Taxation Laws Amendment Act (No. 3) 1994 (Cth)
This compilation was prepared on 6 October 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 INCOME TAX ASSESSMENT ACT 1936
Principal Act
Object
Insertion of new Division:
Object
Outline
Interpretation
Money not actually paid to a person
Signing of documents
Deduction from reportable payment if payee's tax file number
not quoted
Deductions to be sent to the Commissioner
Obligation to issue receipt for deduction
Deductions sent to Commissioner to be accompanied by a
statement
Annual report
Retention of statement and annual report
Method of quoting tax file number
Meaning of "tax file number declaration"
When tax file number declaration in force
Commissioner may correct tax file number set out in
tax file number declaration form
Making of pensioner exemption declaration to be alternative to
quotation of tax file number
Obligations of payer - tax file number declaration form or
pensioner exemption declaration form
Commissioner may refund deductions
Penalty for failure to make deductions from reportable
payments
Penalty for failure to send deductions to Commissioner
Commissioner may remit penalties for failure to deduct or for
failure to send deductions to Commissioner
Reduction of late payment penalty where judgment debt carries
interest
Civil penalties to be alternative to prosecution for certain
offences
Payers to have civil protection for making deductions
Recovery of amounts by Commissioner
Entitlement to credit - payee neither a partnership nor a
trustee
Entitlement to credit - payee a partnership
Entitlement to credit - payee a trustee
Application of credits
Power of Commissioner to obtain information
Declarations
Application of this Division to partnerships
Application of this Division to unincorporated companies
Review of decisions
Consequential amendments of the Principal Act
Consequential amendments of other Acts
Object
Certain provisions to be disregarded in calculating attributable income
Application
Object
Application of Division in respect of interests in non-resident trust
estates to which Part XI applies
Attributable income of a trust estate
Object
Attributable income of a trust estate
Application
Object
Application of Division in respect of interests in non-resident trust
estates to which Part XI applies
Object
Repeal of section
Object
"Dividend" includes distribution of corporate limited partnership
Repeal of section and substitution of new section:
Residence of corporate limited partnership
Application
Object
Losses of previous years
Object
Insertion of new section:
Foreign investment fund losses to be expressed in Australian
currency
Application
Object
Step 2 - Calculation of foreign investment fund income
Step 2 - Calculation of foreign investment fund income
Application
Object
How to work out attribution percentage applicable to taxpayer in
respect of interest or interests in foreign company
Procedure to be followed
Object
Exemption
Application
Object
Assessability in respect of certain dividends paid by a CFC
Object
Exemption
Object
Insertion of new heading
Liability to withholding tax
Certain income not included in assessable income
Insertion of new Subdivision:
Object
Amount of a dividend
FDA surplus
FDA credit
FDA debit
FDA declaration, FDA declaration percentage and FDA
declaration amount
Dividend statement
Penalty for setting out incorrect amounts in dividend
statement
Company to keep records
Application
Transitional
Object
Income of certain persons serving with an armed force under the control
of the United Nations
Index of payments covered by Subdivision
Insertion of new section:
Home child care allowance
Rebates for residents of isolated areas
Rebates for members of Defence Force serving overseas
Indexation of rebate amounts in sections 159J, 159K and 159L
Rebates for dependants
Uplifted provisional tax amount
Provisional tax on estimated income
Application
Transitional
Object
Interpretation
Application
Object
Repeal of section
Interpretation
Sales of securities purchased at a discount
Money paid before 1 July 1991 on shares in management and investment
companies
Interpretation
Part applies in respect of disposals of assets
Disposal of shares or interest in trust
Application
Object
Repeal of Subdivision
Amendment of assessments
Provisional tax on estimated income
Application
Object
Deduction for gifts, pensions etc.
Part applies in respect of disposals of assets
Application
Object
Deductions for gifts, pensions etc.
Application
Object
Rebate in respect of certain pensions, benefits etc.
Index of payments covered by Subdivision
Section 24ABA Interpretation - supplementary amounts
Insertion of new section:
Partner allowance
Application
Object
Determination of whether a benefit is in excess of recipient's RBLs
Interim determinations
Benefits which are counted towards a person's RBLs
RBL amount - ETP paid by life assurance company or registered
organisation
Application
Object
100. Interim determinations
101. Application
102. Object
103. Payers of benefits to give certain information to Commissioner
104. Application
105. Object
106. Assessment of benefits against lump sum RBL
107. Application
108. Alleviation of notice requirements
109. Object
110. Insertion of new Subdivision:
Object
Deduction for setup costs of RHQ companies
Interpretation
Associated companies
Application to become an RHQ company
Determination of RHQ companies
111. Object
112. Repeal of section
113. Insertion of new Part:
PART IIIB - AUSTRALIAN BRANCHES OF FOREIGN BANKS
160ZZVA. Object
160ZZVB. Application
Definitions
Certain provisions to apply as if Australian branch of foreign
bank were a separate legal entity
Income of branch to have Australian source
Deduction for foreign tax
Notional borrowing by branch from bank
160ZZZA. Notional payment of interest by branch to bank
160ZZZB. Deductions in respect of interest
160ZZZC. Offshore banking units
160ZZZD. Thin capitalisation
160ZZZE. Notional derivative transactions between branch and bank
160ZZZF. Notional foreign exchange transactions between branch and bank
160ZZZG. Losses
160ZZZH. Capital losses
160ZZZI. Certain transactions to be disregarded
160ZZZJ. Withholding tax on interest paid by branch to bank
114. Keeping of records
115. Application
PART 3 - AMENDMENT OF THE INCOME TAX (MINING WITHHOLDING TAX) ACT
1979
117. Principal Act
118. Rate of tax
119. Application
PART 4 - AMENDMENTS OF THE SALES TAX LAW
120. Object
121. Principal Act
122. Luxury motor vehicle for disabled person or exempt child care body
123. Schedule 1
124. Application
125. Principal Act
126. Schedule 1
127. Application
128. Object
129. Principal Act
130. General definitions
131. Insertion of new section:
Export alteration goods: affects meaning of "Australian-used
goods"
132. Insertion of new section:
Export alteration goods
133. Taxable dealing with goods imported after being exported for alteration
134. Insertion of new section:
Export alteration goods that are re-imported
135. Schedule 1
136. Application
137. Object
138. Principal Act
139. Clawback of CR9 credit on later sale of defective goods
140. Application
141. Object
142. Principal Act
143. Periodic quoting
144. Manner in which quote must be made
145. Savings
146. Object
147. Principal Act
148. Repeal of section and substitution of new section:
Post-trial sale or post-trial lease
149. Application
150. Principal Act
151. Object
152. Schedule 1
153. Application
154. Transitional
155. Principal Act
156. General definitions
157. Eligible repair goods
158. Schedule 1
159. Principal Act
160. Interpretation
161. Application
162. Principal Act
163. Schedule 1
164. Application
165. Transitional
PART 5 - AMENDMENT OF THE INCOME TAX REGULATIONS
166. Amendment
167. Amendment or repeal of Income Tax Regulations
SCHEDULE
AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 CONSEQUENT UPON THE
INTRODUCTION OF THE REPORTABLE PAYMENTS SYSTEM
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 3) 1994.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 2
Commencement [
2.(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Division 1, and Subdivisions B, D, E, G, J, K, L and M of Division 3, of
Part 2 are taken to have commenced immediately after the commencement of the
Income Tax Assessment Amendment (Foreign Investment) Act 1992.
(3) Subdivision A of Division 12 of Part 2 commences immediately after
Subdivision B of that Division.
(4) Division 1 of Part 4 (other than section 123) is taken to have commenced
on 1 July 1994.
(5) Division 3 of Part 4, section 162 and paragraph 163(a) are taken to have
commenced on 30 June 1994.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Income Tax Assessment Act
1936*1*.
Income Tax Assessment Act 1936
*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, 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 (as amended by No. 82, 1994), 237
and 238, 1992; Nos. 7, 17, 18, 27 and 32, 1993; and Nos. 56 and 82, 1994.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 4
Object
4. The object of this Division is to introduce a tax file number-based
reporting system for certain payments.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 5
Insertion of new Division
5. After Division 1 of Part VI of the Principal Act the following Division
is inserted:
"Division 1AA-Reportable payments system (RPS)
"Subdivision A-Object and outline
Object
"220AA. The object of this Division is to facilitate the efficient
collection of tax by:
(a) providing for payers of certain payments ('reportable payments') to make
deductions from those payments if the payee's tax file number is not quoted;
and
(b) requiring payers of reportable payments to give reports to the
Commissioner about those payments.
Outline
"220AB. The following table sets out an outline of this Division:
Provision(s)
Reportable payments
Section 220AC
Deductions by payer from reportable
payments
section 220AF
- obligation to send deductions to
section 220AG
section 220AH
section 220AP
section 220AR
sections 220AS to 220AW
deduction rules
section 220AX
section 220AY
sections 220AZ to 220AZC
Reports by payer to Commissioner
section 220AI
deductions
section 220AJ
section 220AK
Quotation of tax file number by payee
section 220AL
sections 220AM to 220AO
section 220AQ
Commissioner
Pensioners
section 220AP
section 220AQ
Commissioner
"Subdivision B-Interpretation
Interpretation
"220AC. In this Division:
'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;
Note: This definition is only used in section 220AQ.
'exempt inter-corporate payment' means a payment made by a company (other
than in the capacity of trustee) to another company (other than in the
capacity of trustee) where, at the time of the payment:
(a) one of those companies is a subsidiary of the other company; or
(b) each of those companies is a subsidiary of a third company;
Note: This definition is only used in paragraph (e) of the definition of
'reportable payment'.
'government body' means the Commonwealth, a State, a Territory or an
authority of the Commonwealth, a State or a Territory;
'payee' means a person who receives, or is entitled to receive, a reportable
payment;
'payer' means a person who makes, or has made, a reportable payment;
'payment' has a meaning affected by section 220AD;
'pensioner exemption declaration' has the meaning given by section 220AP;
'pensioner exemption declaration form' has the meaning given by section
220AP;
'person' means any of the following:
(a) a company;
(b) a partnership;
(c) a person in a particular capacity of trustee;
(d) a government body;
(e) any other person;
Note 1: Section 220AZF sets out additional rules about partnerships.
Note 2: Section 220AZG sets out additional rules about unincorporated
companies.
'reportable payment' means a payment that:
(a) is declared by the regulations to be a reportable payment for the
purposes of this Division; and
(b) is assessable income; and
(c) is not a payment of salary or wages within the meaning of section 221A;
and
(d) is not a prescribed payment within the meaning of section 221YHA; and
(e) is not an exempt inter-corporate payment;
Note: 'Exempt inter-corporate payment' is defined by this section.
