Taxation Laws Amendment Act (No. 3) 1987 (Cth)
This compilation was prepared on 16 September 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
TABLE OF PROVISIONS
PART I - PRELIMINARY
Section
Short title [
Commencement [
PART II - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Officers to observe secrecy
Exemptions
Rebate on dividends paid as part of dividend stripping operation
Rebate not allowable in certain circumstances
Insertion of new section:
46E. Dividends paid out of profits arising from the re-valuation of
certain assets
Deemed dividends
10. Money paid on shares for the purposes of certain exploration,
prospecting or mining
11. Gifts, pensions etc.
12. Interpretation
13. Modified application of Act in relation to certain unit trusts
14. Modified application of Act in relation to certain unit trusts
15. Repeal of sections 108 and 109 and substitution of new sections:
108. Loans etc. to shareholders and associates deemed to be dividends
109. Excessive payments to shareholders, directors and associates deemed
to be dividends
16. Rebates for dependants
17. Rebate in respect of certain pensions
18. Interpretation
19. Insertion of new section:
160APHA. Dividends paid as part of dividend stripping operation
20. Receipt of franked dividends
21. Extra amount to be included in assessable income where franked dividend
paid
22. Insertion of new section:
160ARDCA. Schemes by way of dividend stripping
23. What constitutes a disposal or acquisition
24. Capital gains and capital losses
25. Return of capital on investment in trust
26. Repeal of section and substitution of new section:
160ZYD. Time of acquisition of certain bonus units
27. Consideration in respect of acquisition
28. Insertion of new section:
160ZYEA. Cost base etc. of certain bonus units
29. Application
30. Repeal of section and substitution of new section:
160ZYG. Time of acquisition of bonus shares
31. Consideration in respect of acquisition
32. Insertion of new section and Division:
160ZYHA. Cost base etc. of certain bonus shares
160ZYHB. Application
160ZYHC. Cost base etc. of bonus shares
33. Liability to pay instalments of tax
34. Estimated income tax
35. Interpretation
36. Liability to pay provisional tax
37. Provisional tax for 1987-88 year
38. Application of amendments
39. Transitional - section 108 of the Principal Act
PART III - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953
41. Principal Act
42. Modification of limitation laws applying to the recovery of tax debts
43. Application of amendments
PART IV - AMENDMENT OF THE TAXATION LAWS AMENDMENT ACT (No. 2) 1987
44. Principal Act
45. Application and transitional provisions
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 1
Short
title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 3) 1987.
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 2
Commencement
[
2. This Act shall come into operation on the day on which it receives the
Royal Assent.
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 3
Principal Act
3. The Income Tax Assessment Act 1936*1* is in this Part referred to as the
Principal Act.
*1* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No.
5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69,
1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37,
1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48,
1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No.
43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65,
1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960;
Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46,
68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos.
19, 38, 76 and 85, 1967; Nos. 4, 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 and 168,
1985; No. 173, 1985 (as amended by No. 49, 1986); and Nos. 41, 46, 48, 49, 51,
52, 90, 109, 112 and 154, 1986; and Nos. 23, 58, 61 and 62, 1987.
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 4
Officers to observe secrecy
4. Section 16 of the Principal Act is amended:
by omitting from the definition of "Royal Commission" in subsection
(1), paragraphs (4) (k) and (4A) (c) and subparagraph (4A) (e) (i) "enquiry"
and substituting "inquiry"; and
by omitting from subparagraphs (4) (k) (i) and (ii) "enquire" and
substituting "inquire".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 5
Exemptions
5. Section 23 of the Principal Act is amended:
by omitting "or" from the end of subparagraph (z) (v);
by adding at the end of paragraph (z) the following word and
subparagraph:
income derived under the scheme known as the Veterans' Children
Education Scheme in respect of a period commencing at or after the time the
student attained the age of 16 years;";
by omitting "or" from the end of sub-subparagraph (zaa) (i) (B);
by omitting "and" from the end of subparagraph (zaa) (ii); and
by adding at the end of paragraph (zaa) the following word and
subparagraph:
income derived under:
(A) the scheme known as the Assistance for Isolated Children Scheme;
or
(B) the scheme known as the Veterans' Children Education Scheme;
in respect of a period commencing at or after the time the student attained
the age of 16 years; and".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 6
Rebate on dividends paid as part of dividend stripping operation
6. Section 46A of the Principal Act is amended:
by omitting from subsection (2) all the words after the end of
paragraph (2) (d) and substituting the following words and paragraphs:
"and any of the following paragraphs applies:
the property was acquired as trading stock;
the property was acquired in such circumstances that:
any profit that would arise from a disposal of the property
would, in whole or in part, be included in the assessable income of the
shareholder; or
any loss that would arise from a disposal of the property
would, in whole or in part, be allowable as a deduction to the shareholder;
the property was acquired on or after 20 September 1985.";
by inserting after subsection (10A) the following subsection:
"(10B) Subsections (11) and (12) do not apply to relevant property
acquired by a shareholder on or after 20 September 1985.";
by inserting after subsection (12) the following subsections:
"(12A) For the purposes of the application of subsection (8A) or
subsections (10) and (10A) in determining the deductions that have been
allowed or are allowable to a shareholder under this Act in respect of any
dividends included in the assessable income of the shareholder of a year of
income (in this subsection called the 'current year of income'), where
relevant property was acquired by the shareholder (otherwise than as trading
stock) on or after 20 September 1985, the following provisions have effect:
whichever of the following amounts is applicable shall be deemed to
have been a deduction allowable to the shareholder under this Act in relation
to the current year of income:
if the relevant property was disposed of by the shareholder
before the end of the current year of income:
(A) the cost base to the shareholder of the relevant property
ascertained as at the time of the disposal; or
(B) if subsection (11) or (12) would, apart from subsection (10B),
apply in relation to the relevant property in relation to the current year of
income-the expenditure referred to in the subsection concerned;
whichever is the greater;
in any other case:
(A) the cost base to the shareholder of the relevant property,
ascertained as at the end of the current year of income; or
(B) if subsection (11) or (12) would, apart from subsection (10B),
apply in relation to the relevant property in relation to the current year of
income-the expenditure referred to in the subsection concerned; whichever is
the greater;
whichever of the following amounts is applicable shall be deemed to
have been a deduction allowable to the shareholder under this Act in relation
to a subsequent year of income:
if the relevant property is disposed of by the shareholder during
the subsequent year of income:
(A) the cost base to the shareholder of the relevant property,
ascertained as at the time of the disposal; or
(B) if subsection (11) or (12) would, apart from subsection (10B),
apply in relation to the relevant property in relation to the subsequent year
of income or in relation to the subsequent year of income and one or more
earlier years of income-the expenditure, or the sum of the expenditures,
referred to in the subsection or subsections concerned; whichever is the
greater, reduced by the amount, or the sum of the amounts, applicable under
this subsection in respect of the relevant property in relation to one or more
earlier years of income;
in any other case:
(A) the cost base to the shareholder of the relevant property,
ascertained as at the end of the subsequent year of income; or
(B) if subsection (11) or (12) would, apart from subsection (10B),
apply in relation to the relevant property in relation to the subsequent year
of income or in relation to the subsequent year of income and one or more
earlier years of income-the expenditure, or the sum of the expenditures,
referred to in the subsection or subsections concerned; whichever is the
greater, reduced by the amount, or the sum of the amounts, applicable under
this subsection in respect of the relevant property in relation to one or more
earlier years of income.
