“‘taxable income’ means—

(a) in a case to which paragraph (b) does not apply—the amount remaining after deducting from the assessable income all allowable deductions; and

(b) in a case to which Subdivision b of Division 2a of Part III applies—the amount calculated in accordance with section 50c;”.

(a) by omitting sub-sections (2) and (3) and substituting the following sub-sections:

(a) those shares;

(b) other shares in the relevant company;

(c) shares in another company that, at the time of acquisition of the shares in that other company or at any time after the time of acquisition of the shares in that other company and before the time when the dividend was paid, was related to the relevant company; or

(d) a beneficial interest in a trust estate, being a trust estate that, at the time of acquisition of the beneficial interest or at any time after the time of acquisition of the beneficial interest and before the time when the dividend was paid, was related to the relevant company,

(a) whether the effect of the payment of the relevant dividend by the relevant company to the shareholder, or the effect of that payment and of the payments of any other dividends that have been or are likely to be made by the relevant company to the shareholder has been, or would be, to reimburse the shareholder wholly or substantially for the amount or amounts paid by him in respect of the acquisition of any relevant property;

(b) whether the value of any relevant property immediately after the time when the relevant dividend was paid was substantially less than the value of that relevant property at the time when it was acquired by the shareholder and, if so, whether the reduction in value was wholly or mainly attributable to the payment of a dividend to the shareholder by the relevant company;

(c) whether the right to receive dividends in respect of any relevant property consisting of shares in the relevant company is, by reason of any provision in the constituent document of the company or of any agreement, limited as to the total of the amounts that may be paid as dividends in respect of the shares or as to the source of the profits from which, or the period during which, dividends may be paid in respect of the shares; and

(d) any other relevant matters.”;

(b) by inserting after sub-section (8) the following sub-sections:

(a) a reference in sub-section (5) to the net income derived from dividends by the shareholder shall be read as a reference to an amount equal to the sum of—

(i) the amount of income from private company dividends that is deemed to be included in the taxable income of the shareholder of the year of income by the operation of section 50n; and

(ii) the amount of income from dividends other than private company dividends that is deemed to be included in the taxable income of the shareholder of the year of income by the operation of section 50n,

(iii) has not, in the application of section 50n in relation to the shareholder in relation to the year of income, been deducted from income from private company dividends or from income from dividends other than private company dividends; and

(iv) the Commissioner is satisfied it is reasonable to attribute to dividends included in the assessable income of the shareholder of the year of income;

(b) a reference in sub-section (5) or (6) to the net income derived from private company dividends by the shareholder shall be read as a reference to the amount of income from private company dividends that is deemed to be included in the taxable income of the shareholder of the year of income by the operation of section 50n reduced by so much of any deductions (including deductions, whether in respect of losses, outgoings or otherwise, that are not specifically related to particular income or to income included in a particular class of income) that have been allowed or are allowable to the shareholder under this Act in relation to the year of income or any other year of income as—

(i) has not, in the application of section 50n in relation to the shareholder in relation to the year of income, been deducted from income from private company dividends; and

(ii) the Commissioner is satisfied it is reasonable to attribute to private company dividends included in the assessable income of the shareholder of the year of income; and

(c) a reference in sub-section (5) to the net income derived by the shareholder from dividends other than private company dividends shall be read as a reference to the amount of income from dividends other than private company dividends that is deemed to be included in the taxable income of the shareholder of the year of income by the operation of section 50n, reduced by so much of any deductions (including deductions, whether in respect of losses, outgoings or otherwise, that are not specifically related to particular income or to income included in a particular class of income) that have been allowed or are allowable to the shareholder under this Act in relation to the year of income or any other year of income as—

(i) has not, in the application of section 50n in relation to the shareholder in relation to the year of income, been deducted from income from dividends other than private company dividends; and

(ii) the Commissioner is satisfied it is reasonable to attribute to dividends (other than private company dividends) included in the assessable income of the shareholder of the year of income.

(c) by omitting sub-sections (11), (12), (12a) and (12b) and substituting the following sub-sections:

(a) any expenditure incurred by the shareholder in respect of the acquisition of that relevant property; and

(b) any other expenditure incurred by the shareholder in connection with the transaction, undertaking or scheme, being expenditure that was, or is to be, taken into account in ascertaining the amount of that profit,

(a) any expenditure incurred by the shareholder in respect of the acquisition of that relevant property; and

(b) any other expenditure incurred by the shareholder in connection with the transaction, undertaking or scheme, being expenditure that was, or is to be, taken into account in ascertaining the amount of that loss,

(d) by inserting in sub-section (13) “in sub-section (8a) or” after “deduction referred to”;

(e) by inserting after sub-section (13) the following sub-sections:

(a) a company shall be taken to be related to the relevant company at any time if, and only if, at that time, a reduction in the value of any shares in the relevant company could reasonably be expected to result in a reduction in the value of any shares in the first-mentioned company; and

(b) a trust estate shall be taken to be related to the relevant company at any time if, and only if, at that time, a reduction in the value of any shares in the relevant company could reasonably be expected to result in a reduction in the value of any of the property of the trust estate.

(a) a reference in this section to a share shall be read as including a reference to—

(i) an interest in a share; and

(ii) a right or option (including a contingent right or option) to acquire a share or an interest in a share; and

(b) a reference in this section to a beneficial interest in a trust estate shall be read as including a reference to a right or option (including a contingent right or option) to acquire a beneficial interest in a trust estate.

(a) the shares in respect of which the dividend was paid;

(b) other shares in the relevant company that were acquired by the shareholder (whether alone or jointly with another person or other persons) at any time before the time when the dividend was paid;

(c) shares in another company that were acquired by the shareholder (whether alone or jointly with another person or other persons) at any time before the time when the dividend was paid, being another company that was, at the time of acquisition of the shares in that other company or at any time after the time of acquisition of the shares in that other company and before the time when the dividend was paid, related to the relevant company; or

(d) a beneficial interest in a trust estate that was acquired by the shareholder (whether alone or jointly with another person or other persons) at any time before the time when the dividend was paid, being a trust estate that was, at the time of acquisition of the beneficial interest or at any time after the time of acquisition of the beneficial interest and before the time when the dividend was paid, related to the relevant company.

(f) by omitting “and” from the end of paragraph (a) of sub-section (14);

(g) by omitting from paragraph (b) of sub-section (14) “sub-sections (9) and (10)” and substituting “sub-section (8a), or sub-sections (9) and (10),”; and

(h) by inserting after paragraph (b) of sub-section (14) the following word and paragraph:

“; and (c) the Commissioner may amend an assessment at any time for the purpose of taking into account an acquisition of shares or a beneficial interest in a trust estate by a person that, by virtue of sub-section (13c), is deemed to have taken place before the end of the year of income to which the assessment relates,”.

(a) sub-section (11) of that section shall be read as if “the last preceding sub-section” were omitted and “sub-section (8a) or (10)” were substituted; and

(b) sub-section (12) of that section shall be read as if “sub-section (10) of this section” were omitted and “sub-section (8a) or (10)” were substituted.

(a) dividends paid to a company on or before 7 May 1978 and after 7 April 1978 (not being dividends declared on or before 7 April 1978); or

(b) dividends paid to a company after 7 May 1978, being dividends declared after 7 April 1978 and on or before 7 May 1978,

(a) where an amount that is paid or credited is, or any assets that are distributed are, for the purposes of the Income Tax Assessment Act 1936, deemed to be a dividend paid by a company, that dividend shall be taken to have been declared at the time when the amount was in fact paid or credited, or the assets were in fact distributed, as the case may be; and

(b) where, by virtue of a provision of the constituent document of a company, a dividend may become payable by the company without having been declared, any such dividend that has become payable shall be taken to have been declared at the time when it became payable.

(a) by omitting paragraphs (b) and (c) of sub-section (1) and substituting the following paragraphs:

“(b) before the time when the relevant dividend was paid, another person (in this section referred to as the ‘associated person’) acquired property (in this section referred to as the ‘associated property’), being—

(i) shares in the relevant company;

(ii) shares in another company that, at the time of acquisition of the shares in that other company or at any time after the time of acquisition of the shares in that other company and before the time when the relevant dividend was paid, was related to the relevant company; or

(iii) a beneficial interest in a trust estate, being a trust estate that, at the time of acquisition of the beneficial interest or at any time after the time of acquisition of the beneficial interest and before the time when the relevant dividend was paid, was related to the relevant company;

(c) the associated property was acquired by the associated person as trading stock or in such circumstances that any profit that would arise on a disposal of the associated property would, in whole or in part, be included in the assessable income of the associated person or any loss that would arise from a disposal of the associated property would, in whole or in part, be allowable as a deduction to the associated person; and”;

(b) by omitting from paragraph (d) of sub-section (1) “shares by the associated shareholder” and substituting “property by the associated person”;

(c) by omitting sub-sections (2), (3) and (4) and substituting the following sub-sections:

“(2) For the purposes of this section—

(a) a company shall be taken to be related to the relevant company at any time if, and only if, at that time, a reduction in the value of any shares in the relevant company could reasonably be expected to result in a reduction in the value of any shares in the first-mentioned company; and

(b) a trust estate shall be taken to be related to the relevant company at any time if, and only if, at that time, a reduction in the value of any shares in the relevant company could reasonably be expected to result in a reduction in the value of any of the property of the trust estate.

“(3) Unless the contrary intention appears—

(a) a reference in this section to a share shall be read as including a reference to—

(i) an interest in a share; and

(ii) a right or option (including a contingent right or option) to acquire a share or an interest in a share; and

(b) a reference in this section to a beneficial interest in a trust estate shall be read as including a reference to a right or option (including a contingent right or option) to acquire a beneficial interest in a trust estate.

(a) where an amount that is paid or credited is, or any assets that are distributed are, for the purposes of the Income Tax Assessment Act 1936, deemed to be a dividend paid by a company, that dividend shall be taken to have been declared at the time when the amount was in fact paid or credited, or the assets were in fact distributed, as the case may be; and

(b) where, by virtue of a provision of the constituent document of a company, a dividend may become payable by the company without having been declared, any such dividend that has become payable shall be taken to have been declared at the time when it became payable.

