Taxation Laws Amendment Act (No. 5) 1989 (Cth)
This compilation was prepared on 9 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 CRIMES (TAXATION OFFENCES) ACT 1980
Principal Act
Interpretation
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Interpretation
Exemption of certain pensions
Repeal of section and substitution of new section:
Tax-related expenses
Gifts, pensions etc.
Interpretation
Insertion of new section:
Deductions to be allowable for expenditure incurred in gaining
the investment component of certain premiums
Deductions not allowable for expenditure incurred in gaining certain
premium income
Insertion of new sections:
160AIA. Self-determination of credits by taxpayers
160AIB. Reliance by Commissioner on claim for credit
Insertion of new section:
160AJA. Deemed determination of credit by Commissioner
Amendment of determinations
Information for credit to be furnished within 4 years
Interpretation
Residence requirement for credit to arise in relation to year of income
Insertion of new sections:
160APMA. Initial payment of tax
160APMB. Subsequent payments of tax before determination of taxable
income
Insertion of new section:
160APNA. Notional receipt of company tax assessment
Residence requirement for debit to arise in relation to year of income
Insertion of new sections:
160APYA. Crediting of initial payment of tax by a company
160APYB. Refunds in respect of initial payment of tax by a company
Determination of estimated debit
Liability to franking deficit tax
Insertion of new sections:
160AQKA. Self-determination of offsets by companies
160AQKB. Reliance by Commissioner on claim for offset
Residence requirement for credit or debit to arise
Company to keep records
Cost base etc.
Annual returns
Insertion of new section:
166A. Deemed assessment
Amendment of assessments
Payment of interest by taxpayer where assessment or determination is
amended
Commissioner may collect tax from person owing money to taxpayer
Heading to Division 1A of Part VI
Insertion of new section:
221AAA. Application
Insertion of new Division:
General interpretative provisions
Net capital gains to be disregarded in making certain
calculations
When income tax becomes due and payable
Modified application of Division for certain entities
with substituted accounting periods
Liability to make payments under this Division
When initial payment to be made
Amount of initial payment
Power of relevant entity to revise estimate in
certain circumstances
Statement as to basis of estimate
Circumstances in which initial payment not required
Election to make single payment
Power of Commissioner to reduce amount of initial payment
or waive initial payment
Power of Commissioner to vary estimate of income tax
Initial payment avoidance arrangements
Additional tax if income or deduction transferred under
avoidance scheme
Additional payments to form part of initial payment
221AZA. Refund to reduce initial payment of tax
221AZB. Notional tax
221AZC. Modification of notional tax for certain entities with
substituted early accounting periods
221AZD. Final tax liability
221AZE. Additional tax if estimate incorrect
221AZF. Crediting of payments
Liability to provisional tax
Interpretation
Deductions from certain withdrawals from film accounts
Penalty for failure to keep or furnish documents or information
Penalty for false or misleading statements
Repeal of section and substitution of new section:
Keeping of records
Taxable contributions
Fixed interest complying ADFs - exemption of income attributable to
certain 25 May 1988 deposits
Rebates
Application of certain amendments
Transitional - section 69 of the amended Act
Transitional - subsection 113 (2) of the amended Act
Transitional - section 274 of the amended Act
PART 4 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953
Principal Act
Interpretation
Penalty taxes to be alternative to prosecution for certain offences
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 1
Short
title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 5) 1989.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 2
Commencement
[
2. (1) Subject to subsection (2), this Act commences on the day on which it
receives the Royal Assent.
(2) Subparagraph 78 (1) (a) (xcvi) of the Income Tax Assessment Act 1936
inserted by section 9 of this Act is to be taken to have come into effect on
10 November 1989.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Crimes (Taxation Offences) Act
1980.*1*
*1* No. 156, 1980, as amended. for previous amendments, see No. 123, 1984; No.
47, 1985; Nos. 41, 48, 76 and 154, 1986; Nos. 58, 61, 140 and 145, 1987; and
97, 1988.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 4
Interpretation
4. Section 3 of the Principal Act is amended:
(a) by inserting "221ay, 221aze" in paragraph (b) of the definition of
"income tax" after "221ag";
(b) by inserting after paragraph (c) of that definition the following
paragraph:
any initial payment of income tax that is required to be made under
Division 1b of Part VI of the Income Tax Assessment Act;".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 5
Principal Act
5. In this Part, "Principal Act" means the Income Tax Assessment Act
1936.*2*
*2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No.
5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69,
1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37,
1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48,
1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No.
43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65,
1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960;
Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46,
68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos.
19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101,
1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972;
Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20,
1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,
165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171
and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24,
57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and
175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49,
51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;
No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and
174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,
109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,
1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,
1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by
No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as
amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);
Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70,
73, 105, 107 and 000, 1989; and No. 97, 1989 (as amended by No. 105, 1989).
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 6
Interpretation
6. (1) Section 6 of the Principal Act is amended by omitting paragraph (a)
of the definition of "assessment" in subsection (1) and substituting the
following paragraph:
the ascertainment of:
the amount of taxable income; or
in the case of a taxpayer being the trustee of a unit trust that is a
corporate unit trust within the meaning of section 102J - the net income of
the trust as defined by section 102D; or
in the case of a taxpayer being the trustee of a unit trust that is a
public trading trust within the meaning of section 102R - the net income of
the trust as defined by section 102M; or
in the case of any other taxpayer that is the trustee of a trust
estate but excluding a taxpayer that is the trustee of a fund or unit trust
referred to in paragraph (a), (b) or (c) of the definition of 'eligible
entity' in subsection 267 (1) - so much of the net income of the trust estate
as is net income in respect of which the trustee is liable to pay tax;
and of the tax payable on that taxable income or net income; or".
(2) The amendment made by subsection (1) applies, and is to be taken to have
applied, in respect of all years of income.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 7
Exemption of certain pensions
7. Section 23AD of the Principal Act is amended:
by omitting "172" from paragraph (a) of the definition of "excepted
pension" and substituting "237";
by omitting from paragraph (3) (e) "172" and substituting "237".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 8
8. Section 69 of the Principal Act is repealed and the following section is
substituted:
Tax-related expenses
"69. (1) Subject to this section, expenditure (other than expenditure of a
capital nature) incurred by the taxpayer on or after 1 July 1989, to the
extent to which the expenditure is in respect of a tax-related matter, is an
allowable deduction for the year of income in which the expenditure is
"(2) For the purposes of the application of this section to a
taxpayer, a reference in this section to a tax-related matter is a reference
to:
the management or administration of the income tax affairs of the
taxpayer; or
compliance with an obligation imposed on the taxpayer by a law of the
Commonwealth, insofar as that obligation relates to the income tax affairs of
another taxpayer;
but does not include a reference to an offence-related matter.
