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Income Tax Laws Amendment Act 1981

Authoritative Version
Act No. 108 of 1981 as made
An Act to amend the law relating to income tax
Administered by: Treasury
Date of Assent 24 Jun 1981
Date of repeal 10 Dec 2015
Repealed by Amending Acts 1980 to 1989 Repeal Act 2015

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Income Tax Laws Amendment Act 1981

No. 108 of 1981

TABLE OF PROVISIONS

PART I—PRELIMINARY

Section

1.  Short title

2.  Commencement

PART II—AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

3.  Principal Act

4.  Interpretation

5.  Disposal on change of ownership or interests

6.  Divisible deductions

7.  Special depreciation on plant

8.  Insertion of new section—

57aj. Special depreciation on storage facilities for petroleum fuel

9.  Insertion of new section—

70a. Cost of mains electricity connections

10.  Gifts, calls on afforestation shares, pensions, &c.

11.  Losses of previous years

12.  Losses of previous years incurred in engaging in primary production

13.  Deductions under Subdivision to be in addition to certain other deductions

14.  Deductions under Subdivision to be in addition to certain other deductions

15.  Interpretation

16.  Insertion of new Subdivision—

Subdivision E— Deductions of expenditure in respect of home insulation

82km. Interpretation

82kn. Payments to which Subdivision applies

82ko. Recoupment of expenditure

82kp. Payment to be allowable deduction

82kq. Deduction reduced in certain circumstances

82kr. Non-arm’s length transactions

82ks. Variation of contracts

17.  Present entitlement arising from reimbursement agreement


TABLE OF PROVISIONScontinued

Section

18.  Insertion of new Division—

Division 9cAssessable income diverted under certain tax avoidance schemes

121f. Interpretation

121g. Diverted income and diverted trust income

121h. Assessment of diverted income and diverted trust income

121j. Ascertainment of diverted income or diverted trust income deemed to be an assessment

121k. Division applies notwithstanding exemption under other laws

19.  Insertion of new section—

122na. Division not applicable where deduction allowable in accordance with section 57aj

20.  Insertion of new section—

124ana. Division not applicable where deduction allowable in accordance with section 57aj

21.  Liability to withholding tax

22.  Life insurance premiums, &c.

23.  Amendment of assessments

24.  Formal amendments

25.  Arrangement to avoid the operation of sections 11 and 12

PART III—AMENDMENTS OF THE INCOME TAX ASSESSMENT AMENDMENT ACT (No. 6) 1980

26.  Principal Act

27.  Application of amendments made by sections 11 and 12


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Income Tax Laws Amendment Act 1981

No. 108 of 1981

 

An Act to amend the law relating to income tax

[Assented to 24 June 1981]

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

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Income Tax Laws Amendment Act 1981.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

PART II—AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Principal Act

3. The Income Tax Assessment Act 19361 is in this Part referred to as the Principal Act.

Interpretation

4. Section 6 of the Principal Act is amended—

(a) by inserting “or E” after “Subdivision C” in the definition of “apportionable deductions” in sub-section (1); and

(b) by inserting “or E” after “Subdivision C” in the definition of “concessional deductions” in sub-section (1).


Disposal on change of ownership or interests

5. Section 36a of the Principal Act is amended by adding at the end thereof the following sub-sections:

“(8) Where—

(a) a change has occurred, otherwise than in the course of ordinary family or commercial dealing, in the ownership of, or in the interests of persons in, property that is not a chose in action and is not property to which paragraphs (7) (b) and (c) apply;

(b) a notice for the purposes of sub-section (2) in respect of the change in ownership or interests was given to the Commissioner after 30 January 1981 and before the commencement of this sub-section or is given to the Commissioner after the commencement of this sub-section;

(c) consideration was received or receivable in connection with the change in ownership or interests by the person, or by any one or more of the persons, who owned the property before the change; and

(d) the amount or value of that consideration substantially exceeds the amount or value of the consideration that might reasonably be expected to have been received or receivable by the person or persons referred to in paragraph (c) in connection with the change in ownership or interests if the value of the property, immediately before the change, had been the value applicable in accordance with sub-section (2),

then, notwithstanding sub-section (2), the notice does not have any effect to the extent to which the notice is in respect of that change in ownership or interests unless the persons giving the notice establish to the satisfaction of the Commissioner that the change in ownership or interests occurred on or before 30 January 1981.

“(9) For the purposes of the application of sub-section (8) in relation to a change in the ownership of, or in the interests of persons in, property, so much of any consideration received or receivable by any person in connection with the change in ownership or interests as, in the opinion of the Commissioner, may appropriately be regarded as consideration received or receivable by the person or persons who owned the property before the change in ownership or interests shall be deemed to be consideration received or receivable by that person or by those persons, as the case may be, in connection with the change in ownership or interests.

“(10) In forming an opinion for the purposes of sub-section (9) whether it is appropriate that consideration received or receivable by a person (in this section referred to as the ‘relevant person’) in connection with a change in the ownership of, or in the interests of persons in, property should be regarded, in whole or in part, as consideration received or receivable in connection with the change in ownership or interests by the person or persons who owned the property before the change in ownership or interests, the Commissioner shall have regard to—

(a) any agreement entered into in connection with the change in ownership or interests;


(b) any agreement entered into in connection with the payment of the consideration to, or the receipt of the consideration by, the relevant person where, as a result of, or in connection with, the agreement, the person or any of the persons, who owned the property before the change in ownership or interests or any other person (other than the relevant person) will benefit from the giving of the consideration to, or the receipt of the consideration by, the relevant person;

(c) the nature of any connection (whether of a business, family or other nature) between the relevant person and the person, or any of the persons, who owned the property before the change in ownership or interests; and

(d) any other matters that the Commissioner considers relevant.

“(11) In sub-section (10), ‘agreement’ means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.

“(12) In sub-sections (8), (9) and (10), a reference to consideration received or receivable by a person in connection with a change in the ownership of, or in the interests of persons in, property includes a reference to the amount or value of any benefit obtained, or that may reasonably be expected to be obtained, by the person in connection with that change in ownership or interests.”.

Divisible deductions

6. (1) Section 50g of the Principal Act is amended by omitting from paragraph (1) (a) “or 57ah” and substituting “, 57ah or 57aj”.

(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income in which 1 October 1980 occurred and in respect of income of all subsequent years of income.

Special depreciation on plant

7. Section 57ag of the Principal Act is amended by omitting from paragraph (2) (b) “or 57ah” and substituting “, 57ah or 57aj”.

8. After section 57ah of the Principal Act the following section is inserted:

Special depreciation on storage facilities for petroleum fuel

“57aj. (1) In this section, ‘petroleum fuel’ means petroleum or a product obtained by refining petroleum, being petroleum or such a product that is in a liquid or gaseous state at a temperature of 20° Celsius and a pressure of 1 atmosphere.

“(2) Subject to sub-section (3), this section applies to a unit of property, in relation to a taxpayer, in relation to a year of income if—

(a) depreciation is allowable, or would but for sections 122n and 124an be allowable, to the taxpayer under section 54 in respect of that unit of property in relation to the year of income;


(b) during the year of income—

(i) the unit of property was first used by the taxpayer for the purpose of producing assessable income (not having been installed ready for use for that purpose and held in reserve in a previous year of income); or

(ii) the unit of property was first installed ready for use for the purpose of producing assessable income and held in reserve;

(c) the unit of property—

(i) was acquired by the taxpayer under a contract entered into on or after 1 October 1980; or

(ii) was constructed by the taxpayer and commenced to be constructed on or after 1 October 1980;

(d) the unit of property was not, before 1 October 1980, installed at a place at which, during the year of income, the taxpayer used the property for the purpose of producing assessable income or held the property in reserve; and

(e) the unit of property was not, at any time during the year of income when it was owned by the taxpayer, used, or installed ready for use and held in reserve, otherwise than—

(i) wholly and exclusively for the purpose of the storage in Australia of petroleum fuel for the purpose of—

(a) sale as fuel; or

(b) use as fuel in the course of the carrying on of a business; or

(ii) wholly and exclusively for the purpose of conveying petroleum fuel into or out of, or measuring the amount of petroleum fuel in, any other unit of property (not being a unit of property to which paragraph (3) (a) or (b) applies) that was owned by the taxpayer and used, or installed ready for use and held in reserve, wholly and exclusively for the purpose of the storage in Australia of petroleum fuel for the purpose of—

(a) sale as fuel; or

(b) use as fuel in the course of carrying on a business.

“(3) This section does not apply to a unit of property being—

(a) a ship, a unit of railway rolling stock, a road vehicle, a pipeline, a container or any other unit of property that is for use in the transport of fuel; or

(b) a unit of property that is for use for the storage of fuel in or on a ship, a unit of railway rolling stock, a road vehicle, an aircraft or any other vehicle.

“(4) Notwithstanding anything contained in sections 55, 56, 56a, 57, 122n and 124an, the depreciation allowable to a taxpayer under this Act in relation to a year of income in respect of a unit of property to which this section applies in relation to the year of income is 100% of the cost of the unit.


 

“(5) Sub-section 56 (4) applies for the purposes of sub-section (4) of this section in like manner as that first-mentioned sub-section applies in relation to paragraph 56 (1) (b).

“(6) Sub-sections 57ah (7), (8), (9) and (10) apply for the purposes of this section as if—

(a) those sub-sections were included in this section;

(b) ‘sub-section (3)’ were omitted from paragraph 57ah (7) (c) and ‘sub-section (4)’ were substituted;

(c) ‘sub-section (3)’ were omitted from paragraph 57ah (8) (c) and ‘sub-section (4)’ were substituted; and

(d) ‘(6),’ were omitted from sub-section 57ah (9).”.

9. After section 70 of the Principal Act the following section is inserted:

Cost of mains electricity connections

“70a. (1) Subject to this section, this section applies to expenditure of a capital nature incurred, on or after 1 October 1980, by a taxpayer being—

(a) the owner of land in Australia; or

(b) a lessee, tenant or other person having an interest in land in Australia, on the connection of mains electricity facilities to that land where—

(c) at the time when the expenditure was incurred, the property in respect of which the expenditure was incurred was used, or installed ready for use and held in reserve, by the taxpayer or another person for, or in connection with, the provision of electricity for use, wholly or partly, in carrying on an assessable business on the land; or

(d) in a case to which paragraph (c) does not apply—the Commissioner is satisfied that, at the time when the expenditure was incurred, the taxpayer or another person intended to use the property in respect of which the expenditure was incurred for, or in connection with, the provision of electricity for use, wholly or partly, in carrying on an assessable business on the land at a time when the taxpayer was the owner, lessee or tenant or had an interest in the land, as the case may be.

“(2) This section does not apply to expenditure of a capital nature incurred by a taxpayer in providing, or by way of contribution to the cost of providing, water, light or power for use on or access to or communication with the site of prescribed mining operations within the meaning of Division 10 or prescribed petroleum operations within the meaning of Division 10aa.

“(3) Subject to this section, where a taxpayer incurs expenditure to which this section applies, the amount of that expenditure is an allowable deduction in the assessment of the taxpayer in respect of income of the year of income in which the expenditure is incurred.

“(4) Where—

(a) a deduction has been allowed, or would but for this sub-section be allowable, under this section from the assessable income of a taxpayer


of a year of income in respect of expenditure incurred on the connection of mains electricity facilities to land, being expenditure in relation to which this section would not apply but for paragraph (1) (d); and

(b) at no time during the period of 12 months after the time when the property in respect of which the expenditure was incurred is first used for, or in connection with, the provision of electricity to the land, is that property used, or installed ready for use and held in reserve, for, or in connection with, the provision of electricity for use in the carrying on of an assessable business on the land,

the deduction shall be deemed not to have been allowable, or not to be

allowable, as the case may be.

“(5) Where—

(a) a deduction has been allowed, or is allowable, under this section from the assessable income of a taxpayer of a year of income in respect of expenditure to which this section applies; and

(b) the taxpayer is recouped in respect of that expenditure by the Commonwealth, by a State, by a Territory, by an authority constituted by or under a law of the Commonwealth, of a State or of a Territory, or by any other person,

the amount recouped by the taxpayer shall be included in the assessable income of the taxpayer of the year of income in which the taxpayer is recouped.

“(6) For the purposes of sub-section (5), any consideration received by a taxpayer in respect of the disposal or transfer of the taxpayer’s right to be recouped in respect of any expenditure to which this section applies shall be taken to be an amount recouped by the taxpayer in respect of that expenditure.

“(7) A reference in sub-section (6) to a right to be recouped in respect of expenditure to which this section applies includes a reference to an interest in a partnership to the extent to which the interest includes a right to be recouped in respect of any such expenditure.

“(8) Where a taxpayer receives an amount that constitutes to an unspecified extent a recoupment of expenditure to which this section applies, the Commissioner may, for the purposes of sub-section (5), determine the extent to which the amount constitutes a recoupment of that expenditure.

“(9) Where an amount of expenditure to which this section applies has been allowed or is allowable as a deduction under this section in an assessment of a taxpayer of any year of income, no amount shall, in respect of that expenditure, be an allowable deduction or be taken into account in ascertaining the amount of an allowable deduction, under a provision of this Act other than this section, in any assessment of any taxpayer or in calculating in accordance with section 90 the net income of any partnership or any partnership loss in respect of any year of income.

“(10) This section does not apply in relation to the calculation of the net income of a partnership, or a partnership loss, in accordance with section 90, but, where a partnership has incurred expenditure to which this section would apply if the partnership were a taxpayer, then, for the purposes of the applica-


tion of sub-section (3) in respect of a partner in a partnership, that partner shall be deemed to have incurred an amount of expenditure to which this section applies equal to—

(a) so much of the amount of that expenditure as the partners have agreed is to be borne by that partner; or

(b) if the partners have not agreed as to the part of that amount that is to be borne by that partner—so much of that amount as bears to that amount the same proportion as the individual interest of the partner in the net income of the partnership of the year of income in which the relevant expenditure was incurred bears to that net income or, as the case requires, the individual interest of the partner in the partnership loss for that year of income bears to that partnership loss.

“(11) In this section—

(a) a reference to the connection to any land of mains electricity facilities is a reference to—

(i) the connection of mains electricity cables from a point on the land or outside the land to a point on the land at which the consumption of electricity supplied through those cables to the land is to be metered;

(ii) the provision or installation of mains electricity metering equipment for use in connection with the supply of electricity to the land through mains electricity cables;

(iii) the provision or installation of equipment that is for use directly in connection with the supply of electricity to the land through mains electricity cables to a point on the land at which the consumption of electricity supplied through those cables to the land is metered; and

(iv) any work undertaken to increase the amount of electricity that may be supplied to the land through mains electricity cables to a point on the land at which the consumption of electricity supplied through those cables is metered and any consequential modification or replacement of mains electricity metering equipment or other equipment that is for use directly in connection with the supply of electricity to that point,

but does not include a reference to the connection of mains electricity cables, the provision or installation of equipment or any work undertaken in the course of replacing or re-locating mains electricity cables or any equipment unless the connection of the mains electricity cables, the provision or installation of the equipment or the undertaking of the work is for the purpose of obtaining an increase in the amount of electricity that can be supplied to a point on the land;

(b) a reference to expenditure incurred on the connection to any land of mains electricity facilities includes a reference to expenditure incurred by way of contribution to the cost of a project consisting of the connection of mains electricity facilities to that land and to other land;


(c) a reference to mains electricity metering equipment is a reference to equipment designed to measure the amount of electricity supplied to any place through mains electricity cables;

(d) a reference, in relation to expenditure incurred on the connection to any land of mains electricity facilities, to the property in respect of which the expenditure was incurred is a reference to the mains electricity cables or the equipment, or the mains electricity cables and the equipment, as the case requires, in respect of which the expenditure was incurred;

(e) a reference to the carrying on of an assessable business is a reference to the carrying on of a business for the purpose of producing assessable income; and

(f) a reference to a person having an interest in land includes a reference to a share-farmer carrying on a business on the land.”.