(a) a disqualifying event shall not be deemed to have occurred in relation to a company on or before 7 April 1978; and

(b) a disqualifying event shall not be deemed to have occurred in relation to a company at a time during a year of income if—

(i) the company is not a private company in relation to the year of income; and

(ii) the Commissioner considers that it is unreasonable that a disqualifying event should be deemed to have occurred in relation to the company at that time.

‘excepted amount’ means an amount that is a full-year amount or a divisible amount in relation to the company in relation to the year of income;

‘excepted deduction’ means an allowable deduction that is a full-year deduction or a divisible deduction in relation to the company in relation to the year of income;

‘full-year amount’ means so much of any amount that is included in the assessable income of the company of the year of income under section 97 as is not a divisible amount in relation to the company in relation to the year of income;

‘income period’ means a relevant period in respect of which the company is deemed to have a notional taxable income;

‘loss period’ means a relevant period in respect of which the company is deemed to have a notional loss;

‘natural person’ means a person other than a company;

‘relevant period’ means any of the following periods:

(a) where only one disqualifying event is deemed to have occurred in relation to the company during the year of income—

(i) the period commencing at the commencement of the year of income and ending immediately before the time when the disqualifying event is deemed to have occurred; and

(ii) the period commencing at the time when the disqualifying event is deemed to have occurred and ending at the end of the year of income;

(b) where 2 or more disqualifying events are deemed to have occurred in relation to the company during the year of income—

(i) the period commencing at the commencement of the year of income and ending immediately before the time when the first of those disqualifying events is deemed to have occurred;

(ii) the period commencing at the time when the last of those disqualifying events is deemed to have occurred and ending at the end of the year of income; and

(iii) each period commencing at the time when one of those disqualifying events (not being the last of those disqualifying events) is deemed to have occurred and ending immediately before the time when the next of those disqualifying events is deemed to have occurred;

(a) the assessable income of a company in respect of a relevant period in relation to the company in relation to a year of income is the sum of—

(i) any amounts (other than excepted amounts) that would be included in the assessable income of the company of the year of income if the year of income were constituted by that relevant period; and

(ii) any amount that is, or the sum of any amounts that are, by section 50e, deemed to be included in the assessable income of the company of that relevant period; and

(b) the following amounts are allowable deductions of a company in respect of a relevant period in relation to a year of income:

(i) deductions (other than excepted deductions) that would be allowable to the company under this Act in relation to the year of income if the year of income were constituted by the relevant period;

(ii) any amount that is deemed by section 50g to be an allowable deduction in respect of the relevant period.

(a) an amount shall be deemed to be an amount that is included in the assessable income of a company of a year of income if, were the taxable income of the company of the year of income to be calculated in accordance with section 48, that amount would be included in the assessable income of the company of the year of income; and

(b) a deduction shall be deemed to be a deduction allowable to a company under this Act in relation to a year of income if, were the taxable income of the company to be calculated in accordance with section 48, the deduction would be a deduction allowable to the company under this Act in relation to the year of income.

(a) subject to sub-section (7), a partnership shall be deemed to have a notional net income in respect of a period that is a relevant period in relation to a company if the assessable income of the partnership in respect of that period exceeds the allowable deductions of the partnership in respect of that period and the amount of the excess shall be deemed to be the amount of that notional net income; and

(b) subject to sub-section (7), a partnership shall be deemed to have a notional partnership loss in respect of a period that is a relevant period in relation to a company if the allowable deductions of the partnership in respect of that period exceed the assessable income of the partnership in respect of that period and the amount of the excess shall be deemed to be the amount of that notional partnership loss.

(a) the assessable income of a partnership of a period that is a relevant period in relation to a company in relation to a year of income of the company is the sum of—

(i) any amounts (other than excepted amounts) that would be included in the assessable income of the partnership of the year of income of the partnership that corresponds with the year of income of the company if that corresponding year of income of the partnership were constituted by the period that constitutes the relevant period; and

(ii) any amount that is, or the sum of any amounts that are, by section 50e (as that section applies by reason of sub-section (9) of this section), deemed to be included in the assessable income of the partnership of the period that constitutes the relevant period; and

(b) the following amounts are allowable deductions of a partnership in respect of a period that is a relevant period in relation to a company in relation to a year of income of the company:

(i) deductions (other than divisible deductions or deductions that, for the purposes of section 50f, are full-year partnership deductions in relation to the partnership) that would be allowable to the partnership under this Act in respect of income of the year of income of the partnership that corresponds with the year of income of the company if that corresponding year of income of the partnership were constituted by the period that constitutes the relevant period;

(ii) any amount that is deemed by section 50g (as that section applies by reason of sub-section (9) of this section) to be an allowable deduction of the partnership in respect of the period that constitutes the relevant period.

(a) whether an amount is an excepted amount, or whether a deduction is a divisible deduction, in relation to a partnership in respect of a period that is a relevant period in relation to a company; or

(b) whether an amount is to be deemed to be included in the assessable income, or whether an amount is to be deemed to be an allowable deduction, of a partnership in respect of a period that is a relevant period in relation to a company,

(a) where a nominated period consists of more than 12 hours and less than 24 hours, that nominated period shall be deemed to consist of one whole day; and

(b) where a nominated period consists of—

(i) one whole day and a part of another whole day, being a part that consists of more than 12 hours; or

(ii) 2 or more whole days and a part of another whole day, being a part that consists of more than 12 hours,

(a) a relevant period in relation to a company;

(b) a period commencing at the time during a relevant period in relation to a company when a particular event occurred and ending at the end of the relevant period;

(c) a period commencing at the time during a year of income when a particular event occurred and ending at the end of the year of income;

(d) a period commencing at the beginning of a year of income and ending at the end of a period that is a relevant period in relation to a company in relation to the year of income.

(a) if the company has a notional taxable income in respect of a relevant period, or has notional taxable incomes in respect of relevant periods, in relation to the year of income—the amount of that notional taxable income or the sum of the amounts of those notional taxable incomes, as the case may be; and

(b) if a full-year amount is included or full-year amounts are included in the assessable income of the company of the year of income—that full-year amount or the sum of those full-year amounts, as the case may be,

(c) the amount of any eligible notional loss of the company in relation to the year of income;

(d) if a full-year deduction is, or full-year deductions are, allowable to the company in relation to the year of income under section 51 or 63 or under Subdivision ba of Division 3—the amount of that full-year deduction or the sum of the amounts of those full-year deductions, as the case may be; and

(e) if, by reason of sub-section (3) of section 50f, there is a partnership deduction, or there are partnership deductions, in relation to the company in relation to the year of income—the amount of that partnership deduction or the sum of the amounts of those partnership deductions, as the case may be.

(a) in the application of sub-section (2) in relation to a company in relation to a year of income, the income amount exceeds the deductible amount; and

(b) a full-year deduction is, or full-year deductions are, allowable to the company in relation to the year of income otherwise than under section 51, section 63 or Subdivision ba of Division 3,

(c) in a case where only one full-year deduction is allowable to the company in relation to the year of income otherwise than under section 51, section 63 or Subdivision ba of Division 3—the amount (if any) remaining after deducting from the amount of the excess referred to in paragraph (a) so much of the amount of that full-year deduction as does not exceed the amount of that excess; and

(d) in any other case—the amount (if any) remaining after deducting successively from the amount of the excess referred to in paragraph (a) the amounts of any full-year deductions included in the following classes of full-year deductions that are allowable to the company in relation to the year of income:

(i) full-year deductions allowable under section 77b or 78;

(ii) full-year deductions allowable under Subdivision b of Division 3;

(iii) full-year deductions allowable under section 80 or 80aa;

(iv) full-year deductions allowable under section 122d, 122db, 124ad, 124adb or 124af;

(v) full-year deductions allowable under section 122j or 124ah;

(vi) full-year deductions allowable under Division 16c.

(a) the right to exercise more than one-half of the voting power in the company;

(b) the right to receive more than one-half of any dividends that might be paid by the company; and

(c) the right to receive more than one-half of any distribution of capital of the company,

(d) at all times during an income period; or

(e) at all times during 2 or more income periods,

(f) in a case to which paragraph (d) applies—the amount of the notional taxable income in respect of the income period referred to in that paragraph reduced by so much (if any) of that notional taxable income as has previously been taken into account for the purposes of this paragraph or paragraph (g), for the purposes of paragraph (c) or (d) of sub-section (4) or for the purposes of paragraph (c), (d) or (e) of sub-section (6); and

(g) in a case to which paragraph (e) applies—the sum of the amounts of the notional taxable incomes in respect of the income periods referred to in that paragraph reduced by so much (if any) of those notional taxable incomes as has previously been taken into account for the purposes of paragraph (f) or this paragraph, for the purposes of paragraph (c) or (d) of sub-section (4) or for the purposes of paragraph (c), (d) or (e) of sub-section (6),

(a) a reference to a loss period in relation to a company shall be read as not including a reference to a loss period at the commencement of which a disqualifying event is deemed to have occurred in relation to the company by reason of the operation of paragraph (d), (e), (f), (g) or (h) of sub-section (1) of section 50h; and

(b) a reference to an income period in relation to a company shall be read as not including a reference to an income period at the commencement of which a disqualifying event is deemed to have occurred in relation to the company by reason of the operation of paragraph (d), (e), (f), (g) or (h) of sub-section (1) of section 50h.

