Taxation Laws Amendment Act (No. 4) 1989 (Cth)

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Taxation Laws Amendment Act (No. 4) 1989

Act No. 167 of 1989 as amended

This compilation was prepared on 7 September 2010

taking into account amendments up to Act No. 75 of 2010

The text of any of those amendments not in force

on that date is appended in the Notes section

The operation of amendments that have been incorporated may be

affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,

Attorney-General’s Department, Canberra

    

TABLE OF PROVISIONS

 

PART 1 - PRELIMINARY

Section

 

1.

     Short title [see Note 1]

 

2.

     Commencement [see Note 1]

PART 2 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

 

3.

     Principal Act

 

4.

     Exemption of pay and allowances of members of Defence Force

 serving in special areas

 

5.

     Interpretation

 

6.

     Expenditure on scientific research

 

7.

     Expenditure on research and development activities

 

8.

     Insertion of new sections:

 

73C.

 Recouped expenditure on research and development

 activities

 

73D.

 Reduction of deductions

 

9.

     Election expenses of candidates for Parliament

 

10.

    Election expenses of candidates for local governments

 

11.

    Money paid before 1 July 1991 on shares in management and

 investment companies

 

12.

    Interpretation

 

13.

    Log book year of income

 

14.

    Retention, and production, of documents

 

15.

    Interpretation

 

16.

    Heading to Division 10D of Part III

 

17.

    Interpretation

 

18.

    Qualifying expenditure

 

19.

    Deductions in respect of qualifying expenditure

 

20.

    Reduction of deductions

 

21.

    Deduction in respect of destruction of building

 

22.

    Insertion of new section:

 

124ZL.

 Determination binding on Commissioner

 

23.

    Interpretation

 

24.

    Insertion of new section:

 

160ZSA.

 Election to treat grant of long term lease

 as disposal of freehold interest or head lease

 

25.

    Amendment of assessments

 

26.

    Sending of employment declaration to Commissioner

 

27.

    Group certificates

 

28.

    Employers other than group employers

 

29.

    Application of amendments

 

30.

    Transitional - car records lost or destroyed on or before

 31 May 1989

 

31.

    Transitional - modification of dividend imputation provisions

 resulting from reduction in the company tax rate

PART 3 - AMENDMENT OF THE INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986

 

33.

    Principal Act

 

34.

    Certificate as to research and development activities

PART 4 - AMENDMENT OF THE SALES TAX (EXEMPTIONS AND CLASSIFICATIONS)

ACT 1935

 

35.

    Principal Act

 

36.

    Amendment of First Schedule

 

37.

    Application of amendment

PART 5 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953

 

38.

    Principal Act

 

39.

    Insertion of new Division:

    Division 6 - Setting Aside etc. of Conviction or Order on Application

 of Commissioner

 

13CA.

 Setting aside etc. of conviction or order on application of

  Commissioner

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989 - LONG TITLE

 

 An Act to amend the law relating to taxation

 

PART 1 - PRELIMINARY

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 1

Short title [see Note 1]

 

 1. This Act may be cited as the Taxation Laws Amendment Act (No. 4) 1989.

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 2

Commencement [see Note 1]

 

 2. (1) Subject to this section, this Act commences on the day on which it

receives the Royal Assent.

 (2) Section 31 is to be taken to have commenced on 19 January 1989.

 (3) Part 4 is to be taken to have commenced on 25 January 1989.

 

PART 2 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 3

Principal Act

 

 3. In this Part, "Principal Act" means the Income Tax Assessment Act

1936.*1*

*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; and Nos. 2 and 11, 56, 70,

73, 97, 105, 107 and 129 of 1989.

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 4

Exemption of pay and allowances of members of Defence Force serving in

special

areas

 

 4. Section 23AC of the Principal Act is amended:

 (a) by omitting from paragraph (3) (c) "1 July 1965" and substituting "18

February 1989";

 (b) by omitting subsection (4) and substituting the following subsection:

 "(4) The regulations may provide that, by reason of a state of disturbance

in or affecting Namibia, an area outside Australia:

 (a) is to become a special area, for the purposes of this section, on a

specified date; or

 (b) is to be taken to have become a special area, for the purposes of this

section, on a specified date (which may be a date before the commencement of

the regulations or before the commencement of this subsection but not before

18 February 1989).".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 5

Interpretation

 

 5. Section 27A of the Principal Act is amended:

 (a) by omitting from subsection (1) the definitions of "approved deposit

fund" and "approved trustee" and substituting the following definitions:

 "'approved deposit fund' means:

 (a) a fund that is, or has at any time after the commencement of section 1

of the Taxation Laws Amendment Act (No. 4) 1989 been, an approved deposit fund

within the meaning of the Occupational Superannuation Standards Act 1987; or

 (b) a fund:

 (i) that was established before the commencement of section 1 of the

Taxation Laws Amendment Act (No. 4) 1989; and

 (ii) that was an approved deposit fund for the purposes of this

Subdivision as in force immediately before that commencement;

 'approved trustee' has the same meaning as in the Occupational

Superannuation Standards Act 1987 ;";

 (b) by omitting from subsection (1) the definitions of "approved purposes",

"approved rules", "eligible bank", "eligible financial corporation",

"registered auditor" and "related entity";

 (c) by omitting subsections (2) and (15).

