Taxation Laws Amendment Act (No. 4) 1990 (Cth)
This compilation was prepared on 15 September 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
TABLE OF PROVISIONS
PART 1 - PRELIMINARY
Section
Short title [
Commencement [
PART 2 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Interpretation
Alternative election in case of disposal, death or compulsory
destruction of live stock
Gifts, pensions etc.
Rebates for residents of isolated areas
Insertion of new section:
Relief from substantiation requirements in special
circumstances
Exploration and prospecting expenditure
Interpretation
Foreign debt
Foreign equity
Insertion of new sections:
Section 128F debenture amount
Short-term trade credit amount
Insertion of new section:
Adjustment of foreign equity in certain cases involving
resident holding companies of financial institutions
Resident companies
Resident company groups
Partnerships
Trust estates
Foreign investors
Insertion of new section:
159GZZKA. Eligible gold mining expenditure - election regarding
estimate of mine life for pre-changeover years
Repeal of section 159GZZP
Heading
Repeal of section 159GZZZA
Insertion of new Subdivisions:
159GZZZBA. Interpretation
159GZZZBB. Disposals of assets to which sections 159GZZZBC and
159GZZZBD apply
159GZZZBC. Capital gains adjustment
159GZZZBD. Capital loss adjustment
159GZZZBE. Notional deductions for section 160ZK purposes
159GZZZBF. Interpretation
159GZZZBG. 31.12.90 eligible trading stock to be taken into account
for beginning-of-changeover-year valuation purposes
159GZZZBH. Method of determining value of beginning-of-changeover-year
trading stock
159GZZZBI. 31.12.90 eligible trading stock to be taken into account
for end-of-changeover-year valuation purposes in
determining exempt income
Repeal of section 160APMA and substitution of new section:
Initial payment of tax
Application of initial payment of tax by a company
Insertion of new section:
Application of subsequent payments of tax before
determination of taxable income
Insertion of new section:
Waiver of franking deficit tax
When initial payment to be made
Additional payments to form part of initial payment
Schedule 2
Application of amendments
Transitional - section 160APX of the amended Act
Transitional - section 160APYA of the amended Act
Transitional - section 160APYAA of the amended Act
Transitional - section 160APYC of the amended Act
PART 3 - AMENDMENT OF THE TAXATION LAWS AMENDMENT ACT (No. 2) 1990
Principal Act
Interpretation
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 4) 1990.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 2
Commencement [
2. (1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Part 3 is taken to have commenced at the commencement of section 4 of the
Taxation Laws Amendment Act (No. 2) 1990.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- 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; Nos. 2, 11, 56, 70,
73, 97, 105, 107, 129, 163 and 167; 1989; No. 97, 1989 (as amended by No. 105,
1989); and Nos. 20, 35, 37, 45, 57, 58, 60 and 61, 1990.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 4
Interpretation
4. Section 6 of the Principal Act is amended:
by inserting in subsection (2) "(including subsection (2A) of this
section)" after "reference in this Act";
by inserting after subsection (2) the following subsection:
"(2A) A reference in this Act to a year of income preceded by a figure
referring to 2 years is a reference to the year of income commencing on 1 July
in the first of those years (for example, `1990-91 year of income' refers to
the year of income commencing on 1 July 1990).".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 5
Alternative election in case of disposal, death or
compulsory destruction of live stock
5. Section 36AAA of the Principal Act is amended by omitting from subsection
(24) "destroyed" and substituting "disposed of".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 6
Gifts, pensions etc.
6. Section 78 of the Principal Act is amended:
by inserting in subparagraph (1) (a) (xxxvi) "Royal" after
"Australasia, the";
by omitting from subparagraph (1) (a) (lxxxiv) "Aid".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 7
Rebates for residents of isolated areas
7. Section 79A of the Principal Act is amended:
by inserting in paragraph (2) (a) ", or of the special area in Zone B,"
after "Zone A";
by omitting paragraphs (2) (b) and (c);
by inserting after subsection (3E) the following subsection:
"(3F) For the purposes of this section, the census population of Nhulunbuy is
taken to be less than 2,500.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 8
8. After section 82KZA of the Principal Act the following section is
inserted:
Relief from substantiation requirements in special circumstances
"82KZAA. (1) Where:
a taxpayer claims to have incurred an expense during a year of income;
and
having regard to:
the nature and quality of evidence that the taxpayer has available to
substantiate the claim; and
special circumstances affecting the taxpayer, including, but not
limited to, the following:
the extent to which the taxpayer attempted to comply with the
substantiation sections;
whether the taxpayer's failure to comply with the substantiation
sections was inadvertent or deliberate;
the Commissioner, in the course of reviewing the claim after the making of the
assessment of the taxpayer's taxable income of the year of income, is
satisfied that:
the expense was incurred by the taxpayer during the year of income;
and
it would be unreasonable for the substantiation sections to apply in
relation to the taxpayer in relation to the expense; and
the Commissioner's review is undertaken:
of the Commissioner's own motion; or
in considering an objection against the assessment of the taxpayer's
taxable income of the year of income; or
in considering whether to make an amendment of the assessment of the
taxpayer's taxable income of the year of income in response to a request made
by the taxpayer before the commencement of this section;
the substantiation sections do not apply in relation to the taxpayer in
relation to the expense.