(a) derive income from a business of a kind that it did not carry on, or from a transaction of a kind that it had not entered into in the course of its business operations, before the end of the loss period; or

(b) incur expenditure in carrying on a business of a kind that it did not carry on, or as a result of a transaction of a kind that it had not entered into in the course of its business operations, before the end of the loss period,

(c) in a case where there is only one income period within that subsequent continuous business period—the notional taxable income of that income period reduced by so much of that notional taxable income as has been taken into account for the purposes of paragraph (f) or (g) of sub-section (2), for the purposes of this paragraph or paragraph (d) or for the purposes of paragraph (c), (d) or (e) of sub-section (6); or

(d) in a case where there are 2 or more income periods within that subsequent continuous business period—the sum of the notional taxable incomes of those income periods reduced by so much of those notional taxable incomes as has been taken into account for the purposes of paragraph (f) or (g) of sub-section (2), for the purposes of paragraph (c) or this paragraph or for the purposes of paragraph (c), (d) or (e) of sub-section (6),

(a) before the end of that loss period, the company commenced to carry on a business that it had not previously carried on or the company entered into, in the course of its business operations, a transaction of a kind that it had not previously entered into; and

(b) the company commenced to carry on that business or entered into that transaction for the purpose, or for purposes that included the purpose, of enabling that sub-section to apply in relation to that notional loss or of enabling the notional taxable income of an income period to be taken into account, in the application of that sub-section, in determining the amount of that notional loss that is to be taken into account in determining the eligible notional loss of the company in relation to the year of income.

(a) derive income from a business of a kind that it did not carry on, or from a transaction of a kind that it had not entered into in the course of its business operations, before the commencement of that prior continuous business period; or

(b) incur expenditure in carrying on a business of a kind that it did not carry on, or as a result of a transaction of a kind that it had not entered into in the course of its business operations, before the commencement of that prior continuous business period,

(c) if there are no income periods within that prior continuous business period—the notional taxable income in respect of the income period at the end of which the prior continuous business period commenced reduced by so much (if any) of that notional taxable income as has been taken into account for the purposes of paragraph (f) or (g) of sub-section (2), for the purposes of paragraph (c) or (d) of sub-section (4), or for the purposes of this paragraph, paragraph (d) or paragraph (e);

(d) in a case where there is only one income period within that prior continuous business period—the sum of the notional taxable income in respect of that income period and the notional taxable income in respect of the income period referred to in paragraph (c) reduced by so much (if any) of those notional taxable incomes as has been taken into account for the purposes of paragraph (f) or (g) of sub-section (2), for the purposes of paragraph (c) or (d) of sub-section (4), or for the purposes of paragraph (c), this paragraph or paragraph (e); and

(e) in a case where there are 2 or more income periods within the prior continuous business period—the sum of the notional taxable incomes in respect of those income periods and the income period referred to in paragraph (c) reduced by so much of those notional taxable incomes as has been taken into account for the purposes of paragraph (f) or (g) of sub-section (2), for the purposes of paragraph (c) or (d) of sub-section (4), or for the purposes of paragraph (c), paragraph (d) or this paragraph,

(a) before the commencement of that loss period, the company commenced to carry on a business that it had not previously carried on or the company entered into, in the course of its business operations, a transaction of a kind that it had not previously entered into; and

(b) the company commenced to carry on that business or entered into that transaction for the purpose, or for purposes that included the purpose, of enabling that sub-section to apply in relation to that notional loss or of enabling the notional taxable income of an income period to be taken into account, in the application of that sub-section, in determining the amount of that notional loss that is to be taken into account in determining the eligible notional loss of the company in relation to the year of income.

‘prior continuous business period’, in relation to a loss period in relation to a company, means a period commencing at the end of an income period and ending at the end of the loss period, being a period at all times during which the company carried on the same business as it carried on at the end of the income period;

‘subsequent continuous business period’, in relation to a loss period in relation to a company, means a period commencing at the end of the loss period and ending at the end of an income period, being a period at all times during which the company carried on the same business as it carried on at the end of the loss period.

(a) a reference to a loss period in relation to a company shall be read as not including a reference to a loss period at the commencement of which a disqualifying event is deemed to have occurred in relation to the company by reason of the operation of paragraph (e), (f), (g) or (h) of sub-section (1) of section 50h; and

(b) a reference to an income period in relation to a company shall be read as not including a reference to an income period at the commencement of which a disqualifying event is deemed to have occurred in relation to the company by reason of the operation of paragraph (e), (f), (g) or (h) of sub-section (1) of section 50h.

(a) any amount included in the assessable income of the company of the year of income in respect of an insurance recovery received by the company in any year of income, being an insurance recovery to which section 26b applies;

(b) any amount included in the assessable income of the company of the year of income under paragraph (b) of sub-section (6) of section 26ba;

(c) where an amount is included in the assessable income of the company of the year of income under sub-section (1) of section 36 in respect of a disposal of live stock by the company and the company has made an election under sub-section (3) of that section in respect of any profit arising on the disposal—so much of the amount included in the assessable income of the company as is equal to the amount of that profit;

(d) any amount included in the assessable income of the company of the year of income under paragraph (b) of sub-section (3a) of section 36;

(e) any amount included in the assessable income of the company of the year of income under paragraph (c) or (d) of sub-section (2) of section 36aaa;

(f) where an amount is included in the assessable income of the company of the year of income under paragraph (a) of sub-section (2) of section 36aa by reason that the company has made an election under sub-section (1) of that section in relation to the profit arising in respect of the death or destruction of live stock—so much of the amount included in the assessable income of the company as is equal to the amount of that profit;

(g) any amount included in the assessable income of the company of the year of income under paragraph (c) of sub-section (2) of section 36aa;

(h) any amount included in the assessable income of the company of the year of income under section 92;

(j) where an amount is included in the assessable income of the company of the year of income under section 97 in respect of a share of the net income of a trust estate and the Commissioner considers that the whole or a part of that share of the net income was derived from income that was derived during a period that is a relevant period in relation to the company in relation to the year of income—that share of the net income, or that part of the share of the net income, as the case may be.

(a) where—

(i) the assessable income of the company of the year of income includes a divisible amount in respect of an insurance recovery received by the company in the year of income, being an insurance recovery to which section 26b applies;

(ii) the amount is included in the assessable income of the company of the year of income otherwise than under sub-section (6) or (7) of that section; and

(iii) the insurance recovery was received by the company before the commencement of, or during, the relevant period,

(b) where a divisible amount is included in the assessable income of the company of the year of income under sub-section (6) or (7) of section 26b, so much of that divisible amount as bears to that divisible amount the same proportion as the number of whole days (if any) in the relevant period bears to 365 shall be deemed to be included in the assessable income of the company of the relevant period;

(c) where—

(i) a divisible amount is included in the assessable income of the company of the year of income under paragraph (b) of sub-section (6) of section 26ba by reason that an election was made by the company in relation to the shearing of sheep that, by reason of fire, drought or flood, took place at a time earlier than the time at which, but for that fire, drought or flood, that shearing would ordinarily have taken place; and

(ii) that shearing would ordinarily have taken place during the relevant period,

(d) where a divisible amount is included in the assessable income of the company of the year of income under sub-section (1) of section 36 in respect of a disposal of live stock by the company during the year of income and before the commencement of, or during, the relevant period, there shall be deemed to be included in the assessable income of the company of the relevant period an amount equal to so much of that divisible amount as bears to one-fifth of that divisible amount the same proportion as the number of whole days (if any) in the relevant period, being whole days occurring after the time when the disposal took place, bears to the number of whole days in the year of income, being whole days occurring after the time when the disposal took place;

(e) where a divisible amount is included in the assessable income of the company of the year of income under paragraph (b) of sub-section (3a) of section 36, so much of that divisible amount as bears to that divisible amount the same proportion as the number of whole days (if any) in the relevant period bears to 365 shall be deemed to be included in the assessable income of the company of the relevant period;

(f) where a divisible amount is included in the assessable income of the company of the year of income under paragraph (c) or (d) of sub-section (2) of section 36aaa, so much of that divisible amount as bears to that divisible amount the same proportion as the number of whole days (if any) in the relevant period bears to 365 shall be deemed to be included in the assessable income of the company of the relevant period;

(g) where a divisible amount is included in the assessable income of the company of the year of income under paragraph (a) of sub-section (2) of section 36aa by reason that the company has made an election under sub-section (1) of that section in relation to the profit arising in respect of the death or destruction of live stock during the year of income and before the commencement of, or during, the relevant period, there shall be deemed to be included in the assessable income of the company of the relevant period an amount equal to so much of that divisible amount as bears to one-fifth of that divisible amount the same proportion as the number of whole days (if any) in the relevant period, being whole days occurring after the time when the death or destruction took place, bears to the number of whole days in the year of income, being whole days occurring after the time when the death or destruction took place;

(h) where the assessable income of the company of the year of income includes a divisible amount that is included in the assessable income of the company under paragraph (c) of sub-section (2) of section 36aa or under sub-section (5) of that section, so much of that divisible amount as bears to that divisible amount the same proportion as the number of whole days (if any) in the relevant period bears to 365 shall be deemed to be included in the assessable income of the company of that relevant period;

(j) where, during the whole or a part of the relevant period, the company was a partner in a partnership that had a notional net income in respect of the relevant period, the assessable income of the company of the relevant period shall be deemed to include—

(i) where, for the purposes of section 92, the partnership had a net income of the year of income of the partnership—so much of the amount of the notional net income of the partnership in respect of the relevant period as bears to the amount of that notional net income the same proportion as the individual interest of the company in the net income of the partnership of that year of income of the partnership bears to the amount of the net income of the partnership of that year of income;

(ii) where, for the purposes of section 92, the partnership incurred a partnership loss in the year of income of the partnership—so much of the amount of the notional net income of the partnership of the relevant period as bears to the amount of that notional net income the same proportion as the individual interest of the company in the partnership loss of the partnership bears to the amount of that partnership loss; and

(iii) in any other case—so much of the notional net income of the partnership in respect of that relevant period as the Commissioner considers fair and reasonable having regard to the extent of the interest of the company in the partnership;

(k) where the assessable income of the company of the year of income includes a divisible amount that is included in the assessable income of the company of the year of income under section 92 in respect of the individual interest of the company in the net income of a partnership of a year of income and the period that constitutes that year of income of the partnership is not the same period as the period that constitutes the year of income of the company, so much of that divisible amount as the Commissioner considers fair and reasonable having regard to all the relevant circumstances shall be deemed to be included in the assessable income of the company of the relevant period; and

(m) there shall be deemed to be included in the assessable income of the company of the relevant period any amount that, by reason of paragraph (j) of sub-section (1), is a divisible amount in relation to that relevant period.