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 6

Expenditure on scientific research

 

 6. Section 73A of the Principal Act is amended by adding at the end the

following subsection:

 "(9) This section does not apply in relation to payments made, or

expenditure incurred, after 30 June 1995 and, without limiting the generality

of the foregoing, subsection (5) does not apply in relation to plant acquired

after that date.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 7

Expenditure on research and development activities

 

 7. Section 73B of the Principal Act is amended:

 (a) by inserting before subsection (1) the following subsection:

 "(1AA) This section has effect subject to sections 73C and 73D.";

 (b) by omitting "and" from the end of paragraph (b) of the definition of

"aggregate research and development amount" in subsection (1);

 (c) by adding at the end of the definition of "aggregate research and

development amount" in subsection (1) the following word and paragraph:

 "and (d) the amount of any deduction that has been allowed, or is allowable,

under Division 10D in the assessment of the company in respect of income of

the year of income because of the use by the company of a building for the

purpose of carrying on research and development activities;";

 (d) by omitting paragraphs (a) and (b) of the definition of "deduction

acceleration factor" in subsection (1) and substituting the following

paragraphs:

 "(a) in the case of the year of income ending on 30 June 1993 or an earlier

year of income:

 (i) where the aggregate research and development amount in relation

to

the company in relation to the year of income is less than $50,000 - the

factor ascertained in accordance with the formula:

 11 A 100,000,

 6 A

where A is the number of whole dollars in the aggregate research and

development amount in relation to the company in relation to the year of

income; or

 (ii) otherwise - 1.5; or

 (b) in the case of the year of income ending on 30 June 1994 or a later year

of income:

 (i) where the aggregate research and development amount in relation

to

the company in relation to the year of income is less than $50,000 - the

factor ascertained in accordance with the formula:

 17 A 100,000,

 12 A

where A is the number of whole dollars in the aggregate research and

development amount in relation to the company in relation to the year of

income; or

 (ii) otherwise - 1.25;";

 (e) by omitting from the definition of "deduction period" in subsection (1)

"1991" and substituting "1995";

 (f) by omitting "of plant" and "the plant" from the definition of "pilot

plant" in subsection (1) and substituting "of other plant" and "the other

plant", respectively;

 (g) by omitting the definition of "plant" in subsection (1) and substituting

the following definition:

 "'plant' means:

 (a) things that are plant or articles within the meaning of subsection 54

(1) (whether or not depreciation is allowable under that subsection in respect

of the things); or

 (b) things to which subsection 54 (2) would apply if the carrying on of

research and development activities were the carrying on of a business for the

purpose of producing assessable income; or

 (c) pilot plant;";

 (h) by inserting after subsection (1B) the following subsection:

 "(1C) For the purposes of the application of the definition of 'plant

expenditure' in subsection (1), or for the purposes of the application of

paragraph (31) (a), in relation to an eligible company, a unit of plant is not

to be taken not to be for use by the company exclusively for the purpose of

the carrying on by or on behalf of the company of research and development

activities merely because the company has, on or after 21 November 1987,

entered into an agreement with another person (whether or not an eligible

company) for that person to use the unit of plant exclusively for the purpose

of the carrying on by or on behalf of that person of research and development

activities (whether or not the same as the first-mentioned activities).";

 (j) by adding at the end of subsection (3) "other than expenditure incurred

by the company on or after 1 July 1988 in the capacity of a trustee of a

public trading trust for the purposes of Division 6C in relation to the year

of income in which the expenditure was incurred";

 (k) by inserting after subsection (3) the following subsections:

 "(3A) Where expenditure (whether incurred wholly, or only partly, on

research and development activities) has, on or after 21 November 1987, been

incurred by a partnership in which, when the expenditure was incurred:

 (a) at least one partner was an eligible company; and

 (b) each other partner was an eligible company or was a body corporate that

was, or is taken to have been, registered under section 39F of the Industry

Research and Development Act 1986 as a research agency in respect of the class

of research and development activities on which the expenditure was incurred;

the following paragraphs have effect:

 (c) each partner is to be taken for the purposes of this section and

sections 73C and 73D to have incurred so much (if any) of the expenditure as

was incurred out of money contributed by the partner (otherwise than by way of

loan), whether in the year of income in which the expenditure was incurred or

a previous year of income;

 (d) if the partnership has, whether before or after the commencement of this

subsection, received, or become entitled to receive, a recoupment of, or a

grant in respect of, the whole or any part of the expenditure, each partner is

to be taken for the purposes of this section and sections 73C and 73D to have

received, or become entitled to receive, so much (if any) of the recoupment or

grant as is calculated in accordance with the formula:

amount of recoupment or grant partner's contribution total contribution;

where:

 'partner's contribution' means the total contribution made (otherwise than

by way of loan) by the partner to the funds of the partnership as at the time

when the recoupment or grant was received or the entitlement to the recoupment

or grant arose, as the case may be;

 'total contribution' means the total of the contributions made (otherwise

than by way of loan) by all the partners to the funds of the partnership as at

the time when the recoupment or grant was received or the entitlement to the

recoupment or grant arose, as the case may be;

 (e) any expenditure that a partner is to be so taken to have incurred, and

any recoupment or grant that a partner is to be so taken to have received or

become entitled to receive, is not to be taken into account in determining the

net income of the partnership or any partnership loss, as the case may be, of

the year of income; and

 (f) subject to paragraphs (c), (d) and (e), this section and sections 73C

and 73D apply in relation to each such partner that is an eligible company as

if that partner, and not the partnership, were, or had been, carrying on the

relevant project and activities, but so apply with such modifications to those

sections as are appropriate having regard to the partner's interest in the

partnership.

 "(3B) In determining whether a relationship between persons for the purpose

of engaging in research and development activities constitutes a partnership

for the purposes of this Act, the engaging by those persons in those

activities is to be taken to constitute carrying on a business with a view to

profit.";

 (m) by omitting from subsection (4) "1991" and substituting "1995";

 (n) by inserting after subsection (5) the following subsections:

 "(5AA) Subject to subsection (5AB), an eligible company is not to be taken

for the purposes of paragraph (5) (b) to have ceased during a year of income

to use a unit of plant exclusively for the purpose of the carrying on by or on

behalf of the company of research and development activities merely because on

or after 21 November 1987 and during the whole or a part of the year of income

another person (whether or not an eligible company) used the unit of plant,

with the consent of the company, exclusively for the purpose of the carrying

on by or on behalf of that other person of research and development activities

(whether or not the same as the activities for which the unit of plant has

been used by the company).