"(12B) For the purposes of subsection (12A), where, by virtue of Division
17 of Part IIIA, that Part does not apply in respect of the disposal that
resulted in the acquisition of relevant property by a shareholder, the cost
base to the shareholder of the relevant property shall be determined as if the
shareholder had paid as consideration in respect of the acquisition of the
relevant property an amount equal to the amount that would have been the cost
base to the transferor concerned of the relevant property for the purposes of
that Part if that Part had applied in respect of the disposal of the relevant
property to the shareholder.
"(12C) For the purposes of subsections (12A) and (12B), 'cost base' and
'disposal' have the same respective meanings as they have in Part IIIA.";
by omitting from subsection (13C) "For" and substituting "Subject to
subsection (13CA), for"; and
by inserting after subsection (13C) the following subsection:
"(13CA) For the purposes of this section, the question whether property
was acquired on or after 20 September 1985 shall be determined in the same
manner as the question whether an asset was acquired on or after that date is
determined under Part IIIA.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 7
Rebate not allowable in certain circumstances
7. Section 46B of the Principal Act is amended:
by omitting paragraph (1) (c) and substituting the following
paragraph:
the associated property was acquired by the associated person:
as trading stock;
in such circumstances that:
(A) any profit that would arise on a disposal of the associated
property would, in whole or in part, be included in the assessable income of
the associated person; or
(B) any loss that would arise from a disposal of the associated
property would, in whole or in part, be allowable as a deduction to the
associated person; or
on or after 20 September 1985; and";
by omitting from subsection (4) "For" and substituting "Subject to
subsection (5A), for"; and
by inserting after subsection (5) the following subsection:
"(5A) For the purposes of this section, the question whether property was
acquired on or after 20 September 1985 shall be determined in the same manner
as the question whether an asset was acquired on or after that date is
determined under Part IIIA.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 8
8. After section 46D of the Principal Act the following section is inserted:
Dividends paid out of profits arising from the re-valuation of certain assets
"46E. (1) In this section:
'arrangement' means:
any agreement, arrangement, understanding, promise or undertaking,
whether express or implied, and whether or not enforceable, or intended to be
enforceable, by legal proceedings; and
any scheme, plan, proposal, action, course of action or course of
conduct, whether unilateral or otherwise;
'asset re-valuation dividend' means a dividend paid to a shareholder at a
particular time after 4 June 1987 in respect of a share in a company that was
a re-valued asset-holding company as at that time (whether the company was a
resident or a non-resident as at that time), to the extent to which the
dividend was paid by the company out of profits arising from an eligible
re-valuation of an asset;
'net worth', in relation to a company, means the total value of the assets
of the company as reduced by the total liabilities of the company.
"(2) For the purposes of the application of the definition of 'asset
re-valuation dividend' in subsection (1) to a dividend paid to a shareholder
at a particular time (in this subsection called the 'payment time') in respect
of a share in a company (in this subsection called the 'asset-holding
company'):
a re-valuation of an asset of the asset-holding company shall be taken
to have been an eligible re-valuation if, and only if:
at a particular time (in this subsection called the 'disposal
time'), the shareholder or any other person disposed of:
(A) the share;
(B) another share in the asset-holding company;
(C) a share in a company other than the asset-holding company, being a
company that was related to the asset-holding company immediately before the
disposal time; or
(D) a beneficial interest in a trust estate that was related to the
asset-holding company immediately before the disposal time;
any of the following sub-subparagraphs apply:
(A) the disposal time was after the time of the re-valuation of the
asset;
(B) the re-valuation of the asset occurred at the disposal time;
(C) the disposal time was before the time of the re-valuation of the
asset and the asset was re-valued under or as the result of an arrangement
entered into at or before the disposal time;
if sub-subparagraph (ii) (A) applies-the asset-holding company did
not dispose of the asset at or before the disposal time;
if sub-subparagraph (ii) (C) applies-the asset-holding company owned
the asset at the disposal time and continued to own the asset until the
re-valuation of the asset; and
had the asset-holding company disposed of the asset at the disposal
time, either of the following sub-subparagraphs would have applied:
(A) 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
asset-holding company or 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 asset-holding company;
(B) the asset was acquired by the asset-holding company on or after 20
September 1985 and Part IIIA would, or would but for Division 17 of that Part,
have applied in respect of the disposal of the asset; and
a company shall be taken to have been a re-valued asset-holding company
as at the payment time if, and only if:
the company was an unlisted company as at the payment time; and
if sub-subparagraph (a) (ii) (A) or (B) applies-the total value of
the re-valued assets of the company, as at the disposal time, was not less
than 75% of the net worth of the company as at the disposal time; and
if sub-subparagraph (a) (ii) (C) applies-the total value of the
re-valued assets of the company, immediately after the re-valuation, was not
less than 75% of the net worth of the company as at the disposal time.
"(3) For the purposes of this section:
a company shall be taken to have been related to another company at a
particular time if, and only if, at that time, a reduction in the value of any
shares in the other company could reasonably be expected to have resulted in a
reduction in the value of any shares in the first-mentioned company; and
a trust estate shall be taken to have been related to a company at a
particular time if, and only if, at that time, a reduction in the value of any
shares in the company could reasonably be expected to have resulted in a
reduction in the value of any of the property of the trust estate.
"(4) For the purposes of subparagraph (2) (a) (i) and subsection (3):
a reference to a share includes a reference to:
an interest in a share; and
a right or option (including a contingent right or option) to
acquire a share or an interest in a share; and
a reference to a beneficial interest in a trust estate includes a
reference to a right or option (including a contingent right or option) to
acquire a beneficial interest in a trust estate.
"(5) For the purposes of this section, the question whether an asset was
acquired on or after 20 September 1985 shall be determined in the same manner
as the question whether an asset was acquired on or after that date is
determined under Part IIIA.
