Income Tax Assessment Amendment (Income Equalization Deposits) Act 1984

Administered by Department of the Treasury

Legislation au C2004A03038 Not in force Act

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Income Tax Assessment Amendment (Income Equalization Deposits) Act 1984

No. 174 of 1984

 

 

 

 

 

An Act to make certain amendments of the Income Tax Assessment Act 1936 consequent upon the enactment of the Loan (Income Equalization Deposits) Amendment Act 1984

[Assented to 26 October 1984]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Income Tax Assessment Amendment (Income Equalization Deposits) Act 1984.

(2) The Income Tax Assessment Act 19361 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which the Loan (Income Equalization Deposits) Amendment Act 1984 comes into operation.


Officers to observe secrecy

3. (1) Section 16 of the Principal Act is amended by inserting after paragraph (4) (h) the following paragraph:

“(ha) the authorized person holding office under the Loan (Income Equalization Deposits) Act 1976 for the purposes of the administration of that Act;”.

(2) The amendment made by sub-section (1) applies in respect of the communication of information on or after 1 January 1985.

(3) Until 1 January 1985, nothing in section 16 of the Principal Act prohibits the Commissioner, a Second Commissioner or a Deputy Commissioner, or any person thereto authorized by him, from communicating any information for the purposes of the administration of the Loan (Income Equalization Deposits) Act 1976.

Interpretation

4. Section 159ga of the Principal Act is amended by adding at the end thereof the following sub-section:

“(5) For the purposes of this Division, where—

(a) on or after 1 September 1983, the whole or a part (which whole or part is in this sub-section referred to as the ‘relevant amount’) of a parcel of drought bonds was converted, under section 12 of the Loan (Income Equalization Deposits) Act 1976 as in force before the commencement of this sub-section, into a deposit within the meaning of that Act; or

(b) the whole or a part (which whole or part is in this sub-section also referred to as the ‘relevant amount’) of a deposit or of a parcel of drought bonds is, under section 12a of the Loan (Income Equalization Deposits) Act 1976, converted into a non-Class C deposit within the meaning of that Act,

the relevant amount shall be deemed to have become repayable—

(c) in a case where the conversion was the conversion of the whole or a part of a deposit and the conversion occurred within 60 days after the commencement of this sub-section—on 1 September 1983; and

(d) in any other case—on the date of the conversion.”.

Deductions in respect of income equalization deposits

5. Section 159gc of the Principal Act is amended by inserting in sub-section (1) “before 1 September 1983” after “made”.


Unrecouped deduction included in assessable income on deposit becoming repayable

6. Section 159gd of the Principal Act is amended by inserting after sub-section (2) the following sub-sections:

“(2a) Where—

(a) the whole or a part of a deposit is deemed by sub-section 159ga (5) to have become repayable at any time (in this sub-section referred to as the ‘relevant time’), whether before or after the commencement of this sub-section; and

(b) immediately before the relevant time, there was an unrecouped deduction in respect of the deposit,

there shall be included in the assessable income of the depositor of the year of income in which the relevant time occurred—

(c) where the whole of the deposit, or so much of the deposit as had not previously become repayable, is deemed by sub-section 159ga (5) to have become repayable—an amount equal to the amount of the unrecouped deduction; or

(d) where part only of the deposit, or of so much of the deposit as had not previously become repayable, is deemed by sub-section 159ga (5) to have become repayable—the amount by which the amount of the unrecouped deduction exceeds so much of the deposit as had not previously become repayable.

“(2b) Where—

(a) the whole or a part of a parcel of drought bonds is deemed by sub-section 159ga (5) to have become repayable at any time (in this sub-section referred to as the ‘relevant time’), whether before or after the commencement of this sub-section; and

(b) immediately before the relevant time there was an unrecouped deduction under Division 16b in respect of the parcel,

there shall be included in the assessable income, of the year of income in which the relevant time occurred, of the person who was the holder of the parcel immediately before the relevant time—

(c) where the whole of the parcel, or so much of the parcel as had not previously become repayable, is deemed by sub-section 159ga (5) to have become repayable—an amount equal to the amount of the unrecouped deduction; or

(d) where part only of the parcel, or of so much of the parcel as had not previously become repayable, is deemed by sub-section 159ga (5) to have become repayable—the amount by which the amount of the unrecouped deduction exceeds so much of the parcel as had not previously become repayable.”.


Amendment of assessments

7. Nothing in section 170 of the Principal Act prevents the amendment of an assessment made before the commencement of this Act for the purpose of giving effect to the amendments made by this Act.

 

NOTE

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, 60, 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; and No. 124, 1984.

Overview

The Income Tax Assessment Amendment (Income Equalization Deposits) Act 1984 was enacted to address certain amendments of the Income Tax Assessment Act 1936 consequent upon the enactment of the Loan (Income Equalization Deposits) Amendment Act 1984. This legislation was passed by the Parliament of Australia and received royal assent on 26 October 1984. The act was introduced to ensure that specific provisions concerning income equalization deposits were correctly applied under the Income Tax Assessment Act 1936. It makes amendments to the existing tax laws to align with the changes brought about by the Loan (Income Equalization Deposits) Amendment Act 1984, ensuring that taxpayers are correctly assessed for their income equalization deposits. The overall policy objective is to maintain the integrity and fairness of the tax system by updating relevant tax provisions in response to legislative changes.

Scope and Application

The Income Tax Assessment Amendment (Income Equalization Deposits) Act 1984 amends the Income Tax Assessment Act 1936 to address the tax implications of income equalization deposits, as influenced by the Loan (Income Equalization Deposits) Amendment Act 1984. The Act applies to all individuals and entities who have made or are making income equalization deposits as defined under the Loan (Income Equalization Deposits) Act 1976. It is applicable nationwide across Australia, falling under the jurisdiction of the Commonwealth. The Act imposes specific tax treatment on income equalization deposits, ensuring that any unrecouped deductions related to these deposits are included in the assessable income of the depositor or the holder of the drought bonds when the deposit becomes repayable. Additionally, the Act allows for the amendment of prior assessments to reflect the changes introduced by this legislation. The scope of the Act is further defined through its interaction with subordinate instruments, which may extend or restrict its application to certain specific circumstances or entities.

Key Provisions

The Income Tax Assessment Amendment (Income Equalization Deposits) Act 1984 amends the Income Tax Assessment Act 1936, introducing changes related to income equalization deposits. Section 3(1) amends section 16 of the Principal Act by adding authorised persons under the Loan (Income Equalization Deposits) Act 1976 to the list of individuals who must observe secrecy in relation to certain information. This amendment applies to communications of information on or after 1 January 1985. Prior to this date, section 16 of the Principal Act did not prohibit the Commissioner, a Second Commissioner or a Deputy Commissioner, or any person authorised by them, from communicating information for the administration of the Loan (Income Equalization Deposits) Act 1976. The Act imposes certain obligations on authorised persons involved in the administration of income equalization deposits. These individuals are required to observe secrecy regarding specific information, as outlined in section 3(1) of the Act. This obligation is designed to protect the confidentiality of financial and operational details related to income equalization deposits. The requirement to observe secrecy applies from 1 January 1985, as specified in section 3(2). Failure to comply with the secrecy obligations may result in civil or criminal consequences. While the Act does not explicitly state the specific penalties for breach, it is reasonable to infer that non-compliance with secrecy requirements could lead to legal action under the relevant sections of the Income Tax Assessment Act 1936. Such consequences could include fines or imprisonment, depending on the severity of the breach and the discretion of the court. It is essential for authorised persons to adhere to these obligations to avoid potential legal repercussions.

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Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Amendment of assessments

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