 "(5AB) Subsection (5AA) does not apply in relation to a unit of plant owned

by an eligible company in relation to a year of income unless the only reason

for any failure of the company to use the unit of plant during the whole or a

part of the year of income for the purpose of the carrying on by or on behalf

of the company of research and development activities was the use made of the

unit of plant during the year of income by another person as mentioned in that

subsection.";

 (o) by omitting subsection (8);

 (p) by inserting after subsection (9) the following subsection:

 "(9A) Subsection (9) does not apply in relation to expenditure incurred on

or after 21 November 1987 on behalf of a partnership by a partner in the

partnership in that partner's capacity as such a partner.";

 (q) by omitting subsection (13) and substituting the following subsection:

 "(13) Subject to this section, where an eligible company incurs contracted

expenditure during a year of income, the amount of that expenditure multiplied

by:

 (a) in the case of the year of income ending on 30 June 1993 or an earlier

year of income - 1.5; or

 (b) in the case of the year of income ending on 30 June 1994 or a later year

of income - 1.25;

is allowable as a deduction from the assessable income of the company of the

year of income.";

 (r) by inserting after subsection (15) the following subsection:

 "(15A) Where an eligible company has, whether before or after the

commencement of this subsection, received, or become entitled to receive, any

consideration in respect of the use, by another person, as mentioned in

subsection (5AA), of a unit of plant, one-half of the total amount or value of

that consideration shall be applied in the reduction of any deduction or

deductions that has or have been allowed, or would but for this subsection be

allowable, under subsection (15) from the assessable income of the company of

any year of income in respect of that unit of plant.";

 (s) by omitting from subsection (16) "1991" (wherever occurring) and

substituting "1995";

 (t) by omitting from subsection (16) "1992" and substituting "1996";

 (u) by omitting from subsection (16) "1993" (wherever occurring) and

substituting "1997";

 (w) by inserting after subsection (24) the following subsection:

 "(24A) For the purposes of paragraph (23) (c) or (24) (c), a company is not

to be taken not to have used a unit of plant before it was disposed of, lost

or destroyed exclusively for the purpose of the carrying on by or on behalf of

the company of research and development activities merely because of either or

both of the following:

 (a) another person used the unit of plant as mentioned in subsection (5AA);

 (b) the company failed to use the unit of plant for the reason mentioned in

subsection (5AB).".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 8

 

 8. After section 73B of the Principal Act the following sections are

inserted:

Recouped expenditure on research and development activities

 "73C. (1) For the purposes of interpretation, this section is to be read and

construed as if it were part of section 73B.

 "(2) This section applies where:

 (a) an eligible company has, at any time during the deduction period,

incurred expenditure (in this section called the 'relevant expenditure') on

research and development activities that formed or form part of a particular

project carried on by or on behalf of the company; and

 (b) the company has, whether before or after the commencement of this

section, received, or become entitled to receive, a recoupment of, or a grant

in respect of, the whole or any part of the relevant expenditure by or from

the Commonwealth, a State or a Territory or an authority constituted by or

under a law of the Commonwealth, of a State or of a Territory.

 "(3) Where this section applies to a company in respect of relevant

expenditure in relation to a particular project:

 (a) the relevant expenditure is subject to the application of clawback in

accordance with this section; and

 (b) for the purposes of this section the initial clawback amount in relation

to the relevant expenditure is an amount equal to twice the amount, or twice

the total of the amounts, as the case may be, that the company has received,

or become entitled to receive, as a recoupment of, or as a grant in respect

of, any of the relevant expenditure as mentioned in paragraph (2) (b).

 "(4) A deduction is not allowable, and is to be taken never to have been

allowable, under section 73B in respect of any relevant expenditure that was

incurred before 21 November 1987 and in respect of which this section applies

to the company, and that expenditure is, subject to the provisions of this

section relating to clawback, to be disregarded for the purposes of the

application of section 73B to the company.

 "(5) The following subsections apply only if the relevant expenditure

includes or consists wholly of, expenditure incurred on or after 21 November

1987.

 "(6) Where the relevant expenditure includes both expenditure incurred

before 21 November 1987 and expenditure incurred on or after that date:

 (a) if the initial clawback amount is equal to or less than the relevant

expenditure that was incurred before that date, clawback applies to so much of

the relevant expenditure that was incurred before that date as does not exceed

the initial clawback amount; or

 (b) if the initial clawback amount exceeds the relevant expenditure that was

incurred before that date, the following provisions have effect:

 (i) clawback applies to so much of the relevant expenditure as was

incurred before that date;

 (ii) if the excess (in the following subparagraphs called the 'excess

clawback amount') is equal to or greater than so much of the relevant

expenditure as was or is incurred on or after that date (in this subsection

called the 'deductible relevant expenditure') - clawback applies to the whole

of the deductible relevant expenditure;

 (iii) if the excess clawback amount is less than the deductible

relevant expenditure - clawback applies to so much of the deductible relevant

expenditure as does not exceed the excess clawback amount;

 (iv) for the purpose of applying clawback to deductible relevant

expenditure as mentioned in subparagraph (iii):

 (A) regard is to be had first to the earliest year of income of the

company in which any deductible relevant expenditure was incurred and then, if

necessary, in chronological order to each later year of income; and

 (B) to the extent that clawback is applied to deductible relevant

expenditure incurred in a year of income of the company, the excess clawback

amount to be applied to such expenditure incurred in a later year of income is

reduced accordingly; and

 (C) if the part of the excess clawback amount that is applicable to

deductible relevant expenditure incurred in a year of income is less than that

expenditure and that expenditure comprises 2 or more kinds of expenditure -

that part of the excess clawback amount is to be apportioned among those kinds

of expenditure in such manner as the Commissioner determines, being an

apportionment that will minimise any reduction in the deduction allowable to

the company under section 73B in respect of that expenditure.