"(3) For the purposes of this section, expenditure incurred by the taxpayer
in respect of a tax-related matter is not to be taken to be expenditure of a
capital nature only because the income tax affairs concerned relate to matters
of a capital nature.
"(4) A deduction is not allowable under subsection (1) in respect of a fee
or commission for professional advice concerning the operation of a law
relating to taxation unless the advice is provided by a recognised
professional tax adviser.
"(5) A deduction is not allowable under subsection (1) for expenditure that
consists of:
income tax; or
an amount payable under Part VI; or
a financing cost in relation to an amount covered by paragraph (a) or
(b) "(6) A provision of this Act (including a provision of section 51) that
expressly prevents or restricts the operation of section 51 applies in the
same way to this section.
"(7) For the purposes of this section, where:
a taxpayer dies during a year of income; and
the trustee of the estate of the deceased taxpayer incurs expenditure
on or after 1 July 1989 that, if it had been incurred by the taxpayer during
would have been an allowable deduction to the taxpayer
under subsection (1);
then, in the assessment of the trustee upon the assessable income derived by
the deceased taxpayer, the expenditure is to be taken to be expenditure
incurred by the taxpayer during that year of income.
"(8) If:
a deduction has been allowed or is allowable under subsection (1) to a
taxpayer for any expenditure; and
that expenditure, or any part of it, is:
reimbursed to the taxpayer; or
paid for the taxpayer by another person; or
recouped by the taxpayer from another person;
the assessable income of the taxpayer of the year of income in which the
amount is so reimbursed, paid for or recouped includes that amount.
"(9) For the purposes of this Act, where property is used by the taxpayer on
or after 1 July 1989 for a tax-related matter, that use of the property by the
taxpayer is to be taken to be for the purpose of producing assessable income
of the taxpayer.
"(10) Subsection (9) has effect subject to a provision of this Act that
expressly provides that a particular use of property is not to be taken to be
for the purpose of producing assessable income.
"(11) In this section:
'financing cost', in relation to an amount (in this definition called the
'financed amount'), means expenditure incurred by the taxpayer to the extent
to which it is incurred in respect of obtaining finance for the financed
amount and, without limiting the generality of the foregoing, includes:
interest or a payment in the nature of interest; and
expenses of borrowing;
'income tax' means tax (however described) that is:
imposed by an Act other than this Act; and
payable under this Act;
'offence-related matter' means a matter relating to the commission, or
possible commission, of an offence against a law of the Commonwealth, of a
State, of a Territory or of a foreign country and, without limiting the
generality of the foregoing, includes a matter relating to:
the investigation of such an offence; and
a prosecution for, or other proceedings in relation to, such an
offence;
'recognised professional tax adviser' means:
a registered tax agent (within the meaning of section 251A); or
a person exempted under subsection 251L (2) from the operation of
section 251L; or
a person who is enrolled as a barrister, a solicitor or a barrister and
solicitor of a federal court or a court of a State or Territory;
'tax-related matter' has the meaning given by subsection (2).".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 9
Gifts, pensions etc.
9. Section 78 of the Principal Act is amended by adding after subparagraph
(1) (a) (xciv) the following subparagraphs:
a public fund established and maintained exclusively for
providing money for the acquisition, construction or maintenance of a building
where:
the building is used or to be used solely or principally as
residential accommodation for students whose usual place of residence is in a
rural area and who are undertaking primary or secondary education courses, or
special education programs for children with disabilities, at a school or
schools in the same locality as the residential accommodation; and
the capital or recurrent costs of the school or schools are
funded (in whole or in part) by the Commonwealth, a State or a Territory; and
the residential accommodation is provided by the Commonwealth, a
State or a Territory, by a public authority or by a company that is not
carried on for the purposes of profit or gain to its individual members and
is, by the terms of the company's constituent document, prohibited from making
any distribution whether in money, property or otherwise, to its members;
"(xcvi) the Nursing Mothers' Association of Australia;".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 10
Interpretation
10. Section 110 of the Principal Act is amended by inserting in subsection
(1) the following definitions:
" 'approved form' means a form approved in writing by the Commissioner for
the purposes of the provision in which the expression appears;
'authorised actuary', in relation to a life assurance company, means:
if the company is registered under the Life Insurance Act 1945 - the
appointed actuary of the company (within the meaning of that Act); or
in any other case - a Fellow or an Accredited Member of the Institute
of Actuaries of Australia;
'investment component', in relation to a premium received in
respect of a life assurance policy, means so much of the premium as does not
consist of a risk component;
'risk component', in relation to a premium received in respect of a
life assurance policy, means the risk component (if any) of the premium worked
out on the basis specified in the regulations;".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 11
11. After section 111a of the Principal Act the following section is
inserted:
Deductions to be allowable for expenditure incurred in gaining the investment
component of certain premiums
"111AA. (1) This section applies to premiums received in respect of life
assurance policies other than:
superannuation premiums; or
premiums received in respect of exempt policies; or
specified roll-over amounts.
"(2) For the purposes of determining the deductions allowable to a life
assurance company, the investment component of a premium to which this section
applies is to be treated as assessable income.
"(3) This section does not apply to premiums derived by a life assurance
company in a year of income unless the company obtains a certificate by an
authorised actuary, in the approved form, with respect to the operation of
this section, before the date of lodgment of the return of income of the
company of the year of income or within such further time as the Commissioner
allows.".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 12
Deductions not allowable for expenditure incurred in gaining certain premium
income
12. Section 112 of the Principal Act is amended:
(a) by omitting from subsection (1) all the words after "exclusively" and
substituting the following words and paragraphs:
"in gaining:
premiums that are excluded from assessable income by section 111 other
than:
superannuation premiums; or
premiums to which section 111AA applies; or
the risk component of premiums to which section 111AA applies.";
(b) by omitting subsection (2).