'signed' has the meaning given by section 220AE;
'subsidiary' has the same meaning as in section 221ED;
Note: This definition is only used in paragraphs (a) and (b) of the definition
of 'exempt inter-corporate payment'.
'tax file number' has the meaning given by section 202A;
'tax file number declaration' has the meaning given by section 220AM;
'tax file number declaration form' has the meaning given by section 220AM.
Money not actually paid to a person
"220AD. For the purposes of this Division, if money is not actually paid to
a person but is reinvested, accumulated, capitalised or otherwise dealt with
on behalf of the person, or as the person directs, the money is taken to be
paid to the person when it is so reinvested, accumulated, capitalised or
otherwise dealt with.
Signing of documents
Natural persons
"220AE.(1) For the purposes of this Division, a natural person is taken to
have signed a document if, and only if, the document is signed by:
(a) the person; or
(b) a person declared by the regulations to be a signatory for the purposes
of this subsection.
Persons other than natural persons
"(2) For the purposes of this Division, a person other than a natural person
is taken to have signed a document if, and only if, the document is signed by
a person declared by the regulations to be a signatory for the purposes of
this subsection.
"Subdivision C-Payer of reportable payment must make deduction
if payee's tax file number not quoted
Deduction from reportable payment if payee's tax file number not quoted
When section applies
"220AF.(1) This section applies if:
(a) a payer makes a reportable payment to a payee; and
(b) the payee has not quoted his or her tax file number to the payer in
connection with the payment; and
(c) the payment is made on or after 1 December 1994.
Note 1: See section 220AL for the method of quoting tax file numbers.
Note 2: The making of a pensioner exemption declaration is an alternative to
quotation of a tax file number-see section 220AP.
Deduction
"(2) The payer must deduct:
(a) 48.4% of the payment; or
(b) if another percentage is specified in regulations made for the purposes
of this subsection-that percentage of the payment.
If working out the relevant percentage results in an amount of dollars and
cents, the cents are to be disregarded.
Offence
"(3) A person (other than a government body) who contravenes this section is
guilty of an offence punishable on conviction by a maximum fine of 10 penalty
units.
Note: See section 220AS for an alternative civil penalty for contravening this
section.
Deductions to be sent to the Commissioner
Deductions to be sent
"220AG.(1) A payer who makes one or more reportable payments in a month must
send together to the Commissioner all amounts deducted under this Subdivision
from the payments. The amounts must be sent in sufficient time for them to be
received by the Commissioner in the ordinary course of events within:
(a) 14 days after the end of the month; or
(b) such longer period as the Commissioner allows.
Offence
"(2) A person (other than a government body) who contravenes this section is
guilty of an offence punishable on conviction by imprisonment for a maximum
period of 12 months. In addition, the court may order the person to pay to the
Commissioner, as a penalty, an amount not greater than the total of the
amounts required to be deducted under this Subdivision from the reportable
payments to which the contravention relates.
Note: See section 220AT for an alternative civil penalty for contravening this
section.
"Subdivision D-Payers' reporting and record-keeping obligations
Obligation to issue receipt for deduction
When section applies
"220AH.(1) This section applies if a payer deducts an amount under this
Division from a reportable payment.
Receipt to be given
"(2) The payer must give the payee, at the time of the payment or as soon as
practicable afterwards, a written receipt, invoice or similar document setting
out:
(a) the payer's name and address; and
(b) the payee's name (if known to the payer); and
(c) the payee's address (if known to the payer); and
(d) the date on which the payment was made; and
(e) the amount of the payment; and
(f) the amount deducted.
Receipt to be in English and signed
"(3) A document given by a payer under subsection (2) must be:
(a) in the English language; and
(b) signed by the payer.
Penalty: 1 penalty unit.
Deductions sent to Commissioner to be accompanied by a statement
When section applies
"220AI.(1) This section applies if a payer sends an amount to the
Commissioner under section 220AG.
Statement to be completed and sent to Commissioner
"(2) The payer must:
(a) before sending the amount, complete and sign a statement giving
information in relation to the deductions concerned; and
(b) make a copy of the statement; and
(c) send the statement to the Commissioner with the amount.
Note: Section 220AK deals with retention of the copies.
Form of statement
"(3) The statement must be in a form approved by the Commissioner.
Penalty: 20 penalty units.
Annual report
Requirements for annual report
"220AJ.(1) A payer who makes one or more reportable payments during a
financial year must:
(a) send to the Commissioner a written report setting out, in respect of
each payee:
(i) the payee's tax file number (if quoted to the payer); and
(ii) if the payee's tax file number was not quoted to the payer
but the payee made a pensioner exemption declaration to the payer:
(A) a statement to that effect; and
(B) the type of pension or benefit specified in the pensioner
exemption declaration form concerned; and
(iii) the payee's name (if known to the payer); and
(iv) the payee's address (if known to the payer); and
(v) the total amount of the reportable payments made by the payer
to the payee during the financial year; and
(vi) the total amount (if any) deducted by the payer under this
Division from those payments; and
(b) make a copy of the report.
Note: Section 220AK deals with retention of the copies.
Time limit
"(2) A report under subsection (1) relating to a financial year must be
given to the Commissioner within 2 months after the end of that financial year
or before such later date as the Commissioner allows.
Form of report
"(3) The report must be in a form approved by the Commissioner.
Section not to apply to pre-1 December 1994 payments
"(4) This section does not apply to a reportable payment made before 1
December 1994.
Penalty: 20 penalty units.
Retention of statement and annual report
Retention of statement
"220AK.(1) A person who makes a copy of a statement under paragraph
220AI(2)(b) in relation to a particular month must retain the copy for at
least 5 years after the end of the financial year in which that month
occurred.
Retention of annual report
"(2) A person who makes a copy of a report under paragraph 220AJ(1)(b) in
relation to a financial year must retain the copy for at least 5 years after
the end of the financial year.
Penalty: 20 penalty units.
"Subdivision E-How payees can quote their tax file numbers
Method of quoting tax file number
"220AL. A payee is taken to have quoted his or her tax file number to a
payer in connection with a reportable payment if a tax file number declaration
made to the payer by the payee is in force when the payment is made.
Note: See subsection 220AM(2) for the definition of 'making a tax file number
declaration'.
Meaning of "tax file number declaration"
Tax file number declaration form
"220AM.(1) A 'tax file number declaration form' is a document, in a form
approved by the Commissioner for the purposes of this section, that (in
addition to anything else that it requires or permits) enables the person
completing the form to state his or her tax file number.
Making a tax file number declaration
"(2) If a person (the 'first person') completes the form and gives it to
another person, the first person is said to make a 'tax file number
declaration' to the other person at the time when the form is given.
Note: The first person would normally be a payee and the other person would
normally be a payer.
When tax file number declaration in force
When declaration in force
"220AN.(1) A tax file number declaration made by a person (the 'first
person') to another person (the 'second person') is in force at all times
after it is made until any of the following happens:
(a) 29 days pass after the declaration is made without an obligation being
imposed on the second person under section 220AQ in relation to the tax file
number declaration form concerned;
(b) one year passes after the second person makes a reportable payment to
the first person (being a payment made when the declaration is in force)
without the first person again becoming entitled to receive a reportable
payment from the second person;
(c) the first person makes another tax file number declaration to the second
person;
(d) the Commissioner, by notice in the Gazette, determines that:
(i) all tax file number declarations cease to be in force; or
(ii) a specified class of tax file number declarations that
includes the particular tax file number declaration ceases to be in force;
(e) the declaration ceases to be in force because of subsection (2).
Note: The first person would normally be a payee and the second person would
normally be a payer.
Cancellation-no tax file number
"(2) A tax file number declaration ceases to be in force if:
(a) the Commissioner is satisfied that the tax file number stated in the
declaration form:
(i) has been cancelled since the form was given; or
(ii) is for any other reason not the first person's tax file
number; and
(b) the Commissioner is not satisfied that the first person has a tax file
number; and
(c) the Commissioner, by written notice given to the second person and the
first person:
(i) informs them accordingly; and
(ii) states that the declaration ceases to be in force on a
specified day (which must not be earlier than the day on which the notice is
given to the first person).
In such a case, the declaration ceases to be in force on the day specified in
the notices.
Notification of decisions
"(3) If the Commissioner gives the first person a notice under subsection
(2), the Commissioner must, together with the notice, give the first person a
written statement of the reasons for the decision to give the notice.
Commissioner may correct tax file number set out in tax file number
declaration form
"220AO.(1) If:
(a) the Commissioner is satisfied that the tax file number stated in a tax
file number declaration form:
(i) has been cancelled or withdrawn since the form was given; or
(ii) is otherwise wrong; and
(b) the Commissioner is satisfied that the person who gave the form (the
'first person') has a tax file number;
the Commissioner may give the person to whom the declaration was made (the
'second person') written notice of the incorrect statement and of the correct
tax file number.
Note: The first person would normally be a payee and the second person would
normally be a payer.
"(2) If the Commissioner does so, the second person must, in any document
under this Division requiring the first person's tax file number that the
second person completes after that time (before another tax file number
declaration is made by the first person to the second person), state that
correct tax file number.
"Subdivision F-Making of pensioner exemption declaration
to be alternative to quotation of tax file number
Making of pensioner exemption declaration to be alternative to quotation of
tax file number
Pensions and benefits to which this section applies
"220AP.(1) This section applies to the following pensions and benefits:
(a) an age pension under Part 2.2 of the Social Security Act 1991;
(b) a disability support pension under Part 2.3 of that Act;
(c) a wife pension under Part 2.4 of that Act;
(d) a carer pension under Part 2.5 of that Act;
(e) a sole parent pension under Part 2.6 of that Act;
(f) a widow B pension under Part 2.8 of that Act;
(g) a special benefit under Part 2.15 of that Act;
(h) a special needs pension under Part 2.16 of that Act;
(i) a pension under Part III of the Veterans' Entitlements Act 1986.
Making of pensioner exemption declaration
"(2) For the purposes of this Division, a payee is taken to have quoted his
or her tax file number to a payer in connection with a reportable payment if a
pensioner exemption declaration made to the payer by the payee is in force
when the payment is made. However, this rule does not apply for the purposes
of section 220AJ (which deals with annual reports by payers).
Note: See subsection (4) for the definition of 'making a pensioner exemption
declaration'.
Pensioner exemption declaration form
"(3) A 'pensioner exemption declaration form' is a document, in a form
approved by the Commissioner for the purposes of this section, that (in
addition to anything else that it requires or permits) enables the person
completing the form to state that he or she is being paid a pension or
benefit.
Making a pensioner exemption declaration
"(4) If a person (the 'first person') completes the form and gives it to
another person, the first person is said to make a 'pensioner exemption
declaration' to the other person at the time when the form is given.