 "(7) Where the relevant expenditure consists wholly of expenditure incurred

on or after 21 November 1987 the following provisions have effect:

 (a) if the initial clawback amount is equal to or greater than the relevant

expenditure - clawback applies to the whole of that expenditure;

 (b) if the initial clawback amount is less than the relevant expenditure -

clawback applies to so much of the relevant expenditure as does not exceed the

initial clawback amount;

 (c) for the purpose of applying clawback to relevant expenditure as

mentioned in paragraph (b):

 (i) subject to subparagraph (ii), regard is to be had to the years of

income of the company in the following order:

 (A) the year of income, or, in chronological order, each year of

income, in which the company received, or became entitled to receive, an

amount that is taken into account in ascertaining the initial clawback

amount;

 (B) in reverse chronological order, each year of income before the

year, or the earliest year, of income referred to in sub-subparagraph (A);

 (C) in chronological order, each year of income to which regard has

not

been had under sub-subparagraph (A) or (B); and

 (ii) if the company did not receive, or become entitled to receive,

any

part of the initial clawback amount until after the last year of income in

which any of the relevant expenditure was incurred, regard is to be had first

to the latest year of income in respect of which a deduction was allowed, or

is allowable, under section 73B in respect of any of that expenditure and

then, in reverse chronological order, to each of the earlier years of income;

and

 (iii) to the extent that clawback is applied to relevant expenditure

incurred in a year of income of the company, the initial clawback amount to be

applied to such expenditure incurred in another year of income is reduced

accordingly; and

 (iv) if the part of the initial clawback amount that is applicable to

relevant expenditure incurred in a year of income is less than that

expenditure and that expenditure comprises 2 or more kinds of expenditure -

that part of the initial clawback amount is to be apportioned among those

kinds of expenditure in such manner as the Commissioner determines, being an

apportionment that will minimise any reduction in the deduction allowable to

the company under section 73B in respect of that expenditure.

 "(8) Where clawback applies to contracted expenditure incurred on or after

21 November 1987, subsection 73B (13) has effect in relation to that

expenditure as if there were omitted from that subsection the following words

and paragraphs:

 'multiplied by:

 (a) in the case of the year of income ending on 30 June 1993 or an earlier

year of income - 1.5; or

 (b) in the case of the year of income ending on 30 June 1994 or a later year

of income - 1.25;'.

 "(9) Where clawback applies to expenditure (other than contracted

expenditure) incurred on or after 21 November 1987, no deduction acceleration

factor applies in respect of that expenditure for the purposes of section

73B.

 "(10) Except as provided by subsections (8) and (9), the application of

clawback to any expenditure does not have any effect for the purposes of

section 73B.

Reduction of deductions

 "73D. (1) For the purposes of interpretation, this section is to be read and

construed as if it were part of section 73B.

 "(2) Where:

 (a) an eligible company has, on or after 21 November 1987, incurred

expenditure on research and development activities that formed or form part of

a particular project carried on by or on behalf of the company; and

 (b) the company has, whether before or after the commencement of this

section, received, or become entitled to receive, as a recoupment of, or as a

grant in respect of, any of that expenditure an amount or amounts that has not

or have not been, and will not be, included in the assessable income of the

company of any year of income;

the deduction, or the sum of the deductions, that, but for this subsection,

would be allowable under section 73B (as affected by section 73C) in respect

of the expenditure referred to in paragraph (a) in the assessment or

assessments of the company in respect of income of any year or years of income

is reduced by an amount equal to so much of that deduction or sum as does not

exceed the amount or the total of the amounts referred to in paragraph (b).

 "(3) In applying subsection (2):

 (a) subject to paragraph (b), regard is to be had to the years of income of

the company in the following order:

 (i) the year of income, or, in chronological order, each year of

income, in which the company received, or became entitled to receive, an

amount referred to in paragraph (2) (b);

 (ii) in reverse chronological order, each year of income before the

year, or the earliest year, of income referred to in subparagraph (i);

 (iii) in chronological order, each year of income to which regard has

not been had under subparagraph (i) or (ii); and

 (b) if the company did not receive, or become entitled to receive, any

amount referred to in paragraph (2) (b) until after the last year of income in

which any of the expenditure referred to in paragraph (2) (a) was incurred,

regard is to be had first to the latest year of income in respect of which a

deduction was allowed, or is allowable, under section 73B in respect of any of

that expenditure and then, in reverse chronological order, to each of the

earlier years of income.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 9

Election expenses of candidates for Parliament

 

 9. Section 74 of the Principal Act is amended by inserting in subsection (1)

", of the Legislative Assembly for the Australian Capital Territory" after

"State".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 10

Election expenses of candidates for local governments

 

 10. Section 74A of the Principal Act is amended by omitting "or the

Australian Capital Territory House of Assembly" from the definition of

"eligible election expenditure" in subsection (1).