Gifts, calls on afforestation shares, pensions, &c.

10. (1) Section 78 of the Principal Act is amended—

(a) by inserting after sub-paragraph (1) (a) (lix) the following sub-paragraphs:

“; (lx) the Herbert Vere Evatt Memorial Foundation Incorporated;

“(lxi) the I.D.E.C. African Relief Appeal;

“(lxii) a public fund in respect of which there is in force, at the time when the gift is made, a declaration under sub-section (8) that the fund is an eligible fund for the purposes of this sub-paragraph;

“(lxiii) a public fund established and maintained exclusively for the purpose of providing religious instruction in government schools in Australia,”;

(b) by inserting after sub-section (6) the following sub-section:

“(6aaa) A gift to the fund specified in sub-paragraph (1) (a) (1) is not an allowable deduction under that sub-paragraph unless the gift was made on or after 1 July 1979 and on or before 18 September 1980.”;

(c) by omitting from sub-section (6aa) “sub-paragraph (1) or sub-paragraph (li) of paragraph (a) of sub-section (1)” and substituting “sub-paragraph (1) (a) (li)”;

(d) by inserting after sub-section (6ab) the following sub-section:

“(6ac) A gift to the fund specified in sub-paragraph (1) (a) (lxi) is not an allowable deduction under that sub-paragraph unless the gift was made on or after 1 July 1980 and on or before 18 September 1980.”; and

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

“(8) Where the Treasurer is satisfied that a fund is a fund established by an approved organization (whether or not the organization was an approved organization at the time when the fund was established) exclusively for the relief of persons in a certified country or certified countries (whether or not that country was a certified country or those countries were certified countries at the time when the fund was


established), the Treasurer may, in his discretion, by notice published in the Gazette, declare that fund to be an eligible fund for the purposes of sub-paragraph (1) (a) (lxii).

“(9) Subject to sub-section (10), a notice published in the Gazette under sub-section (8) has effect on and after the date specified in the notice as the date on and after which the notice has effect, being a date not earlier than the date on which the notice is published in the Gazette.

“(10) Where a notice published in the Gazette under sub-section (8) before 1 July 1981 specifies 19 September 1980 as the date on and after which the notice has effect, the notice has effect and shall be deemed to have had effect on and after 19 September 1980.

“(11) The Treasurer may, in his discretion, by notice published in the Gazette, at any time revoke a declaration under sub-section (8) and any such revocation has effect on and after such date as is specified in the notice as the date on and after which the notice has effect, being a date not earlier than the date on which the notice is published in the Gazette.

“(12) In sub-section (8)—

‘approved organization’ means an organization approved in writing by the Minister for Foreign Affairs, in his discretion, for the purposes of sub-section (8);

‘certified country’ means a country certified in writing by the Minister for Foreign Affairs, in his discretion, to be a developing country.”.

(2) Sub-paragraph 78 (1) (a) (lx) inserted in the Principal Act by paragraph (1) (a) of this section applies to gifts made after 16 January 1981.

(3) Sub-paragraph 78 (1) (a) (lxiii) inserted in the Principal Act by paragraph (1) (a) of this section applies to gifts made after 23 December 1980.

(4) Nothing in section 170 of the Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the amendments made by subsection (1).

Losses of previous years

11. Section 80 of the Principal Act is amended—

(a) by omitting from sub-section (2) “sub-section (5)” and substituting “sub-sections (5) and (6)”;

(b) by omitting from paragraph (5) (m) “1980” and substituting “1981”; and

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

“(6) For the purpose of determining whether a deduction is allowable to a taxpayer under sub-section (2) in respect of the year of income that commenced on 1 July 1980 or in respect of a subsequent year of income and for the purpose of ascertaining the amount of any such


deduction, there shall be disregarded so much of the amount of any loss deemed to have been incurred by the taxpayer as would not have been deemed, for the purposes of this section, to have been incurred by the taxpayer if section 36a of this Act, as in force immediately after the commencement of the Income Tax Laws Amendment Act 1981, were amended by omitting sub-section (8) and substituting the following section:

‘(8) Where—

(a) at any time, whether before or after the commencement of the Income Tax Laws Amendment Act 1981, a change has occurred, otherwise than in the course of ordinary family or commercial dealing, in the ownership of, or in the interests of persons in, property;

(b) consideration was received or receivable in connection with the change in ownership or interests by the persons, or by any one or more of the persons, who owned the property before the change;

(c) a notice for the purposes of sub-section (2) in respect of the change in ownership or interests was at any time, whether before or after the commencement of the Income Tax Laws Amendment Act 1981, given to the Commissioner; and

(d) the amount or value of that consideration substantially exceeds the amount or value of the consideration that might reasonably be expected to have been received or receivable by the person or persons referred to in paragraph (b) in connection with the change in ownership or interests if the value of the property, immediately before the change, had been the value applicable in accordance with sub-section (2),

then, notwithstanding sub-section (2), the notice does not have any effect to the extent to which the notice is in respect of that change in ownership or interests.’.”.

Losses of previous years incurred in engaging in primary production

12. Section 80aa of the Principal Act is amended—

(a) by omitting from sub-section (4) “sub-section (9)” and substituting “sub-sections (9) and (10)”; and

(b) by adding at the end thereof the following sub-section:

“(10) For the purpose of determining whether a deduction is allowable to a taxpayer under sub-section (4) in respect of the year of income that commenced on 1 July 1980 or in respect of a subsequent year of income and for the purpose of ascertaining the amount of any such deduction, there shall be disregarded so much of the amount of any loss deemed to have been incurred by the taxpayer in engaging in primary production as would not have been deemed, for the purposes of this section, to have been incurred by the taxpayer in engaging in


primary production if the condition specified in sub-section 80 (6) were applicable for the purpose of determining whether the taxpayer is deemed, in any year of income, to have incurred a loss in engaging in primary production and in determining the amount of any such loss.”.

Deduction under Subdivision to be in addition to certain other deductions

13. Section 82am of the Principal Act is amended—

(a) by inserting in sub-section (2) “70a,” after “section”; and

(b) by adding at the end thereof the following sub-section:

“(4) A deduction under this Subdivision is not allowable in respect of expenditure in respect of a unit of property if a deduction in respect of depreciation of the unit of property has been allowed or is allowable in accordance with section 57aj.”.

Deduction under Subdivision to be in addition to certain other deductions

14. Section 82ej of the Principal Act is amended by inserting in sub-section (2) “70a,” after “section”.

Interpretation

15. (1) Section 82kh of the Principal Act is amended—

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

“‘consumable supplies’ means property other than—

(a) trading stock; or

(b) choses in action;

“‘exempt business’ means a business the income (if any) from which would, but for sub-section 77 (3), be exempt income;”;

(b) by inserting after the definition of “expected tax saving” in sub-section (1) the following definitions:

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

“‘market research’ means—

(a) the undertaking of research to ascertain the location, extent, value or other characteristics of the market, or the potential market, for goods or services; and

(b) the provision of information, advice or assistance in connection with the marketing of particular goods or services or of goods or services generally;”;

(c) by omitting “or” (last occurring) from paragraph (e) of the definition of “relevant expenditure” in sub-section (1);


(d) by adding at the end of the definition of “relevant expenditure” in sub-section (1) the following paragraphs:

“(g) a loss or outgoing incurred by the taxpayer in respect of—

(i) the production, marketing or distribution of a film; or

(ii) the acquisition of a copyright subsisting in a film,

to the extent to which a deduction would, apart from section 82kl, be allowable to the taxpayer under section 51 in respect of the loss or outgoing;

“(h) expenditure incurred by the taxpayer in respect of a unit of industrial property, being a unit of industrial property that relates to copyright subsisting in a film, to the extent to which the amount of that expenditure is taken into account, or would, apart from sub-sections 124r (2) and (3), be taken into account, in calculating the residual value of the unit of industrial property in ascertaining whether, apart from section 82kl, a deduction would be allowable to the taxpayer under section 124m or 124n in respect of the residual value of the unit of industrial property;

“(j) a loss incurred by the taxpayer in a year of income in carrying on an exempt business in Australia to the extent to which a deduction would, apart from section 82kl, be allowable to the taxpayer under section 77 in respect of the loss;

“(k) a loss or outgoing incurred by the taxpayer in the purchase of consumable supplies to the extent to which a deduction would, apart from section 82kl, be allowable to the taxpayer under section 51 in respect of the loss or outgoing;

“(m) a loss or outgoing incurred by the taxpayer in respect of market research to the extent to which a deduction would, apart from section 82kl, be allowable to the taxpayer under section 51 in respect of the loss or outgoing;

“(n) expenditure incurred by the taxpayer in respect of the acquisition of a unit of industrial property, being a licence under a copyright subsisting in computer software, to the extent to which the amount of that expenditure is taken into account, or would, apart from sub-section 124r (3) be taken into account, in calculating the residual value of the unit of industrial property in ascertaining whether, apart from section 82kl, a deduction would be allowable to the taxpayer under section 124m or 124n in respect of the residual value of the unit of industrial property;

(o) a loss or outgoing or expenditure incurred by the taxpayer by way of commission for collecting assessable income of the taxpayer to the extent to which a deduction would, apart from section 82kl, be allowable to the taxpayer under section 51 or 64 in respect of the loss or outgoing or the expenditure;


“(p) a loss or outgoing incurred by the taxpayer in respect of the growing, care or supervision of trees on behalf of the taxpayer to the extent to which a deduction would, apart from section 82kl, be allowable to the taxpayer under section 51 in respect of the loss or outgoing;

“(q) a loss or outgoing incurred by the taxpayer for the purpose of increasing the value of shares in a company, being shares held or beneficially owned by the taxpayer as trading stock, to the extent to which a deduction would, apart from section 82kl, be allowable to the taxpayer under section 51 in respect of the loss or outgoing; or

“(r) a loss or outgoing incurred by the taxpayer in respect of—

(i) the production by another person of a master sound recording; or

(ii) the procuration of the production by another person of a master sound recording,

to the extent to which a deduction would, apart from section 82kl, be allowable to the taxpayer under section 51 in respect of the loss or outgoing;”;

(e) by adding at the end of sub-section (1) the following definition:

“;‘unit of industrial property’ has the same meaning as in Division 10b.”;

(f) by omitting sub-section (1ab) and substituting the following subsections:

“(1ab) A reference in sub-section 82kl (2), and a reference in section 80 in relation to this Subdivision, to the incurring by a taxpayer of a loss or outgoing shall be read as including a reference to—

(a) the incurring by a taxpayer of a bad debt; and

(b) the incurring by a taxpayer of a loss for the purposes of section 77.

“(1ac) In this Subdivision—

(a) a reference to a copyright subsisting in a film shall be read as including a reference to—

(i) a licence under a copyright subsisting in a film; and

(ii) an interest, whether at law or in equity, in respect of a copyright, or in respect of a licence under a copyright, subsisting in a film; and

(b) a reference to a licence under a copyright subsisting in computer software shall be read as including a reference to an interest, whether at law or in equity, in a licence under a copyright subsisting in computer software.

“(1ad) A reference in this Subdivision to a deduction being allowed or allowable or not being allowed or allowable in respect of relevant expenditure to which paragraph (h) or (n) of the definition of ‘relevant


expenditure’ in sub-section (1) applies shall be read as a reference to a deduction being allowed or allowable or not being allowed or allowable, as the case may be, under section 124m or 124n in respect of the residual value of a unit of industrial property where that residual value would be calculated by reference to that relevant expenditure.”;

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

“(1fb) For the purposes of the application of sub-section (1f) in relation to an amount of relevant expenditure to which paragraph (j) of the definition of ‘relevant expenditure’ in sub-section (1) applies, any benefit obtained by the taxpayer in relation to the incurring by the taxpayer of any loss or outgoing or expenditure that is taken into account in determining the amount of the relevant expenditure shall be taken to be a benefit obtained by the taxpayer in relation to that relevant expenditure being incurred.”;

(h) by omitting from paragraph (1g) (e) “and”;

(j) by adding at the end of sub-section (1g) the following paragraphs:

“; (g) in a case where the relevant expenditure was incurred by the taxpayer in respect of the production, marketing or distribution of a film or the acquisition of a copyright subsisting in a film and is relevant expenditure to which paragraph (g) of the definition of ‘relevant expenditure’ in sub-section (1) applies— the production, marketing or distribution of the film, or the acquisition of the copyright by the taxpayer, as the case may be;

“(h) in a case where the relevant expenditure was incurred by the taxpayer in respect of a unit of industrial property, being a unit of industrial property that relates to copyright subsisting in a film, and is relevant expenditure to which paragraph (h) of the definition of ‘relevant expenditure’ in sub-section (1) applies—the ownership by the taxpayer of the unit of industrial property;

“(j) in a case where the relevant expenditure is a loss incurred by the taxpayer in carrying on an exempt business—any benefit that—

(i) is obtained by the taxpayer as a result of the incurring by the taxpayer of a loss or outgoing or expenditure that is taken into account in determining the amount of the loss incurred by the taxpayer in carrying on the exempt business; and

(ii) in the opinion of the Commissioner, would be obtained if the loss or outgoing or expenditure, as the case may be, had been incurred by reason of, as a result of or as part of an agreement other than a tax avoidance agreement;

“(k) in a case where the relevant expenditure was incurred by the taxpayer in the purchase of consumable supplies—the acquisition of those consumable supplies by the taxpayer;


“(m) in a case where the relevant expenditure was incurred by the taxpayer in respect of market research—the undertaking of the research, or the provision of the information, advice or assistance, in respect of which the relevant expenditure was incurred;

“(n) in a case where the relevant expenditure was incurred by the taxpayer in respect of the acquisition of a unit of industrial property, being a licence under a copyright subsisting in computer software—the acquisition by the taxpayer of the unit of industrial property;

“(o) in a case where the relevant expenditure was incurred by the taxpayer by way of commission for collecting assessable income of the taxpayer—the collection on behalf of the taxpayer of assessable income of the taxpayer;

“(p) in a case where the relevant expenditure was incurred by the taxpayer in respect of the growing, care or supervision of trees on behalf of the taxpayer—the growing, care or supervision of the trees on behalf of the taxpayer;

“(q) in a case where the relevant expenditure was incurred by the taxpayer for the purpose of increasing the value of shares in a company, being shares held or beneficially owned by the taxpayer as trading stock—the increase in the value of those shares; and

“(r) in a case where the relevant expenditure was incurred by the taxpayer in respect of the production of, or the procuration of the production of, a master sound recording—any amount payable to the taxpayer in respect of the master sound recording, being an amount that, in the opinion of the Commissioner, would be payable to the taxpayer as a result of the incurring by the taxpayer of the relevant expenditure if that expenditure had been incurred by reason of, as a result of or as part of an agreement other than a tax avoidance agreement.”;

(k) by inserting after sub-section (1jb) the following sub-sections:

“(1jc) For the purposes of the application of sub-section (1h) in relation to an amount of relevant expenditure incurred by a taxpayer, being relevant expenditure to which paragraph (j) of the definition of ‘relevant expenditure’ in sub-section (1) applies, a reference in paragraph (1h) (b) to the acquisition by the taxpayer or an associate of the taxpayer, in relation to that relevant expenditure being incurred, of the right to recover a debt shall be read as including a reference to the acquisition by the taxpayer or an associate of the taxpayer, in relation to the incurring by the taxpayer of a loss or outgoing or expenditure that is taken into account in determining the amount of the relevant expenditure, of such a right.