"(6) For the purposes of this section, an asset of a company shall be taken
to have been a re-valued asset of the company if, and only if:
after 4 June 1987, the company paid a dividend to a shareholder wholly
or partly out of profits arising from the re-valuation of the asset; and
had the company disposed of the asset immediately after the
re-valuation, either of the following subparagraphs would have applied:
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 or 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;
the asset was acquired by the company on or after
20 September 1985 and Part IIIA would, or would but for Division 17 of that
Part, have applied in respect of the disposal of the asset.
"(7) In calculating the net worth of a company for the purposes of this
section, the Commissioner shall, if satisfied that liabilities were discharged
or released, or assets acquired, for the purpose, or for purposes that
included the purpose, of ensuring that this section would not apply in
relation to a shareholder in the company, disregard the discharge or release
of those liabilities or the values of those assets, as the case may be.
"(8) For the purposes of this section, a company shall be taken to have been
an unlisted company as at a particular time unless, as at that time, the
company:
had been admitted to the official list of a securities exchange within
the meaning of the Securities Industry Act 1980 or a law of a State, of a
Territory or of, or of a part of, a foreign country corresponding to that Act;
and
had not been removed from that official list.
"(9) A reference in this section to the carrying out of an arrangement by a
person includes a reference to the carrying out of an arrangement by a person
together with another person or other persons.
"(10) A reference in this section to the entering into or carrying out of an
arrangement includes a reference to the entering into or carrying out of an
arrangement before the commencement of this section.
"(11) A reference in this section to the obtaining by a taxpayer of a
capital tax benefit in connection with an arrangement is a reference to:
an amount not being included in the assessable income of the taxpayer
of a year of income by way of profit arising on the disposal of an asset where
that amount would have been included, or might reasonably be expected to have
been included, in the assessable income of the taxpayer of that year of income
if the arrangement had not been entered into or carried out; or
an amount of a capital gain, within the meaning of Part IIIA, not
accruing to the taxpayer during a year of income where that amount would have
accrued, or might reasonably be expected to have accrued, to the taxpayer
during the year of income if the arrangement had not been entered into or
carried out.
"(12) A shareholder is not entitled, and shall be deemed never to have been
entitled, to a rebate under section 46 or 46A in respect of an asset
re-valuation dividend if the dividend was paid under or as the result of an
arrangement where:
a taxpayer, being a company (whether or not the shareholder), has
obtained a capital tax benefit in connection with the arrangement; and
having regard to:
the manner in which the arrangement was entered into or carried out;
the form and substance of the arrangement;
the time at which the arrangement was entered into and the length
of the period in which the arrangement was carried out;
the result in relation to the operation of this Act that, but for
this section, would be achieved by the arrangement;
any change in the financial position of the company that has
resulted, will result, or may reasonably be expected to result, from the
arrangement;
any change in the financial position of any person who has or has
had any connection (whether of a business, family or other nature) with the
company, being a change that has resulted, will result, or might reasonably be
expected to result from the arrangement;
any other consequence for the company, or for any person referred to
in subparagraph (vi), of the arrangement having been entered into or carried
out; and
the nature of any connection (whether of a business, family or
other nature) between the company and any person referred to in subparagraph
(vi); it would be concluded that the person, or one of the persons, who
entered into or carried out the arrangement or any part of the arrangement did
so for the purpose, or for purposes that included the purpose, of enabling the
company to obtain a capital tax benefit in connection with the arrangement or
of enabling the company and another taxpayer or other taxpayers each to obtain
a capital tax benefit in connection with the arrangement (whether or not that
person who entered into or carried out the arrangement or any part of the
arrangement is the company or is the other taxpayer or one of the other
taxpayers).
"(13) A reference in subsection (12) to an entitlement to a rebate includes
a reference to a rebate being allowed or allowable, as the case requires.
"(14) Nothing in section 170 prevents the amendment of an assessment at any
time for the purpose of giving effect to this section.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 9
Deemed dividends
9. Section 50L of the Principal Act is amended:
by omitting from subsection (2) "of a payment or the distribution of
assets" and substituting "or crediting of a payment or the transfer of
property";
by omitting from subsection (2) "or distribution" and substituting ",
credit or transfer";
by inserting in subsection (3) ", or property was transferred," after
"credited" (first occurring); and
by adding at the end of subsection (3) ", or the property was
transferred, as the case may be".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 10
Money paid on shares for the purposes of certain exploration, prospecting or
mining
10. Section 77D of the Principal Act is amended by omitting from paragraph
(18) (b) ", subsection 44 (2C)".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 11
Gifts, pensions etc.
11. Section 78 of the Principal Act is amended:
by omitting subparagraph (1) (a) (lxxiv) and substituting the following
subparagraph:
Greening Australia Limited;";
by omitting subparagraph (1) (a) (lxxvii) and substituting the
following subparagraphs:
the Scout Association of Australia or an institution that is
known as a State or Territory branch of the Scout Association of Australia;
the Girl Guides Association of Australia Incorporated or an
institution that is known as a State or Territory branch of the Girl Guides
Association of Australia;";
by inserting after subparagraph (1) (a) (lxxxvii) the following
subparagraphs:
the Lionel Murphy Foundation;
the Australian-Hellenic Memorial Trust Fund;"; and
by inserting after subsection (6AF) the following subsection:
"(6AG) A gift to the fund specified in subparagraph (1) (a) (lxxxix) is
not an allowable deduction under this section unless the gift was or is made
after 31 March 1987 and before 1 July 1989.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 12
Interpretation
12. Section 82AAS of the Principal Act is amended:
by inserting in subsection (1) the following definitions in their
respective appropriate alphabetical positions (determined on a
letter-by-letter basis):
" 'Commission's superannuation principles' means:
the principles relating to the making or ratification of
superannuation agreements set out in a decision given on 26 June 1986 by the