Note: The first person would normally be a payee and the other person would
normally be a payer.
When declaration in force
"(5) A pensioner exemption declaration made by a person (the 'first person')
to another person (the 'second person') is in force at all times after it is
made until any of the following happens:
(a) 29 days pass after the declaration is made without an obligation being
imposed on the second person under section 220AQ in relation to the pensioner
exemption declaration form concerned;
(b) one year passes after the second person makes a reportable payment to
the first person (being a payment made when the declaration is in force)
without the first person again becoming entitled to receive a reportable
payment from the second person;
(c) the first person makes another pensioner exemption declaration to the
second person;
(d) the Commissioner, by notice in the Gazette, determines that:
(i) all pensioner exemption declarations cease to be in force; or
(ii) a specified class of pensioner exemption declarations that
includes the particular pensioner exemption declaration ceases to be in
force;
(e) the first person makes a tax file number declaration to the second
person;
(f) the first person ceases to be paid a pension or benefit.
Note: The first person would normally be a payee and the second person would
normally be a payer.
Commissioner may tell payers and payees about cessation of pension/benefit
"(6) If a pensioner exemption declaration made by a person (the 'first
person') to another person (the 'second person') ceases to be in force because
of paragraph (5)(f), the Commissioner may tell the first person and the second
person that the declaration has so ceased to be in force. The Commissioner may
also explain the reasons for the cessation and the effect of the cessation.
Note: The first person would normally be a payee and the second person would
normally be a payer.
Payees to tell payers about cessation of entitlement to pension/benefit
"(7) If a pensioner exemption declaration made by a person (the 'first
person') to another person (the 'second person') ceases to be in force because
of paragraph (5)(f), the first person must tell the second person, in writing,
about the cessation as soon as practicable after the cessation occurs.
Penalty for contravention of this subsection: 1 penalty unit.
Note: The first person would normally be a payee and the second person would
normally be a payer.
"Subdivision G-Payer to send tax file number declaration form
or pensioner exemption declaration form to Commissioner
Obligations of payer-tax file number declaration form or pensioner exemption
declaration form
Form to be sent to Commissioner-prior dealings with payee
"220AQ.(1) If:
(a) a tax file number declaration form or pensioner exemption declaration
form is given by a person (the 'first person') to another person (the 'second
person'); and
(b) at any time during the period of 12 months ending at the time of receipt
by the second person of the form, there was in existence an arrangement that
gave rise, or was capable of giving rise, to the making of a reportable
payment by the second person to the first person (whether on fulfilment of a
condition or otherwise);
the second person must:
(c) complete the part of the form required to be completed by the second
person; and
(d) sign the form; and
(e) make a copy of the form; and
(f) send the form to the Commissioner in sufficient time for it to be
received by the Commissioner in the ordinary course of events within:
(i) 14 days after receipt by the second person of the form; or
(ii) such longer period as the Commissioner allows.
Note 1: The first person would normally be a payee and the second person would
normally be a payer.
Note 2: Section 220AC defines 'arrangement'.
Form to be sent to Commissioner-no prior dealings with payee
"(2) If:
(a) a tax file number declaration form or pensioner exemption declaration
form is given by a person (the 'first person') to another person (the 'second
person'); and
(b) at no time during the period of 12 months ending at the time of receipt
by the second person of the form was there in existence an arrangement that
gave rise, or was capable of giving rise, to the making of a reportable
payment by the second person to the first person (whether on fulfilment of a
condition or otherwise); and
(c) during the period of 28 days after the receipt by the second person of
the form, the second person made one or more reportable payments to the first
person;
the second person must:
(d) complete the part of the form required to be completed by the second
person; and
(e) sign the form; and
(f) make a copy of the form; and
(g) send the form to the Commissioner in sufficient time for it to be
received by the Commissioner in the ordinary course of events within:
(i) 14 days after the earliest time when any of the payments
mentioned in paragraph (c) were made; or
(ii) such longer period as the Commissioner allows.
Note: Section 220AC defines 'arrangement'.
Retention of copy of form
"(3) A person who makes a copy of a form under paragraph (1)(e) or (2)(f)
must retain that copy until the second 1 July after the day on which the
declaration concerned ceases to be in force.
Penalty: 10 penalty units.
"Subdivision H-Refund of deductions in special circumstances
Commissioner may refund deductions
When section applies
"220AR.(1) This section applies if a deduction was made under this Division
from a reportable payment to a person.
Application for refund
"(2) The person may apply for a refund of the whole or a part of the
deduction.
Application to be in writing
"(3) The application is to be in writing and must be given to the
Commissioner.
Criteria for granting application
"(4) The Commissioner must grant the application if the Commissioner is
satisfied that:
(a) there are special circumstances that warrant granting the application;
and
(b) it would be fair and reasonable to grant the application having regard
to:
(i) the purposes of this Division; and
(ii) the nature of the act or omission that resulted in the
deduction being made; and
(iii) such other matters (if any) as the Commissioner thinks fit.
No credit for refunded amounts
"(5) A person is not entitled to a credit under this Division in respect of
an amount refunded under this section.
"Subdivision I-Civil penalties for failure to make deductions
from reportable payments and for failure to send
deductions to the Commissioner
Penalty for failure to make deductions from reportable payments
When section applies
"220AS.(1) This section applies if a person refuses or fails, at the time of
making a reportable payment to a payee, to deduct from the payment the amount
required to be deducted under this Division.
Persons other than government bodies
"(2) If the person is not a government body, the person is liable to pay to
the Commissioner, by way of penalty:
(a) an amount (the 'undeducted amount') equal to the amount that the person
refused or failed to deduct; and
(b) an amount at the rate of 16% per annum of so much of the undeducted
amount as remains unpaid (this amount is computed from the end of the period
within which the person would have been required to pay the amount of the
deduction to the Commissioner if it were assumed that the person had deducted
the amount required to be deducted under this Division).
Government bodies
"(3) If the person is a government body other than the Commonwealth, the
person is liable to pay to the Commissioner, by way of penalty, an amount at
the rate of 16% per annum of the amount that the person refused or failed to
deduct. This penalty is payable in respect of the period:
(a) beginning at the time when the reportable payment was made; and
(b) ending on 30 June in the financial year in which the reportable payment
was made.
Penalty for failure to send deductions to Commissioner
When section applies
"220AT.(1) This section applies if an amount (the 'principal amount')
payable to the Commissioner under section 220AG by a person remains unpaid
after the end of the period within which it is required to be paid.
Principal amount continues to be payable
"(2) The principal amount continues to be payable by the person to the
Commissioner.
Persons other than government bodies
"(3) If the person is not a government body, the person is liable to pay to
the Commissioner, by way of penalty:
(a) an amount (the 'relevant penalty amount') equal to 20% of the principal
amount; and
(b) an amount at the rate of 16% per annum of the sum of:
(i) so much of the principal amount as remains unpaid; and
(ii) so much of the relevant penalty amount as remains unpaid;
computed from the end of that period.
Government bodies
"(4) If the person is a government body other than the Commonwealth, the
person is liable to pay to the Commissioner, by way of penalty, an amount at
the rate of 16% per annum on so much of the principal amount as remains
unpaid, computed from the end of that period.
Commissioner may remit penalties for failure to deduct or for failure to send
deductions to Commissioner
When section applies
"220AU.(1) This section applies to a penalty payable by a person under
section 220AS or 220AT.
Power to remit
"(2) The Commissioner may remit the whole or a part of the penalty.
Criteria for remission-interest-based penalties
"(3) If the penalty is payable by a person under paragraph 220AS(2)(b),
220AT(3)(b) or subsection 220AT(4) in relation to another amount that has not
been paid (the 'principal amount'), the Commissioner may only remit the whole
or a part of the penalty if:
(a) the Commissioner is satisfied that:
(i) the circumstances that contributed to the delay in payment of
the principal amount were not due to, or caused directly or indirectly by, an
act or omission of the person; and
(ii) the person has taken reasonable action to mitigate, or
mitigate the effects of, those circumstances; or
(b) the Commissioner is satisfied that:
(i) the circumstances that contributed to the delay in payment of
the principal amount were due to, or caused directly or indirectly by, an act
or omission of the person; and
(ii) the person has taken reasonable action to mitigate, or
mitigate the effects of, those circumstances; and
(iii) having regard to the nature of those circumstances, it would
be fair and reasonable to remit the whole or the part of the penalty; or
(c) the Commissioner is satisfied that there are special circumstances
because of which it would be fair and reasonable to remit the penalty or the
part of the penalty.
Notification of decisions
"(4) If the Commissioner makes a decision:
(a) to remit part only of a penalty payable under paragraph 220AS(2)(a),
subsection 220AS(3) or paragraph 220AT(3)(a); or
(b) not to remit any part of such a penalty;
the Commissioner must give written notice of the decision to the person liable
to pay the penalty.
Reduction of late payment penalty where judgment debt carries interest
Principal amount
"220AV.(1) For the purposes of this section, each of the following amounts
is a 'principal amount':
(a) an amount of the kind referred to in paragraph 220AS(2)(a) as the
undeducted amount;
(b) an amount of the kind referred to in subsection 220AT(1) as the
principal amount;
(c) an amount of the kind referred to in paragraph 220AT(3)(a) as the
relevant penalty amount.
When section applies
"(2) This section applies if judgment is given by, or entered in, a court
for the payment of:
(a) the whole or a part of a principal amount; or
(b) an amount that includes the whole or a part of a principal amount.
Principal amount still due and payable
"(3) A person's liability to a penalty (the 'interest-based penalty') under
paragraph 220AS(2)(b), 220AT(3)(b) or subsection 220AT(4) is to be worked out
on the basis that the principal amount or the part of the principal amount, as
the case may be, does not cease to be due and payable only because of the
giving or entering of the judgment.
Reduction of interest-based penalties
"(4) If the judgment debt carries interest, the interest-based penalty that
would otherwise be payable in relation to the principal amount or the part of
the principal amount, as the case may be, is to be reduced by the amount
worked out using the formula:
X Whole or part of principal amount
Judgment debt
where:
'Interest' means the amount of the interest;
'Whole or part of principal amount' means the principal amount, or the part
of the principal amount, as the case may be;
'Judgment debt' means the amount of the judgment debt.
Civil penalties to be alternative to prosecution for certain offences
"220AW.(1) If:
(a) apart from this subsection, an amount is payable, by way of penalty, by
a person to the Commissioner under this Division because of an act or omission
of the person; and
(b) a prosecution is instituted against the person for an offence against
this Division constituted by the act or omission;
the amount is not payable unless and until the prosecution is withdrawn.