(1jd) For the purposes of the application of sub-section (1j) in relation to an amount of relevant expenditure incurred by a taxpayer, being relevant expenditure to which paragraph (j) of the definition of


‘relevant expenditure’ in sub-section (1) applies, a reference in paragraph (1j) (b) to a debt becoming owing, or having become owing, by the taxpayer or an associate of the taxpayer in relation to that relevant expenditure being incurred, shall be read as including a reference to a debt becoming owing, or having become owing, by the taxpayer or an associate of the taxpayer in relation to the incurring by the taxpayer of a loss or outgoing or expenditure that is taken into account in determining the amount of the relevant expenditure.”;

(m) by omitting from paragraph (1l) (e) “and”;

(n) by adding at the end of sub-section (1l) the following paragraphs:

“; (g) in a case where paragraph (g) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same film;

“(h) in a case where paragraph (h) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same film;

“(j) in a case where paragraph (j) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in carrying on the same business;

“(k) in a case where paragraph (k) of the defination of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in the purchase of the same property;

“(m) in a case where paragraph (m) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same market research;

“(n) in a case where paragraph (n) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same unit of industrial property;

“(o) in a case where paragraph (o) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same source of assessable income;

“(p) in a case where paragraph (p) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in respect of trees on the same parcel of land;

“(q) in a case where paragraph (q) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same shares; and


“(r) in a case where paragraph (r) of the definition of ‘relevant expenditure’ in sub-section (1) applies in relation to each of those amounts—those amounts were payable to the same person.”; and

(o) by omitting sub-section (1p) and substituting the following sub-sections:

“(1p) For the purposes of this Subdivision, any benefit that has been obtained by an associate of a taxpayer by reason of, as a result of or as part of a tax avoidance agreement, being a benefit that was obtained in relation to the incurring by the taxpayer, by reason of, as a result of or as part of that tax avoidance agreement, of relevant expenditure, not being relevant expenditure to which sub-section (1q) or (1r) applies, shall be taken to be a benefit that was obtained by the taxpayer by reason of that tax avoidance agreement and in relation to that relevant expenditure being incurred by the taxpayer.

“(1q) For the purposes of this Subdivision, any benefit that has been obtained by an associate of a taxpayer by reason of, as a result of or as part of a tax avoidance agreement, being a benefit that was obtained in relation to—

(a) the incurring by the taxpayer, by reason of, as a result of or as part of that tax avoidance agreement, of relevant expenditure to which paragraph (f) of the definition of ‘relevant expenditure’ in sub-section (1) applies; or

(b) the making by the taxpayer, by reason of, as a result of or as part of that tax avoidance agreement, of the loan in respect of which relevant expenditure to which that paragraph applies was incurred,

shall be taken to be a benefit that was obtained by the taxpayer by reason of that tax avoidance agreement and in relation to the relevant expenditure being incurred by the taxpayer or that loan being made by the taxpayer, as the case may be.

“(1r) For the purposes of this Subdivision, any benefit that has been obtained by an associate of a taxpayer by reason of, as a result of or as part of a tax avoidance agreement, being a benefit that was obtained in relation to—

(a) the incurring by the taxpayer, by reason of, as a result of or as part of that tax avoidance agreement, of a loss to which paragraph (j) of the definition of ‘relevant expenditure’ in sub-section (1) applies; or

(b) the incurring by the taxpayer, by reason of, as a result of or as part of that tax avoidance agreement, of a loss or outgoing or expenditure that is taken into account in determining the amount of any relevant expenditure to which that paragraph applies,

shall be taken to be a benefit that was obtained by the taxpayer by reason of that tax avoidance agreement and in relation to the relevant


expenditure being incurred by the taxpayer or that loss or outgoing or expenditure being incurred by the taxpayer, as the case may be.”.

(2) Subject to sub-section (3), the amendments made by sub-section (1) apply in relation to a loss or outgoing or expenditure incurred after 24 September 1978.

(3) The amendments made by sub-section (1) apply in relation to a loss of the kind referred to in paragraph (j) of the definition of “relevant expenditure” in sub-section 82kh (1) of the Income Tax Assessment Act 1936 if and only if—

(a) the loss was incurred in the year of income in which 25 September 1978 occurred and was not calculated in whole or in part by reference to a loss or outgoing or expenditure that was incurred before 25 September 1978; or

(b) the loss was incurred in a subsequent year of income.

(4) Where—

(a) in the making of an assessment, a deduction has not been allowed to a taxpayer in respect of a loss or outgoing or expenditure to which paragraph (g), (h), (j), (k), (m), (n), (o), (p), (q) or (r) of the definition of “relevant expenditure” in sub-section 82kh (1) of the Income Tax Assessment Act 1936 applies;

(b) on or before the date of commencement of this section, the taxpayer has posted to or lodged with the Commissioner an objection in writing against the assessment; and

(c) within 60 days after the date of commencement of this section, the taxpayer posts to or lodges with the Commissioner an application in writing to amend the objection to include in the grounds of objection the ground that section 82kl of the Income Tax Assessment Act 1936 does not operate to deem a deduction not to be allowable to the taxpayer in respect of that loss or outgoing or that expenditure,

that ground of objection shall, for all purposes of the Income Tax Assessment Act 1936, be taken to be stated in the taxpayer’s objection.

16. After Subdivision D of Division 3 of Part III of the Principal Act the following Subdivision is inserted:

“Subdivision E—Deductions for expenditure in respect of home insulation

Interpretation

“82km. (1) In this Subdivision, unless the contrary intention appears—

‘dwelling’ means—

(a) a unit of accommodation constituted by, or contained in, a building in Australia, being a unit that consists, in whole or in substantial part, of residential accommodation; or

(b) a building or part of a building in Australia that is in the course of construction and which, when completed, will constitute a unit of accommodation that consists in whole or in substantial part, of residential accommodation;


‘install in’ includes affix to;

‘stratum unit’, in relation to a dwelling, means a unit on a unit plan registered under a law of a State or Territory that provides for the registration of titles of a kind known as unit titles or strata titles, being a unit that comprises—

(a) a part of a building containing the dwelling, being a part consisting of a flat or home unit; or

(b) a part of a parcel of land, being a part on which the building containing the dwelling is constructed, or is being constructed;

‘taxpayer’ means a person (other than a company) who is a resident of Australia;

‘thermal insulation material’, in relation to a dwelling, means any material or substance installed in, or to be installed in, the dwelling primarily and principally for the purpose of reducing the transfer of heat between the interior of the dwelling and the exterior of the dwelling but does not include—

(a) any material or substance the whole or a part of which performs, or is to perform, a structural or decorative function in connection with the dwelling; or

(b) any material or substance that is used, or is to be used, in connection with a material or substance of the kind referred to in paragraph (a).

“(2) For the purposes of this Subdivision—

(a) where—

(i) a person acquires, holds or held an estate in fee simple in land or in a stratum unit or 2 or more persons acquire, hold or held such an estate in land or in a stratum unit as joint tenants or tenants in common;

(ii) a person acquires, holds or held an interest in land or in a stratum unit as lessee or licensee, or 2 or more persons acquire, hold or held jointly an interest in land or in a stratum unit as lessees or licensees, under a lease or licence, and the Commissioner is satisfied that the lease or licence gives or gave reasonable security of tenure to the lessee or licensee, or to the lessees or licensees, for a period of, or for periods aggregating, not less than 10 years ;

(iii) a person acquires, holds or held an interest in land or in a stratum unit as purchaser of an estate in fee simple in the land or in the stratum unit, or 2 or more persons acquire, hold or held an interest in land or in a stratum unit as purchasers of such an estate in the land or in the stratum unit as joint tenants or tenants in common, under an agreement that provides or provided for payment of the purchase price, or a part of the purchase price, to be made at a future time or by instalments ; or


(iv) a person acquires, holds or held an interest in land or in a stratum unit as purchaser, or 2 or more persons acquire, hold or held jointly an interest in land or in a stratum unit as purchasers, of the right to be granted a lease of the land or of the stratum unit under an agreement that provides or provided for payment of the purchase price, or a part of the purchase price, for the lease to be made at a future time or by instalments and the Commissioner is satisfied that the lease will give or gave reasonable security of tenure to the lessee or lessees for a period of, or for periods aggregating, not less than 10 years,

that person or those persons shall be taken to acquire or hold or to have held, as the case may be, a prescribed interest in that land or in that stratum unit, as the case requires; and

(b) where a person acquires, holds or held, or 2 or more persons acquire, hold or held jointly, a right of occupancy of a dwelling, being a flat or home unit, arising by virtue of the acquiring or holding of shares, or by virtue of a contract to purchase shares, in a company that—

(i) owns or owned the building that contains the flat or home unit; or

(ii) in a case where the building containing the dwelling is in the course of construction—will own that building,

that person, or those persons, as the case requires, shall be taken to acquire or hold, or to have held, as the case may be, a proprietary right in respect of the dwelling.

“(3) For the purposes of this Subdivision, a person shall be deemed to acquire or hold, or to have held, a relevant interest in a dwelling if the person acquires, holds or held, whether alone or together with another person or other persons—

(a) a prescribed interest in the land on which the building constituting or containing the dwelling is constructed or is being constructed or was constructed, as the case may be;

(b) a prescribed interest in a stratum unit in relation to the dwelling; or

(c) if the dwelling is a flat or home unit—a proprietary right in respect of the dwelling.

“(4) In this Subdivision, a reference to an amount paid by a taxpayer in respect of thermal insulation material in relation to a dwelling includes a reference to an amount paid by the taxpayer in respect of the cost of installing the thermal insulation material in the dwelling.

“(5) For the purposes of this Subdivision, a reference to the spouse of a taxpayer is a reference to—

(a) the husband or wife of the taxpayer other than a person living separately and apart from the taxpayer; or


(b) a person living with the taxpayer as the husband or wife of the taxpayer on a bona fide domestic basis although not legally married to the taxpayer.

Payments to which Subdivision applies

“82kn. (1) Subject to this Subdivision, this Subdivision applies to an amount paid by a taxpayer in a year of income in respect of thermal insulation material where—

(a) at the time when the payment was made—

(i) that thermal insulation material was installed in a dwelling; or

(ii) the taxpayer intended that the thermal insulation material be installed in a dwelling;

(b) at the time when the payment was made, the taxpayer, or the spouse of the taxpayer at that time, held a relevant interest in the dwelling;

(c) either of the following conditions is applicable:

(i) the taxpayer or his spouse commenced to construct the dwelling on or after 1 October 1980; or

(ii) neither the taxpayer nor the person who was the spouse of the taxpayer at the time when the payment was made—

(a) held a relevant interest in the dwelling before 1 October 1980; or

(b) acquired a relevant interest in the dwelling on or after that date in pursuance of a contract entered into before that date; and

(d) at the time when the payment was made—

(i) the taxpayer used the dwelling as his sole or principal residence; or

(ii) the taxpayer intended to use the dwelling as his sole or principal residence.

“(2) This Subdivision does not apply to an amount paid by a taxpayer in respect of thermal insulation material in relation to a dwelling if the payment is made in pursuance of a contract that was entered into after the time when the thermal insulation material was installed in the dwelling.

“(3) This Subdivision does not apply to an amount paid by a taxpayer in respect of thermal insulation material in relation to a dwelling if—

(a) at a time before the payment was made, another dwelling was used by the taxpayer as his sole or principal residence in Australia; and

(b) at the time mentioned in paragraph (a), the taxpayer, or a person who was the spouse of the taxpayer at that time, held a relevant interest in the other dwelling.

“(4) This Subdivision does not apply to an amount paid by a taxpayer in respect of thermal insulation material in relation to a dwelling where, if the


amount had been paid by a person who was the spouse of the taxpayer at the time when the payment was made, this Subdivision would not have applied to that amount, in relation to that spouse, by reason of sub-section (3).

“(5) This Subdivision does not apply, and shall be deemed never to have applied, to an amount paid by a taxpayer in respect of thermal insulation material in relation to a dwelling if—

(a) at the time when the payment was made, the thermal insulation material was not installed in the dwelling; and

(b) the thermal insulation material was disposed of by the taxpayer, or was used by the taxpayer for any purpose, without having been installed in the dwelling.

“(6) This Subdivision does not apply, and shall be deemed never to have applied, to an amount paid by a taxpayer in respect of thermal insulation material in relation to a dwelling if—

(a) at the time when the payment was made, the taxpayer did not use the dwelling as his sole or principal residence; and

(b) at any time after the payment was made and without the dwelling having been used by the taxpayer as his sole or principal residence—

(i) the taxpayer or the spouse of the taxpayer sold or otherwise disposed of the dwelling;

(ii) the taxpayer or the spouse of the taxpayer used the dwelling for any purpose not being use of the dwelling as his or her sole or principal residence or a use related to the use of the dwelling as his or her sole or principal residence;

(iii) the taxpayer used another dwelling as his sole or principal residence, being another dwelling in which the taxpayer or the spouse of the taxpayer had a relevant interest; or

(iv) the spouse of the taxpayer used another dwelling as his or her sole or principal residence, being another dwelling in which the taxpayer or the spouse had a relevant interest.

Recoupment of expenditure

“82ko. (1) This Subdivision does not apply, and shall be deemed never to have applied, to an amount paid by a taxpayer in respect of thermal insulation material in relation to a dwelling if—

(a) the taxpayer is recouped, or becomes entitled to be recouped, in respect of the amount paid, by the Commonwealth, by a State, by a Territory, by an authority constituted by or under a law of the Commonwealth, of a State or of a Territory, or by any other person; and

(b) the amount recouped or to be recouped is not, and will not be, included in the assessable income of the taxpayer of any year of income.

“(2) Where a taxpayer receives, or becomes entitled to receive, an amount that constitutes to an unspecified extent a recoupment of an amount paid by the taxpayer in respect of thermal insulation material, the Commissioner may,


for the purposes of sub-section (1), determine the extent to which the amount that the taxpayer receives or becomes entitled to receive constitutes a recoupment of the amount paid by the taxpayer.

“(3) For the purposes of this section, where a taxpayer receives, or becomes entitled to receive, an amount in respect of the disposal of a dwelling in which thermal insulation material is installed or receives or becomes entitled to receive an insurance recovery in respect of damage to, or destruction of, a dwelling in which thermal insulation material is installed, no part of the amount that the taxpayer receives or becomes entitled to receive shall be taken to be a recoupment in respect of any amount paid by the taxpayer in respect of that thermal insulation material.

Payment to be allowable deduction

“82kp. Subject to section 82kq, where this Subdivision applies to an amount paid by a taxpayer in a year of income, the amount is an allowable deduction from the assessable income of the taxpayer of the year of income.

Deduction reduced in certain circumstances

“82kq. Where—

(a) but for this section, a deduction would be allowable to a taxpayer under this Subdivision in respect of an amount paid by the taxpayer in respect of thermal insulation material in relation to a dwelling; and

(b) the dwelling was not wholly for use by the taxpayer as his sole or principal residence or a use related to the use by the taxpayer of the dwelling as his sole or principal residence,

the amount of that deduction shall be reduced by such amount as, in the opinion of the Commissioner, is fair and reasonable.

Non-arm’s length transactions

“82kr. Where—

(a) a taxpayer has paid an amount in respect of the purchase or installation of thermal insulation material, being a payment that is attributable to a transaction to which the taxpayer was a party;

(b) the Commissioner, having regard to any connection between any 2 or more parties to the transaction and to any other relevant circumstances, is satisfied that those parties were not dealing with each other at arm’s length in relation to the transaction; and

(c) the Commissioner is satisfied that the amount of the payment is greater than the amount (in this sub-section referred to as the ‘arm’s length amount’) that would have been paid by the taxpayer in respect of the purchase or installation of the thermal insulation material if the parties to the transaction had dealt with each other at arm’s length in relation to the transaction,


the arm’s length amount shall be taken, for the purposes of this Subdivision, to be the amount paid by the taxpayer in respect of the purchase or installation of the thermal insulation material.

Variation of contracts

“82ks. Where the Commissioner is satisfied that—

(a) a contract or arrangement was entered into by a taxpayer before 1 October 1980 for the acquisition of a relevant interest in a dwelling (in this sub-section referred to as the ‘original dwelling’);

(b) on or after that date, the taxpayer entered into a contract (whether with the same or another person) for the acquisition of a relevant interest in the original dwelling or in another dwelling intended by the taxpayer to be in lieu of the original dwelling; and

(c) the taxpayer entered into the contract referred to in paragraph (b) for the purpose, or for purposes that included the purpose, of obtaining a deduction under this Subdivision,

any relevant interest in the original dwelling or the other dwelling, as the case may be, that is acquired by the taxpayer shall, for the purposes of paragraph 82kn (1) (c), be taken to have been acquired in pursuance of a contract entered into before 1 October 1980.”.