(a) any deduction allowable to the company in relation to the year of income under section 51 in respect of a bad debt;

(b) if the company is a leasing company, any deduction allowable to the company under Subdivision b of Division 3 in relation to the year of income in respect of a unit of eligible property leased by the company to another person or other persons;

(c) any deduction allowable to the company under section 63, 77b, 78, 80 or 80aa, under Subdivision ba of Division 3, under Division 10aa (other than section 124am) or under Division 16c;

(d) subject to sub-section (2), any deduction allowable to the company under Division 10 (other than section 122k).

(a) where—

(i) at any time during the year of income the company was a partner in a partnership;

(ii) a full-year partnership deduction has been allowed or is allowable, or full-year partnership deductions have been allowed or are allowable, to the partnership in relation to the year of income of the partnership that corresponds with the year of income of the company;

(iii) the period that constitutes that corresponding year of income of the partnership is the same period as the period that constitutes the year of income of the company; and

(iv) for the purposes of section 92, the partnership had a net income of that year of income of the partnership, so much of the amount of that full-year partnership deduction or of the sum of the amounts of those full-year partnership deductions, as the case may be, as bears to that amount or sum, as the case may be, the same proportion as the individual interest of the company in that net income bears to the amount of that net income shall be deemed to be a partnership deduction in relation to the company in relation to the year of income;

(b) where—

(i) at any time during the year of income the company was a partner in a partnership;

(ii) a full-year partnership deduction has been allowed or is allowable, or full-year partnership deductions have been allowed or are allowable, to the partnership in relation to the year of income of the partnership that corresponds with the year of income of the company;

(iii) the period that constitutes that corresponding year of income of the partnership is the same period as the period that constitutes the year of income of the company; and

(iv) for the purposes of section 92, a partnership loss was incurred by the partnership in that year of income of the partnership,

(c) where—

(i) at any time during the year of income the company was a partner in a partnership;

(ii) a full-year partnership deduction has been allowed or is allowable, or full-year partnership deductions have been allowed or are allowable, to the partnership in relation to the year of income of the partnership that corresponds with the year of income of the company;

(iii) the period that constitutes that corresponding year of income of the partnership is the same period as the period that constitutes the year of income of the company; and (iv) for the purposes of section 92, the partnership did not have a net income of that year of income of the partnership and did not incur a partnership loss in that year of income of the partnership,

(d) where—

(i) at any time during the year of income the company was a partner in a partnership;

(ii) a full-year partnership deduction has been allowed or is allowable, or full-year partnership deductions have been allowed or are allowable, to the partnership in relation to the year of income of the partnership that corresponds with the year of income of the company; and

(iii) the period that constitutes that corresponding year of income of the partnership is not the same period as the period that constitutes the year of income of the company,

(a) any deduction allowable to the partnership under section 78, under Subdivision ba of Division 3 or under Division 10aa (other than section 124am);

(b) subject to sub-section (5), any deduction allowable to the partnership under Division 10 (other than section 122k).

(a) any deduction allowable to the company in relation to the year of income under section 54, 57aa, 57ab, 62a, 67 or 70, sub-section (2) of section 73a, section 75a, 88 or 92, Division 10aaa (other than section 123c), Division 10a (other than section 124g or 124jb) or Division 10b (other than section 124n);

(b) where the company has made an election in relation to the year of income under section 122d or 122db—any deduction allowable to the company under that section in relation to the year of income.

(a) where a divisible deduction is allowable to the company in relation to the year of income under section 54 in respect of property that, during the whole or a part of the relevant period, was owned by the company and used by the company for the purpose of producing assessable income or installed ready for use for that purpose and held in reserve, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period during which the property was owned by the company and used by the company for the purpose of producing assessable income or installed ready for use for that purpose and held in reserve bears to the number of whole days during the year of income during which the property was owned by the company and used by the company for the purpose of producing assessable income or installed ready for use and held in reserve shall be deemed to be an allowable deduction in respect of that relevant period;

(b) where a divisible deduction is allowable to the company under section 57aa, 57ab or 62a in relation to the year of income, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;

(c) where a divisible deduction is allowable to the company in relation to the year of income under section 67 in respect of expenditure incurred by the company in borrowing money for a period, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in the relevant period that are within the period for which the money was borrowed bears to the number of whole days in the year of income that are within the period for which the money was borrowed shall be deemed to be an allowable deduction in respect of that relevant period;

(d) where—

(i) a divisible deduction is allowable to the company in relation to the year of income under section 70 in respect of expenditure of a capital nature incurred by the company on a telephone line;

(ii) the year of income is the first year of income in which the company incurred expenditure of a capital nature on that telephone line; and

(iii) before the commencement of, or during, the relevant period, the company incurred expenditure of a capital nature on that telephone line,

(e) where a divisible deduction is allowable to the company in relation to the year of income under section 70 in respect of expenditure of a capital nature incurred by the company on a telephone line and the year of income is not the first year of income in which the company incurred expenditure of a capital nature on that telephone line, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;

(f) where—

(i) a divisible deduction is allowable to the company in relation to the year of income under section 73a in respect of expenditure of a capital nature incurred by the company in the construction or acquisition of a building, or a part of a building, or in making any alteration or addition to a building;

(ii) the year of income is the first year of income in which the company incurred expenditure of a capital nature in the construction or acquisition of the building, in the construction or acquisition of the part of the building, or in making the alteration or addition to the building, as the case may be; and

(iii) the company incurred expenditure of a capital nature in the construction or acquisition of the building, in the construction or acquisition of the part of the building, or in making the alteration or addition to the building, as the case may be, before the commencement of, or during, the relevant period,

(g) where—

(i) a divisible deduction is allowable to the company in relation to the year of income under section 73a in respect of expenditure of a capital nature incurred by the company in the construction or acquisition of a building, or a part of a building, or in making any alteration or addition to a building; and

(ii) the year of income is not the first year of income in which the company incurred expenditure of a capital nature in the construction or acquisition of the building, in the construction or acquisition of the part of the building, or in making the alteration or addition to the building, as the case may be,

(h) where—

(i) a divisible deduction is allowable to the company in relation to the year of income under section 75a in respect of expenditure incurred by the company in respect of any land in Australia;

(ii) the year of income is the first year of income in which the company carried on a business of primary production on that land; and

(iii) before the commencement of, or during, the relevant period, the company carried on a business of primary production on that land,

(j) where a divisible deduction is allowable to the company in relation to the year of income under section 75a in respect of expenditure incurred by the company in respect of any land in Australia and the year of income is not the first year of income in which the company carried on a business of primary production on that land, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;

(k) where a divisible deduction is allowable to the company in relation to the year of income under sub-section (1) of section 88 in respect of a premium paid by the company or under sub-section (2) of that section in respect of expenditure incurred by the company, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;

(m) where—

(i) a divisible deduction is allowable to the company in relation to the year of income under sub-section (4) of section 88 by reason of the death of a person; and

(ii) the person died during the year of income and before the commencement of, or during, the relevant period,

(n) where a divisible deduction is allowable to the company in relation to the year of income under sub-section (4) of section 88 by reason of the death of a person and the year of income is not the year of income in which the person died, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;

(o) where, during the whole or a part of the relevant period, the company was a partner in a partnership that had a notional partnership loss in respect of the relevant period—

(i) where, for the purposes of section 92, the partnership had a net income of the year of income of the partnership—so much of the amount of the notional partnership loss as bears to the amount of that notional partnership loss the same proportion as the individual interest of the company in the net income of the partnership of that year of income of the partnership bears to the amount of the net income of the partnership of that year of income shall be deemed to be an allowable deduction to the company in respect of the relevant period;

(ii) where, for the purposes of section 92, the partnership incurred a partnership loss in the year of income of the partnership—so much of the amount of the notional partnership loss as bears to the amount of that notional partnership loss the same proportion as the individual interest of the company in the partnership loss for that year of income bears to the amount of that partnership loss shall be deemed to be an allowable deduction to the company in respect of the relevant period; and

(iii) in any other case—so much of the notional partnership loss as the Commissioner considers fair and reasonable having regard to the extent of the interest of the company in the partnership shall be deemed to be an allowable deduction to the company in respect of the relevant period;

(p) where a divisible deduction is allowable to the company in relation to the year of income under section 92 in respect of the individual interest of the company in a partnership loss incurred by a partnership in a year of income and the period that constitutes that year of income of the partnership is not the same period as the period that constitutes the year of income of the company, so much of that divisible deduction as the Commissioner considers fair and reasonable having regard to all the relevant circumstances shall be deemed to be an allowable deduction in respect of the relevant period;

(q) where a divisible deduction is allowable to the company in relation to the year of income under section 122d or 122db, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;

(r) where—

(i) a divisible deduction is allowable to the company in relation to the year of income under Division 10aaa in respect of a facility;

(ii) the year of income is the first year of income in which the facility was used primarily and principally for a purpose referred to in section 123a; and

(iii) the facility was used primarily and principally for a purpose referred to in section 123a before the commencement of, or during, the relevant period,

(s) where a divisible deduction is allowable to the company in relation to the year of income under Division 10aaa in respect of a facility and the year of income is not the first year of income in which the facility was used primarily and principally for a purpose referred to in section 123a, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;

(t) where—

(i) a divisible deduction is allowable to the company in relation to the year of income under section 124f in respect of expenditure of a capital nature incurred by the company on an access road, or under section 124ja in respect of expenditure of a capital nature incurred by the company in respect of a building;

(ii) the year of income is the first year of income in which the company incurred expenditure of a capital nature on that access road or building, as the case may be; and

(iii) the company incurred expenditure of a capital nature on that access road or building, as the case may be, before the commencement of, or during, the relevant period,

(u) where a divisible deduction is allowable to the company in relation to the year of income under section 124f in respect of expenditure of a capital nature incurred by the company on an access road, or under section 124ja in respect of expenditure of a capital nature incurred by the company in respect of a building, and the year of income is not the first year of income in which the company incurred expenditure of a capital nature on that access road or building, as the case may be, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;

(v) where—

(i) a divisible deduction is allowable to the company in relation to the year of income under section 124m (other than sub-section (3) of that section) in respect of a unit of industrial property;

(ii) the year of income is the first year of income in which the unit was used by the company for the purpose of producing assessable income; and

(iii) the unit was used by the company for the purpose of producing assessable income before the commencement of, or during, the relevant period,

(w) where a divisible deduction is allowable to the company in relation to the year of income under section 124m (other than sub-section (3) of that section) in respect of a unit of industrial property and the year of income is not the first year of income in which the unit was used by the company for the purpose of producing assessable income, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in the relevant period bears to 365 shall be deemed to be an allowable deduction in respect of the relevant period; and

(x) where a divisible deduction is allowable to the company in relation to the year of income under sub-section (3) of section 124m in respect of the residual value of a unit of industrial property and, in ascertaining that residual value, the whole or part of expenditure incurred by the company during the relevant period was included in the cost of that unit, an amount equal to the amount of that expenditure, or of that part of that expenditure, as the case may be, shall be deemed to be an allowable deduction in respect of the relevant period.