"(2) For the purposes of this section, the Commissioner is taken to have
made an assessment of the taxpayer's taxable income of the year of income if
the Commissioner has served notice in respect of the taxpayer to the effect
that:
the taxpayer's taxable income of the year of income is nil; or
no tax is payable on the taxpayer's taxable income of the year of
income.
"(3) Where:
a taxpayer makes an application under subsection 188 (1) or (2); and
the period referred to in the subsection concerned ended before the
commencement of this section;
the following provisions have effect:
the Commissioner, the Tribunal or the Federal Court of Australia, as
the case requires, when making a decision on the application, must disregard
subsection (1) of this section;
if the Commissioner, the Tribunal or the Federal Court of Australia, as
the case requires, grants the application:
the taxpayer's objection has no effect to the extent that it relates to
grounds based on subsection (1) of this section; and
the Tribunal or the Federal Court of Australia, when making a decision
under paragraph 190 (a), must disregard subsection (1) of this section.
"(4) This section applies to an expense incurred before, at or after the
commencement of this section.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 9
Exploration and prospecting expenditure
9. Section 122JF of the Principal Act is amended by adding at the end of
subsection (8) "that does not exceed the amount of the exempt income".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 10
Interpretation
10. Section 159GZA of the Principal Act is amended by inserting the
following definitions:
" `foreign bank' means a non-resident company that carries on a banking
business;
`nostro account', in relation to a financial institution, means an account
held by the financial institution with a foreign bank where both of the
following conditions are satisfied:
the account is maintained by the financial institution for the sole
purpose of settling international transactions;
the account is maintained on the basis that:
amounts deposited to the account are held in the account for not more
than 10 days; and
amounts advanced by way of an overdraft on the account are repaid
within 10 days; `nostro amount', in relation to a financial institution, means
an amount owing by the financial institution where an amount representing the
amount owing is:
held in a nostro account in relation to the financial institution; or
advanced by way of an overdraft on a nostro account in relation to the
financial institution;
`section 128F debenture amount' has the meaning given by section 159GZJA;
`short-term trade credit amount' has the meaning given by section 159GZJB;
`vostro account', in relation to a financial institution, means an account
held by a foreign bank with the financial institution where both of the
following conditions are satisfied:
the account is maintained by the foreign bank for the sole purpose of
settling international transactions;
the account is maintained on the basis that:
amounts deposited to the account are held in the account for not more
than 10 days; and
amounts advanced by way of an overdraft on the account are repaid
within 10 days;
`vostro amount', in relation to a financial institution, means an amount owing
to the financial institution where an amount representing the amount owing
is:
held in a vostro account in relation to the financial institution; or
advanced by way of an overdraft on a vostro account in relation to the
financial institution;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 11
Foreign debt
11. Section 159GZF of the Principal Act is amended by inserting in
subsection (1) "(not including, in the case of a financial institution, a
nostro amount)" after "owing by the company".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 12
Foreign equity
12. Section 159GZG of the Principal Act is amended:
by omitting paragraph (1) (d) and substituting the following
paragraph:
the balance outstanding at the end of the year of income on all
amounts owing to the company by foreign controllers, or non-resident
associates of foreign controllers, of the company, other than the following
amounts:
if the company is a financial institution:
vostro amounts; or
an amount standing to the credit of a nostro
account in relation to the financial institution;
section 128F debenture amounts;
short-term trade credit amounts;";
by inserting in subsection (3) "(other than short-term trade credit
amounts)" after "owing to the partnership";
by inserting in subsection (4) "(other than short-term trade credit
amounts)" after "owing to the trustee of the trust estate";
by inserting in subsection (5) "(other than short-term trade credit
amounts)" after "owing to the foreign investor".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 13
13. After section 159GZJ of the Principal Act the following sections are
inserted:
Section 128F debenture amount
"159GZJA. For the purposes of this Division, an amount owing to a company as
at a particular time is a section 128F debenture amount if all of the
following paragraphs apply:
the amount is owing to the company by a foreign controller, or a
non-resident associate of a foreign controller, of the company (which foreign
controller or associate is in this section called the `debtor');
the amount is owing in respect of a debenture issued by the company to
the debtor not earlier than 30 days before that time;
the debenture was issued to the debtor in the debtor's capacity as a
dealer, manager or underwriter in relation to the placement of the debentures
concerned;
the debtor disposes of the debenture within 30 days after the issue of
the debenture;
section 128F applies, or will apply, to any interest paid by the
company in respect of the debenture.