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 11

Money paid before 1 July 1991 on shares in management and investment

companies

 

 11. Section 77F of the Principal Act is amended:

 (a) by inserting in paragraph (2) (b) "and before 1 July 1991" after "after

13 September 1983" (first occurring);

 (b) by omitting "and" from the end of paragraph (15) (a);

 (c) by inserting after paragraph (15) (a) the following paragraph:

 "(aa) the company is granted a licence before 1 July 1991; and".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 12

Interpretation

 

 12. Section 82KT of the Principal Act is amended:

 (a) by omitting from the end of paragraph (1A) (b) "and";

 (b) by omitting from paragraph (1A) (c) "transport allowance payment or"

(wherever occurring);

 (c) by inserting in subparagraph (1A) (c) (ii) ", or any transport allowance

payment in respect of that travel," after "that travel";

 (d) by adding at the end of subsection (1A) the following word and

paragraph:

 "; and (d) where, as a result of alterations after 29 October 1986 to an

industrial instrument (not being alterations that are taken by paragraph (b)

to have been made on 29 October 1986), an additional amount is paid to an

employee under the instrument as a transport allowance payment in respect of

travel:

 (i) the additional amount is not an eligible transport payment; and

 (ii) the question of whether any other transport allowance payment in

respect of that travel, or any car expense reimbursement payment in respect of

that travel, is an eligible transport payment shall be determined as if the

additional amount had not been paid or payable in respect of the travel.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 13

Log book year of income

 

 13. Section 82KTG of the Principal Act is amended by omitting from

sub-subparagraph (g) (iii) (A) "his or her return" and substituting "the

taxpayer's car records".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 14

Retention, and production, of documents

 

 14. Section 82KZA of the Principal Act is amended:

 (a) by inserting in paragraphs (1) (b), (3) (e), (5) (b) and (7) (a) "car

records," before "log book records";

 (b) by inserting after subsection (7A) the following subsection:

 "(7B) For the purposes of this section, car records of a taxpayer for a year

o income (in this subsection called the 'records year of income') in relation

to a car shall be taken to relate to a car expense incurred by the taxpayer in

a year of income (in this subsection called the 'current year of income') in

relation to the car if, and only if:

 (a) the records year of income is the same as the current year of income;

or

 (b) both of the following conditions are satisfied:

 (i) the current year of income is not a log book year of income of

the

taxpayer in relation to the car;

 (ii) the records year of income is:

 (A) the last log book year of income of the taxpayer in relation to

the

car before the current year of income; or

 (B) a year of income later than that last log book year of income and

earlier than the current year of income.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 15

Interpretation

 

 15. Section 124ZA of the Principal Act is amended by adding at the end the

following subsection:

 "(25) For the purposes of the application of this Division, other than

paragraph (5) (a), in determining the amount of a deduction allowable under

section 124ZC or 124ZE in respect of an amount of qualifying expenditure in

respect of a building, where:

 (a) because of section 160ZSA, a person is taken for the purposes of Part

IIIA to have disposed of an asset, being:

 (i) a building or a part of a building; or

 (ii) the whole or a part of an estate in fee simple; or

 (iii) the whole or a part of a lease or sublease; and

 (b) immediately before the grant of the new lease mentioned in section

160ZSA, the person is the owner for the first-mentioned purposes (whether

because of one or more previous applications of this subsection or otherwise)

of whichever of the following is applicable:

 (i) if subparagraph (a) (i) of this subsection applies - the building

or the part of the building, as the case may be;

 (ii) if subparagraph (a) (ii) or (iii) of this subsection applies -

any

building or part of a building that is in the area to which the asset relates;

then, subject to any subsequent application of this subsection, the following

provisions have effect:

 (c) the holder of the new lease is to be taken to be and to have been, at

all times during the subsistence of the new lease, the owner of the building

or the part of the building mentioned in paragraph (b) of this subsection;

 (d) no other person is to be taken to be the owner of that building or that

part of that building at any time during the subsistence of the new lease.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 16

Heading to Division 10D of Part III

 

 16. The heading to Division 10D of Part III of the Principal Act is amended

by omitting " Income-Producing ".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 17

Interpretation

 

 17. Section 124ZF of the Principal Act is amended:

 (a) by inserting in subsection (1) the following definition:

 " 'research and development activities' means activities that:

 (a) in the case of activities carried on by an eligible company as defined

by section 73B - are research and development activities for the purposes of

that section; or

 (b) in the case of activities carried on by a person other than an eligible

company as so defined - would be research and development activities for the

purposes of section 73B if references in subsection (2A) of that section to an

eligible company included references to a person other than an eligible

company;

and in either case are carried on by the eligible company or other person in

connection with a business carried on by that company or person for the

purpose of gaining or producing assessable income;";

 (b) by adding at the end of subsection (3) "or, if that time occurred or

occurs on or after 21 November 1987, for the purpose of carrying on research

and development activities";

 (c) by adding at the end the following subsection:

 "(16) For the purposes of the application of this Division in determining

the amount of a deduction allowable under section 124ZH or 124ZK in respect of

an amount of qualifying expenditure in respect of a building, where:

 (a) because of section 160ZSA, a person is taken for the purposes of Part

IIIA to have disposed of an asset, being:

 (i) a building or a part of a building; or

 (ii) the whole or a part of an estate in fee simple; or

 (iii) the whole or a part of a lease or sublease; and

 (b) immediately before the grant of the new lease mentioned in section

160ZSA, the person is the owner for the first-mentioned purposes (whether

because of one or more previous applications of this subsection or otherwise)

of whichever of the following is applicable:

 (i) if subparagraph (a) (i) of this subsection applies - the building

or the part of the building, as the case may be;

 (ii) if subparagraph (a) (ii) or (iii) of this subsection applies -

any

building or part of a building that is in the area to which the asset

relates;

then, subject to any subsequent application of this subsection, the following

provisions have effect:

 (c) the holder of the new lease is to be taken to be and to have been, at

all times during the subsistence of the new lease, the owner of the building

or the part of the building mentioned in paragraph (b) of this subsection;

 (d) no other person is to be taken to be the owner of that building or that

part of that building at any time during the subsistence of the new lease.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 18

Qualifying expenditure

 

 18. Section 124ZG of the Principal Act is amended:

 (a) by omitting from paragraph (2A) (d) "or was for residential use"

(wherever occurring) and substituting "was for residential use, or, in the

case of a building, or an extension, alteration or improvement, that commenced

to be constructed on or after 21 November 1987, was for use for the purpose of

the carrying on by or on behalf of that person of research and development

activities or was for disposal by that person to another person for use for

the purpose of the carrying on by or on behalf of that other person of

research and development activities";