"(2) If:
(a) a person is liable to pay, by way of penalty, an amount (the 'penalty
amount') to the Commissioner under this Division because of an act or omission
of the person; and
(b) an amount (the 'paid amount') is paid, or applied by the Commissioner,
in total or partial discharge of the liability; and
(c) a prosecution is instituted against the person for an offence against
this Division constituted by the act or omission;
then:
(d) the paid amount is to be refunded to the person or applied by the
Commissioner in total or partial discharge of a tax liability of the person
(within the meaning of section 2 of the Taxation Administration Act 1953);
and
(e) if the prosecution is withdrawn, the person again becomes liable to pay
the penalty amount.
"Subdivision J-Payers to have civil protection for making deductions
Payers to have civil protection for making deductions
"220AX. A person is discharged from all liability to pay, or account for, a
deduction to any person other than the Commissioner if:
(a) the person makes the deduction from a reportable payment; and
(b) the deduction was made, or purports to have been made, for the purposes
of section 220AF.
"Subdivision K-Recovery of amounts payable under this Division
Recovery of amounts by Commissioner
Recoverable amount
"220AY.(1) In this section:
means any of the following amounts:
(a) an amount payable to the Commissioner under this Division by a person
other than the Commonwealth;
(b) the unpaid amount of an estimate under section 222AGA that relates to a
liability under this Division;
(c) a penalty payable under Subdivision E of Division 8 in relation to such
an estimate;
(d) an amount that is due and payable under an agreement under section
222ALA that relates to:
(i) a liability under this Division; or
(ii) a liability to pay an estimate relating to a liability under
this Division;
even if the agreement also relates to a liability that is not of a kind
referred to in subparagraph (i) or (ii);
(e) a penalty payable under Subdivision B of Division 9 in relation to a
company's liability under this Division;
(f) a penalty payable under Subdivision C of Division 9 in relation to an
estimate relating to a company's liability under this Division;
(g) a penalty payable under Subdivision D of Division 9 in relation to a
company's liability to pay an amount of the kind mentioned in paragraph (d).
Debt
"(2) A recoverable amount is a debt due to the Commonwealth.
Payable to Commissioner
"(3) A recoverable amount is payable to the Commissioner.
Recovery in court
"(4) A recoverable amount may be sued for and recovered in a court of
competent jurisdiction by the Commissioner or a Deputy Commissioner suing in
his or her official name.
Criminal proceedings-ancillary order for payment
"(5) If proceedings for an offence against this Division are brought against
the person by whom a recoverable amount is payable, the court before which the
proceedings are brought may order the person to pay the amount to the
Commissioner.
Averments
"(6) The provisions of section 8ZL of the Taxation Administration Act 1953
(which deals with averments) apply in proceedings for the recovery of a
recoverable amount in a corresponding way to the way in which they apply in
relation to a prosecution for a prescribed taxation offence within the meaning
of Part III of that Act.
Evidentiary certificate
"(7) In an action for the recovery of a recoverable amount, a written
certificate stating that the sum specified in the certificate was, as at the
date of the certificate, due by a specified person to the Commonwealth in
respect of a recoverable amount is prima facie evidence of the matters stated
in the certificate. The certificate must be signed by the Commissioner, a
Second Commissioner, a Deputy Commissioner or a delegate of the Commissioner.
Multiple amounts owing
"(8) If:
(a) 2 or more recoverable amounts are payable by a person; and
(b) an amount (the 'eligible payment') is paid to the Commissioner in
respect of one or more of those recoverable amounts; and
(c) the sum of the recoverable amounts payable exceeds the eligible
payment;
the Commissioner may:
(d) apply the eligible payment in partial discharge of the sum of the
recoverable amounts payable; and
(e) recover as a debt due to the Commonwealth the amount by which the sum of
the recoverable amounts payable exceeds the eligible payment.
The Commissioner may do those things in spite of any direction to the contrary
by or on behalf of the person by whom the recoverable amounts are payable or
the person making the eligible payment.
Application of Divisions 8 and 9
"(9) If the Commissioner applies or recovers an amount under subsection (8),
the Commissioner may make a written determination about how the amount is to
be taken, for the purposes of Divisions 8 and 9, to have been applied towards
discharging any one or more of the recoverable amounts referred to in
paragraph (8)(a). A determination has effect accordingly.
Effect of certain declarations and affidavits under Division 8
"(10) In making a statement (whether orally or in writing and whether or not
under oath) for a purpose connected with proceedings to recover a recoverable
amount from a person (the 'debtor'), the maker of the statement (who may be
the debtor) may, in so far as the statement relates to a question about
whether the debtor has a defence, ignore the possibility that a statutory
declaration relating to an estimate may be given to the Commissioner, or an
affidavit relating to an estimate may be filed, under Subdivision B, C or D of
Division 8.
Interpretation
"(11) An expression used in paragraphs (1)(b) to (g) has the same meaning as
in Division 8.
"Subdivision L-Tax credits for deductions from reportable payments
Entitlement to credit-payee neither a partnership nor a trustee
"220AZ. If:
(a) any deductions have been made under this Division from reportable
payments made in a year of income to a person (other than a partnership or the
trustee of a trust estate); and
(b) an assessment has been made of the tax payable, or the Commissioner is
satisfied that no tax is payable, by the person in relation to the year of
income;
the person is entitled to a credit of an amount equal to the deductions.
Entitlement to credit-payee a partnership
"220AZA. If:
(a) any deductions have been made under this Division from reportable
payments made in a year of income to a partnership; and
(b) the return of income of the partnership for the year of income has been
lodged with the Commissioner; and
(c) an assessment has been made of the tax payable, or the Commissioner is
satisfied that no tax is payable, in relation to the year of income by a
partner in the partnership whose individual interest in the net income or
partnership loss of the partnership is wholly or partly attributable to the
reportable payments;
the partner is entitled to a credit worked out using the formula:
X Individual interest
Net income/partnership loss
where:
'Deductions' means the sum of the deductions;
'Individual interest' means so much of the individual interest as is
attributable to the reportable payments;
'Net income/partnership loss' means so much of the net income or partnership
loss as is attributable to the reportable payments.
Entitlement to credit-payee a trustee
When section applies
"220AZB.(1) This section applies if any deductions are made under this
Division from reportable payments made during a year of income to a trustee of
a trust estate.
Trusts-section 97
"(2) If:
(a) a share of the net income of the trust estate is included in the
assessable income of a beneficiary in the trust estate under section 97, being
a share that is wholly or partly attributable to the reportable payments; and
(b) an assessment has been made of the tax payable, or the Commissioner is
satisfied that no tax is payable, by the beneficiary in relation to the year
of income;
the beneficiary is entitled to a credit equal to the amount worked out using
the formula:
X Share of net income
Net income
where:
'Deductions' means the sum of the deductions;
'Share of net income' means so much of the share of the net income of the
trust estate as is attributable to the reportable payments;
'Net income' means so much of the net income of the trust estate as is
attributable to the reportable payments.
Trusts-section 98
"(3) If:
(a) the trustee is liable to be assessed under section 98 in respect of a
share of the net income of the trust estate to which a beneficiary is
presently entitled, being a share that is wholly or partly attributable to the
reportable payments; and
(b) an assessment has been made of the tax payable, or the Commissioner is
satisfied that no tax is payable, by the trustee in respect of that share;
the trustee is entitled to a credit equal to the amount worked out using the
formula:
X Share of net income
Net income
where:
'Deductions' means the sum of the deductions;
'Share of net income' means so much of the share of the net income of the
trust estate as is attributable to the reportable payments;
'Net income' means so much of the net income of the trust estate as is
attributable to the reportable payments.
Trusts-section 99 or 99A
"(4) If:
(a) the trustee is liable to be assessed under section 99 or 99A in respect
of the net income, or a part of the net income, of the trust estate and that
net income or part is wholly or partly attributable to the reportable
payments; and
(b) an assessment has been made of the tax payable, or the Commissioner is
satisfied that no tax is payable, by the trustee under those sections in
respect of that net income or part;
the trustee is entitled to a credit equal to the amount worked out using the
formula:
X Part of net income
Net income
where:
'Deductions' means the sum of the deductions;
'Part of net income' means so much of the net income or part of the net
income in respect of which the trustee is so liable to be assessed as is
attributable to the reportable payments;
'Net income' means so much of the net income of the trust estate as is
attributable to the reportable payments.
Trusts-no net income
"(5) If there is no net income of the trust estate of the year of income,
the trustee is entitled to a credit equal to the sum of the deductions.
Application of credits
Credit is a debt owing by the Commonwealth
"220AZC.(1) Subject to this section, the amount of the credit to which a
person is entitled under this Division is a debt due and payable to that
person by the Commissioner on behalf of the Commonwealth.
Application of credit-cases not involving a trustee assessed to tax
"(2) If a person is entitled to a credit under section 220AZ, 220AZA or
subsection 220AZB(2), the Commissioner must:
(a) if the amount of the credit does not exceed the tax payable by the
person under an assessment in relation to the year of income in which the
deductions to which the credit relates were made-apply the amount of the
credit in payment, or part payment, of that tax; and
(b) if the amount of the credit exceeds the tax payable-apply:
(i) so much of the amount of the credit as does not exceed the tax
in payment of the tax; and
(ii) so much of the excess as does not exceed the amount of any
other tax payable by the person in payment, or part payment, of that other
tax.
Application of credit-trustee assessed under section 98
"(3) If the trustee of a trust estate is entitled to a credit under
subsection 220AZB(3) in relation to a share of a beneficiary of the net income
of the trust estate of a year of income, the Commissioner must:
(a) if the amount of the credit does not exceed the tax payable in respect
of that share-apply the amount of the credit in payment, or part payment, of
that tax; and
(b) if the amount of the credit exceeds the tax payable in respect of that
share-apply:
(i) so much of the amount of the credit as does not exceed the tax
payable in respect of that share in payment of the tax; and
(ii) so much of the excess as does not exceed the amount of any
tax payable by the trustee under section 98 in respect of a share of the
beneficiary of the net income of the trust estate of any other year of income
in payment, or part payment, of that other tax.
Application of credit-trustee assessed under section 99 or 99A
"(4) If the trustee of a trust estate is entitled to a credit under
subsection 220AZB(4) in relation to the net income or a part of the net income
of the trust estate, the Commissioner must:
(a) if the amount of the credit does not exceed the tax payable under
section 99 or 99A in respect of that net income or part-apply the amount of
the credit in payment, or part payment, of that tax; and
(b) if the amount of the credit exceeds the tax payable under section 99 or
99A in respect of that net income or part-apply:
(i) so much of the amount of the credit as does not exceed that
tax in payment of that tax; and
(ii) so much of the excess as does not exceed the amount of any
tax payable by the trustee under section 99 or 99A in respect of the net
income or a part of the net income of the trust estate of any other year of
income in payment, or part payment, of that other tax.