Short-term trade credit amount
"159GZJB. (1) For the purposes of this Division, an amount owing to a
resident company, to a partnership or to the trustee of a trust estate as at a
particular time is a short-term trade credit amount if, and only if, all of
the following paragraphs apply:
the amount is owing to the company, partnership or trustee by a foreign
controller, or a non-resident associate of a foreign controller, of the
company, partnership or trust estate, as the case may be (which foreign
controller or associate is in this subsection called the `trade debtor');
the company, partnership or trustee carries on a business of providing
property or services at that time;
in the course of carrying on that business, the company, partnership or
trustee, as the case may be:
provides property or services to the trade debtor; and
invoices the trade debtor for the provision of the property or
services on terms that allow the trade debtor credit for a period not
exceeding 30 days after the date of the invoice;
the credit facility mentioned in subparagraph (c) (ii) is not extended
or rolled-over.
"(2) For the purposes of this Division, an amount owing to a foreign
investor as at a particular time is a short-term trade credit amount if, and
only if, all of the following paragraphs apply:
the amount is owing to the foreign investor by a non-resident associate
(which non-resident associate is in this subsection called the `trade
debtor');
the foreign investor carries on a business of providing property or
services at that time;
in the course of carrying on that business, the foreign investor:
provides property or services to the trade debtor; and
invoices the trade debtor for the provision of the property or
services on terms that allow the trade debtor credit for a period not
exceeding 30 days after the date of the invoice;
the credit facility mentioned in subparagraph (c) (ii) is not extended
or rolled-over.
"(3) In this section: `provide' has the same meaning as in section 21A;
`services' has the same meaning as in section 21A.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 14
14. After section 159GZL of the Principal Act the following section is
inserted:
Adjustment of foreign equity in certain cases involving resident holding
companies of financial institutions
"159GZLA. (1) For the purposes of determining the foreign equity in relation
to a resident company (in this subsection called the `resident financial
company') in relation to a year of income, if all of the following conditions
are satisfied at all times during the year of income when the resident
financial company was in existence:
the resident financial company is a bank within the meaning of the
Banking Act 1959;
apart from this subsection, the same foreign controller in relation to
the resident financial company was the sole foreign controller in relation to
the resident financial company;
all of the following subparagraphs apply in relation to another
resident company (in this subsection called the `resident holding company'):
the resident holding company is not a financial institution;
there is no amount owing by the resident holding company in respect of
which interest is or may become payable;
all of the shares in the resident holding company are beneficially
owned by the foreign controller or by the foreign controller and an associate,
or associates, of the foreign controller;
some, but not all, of the shares in the resident financial company are
beneficially owned by the resident holding company; the following provisions
have effect:
the resident holding company is to be treated, for the purposes of
subsection 159GZE (1), as if it were a non-resident;
if, apart from this subsection, at the end of the year of income, the
resident holding company owes one or more amounts to a foreign controller, or
to a non-resident associate of a foreign controller, of the resident holding
company (not being an amount in respect of which interest is or may become
payable), then, the foreign equity in relation to the resident financial
company in relation to the year of income is reduced by the amount, or the sum
of the amounts, so owing.
"(2) Subject to subsection (3), for the purposes of this section, a company
is to be taken to be in existence if it has been incorporated and has not been
dissolved.
"(3) For the purposes of this section, if a company was dormant (within the
meaning of Part VI of the Companies Act 1981) at all times during a period (in
this subsection called the `dormant period') commencing at the time of its
incorporation, the company is to be taken not to have been in existence during
the dormant period.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 15
Resident companies
15. Section 159GZS of the Principal Act is amended:
(a) by inserting after paragraph (a) the following paragraph:
subsection (2) does not apply; and";
(b) by adding at the end the following subsections:
"(2) If:
an amount of foreign debt interest is, apart from this Division,
allowable as a deduction from the assessable income of a year of income of a
taxpayer being a resident company; and
the taxpayer makes an election, in accordance with subsection (5), that
this subsection apply in relation to the taxpayer in relation to the year of
income;
the proportion of the foreign debt interest
calculated under subsection (3) is not so allowable as a deduction.
"(3) The proportion is calculated using the
formula:
Foreign No. of
equity excess
product foreign
debt days
x ----------
Days in
of
income
where:
Average daily foreign debt for excess foreign debt
days is the average of the total foreign debt of the taxpayer in respect of
each excess foreign debt day of the taxpayer that occurred in the year of
income;
Foreign equity product is the foreign equity product
of the taxpayer of the year of income;
Average daily foreign debt is the average of the
total foreign debt of the taxpayer in respect of each day that occurred in the
year of income;
No. of excess foreign debt days is the number of
excess foreign debt days of the taxpayer that occurred in the year of income;
Days in year of income is the number of days in the
year of income.
