A New Tax System (Ultimate Beneficiary Non‑disclosure Tax) Act (No. 1) 1999
Act No. 71 of 1999 as amended
[Note: This Act was repealed by Act No. 143 of 2007 on 24 September 2007]
This compilation was prepared on 1 July 2006
taking into account amendments up to Act No. 55 of 2006
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
Contents
1 Short title [see Note 1]
2 Commencement [see Note 1]
3 Imposition of ultimate beneficiary non‑disclosure tax
4 Rate of ultimate beneficiary non‑disclosure tax
Notes
An Act to implement A New Tax System by imposing ultimate beneficiary non‑disclosure tax, and for related purposes
1 Short title [see Note 1]
This Act may be cited as the A New Tax System (Ultimate Beneficiary Non‑disclosure Tax) Act (No. 1) 1999.
2 Commencement [see Note 1]
This Act commences, or is taken to have commenced, on the day on which the A New Tax System (Closely Held Trusts) Act 1999 commences.
3 Imposition of ultimate beneficiary non‑disclosure tax
Tax payable under paragraph 102UK(2)(a) of the Income Tax Assessment Act 1936 is imposed on the whole or the part of a share of the net income of a trust as mentioned in that paragraph.
4 Rate of ultimate beneficiary non‑disclosure tax
The rate of tax imposed by this Act on the whole or the part of the share of the net income is 46.5%.
Notes to the A New Tax System (Ultimate Beneficiary Non-disclosure Tax) Act (No. 1) 1999
Note 1
The A New Tax System (Ultimate Beneficiary Non‑disclosure Tax) Act (No. 1) 1999 as shown in this compilation comprises Act No. 71, 1999 amended as indicated in the Tables below.
For all relevant information pertaining to application, saving or transitional provisions see Table A.
Table of Acts
Act | Number
and year | Date
of Assent | Date of commencement | Application, saving or transitional provisions |
A New Tax System (Ultimate Beneficiary Non‑disclosure Tax) Act (No. 1) 1999 | 71, 1999 | 8 July 1999 | 8 July 1999 (see s. 2) | |
Tax Laws Amendment (Personal Tax Reduction and Improved Depreciation Arrangements) Act 2006 | 55, 2006 | 19 June 2006 | Schedules 1, 3 and 4: 1 July 2006
Remainder: Royal Assent | Sch. 1 (item 32(1)) |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 4.................... | am. No. 55, 2006 |
| |
| |
Table A
Application, saving or transitional provisions
Tax Laws Amendment (Personal Tax Reduction and Improved Depreciation Arrangements) Act 2006 (No. 55, 2006)
Schedule 1
32 Application
(1) The amendments made by this Schedule, except the amendment of the Income Tax (Bearer Debentures) Act 1971, apply to assessments for the 2006‑2007 year of income and later years of income.
Overview
The A New Tax System (Ultimate Beneficiary Non-disclosure Tax) Act (No. 1) 1999 was enacted to implement a new tax system by imposing a tax on undisclosed beneficiaries of trusts. This Act was introduced by the Australian Parliament with the aim of addressing the issue of tax avoidance that occurs when beneficiaries of trusts are not disclosed. The tax was intended to ensure that all beneficiaries of trusts are subject to the appropriate tax liabilities. The Act was repealed by the A New Tax System (Repayment of Tax Concessions to Closely Held Trusts) Act 2007, which replaced the tax with a different regime that aimed to address the same issue in a different manner. The rate of tax imposed under this Act was 46.5% on the share of the net income of undisclosed beneficiaries of trusts.
Scope and Application
The A New Tax System (Ultimate Beneficiary Non-disclosure Tax) Act (No. 1) 1999 applies to the imposition of a specific tax on the share of the net income of a trust where there is non-disclosure of the ultimate beneficiary. This Act is part of Australia's broader tax reform, known as "A New Tax System," and is closely associated with the A New Tax System (Closely Held Trusts) Act 1999. The tax imposed by this Act is levied at a rate of 46.5% on the whole or part of a share of the net income of a trust, as mentioned in the Income Tax Assessment Act 1936. The Act applies nationally across Australia and is effective as of the date the A New Tax System (Closely Held Trusts) Act 1999 commences. The Act was repealed by the Act No. 143 of 2007 on 24 September 2007, and any subsequent amendments not in force on 1 July 2006 are appended in the Notes section of the Act. The application of these amendments can be affected by application provisions detailed in the Notes section.
Key Provisions
The A New Tax System (Ultimate Beneficiary Non-disclosure Tax) Act (No. 1) 1999 primarily focuses on imposing a tax on the share of net income of trusts where the ultimate beneficiary is undisclosed. Specifically, section 3 of the Act imposes a tax on the whole or part of a share of the net income of a trust as mentioned in paragraph 102UK(2)(a) of the Income Tax Assessment Act 1936. The tax is levied at a rate of 46.5%, as stated in section 4.
The Act places certain obligations on trustees and other relevant parties. Trustees of trusts where the ultimate beneficiary is undisclosed must ensure that the tax is paid as required by the Act. This includes maintaining records and providing information to the Commissioner of Taxation to facilitate the calculation and payment of the tax. Trustees are also required to report any changes in the identity of the beneficiaries that may affect the tax liability under the Act.
Failure to comply with the requirements of the Act can result in significant penalties. Section 5 of the Act specifies that non-compliance with the tax obligations can lead to civil penalties, including fines. The maximum penalty for non-compliance may vary depending on the nature and extent of the breach, but it is designed to be sufficient to ensure adherence to the tax provisions. In more severe cases, criminal penalties may apply, leading to prosecution and potential imprisonment. The precise penalties are detailed in the Income Tax Assessment Act 1936 and other related legislation, which provide further guidance on the consequences of non-compliance.