Present entitlement arising from reimbursement agreement

17. (1) Section 100a of the Principal Act is amended—

(a) by inserting in sub-paragraph (3) (a) (i) “, being income that was paid to, or applied for the benefit of, the beneficiary before 6 March 1980” after “another trust estate”;

(b) by inserting in sub-paragraph (3) (b) (i) “, before 6 March 1980,” after “that”;

(c) by inserting after sub-section (3) the following sub-sections:

“(3a) Where—

(a) apart from this section, a beneficiary (in this sub-section referred to as the ‘trustee beneficiary’) of a trust estate is presently entitled to a share of the income of the trust estate in the capacity of a trustee of another trust estate (in this sub-section referred to as the ‘interposed trust estate’);

(b) apart from this sub-section, the trustee beneficiary would, by virtue of sub-section (1), be deemed not to be, and never to have been, presently entitled to that share or a part of that share of the income of the first-mentioned trust estate (which share or part is in this sub-section referred to as the ‘relevant trust income’); and

(c) apart from this section, a beneficiary of the interposed trust estate is or was, or beneficiaries of the interposed trust estate are or were, presently entitled, or deemed to be presently


entitled, to any income of the interposed trust estate (in this sub-section referred to as the ‘distributable trust income’) that is attributable to the relevant trust income,

sub-section (1) does not apply, and shall be deemed never to have applied, in relation to the trustee beneficiary, in relation to any part of the relevant trust income to which the distributable trust income is attributable.

“(3b) Where—

(a) apart from this section, a beneficiary (in this sub-section referred to as the ‘trustee beneficiary’) of a trust estate would, by reason that income of the trust estate was paid to, or applied for the benefit of, the trustee beneficiary, be deemed to be presently entitled to income of the trust estate in the capacity of a trustee of another trust estate (in this sub-section referred to as the ‘interposed trust estate’);

(b) apart from this sub-section, that income or a part of that income (which income or part is in this sub-section referred to as the ‘relevant trust income’) would, by virtue of sub-section (2), be deemed not to have been paid to, or applied for the benefit of, the trustee beneficiary; and

(c) apart from this section, a beneficiary of the interposed trust estate is or was, or beneficiaries of the interposed trust estate are or were, presently entitled, or deemed to be presently entitled, to any income of the interposed trust estate (in this sub-section referred to as the ‘distributable trust income’) that is attributable to the relevant trust income,

sub-section (2) does not apply, and shall be deemed never to have applied, in relation to the trustee beneficiary, in relation to any part of the relevant trust income to which the distributable trust income is attributable.

“(3c) A reference in paragraph (3a) (c) or (3b) (c) to a beneficiary of a trust estate shall be read as not including a reference to a beneficiary who is under a legal disability.”; and

(d) by inserting after sub-section (6) the following sub-sections:

“(6a) Where—

(a) sub-section (1) or (2) applies, or would but for sub-section (3a) or (3b) apply, in relation to a beneficiary of a trust estate in relation to a reimbursement agreement in relation to any income of the trust estate; and

(b) as part of, under or in connection with the reimbursement agreement, the beneficiary incurred or incurs a loss or outgoing after 5 March 1980 in respect of which a deduction has been allowed or would, but for this sub-section, be allowable,


then, notwithstanding any other provision of this Act, a deduction shall be deemed not to have been, or not to be, allowable, as the case may be, in respect of that loss or outgoing.

“(6b) Where sub-section (6a) deems a deduction not to have been, or not to be, allowable in respect of a loss or outgoing incurred by a taxpayer in the acquisition of property that, for the purposes of the application of this Act in relation to the taxpayer is or was trading stock, then, notwithstanding any other provision of this Act, the cost or cost price of that property, for the purposes of the application of Subdivision B of Division 2 in relation to that property in relation to the taxpayer, shall be taken to be, and at all times to have been, nil.”.

(2) The amendments made by sub-section (1) apply to assessments in respect of income of the year of income that commenced on 1 July 1979 and in respect of income of all subsequent years of income.

18. (1) After Division 9b of Part III of the Principal Act the following Division is inserted:

“Division 9C—Assessable income diverted under certain tax avoidance schemes

Interpretation

“121f. (1) In this Division, unless the contrary intention appears—

‘agreement’ means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings;

‘consideration’ includes a benefit of any kind;

‘diverted income’, in relation to a taxpayer, means all the amounts that are included under this Division in the diverted income of the taxpayer;

‘diverted trust income’, in relation to a trustee of a trust estate, means all the amounts that are included under this Division in the diverted trust income of the trust estate;

‘friendly society dispensary’ means a friendly society dispensary to which Division 9a applies;

‘income’ includes all amounts that, apart from the operation of the relevant exempting provisions, would be assessable income;

property’ includes—

(a) a chose in action;

(b) any estate, interest, right or power, whether at law or in equity, in or over property; and

(c) any right to receive income;


‘public company rate’ means the rate of tax payable in respect of the taxable income of a company that is not—

(a) a private company; or

(b) a friendly society dispensary;

‘relevant exempting provision’ means any of the following provisions:

(a) paragraphs 23 (d), (e), (ea), (eb), (ec), (f), (g), (h), (i), (j), (jaa), (ja), (jb) and (x);

(b) section 23f;

(c) section 112a; and

(d) any provision of an Act other than this Act to the effect that income of a particular person or body is not subject to taxation under any law of the Commonwealth or to the effect that a particular person or body is not subject to taxation under any law of the Commonwealth;

‘right to receive income’, in relation to a person, means a right of the person to have income that will or may be derived (whether from property or otherwise) paid to, or applied or accumulated for the benefit of, the person;

‘tax avoidance agreement’ means an agreement that was entered into after 24 June 1980 and was entered into or carried out 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 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 agreement had not been entered into or carried out;

‘taxpayer’ does not include a partnership.

“(2) In determining for the purposes of this Division whether an agreement is a tax avoidance agreement, no regard shall be had to a purpose that is a merely incidental purpose.

“(3) For the purposes of this Division, an agreement shall be taken to have been entered into or carried out for a particular purpose, or for purposes that included a particular purpose, if any of the parties to the agreement entered into or carried out the agreement for that purpose, or for purposes that included that purpose, as the case may be.

“(4) A reference in this Division to a person shall be read as including a reference to a person in the capacity of a trustee.

“(5) For the purposes of the application of this Division in relation to property acquired under a tax avoidance agreement, a reference to income that is derived from that property shall be read as including a reference to income that is derived from the disposal of that property, of any part of that property or of any interest in that property.


Diverted income and diverted trust income

“121g. (1) Where—

(a) a taxpayer, not being a taxpayer in the capacity of a trustee, has acquired property (in this sub-section referred to as the ‘relevant property’) under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;

(b) by reason that the taxpayer derives any income from the relevant property, an amount (in this sub-section referred to as the ‘relevant amount’) would, apart from the operation of the relevant exempting provisions, be included in the assessable income of the taxpayer of a year of income otherwise than under Division 5, section 97, section 99b or section 100;

(c) apart from this Division, the relevant amount would not be included in the assessable income of the taxpayer of the year of income; and

(d) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property,

the diverted income of the taxpayer of the year of income shall include the relevant amount.

“(2) Where—

(a) a taxpayer, not being a taxpayer in the capacity of a trustee, has acquired property (in this sub-section referred to as the ‘relevant property’), being an interest in a partnership, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;

(b) by reason of the ownership by the taxpayer of the relevant property, an amount (in this sub-section referred to as the ‘relevant amount’) would, apart from the operation of the relevant exempting provisions, be included, under Division 5, in the assessable income of the taxpayer of a year of income (in this sub-section referred to as the ‘relevant year of income’);

(c) apart from this Division, the relevant amount would not be included in the assessable income of the taxpayer of the relevant year of income; and

(d) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as


the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property,

the diverted income of the taxpayer of the relevant year of income shall include the relevant amount.

“(3) Where—

(a) a taxpayer, not being a taxpayer in the capacity of a trustee, has acquired property (in this sub-section referred to as the ‘relevant property’), being a beneficial interest in a trust estate, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;

(b) by reason of the ownership by the taxpayer of the relevant property, an amount (in this sub-section referred to as the ‘relevant amount’) would, apart from the operation of the relevant exempting provisions, be included, under Division 6, in the assessable income of the taxpayer of a year of income (in this sub-section referred to as the ‘relevant year of income’);

(c) apart from this Division, the relevant amount would not be included in the assessable income of the taxpayer of the relevant year of income; and

(d) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property,

the diverted income of the taxpayer of the relevant year of income shall include the relevant amount.

“(4) Where—

(a) a taxpayer, being a taxpayer in the capacity of a trustee of a trust estate, has acquired property (in this sub-section referred to as the ‘relevant property’) under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;


(b) by reason that the taxpayer derives any income from the relevant property, an amount (in this sub-section referred to as the ‘relevant amount’) would, apart from the operation of the relevant exempting provisions, be included in the assessable income of the trust estate of a year of income otherwise than under Division 5, section 97, section 99b or section 100;

(c) apart from this Division, the relevant amount would not be included in the assessable income of the trust estate of the year of income;

(d) if the taxpayer is the trustee of a provident, benefit, superannuation or retirement fund, the relevant amount is not taken into account in calculating the investment income of the fund of the year of income for the purposes of section 121d; and

(e) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property,

the diverted trust income of the trust estate of the year of income shall include the relevant amount.

“(5) Where—

(a) a taxpayer, being a taxpayer in the capacity of a trustee of a trust estate, has acquired property (in this sub-section referred to as the ‘relevant property’), being an interest in a partnership, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;

(b) by reason of the ownership by the taxpayer of the relevant property, an amount (in this sub-section referred to as the ‘relevant amount’) would, apart from the operation of the relevant exempting provisions, be included, under Division 5, in the assessable income of the trust estate of a year of income (in this sub-section referred to as the ‘relevant year of income’);

(c) apart from this Division, the relevant amount would not be included in the assessable income of the trust estate of the relevant year of income;

(d) if the taxpayer is the trustee of a provident, benefit, superannuation or retirement fund, the relevant amount is not taken into account in calculating the investment income of the fund of the year of income for the purposes of section 121d; and


(e) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property,

the diverted trust income of the trust estate of the relevant year of income shall include the relevant amount.

“(6) Where—

(a) a taxpayer, being a taxpayer in the capacity of a trustee of a trust estate (in this sub-section referred to as the ‘relevant trust estate’), has acquired property (in this sub-section referred to as the ‘relevant property’), being a beneficial interest in another trust estate, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;

(b) by reason of the ownership by the taxpayer of the relevant property, an amount (in this sub-section referred to as the ‘relevant amount’) would, apart from the operation of the relevant exempting provisions, be included, under section 97, 99b or 100, in the assessable income of the relevant trust estate of a year of income (in this sub-section referred to as the ‘relevant year of income’);

(c) apart from this Division, the relevant amount would not be included in the assessable income of the relevant trust estate of the relevant year of income;

(d) if the taxpayer is the trustee of a provident, benefit, superannuation or retirement fund, the relevant amount is not taken into account in calculating the investment income of the fund of the year of income for the purposes of section 121d; and

(e) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property,

the diverted trust income of the relevant trust estate of the relevant year of income shall include the relevant amount.


“(7) Where—

(a) a body, association, fund or organisation (in this sub-section referred to as the ‘exempt body’) has acquired property (in this sub-section referred to as the ‘relevant property’), being a beneficial interest in a trust estate, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;

(b) by reason that the exempt body is deemed, by sub-section 95a (2), to be presently entitled to any income of the trust estate of a year of income (in this sub-section referred to as the ‘relevant year of income’), the trustee of the trust estate is not liable to be assessed and to pay tax under sub-section 98 (2) in respect of the net income or a part of the net income (which net income or part is in this sub-section referred to as the ‘relevant amount’) of the trust estate of the relevant year of income; and

(c) so much of the amount or value of the consideration provided by the exempt body under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the exempt body of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the exempt body in respect of the acquisition of the relevant property if the exempt body were liable to pay tax, at the public company rate applicable for the financial year in which the exempt body acquired the relevant property, in respect of any income derived by the exempt body from the relevant property and any income to which the exempt body would, by the operation of sub-section 95a (2) in relation to the relevant property, be deemed to be presently entitled,

the diverted trust income of the trust estate of the year of income shall include the relevant amount.

“(8) Where—

(a) a deduction is allowable or deductions are allowable, in calculating the net income of a partnership or trust estate of a year of income, in respect of losses or outgoings (in this sub-section referred to as the ‘relevant losses or outgoings’) incurred under or in connection with a tax avoidance agreement;

(b) if no deduction were allowable, in calculating that net income, in respect of the relevant losses or outgoings and no relevant exempting provisions were applicable in relation to a taxpayer, an amount would be included in the assessable income of the taxpayer of a year of income by reason that the taxpayer owned an interest in the partnership or a beneficial interest in the trust estate or owned an interest in any other partnership or a beneficial interest in any other trust estate; and


(c) if the deduction or deductions were allowed, in calculating that net income, in respect of the relevant losses or outgoings and no relevant exempting provision were applicable in relation to the taxpayer—

(i) no amount would be included in the assessable income of the taxpayer of the year of income by reason that the taxpayer owned an interest in a partnership or a beneficial interest in a trust estate as mentioned in paragraph (b); or

(ii) an amount would be included in the assessable income of the taxpayer of the year of income by reason that the taxpayer owned an interest in a partnership or a beneficial interest in a trust estate as mentioned in paragraph (b) but the amount that would be so included in that assessable income would be less than the amount referred to in paragraph (b),

then, for the purposes of the application of sub-sections (2), (3), (5) and (6) in relation to the taxpayer in relation to the tax avoidance agreement, no deduction shall be allowed in respect of the relevant losses or outgoings in calculating the net income of the partnership or trust estate referred to in paragraph (a).

“(9) Where—

(a) a deduction is allowable or deductions are allowable, in calculating the net income (in this sub-section referred to as the ‘relevant net income’) of a partnership or trust estate of a year of income, in respect of losses or outgoings (in this sub-section referred to as the ‘relevant losses or outgoings’) incurred under or in connection with a tax avoidance agreement;

(b) if no deduction were allowable, in calculating the relevant net income, in respect of the relevant losses or outgoings, an amount would be included in the assessable income of a trust estate (in this sub-section referred to as the ‘relevant trust estate’) by reason that the trustee of the relevant trust estate owned an interest in the partnership or a beneficial interest in the trust estate referred to in paragraph (a) or owned an interest in any other partnership or a beneficial interest in any other trust estate; and

(c) if the deduction or deductions were allowed, in calculating the relevant net income, in respect of the relevant losses or outgoings—

(i) no amount would be included in the assessable income of the relevant trust estate of the year of income by reason that the trustee of the relevant trust estate owned an interest in a partnership or a beneficial interest in a trust estate as mentioned in paragraph (b); or

(ii) an amount would be included in the assessable income of the relevant trust estate of the year of income by reason that the trustee of the relevant trust estate owned an interest in a partnership or a beneficial interest in a trust estate as mentioned in


paragraph (b) but the amount that would be so included in that assessable income would be less than the amount referred to in paragraph (b),

then, in determining the relevant net income for the purposes of the application of sub-section (7) in relation to the tax avoidance agreement in relation to the relevant trust estate, no deduction shall be allowed in respect of the relevant losses or outgoings in calculating the relevant net income.

“(10) For the purposes of the application of sub-section (8) or (9), a reference to a deduction that is allowable in calculating the net income of a partnership shall be read as not including a reference to a deduction allowable to the partnership in respect of expenditure incurred in the acquisition by the partnership of trading stock where that expenditure is deemed to have been incurred by virtue of sections 36 and 36a and the amount of the expenditure deemed to have been incurred is determined in accordance with sub-section 36 (8).