"(4) For the purposes of this section, if the
total foreign debt of the taxpayer in respect of a particular day in a year of
income exceeds the foreign equity product of the taxpayer of the year of
income, the day is an excess foreign debt day of the taxpayer.
An election for the purposes of subsection
(2) must be lodged with the Commissioner on or before the date of lodgment of
the taxpayer's return of income for the later of the following years of
income:
the year of income to which the election relates;
the year of income in which this subsection commenced;
or within such further period as the Commissioner
allows.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 16
Resident company groups
16. Section 159GZT of the Principal Act is amended:
(a) by inserting after paragraph (1) (a) the following paragraph:
subsection (3) does not apply; and";
(b) by adding at the end the following subsections:
"(3) If:
an amount of foreign debt interest is, apart from this Division,
allowable as a deduction from the assessable income of a year of income of a
taxpayer, being a member of a resident company group in relation to the year
of income; and
the member of the group that has foreign equity in relation to the year
of income makes an election, in accordance with subsection (7), that this
subsection apply in relation to the company group in relation to the year of
income; the proportion of the foreign debt interest calculated under
subsection (4) is not so allowable as a deduction.
"(4) The proportion is calculated using the
formula:
Foreign No. of
equity excess
product foreign
debt days
x ---------
Days in
of
income
where:
Average daily foreign debt for excess foreign debt
days is the average of the aggregate of the total foreign debts of all the
members of the company group in respect of each excess foreign debt day of
such members that occurred in the year of income;
Foreign equity product is the foreign equity product
of the year of income of the member of that group that has foreign equity in
relation to the year of income;
Average daily foreign debt is the average of the
aggregate of the total foreign debts of all of the members of the resident
company group in respect of each day that occurred in the year of income;
No. of excess foreign debt days is the number of
days that occurred in the year of income that are excess foreign debt days of
the members of that group;
Days in year of income is the number of days in the
year of income.
"(5) Where:
the foreign equity of the member referred to in paragraph (3) (b) is
attributable in part to profits arising from any transaction or transactions
involving the member and any other member or members of the resident company
group, being a transaction or transactions that were not arm's length
transactions; and
if the transaction or transactions had been arm's length transactions,
the foreign equity of the member would have been less;
subsection (3) applies as if the lesser amount were substituted for the amount
of the foreign equity.
"(6) For the purposes of this section, if the
aggregate of the total foreign debts of all of the members of a resident
company group in respect of a particular day in a year of income exceeds the
foreign equity product of the year of income of the member of the resident
company group that has foreign equity in relation to the year of income, the
day is an excess foreign debt day of each member of the group.
"(7) An election made by a member of a resident
company group for the purposes of subsection (3) must be lodged with the
Commissioner on or before the date of lodgment of the member's return of
income for the later of the following years of income:
the year of income to which the election relates;
the year of income in which this subsection commenced;
or within such further period as the Commissioner allows.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 17
Partnerships
17. Section 159GZU of the Principal Act is amended:
by inserting after paragraph (a) the following paragraph:
subsection (2) does not apply; and";
by adding at the end the following subsections:
"(2) If:
an amount of foreign debt interest is, apart from this Division,
allowable as a deduction in calculating under section 90 the net income or
partnership loss of a partnership of a year of income; and
the partnership makes an election, in accordance with subsection (5),
that this subsection apply in relation to the partnership in relation to the
year of income; the proportion of the foreign debt interest calculated under
subsection (3) is not so allowable as a deduction.
"(3) The proportion is calculated using the
formula:
Foreign No. of
equity excess
product foreign
debt days
x ---------
Days in
year of
income
where:
Average daily foreign debt for excess foreign debt
days is the average of the total foreign debt of the partnership in respect of
each excess foreign debt day of the partnership that occurred in the year of
income;
Foreign equity product is the foreign equity product
of the partnership of the year of income;
Average daily foreign debt is the average of the
total foreign debt of the partnership in respect of each day that occurred in
the year of income;
No. of excess foreign debt days is the number of
that occurred in the year of
income;
Days in year of income is the number of days in the
year of income.
"(4) For the purposes of this section, if the
total foreign debt of the partnership in respect of a particular day in a year
of income exceeds the foreign equity product of the partnership of the year of
income, the day is an excess foreign debt day of the partnership.
"(5) An election made by a partnership for the
purposes of subsection (2) must be lodged with the Commissioner on or before
the date of lodgment of the return of income of the partnership for the later
of the following years of income:
the year of income to which the election relates;
the year of income in which this subsection commenced;
or within such further period as the Commissioner allows.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 18
Trust estates
18. Section 159GZV of the Principal Act is amended:
by inserting after paragraph (a) the following paragraph:
subsection (2) does not apply; and";
by adding at the end the following subsections:
"(2) If:
an amount of foreign debt interest is, apart from this Division,
allowable as a deduction in calculating under section 95 the net income of a
trust estate of a year of income; and
the trustee of the trust estate makes an election, in accordance with
subsection (5), that this subsection apply in relation to the trust estate in
relation to the year of income;
the proportion of the foreign debt interest calculated under subsection (3) is
not so allowable as a deduction.