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 13
13. (1) After section 160AI of the Principal Act the following sections are
inserted:
Self-determination of credits by taxpayers
"160AIA. A person may, for the purpose of making a claim for a credit in
relation to a year of income (being a claim made in the return furnished by
the person in respect of income of that year of income or made after the
furnishing of that return), determine:
whether a credit is allowable to the person; and
if the person determines that a credit is so allowable - the amount of
the credit.
Reliance by Commissioner on claim for credit
"160AIB. (1) Where a person makes a claim for a credit (whether in a return
of income of a year of income or otherwise), the Commissioner may, for the
purpose of determining whether a credit is allowable to the person and, if the
Commissioner determines that a credit is allowable, for the purpose of
determining the amount of the credit, accept, in whole or in part, any
statement in the claim that is relevant to the determination.
"(2) Despite subsection (1), where, in a document furnished with a claim for
a credit, a question is raised that is relevant to the determination of the
claim, the Commissioner must give attention to that question.
"(3) In deciding whether a determination of a claim for a credit is correct,
any determination, opinion or judgment of the Commissioner made, held or
formed in connection with the consideration of an objection against the
determination of the claim is deemed to have been made, held or formed when
the determination of the credit was made.".
(2) The sections inserted by subsection (1) apply to credits in respect of
tax in respect of the year of income ending on 30 June 1990 and in respect of
all subsequent years of income.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 14
14. (1) After section 160AJ of the Principal Act the following section is
inserted:
Deemed determination of credit by Commissioner
"160AJA. Where a person who has furnished a return in respect of income of a
year of income makes in that return or at a later time a claim for a credit in
relation to that year of income that specifies the amount of the credit
claimed:
the Commissioner is deemed to have made, at the time when the claim was
made, a determination:
that a credit is allowable to the person; and
that the amount of the credit is the amount specified in the claim;
and
the claim is deemed to be a notice of the deemed determination and to
be under the hand of the Commissioner; and
the notice referred to in paragraph (b) is deemed to have been served
on the person when the claim was made.".
(2) The section inserted by subsection (1) applies to credits in respect of
tax in respect of the year of income ending on 30 June 1990 and in respect of
all subsequent years of income.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 15
Amendment of determinations
15. (1) Section 160AK of the Principal Act is amended:
(a) by omitting from subsection (1) "subsections (2) and (3)" and
substituting "subsection (2)";
(b) by omitting subsections (2) and (3) and substituting the following
subsection:
"(2) An amendment of a determination is not to be made after the end of 4
years after the original determination date except to correct an error in
calculation or a mistake of fact or in consequence of an adjustment, credit or
refund of Australian tax or foreign tax.".
(2) The amendments made by subsection (1) apply to determinations of credits
in respect of tax in respect of the year of income ending on 30 June 1990 and
in respect of all subsequent years of income.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 16
Information for credit to be furnished within 4 years
16. (1) Section 160AM of the Principal Act is amended by omitting "3" (first
occurring) and substituting "4".
(2) The amendment made by subsection (1) applies to determinations of
credits in respect of tax in respect of the year of income ending on 30 June
1990 and in respect of all subsequent years of income.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 17
Interpretation
17. (1) Section 160APA of the Principal Act is amended:
by inserting "any of the following" after "does not include" in the
definition of "frankable dividend";
by omitting "or" from the end of paragraph (d) of the definition of
"frankable dividend";
by adding at the end of the definition of "frankable dividend" the
following paragraph:
a dividend that is a debt dividend for the purposes of section
46d;".
(2) Section 160APA of the Principal Act is amended by inserting after
subparagraph (a) (i) of the definition of "applicable general company tax
rate" the following subparagraphs:
the making of an initial payment of tax by a company in respect of a
year of income under section 221AP;
the making of any further payment by a company on account of tax in
respect of a year of income under Division 1b of Part VI;
the payment of a refund to a company in respect of a year of income
under Division 1B of Part VI;".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 18
Residence requirement for credit to arise in relation to year of income
18. Section 160APK of the Principal Act is amended by inserting after
paragraph (a) the following word and paragraph:
the making of an initial payment of tax that the company is
required to make under section 221AP in respect of a year of income or the
making of a further payment by the company on account of tax in respect of
that year of income; or".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 19
19. After section 160APM of the Principal Act the following sections are
inserted:
Initial payment of tax
"160APMA. Where, on a particular day, 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, there arises on that day a
franking credit of the company equal to the adjusted amount in relation to the
amount paid.
Subsequent payments of tax before determination of taxable income
"160APMB. If, after a company makes an initial payment of tax referred to in
section 160APMA 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, there arises, on the day on which that further
payment is made, a franking credit of the company equal to the adjusted amount
in relation to the amount of that further payment.".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 20
20. After section 160APN of the Principal Act the following section is
inserted:
Notional receipt of company tax assessment
"160APNA. Where, on a particular day, a company is, under section 166a,
deemed to have been served with a notice of an original company tax assessment
for a year of income, there arises, on that day, a franking credit of the
company equal to the adjusted amount in relation to the company tax.".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 21
Residence requirement for debit to arise in relation to year of income
21. Section 160APW of the Principal Act is amended by inserting after
paragraph (a) the following word and paragraph:
the making of an initial payment of tax that the company is
required to make under section 221AP in respect of a year of income or the
making of a further payment by the company on account of tax in respect of
that year of income; or".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 22
22. After section 160APY of the Principal Act the following sections are
inserted:
Crediting of initial payment of tax by a company
"160APYA. Where an initial payment of tax made by a company under section
221AP in respect of a year of income is credited by the Commissioner under
section 221AZF, there arises, on the day on which the payment is credited, a
franking debit of the company equal to the adjusted amount in relation to the
amount so credited.
