omitting from subsection (4) "protective clothing" and substituting
"occupation specific clothing or protective clothing";
(b) by inserting in subsection (26) the following definition:
"'occupation specific clothing', in relation to an employee, means clothing
that, disregarding any feature of the clothing that distinctively identifies
the employee as a person associated, directly or indirectly, with:
(a) the employer of the employee; or
(b) a group consisting of:
(i) the employer of the employee; and
(ii) one or more associates of the employer (within the meaning of
section 26AAB);
distinctively identifies the employee as a member of a particular profession,
trade, vocation, occupation or calling;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 128
Object
128. The object of this Part is to bring the fringe benefits tax treatment
of reimbursements of certain entertainment expense payments into line with the
treatment of direct payments of those entertainment expenses.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 129
Principal Act
129. In this Division, "Principal Act" means the Fringe Benefits Tax
Assessment Act 19861.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 130
Insertion of new section
130. After section 63 of the Principal Act the following section is
inserted:
Reduction of taxable value in respect of entertainment component of certain
fringe benefits
Taxable value reduced by entertainment percentage
"63A.(1) If:
(a) the recipient of an expense payment fringe benefit in relation to an
employer in relation to a year of tax is an employee of the employer; and
(b) a percentage of the recipients expenditure is in respect of the
provision of entertainment (within the meaning of subsection 51AE(3) of the
Income Tax Assessment Act 1936) other than to the recipient or an associate of
the recipient;
the amount that, apart from this subsection, would be the taxable value of the
expense payment fringe benefit in relation to the year of tax is reduced by
that percentage.
Avoidance of double reduction
"(2) If the taxable value of the expense payment fringe benefit has been
reduced under Division 5 by reason of a particular matter or thing, the
taxable value of the fringe benefit is not reduced under this section in
respect of the same matter or thing.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 131
Application
131. The amendment made by this Division applies to assessments of the
fringe benefits taxable amount of an employer of the year of tax beginning on
1 April 1994 and of all later years of tax.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 132
Principal Act
132. In this Division, "Principal Act" means the Income Tax Assessment Act
1936*2*.
Income Tax Assessment Act 1936
*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; Nos. 4, 5, 6,
48, 55, 100, 203, 208 and 216, 1991; Nos. 3, 35, 69, 70, 80, 81, 92, 98, 101,
118, 138, 167, 190, 191, 208, 223, 224, 227, 237 and 238, 1992; Nos. 7, 17,
18, 27 and 32, 1993; and No. 56, 1994.
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 133
Deductions not allowable for entertainment expenses
133. Section 51AE of the Principal Act is amended:
(a) by omitting from subsection (5AA) "The" and substituting "Subject to
subsection (5AB), the";
(b) by inserting after subsection (5AA) the following subsection:
"(5AB) For the purposes of subsection (5AA), if the taxable value of the
fringe benefit mentioned in that subsection is reduced by a percentage under
section 63A of the Fringe Benefits Tax Assessment Act 1986, that percentage of
the expenditure mentioned in subsection (5AA) is to be disregarded in applying
that subsection.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994
- SECT 134
Application
134.(1) The amendments made by this Division apply in relation to a fringe
benefit, if it is a fringe benefit in relation to the year of tax beginning on
1 April 1994 or a later year of tax.
(2) In this section:
"year of tax" has the same meaning as in the Fringe Benefits Tax Assessment
Act 1986.
NOTE ABOUT SECTION HEADINGS IN THE INCOME TAX ASSESSMENT ACT 1936
1. On the commencement of Division 4 of Part 3 of this Act:
(a) the heading to section 506 of the Income Tax Assessment Act 1936 is
altered by adding at the end "for interest in foreign life insurance company";
and
(b) the heading to section 509 of that Act is altered by adding at the end
"for interest in foreign general insurance company"; and
(c) the heading to section 511 of that Act is altered by adding at the end
"for interest in foreign real property company"; and
(d) the heading to section 523 of that Act is altered by adding at the end
"for interest in foreign mixed activity company".
The
Act No. 82, 1994 amended as indicated in the Tables below.
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
82, 1994 | 23 June 1994 | |||
75, 2010 | 28 June 2010 | Schedule 6 (item 47): 29 June 2010 | — |
am. = amended rep. = repealed rs. = repealed and substituted | |
Provision affected | How affected |
Div. 14 of Part 3....................... | rep. No. 75, 2010 |
S. 122...................................... | rep. No. 75, 2010 |
0
0
0