Australian Conciliation and Arbitration Commission in a National Wage Case; or
if those principles are varied by:
the Australian Conciliation and Arbitration Commission; or
the Australian Industrial Relations Commission;
in a subsequent National Wage Case-those principles as so varied;
'eligible superannuation fund' means a superannuation fund:
the income of which of the year of income is exempt from tax by
virtue of paragraph 23 (jaa) or (ja) or would, but for Division 9C, be exempt
from tax by virtue of the paragraph concerned; or
which is a fund to which section 23F or 23FB applies in relation
to the year of income;
'industrial tribunal' means an industrial tribunal constituted under a
law of the Commonwealth or of a State or Territory;
'superannuation agreement' means an agreement, award, determination or
order that requires the making of superannuation contributions in relation to
persons engaged in a particular industry;
'superannuation agreement contributions', in relation to a person (in
this definition called the 'eligible person'), means superannuation
contributions made in relation to the eligible person under:
a superannuation agreement that has been made or ratified by an
industrial tribunal in accordance with the Commission's superannuation
principles; or
an agreement that:
is a superannuation agreement that has not been ratified by
an industrial tribunal; and
was entered into in connection with and, in the opinion of
the Commissioner, is identical or nearly identical to, another superannuation
agreement that:
(A) has been made or ratified by an industrial tribunal in
accordance with the Commission's superannuation principles; and
(B) relates to persons engaged in the same industry as the
industry in which the eligible person is engaged;
'superannuation contributions', in relation to a person, means
contributions made (otherwise than by the person) to an eligible
superannuation fund or funds to obtain superannuation benefits for the person
or, in the event of the death of the person, for the dependants of the
person;"; and
by inserting after subsection (2) the following subsection:
"(2A) A reference in subsection (2) to superannuation benefits does not
include a reference to superannuation benefits to the extent to which they
would be attributable to, or paid out of money representing:
superannuation agreement contributions made in relation to the
relevant person referred to in that subsection; or
income or accretions arising from such contributions.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 13
Modified application of Act in relation to certain unit trusts
13. Section 102L of the Principal Act is amended:
by omitting from subsection (2) "and 46C and section 46D" and
substituting ", 46C, 46D and 46E";
by omitting from subsection (4) "inserted after subsection (1)" and
substituting "added at the end"; and
by omitting from subsection (4) "Subject to subsection (2), for" and
substituting "For".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 14
Modified application of Act in relation to certain unit trusts
14. Section 102T of the Principal Act is amended:
by omitting from subsection (2) "and 46C and section 46D" and
substituting ", 46C, 46D and 46E";
by omitting from subsection (5) "inserted after subsection (1)" and
substituting "added at the end"; and
by omitting from subsection (5) "Subject to subsection (2), for" and
substituting "For".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 15
15. Sections 108 and 109 of the Principal Act are repealed and the following
sections are substituted:
Loans etc. to shareholders and associates deemed to be dividends
"108. (1) If a private company:
pays an amount to an associated person by way of an advance or loan; or
pays or credits an amount on behalf of, or for the individual benefit
of, an associated person; so much (if any) of the amount paid or credited as,
in the opinion of the Commissioner, represents a distribution of profits
shall, for the purposes of this Act other than Division 11A of Part III and
Division 4 of Part VI, be deemed to be a dividend paid by the company:
to the associated person as a shareholder in the company;
out of profits derived by the company; and
on the last day of the year of income of the company in which the
payment or credit referred to in paragraph (a) or (b) is made.
"(2) If:
an amount is deemed by subsection (1) to be a dividend paid by a
company; and
the company subsequently sets off the whole or a part of a dividend (in
this subsection called the 'subsequent dividend') distributed by it in
satisfaction in whole or in part of the amount; so much of the amount of the
subsequent dividend as is set off as does not exceed the unfranked part of the
subsequent dividend:
shall be deemed not to be a dividend for the purposes of this Act other
than Part IIIAA; and
shall not be taken to be exempt income for the purposes of sections
160APP and 160AQT only because of this subsection.
"(3) For the purposes of this section:
a transfer of property shall be deemed to be the payment of an amount
property;
a reference to the unfranked part of a dividend is a reference to so
much of the dividend as has not been franked in accordance with section
160AQF; and
a reference to an associated person, in relation to a company, is a
reference to:
a shareholder in the company; or
a person who is an associate, within the meaning of section 26AAB,
of a shareholder in the company.
"(4) For the purpose of determining whether a person is an associated person
in relation to a company within the meaning of this section, the definition of
'relative' in subsection 6 (1) and the definition of 'associate' in subsection
26AAB (14) apply as if a reference in the definition concerned to the spouse
of a person included a reference to another person who, although not legally
married to the person, lives with the person on a bona fide domestic basis as
the husband or wife of the person.
Excessive payments to shareholders, directors and associates deemed to be
dividends
"109. (1) If a private company pays or credits to an associated person an
amount (in this subsection called the 'excessive amount') that is, or purports
to be:
remuneration for services rendered by the associated person; or
an allowance, gratuity or compensation in consequence of the retirement
of the associated person from an office or employment held by the associated
person in the company, or upon the termination of any such office or
employment; so much (if any) of the excessive amount as exceeds an amount
that, in the opinion of the Commissioner, is reasonable:
is not an allowable deduction; and
shall, for the purposes of this Act other than Division 11A of Part III
and Division 4 of Part VI, be deemed to be a dividend paid by the company:
to the associated person as a shareholder in the company;
out of profits derived by the company; and
on the last day of the year of income of the company in which the
excessive payment or credit is made.
"(2) For the purposes of this section:
a transfer of property shall be deemed to be the payment of an amount
equal to the value of the property; and
a reference to an associated person, in relation to a company, is a
reference to:
a person who is, or has been, a shareholder in, or director of, the
company; or
a person who is an associate, within the meaning of section 26AAB,
of a person who is, or has been, a shareholder in, or director of, the
company.