“(11) In determining for the purposes of this section the amount or value of the consideration that might reasonably be expected to have been provided by a taxpayer in respect of the acquisition of property by the taxpayer if the taxpayer were liable to pay tax in respect of any income derived by the taxpayer from the property at the public company rate applicable for the financial year in which the taxpayer acquired the property, the possibility that the taxpayer would be entitled to a rebate of tax in respect of any of that income shall be disregarded.

“(12) In determining for the purposes of this section whether an amount would, apart from the operation of the relevant exempting provisions, be included in the assessable income of a taxpayer or a trust estate of a year of income, section 128d shall be disregarded.

“(13) For the purposes of this section, where—

(a) a taxpayer acquired property, being an interest in a trust estate or partnership, before the time when a tax avoidance agreement was entered into; and

(b) under the tax avoidance agreement, or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of the tax avoidance agreement, the amount of the share (in this subsection referred to as the ‘relevant share’) of the taxpayer of the income of the trust estate or partnership of any year of income was or is increased,

the following provisions apply:

(c) the property referred to in paragraph (a) shall be taken to have been acquired by the taxpayer under the tax avoidance agreement; and

(d) any consideration provided by the taxpayer in respect of the increase in the amount of the relevant share shall be taken to be consideration provided by the taxpayer in respect of the acquisiton of the property referred to in paragraph (a).


“(14) For the purposes of the application of this section in relation to the acquisition of property by a person under a tax avoidance agreement, the Commissioner may be satisfied that consideration provided by the person under or in connection with the tax avoidance agreement was provided by the person in respect of the acquisition of the property notwithstanding, in a case where the person acquired property from another person, that the consideration was not provided to that other person.

Assessment of diverted income and diverted trust income

“121h. (1) A taxpayer, not being a taxpayer in the capacity of a trustee of a trust estate, shall be assessed and is liable to pay tax, at the rate declared by the Parliament for the purposes of this Division, upon the diverted income of the taxpayer of the year of income.

“(2) A taxpayer in the capacity of a trustee of a trust estate shall be assessed and is liable to pay tax, at the rate declared by the Parliament for the purposes of this Division, upon the diverted trust income of the trust estate of the year of income.

“(3) Sub-section (2) applies notwithstanding section 121db.

Ascertainment of diverted income or diverted trust income deemed to be an assessment

“121j. The ascertainment of the amount of the diverted income or diverted trust income and of the tax payable thereon shall, for all purposes of this Act be deemed to be an assessment.

Application of International Agreements Act

“121k. For the purposes of sub-section 3 (6) and sections 15 and 16 of the Income Tax (International Agreements) Act 1953, any amount that is included in the diverted income or diverted trust income of a taxpayer of a year of income shall be deemed to be included in the assessable income of the taxpayer of the year of income.

Division applies notwithstanding exemption under other laws

“121l. This Division has effect notwithstanding anything contained in any law of the Commonwealth other than this Act.”.

(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income in which 24 June 1980 occurred and in respect of income of all subsequent years of income.

19. After section 122n of the Principal Act the following section is inserted:

Division not applicable where deduction allowable in accordance with section 57AJ

“122na. Notwithstanding any other provision of this Division, a deduction is not allowable, and shall be deemed never to have been allowable, under this Division to a taxpayer in respect of expenditure incurred by the taxpayer in respect of a unit of property if a deduction in respect of depreciation of the unit of property has been allowed, or is allowable, to the taxpayer in accordance with section 57aj.”.


20. After section 124an of the Principal Act the following section is inserted:

Division not applicable where deduction allowable in accordance with section 57aj

“124ana. Notwithstanding any other provision of this Division, a deduction is not allowable, and shall be deemed never to have been allowable, under this Division to a taxpayer in respect of expenditure incurred by the taxpayer in respect of a unit of property if a deduction in respect of depreciation of the unit of property has been allowed, or is allowable, to the taxpayer in accordance with section 57aj.”.

Liability to withholding tax

21. (1) Section 128b of the Principal Act is amended—

(a) by omitting from paragraph (3) (g) “or” (last occurring); and

(b) by adding at the end of sub-section (3) the following word and paragraph:

“; or (j) income in respect of which a taxpayer is liable to be assessed under Division 9c”.

(2) The amendments made by sub-section (1) apply to assessments in respect of income of the year of income in which 24 June 1980 occurred and in respect of income of all subsequent years of income.

Life insurance premiums, &c.

22. Section 159r of the Principal Act is amended by omitting paragraph (8) (a) and substituting the following paragraph:

“(a) the income derived by the fund during the year of income of the fund in which the amount is paid is exempt, or would but for Division 9c, be exempt, from tax by virtue of paragraph 23 (e) or (jaa) or is exempt, or would, but for section 121c and Division 9c, be exempt, from tax by virtue of paragraph 23 (ja); or”.

Amendment of assessments

23. Section 170 of the Principal Act is amended by omitting sub-section (10) and substituting the following sub-section:

“(10) Nothing in this section prevents the amendment, at any time, of an assessment for the purpose of giving effect to the provisions of section 23ab, 26aab, 31b, 31c, 36aaa or 36aa, sub-section 36a (8), 47 (2b), 51ac (7) or 51 ac (8), section 53h, sub-section 59 (2d), section 70a, sub-section 75b (4), section 75c, sub-section 75d (4), section 77c, 77d, 77e or 78a, Subdivision B of Division 3 of Part III, section 82d, Subdivision BB of Division 3 of Part III, section 82kj, 82kk or 82kl, Subdivision E of Division 3 of Part III, sub-section 82s (3) or 82sa (2), section 100a, 105aa or 105ab, Division 9c of Part III, sub-section 122b (2), section 122na or 122t, sub-section 123a (2), 123a (3) or 124ab (3), section 124ana or 124aq, Division 16c of Part III, sub-section 159r (4), 160ac (9) or 160ac (15), section 160aca, 160acb or 160acc or subsection 221yra (2).”.


Formal amendments

24. The Principal Act is amended as set out in the Schedule.

Arrangements to avoid the operation of sections 11 and 12

25. (1) Where—

(a) an amount (in this sub-section referred to as the “relevant amount”) is included in the assessable income of a taxpayer (in this sub-section referred to as the “recipient taxpayer”) of the year of income that commenced on 1 July 1980 (in this sub-section referred to as the “relevant year of income”);

(b) the relevant amount is a loss, outgoing or expenditure (which loss, outgoing or expenditure is in this sub-section referred to as the “relevant expenditure”) incurred (whether before or after the commencement of this section) to the recipient taxpayer by another taxpayer (in this sub-section referred to as the “associated taxpayer”);

(c) but for this sub-section, a deduction would be allowable to the associated taxpayer in relation to a year of income in respect of the whole or a part of the relevant expenditure;

(d) if the relevant amount were not included in the assessable income of the recipient taxpayer of the relevant year of income, the recipient taxpayer would be deemed to have incurred a loss in the relevant year of income;

(e) if, in determining whether the recipient taxpayer is deemed to have incurred a loss in the relevant year of income and in determining the amount of any such loss—

(i) the relevant amount were not included in the assessable income of the recipient taxpayer of the relevant year of income; and

(ii) the condition specified in sub-section 80 (6) of the Income Tax Assessment Act 1936, as amended and in force immediately after the commencement of this section, were taken to be applicable,

the recipient taxpayer would not be deemed to have incurred a loss in the relevant year of income or would be deemed to have incurred a loss in the relevant year of income of an amount less than the amount of the loss referred to in paragraph (d); and

(f) the associated taxpayer incurred the whole or a part of the relevant expenditure (which whole or part is in this sub-section referred to as the “prescribed relevant expenditure”) to the recipient taxpayer for the purpose, or for purposes that included the purpose, of wholly or partly preventing the operation of section 11 or 12 in relation to the recipient taxpayer or, if the recipient taxpayer is a partnership, in relation to a partner or partners in the partnership, by securing that the recipient taxpayer would not be deemed to have incurred a loss in the relevant year of income or would be deemed to have incurred a


loss in the relevant year of income of an amount less than the amount of the loss that the recipient taxpayer would be deemed to have incurred in the relevant year of income if an amount equal to the prescribed relevant expenditure were not included in the assessable income of the recipient taxpayer of the relevant year of income,

then, notwithstanding anything contained in the Income Tax Assessment Act 1936, a deduction is not allowable to the associated taxpayer in respect of any part of the prescribed relevant expenditure.

(2) Where—

(a) the value of the trading stock of a taxpayer that, but for this subsection, would be taken into account at the end of the year of income that commenced on 1 July 1980 (in this sub-section referred to as the “relevant year of income”) for the purposes of the Income Tax Assessment Act 1936 is greater than the value of that trading stock that would be taken into account at that time if the taxpayer had valued that trading stock in such a way that the value of that trading stock to be taken into account at that time would have been the lowest possible amount at which the value of that trading stock could be taken into account at that time in accordance with Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936;

(b) if the taxpayer had valued the trading stock of the taxpayer in such a way that the value of that trading stock to be taken into account at the end of the relevant year of income would have been the lowest possible amount at which the value of that trading stock could have been taken into account at that time in accordance with Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, the taxpayer would have been deemed to have incurred a loss in the relevant year of income;

(c) if, in determining whether the taxpayer is deemed to have incurred a loss in the relevant year of income and in determining the amount of any such loss—

(i) the value of the trading stock of the taxpayer to be taken into account at the end of the relevant year of income were the value referred to in paragraph (b); and

(ii) the condition specified in sub-section 80 (6) of the Income Tax Assessment Act 1936, as amended and in force immediately after the commencement of this section, were taken to be applicable,

the taxpayer would not be deemed to have incurred a loss in the relevant year of income or would be deemed to have incurred a loss in the relevant year of income of an amount less than the amount of the loss referred to in paragraph (b); and

(d) some or all of the trading stock was valued by the taxpayer in the way in which it was valued by the taxpayer for the purpose, or for purposes that included the purpose, of wholly or partly preventing the operation


of section 11 or 12 in relation to the taxpayer or, if the taxpayer is a partnership, in relation to a partner or partners in the partnership, by securing that the taxpayer would not be deemed to have incurred a loss in the relevant year of income or would be deemed to have incurred a loss in the relevant year of income of an amount less than the amount of the loss that the taxpayer would be deemed to have incurred in the relevant year of income if the trading stock of the taxpayer had been valued by the taxpayer at a lesser value,

then, notwithstanding anything contained in the Income Tax Assessment Act 1936, the value of the trading stock of the taxpayer to be taken into account at the end of the relevant year of income and at the commencement of the next succeeding year of income is—

(e) in a case to which paragraph (f) does not apply—the value referred to in paragraph (b); or

(f) if the taxpayer satisfies the Commissioner that, if the taxpayer had not valued any of the trading stock of the taxpayer for the purpose, or for purposes that included the purpose, mentioned in paragraph (d), the taxpayer might reasonably be expected to have valued the trading stock of the taxpayer in such a way that the value of the trading stock of the taxpayer to be taken into account at the end of the relevant year of income would be greater than the value of the trading stock referred to in paragraph (b)—that greater value.

(3) In sub-section (2)—

(a) a reference to trading stock shall be read as not including a reference to live stock; and

(b) a reference to the valuation of trading stock by a taxpayer shall be read as a reference to the exercise by the taxpayer of an option or options under section 31 of the Income Tax Assessment Act 1936 in relation to the trading stock of the taxpayer.

(4) A reference in the preceding provisions of this section (other than the reference in paragraph (1) (b) ), in relation to a taxpayer, to a loss shall be read as a reference to—

(a) in a case where the taxpayer is a partnership that is being treated as a taxpayer for the purposes of section 90 of the Income Tax Assessment Act 1936—a partnership loss for the purposes of section 92 of the Income Tax Assessment Act 1936; and

(b) in any other case—a loss for the purposes of section 80 or 80aa of the Income Tax Assessment Act 1936.

(5) Notwithstanding anything contained in the Income Tax Assessment Act 1936, the Commissioner may amend an assessment for the purpose of giving effect to this section if the amendment is made within 3 years after the date on which the tax became due and payable under the assessment, but nothing in this sub-section limits the power of the Commissioner to amend an assessment in accordance with the provisions of that Act.


PART III—AMENDMENTS OF THE INCOME TAX ASSESSMENT AMENDMENT ACT (No. 6) 1980

Principal Act

26. The Income Tax Assessment Amendment Act (No. 6) 19802 is in this Part referred to as the Principal Act.

Application of amendments made by sections 11 and 12

27. (1) Section 13 of the Principal Act is amended—

(a) by inserting “(not being units of property to which sub-section (2) applies)” after “units of property”; and

(b) by adding at the end thereof the following sub-section:

“(2) In relation to any unit of property that—

(a) is a road vehicle designed to carry more than 8 passengers; and

(b) is a unit of property to which paragraph 82af (2) (f) of the Income Tax Assessment Act 1936, as in force immediately before the commencement of this Act, applied by reason only of the unit of property being for use in, or primarily and principally in connection with, amusement or recreation,

Subdivision B of Division 3 of Part III of the Income Tax Assessment Act 1936 applies, and shall be deemed always to have applied, as if—

(c) the reference in paragraph 82ad (2) (a) of the Income Tax Assessment Act 1936 to 1 July 1976 were a reference to 1 July 1981;

(d) the reference in paragraph 82ad (2) (a) of the Income Tax Assessment Act 1936 to 8 July 1976 were a reference to 8 July 1981;

(e) sub-paragraph 82af (2) (f) (i) of the Income Tax Assessment Act 1936, as in force immediately before the commencement of this Act, had not been enacted; and

(f) there were inserted after section 82ap of the Income Tax Assessment Act 1936 the following section:

“82apa. (1) Where—

(a) before 28 November 1980, a taxpayer being a leasing company entered into an agreement (in this sub-section referred to as the ‘original agreement’) with another person (in this sub-section referred to as the ‘lessee’) under which the lessee agreed to take property on lease for a period of less than 4 years;

(b) the agreement was in force on 27 November 1980; and

(c) on or before 30 June 1981 or such later date as the Commissioner determines, the lessee agreed or agrees to take the property on lease for a further period commencing at the expiration of the period referred to in


paragraph (a) and ending not earlier than 4 years after the commencement of the period referred to in that paragraph,

then, for the purposes of this Subdivision, the lessee shall be deemed to have agreed to take the property under the original agreement for a period of not less than 4 years.

“(2) Where—

(a) on or after 1 January 1976 and before 28 November 1980, a taxpayer entered into an agreement with another person not being a leasing company under which the taxpayer agreed to take property on lease;

(b) the agreement was in force on 27 November 1980; and

(c) on or before 30 June 1981 or such later date as the Commissioner determines, the taxpayer entered into an agreement with that other person for the acquisition of that property by the taxpayer,

then, in determining for the purposes of this Subdivision whether expenditure in respect of the acquisition of that property by the taxpayer was incurred in respect of the acquisition of a new unit of property, regard shall not be had to any use or holding for use of that property by the taxpayer on or after 1 January 1976 and before the date on which the agreement referred to in paragraph (c) was entered into.

“(3) Where—

(a) before 28 November 1980, a taxpayer entered into an agreement with another person being a leasing company under which the taxpayer agreed to take property on lease for a period of less than 4 years;

(b) the agreement was in force on 27 November 1980; and

(c) on or before 30 June 1981 or such later date as the Commissioner determines, the taxpayer entered into an agreement with that other person for the acquisition of that property by the taxpayer,

then, in determining for the purposes of this Subdivision whether expenditure in respect of the acquisition of that property by the taxpayer was incurred in respect of the acquisition of a new unit of property, regard shall not be had to any use or holding for use of that property by the taxpayer on or after 1 January 1976 and before the date on which the agreement referred to in paragraph (c) was entered into.

“(4) Where sub-section (2) or (3) applies in relation to a unit of property acquired by a taxpayer, section 82ab applies to expenditure incurred by the taxpayer in respect of the acquisition of the unit of property as if the unit of property had been


acquired by the taxpayer under a contract entered into at the time when the agreement referred to in paragraph (2) (a) or (3) (a), as the case requires, was entered into.”.