Application of credit-no net income of trust
"(5) If the trustee of a trust estate is entitled to a credit under
subsection 220AZB(5) in relation to deductions made in a year of income from
reportable payments made to the trustee, the Commissioner must:
(a) if the amount of the credit does not exceed the amount of any tax
payable by the trustee under section 99 or 99A in respect of the net income or
a part of the net income of the trust estate of any other year of income-apply
the amount of the credit in payment, or part payment, of that tax; and
(b) if the amount of the credit exceeds the amount of any tax payable by the
trustee under section 99 or 99A in respect of the net income or a part of the
net income of the trust estate of any other year of income-apply so much of
the amount of the credit as does not exceed that tax in payment of that tax.
Deemed payment of tax
"(6) If, under subsection (2), (3), (4) or (5), the Commissioner has applied
an amount of a credit in payment of an amount of tax payable by a person, the
person is taken to have paid the amount so applied in payment of the tax as
at:
(a) the time at which it was so applied; or
(b) such earlier time as the Commissioner determines.
Recovery of excess credits
"(7) If the amount, or the sum of the amounts, applied or paid by the
Commissioner as a credit to which a person is entitled under this Division
exceeds the amount of the credit to which the person is so entitled, the
Commissioner may recover the amount of the excess as if it were income tax due
and payable by the person.
Higher education contribution etc.
"(8) This section has effect subject to section 221ZY (which deals with
higher education contribution and student financial supplement).
Interpretation
"(9) In this section:
(a) a reference to tax payable by a person other than a trustee is a
reference to an amount payable by the person to the Commonwealth under this
Act; and
(b) a reference to tax payable by the trustee of a trust estate in respect
of a share of a beneficiary of the net income of the trust estate of the year
of income is a reference to any amount payable by the trustee to the
Commonwealth under this Act in relation to the beneficiary in relation to the
year of income; and
(c) a reference to tax payable by the trustee of a trust estate under
section 99 or 99A in respect of the net income or a part of the net income of
the trust estate of a year of income is a reference to any amount payable by
the trustee to the Commonwealth under this Act in relation to the trust estate
in relation to the year of income, other than an amount payable by the trustee
in relation to a particular beneficiary.
"Subdivision M-Miscellaneous
Power of Commissioner to obtain information
"220AZD. Section 264 applies, for the purposes of this Division, as if the
reference in paragraph (1)(b) of that section to a person's income or
assessment were a reference to a matter relevant to the administration or
operation of this Division.
Note: Section 264 empowers the Commissioner to obtain information.
Declarations
"220AZE. A form that is approved by the Commissioner for the purposes of
this Division may be required to contain a declaration by the person using the
form.
Application of this Division to partnerships
"220AZF.(1) This Division applies to a partnership as if the partnership
were a person, but it applies with the following changes:
(a) obligations that would be imposed on the partnership are imposed instead
on each partner, but may be discharged by any of the partners;
(b) the partners are jointly and severally liable to pay an amount that
would be payable by the partnership;
(c) any offence against this Division that would otherwise be committed by
the partnership is taken to have been committed by each of the partners.
"(2) In a prosecution of a person for an offence that the person is taken to
have committed because of paragraph (1)(c), it is a defence if the person
proves that the person:
(a) did not aid, abet, counsel or procure the relevant act or omission; and
(b) was not in any way knowingly concerned in, or party to, the relevant act
or omission (whether directly or indirectly and whether by any act or omission
of the person).
Application of this Division to unincorporated companies
"220AZG.(1) This Division applies to an unincorporated company as if the
company were a person, but it applies with the following changes:
(a) obligations that would be imposed on the company are imposed instead on
each member of the committee of management of the company, but may be
discharged by any of those members;
(b) any offence against this Division that would otherwise be committed by
the company is taken to have been committed by each member of the committee of
management of the company.
"(2) In a prosecution of a person for an offence that the person is taken to
have committed because of paragraph (1)(b), it is a defence if the person
proves that the person:
(a) did not aid, abet, counsel or procure the relevant act or omission; and
(b) was not in any way knowingly concerned in, or party to, the relevant act
or omission (whether directly or indirectly and whether by any act or omission
of the person).
Review of decisions
"220AZH.(1) This section applies to:
(a) a decision of the Commissioner under any of the following provisions:
(i) subsection 220AN(2);
(ii) subsection 220AO(1);
(iii) section 220AR; and
(b) a decision of the Commissioner under section 220AU (other than a
decision relating to a penalty payable under subsection 220AS(3)).
"(2) A person who is dissatisfied with a decision made in relation to the
person may object against the decision in the manner set out in Part IVC of
the Taxation Administration Act 1953.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 6
Consequential amendments of the Principal Act
6. The Principal Act is amended as set out in the Schedule.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 7
Consequential amendments of other Acts
Crimes (Taxation Offences) Act 1980
7. (1) Section 3 of the Crimes (Taxation Offences) Act 1980 is amended by
inserting "220AG(1), 220AS(2), 220AT(3)," after "subsection" (first occurring)
in paragraph (g) of the definition of "income tax" in subsection (1).
Taxation (Interest on Overpayments) Act 1983
(2) Section 3 of the Taxation (Interest on Overpayments) Act 1983 is amended
by inserting after paragraph (b) of the definition of "relevant tax" in
subsection (1) the following paragraph:
"(baa) an amount payable to the Commissioner under paragraph 220AS(2)(a) or
220AT(3)(a) of the Income Tax Assessment Act 1936;".
Taxation Laws Amendment Act (No. 2) 1993
(3) Section 57 of the Taxation Laws Amendment Act (No. 2) 1993 is amended by
inserting "1AA or" after "Division" (second occurring) in paragraph (a) of the
definition of "net tax" in subsection (5).
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 8
Object
8. The object of this Subdivision is to ensure that FIF attribution credits
do not arise for the purpose of calculating the attributable income of a CFC.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 9
Certain provisions to be disregarded in calculating attributable income
9. Section 389 of the Principal Act is amended by omitting from paragraph
(a) "and 461" and substituting ", 461 and 605".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 10
Application
10. The amendment made by this Subdivision applies in relation to the
calculation of attributable income of any eligible period ending after 30 June
1994.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 11
Object
11. The object of this Subdivision is to ensure that double taxation does
not arise from the interaction of Parts X and XI with Divisions 6 and 6AAA of
Part III of the Principal Act where a taxpayer has an interest in a CFC held
through a CFT.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 12
Application of Division in respect of interests in non-resident trust
estates to which Part XI applies
12. Section 96A of the Principal Act is amended:
(a) by inserting after subsection (3) the following subsections:
"(3A) If:
(a) under section 529, the assessable income of a year of income of a CFT
includes an amount of foreign investment fund income that, under Part XI,
accrued to the CFT from a FIF in respect of a notional accounting period of
the FIF; and
(b) a statutory accounting period of a CFC coincides with that notional
accounting period of the FIF; and
(c) section 456 applies at the end of the statutory accounting period of the
CFC to a taxpayer who is a beneficiary in the CFT; and
(d) the FIF is the same entity as the CFC;
then the beneficiary's share of the net income of the CFT of the year of
income is to be calculated as if the amount of foreign investment fund income
had not been included in the CFT's assessable income.
"(3B) If:
(a) under section 529, the assessable income of a year of income of a CFT
includes an amount of foreign investment fund income that, under Part XI,
accrued to the CFT from a FIF in respect of a notional accounting period of
the FIF; and
(b) each of 2 or more statutory accounting periods of a CFC occurs partly
within that notional accounting period of the FIF; and
(c) section 456 applies at the end of each of these statutory accounting
periods of the CFC to a taxpayer who is a beneficiary in the CFT; and
(d) the FIF is the same entity as the CFC;
then the beneficiary's share of the net income of the CFT of the year of
income is to be calculated as if the amount of foreign investment fund income
had not been included in the CFT's assessable income.";
(b) by inserting in subsection (5) the following definitions:
" 'CFC' has the same meaning as in Part X;
'CFT' has the same meaning as in Part X;
'statutory accounting period' has the same meaning as in Part X.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 13
Attributable income of a trust estate
13. Section 102AAU of the Principal Act is amended:
(a) by omitting from sub-subparagraph (1)(c)(viii)(B) "and" and substituting
"or";
(b) by adding at the end of paragraph (1)(c) the following subparagraph:
"(ix) an excluded foreign investment fund income amount
(see subsections (7) and (8)); and";
(c) by adding at the end the following subsections:
"(7) For the purposes of subparagraph (1)(c)(ix), if:
(a) the non-resident trust estate concerned is a CFT; and
(b) under section 529, the assessable income of a year of income of the CFT
includes an amount of foreign investment fund income that, under Part XI,
accrued to the CFT from a FIF in respect of a notional accounting period of
the FIF; and
(c) a statutory accounting period of a CFC coincides with that notional
accounting period of the FIF; and
(d) wholly or partly because of the holding of an attribution tracing
interest in the CFT, section 456 applies at the end of the statutory
accounting period of the CFC to the attributable taxpayer in relation to whom
the attributable income is being calculated; and
(e) the FIF is the same entity as the CFC;
then the amount of foreign investment fund income is an excluded foreign
investment fund income amount for the purpose of calculating the attributable
income in relation to the attributable taxpayer.
"(8) For the purposes of subparagraph (1)(c)(ix), if:
(a) the non-resident trust estate concerned is a CFT; and
(b) under section 529, the assessable income of a year of income of a CFT
includes an amount of foreign investment fund income that, under Part XI,
accrued to the CFT from a FIF in respect of a notional accounting period of
the FIF; and
(c) each of 2 or more statutory accounting periods of a CFC occurs partly
within that notional accounting period of the FIF; and
(d) wholly or partly because of the holding of an attribution tracing
interest in the CFT, section 456 applies at the end of each of these statutory
accounting periods of the CFC to the attributable taxpayer in relation to whom
the attributable income is being calculated; and
(e) the FIF is the same entity as the CFC;
then the amount of foreign investment fund income is an excluded foreign
investment fund income amount for the purpose of calculating the attributable
income in relation to the attributable taxpayer.