"(3) For the purpose of determining whether a person is an associated person
in relation to a company within the meaning of this section, the definition of
'relative' in subsection 6 (1) and the definition of 'associate' in subsection
26AAB (14) apply as if a reference in the definition concerned to the spouse
of a person included a reference to another person who, although not legally
married to the person, lives with the person on a bona fide domestic basis as
the husband or wife of the person.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 16
Rebates for dependants
16. Section 159J of the Principal Act is amended:
by inserting "subject to paragraph (c)," before "does not" in paragraph
(a) of the definition of "separate net income" in subsection (6);
by omitting "and" from the end of paragraph (a) of the definition of
"separate net income" in subsection (6); and
by adding at the end of the definition of "separate net income" in
subsection (6) the following word and paragraph:
"and (c) includes amounts paid:
under the scheme known as the Assistance for Isolated Children
Scheme in respect of a period commencing at or after the time the dependant
attained the age of 16 years; and
for the purpose of maintenance or accommodation of the
dependant
in connection with the education of the dependant;".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 17
Rebate in respect of certain pensions
17. Section 160AAA of the Principal Act is amended:
by adding at the end of paragraph (1) (a) "(other than Part VII)";
by inserting before paragraph (2) (a) the following paragraph:
income derived under:
the scheme known as the Assistance for Isolated Children Scheme;
or
the scheme known as the Veterans' Children Education Scheme;";
by omitting from subparagraphs (2) (d) (i) and (ii) "$9,436-$280" and
substituting "$10,350-$430"; and
by omitting from subparagraphs (2) (e) (i) and (ii) "$5,669-$190" and
substituting "$5,850-$180".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 18
Interpretation
18. Section 160APA of the Principal Act is amended by inserting the
following definition in its appropriate alphabetical position (determined on a
letter-by-letter basis):
" 'scheme' has the same meaning as in section 177A;".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 19
19. After section 160APH of the Principal Act the following section is
inserted in Division 1 of Part IIIAA:
Dividends paid as part of dividend stripping operation
"160APHA. For the purposes of this Part, a dividend paid to a shareholder in
a company shall be taken to be a dividend paid as part of a dividend stripping
operation if, and only if, the payment of the dividend arose out of, or was
made in the course of, a scheme that:
was by way of or in the nature of dividend stripping; or
had substantially the effect of a scheme by way of or in the nature of
dividend stripping.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 20
Receipt of franked dividends
20. Section 160APP of the Principal Act is amended by adding at the end the
following subsection:
"(6) No franking credit arises if the dividend was paid as part of a
dividend stripping operation.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 21
Extra amount to be included in assessable income where franked dividend paid
21. Section 160AQT of the Principal Act is amended:
by inserting in subparagraph (1) (b) (i) "a" before "resident";
by omitting from paragraph (1) (b) "and";
by adding at the end of paragraph (1) (c) "and"; and
by inserting after paragraph (1) (c) the following paragraph:
the dividend was not paid as part of a dividend stripping
operation;".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 22
22. After section 160ARDC of the Principal Act the following section is
inserted in Subdivision A of Division 7A of Part IIIAA:
Schemes by way of dividend stripping
"160ARDCA. In applying section 160APHA to a corporate trust dividend, a
scheme shall be taken to be by way of or in the nature of dividend stripping,
or to have had substantially the effect of a scheme by way of or in the nature
of dividend stripping if, had the corporate trust dividend been a dividend
paid by a company, the scheme would have been a scheme by way of or in the
nature of dividend stripping, or, as the case requires, would have had
substantially the effect of a scheme by way of or in the nature of dividend
stripping.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 23
What constitutes a disposal or acquisition
23. Section 160M of the Principal Act is amended by inserting after
subsection (11) the following subsections:
"(11A) Subsection (8) or (11) does not deem a taxpayer to have disposed of a
particular asset at a time (in this subsection called the 'relevant time')
when the taxpayer ceased to be a resident or a partnership ceased to be a
resident partnership, as the case may be, if:
the taxpayer is a natural person;
during the period of 10 years immediately before the relevant time, the
taxpayer was a resident for a total period of less than 5 years; and
the asset:
was owned by the taxpayer immediately before the occasion (or last
occasion, as the case requires) on which the taxpayer became a resident before
the relevant time; or
was acquired by the taxpayer as a beneficiary of the estate of a
deceased person, or as a survivor of a joint tenancy, and was so acquired
after the occasion (or last occasion, as the case requires) on which the
taxpayer became a resident before the relevant time.
"(11B) Where:
but for this subsection, a taxpayer would be deemed by subsection (8)
or (11) to have disposed of a particular asset at a time (in this subsection
called the 'relevant time') when the taxpayer ceased to be a resident or a
partnership ceased to be a resident partnership, as the case may be;
the taxpayer is a natural person; and
the taxpayer has elected that this subsection apply in relation to all
assets of the taxpayer to which subsection (8) or (11), as the case may be,
would apply at the relevant time; the following paragraphs apply:
subsection (8) or (11) does not deem the taxpayer to have disposed of
the asset at the relevant time;
the asset shall be taken to be a taxable Australian asset until
immediately after whichever of the following first occurs:
the taxpayer disposes of the asset;
the taxpayer becomes a resident.
"(11C) An election for the purposes of subsection (11B) shall be made in
writing on or before the date of lodgment of the return of income of the
taxpayer for the year of income in which the relevant time referred to in that
subsection occurred, or within such further time as the Commissioner allows.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 24
Capital gains and capital losses
24. Section 160Z of the Principal Act is amended by omitting from subsection
(5) "or (3)" (last occurring).
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 25
Return of capital on investment in trust
25. Section 160ZM of the Principal Act is amended by omitting subsections
(2) and (3) and substituting the following subsections:
"(2) Subject to subsection (4), the taxpayer shall be deemed to have
disposed of the interest or units at the time of the payment for a
consideration equal to the amount of the indexed cost base to the taxpayer in
respect of the interest or units, and to have immediately re-acquired the
interest or units:
for the purpose of ascertaining whether a capital gain accrued to the
taxpayer in the event of a subsequent disposal of the interest or units by the
taxpayer:
if, had the taxpayer disposed of the interest or units at the time
of the payment, the indexed cost base to the taxpayer in respect of the
interest or units would have exceeded the amount of the adjusted payment-for a
consideration equal to the excess; or
if, had the taxpayer disposed of the interest or units at the time
of the payment, the indexed cost base to the taxpayer in respect of the
interest or units would not have exceeded the amount of the adjusted
payment-without having paid or given any consideration in respect of the
re-acquisition; or
(b) for the purpose of ascertaining whether the taxpayer incurred a capital
loss in the event of a subsequent disposal of the interest or units by the
taxpayer:
if, had the taxpayer disposed of the interest or units at the time
of the payment, the reduced cost base to the taxpayer in respect of the
interest or units would have exceeded the amount of the payment-for a
consideration equal to the excess; or
if, had the taxpayer disposed of the interest or units at the time
of the payment, the reduced cost base to the taxpayer in respect of the
interest or units would not have exceeded the amount of the payment-without
having paid or given any consideration in respect of the re-acquisition.
"(3) Subject to subsection (4), where, if the taxpayer had disposed of the
interest or units at the time of the payment, the amount of the adjusted
payment would have exceeded the indexed cost base to the taxpayer in respect
of the interest or units, a capital gain equal to the excess shall be deemed
to have accrued to the taxpayer at the time of the payment.