 (b) by adding at the end of subsection (3) "or expenditure in respect of

which a deduction is allowable, or would be allowable if the property were for

use for the purpose of the carrying on of research and development activities,

under section 73B".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 19

Deductions in respect of qualifying expenditure

 

 19. Section 124ZH of the Principal Act is amended by adding at the end the

following subsection:

 "(6) Where a taxpayer that is an eligible company for the purposes of

section 73B would, but for this subsection, be entitled to a deduction under

this section by virtue of its using the whole or a part of the prescribed

part, or of a part of the prescribed part, of a building for the purpose of

carrying on research and development activities during the whole or a part of

a year of income, the company is not entitled to that deduction unless the

company was, during the whole or that part, as the case may be, of that year

of income, registered under section 39J or 39P of the Industry Research and

Development Act 1986 in relation to that year of income.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 20

Reduction of deductions

 

 20. Section 124ZJ of the Principal Act is amended by inserting in

subparagraphs (1) (b) (i) and (ii) "or carrying on research and development

activities" after "income".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 21

Deduction in respect of destruction of building

 

 21. Section 124ZK of the Principal Act is amended by inserting in paragraphs

(1) (e) and (2) (e) "or carrying on research and development activities" after

"income".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 22

 

 22. After section 124ZK of the Principal Act the following section is

inserted in Division 10D of Part III:

Determination binding on Commissioner

 "124ZL. If the Industry Research and Development Board established by the

Industry Research and Development Act 1986 gives to the Commissioner a

certificate stating whether particular activities carried on by or on behalf

of a specified person were research and development activities, that

certificate is binding on the Commissioner for the purpose of making an

assessment of the person's taxable income of any year of income in which those

activities were carried on.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 23

Interpretation

 

 23. Section 160APA of the Principal Act is amended by omitting "registered

organisations within the meaning of Division 8A of Part III" from the

definition of "general company tax rate" and substituting "registered

organizations or life assurance companies".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 24

 

 24. After section 160ZS of the Principal Act the following section is

inserted:

Election to treat grant of long term lease as disposal of freehold interest or

head lease

 "160ZSA. (1) If:

 (a) either of the following subparagraphs applies:

 (i) after 16 November 1988, a taxpayer (in this section called the

'lessor') who holds an estate in fee simple (in this section called the

'freehold interest') grants a lease (in this section called the 'new lease')

of the whole or a part of the area to which the freehold interest relates;

 (ii) after 16 November 1988, a taxpayer (in this section also called

the 'lessor') who holds a lease of land (in this section called the 'head

lease') grants a sublease (in this section also called the 'new lease') of the

whole or a part of the area to which the head lease relates; and

 (b) the new lease is an eligible long term lease; and

 (c) the lessor makes an election in accordance with subsection (2) that this

section apply in relation to the grant of the new lease;

the following provisions have effect for the purposes of this Part:

 (d) section 160ZS does not apply in relation to the lessor in relation to

the grant of the new lease;

 (e) subsection 160ZT (1) does not apply in relation to the lessor in

relation to the new lease;

 (f) this subsection (other than paragraph (n)) is to be disregarded for the

purposes of the application of this Part (including section 160ZS and

subsection 160ZT (1)) in relation to the lessee under the new lease;

 (g) the lessor is to be taken, at the time of the grant of the new lease, to

have disposed of:

 (i) in a case where the area to which the new lease relates is only

part of the area to which the freehold interest or head lease relates:

 (A) the part of the freehold interest or head lease that corresponds

to

that area; and

 (B) any building or other improvement that is taken to be an asset

separate from the freehold interest or head lease and that is in that area;

or

 (ii) in a case where the area to which the new lease relates is the

whole of the area to which the freehold interest or head lease relates:

 (A) the freehold interest or head lease; and

 (B) any building or other improvement that is taken to be an asset

separate from the freehold interest or head lease and that is in that area;

 (h) the consideration received by the lessor in respect of each of those

disposals is whichever is the greatest of the following:

 (i) so much of the market value of the freehold interest or head

lease,

immediately before the grant of the new lease, as is attributable to the area,

building or improvement concerned;

 (ii) so much of the market value of the freehold interest or head

lease, immediately before the grant of the new lease, (ascertained on the

assumption that the grant of the new lease was never proposed to take place)

as is attributable to the area, building or improvement concerned;

 (iii) so much of the premium paid or payable for the grant of the new

lease as is attributable to the area, building or improvement concerned;

 (j) the lessor is to be taken to have immediately re-acquired each asset, or

part of an asset, disposed of without having paid or given any consideration

in respect of the re-acquisition;

 (k) in determining the cost base, indexed cost base or reduced cost base to

the lessor of a re-acquired asset or part of an asset, no account is to be

taken of any liability that arose before the re-acquisition or any costs or

expenditure that were incurred before the re-acquisition;

 (m) any expenditure incurred by the lessor in obtaining:

 (i) the consent of the lessee to the variation or waiver of any of

the

terms of the new lease; or

 (ii) the forfeiture or surrender of the new lease;

is to be taken, for the purposes of ascertaining the cost base, the indexed

cost base or the reduced cost base to the lessor of the re-acquired asset

covered by sub-subparagraph (g) (i) (A) or (ii) (A), to be expenditure to

which paragraph 160ZH (1) (c), (2) (c) or (3) (c), as the case may be,

applies;

 (n) if the new lease relates to one or more units of property for which

depreciation is or was allowable to the lessor under section 54 in respect of

any year of income:

 (i) the new lease is not to be taken to relate to any such unit of

property; and

 (ii) the lessor is to be taken, in addition to granting the new

lease,

to have granted a separate lease of each such unit of property; and

 (iii) the lessor is not to be taken to have disposed of any such unit

of property because of paragraph (g); and

 (iv) in determining the market value or premium mentioned in

subparagraph (h) (i), (ii) or (iii), any such unit of property is to be

disregarded.