"(9) In subsections (7) and (8):
'attribution tracing interest' has the same meaning as in Part X;
'CFT' has the same meaning as in Part X;
'FIF' has the same meaning as in Part XI;
'notional accounting period' has the same meaning as in Part XI;
'statutory accounting period' has the same meaning as in Part X.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 14
Object
14. The object of this Subdivision is to include foreign investment fund
income accruing to a listed country trust estate in its attributable income.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 15
Attributable income of a trust estate
15. Section 102AAU of the Principal Act is amended by omitting from
paragraph (1)(b) "other than eligible designated concession income in relation
to any listed country in relation to the year of income;" and substituting the
following words and subparagraphs "other than:
(i) eligible designated concession income in relation to any
listed country in relation to the year of income; or
(ii) amounts included under section 529 in the assessable income
of the trust estate of the year of income;".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 16
Application
16. The amendment made by this Subdivision applies to the calculation of
attributable income of the 1994-95 year of income and of all later years of
income.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 17
Object
17. The object of this Subdivision is to ensure that double taxation of
foreign investment fund income of a resident public unit trust does not arise
under subsection 96A(2) of the Principal Act.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 18
Application of Division in respect of interests in non-resident trust
estates to which Part XI applies
18. Section 96A of the Principal Act is amended by adding at the end of
subsection (2) the following word and paragraph:
"; and (e) in determining under sections 99 and 99A the extent (if any) to
which the trustee is to be assessed and liable to pay tax on the whole or part
of the net income of the trust estate of the year of income or any later year
of income, paragraphs (c) and (d) of this subsection are to be disregarded.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 19
Object
19. The object of this Subdivision is to repeal section 431B of the
Principal Act so that there is no double taxation of Part XI amounts included
in the attributable income of a CFC where an interim dividend is paid, or an
interim distribution of trust income is made, to the CFC.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 20
Repeal of section
20. Section 431B of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 21
Object
21. The object of this Subdivision is to ensure that corporate limited
partnerships are treated in the same way as companies for the purposes of
Parts X and XI of the Principal Act and related provisions.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 22
"Dividend" includes distribution of corporate limited partnership
Section 94L of the Principal Act is amended by inserting "or to a
dividend within the meaning of section 6" after "dividend".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 23
Repeal of section and substitution of new section
23. Section 94T of the Principal Act is repealed and the following section
is substituted:
Residence of corporate limited partnership
"94T. For the purposes of the income tax law, the partnership is:
(a) a resident; and
(b) a resident within the meaning of section 6; and
(c) a resident of Australia; and
(d) a resident of Australia within the meaning of section 6;
if and only if:
(e) the partnership was formed in Australia; or
(f) either:
(i) the partnership carries on business in Australia; or
(ii) the partnership's central management and control is in
Australia.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 24
Application
24. The amendments made by this Subdivision apply to assessments in respect
of income of the 1994-95 year of income and of all later years of income.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 25
Object
25. The object of this Subdivision is to ensure that a foreign investment
fund loss deduction under section 532 or 533 of the Principal Act is not
quarantined under section 79D or taken into account under section 160AFD of
that Act.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 26
Losses of previous years
26. Section 160AFD of the Principal Act is amended by inserting "(other than
a deduction under section 532 or 533)" after "any deduction" in the definition
of "foreign income deduction" in subsection (9).
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 27
Object
27. The object of this Subdivision is to ensure that, for the purposes of
working out deductions under Division 17 of Part XI of the Principal Act,
foreign investment fund losses are expressed in the same currency (i.e.
Australian dollars) as FIF attribution surpluses.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 28
Insertion of new section
28. After section 533 of the Principal Act the following section is inserted
in Division 17 of Part XI:
Foreign investment fund losses to be expressed in Australian currency
"533A. For the purposes of section 532 or 533, if the foreign investment
fund loss mentioned in that subsection is not expressed in Australian
currency, it is to be converted to the corresponding amount in Australian
currency in accordance with the rate of exchange applicable at the end of the
notional accounting period.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 29
Application
29. The amendment made by this Subdivision applies to notional accounting
periods ending after the commencement of the 1994-95 year of income.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 30
Object
30. The object of this Subdivision is to ensure that unapplied previous
foreign investment fund losses are calculated in the same currency as gross
foreign investment fund income for the purposes of subsections 542(2) and
600(2) of the Principal Act.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 31
Step 2-Calculation of foreign investment fund income
31. Section 542 of the Principal Act is amended by adding at the end the
following subsection:
"(8) For the purposes of applying subsections (5), (6) and (7) in working
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 121
Principal Act
121. In this Subdivision, "Principal Act" means the Sales Tax Assessment Act
1992*3*.
Sales Tax Assessment Act 1992
*3* No. 114, 1992, as amended. For previous amendments, see Nos. 150, 191, 210
and 224, 1992; Nos. 18, 44 and 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 122
Luxury motor vehicle for disabled person or exempt child care body
122. Section 49 of the Principal Act is amended by omitting from subsection
(1) "or 97" and substituting ", 97 or 144A".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 123
Schedule 1
123. Schedule 1 to the Principal Act is amended by inserting after credit
ground CR20 in Table 3 the following credit ground:
"CR20A
Tax borne before claimant became an exempt child care body ('an
ECCB')
Claimant became an ECCB under subsection 3B(1) of the Exemptions
and Classifications Act within 3 months after it first began to
provide any kind of child care referred to in paragraph 3B(1)(a)
of that Act.
Claimant has borne tax on a tax-bearing dealing:
(a) after 23 December 1993; and
(b) not more than 12 months before it became an ECCB.
The claimant was not entitled to quote for the dealing, but would
have been if it had been an ECCB at the time of the dealing.
the tax borne
the time the claimant became an ECCB".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 124
Application
124. The amendment made by section 122 applies to dealings with goods after
the commencement of that section.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 125
Principal Act
125. In this Subdivision, "Principal Act" means the Sales Tax (Exemptions
and Classifications) Act 1992*4*.
Sales Tax (Exemptions and Classifications) Act 1992
*4* No. 119, 1992, as amended. For previous amendments, see Nos. 131, 150, 167
and 224, 1992; and No. 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 126
Schedule 1
126. Schedule 1 to the Principal Act is amended by adding at the end of Item
144A the following subitem:
"(2) Subitem (1) does not apply to motor cars or station wagons (including
those known as four-wheel drive vehicles), if the taxable value of the taxable
dealing concerned is more than 67.1% of the motor vehicle depreciation limit
for the financial year in which the taxable dealing happens, unless the motor
vehicle:
(a) is specially fitted out for transporting disabled persons seated in
wheel chairs; and
(b) is not described in subitem (1) of exemption Item 96 or 97.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 127
Application
127. The amendments made by this Subdivision apply to dealings with goods
after the commencement of this section.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 128
Object
128. The amendments made by this Division provide for sales tax credits for
certain goods used in the alteration of goods that are exported.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 129
Principal Act
129. In this Division, "Principal Act" means the Sales Tax Assessment Act
1992*3*.
Sales Tax Assessment Act 1992
*3* No. 114, 1992, as amended. For previous amendments, see Nos. 150, 191, 210
and 224, 1992; Nos. 18, 44 and 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 130
General definitions
130. Section 5 of the Principal Act is amended:
(a) by inserting ", 9A" after "sections 9" in the definition of
"Australian-used goods";
(b) by inserting the following definition:
" 'export alteration goods' has the meaning given by section 15D;".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 131
Insertion of new section
131. After section 9 of the Principal Act the following section is
inserted:
Export alteration goods: affects meaning of "Australian-used goods"
"9A.(1) This section applies to Australian-used goods if:
(a) the export of the goods gave rise to a CR23 credit in relation to the
goods or goods that became an integral part of the goods; and
(b) the goods are later imported.
"(2) In applying the sales tax law at or after the time of the importation,
the goods are not taken to be Australian-used goods only because of an AOU of
the goods that happened before they were exported as mentioned in paragraph
(1)(a).".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 132
Insertion of new section
132. After section 15C of the Principal Act the following section is
inserted in Part 2:
Export alteration goods
"15D.(1) Goods are export alteration goods if:
(a) the goods are parts, fittings or accessories that are used by a person
('the claimant') exclusively in the alteration of other goods ('the altered
goods'); and
(b) as a result of that use, the goods become an integral part of the
altered goods; and
(c) after the goods become an integral part of the altered goods, either:
(i) the altered goods are exported by another person and that
person gives the claimant a declaration under subsection (2); or
(ii) the altered goods are exported by the claimant; and
(d) the goods were not used (other than in a manner covered by paragraphs
(a) and (b)) in the period commencing at the end of the alteration and
ending at the start of the export of the goods.
"(2) The declaration referred to in paragraph (1)(c) is a declaration that
either:
(a) the altered goods; or
(b) if the claimant has used the altered goods as parts, fittings or
accessories exclusively in the alteration of other goods-those other goods;
were exported by the person making the declaration and were not used (other
than in a manner covered by paragraphs (1)(a) and (b)) in the period
commencing at the end of the alteration and ending at the start of the export
of the goods. The declaration must be in writing in a form approved by the
Commissioner and must be signed by the person making the declaration.
"(3) The time when the goods become export alteration goods is the time when
the claimant exports the goods, or is given the declaration, as the case
requires.
"(4) In this section:
'alteration' includes repair, renovation or upgrading.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 133
Taxable dealing with goods imported after being exported for alteration
133. Section 42 of the Principal Act is amended by omitting from subsection
(1) "This" and substituting "Subject to section 42AA, this".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 134
Insertion of new section
134. After section 42 of the Principal Act the following section is
inserted:
Export alteration goods that are re-imported
"42AA.(1) This section applies to any taxable dealing with goods to which
section 9A applies.
"(2) If the taxable dealing is covered by section 42, the taxable value is
the amount calculated under that section plus the amount that would have been
the taxable value if the dealing had only involved the export alteration
goods.
"(3) If the taxable dealing is not covered by section 42, the taxable value
is the amount that would have been the taxable value if the dealing had only
involved the export alteration goods.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 135
Schedule 1
135. Schedule 1 to the Principal Act is amended by adding at the end of
Table 3 the following credit ground:
"CR23
Tax on export alteration goods
Claimant has borne tax on export alteration goods.
the tax borne on the goods to the extent that the claimant
has not passed it on
when the goods became export alteration goods".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 136
Application
136.(1) The amendments made by sections 130, 132 and 135 apply to goods
where the alteration of the goods occurred, or occurs, on or after 1 January
1993.
(2) The amendments made by sections 131, 133 and 134 apply in relation to
goods that are imported (after being exported) on or after the commencement of
this Division.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 137
Object
137. The object of this Division is to reduce the amount of the clawback of
CR9 credits to avoid double tax on parts used to repair the goods.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 138
Principal Act
138. In this Division, "Principal Act" means the Sales Tax Assessment Act
1992*3*.