"(3) The proportion is calculated using the
formula:
Foreign No. of
equity excess
product foreign
debt days
x ---------
Days in
year of
income
where:
Average daily foreign debt for excess foreign debt
days is the average of the total foreign debt of the trust estate in respect
of each excess foreign debt day of the trust estate that occurred in the year
of income;
Foreign equity product is the foreign equity product
of the trust estate of the year of income;
Average daily foreign debt is the average of the
total foreign debt of the trust estate in respect of each day that occurred in
the year of income;
No. of excess foreign debt days is the number of
excess foreign debt days of the trust estate that occurred in the year of
income;
Days in year of income is the number of days in the
year of income.
"(4) For the purposes of this section, if the
total foreign debt of the trust estate in respect of a particular day in a
year of income exceeds the foreign equity product of the trust estate of the
year of income, the day is an excess foreign debt day of the trust estate.
"(5) An election made by a trustee for the
purposes of subsection (2) must be lodged with the Commissioner on or before
the date of lodgment of the return of income of the trust estate for the later
of the following years of income:
the year of income to which the election relates;
the year of income in which this subsection commenced;
or within such further period as the Commissioner allows.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 19
Foreign investors
19. Section 159GZW of the Principal Act is amended:
by inserting after paragraph (a) the following paragraph:
subsection (2) does not apply; and";
by adding at the end the following subsections:
"(2) If:
an amount of foreign debt interest is, apart from this Division,
allowable as a deduction from the assessable income of a year of income of a
taxpayer being a foreign investor; and
the taxpayer makes an election, in accordance with subsection (5), that
this subsection apply in relation to the taxpayer in relation to the year of
income;
the proportion of the foreign debt interest calculated under subsection (3) is
not so allowable as a deduction.
"(3) The proportion is calculated using the
formula:
Foreign No. of
equity excess
product foreign
debt days
x ---------
Days in
year of
income
where:
Average daily foreign debt for excess foreign debt
days is the average of the total foreign debt of the taxpayer in respect of
each excess foreign debt day of the taxpayer that occurred in the year of
income;
Foreign equity product is the foreign equity product
of the taxpayer of the year of income;
Average daily foreign debt is the average of the
total foreign debt of the taxpayer in respect of each day that occurred in the
year of income;
No. of excess foreign debt days is the number of
excess foreign debt days of the taxpayer that occurred in the year of income;
Days in year of income is the number of days in the
year of income.
"(4) For the purposes of this section, if the
total foreign debt of the taxpayer in respect of a particular day exceeds the
foreign equity product of the taxpayer of the year of income, the day is an
excess foreign debt day of the taxpayer.
"(5) An election for the purposes of subsection
(2) must be lodged with the Commissioner on or before the date of lodgment of
the taxpayer's return of income for the later of the following years of
income:
the year of income to which the election relates;
the year of income in which this subsection commenced;
or within such further period as the Commissioner allows.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 20
20. After section 159GZZK of the Principal Act the following section is
inserted:
Eligible gold mining expenditure - election regarding estimate of mine life
for pre-changeover years
"159GZZKA. (1) A taxpayer may, in accordance with subsection (3), elect
that, in relation to all eligible gold mining expenditure in relation to any
mining property incurred by the taxpayer before the changeover year, the
notional writing-down assumptions are to include the assumption in subsection
(2) of this section.
"(2) The assumption is that, in applying paragraph 122D (2) (a), 122DB (2)
(a), 122DD (2) (a), 122DF (2) (a) or 122DG (3) (b) in relation to a year of
income (in this subsection called the `pre-changeover year') before the
changeover year, the reference in that paragraph to the number of whole years
in the estimated life of the mine or proposed mine to which the paragraph
applies, on the mining property, as at the end of the pre-changeover year, is
to be read as a reference to the sum of:
the number of years of income occurring after the pre-changeover year
but not after the changeover year; and
the number of whole years in the estimated life of that mine or
proposed mine as at the end of the changeover year.
"(3) The election must:
be made in writing signed by or on behalf of the taxpayer; and
be delivered to the Commissioner on or before the last day for the
furnishing of the return of income of the changeover year or within such
further time as the Commissioner allows.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 21
Repeal of section 159GZZP
21. Section 159GZZP of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 22
Heading
22. The heading to Subdivision C of Division 16H of Part III of the
Principal Act is amended by omitting "and related provisions".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 23
Repeal of section 159GZZZA
23. Section 159GZZZA of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 24
24. After section 159GZZZB of the Principal Act the following Subdivisions
are inserted in Division 16H:
"Subdivision D - Part IIIA
Interpretation
"159GZZZBA. Expressions used in this Subdivision that are also used in Part
IIIA have the same respective meanings as in that Part.