 "(2) An election for the purposes of subsection (1) must be lodged with the

Commissioner on or before the date of lodgment of the lessor's return of

income for the later of the following years of income:

 (a) the year of income in which the grant of the new lease took place;

 (b) the year of income in which this section commenced;

or within such further period as the Commissioner allows.

 "(3) The new lease is an eligible long term lease if, and only if:

 (a) the new lease was granted for a term of at least 50 years; and

 (b) at the time the new lease was granted, it was reasonable to expect that

the new lease would continue for at least 50 years; and

 (c) the terms of the new lease are substantially the same as:

 (i) if the new lease is a sublease - the terms of the head lease; or

 (ii) if the new lease is not a sublease - the terms applying to the

lessor in respect of the land to which the new lease relates.

 "(4) A reference in this section to a building includes a reference to a

part of a building.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 25

Amendment of assessments

 

 25. Section 170 of the Principal Act is amended by inserting in subsection

(10) "sections 73C and 73D," before "subsection 75B (4)".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 26

Sending of employment declaration to Commissioner

 

 26. Section 202CD of the Principal Act is amended by omitting subsection (6)

and substituting the following subsection:

 "(6) The employer shall retain the copy of an employment declaration until

the second 1 July after the day on which the declaration ceases to have

effect.".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 27

Group certificates

 

 27. Section 221F of the Principal Act is amended:

 (a) by inserting after subsection (5G) the following subsection:

 "(5H) If:

 (a) an employer issues a group certificate to an employee in respect of an

eligible termination payment made by the employer; and

 (b) the employee has, in accordance with the regulations, quoted his or her

tax file number in a document given to the employer in relation to that

eligible termination payment;

the employer shall include the number in the group certificate.";

 (b) by omitting "or" from the end of paragraph (15) (aa);

 (c) by inserting after paragraph (15) (aa) the following paragraph: "(ab)

subsection (5H); or".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 28

Employers other than group employers

 

 28. Section 221G of the Principal Act is amended:

 (a) by omitting "and" from the end of subparagraph (2B) (e) (ia);

 (b) by inserting after subparagraph (2B) (e) (ia) the following

subparagraph:

 "(ib) include, on each such tax check sheet in respect of an employee who

has, in accordance with the regulations, quoted his or her tax file number in

a document given to the employer in connection with such an eligible

termination payment, the employee's tax file number; and".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 29

Application of amendments

 

 29. (1) In this section:

 "amended Act" means the Principal Act as amended by this Act.

 (2) The amendments made by section 4 apply to special service on or after 18

February 1989.

 (3) The amendments made by paragraphs 7 (f) and (g) apply in relation to

expenditure incurred on or after 21 November 1987.

 (4) The amendment made by section 9 applies to assessments in respect of

income of the year of income commencing on 1 July 1988 and of all subsequent

years of income.

 (5) The amendment made by section 10 applies in relation to expenditure

incurred after the commencement of this subsection.

 (6) The amendments made by section 12 apply in relation to an expense

incurred by a taxpayer in the year of income commencing on 1 July 1988 or in a

subsequent year of income.

 (7) The amendment made by section 13 applies in relation to an expense

incurred by a taxpayer in a year of income commencing on or after 1 July

1986.

 (8) Subject to this section, the amendments made by section 14 apply in

relation to an expense incurred by a taxpayer in the year of income commencing

on 1 July 1989 or in a subsequent year of income.

 (9) Subsection 82KZA (3) of the amended Act does not apply in relation to a

notice served before the commencement of this subsection.

 (10) The amendment made by section 26 does not apply in relation to

declarations that ceased to have effect before 1 July 1989.

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 30

Transitional - car records lost or destroyed on or before 31 May 1989

 

 30. If a document (in this subsection called the "original document"), being

car records of a taxpayer for a year of income:

 (a) is lost or destroyed on or before 31 May 1989; and

 (b) the Commissioner is satisfied that the taxpayer has a document (in this

subsection called the "substitute document") that:

 (i) is a copy of the original document; or

 (ii) properly records all of the matters set out in the original

document;

the substitute document shall be taken for the purposes of Subdivision F of

Division 3 of Part III of the Principal Act as amended by this Act to be, and

to have been at all times after the original document was lost or destroyed,

the original document.

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 31

Transitional - modification of dividend imputation provisions resulting from

reduction in the company tax rate

 

 31. (1) In this section:

 "amended Act" means the Principal Act as amended by this Act.

 (2) In spite of paragraph (a) of the definition of "applicable general

company tax rate" in section 160APA of the amended Act, where an original

company tax assessment, or an amended company tax assessment, for the year of

income commencing on 1 July 1988 is served on the company concerned after 18

January 1989 and before 1 July 1989, a reference in Part IIIAA of the amended

Act to the applicable general company tax rate in relation to the assessment

or amended assessment is a reference to 49%.

 

PART 3 - AMENDMENT OF THE INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 33

Principal Act

 

 33. In this Part, "Principal Act" means the Industry Research and

Development Act 1986.*2*

*2*No. 89, 1986, as amended. For previous amendments, see No. 59, 1988.

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 34

Certificate as to research and development activities

 

 34. Section 39L of the Principal Act is amended by omitting "an eligible

company" and substituting "a person".

 

PART 4 - AMENDMENT OF THE SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT

1935

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 35

Principal Act

 

 35. In this Part, "Principal Act" means the Sales Tax (Exemptions and

Classifications) Act 1935.*3*

*3*No. 60, 1935, as amended. For previous amendments, see No. 41, 1936; No.

78, 1938; No. 32, 1939; Nos. 29 and 76, 1940; No. 32, 1941; No. 6, 1942; Nos.