Sales Tax Assessment Act 1992
*3* No. 114, 1992, as amended. For previous amendments, see Nos. 150, 191, 210
and 224, 1992; Nos. 18, 44 and 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 139
Clawback of CR9 credit on later sale of defective goods
139. Section 58 of the Principal Act is amended:
(a) by omitting from subsection (2) "The amount" and substituting "Subject
to subsection (2A), the amount";
(b) by inserting after subsection (2) the following subsection:
"(2A) If the claimant has borne tax on goods that were used as raw materials
in repairing the defective goods, the amount payable by the claimant is the
amount calculated using the formula in subsection (2) reduced by the amount of
the tax borne.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 140
Application
140. The amendments made by section 139 apply to amounts payable under
section 58 of the Principal Act in relation to liabilities arising from sales
of defective goods occurring after the commencement of this Division.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 141
Object
141. The object of this Division is to extend the periodic quoting
provisions of the Sales Tax Assessment Act 1992:
(a) to extend the period for which quotes may be made from 1 month to 1
year; and
(b) to allow unregistered persons to make periodic quotes based on an
exemption Item; and
(c) to allow unregistered persons to accept periodic quotes.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 142
Principal Act
142. In this Division, "Principal Act" means the Sales Tax Assessment Act
1992*3*.
Sales Tax Assessment Act 1992
*3* No. 114, 1992, as amended. For previous amendments, see Nos. 150, 191, 210
and 224, 1992; Nos. 18, 44 and 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 143
Periodic quoting
143. Section 85 of the Principal Act is amended:
(a) by omitting subsections (1) and (2) and substituting the following
subsections:
"(1) A person ('the quoter') may make a periodic quote under this section
for purchases that the quoter proposes to make from a person ('the supplier')
during the period, not exceeding 12 months, covered by the periodic quote.
"(2) If the quoter is a registered person and makes such a periodic quote on
or before the first day of the period to which the quote relates, the quoter
is taken to have quoted a registration number for all purchases during the
period from the supplier, other than purchases in respect of which the quoter
has notified the supplier in accordance with subsection (3).
"(2A) If the quoter is an unregistered person and makes such a periodic
quote on or before the first day of the period to which the quote relates, the
quoter is taken to have quoted an exemption declaration for all purchases
during the period from the supplier, other than purchases in respect of which
the quoter has notified the supplier in accordance with subsection (3).";
(b) by omitting from subsection (3) "month" and substituting "period";
(c) by inserting in subsection (4) "or (2A)" after "(2)".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 144
Manner in which quote must be made
144. Section 86 of the Principal Act is amended by omitting from subsection
(1) "monthly" and substituting "periodic".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 145
Savings
145.(1) A monthly quote made under section 85 of the Principal Act is taken
to be a periodic quote under section 85 of the amended Act that covers the
month concerned.
(2) In this section, "amended Act" means the Principal Act as amended by
this Act.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 146
Object
146. The amendments made by this Division extend the provisions in relation
to post-trial sales and post-trial leases.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 147
Principal Act
147. In this Division, "Principal Act" means the Sales Tax Assessment Act
1992*3*.
Sales Tax Assessment Act 1992
*3* No. 114, 1992, as amended. For previous amendments, see Nos. 150, 191, 210
and 224, 1992; Nos. 18, 44 and 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 148
Repeal of section and substitution of new section
148. Section 15B of the Principal Act is repealed and the following section
is substituted:
Post-trial sale or post-trial lease
"15B.(1) A sale by a person ('the claimant') is a post-trial sale and a
lease by a person (also 'the claimant') is a post-trial lease if:
(a) the sale or lease occurs after one or more exempt trial-leases or exempt
trial-loans in relation to the goods; and
(b) in the case of a lease-the lease is for the remainder of the statutory
period; and
(c) the purchaser or lessee, at or before the time of the sale or lease,
gives evidence to the claimant, in a form approved by the Commissioner, of the
purchaser's or lessee's intended use of the goods during the remainder of the
statutory period so as to satisfy an exemption Item; and
(d) immediately before the first exempt trial-lease or exempt trial-loan the
goods were assessable goods; and
(e) in the period starting at the end of the exempt trial-lease or exempt
trial-loan referred to in paragraph (d) and ending at the time of the sale or
lease:
(i) the goods were not sold by the claimant; and
(ii) any AOU of the goods was an exempt trial-lease or an exempt
trial-loan.
"(2) In this section:
'exempt trial-lease' means a lease of goods where, before the end of the
lease, the person to whom the goods are leased gives evidence to the lessor,
in a form approved by the Commissioner, that the lessee used, or intended to
use, the goods during the lease so as to satisfy an exemption Item;
'exempt trial-loan' means a loan of goods where, before the end of the loan,
the person to whom the goods are lent gives evidence to the lender, in a form
approved by the Commissioner, that the person used, or intended to use, the
goods during the loan so as to satisfy an exemption Item.
"(3) A reference in subsection (1) or (2) to a loan includes a reference to
a demonstration, and, in relation to a demonstration, a reference in that
subsection to use of goods by a person includes use by another person
demonstrating the goods to the person.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 149
Application
149. The amendments made by this Division apply to sales or leases where the
first, or only, exempt trial-lease or exempt trial-loan occurs after the
commencement of this Division.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 150
Principal Act
150. In this Division, "Principal Act" means the Sales Tax (Exemptions and
Classifications) Act 1992*4*.
Sales Tax (Exemptions and Classifications) Act 1992
*4* No. 119, 1992, as amended. For previous amendments, see Nos. 131, 150, 167
and 224, 1992; and No. 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 151
Object
151. The object of this Division is to provide a sales tax exemption or
credit for imported computer equipment for use by an RHQ company.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 152
Schedule 1
152. Schedule 1 to the Principal Act is amended:
(a) by inserting after Item 38 of the Table of Contents the following Item
in Sub-Chapter 1.5 of Chapter 1:
"38A. Computer related equipment for RHQ company";
(b) by inserting after Item 38 the following Item in Sub-Chapter 1.5 of
Chapter 1:
"Item 38A: (Computer related equipment for RHQ company) (1) Imported goods,
being computer related equipment for use by an RHQ company mainly in providing
regional headquarters support, if:
(a) at all times during the 9 months before the local entry, the goods:
(i) were in existence; and
(ii) were owned or leased by:
(A) the RHQ company; or
(B) a company ('the RHQ group company') that, at the time of the
local entry, was a group company in relation to the RHQ company; or
(C) a company that is a group company in relation to the RHQ
group company; and
(iii) were not leased or subleased to a person who is not covered
by subparagraph (ii); and
(b) the goods are locally entered within 2 years after the day on which the
first goods covered by this Item that are for use by the RHQ company are
locally entered.
(2) In this Item:
'computer equipment' includes:
(a) equipment for networking computers; or
(b) equipment mainly used in communications between computers; or
(c) monitors;
'computer related equipment' means:
(a) computer equipment; or
(b) equipment mainly used for producing, supplying, monitoring or regulating
power for computer equipment; or
(c) equipment mainly used for controlling the temperature in the area where
equipment covered by paragraph (a) or (b) is situated;
'provide regional headquarters support' has the same meaning as in
Subdivision CB of Division 3 of Part III of the Income Tax Assessment Act
1936;
'RHQ company' means:
(a) an RHQ company within the meaning of Subdivision CB of Division 3 of
Part III of the Income Tax Assessment Act 1936; or
(b) a transitional RHQ company within the meaning of subsection 154(4) of
the Taxation Laws Amendment Act (No. 3) 1994.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 153
Application
153. The amendments made by this Division apply to dealings with goods after
the commencement of this Division.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 154
Transitional
154.(1) The Sales Tax Assessment Act 1992 applies in relation to a
transitional RHQ company dealing as if the following credit ground were added
at the end of Table 3 in Schedule 1 to that Act:
"CR24
Transitional credit for a transitional RHQ company dealing
Claimant has borne tax on a transitional RHQ company dealing
within the meaning of subsection 154(3) of the Taxation Laws
Amendment Act (No. 3) 1994.
the tax borne, to the extent that the claimant has not passed
it on
at the commencement of section 154 of the Taxation Laws
Amendment Act (No. 3) 1994".
(2) If a taxpayer is entitled to a credit for a transitional RHQ company
dealing, the reference in paragraph (1)(b) of exemption Item 38A of the
Principal Act as amended by this Division to the day on which the first goods
covered by that Item are locally entered for use by the RHQ company concerned
is a reference to the day on which the first goods that are the subject of a
transitional RHQ company dealing are locally entered for use by that
transitional RHQ company.
(3) A dealing with imported goods is a "transitional RHQ company dealing"
if:
(a) the goods are computer related equipment for use by a transitional RHQ
company mainly in providing regional headquarters support; and
(b) at all times during the 9 months before the local entry, the goods:
(i) were in existence; and
(ii) were owned or leased by:
(A) the transitional RHQ company; or
(B) a company ("the RHQ group company") that, at the time of the
local entry, was a group company in relation to the transitional RHQ company;
or
(C) a company that is a group company in relation to the RHQ
group company; and
(iii) were not leased or subleased to a person who is not covered
by subparagraph (ii); and
(c) the dealing is after 14 December 1993 and before the commencement of
this section.
(4) The Treasurer may determine that a pre-approved company, or a group
company in relation to a pre-approved company, is a "transitional RHQ
company".
(5) The determination must:
(a) specify the day on which the company commences to be a transitional RHQ
company; and
(b) contain any other information as the Treasurer considers appropriate.
(6) A company is a "pre-approved company" if:
(a) before 15 December 1993, the Treasurer, or another Minister, agreed in
writing to provide the company with:
(i) a sales tax exemption for equipment; or
(ii) compensation for sales tax paid on equipment;
where the equipment was imported into Australia and was owned by the company
for at least 9 months before importation; or
(b) on or after 15 December 1993, and before the commencement of this
section, the Treasurer agreed in writing to give the company conditional
approval as an RHQ company.
(7) Determinations made under subsection (4) are disallowable instruments
for the purposes of section 46A of the Acts Interpretation Act 1901.
(8) In this section, "computer related equipment", "provide regional
headquarters support" and "RHQ company" have the same meaning as in exemption
Item 38A of the Principal Act as amended by this Division.
(9) In this section:
"group company" has the same meaning as in the Principal Act as amended by
this Division.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 155
Principal Act
155. In this Subdivision, "Principal Act" means the Sales Tax Assessment Act
1992*3*.
Sales Tax Assessment Act 1992
*3* No. 114, 1992, as amended. For previous amendments, see Nos. 150, 191, 210
and 224, 1992; Nos. 18, 44 and 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 156
General definitions
156. Section 5 of the Principal Act is amended by inserting the following
definition:
" 'always-exempt person' means a person whose use of goods of whatever kind
is always covered by an exemption Item, regardless of the way in which the
goods are used by the person;".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 157
Eligible repair goods
157. Section 15C of the Principal Act is amended:
(a) by omitting paragraph (1)(d) and substituting the following paragraph:
"(d) the exemption user gives the claimant:
(i) a declaration that the exemption user is an always-exempt
person; or
(ii) a declaration under subsection (2).";
(b) by omitting from subsection (2) "paragraph (1)(d)" and substituting
"subparagraph (1)(d)(ii)";
(c) by omitting the second sentence of subsection (2);
(d) by inserting after subsection (2) the following subsection:
"(2A) A declaration under subparagraph (1)(d)(i) or subsection (2) must be
in writing in a form approved by the Commissioner and signed by the exemption
user.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 158
Schedule 1
158. Schedule 1 to the Principal Act is amended by omitting column (4) of
Table 3 in relation to credit ground CR22 and substituting:
"(a) if the exemption user mentioned in section 15C is an always-exempt
person-the tax borne on the goods to the extent that the claimant has not
passed it on; or
(b) in any other case-the tax borne on the goods.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 159
Principal Act
159. In this Subdivision, "Principal Act" means the Sales Tax (Exemptions
and Classifications) Act 1992*4*.