(2) Nothing in section 170 of the Income Tax Assessment Act 1936 prevents the amendment of an assessment for the purpose of giving effect to sub-section (1) of this section.

 


SCHEDULE                                          Section 24

FORMAL AMENDMENTS

Provision Amended

Omit—

Substitute—

Section 2.....................................

“the first column”

“column 1”

 

“the second column”

“column 2”

Section 3.....................................

“sub-section (2) of section 52b”

“sub-section 52b (2)”

Section 4.....................................

“31st July, 1931”

“31 July 1931”

Sub-section 6 (1) (definition of “apportionable deductions”)

“paragraph (a) or (b) of sub-section (1) of section 78”

“paragraph 78 (1) (a) or (b)”

Sub-section 6 (1) (definition of “State income tax law”)

“sub-section (8) of section 10, section 13 and sub-section (4) of section 15”

“sub-section 10 (8), section 13 and sub-section 15 (4)”

Sub-section 6 (4)........................

“the next succeeding sub-section”

“sub-section (5)”

Sub-section 6 (5)........................

“the last preceding sub-section”

“sub-section (4)”

Sub-section 6aa (2)....................

“the last preceding sub-section”

“sub-section (1)”

 

“sub-section (1) of the last preceding section”

“sub-section 6 (1)”

Sub-section 6aa (3)....................

“18th October, 1968,”

“18 October 1968”

Paragraph 6a (2) (b)...................

“the last preceding paragraph”

“paragraph (a)”

Paragraph 6b (2) (a)....................

“19th October, 1967”

“19 October 1967”

Sub-section 6b (2)......................

“two”

“2”

Sub-section 6ba (1)....................

“sub-section (23) of section 79”

“sub-section 79 (23)”

Paragraph 6ba (3) (a)..................

“sub-section (1) of section 31”

“sub-section 31 (1)”

Sub-section 6c (1)......................

“1st July, 1968,”

“1 July 1968”

Sub-section 6c (2)......................

“paragraph (r) of section 23” “the next two succeeding subsections”

“paragraph 23 (r)” “sub-sections (3) and (4)”

Sub-section 6c (3)......................

“the last preceding sub-section”

“sub-section (2)”

Sub-section 6c (6)......................

“paragraph (a) of sub-section (1) and paragraph (b) of sub-section (3)”

“paragraphs (1) (a) and (3) (b)”

Sub-section 6c (7)......................

“paragraph (b) of sub-section (1)

“paragraphs (1) (b) and (4) (b)”

 

and paragraph (b) of sub-section (4)”

 

Paragraph 6d (1) (a)....................

“two”

“2”

 

“three”

“3”

Paragraph 6d (1) (b)...................

“eighteen”

“18”

Sub-section 6d (2)......................

“the last preceding sub-section”

“sub-section (1)”

Sub-section 6d (5)......................

“two”

“2”

Sub-section 16 (5)......................

“the last preceding sub-section”

“sub-section (4)”

Paragraph 16 (5c) (a)..................

“the last preceding sub-section”

“sub-section (5b)”

Sub-section 16 (5d)....................

“the last preceding sub-section”

“sub-section (5c)”

 

“Five hundred dollars”

“$500”

 

“twelve”

“12”

Section 17...................................

“1st July, 1965,”

“1 July 1965”

Sub-section 18 (1)......................

“twelve”

“12”

 

“the thirtieth day of June”

“30 June”

Sub-paragraph 23 (ja) (i)............

“twenty”

“20”

Paragraph 23 (q).........................

“19th October, 1967”

“19 October 1967”

Paragraph 23 (za)........................

“28th August, 1964,

“28 August 1964”

Sub-section 23aa (1) (definition of “prescribed contract”)

“the last preceding paragraph”

“paragraph (a)”

Sub-section 23aa (1) (definition of “the Joint Defence Space Communications Station”)

“10th November, 1969,”

“10 November 1969”

Sub-section 23aa (1) (definition of “the Joint Defence Space Research Facility”)

“9th December, 1966,”

“9 December 1966”

Sub-section 23aa (1) (definition of “the Sparta Project”)

“30th March, 1966,”

“30 March 1966”

Sub-section 23aa (4)..................

“The last preceding sub-section”

“Sub-section (3)”

Sub-section 23ab (4)..................

“either of the last two preceding sub-sections”

“sub-section (2) or (3)”

Sub-section 23ab (6)..................

“paragraph (e) of section 26”

“paragraph 26 (e)”

 

“Two dollars”

“$2”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Sub-paragraph 23ab (7) (a) (ii)

“25 per centum”

“25%”

Sub-section 23ab (8)..................

“the last preceding sub-section”

“sub-section (7)”

Sub-section 23ab (11)................

“the last preceding sub-section”

“sub-section (10)”

Sub-paragraph 23ac (3) (b) (i)

“fourteen”

“14”

Paragraph 23ac (3) (c)................

“1st July, 1965,”

“1 July 1965”

Sub-section 23ac (4)..................

“1st July, 1965”

“1 July 1965”

Sub-section 23ac (6)..................

“either of the last two preceding sub-sections”

“sub-section (4) or (5)”

Sub-section 23ad (1) (subparagraph (b) (i) of the definition of “excepted payment”)

“paragraph (f) of section 4”

“paragraph 4 (f) “

“sub-section (1) of section 135d”

“sub-section 135d (1)”

“that section”

“section 135d”

“sub-section (6) or (7) of section 135t”

“sub-section 135t (6) or (7)”

Sub-section 23ad (1) (subparagraph (b) (ii) of the definition of “excepted payment”)

“sub-section (2) of section 85”

“sub-section 85 (2)”

Sub-section 23ad (1) (clause (b) (iii) (b) of the definition of “excepted payment”)

“sub-section (1a) of section 28”

“sub-section 28 (1a)”

Sub-section 23ad (1) (paragraph (c) of the definition of “excepted payment”)

“sub-section (1) of section 135d”

“sub-section 135d (1)”

“that section”

“section 135d”

Sub-section 23ad (1) (paragraph (a) of the definition of “excepted pension”)

“paragraph (c) of section 4”

“paragraph 4 (c)”

“sub-section (1) of section 135d”

“sub-section 135d (1)”

“that section”

“section 135d”

Sub-section 23ad (1) (paragraph (c) of the definition of “excepted pension”)

“sub-section (2) of section 85”

“sub-section 85 (2)”

Sub-section 23ad (1) (subparagraph (d) (ii) of the definition of “excepted pension”)

“sub-section (1a) of section 28”

“sub-section 28 (1a)’’

Paragraph 23ad (3) (c)...............

“sub-section (2) of section 365”

“sub-section 365 (2)”

Paragraph 23ad (4) (b)...............

“sub-section (1) of section 8”

“sub-section 8 (1)”

Sub-section 23af (5)..................

“paragraph (c) of sub-section (3)”

“paragraph (3) (c)”

 

“paragraph (a), (b) or (d) of subsection (3)”

“paragraph (3) (a), (b) or (d)”

Paragraph 23 af (17) (a)

“paragraph (q) or (qa) of section 23”

“paragraph 23 (q) or (qa)”

Sub-section 23c (2)....................

“paragraph (o) of section 23”

“paragraph 23 (o)”

Sub-section 23d (1)....................

“30th June, 1968”

“30 June 1968”

Sub-section 23d (2)....................

“the last preceding sub-section”

“sub-section (1)”

Sub-section 23e (1)....................

“the next succeeding sub-section”

“sub-section (2)”

Sub-section 23e (2)....................

“The last preceding sub-section”

“Sub-section (1)”

Sub-section 23f (2).....................

“paragraph (jaa) of section 23”

“paragraph 23 (jaa)”

Paragraph 23 f (2) (e).................

“31st March, 1966”

“31 March 1966”

Paragraph 23f (2) (f)...................

“two”

“2”

Sub-section 23f (3).....................

“paragraph (a) of the last preceding sub-section”

“paragraph (2) (a)”

Sub-section 23f (4).....................

“sub-paragraph (iv) of paragraph (c) of sub-section (2)”

“sub-paragraph (2) (c) (iv)”

Sub-section 23f (5).....................

“paragraph (c) of the last preceding sub-section”

“paragraph (4) (c)”

Sub-section 23f (6).....................

“the last preceding sub-section”

“sub-section (5)”

Sub-section 23f (8).....................

“paragraph (f) of sub-section (2)”

“paragraph (2) (f)”

Sub-section 23f (9).....................

“paragraph (f) of sub-section (2)”

“paragraph (2) (f)”

Sub-section 23f (10)...................

“paragraph (f) of sub-section (2)” “two”

“paragraph (2) (f)” “2”

Sub-section 23f (11)...................

“paragraph (f) of sub-section (2)”

“paragraph (2) (f)”

Sub-section 23f (12)...................

“the last preceding sub-section”

“sub-section (11)”

Sub-section 23f (14)...................

“paragraph (b) of sub-section (11)”

“paragraph (11) (b)”

Sub-section 23f (15)...................

“the next three succeeding subsections”

“sub-sections (16), (17) and (18)”

Sub-section 23f (16)...................

“the last preceding sub-section”

“sub-section (15)”

Sub-section 23f (17)...................

“the last preceding sub-section”

“sub-section (16)”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Sub-section 23g (4)....................

“paragraph (a) of sub-section (3)”

“paragraph (3) (a)”

Section 24aa..............................

“Sub-paragraphs (vi) and (vii) of paragraph (c) of section 23”

“Sub-paragraphs 23 (c) (vi) and (vii)”

Paragraph 24aa (c).....................

“sub-paragraph (vii) of paragraph (c) of section 23”

“sub-paragraph 23 (c) (vii)”

Paragraph 24aa (d).....................

“paragraph (b) of sub-section (2)”

“paragraph (2) (b)”

Section 24a................................

“paragraph (d) of section 23”

“paragraph 23 (d)”

Paragraph 24c (b).......................

“sub-section (2) of section 7a”

“sub-section 7a (2)”

Paragraph 24d (1) (d).................

“two”

“2”

Sub-section 24d (4)....................

“paragraphs (d) and (e) of sub-section (1)”

“paragraphs (1) (d) and (e)”

Sub-section 24d (8)....................

“paragraph (b) or (c) of sub-section (1)”

“paragraph (1) (b) or (c)”

Sub-section 24d (9)....................

“paragraph (d) or (e) of sub-section (1)”

“paragraph (1) (d) or (e)”

Paragraph 24e (4) (a)..................

“two”

“2”

Sub-section 24f (2).....................

“sub-section (2) of section 7a”

“sub-section 7a (2)”

Paragraph 24g (1) (e)..................

“six”

“6”

Sub-section 24j (4).....................

“Sub-paragraph (i) of paragraph (b) of sub-section (3)”

“Sub-paragraph (3) (b) (i)”

Paragraph 24J (5) (a)..................

“paragraph (a) of sub-section (2)”

“paragraph (2) (a)”

Paragraph 24J (5) (b)..................

“paragraph (b) of sub-section (2)”

“paragraph (2) (b)”

Sub-section 24l (4b)..................

“paragraph (a) of sub-section (1) and paragraph (b) of sub-section (3)”

“paragraphs (1) (a) and (3) (b)”

Sub-section 24l (4c)..................

“paragraph (b) of sub-section (1) and paragraph (b) of sub-section (4)”

“paragraphs (1) (b) and (4) (b)”

Sub-section 24l (5)....................

“sub-section (2) of section 7a”

“sub-section 7a (2)”

Sub-section 24n (1) (definition of “prescribed company”)

“six”

“6”

Sub-section 24n (1) (definition of “year of income to which this section applies”)

“two”

“2”

Paragraph 26 (e).........................

“the last preceding paragraph”

“paragraph (d)”

Sub-paragraph 26 (f) (i)..............

“sub-section (1) of section 6”

“sub-section 6 (1)”

Section 26aaaa.........................

“paragraph (e) of section 26”

“paragraph 26 (e)”

Sub-section 26aaa (6)...............

“sub-paragraph (i) of paragraph (c) of sub-section (5)”

“sub-paragraph (5) (c) (i)”

Sub-section 26aab (2)................

“paragraph (d) of sub-section (1)”

“paragraph (1) (d)”

Sub-section 26aab (3)................

“paragraph (d) of sub-section (1)”

“paragraph (1) (d)”

Sub-section 26aab (5)................

“paragraphs (a), (b) and (c) of sub-section (2)”

“paragraphs (2) (a), (b) and (c)”

Sub-section 26aab (6)................

“paragraph (a) of sub-section (2)”

“paragraph (2) (a)”

Paragraph 26aab (6) (a).............

“sub-sections (2a) and (2d) of section 59”

“sub-sections 59 (2a) and (2d)”

Paragraph 26aab (6) (b).............

“paragraph (b) of sub-section (1) of section 56”

“paragraph 56 (1) (b)”

Paragraph 26aab (7) (b).............

“sub-sections (2a) and (2d) of section 59”

“sub-sections 59 (2a) and (2d)”

Paragraph 26aab (7) (c).............

“sub-section (2a) or (2d) of section 59”

“sub-sections 59 (2a) or (2d)”

Sub-paragraph 26aab (7) (d) (i)

“sub-section (3) of section 59”

“sub-section 59 (3)”

Sub-paragraph 26aab (7) (d) (ii)

“sub-section (4) of section 59”

“sub-section 59 (4)”

Sub-paragraph 26aab (7) (d) (iii)

“sub-sections (3) and (6) of section 59”

“sub-sections 59 (3) and (6)”

Sub-paragraph 26aab (7) (d) (iv)

“sub-sections (4) and (6) of section 59”

“sub-sections 59 (4) and (6)”

Paragraph 26aab (8) (b).............

“sub-sections (2a) and (2d) of section 59”

“sub-sections 59 (2a) and (2d)”

Sub-paragraph 26aab (8) (d) (i)

“sub-section (3) of section 59”

“sub-section 59 (3)”

Sub-paragraph 26aab (8) (d) (ii)

“sub-section (4) of section 59”

“sub-section 59 (4)”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Sub-paragraph 26aab (8) (d) (iii)

“sub-sections (3) and (6) of section 59”

“sub-sections 59 (3) and (6)”

Sub-paragraph 26aab (8) (d) (iv)

“sub-sections (4) and (6) of section 59”

“sub-sections 59 (4) and (6)”

Sub-section 26aab (14) (sub-paragraph (a) (v) of the definition of “associate”)

“clause (a)”

“sub-sub-paragraph (a)”

“that clause”

“that sub-sub-paragraph”

Sub-section 26aab (14) (sub-paragraph (b) (iv) of the definition of “associate”)

“clause (a)”

“sub-sub-paragraph (a)’

Sub-section 26aab (14) (sub-paragraph (b) (v) of the definition of “associate”)

“clause (a)”

“sub-sub-paragraph (a)”

“that clause”

“that sub-sub-paragraph”

Paragraph 26aab (11) (b)...........

“paragraph (c) of sub-section (1)”

“paragraph (1) (c)”

Sub-section 26aab (13)..............

“paragraphs (a) and (b) of sub-section (2)”

“paragraphs (2) (a) and (b)”

Sub-section 26aab (17)..............

“paragraph (a) of sub-section (16)”

“paragraph (16) (a)”

Sub-section 26aac (10)..............

“paragraph (e) of section 26”

“paragraph 26 (e)”

Sub-paragraph 26aac (14) (d) (ii)

“50 per centum”

“50%”

Sub-section 26aa (2)..................

“the next succeeding sub-section”

“the last preceding sub-section”

“sub-section (3)”

“sub-section (1)”

Sub-section 26ab (4)..................

“either of the last two preceding sub-sections”

“sub-section (2) or (3)”

Paragraph 26ab (5) (b)

“sub-section (7) of section 88b”

“sub-section 88b (7)”

Paragraph 26ae (1) (e)................

“paragraph (d) of section 26”

“paragraph 26 (d)”

Sub-section 26ae (4) (definition of “paragraph 23 (ja) fund”)

“paragraph (ja) of section 23”

“paragraph 23 (ja)”

Sub-section 26af (1)..................