(a) immediately after the relevant time, there was no natural person, and there were no natural persons, who beneficially owned shares in the company carrying between them the right to exercise more than one-half of the voting power in the company who, immediately before the relevant time, beneficially owned shares in the company carrying between them the right to exercise more than one-half of the voting power in the company;

(b) immediately after the relevant time there was no natural person, and there were no natural persons, who beneficially owned shares in the company carrying between them the right to receive more than one-half of any dividend that might be paid by the company who, immediately before the relevant time, beneficially owned shares in the company carrying between them the right to receive more than one-half of any dividend that might be paid by the company;

(c) immediately after the relevant time there was no natural person, and there were no natural persons, who beneficially owned shares in the company carrying between them the right to receive more than one-half of any distribution of capital of the company who, immediately before the relevant time, beneficially owned shares in the company carrying between them the right to receive more than one-half of any distribution of capital of the company;

(d) at the relevant time, the voting power in the company was controlled, or became capable of being controlled, either directly or through one or more interposed companies, trustees or partnerships, by a person or persons who did not control the voting power in the company and was not or were not, as the case may be, capable of controlling the voting power in the company, either directly or through one or more interposed companies, trustees or partnerships, at any time before the relevant time, being a time during the year of income, and that person or those persons acquired the control of that voting power or became capable of acquiring the control of that voting power, as the case may be, for the purpose, or for purposes that included the purpose, of receiving any benefit or obtaining any advantage in relation to the application of this Act or securing that another person or other persons would receive such a benefit or obtain such an advantage;

(e) immediately before the relevant time, the company had an available loss and, at the relevant time, the company derived income that would not have been derived by the company if the company had not had an available loss immediately before the relevant time;

(f) immediately before the relevant time, the company had an available profit and, at the relevant time, the company incurred a loss or outgoing that would not have been incurred by the company if the company had not had an available profit immediately before the relevant time;

(g) immediately before the relevant time, the company had an available loss or an available profit and a person other than the company will, either directly or indirectly, receive a benefit, or obtain an advantage, in relation to the application of this Act as a result of the operation of any agreement, scheme, arrangement, understanding, transaction, course of conduct or course of business that—

(i) was entered into or commenced to be carried out at the relevant time; and

(ii) would not have been entered into or carried out if the company had not had an. available loss or an available profit, as the case may be, immediately before the relevant time; or

(h) at the relevant time, the affairs or business operations of the company were managed or conducted without proper regard to the rights, powers or interests of a natural person or natural persons who controlled the voting power in the company at the relevant time or who was or were, as the case may be, capable of controlling the voting power in the company at the relevant time, either directly or through one or more interposed companies, trustees or partnerships.

(a) a company shall be taken to have had an available loss immediately before a time during the year of income if, had the year of income ended immediately before that time, the assessable income of the company of the year of income would have been less than the allowable deductions (other than deductions under section 80 or 80aa) of the company of the year of income; and

(b) a company shall be taken to have had an available profit immediately before a time during a year of income if, had the year of income ended immediately before that time, the assessable income of the company of the year of income would have exceeded the allowable deductions (other than deductions under section 80 or 80aa) of the company of the year of income.

(a) a person has a shareholding interest in a company if he is the beneficial owner of, or of an interest in, any shares in the company; and

(b) where a person has a shareholding interest in a company that has a shareholding interest in another company (including a shareholding interest that the company has in that other company by any other application or applications of this paragraph) that person shall be deemed to have a shareholding interest in that other company.

(a) income would not have been derived, or a loss or outgoing would not have been incurred, by a company if a particular act had not been done;

(b) income would have been derived by a person if a particular act had not been done; or

(c) an agreement, scheme, arrangement, understanding, transaction, course of conduct or course of business would not have been entered into or carried out if a particular act had not been done,

(a) a reference to a person having had, or having, at any time a voting interest in a company shall be read as a reference to the person having been, or being, at that time the beneficial owner of shares in the company that carried, or carry, at that time the right to exercise any of the voting power in the company and the extent of the voting interest shall be taken to have been, or to be, the fraction of the total voting power in the company the right to exercise which was, or is, carried by those shares;

(b) a reference to a person having had, or having, at any time a dividend interest in a company shall be read as a reference to the person having been, or being, at that time the beneficial owner of shares in the company that carried, or carry, at that time any right to receive dividends that might have been, or may be, paid by the company and the extent of the dividend interest shall be taken to have been, or to be, the fraction of any dividends that might have been, or may be, paid by the company that would have been, or would be, received in respect of those shares;

(c) a reference to a person having had, or having, at any time a capital interest in a company shall be read as a reference to the person having been, or being, at that time the beneficial owner of shares in the company that carried, or carry, at that time the right to receive any distribution of capital in the company in the event of the winding-up, or of a reduction in the capital, of the company and the extent of the capital interest shall be taken to have been, or to be, the fraction of any distribution of capital of the company in such an event that would have been, or would be, received in respect of those shares; and

(d) where at any time 2 or more persons jointly had, or have, a voting interest, a dividend interest or a capital interest in a company, each of those persons shall be taken to have had, or to have, at that time a separate voting interest, dividend interest or capital interest, as the case may be, in the company equal to his share in the first-mentioned voting interest, dividend interest or capital interest.

(a) for the purposes of the application of sub-section (2) of section 50d, it is necessary to determine whether, at any time, a person beneficially owned shares in a company or whether certain rights were attached to shares in a company;

(b) for the purposes of determining, in accordance with section 50h, whether a disqualifying event is deemed to have occurred in relation to a company at a time during a year of income, it is necessary to determine whether a person beneficially owned shares in any company, or whether certain rights were attached to shares in any company, at any time during that year of income; or

(c) for the purposes of the application of section 50j, it is necessary to determine whether a person at any time beneficially owned shares in a company otherwise than by the operation of that section, or whether certain rights were attached at any time to shares in a company that were beneficially owned by a person otherwise than by the operation of that section.

(a) the share is, or at the option of the company is to be, liable to be redeemed; or

(b) the share was issued in pursuance of, or as part of, an agreement, whether oral or in writing and whether entered into before or after the commencement of this sub-section, that had the purpose, or purposes that included the purpose, of enabling the company, by means of the redemption, purchase or cancellation, or of a reduction in the paid-up value, of that share or of any other share in the company, to pay, transfer or apply to, on behalf of or at the direction of the person to whom the share was issued or any other person, whether upon the exercise of an option by the company or by any other person or not, any money or other property other than shares in the company.

(a) a person beneficially owned shares in a company, or a company claims that a person beneficially owned shares in a company, at a time (in this sub-section referred to as the ‘relevant time’) during a year of income;

(b) before or during the year of income, an agreement was entered into, or a right, power or option (including a contingent right, power or option) was granted, being an agreement, right, power or option that, in any way, directly or indirectly, related to, affected, or depended for its operation on—

(ii) the right of that person to sell, or otherwise dispose of, that interest, or any such sale or other disposition;

(iii) any rights carried by the shares, or the exercise of any such rights; or

(iv) any dividends that might be paid, or any distribution of capital that might be made, in respect of the shares, or the payment of any such dividends or the making of any such distribution of capital; and

(c) the agreement was entered into or the right, power or option was granted or acquired, for the purpose, or for purposes that included the purpose of securing that a person who, if the agreement had not been entered into or the right, power or option had not been granted or acquired, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than the person would have been liable to pay if the agreement had not been entered into, or the right, power or option had not been granted, as the case may be,

(a) during the year of income, a payment was made to the relevant company, or a liability was incurred to the relevant company, by a partnership in which another company was a partner; and

(b) by reason of the making of that payment, or the incurring of that liability, as the case may be, a dividend is deemed by section 65 to have been paid to the relevant company by that other company on the last day of a year of income of that other company,

B is the amount ascertained by multiplying the excess amount by 0.1; and

C is the fraction ascertained by dividing by 365 the number of whole days (if any) in the period commencing at the beginning of the year of income and ending at the end of the relevant period.

‘prescribed trading stock’ in relation to a company, means trading stock that, for the purposes of section 31b, is prescribed trading stock in relation to the company;

‘excess amount’ in relation to a company, means the amount that, in the application of section 31b in relation to the company, is the amount of the excess to which sub-section (4) of that section applies.