Sales Tax (Exemptions and Classifications) Act 1992
*4* No. 119, 1992, as amended. For previous amendments, see Nos. 131, 150, 167
and 224, 1992; and No. 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 160
Interpretation
160. Section 3 of the Principal Act is amended by omitting from subsection
(2) the definition of "always-exempt person".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 161
Application
161. The amendments made by this Division apply to goods where the repair,
renovation or reconditioning of the goods mentioned in subsection 15C(1) of
the Sales Tax Assessment Act 1992 as amended by this Division occurs on or
after the day on which this Division commences.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 162
Principal Act
162. In this Division, "Principal Act" means the Sales Tax (Exemptions and
Classifications) Act 1992*4*.
Sales Tax (Exemptions and Classifications) Act 1992
*4* No. 119, 1992, as amended. For previous amendments, see Nos. 131, 150, 167
and 224, 1992; and No. 118, 1993.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 163
Schedule 1
163. Schedule 1 to the Principal Act is amended:
(a) by inserting in subitem 27(3) "or delivering" after "marketing";
(b) by omitting from subitem 169(2) "conduct the service" and substituting
"operate the wireless transceiver".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 164
Application
164.(1) The amendment made by paragraph 163(a) applies to dealings with
goods after the commencement of that paragraph.
(2) The amendment made by paragraph 163(b) applies to dealings with goods
after the commencement of that paragraph.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 165
Transitional
165. The Sales Tax Assessment Act 1992 applies in relation to dealings with
goods after 30 June 1993 and before the commencement of this section as if the
following credit ground were added at the end of Table 3 in Schedule 1 to that
Act:
"CR25
Transitional credit item for amended exemption Item 169
Claimant has borne tax on a tax-bearing dealing with goods.
The claimant was not entitled to quote for the dealing, but
would have been if exemption Item 169 as amended by the Taxation
Laws Amendment Act (No. 3) 1994 had been in force at the time of
the dealing.
the tax borne
at the commencement of section 165 of the Taxation Laws
Amendment Act (No. 3) 1994".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 166
Amendment
166. Regulation 76 of the Income Tax Regulations is amended by adding at the
end the following subregulation:
"(2) If:
(a) on or after 1 July 1995, an employee receives or is entitled to receive
payments of salary or wages in respect of a week or part of a week in a year
of income; and
(b) during that week or part of a week, the employee contributes to the
maintenance of:
(i) a dependant included in class 1 in the table in
subsection 159J(2) of the Act who is a resident; and
(ii) a dependant included in class 3 or 4 in that table who is a
resident; and
(c) the amount that, in respect of the year of income, is taken by section
159HA of the Act to replace the amount of $1,000 in relation to the dependant
included in class 1 in the table is not more than $1,452;
the employee is not entitled to have the concessional rebate applicable to the
dependant included in class 1 in the table taken into account in determining
the prescribed rate of deductions to be made for the purposes of section 221C
of the Act, by the employee's employer, from the payments of salary or
wages.".
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994
- SECT 167
Amendment or repeal of Income Tax Regulations
167. The amendment of the Income Tax Regulations by this Part does not
prevent the amendment or repeal, by regulations, of the Income Tax Regulations
as amended by this Part.
TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994 - SCHEDULE 1
AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936
CONSEQUENT UPON THE INTRODUCTION OF THE
REPORTABLE PAYMENTS SYSTEM
PART 1
Provision to be amended Amendment
Subsection After "Division" (first
occurring) insert "1AA,".
definition of "tax")
Subsection
218(6B) (paragraph (b) and
subparagraph (c)(iii) of the
definition of "tax")
Subsection
218(6B) (definition of
"taxpayer")
Subparagraph
222AGB(2)(e)(ii)
Paragraph 222AGD(1)(b)
222AGF(4)(a)
222AHE(4)(a)
222AID(4)(a)
222AIH(3)(a)
222AJB(1)(b)
Subsection
222AJB(3)
222AJC(1)
222AOA(1)
Paragraph
222AOB(1)(a)
222AOC(a)
Subparagraph After "Division" (second
occurring) insert "1AA or".
221AZE(6)(a)(i)
221AZP(1)(b)(i)
Subparagraph After "section" insert
"220AZC,".
Subsection
221ZY(1) (definition of
"relevant provision")
Subsection After "Divisions" insert
"1AA,".
222ALA(6)
Subsection After “Division” (second occurring)
insert “1AA,”.
Subsection After "Sections" insert
"220AY,".
222ANA(4)
PART 2
1. Subsection 221AV(2):
Before "3A" insert "1AA or".
2. Subsection 221YA(1):
Insert:
" 'reportable payment' has the same meaning as in Division 1AA;".
3. Subsection 221YC(1A):
Before "salary or wages," insert "reportable payments,".
4. Subsection 221YC(5):
Omit "Division 3A", substitute "Division 1AA or 3A from reportable
payments or".
5. Paragraphs 221YCAA(2)(m) and (q):
After "160AF" insert ", 220AZ, 220AZA, 220AZB".
6. After paragraph 221YDA(1)(d):
Insert:
"(daaa) the amount of the reportable payments from which deductions
have been, or will be, made in accordance with Division 1AA during
that year of income;".
7. Before paragraph 221YDA(1)(e):
Insert:
"(dba) the amount of the deductions that have been, and will be,
made under Division 1AA from reportable payments that have been, and
will be, made to the taxpayer during the year of income;".
8. Subparagraph 221YDA(2)(b)(ii):
(a) Omit "(1)(e)" insert "(1)(dba), (e)".
(b) After "in accordance with" insert "Division 1AA,".
9. Paragraph 221YDB(1A)(b):
After "includes" (first occurring) insert "reportable payments,".
10. Subparagraphs 221YDB(1A)(b)(i), (ii) and (iii):
Omit the subparagraphs, substitute:
"(i) if the income of the taxpayer of the year of income includes
reportable payments-the amount of any deductions made from those
payments under Division 1AA; and
(ii) if the income of the taxpayer of the year of income includes
salary or wages-the amount of any deductions made from that salary or
wages under sections 221C and 221D; and
(iii) if the income of the taxpayer of the year of income includes
prescribed payments-the amount of any deductions made from those
payments under Division 3A.".
11. Paragraph 221YDB(1AA)(d):
Omit all the words after "reduced", substitute:
"by the sum of the following amounts:
(i) if the income of the taxpayer of the year of income includes
reportable payments-the amount of any deductions made from those
payments under Division 1AA;
(ii) if the income of the taxpayer of the year of income includes
salary or wages-the amount of any deductions made from that salary or
wages under sections 221C and 221D;
(iii) if the income of the taxpayer of the year of income includes
prescribed payments-the amount of any deductions made from those
payments under Division 3A;".
12. Paragraph 221YDB(1ABA)(f) (subparagraph (ii) of the definition of
"Relevant amount"):
Omit all the words after "reduced", substitute:
"by the sum of the following amounts:
(A) if the income of the taxpayer of the year of income includes
reportable payments-the amount of any deductions made from those
payments under Division 1AA;
(B) if the income of the taxpayer of the year of income includes
salary or wages-the amount of any deductions made from that salary or
wages under sections 221C and 221D;
(C) if the income of the taxpayer of the year of income includes
prescribed payments-the amount of any deductions made from those
payments under Division 3A;".
13. Heading to Division 8 of Part VI:
After "Divisions" insert "1AA,".
14. Subsection 222AFB(1) (definition of "person"):
Insert before paragraph (a):
"(aa) a person as defined in section 220AC; and".
15. Subsection 222AFB(1) (definition of "remittance provision"):
Insert before paragraph (a):
"(aa) in Division 1AA-subsection 220AG(1);".
16. Subsection 222ALB(2):
After "subsection" (first occurring) insert "220AY(9),".
17. Subsection 222ANA(1):
After "Division" (second occurring) insert "1AA,".
18. Heading to Subdivision B of Division 9 of Part VI:
After "Division" insert "1AA,".
NOTE ABOUT SECTION HEADING
1. On the day on which Division 1AA of Part VI of the Income Tax
Assessment Act 1936 commences, the heading to section 222AJB of that
Act is altered by inserting "1AA," after "Division".
The
Act No. 138, 1994 amended as indicated in the Tables below.
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
138, 1994 | 28 Nov 1994 | |||
169, 1995 | 16 Dec 1995 | Schedule 10 (items 7, 8): | — | |
43, 1996 | 25 Oct 1996 | Schedule 3 (item 120): 28 Nov 1994 | — | |
147, 1997 | 14 Oct 1997 | Schedule 16 (items 2, 3): | — | |
75, 2010 | 28 June 2010 | Schedule 6 (item 62): 29 June 2010 | — |
(a) Subsections 2(8) and (9) of theTaxation Laws Amendment Act (No. 2) 1995 provide as follows:
(8) Item 7 of Schedule 10 is taken to have commenced immediately after the commencement
of section 92 of the
Taxation Laws Amendment Act (No. 3) 1994 .Section 92 of the
Taxation Laws Amendment Act (No. 3) 1994 commenced on 28 November 1994.
(9) Item 8 of Schedule 10 is taken to have commenced immediately after the commencement
of section 130 of the
Taxation Laws Amendment Act (No. 3) 1994 .Section 130 of the
Taxation Laws Amendment Act (No. 3) 1994 commenced on 28 November 1994.
(b) Subsection 2(11) of theTaxation Laws Amendment Act (No. 3) 1997 provides as follows:
(11) Items 2 and 3 of Schedule 16 are taken to have commenced immediately after the commencement
of Part 1 of the Schedule to the
Taxation Laws Amendment Act (No. 3) 1994 .Part 1 of the Schedule to the
Taxation Laws Amendment Act (No. 3) 1994 commenced on 28 November 1994.
am. = amended rep. = repealed rs. = repealed and substituted | |
Provision affected | How affected |
S. 92........................................ | am. No. 169, 1995 |
Div. 15 of Part 2....................... | rep. No. 75, 2010 |
S. 116...................................... | rep. No. 75, 2010 |
S. 130...................................... | am. No. 169, 1995 |
Schedule................................. | am. No. 147, 1997 |
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