Refunds in respect of initial payment of tax by a company
"160APYB. Where a company receives an amount as a refund under subsection
221AQ (3), 221AR (6), 221AU (4), 221AV (4), 221AW (5) or 221AX (14), there
arises, on the day on which the company receives the amount, a franking debit
of the company equal to the adjusted amount in relation to the amount
received.".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 23
Determination of estimated debit
23. Section 160AQD of the Principal Act is amended:
(a) by adding at the end of paragraph (1) (b) "or an initial payment of tax
under section 221AP";
(b) by inserting in paragraph (1) (c) "or of the initial payment of tax"
after "instalments".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 24
Liability to franking deficit tax
24. Section 160aqj of the Principal Act is amended by adding at the end the
following subsection:
"(2) Where a company that has, in respect of a year of income:
given a notice under paragraph 221AQ (1) (a); and
made an initial payment of tax under section 221AP;
would, but for this subsection, be liable to pay tax under subsection (1) of
this section in respect of the franking year in which the last day of that
year of income occurs (in this subsection called the 'relevant franking
deficit tax'):
if the amount of the relevant franking deficit tax does not exceed the
amount of the initial payment of tax - the company is not liable to pay tax
under subsection (1) in respect of that franking year; or
if the amount of the relevant franking deficit tax exceeds the amount
of the initial payment of tax - the tax that the company is liable to pay
under subsection (1) in respect of that franking year is an amount equal to
the excess.".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 25
25. (1) After section 160AQK of the Principal Act the following sections are
inserted:
Self-determination of offsets by companies
"160AQKA. A company may, for the purpose of making a claim for an offset in
relation to a year of income (being a claim made in the return furnished by
the company in respect of income of that year of income or made after the
furnishing of that return), determine:
whether an offset is allowable to the company; and
if the company determines that an offset is so allowable - the amount
of the offset.
Reliance by Commissioner on claim for offset
"160AQKB. (1) Where a company makes a claim for an offset (whether in a
return of income of a year of income or otherwise), the Commissioner may, for
the purpose of determining whether an offset is allowable to the company and,
if the Commissioner determines that an offset is allowable, for the purpose of
determining the amount of the offset, accept, in whole or in part, any
statement in the claim that is relevant to the determination.
"(2) Despite subsection (1), where, in a document furnished with a claim for
an offset, a question is raised that is relevant to the determination of the
claim, the Commissioner must give attention to that question.
"(3) In deciding whether a determination of a claim for an offset is
correct, any determination, opinion or judgment of the Commissioner made, held
or formed in connection with the consideration of an objection against the
determination of the claim is deemed to have been made, held or formed when
the determination of the offset was made.".
(2) The sections inserted by subsection (1) apply to offset determinations
in respect of company tax in respect of the franking year ending on 30 June
1990 and in respect of all subsequent franking years.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 26
Residence requirement for credit or debit to arise
26. Section 160ARDD of the Principal Act is amended by adding at the end of
paragraph (2) (a) "or an initial payment of tax that a company is required to
make under section 221AP".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 27
Company to keep records
27. Section 160ASC of the Principal Act is amended:
(a) by adding at the end of paragraph (b) "and";
(b) by omitting paragraph (c);
(c) by omitting "(2) (a)" from paragraph (d) and substituting "(5) (a)".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 28
Cost base etc.
28. Section 160ZH of the Principal Act is amended by omitting from
subsections (5) and (7) all the words after "but excluding any expenditure"
and substituting the following words and paragraphs:
"incurred by way of fees or commission for professional advice that:
concerns the operation of this Act; and
was not provided by a recognised professional tax adviser (within the
meaning of section 69).".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 29
Annual returns
29. (1) Section 161 of the Principal Act is amended by omitting subsection
(1) and substituting the following subsections:
"(1) Every person must, if required by the Commissioner by notice published
in the Gazette, furnish to the Commissioner:
in whichever of the forms of return provided by the Commissioner for
the purpose is applicable; and
in the prescribed manner; and
within the period specified in the notice or such further period as the
Commissioner allows;
a return signed by the person, containing such information as is required by
the form of return in relation to:
the income (other than income upon which withholding tax is payable),
and profits or gains of a capital nature, derived by the person during the
year of income; and
any deductions or losses, being losses of a capital nature, claimed by
the person.
"(1a) The Commissioner may, in the notice, exempt from liability to furnish
returns such classes of persons not liable to pay income tax as the
Commissioner thinks fit, and a person so exempted need not furnish a return
unless the person is required by the Commissioner to do so.".
(2) The amendment made by subsection (1) applies in respect of the year of
income ending on 30 June 1990 and in respect of all subsequent years of
income.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 30
30. After section 166 of the Principal Act the following section is
inserted:
Deemed assessment
"166A. Where a taxpayer that is a relevant entity within the meaning of
Division 1b of Part VI furnishes a return in respect of income of a year of
income to which that Division applies:
the Commissioner is deemed to have made:
if the entity furnishes the return on or before the day by which the
entity is required to make a payment under section 221azd in respect of that
year of income - on that day; or
if the entity furnishes the return after that day - on the day on
which the return is furnished;
an assessment of the relevant taxable income or net income, as the case may
be, and of the tax payable on that taxable income or net income, being those
respective amounts as specified in the return; and
on and after the day on which the Commissioner is deemed to have made
deemed assessment
and to be under the hand of the Commissioner; and
the notice referred to in paragraph (b) is deemed to have been served
on the entity on the day on which the Commissioner is deemed to have made the
assessment.".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 31
Amendment of assessments
31. (1) Section 170 of the Principal Act is amended:
(a) by omitting subsections (2), (3) and (4) and substituting the following
subsections:
"(2) Subject to this section, where there has been an avoidance of tax, the
Commissioner may:
if the Commissioner is of the opinion that the avoidance of tax is due
to fraud or evasion - at any time; and
in any other case:
where the taxpayer is a relevant entity within the meaning of Division
1b of Part VI and the assessment is deemed by section 166A to have been made -
within 4 years from the date upon which the assessment is so deemed to have
been made; or
otherwise - within 4 years from the date upon which the tax became due
and payable under the assessment;
amend the assessment by making such alterations in it or additions to it as
the Commissioner thinks necessary to correct the assessment.
"(3) An amendment effecting a reduction in the liability of a taxpayer under
an assessment is not to be made after the end of 4 years from:
where the taxpayer is a relevant entity within the meaning of Division
1B of Part VI and the assessment is deemed by section 166A to have been made -
(b) in
any other case - the date upon which the tax became due and payable under the
assessment.
"(4) Where:
the Commissioner has begun an examination of the affairs of a taxpayer;
and
the examination was not completed within the period within which the
Commissioner may amend an assessment to which the examination relates under
subsection (2) or, if that period has been extended by any previous order or
orders of the Federal Court of Australia made under subsection (4a), or by any
previous consent or consents of the taxpayer given under subsection (4b),
within that period as so extended;
the Commissioner may, before the end of the period referred to in paragraph
(b) of this subsection, apply to the Federal Court for an order extending, or
request the taxpayer to consent to the extension of, the period within which
the Commissioner may amend the assessment under paragraph (2)(b).