Disposals of assets to which sections 159GZZZBC and 159GZZZBD apply
"159GZZZBB. Where:
a taxpayer owns an asset at the end of 31 December 1990 (in this
Subdivision called the `changeover time'); and
before the changeover time, the asset was used by the taxpayer (other
than on a prior holding of the asset) solely for the purpose of producing
exempt income, where that use was principally for the purpose of producing
income to which paragraph 23 (o) or subsection 23C (1) applied; and
after the changeover time, the taxpayer disposes (which disposal is in
this Subdivision called the `post-changeover disposal') of the asset; and
the asset was owned by the taxpayer at all times after the changeover
time; and
Part IIIA applies to the post-changeover disposal of the asset; then
sections 159GZZZBC and 159GZZZBD apply to the post-changeover disposal of the
asset.
Capital gains adjustment
"159GZZZBC. (1) If the market value of the asset at the changeover time is
greater than the amount that would be its indexed cost base if the taxpayer
disposed of it at that time, then, for the purpose of determining under Part
IIIA whether a capital gain accrues to the taxpayer in respect of the
post-changeover disposal of the asset:
the taxpayer is taken to have disposed of the asset at the changeover
time for a consideration equal to the amount of that indexed cost base; and
the taxpayer is taken to have immediately re-acquired the asset for a
consideration equal to the market value of the asset at the changeover time;
and
the reference in subsection 160Z (3) to the day on which the asset was
acquired by the taxpayer is taken to be a reference to the day on which the
asset was actually acquired by the taxpayer.
"(2) If the post-changeover disposal takes place within 12 months of the
actual acquisition of the asset, subsection (1) has effect as if the
references in that subsection to the asset's indexed cost base were references
to its cost base.
Capital loss adjustment
"159GZZZBD. If the market value of the asset at the changeover time is less
than the amount that would be its reduced cost base if the taxpayer disposed
of it at that time, then, for the purpose of determining under Part IIIA
whether the taxpayer incurred a capital loss in respect of the post-changeover
disposal of the asset:
the taxpayer is taken to have disposed of the asset at the changeover
time for a consideration equal to the amount of that reduced cost base; and
the taxpayer is taken to have immediately re-acquired the asset for a
consideration equal to the market value of the asset at the changeover time.
Notional deductions for section 160ZK purposes
"159GZZZBE. (1) Where a taxpayer has incurred any eligible gold mining
expenditure, within the meaning of Subdivision B, in relation to an asset,
then, for the purposes of any application of subsection 160ZK (1) in relation
to a disposal of the asset by the taxpayer after 31 December 1990:
notional deductions, within the meaning of Subdivision B, are taken to
be deductions that have been allowed in respect of the expenditure; and
where an amount is included in, or allowable as a deduction from, the
assessable income of the taxpayer of a year of income in relation to the
expenditure under section 122K in its application in accordance with section
159GZZO - the amount that, if section 159GZZO were disregarded, would have
been included in the assessable income or allowable as a deduction under
section 122K in relation to that expenditure is instead taken to have been so
included in the assessable income or allowable as a deduction.
"(2) Where a taxpayer has incurred any eligible gold transport expenditure,
within the meaning of Subdivision C, in relation to an asset, then, for the
purposes of any application of subsection 160ZK (1) in relation to a disposal
of the asset by the taxpayer after 31 December 1990:
notional deductions, within the meaning of Subdivision C, are taken to
be deductions that have been allowed in respect of the expenditure; and
where an amount is included in, or allowable as a deduction from, the
assessable income of the taxpayer of a year of income in relation to the
expenditure under section 123C in its application in accordance with section
159GZZZ - the amount that, if section 159GZZZ were disregarded, would have
been included in the assessable income or allowable as a deduction under
section 123C in relation to that expenditure is instead taken to have been so
included in the assessable income or allowable as a deduction.
"Subdivision E - Subdivision B of Division 2
Interpretation
"159GZZZBF. In this Subdivision:
`changeover year', in relation to a taxpayer, means the year of income of the
taxpayer in which 1 January 1991 occurs;
`eligible trading stock', in relation to a taxpayer at a particular time,
means trading stock of the taxpayer that is on hand at that time where, if
that time were the end of a year of income of the taxpayer, the value of the
trading stock would not be required to be taken into account under section 28
in ascertaining whether or not the taxpayer has a taxable income for the year
of income only because paragraph 23 (o) or subsection 23C (1) applies, or but
for Subdivision A would apply, to income derived by the taxpayer at that time.