"(3A) In subsections (2) and (3), 'adjusted payment' means so much of the
amount of the payment as is not attributable to a deduction allowed under
Division 10C or 10D of Part III.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 26
26. Section 160ZYD of the Principal Act is repealed and the following
section is substituted:
Time of acquisition of certain bonus units
"160ZYD. Where no part of the relevant amount was included in the assessable
income of the taxpayer of any year of income under a provision of this Act
other than this Part, the bonus units shall be deemed, for the purposes of
this Part, to have been acquired by the taxpayer at the time applicable under
the following paragraphs:
if:
the bonus units were issued after 1 o'clock in the afternoon, by
legal time in the Australian Capital Territory, on 10 December 1986;
the original units were acquired by the taxpayer before 20 September
1985; and
after the time referred to in subparagraph (i), money has been paid
to the trustee of the unit trust in respect of the bonus units, being money
that the taxpayer paid or was required to pay;
the time when the liability arose to pay the money that was first paid as
mentioned in subparagraph (iii); or
in any other case-the time when the taxpayer acquired the original
units.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 27
Consideration in respect of acquisition
27. Section 160ZYE of the Principal Act is amended by omitting from
subsection (1) "section 160ZYD" and substituting "paragraph 160ZYD (b)".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 28
28. After section 160ZYE of the Principal Act the following section is
inserted in Division 7 of Part IIIA:
Cost base etc. of certain bonus units
"160ZYEA. Where the time of acquisition of the bonus units by the taxpayer
is determined under paragraph 160ZYD (a), the cost base, indexed cost base and
reduced cost base to the taxpayer of the bonus units shall be determined as if
the amount of any consideration in respect of the acquisition of the bonus
units were increased by the market value of the bonus units immediately before
that time (not including any part of that market value that is attributable to
amounts that, apart from this section, would be taken into account in
determining that cost base, indexed cost base or reduced cost base, as the
case may be).".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 29
Application
29. Section 160ZYF of the Principal Act is amended:
by omitting from paragraph (a) "and"; and
by inserting after paragraph (b) the following word and paragraph:
Division 8A does not apply to the bonus shares;".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 30
30. Section 160ZYG of the Principal Act is repealed and the following
section is substituted:
Time of acquisition of bonus shares
"160ZYG. The bonus shares shall be deemed, for the purposes of this Part, to
have been acquired by the shareholder at the time applicable under the
following paragraphs:
if:
the bonus shares were issued after 1 o'clock in the afternoon, by
legal time in the Australian Capital Territory, on 10 December 1986;
the original shares were acquired by the shareholder before 20
September 1985; and
after the time referred to in subparagraph (i), money has been paid
to the company in respect of the bonus shares, being money that the
shareholder paid or was required to pay;
in any other case-the time when the shareholder acquired the original
shares.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 31
Consideration in respect of acquisition
31. Section 160ZYH of the Principal Act is amended by inserting before
subsection (1) the following subsection:
"(1A) This section does not apply in respect of the bonus shares if section
160ZYHA applies in respect of the bonus shares.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 32
32. After section 160ZYH of the Principal Act the following section and
Division are inserted:
Cost base etc. of certain bonus shares
"160ZYHA. Where the time of acquisition of the bonus shares by the
shareholder is determined under paragraph 160ZYG (a), the cost base, indexed
cost base and reduced cost base to the shareholder of the bonus shares shall
be determined as if the amount of any consideration in respect of the
acquisition of the bonus shares were increased by the market value of the
bonus shares immediately before that time (not including any part of that
market value that is attributable to amounts that, apart from this section,
would be taken into account in determining that cost base, indexed cost base
or reduced cost base, as the case may be).
"Division 8A-Bonus Shares Issued after 30 June 1987 where Paid-up Value is a
Dividend
Application
"160ZYHB. Where:
a person (in this Division called the 'shareholder') holds shares in a
company;
after 30 June 1987, the company issues other shares (in this Division
called the 'bonus shares') to the shareholder in the circumstances mentioned
in subsection 6BA (1); and
some or all of the paid-up value of the bonus shares is a dividend;
this Division has effect for the purposes of this Part.
Cost base etc. of bonus shares
"160ZYHC. The cost base, indexed cost base and reduced cost base to the
shareholder of the bonus shares shall be determined as if the amount of any
consideration in respect of the acquisition of the bonus shares were increased
by so much of the paid-up value of the bonus shares as is a dividend.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 33
Liability to pay instalments of tax
33. Section 221AC of the Principal Act is amended:
by omitting from subsection (1) "Subject to subsection (2), for" and
substituting "For"; and
by omitting subsection (2).
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 34
Estimated income tax
34. Section 221AG of the Principal Act is amended by omitting from
subparagraph (8) (a) (i) "section 45,".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 35
Interpretation
35. Section 221A of the Principal Act is amended:
by omitting "or" from the end of paragraph (k) of the definition of
"salary or wages" in subsection (1); and
by inserting after paragraph (m) of the definition of "salary or wages"
in subsection (1) the following word and paragraph:
"or (n) under:
(i) the scheme known as the Assistance for Isolated Children Scheme;
or
(ii) the scheme known as the Veterans' Children Education Scheme;
in respect of a period commencing at or after the time the student concerned
attained the age of 16 years;".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 36
Liability to provisional tax
36. Section 221YB of the Principal Act is amended:
by omitting from subsection (2) "Subject to subsection (3), provisional
tax" and substituting "Provisional tax"; and
by omitting subsection (3).