"(4a) If, on application made to the Federal Court of Australia in
accordance with subsection (4), the Court is satisfied that it was not
reasonably practicable, or it was inappropriate, for the Commissioner to
complete the examination within the period referred to in paragraph (4)(b)
because of any action taken by the taxpayer or any failure of the taxpayer to
take action that it would have been reasonable for the taxpayer to take, the
Court may make an order extending the period within which the Commissioner may
amend the assessment under paragraph (2)(b) for such period as the Court
considers appropriate.
"(4b) If a request is made to the taxpayer in accordance with subsection
(4), the taxpayer may, by writing, consent to the extension of the period
within which the Commissioner may amend the assessment under paragraph (2)(b)
for such period as is specified in the instrument of consent.
"(4c) In subsection (4a):
a reference to action taken by a taxpayer includes a reference to:
the institution by a taxpayer of a proceeding before a court or
tribunal; and
the doing by a taxpayer of any act or thing that hinders or prevents
the exercise by the Commissioner or an officer authorised by the Commissioner
of any power under section 263; and
a reference to a failure by a taxpayer to take action includes a
reference to the failure by a taxpayer to comply with subsection 263 (3) or a
requirement made under section 264.";
by omitting from subsections (5), (6), (9) and (9a) "3" and
substituting "4".
(2) The amendments made by subsection (1) apply to assessments in respect of
income of the year of income ending on 30 June 1990 or any subsequent year of
income that are made after the commencement of this section.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 32
Payment of interest by taxpayer where assessment or determination is amended
32. (1) Section 170aa of the Principal Act is amended:
(a) by inserting after subsection (1) the following subsection:
"(1a) Subject to this section, where an amendment of a determination
reducing a credit, or an offset within the meaning of Part IIIaa, allowable to
a taxpayer is made, the taxpayer is liable to pay interest to the
Commissioner, calculated in accordance with subsection (4), on the amount (in
this section also called the 'principal amount') by which the amount of the
credit or offset allowable to the taxpayer under the amended determination is
less than the amount of the credit or offset allowable to the taxpayer under
the determination that was amended.";
(b) by inserting in subsections (2) and (3) "or (1a)" after "(1)";
(c) by inserting in subsection (4) "or under subsection (1a) in relation to
an amended determination (in this subsection called the 'amended
determination')" before "in respect of a year of income";
(d) by inserting in subparagraph (4) (a) (i) "or (1a)" after "(1)";
(e) by inserting in paragraph (4) (a) "or the amended determination, as the
case may be," after "current amended assessment";
(f) by inserting in subsection (8) ", (1a)" after "(1)".
(2) The amendments made by subsection (1) apply in respect of amendments of
determinations where those last-mentioned amendments are made after the
commencement of this section.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 33
Commissioner may collect tax from person owing money to taxpayer
33. Section 218 of the Principal Act is amended:
(a) by inserting in paragraph (b), and in subparagraph (iii) of paragraph
(c), of the definition of "tax" in subsection (6b) "1b," after "1a,";
(b) by inserting in the definition of "taxpayer" in subsection (6b)b," after
"1A,".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 34
Heading to Division 1a of Part VI
34. The heading to Division 1A of Part VI is amended by adding at the end
"in respect of Years of Income before the Year of Income ending on 30 June
1990".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 35
35. Before section 221AA of the Principal Act the following section is
inserted in Division 1A of Part VI:
Application
"221AAA. This Division does not apply in respect of income of the year of
income ending on 30 June 1990 or of any subsequent year of income.".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 36
36. After Division 1A of Part VI of the Principal Act the following Division
is inserted:
"Division 1B - Collection of Tax on Companies and Trustees of
certain Funds
General interpretative provisions
''221AK. (1) In this Division, unless the contrary intention appears:
'AD/RLA component' has the same meaning as in Division 8 of Part
III;
'amount', in relation to an estimate by a relevant entity of the
income tax that will be payable in respect of its taxable income of a year of
income, includes a nil amount;
'company' includes a trustee of a corporate unit trust and a trustee
of a public trading trust but does not otherwise include a company in the
capacity of a trustee;
'corporate unit trust' means a unit trust that is a corporate unit
trust within the meaning of Division 6B of Part III;
'CS/RA component':
in relation to the taxable income of a life assurance company - has
the same meaning as in Division 8 of Part III; or
in relation to the taxable income of a registered organization - has
the
same meaning as in Division 8A of Part III;
'EIB component' has the same meaning as in Division 8A of
Part III;
'initial payment of tax' means a payment of tax that is required by
section 221AP to be made by a relevant entity;
'month' means one of the 12 months of the year;
'NCS component':
in relation to the taxable income of a life assurance company - has
the same meaning as in Division 8 of Part III; or
in relation to the taxable income of a registered organization - has
the
same meaning as in Division 8A of Part III;
'non-fund component' has the same meaning as in Division 8 of Part
III;
'public trading trust' means a unit trust that is a public trading
trust within the meaning of Division 6C of Part III;
'relevant entity', in relation to a year of income, means:
a company; or
any person in the capacity of a trustee of:
a fund that is an eligible ADF in relation to that year of income; or
a fund that is an eligible superannuation fund in relation to that
year
of income; or
a unit trust that is a pooled superannuation trust in relation to
that
year of income;
'registered organization' has the same meaning as in Division
8A of Part III;
'taxable income':
in relation to a relevant entity being the trustee of a corporate unit
trust or of a public trading trust, means the net income of the corporate
unit
trust or of the public trading trust, as the case may be; and
in relation to a relevant entity being the trustee of a fund or unit
trust referred to in paragraph (b) of the definition of 'relevant entity',
means the taxable income of the fund or trust, as the case may be;
'year of income to which this Division applies' means the year of
income ending on 30 June 1990 or a subsequent year of income.
''(2) Subject to subsection (1), expressions used in this Division that
are defined in section 267 have, in this Division, the same meanings as they
have in that section.
''(3) In sections 206, 207, 208, 209, 214, 254, 255, 258 and 259, but not
in any other section, 'income tax' or 'tax' includes a payment that a
relevant
entity is required to make as an initial payment of tax or a final payment of
tax under this Division.