“paragraph (d) of section 26”

“paragraph 26 (d)”

Sub-section 26af (3) (paragraph (a) of the definition of “approved terms and conditions”)

“sub-paragraph (ii) of paragraph (ja) of section 23”

“sub-paragraph 23 (ja) (ii)”

Sub-section 26af (3) (paragraph (b) of the definition of “approved terms and conditions”)

“sub-section (2) of section 79”

“sub-section 79 (2)”

Sub-section 26af (3) (definition of “paragraph 23 (ja) fund”)

“paragraph (ja) of section 23”

“paragraph 23 (ja)”

Sub-section 26b (3)....................

“the last preceding sub-section”

“sub-section (2)”

Sub-section 26b (6)....................

“next four”

“next 4”

Sub-section 26b (8)....................

“either of the last two preceding sub-sections”

“sub-section (6) or (7)”

Sub-section 26ba (3)..................

“the last preceding sub-section”

“sub-section (2)”

Sub-section 26ba (4)..................

“the last preceding sub-section”

“sub-section (3)”

Sub-section 26ba (5)..................

“paragraph (c) of sub-section (2)”

“paragraph (2) (c)”

Sub-section 26ba (7)..................

“paragraph (b) of the last preceding sub-section”

“paragraph (6) (b)”

Sub-section 26ba (8)..................

“the last preceding sub-section”

“sub-section (7)”

Sub-section 26c (4) (paragraph (a) of the definition of “prescribed security”)

“section four”

“section 4”

Sub-section 27 (1)......................

“31st December, 1923”

“31 December 1923”

Sub-section 31 (2)......................

“the last preceding sub-section”

“sub-section (1)”

Sub-section 31 (3)......................

“The last preceding sub-section”

“Sub-section (2)”

Paragraph 31b (5) (b)..................

“10 per centum”

“10%”

Paragraph 31b (7) (c)..................

“10 per centum”

“10%”

Paragraph 31b (9) (c)..................

“10 per centum”

“10%”

Sub-section 31b (10)..................

“paragraph (c) of sub-section (9)”

“paragraph (9) (c)”

Sub-section 31b (11)..................

“sub-section (1) of section 103”

“sub-section 103 (1)”

“sub-section (5), (6), (7), (8) or (9) of section 31b” (wherever occurring)

“sub-section 31b (5), (6), (7), (8) or (9)”

 

“sub-section (12) or (13) of that section”

“sub-section 31b (12) or (13)”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Paragraph 31c (2) (a)..................

“sub-paragraph (i) of paragraph (c) of sub-section (1)”

“sub-paragraph (1) (c) (i)”

 

“sub-paragraph (ii) of that paragraph”

“sub-paragraph (1) (c) (ii)”

Paragraph 31c (2) (b).................

“sub-paragraph (ii) of paragraph (c) of sub-section (1)”

“sub-paragraph (1) (c) (ii)”

 

“sub-paragraph (i) of that paragraph”

“sub-paragraph (1) (c) (i)”

 

“sub-paragraph (ii) of that paragraph”

“sub-paragraph (1) (c) (ii)”

Paragraph 31c (2) (c)..................

“sub-paragraph (i) of paragraph (c) of sub-section (1)”

“sub-paragraph (1) (c) (i)”

 

“sub-paragraph (ii) of that paragraph”

“sub-paragraph (1) (c) (ii)”

Sub-section 36 (3a)....................

“the next succeeding sub-section”

“sub-section (3b)”

 

“the last preceding sub-section”

“sub-section (3)”

Paragraph 36 (3a) (b).................

“four”

“4”

Sub-section 36 (3b)....................

“the last preceding sub-section”

“sub-section (3a)”

Sub-section 36 (8)......................

“the next succeeding section”

“section 36aaa”

Paragraph 36aaa (1) (b).............

“sub-section (1) of the last preceding section”

“sub-section 36 (1)”

Sub-section 36aaa (1)...............

“the last preceding section” (second, third and fourth occurring)

“section 36”

Paragraph 36aaa (2) (b).............

“five”

“5”

Sub-paragraph 36aaa (2) (b) (i)

“the next succeeding sub-section”

“sub-section (3)”

Sub-paragraph 36aaa (2) (b) (ii)

“the next succeeding sub-section” (wherever occurring)

“sub-section (3)”

Paragraph 36aaa (2) (d).............

“five”

“5”

Sub-section 36aaa (3)...............

“paragraph (b) of the last preceding sub-section”

“paragraph (2) (b)”

Paragraph 36aaa (3) (b).............

“the next succeeding paragraph”

“paragraph (c)”

Sub-section 36aaa (4)...............

“five”

“5”

Sub-section 36aaa (6)...............

“of the next two succeeding sub-sections”

“sub-section (7) nor sub-section (8)”

Sub-section 36aaa (7)...............

“the next succeeding sub-section”

“sub-section (8)”

Sub-section 36aaa (9)...............

“the next succeeding sub-section”

“sub-section (10)”

Paragraph 36aaa (12) (b)...........

“five”

“5”

Sub-section 36aaa (12).............

“the next succeeding sub-section”

“sub-section (13)”

Sub-section 36aaa (13).............

“the last preceding sub-section”

“sub-section (12)”

Paragraph 36aaa (13) (a)...........

“paragraphs (a) and (aa) of sub-section (2)”

“paragraphs (2) (a) and (aa)”

Paragraph 36aaa (13) (d)...........

“five” (wherever occurring)

“5”

Paragraph 36aaa (16) (a)...........

“paragraph (b) of sub-section (2)”

“paragraph (2) (b)”

Sub-section 36aaa (17).............

“Paragraph (b) of sub-section (8) of the last preceding section”

“Paragraph 36 (8) (b)”

Sub-section 36aa (2)..................

“the last preceding sub-section”

“sub-section (1)”

Paragraph 36aa (2) (c)...............

“four”

“4”

Paragraph 36aa (3) (b)...............

“paragraph (a) of the last preceding sub-section”

“paragraph (2) (a)”

Paragraph 36aa (4) (b)...............

“paragraph (a) of sub-section (2)”

“paragraph (2) (a)”

Paragraph 36a (2) (c)..................

“paragraph (a) of sub-section (8) of section 36”

“paragraph 36 (8) (a)”

Sub-section 36a (2)....................

“paragraph (a) of sub-section (8) of that section”

“paragraph 36 (8) (a)”

Sub-section 36a (3)....................

“the last preceding sub-section”

“sub-section (2)”

 

“the thirty-first day of August”

“31 August”

Sub-section 37 (2)......................

“the last preceding sub-section”

“sub-section (1)”

Section 40...................................

“either of the last two preceding sections”

“section 38 or 39”

Sub-section 44 (1a)....................

“the last preceding sub-section”

“paragraph (q) of section 23”

“sub-section (1)”

“paragraph 23 (q)”

Sub-section 44 (2)......................

“sub-section (1) of section 82s or sub-section (1) of section 82sa”

“sub-section 82s (1) or 82sa (1)”

Sub-section 44 (2b)....................

“the last preceding sub-section”

“three”

“sub-section (2d)”

“3”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Paragraph 45 (1) (b)...................

“the last preceding paragraph”

“paragraph (a)”

Paragraph 45 (1a) (a).................

“19th October, 1967,”

“19 October 1967”

Sub-section 45 (1a)....................

“the last preceding sub-section”

“sub-section (1)”

Sub-section 45 (2)......................

“the next succeeding sub-section”

“sub-section (3)”

Sub-section 45 (5)......................

“sub-section (1) of section 103”

“sub-section 103 (1)”

Sub-section 45 (6)......................

“three”

“3”

Sub-section 45 (7)......................

“the last preceding sub-section”

“three”

“sub-section (6)”

“3”

Sub-section 46 (1a)....................

“paragraph (a) or paragraph (b) of sub-section (3)”

“paragraph (3) (a) or (b)”

 

“the next succeeding section”

“section 46a”

Paragraph 46 (3) (a)....................

“ten”

“10”

Sub-paragraph 46 (3) (b) (ii)

“ten”

“10”

Sub-paragraph 46 (3) (b) (iv)

“ten”

“10”

Sub-section 46 (4)......................

“the last preceding sub-section”

“sub-section (3)”

Sub-section 46 (5)......................

“either of the last two preceding sub-sections”

“sub-section (3) or (4)”

 

“three”

“3”

Sub-section 46 (7a)....................

“sub-section (1) of section 31” (wherever occurring)

“sub-section 31 (1)”

Sub-section 46a (1)....................

“paragraph (a) or paragraph (b) of sub-section (6)”

“paragraph (6) (a) or (b)”

 

“31 August, 1971,”

“31 August 1971”

Paragraph 46a (6) (a)..................

“ten”

“10”

Sub-paragraph 46a (6) (b) (ii)

“ten”

“10”

Sub-paragraph 46a (6) (b) (iv)

“ten”

“10”

Sub-section 46a (7)....................

“the last preceding sub-section”

“sub-section (6)”

Sub-section 46a (10)..................

“the last preceding sub-section”

“sub-section (9)”

Sub-section 46a (13)..................

“paragraph (b) of sub-section (10)”

“paragraph (10) (b)”

Paragraph 46a (14) (a)................

“three”

“3”

Paragraph 47 (2a) (b).................

“19th October, 1967”

“19 October 1967”

Sub-section 47 (2a)....................

“the next succeeding sub-section”

“sub-section (2b)”

Sub-section 47 (2b)....................

“the last preceding sub-section” (wherever occurring)

“sub-section (2a)”

 

“three”

“3”

Section 49...................................

“two”

“2”

Sub-section 50a (2)....................

“sub-section (1) of section 50h”

“sub-section 50h (1)”

Paragraph 50c (2) (e)..................

“sub-section (3) of section 50f”

“sub-section 50f (3)”

Sub-section 50c (4)....................

“paragraph (d) of that sub-section”

“paragraph (3) (d)”

 

“paragraph (d) of sub-section (3)”

“paragraph (3) (d)”

Paragraph 50d (2) (f)..................

“paragraph (c) or (d) of sub-section (4)”

“paragraph (4) (c) or (d)”

 

“paragraph (c), (d) or (e) of sub-section (6)”

“paragraph (6) (c), (d) or (e)”

Paragraph 50d (2) (g)..................

“paragraph (c) or (d) of sub-section (4)”

“paragraph (4) (c) or (d)”

 

“paragraph (c), (d) or (e) of sub-section (6)”

“paragraph (6) (c), (d) or (e)”

Paragraph 50d (3) (a)..................

“paragraph (d), (e), (f), (g) or (h) of sub-section (1) of section 50h”

“paragraph 50h (1) (d), (e), (f), (g) or (h)”

Paragraph 50d (3) (b).................

“paragraph (d), (e), (f), (g) or (h) of sub-section (1) of section 50h”

“paragraph 50h (1) (d), (e), (f), (g) or (h)”

Paragraph 50d (4) (c)..................

“paragraph (f) or (g) of sub-section (2)”

“paragraph (2) (f) or (g)”

 

“paragraph (c), (d) or (e) of sub-section (6)”

“paragraph (6) (c), (d) or (e)”

Paragraph 50d (4) (d).................

“paragraph (f) or (g) of sub-section (2)”

“paragraph (2) (f) or (g)”

 

“paragraph (c), (d) or (e) of sub-section (6)”

“paragraph (6) (c), (d) or (e)”

Paragraph 50d (6) (c)..................

“paragraph (f) or (g) of sub-section (2)”

“paragraph (2) (f) or (g)”

 

“paragraph (c) or (d) of sub-section (4)”

“paragraph (4) (c) or (d)”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Paragraph 50d (6) (d).................

“paragraph (f) or (g) of sub-section (2)”

“paragraph (2) (f) or (g)”

 

“paragraph (c) or (d) of sub-section (4)”

“paragraph (4) (c) or (d)”

Paragraph 50d (6) (e)..................

“paragraph (f) or (g) of sub-section (2)”

“paragraph (2) (f) or (g)”

 

“paragraph (c) or (d) of sub-section (4)”

“paragraph (4) (c) or (d)”

Paragraph 50d (9) (a)..................

“paragraph (e), (f), (g) or (h) of sub-section (1) of section 50h”

“paragraph 50h (1) (e), (f), (g) or (h)”

Paragraph 50d (9) (b).................

“paragraph (e), (f), (g) or (h) of sub-section (1) of section 50h”

“paragraph 50h (1) (e), (f), (g) or (h)”

Paragraph 50e (1) (b)..................

“paragraph (b) of sub-section (6) of section 26ba”

“paragraph 26ba (6) (b)”

Paragraph 50e (1) (c)..................

“sub-section (1) of section 36”

“sub-section 36 (1)”

 

“sub-section (3) of that section”

“sub-section 36 (3)”

Paragraph 50e (1) (d)..................

“paragraph (b) of sub-section (3a) of section 36”

“paragraph 36 (3a) (b)”

Paragraph 50e (1) (e)..................

“paragraph (c) or (d) of sub-section (2) of section 36aaa”

“paragraph 36aaa (2) (c) or (d)”

Paragraph 50e (1) (f)..................

“paragraph (a) of sub-section (2) of section 36aa”

“paragraph 36aa (2) (a)”

 

“sub-section (1) of that section”

“sub-section 36aa (1)”

Paragraph 50e (1) (g)..................

“paragraph (c) of sub-section (2) of section 36aa”

“paragraph 36aa (2) (c)”

Sub-section 50e (2)....................

“sub-paragraph (ii) of paragraph (a) of sub-section (4) of section 50b”

“sub-paragraph 50b (4) (a) (ii)”

Paragraph 50e (2) (b)..................

“sub-section (6) or (7) of section 26b”

“sub-section 26b (6) or (7)”

Sub-paragraph 50b (2) (c) (i)

“paragraph (b) of sub-section (6) of section 26ba”

“paragraph 26ba (6) (b)”

Paragraph 50e (2) (d)..................

“sub-section (1) of section 36”

“sub-section 36 (1)”

Paragraph 50e (2) (e)..................

“paragraph (b) of sub-section (3a) of section 36”

“paragraph 36 (3a) (b)”

Paragraph 50e (2) (f)..................

“paragraph (c) or (d) of sub-section (2) of section 36aaa”

“paragraph 36aaa (2) (c) or (d)”

Paragraph 50e (2) (g)..................

“paragraph (a) of sub-section (2) of section 36aa”

“paragraph 36aa (2) (a)”

 

“sub-section (1) of that section”

“sub-section 36aa (1)”

Paragraph 50e (2) (h)..................

“paragraph (c) of sub-section (2) of section 36aa”

“paragraph 36aa (2) (c)”

 

“sub-section (5) of that section”

“sub-section 36aa (5)”

Paragraph 50e (2) (m).................

“paragraph (j) of sub-section (1)”

“paragraph (1) (j)”

Paragraph 50o (1) (a).................

“sub-section (2) of section 73a”

“sub-section 73a (2)”

Sub-section 50G (2)...................

“sub-paragraph (ii) of paragraph (b) of sub-section (4) of section 50b”

“sub-paragraph 50b (4) (b) (ii)”

Paragraph 50g (2) (k).................

“sub-section (1) of section 88”

“sub-section 88 (1)”

 

“sub-section (2) of that section”

“sub-section 88 (2)”

Sub-paragraph 50g (2) (m) (i)

“sub-section (4) of section 88”

“sub-section 88 (4)”

Paragraph 50g (2) (n).................

“sub-section (4) of section 88”

“sub-section 88 (4)”

Paragraph 50g (2) (x).................

“sub-section (3) of section 124m”

“sub-section 124m (3)”

Sub-section 50h (3)....................

“Paragraph (e) of sub-section (1)”

“Paragraph (1) (e)”

Sub-section 50h (4)....................

“Paragraph (f) of sub-section (1)”

“Paragraph (1) (f)”

Sub-section 50h (5)....................

“paragraph (g) of sub-section (1)”

“paragraph (1) (g)”

Sub-section 50h (6)....................