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 37
Provisional tax for 1987-88 year
37. (1) For the purposes of the application of subsection 221YC (1) of the
Income Tax Assessment Act 1936 (in this section called the "Assessment Act")
in ascertaining the amount of provisional tax payable by a taxpayer in respect
of the year of income that commenced on 1 July 1987 (in this section called
the "current year of income"), being a taxpayer who would, apart from this
section and subsection 221YBA (5) of the Assessment Act, be liable to pay
provisional tax calculated in accordance with subsection 221YC (1) or (1A) of
the Assessment Act in respect of the current year of income:
if paragraph 221YC (1) (a) of the Assessment Act applies to the
taxpayer-the amount of provisional tax payable by the taxpayer in respect of
the current year of income by virtue of that paragraph is the amount
ascertained by deducting from the amount of income tax that would have been
assessed in respect of the amount that would have been the taxable income of
the taxpayer of the year of income that commenced on 1 July 1986 (in this
section called the "preceding year of income") if:
the taxable income of the taxpayer of the preceding year of income
had, except for the purpose of determining the notional income for the purpose
of section 59AB or 86 of the Assessment Act, been increased by 11%;
where, for the purposes of Division 6AA of Part III of the
Assessment Act:
(A) in the case of a taxpayer to whom Subdivision C of Division 2 of
Part II of the Income Tax Rates Act 1986 applied-the taxpayer's eligible
taxable income of the preceding year of income exceeded $416; or
(B) in the case of a taxpayer to whom Subdivision D of Division 2 of
Part II of the Income Tax Rates Act 1986 applied-the taxpayer had an eligible
taxable income of the preceding year of income;
that eligible taxable income had been increased by 11%;
for the purposes of Division 16A of Part III of the Assessment
Act (other than the purpose of calculating the average eligible taxable income
of the taxpayer of the current year of income), the eligible taxable income of
the taxpayer of the preceding year of income had been increased by 11%;
for the purposes of section 156 of the Assessment Act, the deemed
taxable income from primary production of the taxpayer of the preceding year
of income had been increased by 11%;
the Income Tax Rates Act 1986, other than Division 4 of Part II, 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;
the Medicare Levy Act 1986, 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;
where Division 16 of Part III of the Assessment Act applied in the
taxpayer's assessment in respect of the preceding year of income-that Division
had applied as if the conditions set out in subparagraphs (i) to (v)
(inclusive) were applicable for the purposes of making that assessment other
than for the purpose of determining the average income of the taxpayer for the
purposes of the application of that Division;
the taxpayer had not been entitled to any rebate (other than a
rebate under section 156 of the Assessment Act applicable in relation to the
taxpayer in accordance with subparagraph (vi)) or credit in the taxpayer's
assessment; and
the assessable income of the taxpayer of the preceding year of
income had not included any net capital gain within the meaning of Part IIIA
of the Assessment Act; the sum of:
the rebates (other than a rebate under section 156 or 160ACD of the
Assessment Act) and credits to which the taxpayer was entitled in the
taxpayer's assessment in respect of income of the preceding year of income; and
where the taxpayer was entitled to a rebate under section 160ACD of
the Assessment Act in the taxpayer's assessment in respect of the income of
the preceding year of income-one-half of the amount of that rebate; and
if paragraph 221YC (1) (b) of the Assessment Act applies to the
taxpayer-the amount of provisional tax payable by the taxpayer in respect of
the current year of income by virtue of that paragraph is:
in a case where:
(A) paragraph 221YC (1) (a) of the Assessment Act would apply to the
taxpayer in relation to the current year of income but for subsection 221YA
(5) of that Act; and
(B) the taxpayer is a taxpayer to whom paragraph 221YA (5) (a) of the
Assessment Act applies, but paragraph 221YA (5) (b) of that Act does not
apply, in relation to the current year of income; the amount that would be
payable by the taxpayer under paragraph 221YC (1) (a) of the Assessment Act
(as affected by paragraph (a) of this subsection) if subsection 221YA (5) were
not included in that Act and Division 16C of Part III of that Act were not
applicable in relation to the preceding year of income;
in the case where:
(A) paragraph 221YC (1) (a) of the Assessment Act would apply to the
taxpayer in relation to the current year of income but for subsection 221YA
(5) of that Act; and
(B) the taxpayer is a taxpayer to whom paragraph 221YA (5) (b) of the
Assessment Act applies, but paragraph 221YA (5) (a) of that Act does not
apply, in relation to the current year of income; the amount that would be
payable by the taxpayer under paragraph 221YC (1) (a) of the Assessment Act
(as affected by paragraph (a) of this subsection) if subsection 221YA (5) were
not included in that Act and the taxable income of the taxpayer of the
preceding year of income had been increased by the sum of the deductions
allowed or allowable to the taxpayer under sections 77F, 124ZAF and 124ZAFA of
that Act in the taxpayer's assessment in respect of the preceding year of
income;
in the case where:
(A) paragraph 221YC (1) (a) of the Assessment Act would apply to the
taxpayer in relation to the current year of income but for subsection 221YA
(5) of that Act; and
(B) the taxpayer is a taxpayer to whom paragraphs 221YA (5) (a) and (b)
of the Assessment Act apply in relation to the current year of income; the
amount that would be payable by the taxpayer under paragraph 221YC (1) (a) of
the Assessment Act (as affected by paragraph (a) of this subsection) if:
(C) subsection 221YA (5) were not included in the Assessment Act;
(D) Division 16C of Part III of the Assessment Act were not applicable
in relation to the preceding year of income; and
(E) the amount that, but for this sub-subparagraph, would have been the
taxable income of the taxpayer of the preceding year of income had been
increased by the sum of the deductions allowed or allowable to the taxpayer
under sections 77F, 124ZAF and 124ZAFA of the Assessment Act in the taxpayer's
assessment in respect of the preceding year of income; and
in any other case-the amount that would be payable by the taxpayer
under paragraph (a) of this subsection if the provisions of that paragraph
applied to the taxpayer in relation to the taxpayer's income of the current
year of income and:
(A) the taxable income of the taxpayer of the preceding year of income
had been equal to the amount that the Commissioner estimates would have been
the provisional income of the taxpayer if Division 16C of Part III of the
Assessment Act were not applicable in relation to the preceding year of income
increased by the sum of the deductions (if any) allowed or allowable to the
taxpayer under sections 77F, 124ZAF and 124ZAFA of the Assessment Act in the
taxpayer's assessment in respect of the preceding year of income;
(B) for the purposes of Divison 16 of Part III of the Assessment Act,
the deemed taxable income from primary production of the taxpayer of the
preceding year of income were such amount (if any) as the Commissioner
determines;
(C) for the purposes of Division 6AA of Part III of the Assessment Act,
the amount of the eligible taxable income of the taxpayer of the preceding
year of income were such amount (if any) as the Commissioner determines; and
(D) for the purposes of Division 16A of Part III of the Assessment
Act, the amount of the eligible taxable income of the taxpayer of the
preceding year of income were such amount (if any) as the Commissioner
determines.
(2) A reference in this section to the amount of provisional tax payable by
a taxpayer includes a reference to the amount that, but for subsection 221YBA
(5) of the Assessment Act, would be the provisional tax payable by the
taxpayer.
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 38
Application of amendments
38. (1) In this section, "amended Act" means the Principal Act as amended by
this Part.
(2) The amendments made by sections 5 and 16 apply in relation to income
received in respect of a period commencing on or after 1 January 1987.
(3) The amendments made by sections 6 and 7 apply in relation to dividends
paid to a shareholder in a company after 4 June 1987 other than dividends
declared on or before that date.
(4) For the purposes of subsection (3):
where an amount that is paid or credited is, or any assets that are
distributed are, for the purposes of the Principal Act, deemed to be a
dividend paid by a company, that dividend shall be taken to have been declared
at the time when the amount was in fact paid or credited, or the assets were
in fact distributed, as the case may be; and
where, by virtue of a provision of the constituent document of a
company, a dividend may become payable by the company without having been
declared, any such dividend that has become payable shall be taken to have
been declared at the time when it became payable.
(5) Notwithstanding the amendments made by section 9 and the repeals
effected by section 15, subsections 50L (2) and (3) and sections 108 and 109
of the Principal Act apply in relation to amounts paid or credited, or assets
distributed, on or before 4 June 1987 as if those amendments and repeals had
not been made or effected.
(6) Subsections 50L (2) and (3) and sections 108 and 109 of the amended Act
apply in relation to amounts paid or credited, or property transferred, after
4 June 1987.
(7) The amendment made by paragraph 11 (a) applies to gifts made on or after
7 August 1985.
(8) The amendment made by paragraph 11 (b) applies to gifts made after 26
August 1982.