(a) where the assessable income of the company in respect of the relevant period consists of or includes income from private company dividends—so much (if any) of the amount of that income from private company dividends as remains after deducting in accordance with sub-sections (3), (4), (5) and (6) any allowable deductions or parts of allowable deductions that, by virtue of any of those sub-sections, are to be deducted from income from private company dividends;

(b) where the assessable income of the company in respect of the relevant period consists of or includes income from dividends other than private company dividends—so much (if any) of the amount of that income from dividends other than private company dividends as remains after deducting in accordance with sub-sections (3), (4), (5) and (6) any allowable deductions or parts of allowable deductions that, by virtue of any of those sub-sections, are to be deducted from income from dividends other than private company dividends;

(c) where the assessable income of the company in respect of the relevant period consists of or includes income from property other than dividends—so much (if any) of the amount of that income from property other than dividends as remains after deducting in accordance with sub-sections (3), (4), (5) and (6) any allowable deductions or parts of allowable deductions that, by virtue of any of those sub-sections, are to be deducted from income from property other than dividends; and

(d) where the assessable income of the company in respect of the relevant period consists of or includes income from personal exertion—so much (if any) of the amount of that income from personal exertion as remains after deducting in accordance with sub-sections (3), (4), (5) and (6) any allowable deductions or parts of any allowable deductions that, by virtue of any of those sub-sections, are to be deducted from income from personal exertion.

(a) so much of the allowable deductions (if any) in respect of the relevant period as relates directly to income from private company dividends as has not been deducted, in accordance with sub-section (3), from assessable income of the company in respect of the relevant period;

(b) so much of the allowable deductions (if any) in respect of the relevant period as relates directly to income from dividends other than private company dividends as has not been deducted, in accordance with sub-section (4), from assessable income of the company in respect of the relevant period;

(c) so much of the allowable deductions (if any) in respect of the relevant period as relates directly to income from property other than dividends as has not been deducted, in accordance with sub-section (5), from assessable income of the company in respect of the relevant period; and

(d) so much of the allowable deductions (if any) in respect of the relevant period as does not relate directly to income from property as has not been deducted, in accordance with sub-section (6), from assessable income of the company in respect of the relevant period.

(a) so much of allowable deductions that relate directly, in whole or in part, to income from private company dividends (whether of the relevant period, another relevant period or another year of income) as is deemed by sub-section (9) to be included in the notional loss shall be deemed to be included in the eligible notional loss;

(b) so much of allowable deductions that relate directly, in whole or in part, to income from dividends other than private company dividends (whether of the relevant period, another relevant period or another year of income) as is deemed by sub-section (9) to be included in the notional loss shall be deemed to be included in the eligible notional loss;

(c) so much of allowable deductions that relate directly, in whole or in part, to income from property other than dividends (whether of the relevant period, another relevant period or another year of income) as is deemed by sub-section (9) to be included in the notional loss shall be deemed to be included in the eligible notional loss; and

(d) so much of allowable deductions that do not relate directly, in whole or in part, to income from property as is deemed by sub-section (9) to be included in the notional loss shall be deemed to be included in the eligible notional loss.

(a) so much of the amount of allowable deductions that relate directly, in whole or in part, to income from private company dividends (whether of the relevant period, another relevant period or another year of income) that is deemed by sub-section (9) to be included in the notional loss as bears to that amount the same proportion as the part of that notional loss that is to be taken into account in determining the amount of the eligible notional loss bears to the whole of the notional loss shall be deemed to be included in the eligible notional loss;

(b) so much of the amount of allowable deductions that relate directly, in whole or in part, to income from dividends other than private company dividends (whether of the relevant period, another relevant period or another year of income) that is deemed by sub-section (9) to be included in the notional loss as bears to that amount the same proportion as the part of that notional loss that is to be taken into account in determining the amount of the eligible notional loss bears to the whole of the notional loss shall be deemed to be included in the eligible notional loss;

(c) so much of the amount of allowable deductions that relate directly, in whole or in part, to income from property other than dividends (whether of the relevant period, another relevant period or another year of income) that is deemed by sub-section (9) to be included in the notional loss as bears to that amount the same proportion as the part of that notional loss that is to be taken into account in determining the amount of the eligible notional loss bears to the whole of the notional loss shall be deemed to be included in the eligible notional loss; and

(d) so much of the amount of allowable deductions that do not relate directly, in whole or in part, to income from property that is deemed by sub-section (9) to be included in the notional loss as bears to that amount the same proportion as the part of that notional loss that is to be taken into account in determining the amount of the eligible notional loss bears to the whole of the notional loss shall be deemed to be included in the eligible notional loss.

(a) any amount, or the sum of any amounts, of income from private company dividends included in the notional taxable income of a relevant period or included in the notional taxable incomes of relevant periods, as the case may be, by sub-section (8); and

(b) any amount, or the sum of any amounts, of income from private company dividends included in a full-year amount or included in full-year amounts, as the case may be, in relation to the company in relation to the year of income,

(c) so much of allowable deductions that relate directly, in whole or in part, to income from private company dividends (whether of the year of income or of a previous year of income) as is deemed by this section to be included in the eligible notional loss of the company in relation to the year of income;

(d) so much of any full-year deduction or full-year deductions as relates directly to income from private company dividends; and

(e) so much of any partnership deduction or partnership deductions as relates directly to income from private company dividends.

(a) the deduction amount referred to in sub-section (14) exceeds the income amount referred to in that sub-section;

(b) the deduction amount referred to in sub-section (16) exceeds the income amount referred to in that sub-section; or

(c) the deduction amount referred to in sub-section (18) exceeds the income amount referred to in that sub-section,

(d) in a case where only one of paragraphs (a), (b) and (c) is applicable—the amount (if any) remaining after deducting from the excess income amount the amount of the excess referred to in the paragraph that is applicable; and

(e) in a case where 2 or more of paragraphs (a), (b) and (c) are applicable—the amount (if any) remaining after deducting successively from the excess income amount the amounts of the excesses referred to in the paragraphs that are applicable.

(a) any amount, or the sum of any amounts, of income from dividends other than private company dividends included in the notional taxable income of a relevant period or included in the notional taxable incomes of relevant periods, as the case may be, by sub-section (8); and

(b) any amount, or the sum of any amounts, of income from dividends other than private company dividends included in a full-year amount or included in full-year amounts, as the case may be, in relation to the company in relation to the year of income,

(c) so much of allowable deductions that relate directly, in whole or in part, to income from dividends other than private company dividends (whether of the year of income or of a previous year of income) as is deemed by this section to be included in the eligible notional loss of the company in relation to the year of income;

(d) so much of any full-year deduction or full-year deductions as relates directly to income from dividends other than private company dividends; and

(e) so much of any partnership deduction or partnership deductions as relates directly to income from dividends other than private company dividends.

(a) the deduction amount referred to in sub-section (12) exceeds the income amount referred to in that sub-section;

(b) the deduction amount referred to in sub-section (16) exceeds the income amount referred to in that sub-section; or

(c) the deduction amount referred to in sub-section (18) exceeds the income amount referred to in that sub-section,

(d) in a case where only one of paragraphs (a), (b) and (c) is applicable—the amount (if any) remaining after deducting from the excess income amount the amount of the excess referred to in the paragraph that is applicable; and

(e) in a case where 2 or more of paragraphs (a), (b) and (c) are applicable—the amount (if any) remaining after deducting successively from the excess income amount the amounts of the excesses referred to in the paragraphs that are applicable.

(a) any amount, or the sum of any amounts, of income from property other than dividends included in the notional taxable income of a relevant period or included in the notional taxable incomes of relevant periods, as the case may be, by sub-section (8); and

(b) any amount, or the sum of any amounts, of income from property other than dividends included in a full-year amount or included in full-year amounts, as the case may be, in relation to the company in relation to the year of income,

(c) so much of allowable deductions that relate directly, in whole or in part, to income from property other than dividends (whether of the year of income or of a previous year of income) as is deemed by this section to be included in the eligible notional loss of the company in relation to the year of income;

(d) so much of any full-year deduction or full-year deductions as relates directly to income from property other than dividends; and

(e) so much of any partnership deduction or partnership deductions as relates directly to income from property other than dividends.

(a) the deduction amount referred to in sub-section (12) exceeds the income amount referred to in that sub-section;

(b) the deduction amount referred to in sub-section (14) exceeds the income amount referred to in that sub-section; or

(c) the deduction amount referred to in sub-section (18) exceeds the income amount referred to in that sub-section,

(d) in a case where only one of paragraphs (a), (b) and (c) is applicable—the amount (if any) remaining after deducting from the excess income amount the amount of the excess referred to in the paragraph that is applicable; and

(e) in a case where 2 or more of paragraphs (a), (b) and (c) are applicable—the amount (if any) remaining after deducting successively from the excess income amount the amounts of the excesses referred to in the paragraphs that are applicable.

(a) any amount, or the sum of any amounts, of income from personal exertion included in the notional taxable income of a relevant period or included in the notional taxable incomes of relevant periods, as the case may be, by sub-section (8); and

(b) any amount, or the sum of any amounts, of income from personal exertion included in a full-year amount or included in full-year amounts, as the case may be, in relation to the company in relation to the year of income,

(c) so much of allowable deductions that do not relate directly, in whole or in part, to income from property as is deemed by this section to be included in the eligible notional loss of the company in relation to the year of income;

(d) so much of any full-year deduction or full-year deductions as does not relate directly to income from property; and

(e) so much of any partnership deduction or partnership deductions as does not relate directly to income from property.

(a) the deduction amount referred to in sub-section (16) exceeds the income amount referred to in that sub-section;

(b) the deduction amount referred to in sub-section (12) exceeds the income amount referred to in that sub-section; or

(c) the deduction amount referred to in sub-section (14) exceeds the income amount referred to in that sub-section,

(d) in a case where only one of paragraphs (a), (b) and (c) is applicable—the amount (if any) remaining after deducting from the excess income amount the amount of the excess referred to in the paragraph that is applicable; and

(e) in a case where 2 or more of paragraphs (a), (b) and (c) are applicable—the amount (if any) remaining after deducting successively from the excess income amount the amounts of the excesses referred to in the paragraphs that are applicable.