''(4) In sections 208, 209, 214, 254, 255, 258 and 259, but not in any
other section, 'income tax' or 'tax' includes additional tax payable under
section 221AY or 221AZE.
''(5) The ascertainment of the amount of any notional tax, or the amount
of any initial payment of tax, in accordance with this Division is not to be
taken to be an assessment within the meaning of any of the provisions of this
Act.
''(6) The amount of an initial payment of tax is to be calculated
to the nearest dollar.
Net capital gains to be disregarded in making certain calculations
"221AL. In the making of an estimate for the purpose of calculating the
amount of an initial payment of tax to be made by a relevant entity under this
Division, a reference in this Division to the income tax that will be or would
be payable in respect of the taxable income of the entity of a year of income
is, in the case of an entity that is a company whose assessable income of that
year of income included a net capital gain within the meaning of Part IIIa, to
be taken to be a reference to:
in the case of a company other than a life assurance company or a
registered organization - the income tax that would be payable in respect of
the amount that would have been the taxable income of that company of that
year of income if that net capital gain had not been included; and
in the case of a life assurance company - the sum of:
the income tax that will be payable in respect of the CS/RA component
of the company's taxable income of that year of income; and
in relation to each of the NCS component, the non-fund component
(if any) and the AD/RLA component of the company's taxable income of that year
of income:
if the part of the company's assessable income of that year of income
to which that component relates included a net capital gain within the meaning
of Part IIIA - the income tax that would be payable in respect of the amount
that would have been that component if that net capital gain had not been
included; or
otherwise - the income tax that will be payable in respect of that
component; and
in the case of a registered organization - the sum of:
the income tax that will be payable in respect of the CS/RA
component of the organization's taxable income of that year of income; and
in relation to each of the NCS component and the EIB component
of the organization's taxable income of that year of income:
if the part of the organization's assessable income of that year of
income to which that component relates included a net capital gain within the
meaning of Part IIIA - the income tax that would be payable in respect of the
amount that would have been that component if that net capital gain had not
been included; or
otherwise - the income tax that will be payable in respect of that
component.
When income tax becomes due and payable
"221AM. For the purposes of this Act, income tax in respect of a relevant
entity's taxable income of a year of income to which this Division applies
becomes due and payable:
if the entity furnishes a return in respect of its income of that year
of income on or before the day by which the entity is required to make a
payment under section 221AZD in respect of its taxable income of that year of
income - on that day; or
if the entity furnishes a return in respect of that income after that
day - on the day on which the return is furnished.
Modified application of Division for certain entities with substituted
accounting periods
"221AN. (1) Subject to subsection (2), this section applies, in respect of a
year of income to which this Division applies, to a relevant entity that has
adopted or adopts under this Act, in lieu of that year of income, an
accounting period ending on a date (in this section called the 'substituted
date') other than 30 June (in this section called the 'relevant 30 June').
"(2) This section does not apply to an entity in respect of a year of income
if the substituted date is earlier than the relevant 30 June but not earlier
than 1 June next preceding the relevant 30 June.
"(3) For the purposes of the application of this Division to an entity to
which this section applies in respect of a year of income:
if the substituted date is earlier than 31 December next preceding the
relevant 30 June:
the reference in section 221AP to 28 July next following a year
of income is to be taken to be a reference to 28 January next following that
31 December; and
the reference in section 221AZD to 15 March next following a
year of income is to be taken to be a reference to:
in the case of an entity that has made an election under subsection
221AU (1) in respect of the year of income - 15 June next following that 31
December; or
in any other case - 15 September next following that 31 December; or
if the substituted date is not earlier than 31 December next preceding
the relevant 30 June but is earlier than 1 June next preceding the relevant 30
June:
the reference in section 221AP to 28 July next following a year
of income is to be taken to be a reference to the 28th day of the month next
following the month in which the substituted date occurs; and
the reference in section 221AZD to 15 March next following a
year of income is to be taken to be a reference to:
in the case of an entity that has made an election under subsection
221AU (1) in respect of the year of income - the 15th day of the sixth month
next following the month in which the substituted date occurs; or
in any other case - the 15th day of the ninth month next following the
month in which the substituted date occurs; or
if the substituted date is later than the relevant 30 June:
the reference in section 221AP to 28 July next following a year
of income is to be taken to be a reference to the 28th day of the month next
following the month in which the substituted date occurs; and
the reference in section 221AZD to 15 March next following a
year of income is to be taken to be a reference to:
in the case of an entity that has made an election under subsection
221AU (1) in respect of the year of income - the 15th day of the sixth month
next following the month in which the substituted date occurs; or
in any other case - the 15th day of the ninth month next following the
month in which the substituted date occurs;
or the 15th day of June next following the relevant 30 June, whichever is the
earlier day.
Liability to make payments under this Division
"221AO. For the purpose of securing generally the more expeditious
collection of income tax payable by relevant entities, a relevant entity is
liable to make payments of income tax in accordance with this Division in
respect of its taxable income of each year of income to which this Division
applies.
When initial payment to be made
"221AP. Subject to sections 221AN, 221AT, 221AU and 221AV, a relevant entity
must make an initial payment of tax in respect of its taxable income of a year
of income to which this Division applies not later than 28 July next following
that year of income.
Amount of initial payment
"221AQ. (1) Subject to this Division, the amount of an initial payment of
tax to be made by a relevant entity in respect of its taxable income of a year
of income is 85% of:
the amount specified in a written notice given by the entity to the
Commissioner to be the amount estimated by the entity to be the income tax
that will be payable in respect of its taxable income of that year of income;
or
if no such notice is given - the entity's notional tax in respect of
that year of income.
"(2) A notice given under paragraph (1) (a) in relation to a year of
income:
must specify the amount estimated by the entity to be the income tax
that will be payable in respect of its taxable income of that year of income;
and
is irrevocable.
"(3) If:
a relevant entity gives a notice under paragraph (1) (a) at a time
after the relevant entity made the initial payment of tax in respect of its
taxable income of the year of income to which the notice relates; and
the entity had paid as that initial payment an amount that was not less
than 85% of its notional tax in respect of that year of income; and
the amount estimated by the entity to be the income tax that will be
payable in respect of its taxable income of that year of income is less than
its notional tax in respect of that year of income;
the Commissioner must, as soon as practicable, refund to the entity an amount
equal to 85% of the difference between the amount so estimated and that
notional tax.