31.12.90 eligible trading stock to be taken into account for
beginning-of-changeover-year valuation purposes
"159GZZZBG. (1) Subject to subsection (2), for the purposes of Subdivision B
of Division 2 of Part III, the value of all eligible trading stock of a
taxpayer on hand at the end of 31 December 1990, and of no other eligible
trading stock of the taxpayer, is to be taken into account under section 28 as
trading stock of the taxpayer on hand at the beginning of the changeover year
in ascertaining whether or not the taxpayer has a taxable income for the
changeover year.
"(2) Subsection (1) does not apply for the purposes of applying Subdivision
B of Division 2 of Part III in determining the exempt income, or expenses
incurred in deriving the exempt income, of the taxpayer for the changeover
year.
Method of determining value of beginning-of-changeover-year trading stock
"159GZZZBH. (1) Where section 159GZZZBG applies to trading stock, then, for
the purposes of ascertaining under Subdivision B of Division 2 of Part III the
value of the trading stock to be taken into account at the beginning of the
changeover year:
the taxpayer may, in accordance with subsection (3), exercise any
option, and give any notice, under section 31 in relation to the value of the
trading stock at the end of the year of income before the changeover year as
if that end of year occurred at the end of 31 December 1990; and
if the taxpayer does not exercise an option under paragraph (a) in
relation to particular trading stock, the value to be taken into account in
accordance with that paragraph in relation to that trading stock is its cost
price.
"(2) If:
the taxpayer adopts, under Subdivision B of Division 2 of Part III,
cost price as the basis of valuation in relation to any trading stock on hand
at the end of the changeover year; and
the value of that trading stock at the beginning of the changeover year
was ascertained in accordance with paragraph (1) (a); then, for the purposes
of that Subdivision, the cost price of that trading stock is taken to be equal
to the value at which it was taken into account in accordance with paragraph
(1) (a).
"(3) The option or notice referred to in paragraph (1) (a) must:
be exercised or given in writing signed by or on behalf of the
taxpayer; and
be delivered to the Commissioner before 1 March 1991 or within such
further time as the Commissioner allows.
31.12.90 eligible trading stock to be taken into account for
end-of-changeover-year valuation purposes in determining exempt income
"159GZZZBI. For the purposes of applying Subdivision B of Division 2 of Part
III in determining the exempt income, or expenses incurred in deriving the
exempt income, of a taxpayer for the changeover year:
the value of all eligible trading stock of the taxpayer on hand at the
end of 31 December 1990, and of no other eligible trading stock of the
taxpayer, is to be taken into account under section 28 as trading stock of the
taxpayer on hand at the end of the changeover year; and
that value is taken to be the same at is ascertained in accordance with
paragraph 159GZZZBH (1)(a).".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 25
25. Section 160APMA of the Principal Act is repealed and the following
section is substituted:
Initial payment of tax
"160APMA. Where, on a particular day (in this section called the `payment
day') in a franking year (in this section called the `payment year'), a
payment is made by a company in respect of an initial payment of tax that the
company is required to make under section 221AP in respect of a year of
income:
if the payment day is in the year of income - there arises on the first
day of the franking year next following the payment year a franking credit of
the company equal to the adjusted amount in relation to the amount paid; or
in any other case - there arises on the payment day a franking credit
of the company equal to the adjusted amount in relation to the amount paid.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 26
Application of initial payment of tax by a company
26. Section 160APYA of the Principal Act is amended:
by omitting "income is credited" and substituting "income is applied
(whether by credit, refund or both)";
by omitting "payment is credited" and substituting "payment is
applied";
by omitting "so credited" and substituting "so applied".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 27
27. After section 160APYA of the Principal Act the following section is
inserted:
Application of subsequent payments of tax before determination of taxable
income
"160APYAA. If:
after a company makes an initial payment of tax referred to in section
160APYA in respect of a year of income and before the day on which the company
makes a final payment of tax in respect of that year of income under section
221AZD, the company makes a further payment on account of tax in respect of
that year of income; and
that further payment is applied (whether by credit, refund or both) by
the Commissioner under section 221AZF;
there arises, on the day on which that further payment is applied, a franking
debit of the company equal to the adjusted amount in relation to the amount so
applied.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 28
28. After section 160APYB of the Principal Act the following section is
inserted: Waiver of franking deficit tax
"160APYC. Where subsection 160AQJ (2) applies in relation to an initial
payment of tax under section 221AP made by a company, there arises, on the day
of that payment, a franking debit of the company equal to:
if paragraph 160AQJ (2) (c) applies - the adjusted amount in relation
to the amount of the relevant franking deficit tax referred to in that
paragraph; or
if paragraph 160AQJ (2) (d) applies - the adjusted amount in relation
to so much of the amount of the relevant franking deficit tax referred to in
that paragraph as is equal to the initial payment of tax.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 29
When initial payment to be made
29. Section 221AP of the Principal Act is amended by adding at the end the
following subsection:
"(2) An initial payment of tax is due and payable on the day referred to in
subsection (1).".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 30
Additional payments to form part of initial payment
30. Section 221AZ of the Principal Act is amended:
by omitting "An amount paid" and substituting "Subject to this section,
an amount paid";
by adding at the end the following subsection:
"(2) An amount paid as mentioned in subsection 221AR (7) is not taken, for
the purposes of Part IIIAA, to be, or to constitute part of, as the case
requires, an initial payment of tax.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 31
Schedule 2
31. Schedule 2 to the Principal Act is amended:
by adding at the end of Part I:
"9. Lord Howe Island.";
by adding at the end of Part II:
"4. King Island, Tasmania.