“(20) Where, in the application of sub-section (13), (15), (17) or (19), 2 or more amounts (in this sub-section referred to as ‘deductible amounts’) are required to be deducted successively from another amount (in this sub-section referred to as the ‘initial amount’), the first of those deductible amounts shall be set off against that initial amount and, if the initial amount exceeds that deductible amount, the next of those deductible amounts shall be set off against the amount by which the initial amount exceeds the first deductible amount and so on until either the deductible amounts are exhausted or the initial amount is exhausted.

(a) so much (if any) of that deduction or part, as the case may be, as, in the opinion of the Commissioner, may appropriately be related to income from private company dividends shall be deemed to relate directly to income from private company dividends; and

(b) so much (if any) of that deduction or part, as the case may be, as, in the opinion of the Commissioner, may not appropriately be related to income from private company dividends shall be deemed to relate directly to income from dividends other than private company dividends.

(a) the relevant company was a private company in relation to that year of income; and

(b) the other company was a private company in relation to the year of income of that other company during which the dividends were paid.

“(23) In the application of this section for the purposes of determining the amount of any rebate to which a company is entitled, or that may be allowed to a company, under section 46 or 46a in relation to a year of income, a reference in this section, in relation to the company in relation to the year of income, to private company dividends shall be read as not including a reference to so much of any dividends paid to the company by another company that is a non-resident as was paid out of profits derived from sources out of Australia.

(a) if, for the purposes of that Subdivision, the taxpayer has a notional loss in respect of a relevant period, or notional losses in respect of relevant periods, in relation to the year of income and the amount of that notional loss or the sum of the amounts of those notional losses, as the case may be, exceeds the amount (if any) that is the eligible notional loss of the company in relation to the year of income—the amount of the excess; and

(b) if, in the application of sub-section (2) of section 50c in relation to the taxpayer in relation to the year of income, the deductible amount referred to in that sub-section exceeds the income amount referred to in that sub-section—the amount of the excess,

(a) for the purposes of that Subdivision, the company has a notional loss in respect of a relevant period, or notional losses in respect of relevant periods, in relation to the year of income and the amount of that notional loss or the sum of the amounts of those notional losses, as the case may be, exceeds the amount (if any) that is the eligible notional loss of the company in relation to the year of income; or

(b) in the application of sub-section (2) of section 50c in relation to the taxpayer in relation to the year of income, the deductible amount referred to in that sub-section exceeds the income amount referred to in that sub-section,

(c) if the amount of the loss that, for the purposes of section 80, was incurred by the taxpayer in the year of income is equal to the notional primary production loss of the taxpayer—the amount of the notional primary production loss; and

(d) in any other case—the amount of the loss that, for the purposes of section 80, was incurred by the taxpayer in the year of income or the amount of the notional primary production loss of the taxpayer, whichever is the less.

(a) in a case where paragraph (a) of sub-section (3a) applies but paragraph (b) of that sub-section does not apply—the amount of the excess referred to in paragraph (a) of that sub-section;

(b) in a case where paragraph (b) of sub-section (3a) applies but paragraph (a) of that sub-section does not apply—the amount of the excess referred to in paragraph (b) of that sub-section; and

(c) in any other case—the sum of the amount of the excess referred to in paragraph (a) of sub-section (3a) and the amount of the excess referred to in paragraph (b) of that sub-section.

(a) the liquidator of a private company that is in the course of being wound up proposes to make a distribution of money or other property to shareholders of the company during the first 10 months of a year of income of the company;

(b) the distribution, if made, would, in whole or in part, be deemed by section 47 to be a dividend paid to the shareholders by the company out of profits derived by it; and

(c) the liquidator expects that there will be a distributable income in relation to the company in relation to the year of income,

(a) the liquidator of a private company notifies the Commissioner under sub-section (1) that he proposes to make a distribution of money or other property to shareholders of the company and requests the Commissioner to determine a period that, for the purposes of this section, is to be an additional distribution period in relation to the company in relation to a year of income; and

(b) the Commissioner considers that it is reasonable to assume that, if the money or other property that the liquidator proposes to distribute were not to be distributed during the prescribed period in relation to the year of income, there would, apart from this section, be an undistributed amount in relation to the company in relation to the year of income,

(a) whether, in the opinion of the Commissioner, the making of the proposed distribution before the expiration of that period of 10 months would expedite the winding up of the company;

(b) whether, apart from the operation of this Division (other than this section), it would be unreasonable for the liquidator not to make the proposed distribution before the commencement of the prescribed period in relation to the year of income;

(c) whether, in the opinion of the Commissioner, the distribution proposed to be made by the liquidator is to be made in the course of a transaction, operation, undertaking, scheme or arrangement that was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that a person who, if the transaction, operation, undertaking, scheme or arrangement had not been entered into or carried out, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the transaction, operation, undertaking, scheme or arrangement had not been entered into or carried out; and

(d) any other matters that he considers relevant.

(a) shall specify the period that has been determined by the Commissioner to be an additional distribution period in relation to the company in relation to a year of income; and

(b) shall be served on the liquidator before the commencement of that additional distribution period.

(a) whether any distribution of money or other property was made by the liquidator during that additional distribution period;

(b) if a distribution of money or other property was made, or distributions of money or other property were made, by the liquidator during that additional distribution period, the amount of that distribution or the amounts of those distributions, as the case may be; and

(c) if a distribution of property other than money was made, or distributions of property other than money were made, by the liquidator during that additional distribution period, the amount of that distribution of property or the amounts of those distributions of property, as the case may be, and the nature of the property that was distributed.

(a) the liquidator of a company has made a distribution or distributions of money or other property during a period that is an additional distribution period in relation to the company in relation to a year of income; and

(b) the Commissioner is satisfied that the distribution, or any of the distributions, as the case may be, arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement that was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that a person who, if the transaction, operation, undertaking, scheme or arrangement had not been entered into or carried out, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the transaction, operation, undertaking, scheme or arrangement had not been entered into or carried out,

(a) apart from this sub-section, a distribution or distributions of money or other property made by the liquidator of a company during a period that is an additional distribution period in relation to the company in relation to a year of income would, for the purposes of ascertaining, for the purposes of this Division, whether the company is deemed to have made a sufficient distribution in relation to the year of income, be taken, by virtue of sub-section (6), in whole or in part, to have been made during the prescribed period in relation to that year of income; and

(b) the company is not dissolved before the end of the period of 6 months, or such longer period as the Commissioner allows, after the end of that additional distribution period,

(a) the dissolution of a company occurs at any time; and

(b) by reason of the operation of any law or of an order of a court, the dissolution is void or the company is deemed to have continued in existence for any purpose after the time when the dissolution occurred,

(a) by inserting before the definition of “the owner” in sub-section (1) the following definitions:

“ ‘Australian film’ means a film that is certified in writing by the Minister for Home Affairs to be a film that—

(a) has been, or is to be, made wholly or substantially in Australia or in an external Territory and has, or will have, a significant Australian content; or

(b) has been, or is to be, made in pursuance of an agreement or arrangement entered into between the Government of Australia or an authority of the Government of Australia and the Government of another country or an authority of the Government of another country;

‘film’ means an aggregate of images, or of images and sounds, embodied in any material; “;

(b) by inserting after sub-section (1) the following sub-section:

(a) the subject-matter of the film;

(b) the place or places where the film was, or is to be, made;

(c) the nationalities and places of residence of—

(i) the persons who took part, or are to take part, in the making of the film (including authors, composers, actors, scriptwriters, editors, producers, directors and technicians);

(ii) the persons who are, or will be, the beneficial owners of the shares or stock in the capital of any company concerned in the making of the film; and

(iii) the persons who are, or will be, the beneficial owners of the copyright in the film;

(d) the source from which moneys used, or to be used, in the making of the film were, or will be, derived; and

(e) any other matters that he considers to be relevant.”; and

(c) by adding at the end thereof the following sub-sections:

(a) as trustee of the estate of the deceased owner of the unit;

(b) as a beneficiary under the will or a codicil of the deceased owner of the unit or under an order of a court that varied or modified the provisions of such a will or codicil; or

(c) as a beneficiary on the intestacy of the deceased owner of the unit or as a beneficiary under an order of a court that varied or modified the application, in relation to the estate of the deceased owner of the unit, of the provisions of the law relating to the distribution of the estates of persons who die intestate. “.

(a) by inserting in paragraph (a) of sub-section (1) “or other subject-matter” after “work”;

(b) by omitting “or” at the end of paragraph (b) of sub-section (1);

(c) by inserting in paragraph (c) of sub-section (1) “(other than a disposal by way of transmission by operation of law)” after “disposal”;

(d) by inserting in paragraph (c) of sub-section (1) “or other subject-matter” after “work”;

(e) by inserting after paragraph (c) of sub-section (1) the following word and paragraph:

“; or (d) acquired the unit of industrial property by virtue of the transmission, in whole or in part, of a unit of industrial property by operation of law, in a case where a deduction under this Division in respect of that unit has been allowed or is allowable in an assessment in respect of income of the last preceding owner of that unit or would have been so allowable if that unit, or the invention, work or other subject-matter or design to which that unit relates, had been used by that last preceding owner for the purpose of producing assessable income,”; and

(f) by inserting in sub-section (1) “or other subject-matter” after “work” (last occurring).

(a) at any time during the year of income a taxpayer was the owner of a unit of industrial property to whom this Division applies;

(b) the effective life of the unit in relation to the taxpayer expired before the commencement of the year of income; and

(c) there was a residual value of the unit in relation to the taxpayer as at the end of the year of income,

(a) where the owner ceases to be the owner of the unit of industrial property by virtue of the transmission of the unit by operation of law; or

(b) where the unit of industrial property was purchased or otherwise acquired by the owner for a specified period and he ceases to be the owner by reason that the specified period terminates.