35 and 44, 1943; No. 31, 1944; No. 36, 1945; Nos. 12 and 67, 1946; No. 65,

1947; No. 42, 1948; No. 54, 1949; No. 37, 1950; No. 42, 1951; No. 44, 1952;

No. 53, 1953; No. 45, 1954; No. 5, 1956; No. 71, 1957; Nos. 17 and 92, 1959;

Nos. 65 and 88, 1960; Nos. 1 and 76, 1961; No. 4, 1962; No. 44, 1963; No. 30,

1965; Nos. 26 and 62, 1966; Nos. 21, 29 and 80, 1967; No. 78, 1970; Nos. 67

and 87, 1972; Nos. 17, 181 and 216, 1973; No. 24, 1975; No. 175, 1976; No.

107, 1978; Nos. 3, 94 and 157, 1979; No. 142, 1981; Nos. 64, 93 and 115, 1982;

Nos. 63, 84 and 136, 1983; Nos. 81, 123 and 165, 1984; Nos. 65 and 67, 1985;

Nos. 28, 76 and 98, 1986; Nos. 42, 135 and 140, 1987; Nos. 78, 89 and 152,

1988; and Nos. 63, 149 and 150 of 1989.

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 36

Amendment of First Schedule

 

 36. The First Schedule to the Principal Act is amended by adding at the end

the following item:

 "154. Receptacles that:

 

(a)

  are for repeated use on ships for the purpose of transporting cargo by

sea;

Nos. 1 to 9

 

(b)

  are designed to be loaded from one mode of transport to another without

the contents being re-packed; and

 

(c)

  are of a kind used as part of an international containerised cargo

transport system; and

 

(d)

  have a minimum capacity of 14 cubic metres".

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 37

Application of amendment

 

 37. The amendment made by this Part applies in relation to transactions,

acts and operations effected or done in relation to goods on or after 25

January 1989.

 

PART 5 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 38

Principal Act

 

 38. In this Part, "Principal Act" means the Taxation Administration Act

1953.*4*

*4*No. 1, 1953, as amended. For previous amendments, see Nos. 28, 39, 40 and

52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75,

1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133,

1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123,

1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and

168, 1985; Nos. 41, 46, 48, 112, 144 and 154, 1986; No. 49, 1986 (as amended

by No. 141, 1987); Nos. 120 and 145, 1987; No. 62, 1987 (as amended by No.

108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as

amended by No. 11, 1988); and Nos. 95 and 97, 1988.

 

TAXATION LAWS AMENDMENT ACT (No. 4) 1989No. 167, 1989

- SECT 39

 

 39. After section 13C of the Principal Act the following Division is

inserted in Part III:

 "Division 6 - Setting Aside etc. of Conviction or Order on Application of

 Commissioner

Setting aside etc. of conviction or order on application of Commissioner

 "13CA. (1) Where a person has been convicted in his or her absence of a

prescribed taxation offence (whether before or after the commencement of this

section), the Commissioner may apply to a court (in this section called the

'quashing court') for:

 (a) an order setting aside the conviction or setting aside the order of the

convicting court in respect of the conviction; or

 (b) an order varying the order of the convicting court in respect of the

conviction so as to reduce its severity.

 "(2) The application shall be made in writing:

 (a) to the convicting court; or

 (b) to any other court of summary jurisdiction that would have had

jurisdiction to make the conviction or order.

 "(3) The proper officer of the quashing court shall, without delay, cause

notice of the making of the application to be given to each party to the

application (other than the Commissioner).

 "(4) Any person who was a party to the proceedings in which the defendant

was convicted shall be made a party to the proceedings in respect of the

application.

 "(5) If the quashing court is satisfied that:

 (a) the conviction or order was made in circumstances that, in the opinion

of the court, make it desirable, in the interests of justice, that:

 (i) the conviction or order be set aside; or

 (ii) the order be varied by reducing its severity; or

 (b) because of other special circumstances (whether or not existing at the

time the conviction or order was made) it is desirable, in the interests of

justice, or in order to avoid undue hardship, that:

 (i) the order be set aside; or

 (ii) the order be varied so as to reduce its severity;

the court may set aside the conviction, or set aside or vary the order, as the

case may be, on such terms as to costs or otherwise as the court thinks just.

 "(6) If the court sets aside the conviction, or sets aside or varies the

order in respect of the conviction, the court shall also set aside any warrant

issued in consequence of the conviction.

 "(7) If the quashing court:

 (a) is not the convicting court; and

 (b) sets aside the conviction, or sets aside or varies the order, of the

convicting court;

the proper officer of the quashing court shall without delay cause notice of

the setting aside or variation to be given to the convicting court.

 "(8) A reference in this section to a conviction includes a reference to the

making of an order under section 19B of the Crimes Act 1914 .

 "(9) The setting aside of a conviction or order under this section is a bar

to any further legal proceeding against the defendant for the same matter in

any court (other than on appeal).

 "(10) This section is in addition to, and not in derogation of, any other

law of the Commonwealth or any law of a State or Territory.".

Notes to the Taxation Laws Amendment Act (No. 4) 1989

Note 1

The Taxation Laws Amendment Act (No. 4) 1989 as shown in this compilation comprises

Act No. 167, 1989 amended as indicated in the Tables below.

Table of Acts

Act

Number

and year

Date

of Assent

Date of commencement

Application, saving or transitional provisions

Taxation Laws Amendment Act (No. 4) 1989

167, 1989

19 Dec 1989

See s. 2

Tax Laws Amendment (2010 Measures No. 2) Act 2010

75, 2010

28 June 2010

Schedule 6 (item 72): 29 June 2010

Table of Amendments

ad. = added or inserted  am. = amended rep. = repealed rs. = repealed and substituted

Provision affected

How affected

S. 32.........................................

rep. No. 75, 2010

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