Power of relevant entity to revise estimate in certain circumstances
"221AR. (1) A relevant entity that had given a notice under paragraph 221AQ
(1) (a) in respect of a year of income at the time when the initial payment of
tax in respect of its taxable income of that year of income was made may,
before the date by which it is required to make a final payment of tax in
respect of its taxable income of that year of income, by written notice given
to the Commissioner, make a revised estimate of the amount of the income tax
that will be payable in respect of its taxable income of that year of income
in substitution for the estimate made by it under that paragraph.
"(2) An entity is entitled to make only one revised estimate under
subsection (1) in respect of each year of income.
"(3) If the Commissioner has made a determination under section 221AW in
respect of the income tax that will be payable by a relevant entity in respect
of its taxable income of a year of income, the entity is not entitled to make
a revised estimate under subsection (1) of this section of that income tax
that would be less than the amount determined by the Commissioner.
"(4) If, by virtue of a determination made by the Commissioner under section
221AX, the amount estimated by a relevant entity under paragraph 221AQ (1) (a)
to be the income tax that will be payable in respect of its taxable income of
a year of income is increased, the entity is not entitled to make a revised
estimate under subsection (1) of this section of that income tax that would be
less than the increased amount.
"(5) If a relevant entity makes a revised estimate under subsection (1) of
the income tax that will be payable in respect of its taxable income of a year
of income that exceeds the amount of the estimate of that income tax that was
made by the entity under paragraph 221AQ (1) (a), the entity must pay to the
Commissioner, when notice of the revised estimate is given to the
Commissioner, an amount equal to 85% of the excess.
"(6) If a relevant entity makes a revised estimate under subsection (1) of
the income tax that will be payable in respect of its taxable income of a year
of income that is less than the amount of the estimate of that income tax that
was made by the entity under paragraph 221AQ (1) (a), the Commissioner must,
as soon as practicable, refund to the entity an amount equal to 85% of the
difference.
"(7) Nothing in this section prevents a relevant entity that has made an
initial payment of tax in respect of its taxable income of a year of income
from making a further payment or payments on account of tax in respect of that
taxable income at any time or times before the day on which the entity makes a
final payment of tax in respect of that taxable income under section 221AZD.
Statement as to basis of estimate
"221AS. If a relevant entity makes an estimate or revised estimate of the
income tax that will be payable in respect of its taxable income of a year of
income, the entity must, if required to do so by the Commissioner by written
notice served on the entity, give to the Commissioner, within the period
specified in the notice, a written statement showing the basis on which the
estimate or revised estimate, as the case may be, was made and containing such
information and explanations in connection with the application of this
Division (including, without limiting the generality of the foregoing,
information and explanations as to any matters referred to in
sub-subparagraphs 221AX (4) (b) (ii) (a) to (h) (inclusive)) as are specified
in the notice.
Penalty: $3,000.
Circumstances in which initial payment not required
"221AT. (1) Where the amount ascertained in relation to a relevant entity in
respect of a year of income to which this Division applies in accordance with
the formula 100 X otherwise required initial payment
85
is less than:
except where paragraph (b) applies - $1,000; or
if the Commissioner has determined another amount under subsection (2)
in relation to that year of income - that other amount; then, unless the
Commissioner otherwise determines in relation to the entity or a specified
class of entities in which the entity is included, the entity is not required
to make an initial payment of tax in respect of that year of income.
"(2) For the purposes of this section, the Commissioner may, by notice
published in the Gazette, determine an amount other than $1,000 to be the
minimum amount in relation to initial payments of tax payable by relevant
entities in respect of taxable income of a specified year of income and each
subsequent year of income.
"(3) In this section:
'otherwise required initial payment', in relation to a relevant entity in
respect of a year of income, means the amount that, but for this section,
would be payable by the entity (whether as a result of the giving of a notice
under paragraph 221AQ (1) (a) or otherwise) as an initial payment of tax in
respect of its taxable income of that year of income.
Election to make single payment
"221AU. (1) Where the amount ascertained in relation to a relevant entity in
respect of a year of income to which this Division applies in accordance with
the formula 100 X otherwise required initial payment
85
is not less than the amount applicable under paragraph 221AT (1) (a) or (b),
as the case may be, but is less than:
in the case of the year of income ending on 30 June 1990 - $400,000;
or
in the case of a subsequent year of income - $20,000; then, unless the
Commissioner otherwise determines in relation to the entity or a specified
class of entities in which the entity is included, the entity may, by written
notice given to the Commissioner, elect that this section is to apply to the
entity in respect of that year of income.
"(2) Where an election is made by an entity under subsection (1) in respect
of a year of income (in this subsection called the 'relevant year of
income'):
the entity is not required to make an initial payment of tax in respect
of its taxable income of the relevant year of income; and
for the purposes of the application of this Division to the entity in
respect of the relevant year of income, the reference in section 221AZD to 15
March next following a year of income is, except in the case of an entity to
which section 221AN applies, to be taken to be a reference to 15 December next
following the relevant year of income.
"(3) An election under subsection (1) is irrevocable.
"(4) If a relevant entity makes an election under subsection (1) at a time
after the relevant entity made an initial payment of tax in respect of its
taxable income of the year of income to which the election relates, the
Commissioner must, as soon as practicable, refund to the entity the amount
paid. "(5) In this section:
'otherwise required initial payment', in relation to a relevant entity in
respect of a year of income, means the amount that, but for this section,
would be payable by the entity (whether as a result of the giving of a notice
under paragraph 221AQ (1) (a) or otherwise) as an initial payment of tax in
respect of its taxable income of that year of income.
Power of Commissioner to reduce amount of initial payment or waive initial
payment
"221AV. (1) The Commissioner may, having regard to the purpose for which
this Division was enacted and to particular circumstances that exist in
relation to a relevant entity, determine:
that the amount that, but for this subsection, would be payable by the
entity as an initial payment of tax in respect of its taxable income of a year
of income is to be reduced by such amount as the Commissioner thinks
appropriate; or
that the entity is not required to make an initial payment of tax in
respect of its taxable income of a year of income.
"(2) The particular circumstances to which regard may be had under
44. Section 290a of the Principal Act is amended by omitting "1 July 1989"
from paragraph (b) of the definition of "current 25 May balance" in subsection
(4) and substituting "1 September 1989".
