A New Tax System (Ultimate Beneficiary Non‑disclosure Tax) Act (No. 2) 1999
Act No. 72 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[Note: This Act was repealed by Act No. 143 of 2007 on 24 September 2007]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. 2) 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 102UM(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. 2) 1999
Note 1
The A New Tax System (Ultimate Beneficiary Non‑disclosure Tax) Act (No. 2) 1999 as shown in this compilation comprises Act No. 72, 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. 2) 1999 | 72, 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 = repealed rs.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. 2) 1999 was enacted by the Commonwealth Parliament to address the problem of tax avoidance through the non-disclosure of the ultimate beneficiaries of trusts. This Act was introduced as part of a broader tax reform agenda known as "A New Tax System," which aimed to create a more efficient and equitable tax system in Australia. The specific policy objective of this Act was to impose a tax on the net income of trusts where the ultimate beneficiaries were undisclosed, thereby ensuring that such income is subject to tax and preventing tax evasion. The Act established a tax rate of 46.5% on the share of the net income of a trust that is attributable to an undisclosed ultimate beneficiary. This Act commenced on the same day as the A New Tax System (Closely Held Trusts) Act 1999, indicating a coordinated effort to reform trust taxation within the new tax system framework.
Scope and Application
The A New Tax System (Ultimate Beneficiary Non-disclosure Tax) Act (No. 2) 1999 applies to certain shares of net income of trusts, imposing a tax on undisclosed ultimate beneficiaries to promote transparency in financial transactions. This Act complements the A New Tax System (Closely Held Trusts) Act 1999, and its provisions commence on the same day as the latter Act. The tax imposed under this Act is levied at a rate of 46.5% and applies to the whole or part of a share of the net income of a trust as specified in the Income Tax Assessment Act 1936. The Act was repealed by the A New Tax System (Tax Laws Amendment) Act 2007, which may have implications for any ongoing assessments or liabilities under this Act. The application of this Act can be further detailed through subordinate instruments, which may provide additional specifications or transitional provisions.
Key Provisions
The A New Tax System (Ultimate Beneficiary Non‑disclosure Tax) Act (No. 2) 1999 (hereafter referred to as the Act) imposes an ultimate beneficiary non‑disclosure tax on certain income of trusts, specifically targeting the non‑disclosure of ultimate beneficiaries. Under section 3, this tax is levied on the whole or part of a share of the net income of a trust as outlined in the Income Tax Assessment Act 1936. The rate of this tax is set at 46.5%, as stipulated in section 4. The Act's provisions are designed to ensure that any undisclosed beneficiaries are taxed appropriately, thus preventing tax avoidance through the concealment of beneficiaries' identities.
The Act imposes specific obligations on trustees and other entities involved in managing trusts. Trustees are required to identify and disclose the ultimate beneficiaries of the trust. This obligation extends to ensuring that all relevant information is accurately reported to the tax authorities. The Act's aim is to create transparency in the financial dealings of trusts and to ensure that all beneficiaries are appropriately taxed. This requirement places a significant onus on trustees to maintain accurate records and to communicate effectively with the tax authorities.
Failure to comply with the provisions of the Act can lead to significant legal consequences. The Act does not explicitly state penalties or offences, but non‑compliance could potentially lead to severe civil and criminal repercussions under related tax legislation, such as the Income Tax Assessment Act 1936. Penalties for non‑compliance with tax laws generally can include fines and imprisonment, depending on the severity of the offence. The exact penalties would depend on the specific breach and the discretion of the courts in interpreting the related provisions. Trustees and entities involved in managing trusts must, therefore, ensure strict adherence to the Act's requirements to avoid these potential consequences.