5. All the islands in the group of islands known as
the Furneaux Group, Tasmania.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 32
Application of amendments
32. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) The amendments made by section 5 apply in relation to live stock
disposed of on or after 1 July 1987.
(3) The amendment made by paragraph 6 (a) applies to gifts made on or after
23 June 1970.
(4) The amendment made by paragraph 6 (b) applies to gifts made on or after
2 August 1989.
(5) The amendments made by sections 7 and 31 apply to assessments in respect
of income of the 1990-91 year of income and of all subsequent years of
income.
(6) The amendment made by section 9 applies to expenditure incurred after 15
August 1989.
(7) Subject to this section, the amendments made by section 11, paragraph 12
(a) and section 14 apply to assessments in respect of income of the 1987-88
year of income and of all subsequent years of income.
(8) Subparagraph 159GZG (1) (d) (iii) of the amended Act and the amendments
made by paragraphs 12 (b), (c) and (d) and sections 15 to 19 (inclusive) of
this Act apply to assessments in respect of income of the 1988-89 year of
income and of all subsequent years of income.
(9) The amendments made by sections 21, 22, 23 and 24 (in so far as it
provides for the insertion of Subdivision D in Division 16H of Part III of the
Principal Act) apply to assets whether acquired before or after the
commencement of those sections.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 33
Transitional - section 160APX of the amended Act
33. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) For the purposes of Part IIIAA of the amended Act, where:
a franking debit (in this subsection called the "actual franking
debit") of a company arose under section 160APX of the Principal Act before
the commencement of this section in relation to a dividend; and
if sections 160APYA, 160APYAA and 160APYC of the amended Act had been
in force before the commencement of this section:
no franking debit of the company would have arisen under section 160APX
in relation to the dividend; or
a franking debit (in this subsection called the "notional franking
debit") of the company would have arisen under that section in relation to the
dividend; and
if subparagraph (b) (ii) applies - the actual franking debit exceeds
the notional franking debit; there arises on the date of commencement of this
section a franking credit of the company equal to:
if subparagraph (b) (i) applies - the actual franking debit; or
if subparagraph (b) (ii) applies - the amount of the excess.
(3) A reference in this section to section 160APYA of the amended Act does
not include a reference to that section as it has effect by virtue of section
34 of this Act.
(4) A reference in this section to section 160APYAA of the amended Act does
not include a reference to that section as it has effect by virtue of section
35 of this Act.
(5) A reference in this section to section 160APYC of the amended Act does
not include a reference to that section as it has effect by virtue of section
36 of this Act.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 34
Transitional - section 160APYA of the amended Act
34. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) In addition to the effect that section 160APYA of the amended Act has
apart from this section, that section also has the effect in relation to
refunds that it would have if:
that section applied to payments applied by the Commissioner before the
commencement of this section; and
the reference in that section to the day on which a payment was applied
were a reference to the date of commencement of this section.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 35
Transitional - section 160APYAA of the amended Act
35. (1) In this section: "amended Act" means the Principal Act as amended by
this Act.
(2) In addition to the effect that section 160APYAA of the amended Act has
apart from this section, that section also has the effect that it would have
if:
that section applied to payments applied by the Commissioner before the
commencement of this section; and
the reference in that section to the day on which a payment was applied
were a reference to the date of commencement of this section.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 36
Transitional - section 160APYC of the amended Act
36. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) In addition to the effect that section 160APYC of the amended Act has
apart from this section, that section also has the effect that it would have
if:
that section applied to initial payments of tax made before the
commencement of this section; and
the reference in that section to the day of payment were a reference to
the date of commencement of this section.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 38
Principal Act
38. In this Part, "Principal Act" means the Taxation Laws Amendment Act (No.
2) 1990*2*.
*2* No. 57, 1990.
TAXATION LAWS AMENDMENT ACT (No. 4) 1990 No. 4 of 1991
- SECT 39
Interpretation
39. Section 4 of the Principal Act is amended by omitting " `exempt income'
" and substituting " `exempt debit' ".
The
Act No. 4, 1991 amended as indicated in the Tables below.
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
4, 1991 | 8 Jan 1991 | |||
75, 2010 | 28 June 2010 | Schedule 6 (item 73): 29 June 2010 | — |
| |
Provision affected | How affected |
S. 37......................................... | rep. No. 75, 2010 |
0
0
0