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 45
Rebates
45. Section 300 of the Principal Act is amended:
(a) by adding at the end of paragraph (1) (a) "and";
(b) by omitting from paragraph (1) (b) "and";
(c) by omitting paragraph (1) (c);
(d) by adding at the end of paragraph (2) (a) "and";
(e) by omitting from paragraph (2) (b) "and";
(f) by omitting paragraph (2) (c).
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 46
Application of certain amendments
46. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) The repeal of section 69 of the Principal Act effected by this Act
applies to expenditure incurred on or after 1 July 1989.
(3) Subparagraph 78 (1) (a) (xcv) of the amended Act applies in relation to
gifts made on or after 7 April 1989.
(4) The amendments made by sections 10, 11 and 12 apply in relation to
expenditure incurred by a life assurance company on or after 1 January 1990.
(5) The amendments made by subsection 17 (1) apply to any dividend paid:
in respect of a share issued on or after 16 August 1989; or
under a finance arrangement (within the meaning of section 46d of the
Principal Act) entered into on or after 16 August 1989.
(6) The amendments made by section 28 apply in relation to expenditure
incurred on or after 1 July 1989.
(7) The amendments made by section 38 apply to:
prescribed payments made by a natural person on or after the date of
the commencement of this subsection under:
a contract entered into on or after the date of commencement of
this subsection; or
if, before the commencement of this subsection, the natural
person has given to the Commissioner a householder notification form in
relation to the construction project concerned - a contract entered into
before the commencement of this subsection; and
if, on or after the date of commencement of this subsection, a natural
person gives to the Commissioner a householder notification form in relation
to the construction project concerned - prescribed payments made by the
natural person, on or after the date on which that form is given to the
Commissioner, under a contract entered into before the commencement of this
subsection.
(8) If, because of subparagraph (7) (a) (ii) or paragraph (7)(b) of this
section, a natural person is, for the purposes of Division 3A of Part VI of
the amended Act, a householder in relation to a prescribed payment that is
made by the natural person under a contract:
subsection 221YHB (7) of the amended Act does not apply in relation to
the natural person in relation to the contract; and
Division 3A of Part VI of the amended Act applies in relation to the
householder notification form given as mentioned in subsection (7) of this
section as if that form had been given under subsection 221YHB (7) of the
amended Act. (9) The amendments made by section 39 apply to amounts withdrawn
from film accounts on or after 1 January 1990. (10) The amendment made by
paragraph 43 (a) applies in relation to contributions made on or after 1 July
1989.
(11) The amendments made by paragraphs 43 (b) and (c) apply in relation to
contributions made on or after 1 July 1988.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 47
Transitional - section 69 of the amended Act
47. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) For the purposes of the application of subsection 69 (7) of the amended
Act to expenditure incurred on or after 1 July 1989 by the trustee of the
estate of a taxpayer who died before 1 July 1989, paragraph (b) of that
subsection has effect as if subsection 69 (1) of the amended Act applied to
expenditure incurred before, on or after 1 July 1989.
(3) Nothing in subsection 69 (9) of the amended Act is to be taken as
authorising a deduction in respect of a period before 1 July 1989.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 48
Transitional - subsection 113 (2) of the amended Act
48. (1) In this section:
"1 January 1990 year" means the year of income in which 1 January 1990
occurred;
"amended Act" means the Principal Act as amended by this Act.
(2) In spite of anything in subsection 113 (2) of the amended Act, where:
apart from this section, a deduction would be allowable to a life
assurance company under subsection 113 (2) of the amended Act in respect of
the company's 1 January 1990 year; and
any part of the company's 1 January 1990 year occurs before 1 January
1990;
the amount of the deduction allowable to the company under subsection 113 (2)
of the amended Act in respect of the company's 1 January 1990 year is the
amount worked out using the following formula:
) ( Section )
) ( 111AAA )
Adjusted ) ( Adjusted + premium )
assessable ) + ( assessable investment )
X income ) ( 1990 GME X income components )
GME Total ) ( Total income )
income
where:
Pre-1990 GME is the expenditure incurred before 1 January 1990, and in the
company's 1 January 1990 year, in the general management of the business of
the company;
Adjusted assessable income is the number of dollars in the amount of the
assessable income of the company of the company's 1 January 1990 year (apart
from section 111AA of the amended Act);
Total income is the total income of the company of the company's 1 January
1990 year;
1990 GME is the expenditure incurred on or after 1 January 1990, and in the
company's 1 January 1990 year, in the general management of the business of
the company;
Section 111AA premium investment components is the number of dollars in the
aggregate of the investment components of each premium to which section 111AA
of the amended Act applies, being a premium that was derived by the company in
the company's 1 January 1990 year.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 49
Transitional - section 274 of the amended Act
49. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) If the total of the contributions made to a complying superannuation
fund in a year of income that are covered by notices given under subsection
274 (7) of the Principal Act before the commencement of this section exceeds
the sum of the amounts referred to in paragraphs 274 (8) (a) and (c) of the
amended Act, the notices are to be taken, for the purposes of the amended Act,
never to have been given.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 51
Principal Act
51. In this Part, "Principal Act" means the Taxation Administration Act
1953.*3*
Interpretation
52. Section 8j of the Principal Act is amended:
by omitting from paragraph (2) (a) ''made, given'' (wherever occurring)
and substituting ''made, prepared, given'';
by adding at the end of paragraph (2) (k) ''other than a document
containing particulars of the calculation of taxable income of a year of
income and of the tax payable in respect of that taxable income that were
specified in a return in accordance with section 221AZD of the Income Tax
Assessment Act 1936".
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
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); Nos. 95 and 97, 1988; and Nos. 105 and 107, 1989.
TAXATION LAWS AMENDMENT ACT (No. 5) 1989 No. 20 of 1990
- SECT 53
Penalty taxes to be alternative to prosecution for certain offences
53. Section 8ZE of the Principal Act is amended by inserting in paragraphs
(1) (b) and (2) (c) "of this Act or section 262A of the Income Tax Assessment
Act 1936" after "8P".
The
Act No. 20, 1990 amended as indicated in the Tables below.
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
20, 1990 | 17 Jan 1990 | |||
75, 2010 | 28 June 2010 | Schedule 6 (item 83): 29 June 2010 | — |
| |
Provision affected | How affected |
S. 50......................................... | rep. No. 75, 2010 |
0
0
0