(9) Paragraph 78 (1) (a) (lxxxviii) of the amended Act applies to gifts made
on or after 24 April 1987.
(10) The amendments made by section 12 apply to assessments in respect of
income of the year of income commencing on 1 July 1986 and of all subsequent
years of income.
(11) The amendments made by paragraphs 13 (b) and (c) and 14 (b) and (c) and
apply in relation to the year of income commencing on 1
July 1986 and all subsequent years of income.
(12) The amendment made by paragraph 17 (a) applies to assessments in
respect of income of the year of income commencing on 1 July 1986 and of all
subsequent years of income.
(13) The amendments made by paragraphs 17 (b), (c) and (d) apply to
assessments in respect of income of the year of income commencing on 1 July
1987 and of all subsequent years of income.
(14) The amendments made by sections 18, 19, 20, 21 and 22 apply in relation
to dividends paid to a shareholder in a company on or after 1 July 1987.
(15) The amendments made by section 23 apply to assessments in respect of
income of the year of income in which 20 September 1985 occurred and of all
subsequent years of income.
(16) The amendments made by sections 24 and 25 apply in relation to a
payment made by a trustee of a trust after 17 December 1986.
(17) The amendment made by section 34 applies to assessments in respect of
income of the year of income commencing on 1 July 1987 and of all subsequent
years of income.
(18) The amendments made by section 35, in so far as they have effect for
the purposes of Division 6AA of Part III of the amended Act, apply to payments
made in respect of any period commencing on or after 1 January 1987.
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 39
Transitional-section 108 of the Principal Act
39. Section 108 of the Principal Act, in so far as it applies after 4 June
1987 in relation to amounts paid, or assets distributed, on or before that
date, has effect as if subsection (2) were omitted and the following
subsections were substituted:
"(2) If:
the amount or value of an advance, loan or payment is deemed by
subsection (1) to be a dividend paid by a company; and
the company subsequently sets off the whole or a part of a dividend (in
this subsection called the 'subsequent dividend') distributed by it in
satisfaction in whole or in part of the advance, loan or payment; so much of
the amount of the subsequent dividend as is set off as does not exceed the
unfranked part of the subsequent dividend:
shall be deemed not to be a dividend for the purposes of this Act other
than Part IIIAA; and
shall not be taken to be exempt income for the purposes of sections
160APP and 160AQT only because of this subsection.
"(3) In subsection (2), a reference to the unfranked part of a dividend is a
reference to so much of the dividend as has not been franked in accordance
with section 160AQF.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 41
Principal Act
41. The Taxation Administration Act 1953*2* is in this Part referred to as
the Principal Act.
*2* No. 1, 1953, as amended. For previous amendments, see Nos. 28, 39, 40 and
52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75,
1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133,
1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123,
1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and
168, 1985; Nos. 41, 46, 48, 49, 112, 144 and 154, 1986; and Nos. 58 and 62,
1987.
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 42
Modification of limitation laws applying to the recovery of tax debts
42. Section 14ZKA of the Principal Act is amended:
by inserting in subsection (1) the following definitions in their
respective appropriate alphabetical positions (determined on a
letter-by-letter basis):
" 'late payment penalty' means a tax debt payable because of the late
payment, or the non-payment, of the whole or a part of another tax debt;
'primary tax debt', in relation to a late payment penalty, means the tax
debt the late payment or non-payment of the whole or a part of which resulted
in the liability to pay the late payment penalty;";
by inserting after subsection (1) the following subsection:
"(1A) For the purposes of the definitions of 'late payment penalty' and
'primary tax debt' in subsection (1), an amount shall be taken to be due and
payable as a tax liability notwithstanding:
any extension of time for payment of the amount; or
any permission to pay the amount by instalments.";
by inserting in subsection (2) "(in this subsection called the 'current
tax debt')" after "tax debt" (first occurring);
by omitting from subsection (2) "referred to as" and substituting
"called";
by omitting subparagraph (2) (a) (i) and substituting the following
subparagraph:
a person lodges, or lodged, an objection against an assessment, or a
decision of the Commissioner, relating to:
(A) if the current tax debt is a late payment penalty-the primary tax
debt to which the late payment penalty relates; or
(B) in any other case-the current tax debt; and";
by omitting from paragraph (2) (b) "a tax debt payable under any of the
following provisions" and substituting "if the current tax debt is payable
under any of the following provisions, it"; and
by omitting from sub-subparagraph (2) (b) (x) (B) "by reason of the
late payment, or the non-payment, of an amount of a tax liability" and
substituting "by way of late payment penalty".
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 43
Application of amendments
43. (1) Subject to subsection (2), the amendments made by this Part apply in
relation to a cause of action that accrued before, or that accrues after, the
commencement of this section.
(2) Where:
before 14 August 1987, a court had given a judgment, or made an order,
determining a cause of action to recover a late payment penalty; and
the application of paragraph 14ZKA (2) (a) of the Principal Act was
raised as an issue in the action or proceeding on that cause of action; the
following provisions have effect:
paragraph 14ZKA (2) (a) of the Principal Act as amended by this Act
does not apply in relation to that cause of action;
in determining whether paragraph 14ZKA (2) (a) of the Principal Act
applied in relation to that cause of action, the amendments made by this Part
shall be disregarded.
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 44
Principal Act
44. The Taxation Laws Amendment Act (No. 2) 1987*3* is in this Part referred
to as the Principal Act.
*3* No. 62, 1987.
TAXATION LAWS AMENDMENT ACT (No. 3) 1987No. 108, 1987
- SECT 45
Application and transitional provisions
45. Section 47 of the Principal Act is amended by omitting from subsection
(2) "11,".
The
Act No. 108, 1987 amended as indicated in the Tables below.
For all relevant
information pertaining to application, saving or transitional provisions
Act |
Number and year |
Date of Assent |
Date of commencement |
Application, saving or transitional provisions |
108, 1987 |
13 Nov 1987 |
13 Nov 1987 |
||
138, 1987 |
18 Dec 1987 |
Ss. 90, 91: Royal Assent |
S. 91 | |
75, 2010 |
28 June 2010 |
Schedule 6 (item 56): 29 June 2010 |
— |
| |
Provision affected | How affected |
S. 37........................................ | am. No. 138, 1987 |
S. 40........................................ | rep. No. 75, 2010 |
Taxation Laws Amendment Act (No. 4) 1987 (No. 138, 1987)
Where a taxpayer makes an application under subsection 158D (1) of the
Income Tax Assessment Act 1936
0
0
0