(a) by omitting from sub-section (2) “(being a time before the expiration of the effective life of the unit in relation to the taxpayer)” (wherever occurring);

(b) by omitting from paragraph (b) of sub-section (2) “otherwise than in consideration of the payment of a lump sum” and substituting “in a case where there was no consideration receivable by the taxpayer in respect of the surrender”; and

(c) by omitting from sub-section (2) “the residual value of the unit in relation to the taxpayer at that time” and substituting “and there is a residual value of the unit in relation to the taxpayer as at that time, that residual value”.

(a) by omitting sub-sections (1) and (2) and substituting the following sub-section:

(a) if there is a residual value of that unit in relation to the taxpayer at that time and the amount of the consideration receivable in respect of the disposal exceeds that residual value—the amount of the excess; or

(b) if there is no residual value of that unit in relation to the taxpayer at that time—the amount of the consideration receivable in respect of the disposal,

shall be included in the assessable income of the taxpayer of the year of income.”; and

(b) by omitting from sub-section (3) “either of the last two preceding sub-sections” and substituting “sub-section (1)”.

(a) in the case of an owner referred to in paragraph (a) of sub-section (1) of section 124l—

(i) if sub-section (2) of this section is applicable—the cost ascertained in accordance with that sub-section; or

(ii) if sub-section (2) of this section is not applicable—the expenditure referred to in paragraph (a) of sub-section (1) of section 124l;

(b) in the case of an owner referred to in paragraph (b) of sub-section (1) of section 124l—

(i) if sub-section (3) or (5) of this section is applicable—the cost ascertained in accordance with that sub-section; or

(ii) if neither of those sub-sections is applicable—the expenditure referred to in paragraph (b) of sub-section (1) of section 124l;

(c) in the case of an owner referred to in paragraph (c) of sub-section (1) of section 124l—

(i) if the owner acquired a unit of industrial property of another person in whole—the residual value of the unit in relation to the last preceding owner of the unit immediately before the time of the disposal of the unit; or

(ii) in any other case—such part of that residual value as the Commissioner determines; or

(d) in the case of an owner referred to in paragraph (d) of sub-section (1) of section 124l—

(i) if the owner acquired a unit of industrial property of another person in whole—an amount ascertained by deducting from the residual value of the unit in relation to the last preceding owner of the unit immediately before the time of the transmission of the unit any deductions allowed or allowable under this Division in respect of the unit in an assessment in respect of income of that last preceding owner of the year of income during which the transmission took place; or

(ii) in any other case—such part of that amount as the Commissioner determines.

(a) the owner and that person were not dealing with each other at arm’s length in relation to the supply of those goods or the provision of those services; and

(b) the expenditure of a capital nature incurred by the owner in relation to devising the invention, producing the work or other subject-matter in which the copyright subsists or producing the design, as the case may be, exceeds the expenditure of a capital nature that would have been incurred by the owner if the owner and that person had dealt with each other at arm’s length,

(a) the Commissioner is satisfied, having regard to any connection between the owner and the person from whom the unit of industrial property concerned was purchased or to any other relevant circumstances, that the owner and that person were not dealing with each other at arm’s length in relation to the purchase; and

(b) the expenditure of a capital nature incurred by the owner on the purchase of the unit of industrial property—

(i) exceeds the amount that was the cost of the unit to the last preceding owner of the unit; or

(ii) does not exceed the amount that was the cost of the unit to the last preceding owner of the unit but exceeds the value of the unit at the time of the purchase,

(a) by inserting after sub-section (1) the following sub-section:

(b) by omitting sub-section (2) and substituting the following sub-section:

(a) in a case to which paragraph (b) does not apply—an amount equal to the expenditure so incurred in obtaining the surrender; or

(b) if—

(i) the Commissioner is satisfied, having regard to any connection between the owner and the person who surrendered the licence or to any other relevant circumstances, that the owner and that person were not dealing with each other at arm’s length in relation to the surrender; and

(ii) the consideration for the surrender—

(a) was greater than the value of the licence at the time of the surrender; or

(b) was not greater than that value but was greater than the expenditure of a capital nature that was incurred by the person who surrendered the licence in obtaining the grant of the licence,

an amount equal to that value or that expenditure, whichever is the less.”.

(a) where the unit is sold in whole or in part (whether with or without other property) for a specified price—the sale price of the unit or part of the unit, less the expenses of the sale of the unit or part of the unit or such part of the expenses of the sale of the unit or part of the unit together with the other property as the Commissioner determines;

(b) where the unit is sold in whole or in part together with other property and a specified price is not allocated to the unit or the part of the unit—such part of the sale price of the unit or part of the unit together with the other property as the Commissioner determines, less such part of the expenses of the sale of the unit or part of the unit together with the other property as the Commissioner determines; or

(c) where the unit is transmitted by operation of law—

(i) if the unit is transmitted in whole—an amount equal to the residual value of the unit in relation to that owner of the unit immediately before the time of the transmission of the unit; or

(ii) if the unit is transmitted in part—such part of that residual value as is determined by the Commissioner.

(a) the Commissioner is satisfied, having regard to any connection between the owner and that other person or to any other relevant circumstances, that the owner and that other person were not dealing with each other at arm’s length in relation to the disposal; and

(b) there was no amount receivable by the owner in respect of the disposal or the amount receivable by the owner in respect of the disposal was less than the value of the unit or the part of the unit at the time of the disposal,

(a) the owner of a unit of industrial property to whom this Division applies disposes of the unit in whole or in part; and

(b) the whole or a part of the amount receivable by the owner in respect of the disposal has been included or is to be included in the assessable income of the owner of any year of income under any provision of this Act other than a provision of this Division,

(a) by inserting in sub-section (1) “(not being a unit of industrial property the effective life of which for the purposes of this Division is required to be determined under sub-section (1) of section 124ua)” after “property”; and

(b) by inserting in sub-section (1) “or other subject-matter” after “work”.

(a) where the unit was purchased or otherwise acquired by him for a specified period—at the end of the year of income next succeeding the year of income during which the unit was first so used or at the end of the year of income during which the specified period will terminate, whichever will first occur; or

(b) in any other case—at the end of the year of income next succeeding the year of income during which the unit was first so used.

24. Section 124w of the Principal Act is repealed and the following section substituted:

(a) the formation or dissolution of a partnership; or

(b) a variation in the constitution of a partnership or in the interests of the partners,

(a) for the purposes of the application of this Division to the person or persons who owned the unit before the change, that person or those persons shall be deemed to have disposed of the unit as mentioned in sub-section (2) for a consideration equal to the value of the unit at the time when the change occurred; and

(b) for the purposes of the application of this Division to the person or persons by whom the unit is owned after the change, that person or those persons shall be deemed to have incurred expenditure of a capital nature on the purchase of the unit of an amount equal to the value of the unit at the time when the change occurred or the cost of the unit to the person or persons who owned the unit before the change, whichever is the less.

(a) for the purposes of the application of this Division to the person or persons who owned the unit before the change, that person or those persons shall be deemed to have disposed of the unit as mentioned in sub-section (2) for a consideration equal to the amount specified in the agreement; and

(b) for the purposes of the application of this Division to the person or persons by whom the unit is owned after the change, that person or those persons shall be deemed to have incurred expenditure of a capital nature on the purchase of the unit of an amount equal to the value of the unit at the time when the change occurred or the cost of the unit to the person or persons who owned the unit before the change, whichever is the less.

(a) for the purposes of the application of this Division to the person or persons who owned the unit before the change, that person or those persons shall be deemed to have disposed of the unit as mentioned in sub-section (2) for a consideration equal to the value of the unit at the time when the change occurred; and

(b) for the purposes of the application of this Division to the person or persons who owned the unit after the change, that person or those persons shall be deemed to have incurred expenditure of a capital nature on the purchase of the unit of an amount equal to the amount so specified in the agreement or the cost of the unit to the person or persons who owned the unit before the change, whichever is the less. “.

(a) by omitting “a lump sum” from paragraph (b) and substituting “an amount”; and

(b) by omitting “that lump sum” and substituting “that amount”.

(a) by omitting “a lump sum” and substituting “an amount”; and

(b) by omitting “that lump sum” and substituting ‘‘that amount’’.

(a) the amount remaining after deducting from the amount of the dividends included in the assessable income of the company of that year of income—

(i) any deductions allowable to the company under this Act from income from dividends, being deductions that relate directly to the dividends; and

(ii) so much of any other deductions allowable to the company under this Act from income from dividends as, in the opinion of the Commissioner, may appropriately be related to the dividends;

(b) any amount included in the taxable income of the company of that year of income in accordance with Division 12 or 14;

(c) the amount (if any) included in the taxable income of the company of that year of income in accordance with section 143, other than an amount included in that taxable income by reason of the application of the proviso to that section;

(d) if sub-section (1) of section 148 applies to the company in relation to that year of income—the amount (if any) by which the taxable income of the company of that year of income is greater than it would have been if that sub-section had not so applied; and

(e) where the company is a life assurance company for the purposes of Division 8—

(i) so much of the part of the taxable income of the company of that year of income that has been derived from its life assurance business (as reduced by so much of the amount (if any) referred to in paragraph (a) as is included in that part) as bears the same proportion to that part of the taxable income (as so reduced) as the amount of the profits divided for the same year of income among the life assurance policy holders of the company bears to the total profits divided among those policy holders and the shareholders of the company in respect of the company’s life assurance business for the same year of income; or

(ii) where no profits in respect of the company’s life assurance business are divided for the year of income but, by virtue of the company’s constituent document, any profits to be divided among the life assurance policy holders of the company are required to be a certain proportion of the total profits to be divided—that proportion of the part of the taxable income of the company of that year of income that has been derived from its life assurance business, reduced by so much of the amount (if any) referred to in paragraph (a) as is included in that part.

‘(a) so much of any dividends as is deemed to be included in the taxable income of the company of that year of income by reason of the operation of section 50n;’.

(a) by inserting in sub-section (10) “, section 105ab” after “section 105aa”; and

(b) by inserting in sub-section (13) “section 50h (other than paragraphs (a), (b) and (c) of sub-section (1) of that section), section 50k,” after “to the provisions of”.