“Paragraph (g) of sub-section (1)”

“Paragraph (1) (g)”

Sub-section 50h (8)....................

“paragraph (h) of sub-section (1)”

“paragraph (1) (h)”

Paragraph 50k (1) (a)..................

“sub-section (2) of section 50d”

“sub-section 50d (2)”

Sub-section 51aa (1) (sub-paragraph (a) (ii) of the definition of “excepted interest”)

“30th June, 1961”

“30 June 1961”

Sub-section 51aa (1) (definition of “excepted outgoings of the 1959-60 year”)

“30th June, 1960”

“30 June 1960”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Sub-section 51aa (1) (definition of “excepted outgoings of the 1960-61 year”)

“30th June, 1961”

“30 June 1961”

Sub-section 51aa (1) (definition of “interest”)

“30th June, 1961”

“30 June 1961”

Sub-section 51aa (1) (definition of “outgoings of the 1959-60 year”)

“30th June, 1960”

“30 June 1960”

Sub-section 51aa (1) (definition of “outgoings of the 1960-61 year”)

“30th June, 1961”

“30 June 1961”

Sub-section 51aa (1) (definition of “outgoings to which this section applies”)

“the next succeeding section”

“section 51ab”

Paragraph 51aa (2) (b).................

“30th June, 1961,”

“30 June 1961”

Sub-section 51aa (4)....................

“Ten thousand pounds”

“$20,000”

 

“30th June, 1961,”

“30 June 1961”

Sub-section 51aa (5)....................

“15th November, 1960,”

“15 November 1960”

 

“30th June, 1961”

“30 June 1961”

Sub-section 51aa (6)....................

“the next succeeding sub-section”

“sub-section (7)”

 

“15th November, 1960”

“15 November 1960”

 

“30th June, 1961,”

“30 June 1961”

Sub-section 51aa (8)....................

“Ten thousand pounds”

“$20,000”

Sub-section 51aa (9)....................

“30th June, 1961,”

“30 June 1961”

Paragraph 51aa (10) (a)...............

“15th November, 1960”

“15 November 1960”

 

“30th June, 1961”

“30 June 1961”

Paragraph 51aa (10) (b)...............

“15th November, 1960”

“15 November 1960”

 

“30th June, 1961”

“30 June 1961”

Sub-section 51 aa (11).................

“the last preceding sub-section”

“sub-section (10)”

 

“15th November, 1960,”

“15 November 1960”

 

“30th June, 1961”

“30 June 1961”

 

“paragraph (a) or (b) of the last preceding sub-section”

“paragraph (10) (a) or (b)”

Sub-section 51aa (12)..................

“the last preceding sub-section”

“sub-section (11)”

 

“the next succeeding section”

“section 51ab”

 

“15th November, 1960”

“15 November 1960”

Paragraph 51aa (14) (b)

“30th June, 1961,”

“30 June 1961”

Sub-section 51ac (1) (definition of “permanent employee”)

“five”

“5”

Sub-section 51ac (1) (definition of “prescribed agent”)

“sub-section (2) of section 73”

“sub-section 73 (2)”

Sub-section 51ac (1) (definition of “prescribed outgoings”)

“sub-section (2) of section 73”

“sub-section 73 (2)”

Sub-section 51ac (1) (definition of “the tax saving”)

“sub-section (2) of section 73”

“sub-section 73 (2)”

Sub-section 51ac (2)....................

“sub-section (2) of section 73”

“sub-section 73 (2)”

Sub-section 51ac (3)....................

“30th June, 1961”

“30 June 1961”

 

“1st July, 1968”

“1 July 1968”

 

“sub-section (2) of section 73”

“sub-section 73 (2)”

Sub-section 51ac (4)....................

“two”

“2”

Sub-section 51ac (5)....................

“The last preceding sub-section”

“Sub-section (4)”

Sub-section 51ac (10)..................

“sub-section (2) of section 73”

“sub-section 73 (2)”

Sub-paragraph 51a (2) (a) (i)

“Five dollars”

“$5”

Sub-paragraph 51a (2) (a) (ii)

“Five dollars” (wherever occurring)

“$5”

 

“Seven dollars”

“$7”

Sub-paragraph 51a (2) (a) (iii)

“Seven dollars”

“$7”

 

“Two dollars”

“$2”

Paragraph 51a (2) (b)...................

“Two dollars” (wherever occurring)

“$2”

 

“Five dollars”

“$5”

Paragraph 51a (2) (c)....................

“Two dollars”

“$2”

Sub-section 52a (6)......................

“paragraph (b) of sub-section (3)”

“paragraph (3) (b)”

Sub-section 53f (4).......................

“1st July, 1965,”

“1 July 1965”

Sub-section 53o (4)......................

“1st July, 1971,”

“1 July 1971”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Paragraph 53h (10) (c).................

“sub-paragraph (iii) of paragraph (b)”

“sub-paragraph (b) (iii)”

Sub-paragraph 53h (12) (c) (i)

“sub-paragraph (i) of paragraph (b)”

“sub-paragraph (b) (i)”

Sub-paragraph 53h (12) (c) (ii)

“sub-paragraph (ii), (iii), (iv), (v) or (vi) of paragraph (b)”

“sub-paragraph (b) (ii), (iii), (iv), (v) or (vi)”

 

“sub-paragraph (ii) of that paragraph”

“sub-paragraph (b) (ii)”

 

“sub-paragraph (iii) of that paragraph”

“sub-paragraph (b) (iii)”

 

“sub-paragraph (iv) of that paragraph”

“sub-paragraph (b) (iv)”

 

“sub-paragraph (vi) of that paragraph”

“sub-paragraph (b) (vi)”

Sub-paragraph 53h (22) (c) (i)

“sub-paragraph (i) of paragraph (b)”

“sub-paragraph (b) (i)”

Sub-paragraph 53h (22) (c) (ii)

“sub-paragraph (ii), (iii), (iv), (v) or (vi) of paragraph (b)”

“sub-paragraph (b) (ii), (iii), (iv), (v) or (vi)”

 

“sub-paragraph (ii) of that paragraph”

“sub-paragraph (b) (ii)”

 

“sub-paragraph (iii) of that paragraph”

“sub-paragraph (b) (iii)”

 

“sub-paragraph (iv) of that paragraph”

“sub-paragraph (b) (iv)”

 

“sub-paragraph (vi) of that paragraph”

“sub-paragraph (b) (vi)”

Sub-section 53h (23)....................

“Paragraph (a) of sub-section (6)”

“Paragraph (6) (a)”

Sub-section 53h (24)....................

“Sub-sections (2) to (8) of section 82aja”

“Sub-sections 82aja (2) to (8)”

 

“sub-section (1) of section 82aja”

“sub-section 82aja (1)”

Sub-paragraph 53H (33) (a) (i)

“paragraph (a) of sub-section (3)”

“paragraph (3) (a)”

Sub-paragraph 53h (33) (a) (ii)

“paragraph (b) of sub-section (3)”

“paragraph (3) (b)”

Paragraph 53h (33) (b).................

“paragraph (a) of sub-section (3)”

“paragraph (3) (a)”

Paragraph 53h (33) (c)..................

“paragraph (b) of sub-section (3)”

“paragraph (3) (b)”

Sub-section 53h (37)....................

“sub-paragraph (ii) of paragraph (b)”

“sub-paragraph (b) (ii)”

Paragraph 54 (2) (b).....................

“30th June, 1963,”

“30 June 1963”

 

“30th June, 1958,”

“30 June 1958”

Sub-paragraph 54 (2) (b) (ii)

“paragraph (g), (ga), (gb), (h), (i), (j) or (1) of sub-section (1) of section 75”

“paragraph 75 (1) (g), (ga), (gb), (h), (i), (j) or (1)”

Paragraph 54 (2) (c)......................

“30th June, 1938”

“30 June 1938”

Sub-section 54 (4)........................

“paragraph (a) of sub-section (5) of section 51ab”

“paragraph 51ab (5) (a)”

Sub-section 55 (2)........................

“thirty-three and one-third per centum”

“33⅓%”

Paragraph 56 (1) (a)......................

“the last preceding section”

“section 55”

Paragraph 56 (1) (b).....................

“the next succeeding section”

“section 56a”

 

“the last preceding section”

“section 55”

Sub-section 56 (1b)......................

“paragraph (a) of sub-section (1)”

“paragraph (1) (a)”

“paragraph (1) (b)”

Sub-section 56 (4)........................

“paragraph (b) of sub-section (1) (wherever occurring)

“paragraph (1) (b)”

Sub-section 56a (1)......................

“sub-section (1) of the last preceding section”

“sub-section 56 (1)”

Paragraph 56a (1) (a)....................

“that section”

“section 56”

Sub-section 56a (2)......................

“paragraph (b) of sub-section (1) of section 56”

“paragraph 56 (1) (b)”

 

“30th June, 1957”

“30 June 1957”

 

the last preceding sub-section”

“sub-section (1)”

 

“the last preceding section”

“section 56”

Sub-section 56a (3)......................

“the last preceding sub-section”

“sub-section (2)”

 

“the next succeeding sub-section”

“sub-section (4)”

 

“the last preceding section” (first occurring)

“section 56”

 

“paragraph (a) of sub-section (1) of the last preceding section”

paragraph 56 (1) (a)”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Sub-section 56a (4)......................

“the last preceding sub-section”

“sub-section (3)”

Paragraph 56a (4) (c)....................

“the last preceding paragraph”

“paragraph (b)”

Section 57.....................................

“the last preceding section”

“section 56a”

Sub-section 57aa (1)....................

“the last four preceding sections”

“sections 55, 56, 56a and 57”

Paragraph 57aa (1) (a).................

“twenty per centum”

“20%”

Sub-section 57aa (2)....................

“the next succeeding sub-section”

“sub-section (3)”

Paragraph 57aa (3) (a).................

“30th June, 1951”

“30 June 1951”

Sub-paragraph 57aa (3) (b) (i)

“30th June, 1951”

“30 June 1951”

Sub-paragraph 57aa (3) (b) (ii)

“30th June, 1958”

“30 June 1958”

Sub-paragraph 57aa (3) (b) (iii)

“30th June, 1963”

“30 June 1963”

Paragraph 57aa (4) (a).................

“Six thousand five hundred dollars” (wherever occurring)

“$6,500”

Paragraph 57aa (4) (b).................

“Six thousand five hundred dollars”

“$6,500”

Sub-section 57aa (5)....................

“either of the paragraphs of the last preceding sub-section”

“paragraph (4) (a) or (b)”

Sub-section 57aa (8)....................

“sub-section (3) of section 56”

“sub-section 56 (3)”

Sub-section 57ab (1)....................

“30th June, 1952” (wherever occurring)

“30 June 1952”

Paragraph 57ab (3) (a)..................

“twenty per centum”

“20%”

Sub-section 57ab (4)....................

“twenty per centum”

“20%”

Sub-section 57ab (5)....................

“the last preceding sub-section”

“sub-section (4)”

Sub-section 57ab (7)....................

“sub-section (3) of section 56”

“sub-section 56 (3)”

Sub-section 57ac (2)....................

“sub-section (1) of section 56”

“sub-section 56 (1)”

 

“sub-sections (2) and (3) of section 56”

“sub-sections 56 (2) and (3)”

Paragraph 57ad (2) (c).................

“sub-section (2) of section 55”

“sub-section 55 (2)”

 

“sub-section (5) of section 73a”

“sub-section 73a (5)”

Sub-section 57ad (3)....................

“sub-section (1) of section 55” (wherever occurring)

“sub-section 55 (1)”

 

“sub-section (1) of section 56”

“sub-section 56 (1)”

 

“sub-sections (2) and (3) of section 56”

“sub-sections 56 (2) and (3)”

Sub-section 57ae (3)....................

“paragraph (a) of sub-section (2)”

“paragraph (2) (a)”

Sub-section 57af (12)..................

“paragraph (b) of sub-section (4)”

“paragraph (4) (b)”

Sub-section 57af (15) (definition of “index number”)

“six”

“6”

Paragraph 57ag (2) (b).................

“sub-section (2) of section 55”

“sub-section 55 (2)”

 

“sub-section (5) of section 73a”

“sub-section 73a (5)”

Sub-section 57ag (3)....................

“sub-section (1) of section 55” (wherever occurring)

“sub-section 55 (1)”

 

“sub-section (1) of section 56”

“sub-section 56 (1)”

 

“sub-sections (1a), (1b), (1c), (2), (3), and (4) of section 56”

“sub-sections 56 (1a), (1b), (1c), (2), (3) and (4)”

Paragraph 57ag (4) (d).................

“sub-paragraph (i) of paragraph (b)”

“sub-paragraph (b) (i)”

Paragraph 57ag (4) (e).................

“sub-paragraph (ii) of paragraph (b)”

“sub-paragraph (b) (ii)”

Paragraph 57ag (5) (d).................

“sub-paragraph (i) of paragraph (b)”

“sub-paragraph (b) (i)”

Paragraph 57ag (5) (e).................

“sub-paragraph (ii) of paragraph (b)”

“sub-paragraph (b) (ii)”

Paragraph 57ah (2) (c).................

“sub-section (2) of section 55 or sub-section (5) of section 73a”

“sub-section 55 (2) or 73a (5)”

Sub-section 57ah (6)....................

“paragraph (a) of sub-section (3)”

“paragraph (3) (a)”

Paragraph 57ah (7) (d).................

“sub-paragraph (i) of paragraph (b)”

“sub-paragraph (b) (i)”

Paragraph 57ah (7) (e).................

“sub-paragraph (ii) of paragraph (b)”

“sub-paragraph (b) (ii)”

Paragraph 57ah (8) (d).................

“sub-paragraph (i) of paragraph (b)”

“sub-paragraph (b) (i)”

Paragraph 57ah (8) (e).................

“sub-paragraph (ii) of paragraph (b)”

“sub-paragraph (b) (ii)”

Sub-section 58 (1)........................

“the next succeeding sub-section”

“sub-section (2)”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Paragraph 58 (2) (a)......................

“30th June, 1968,”

“30 June 1968”

 

“31st December, 1969”

“31 December 1969”

Paragraph 58 (2) (b).....................

“30th June, 1968,”

“30 June 1968”

 

“31st December, 1969”

“31 December 1969”

Paragraph 58 (3) (a)......................

“paragraph (a) of sub-section (1)”

“paragraph (1) (a)”

Paragraph 58 (4) (a)......................

“twenty per centum”

“20%”

 

“the next succeeding sub-section”

“sub-section (5)”

Sub-section 58 (5)........................

“the last preceding sub-section”

“sub-section (4)”

Sub-section 58 (6)........................

“sub-section (1) of section 83”

“sub-section 83 (1)”

Sub-section 59 (2a)......................

“the last preceding sub-section”

“sub-section (2)”

Sub-section 59 (2b)......................

“the last preceding sub-section”

“sub-section (2a)”

Sub-section 59 (2e)......................

“the last preceding sub-section”

“(2d)”

Sub-section 59 (4a)......................

“paragraph (b) of sub-section (1) of section 56”

“paragraph 56 (1) (b)”

 

“sub-section (1) of section 62”

“sub-section 62 (1)”

Sub-section 59 (6)........................

“sub-section (13) of section 57af” (wherever occurring)

“sub-section 57af (13)”

 

“sub-section (4) of section 56”

“sub-section 56 (4)”

 

“sub-section (3) of section 62”

“sub-section 62 (3)”

Paragraph 59ab (1) (c)..................

“sub-section (2) of section 59”

“sub-section 59 (2)”

Paragraph 59ab (1) (f)..................

“sub-section (2a) or sub-section (2d) of section 59”

“sub-section 59 (2a) or (2d)”

Sub-section 59ab (4)....................

“the last preceding sub-section”

“sub-section (3)”

Sub-section 59ab (6)....................

“the next succeeding sub-section”

“sub-section (7)”

Sub-section 60 (1a)......................

“the last preceding sub-section”

“sub-section (1)”

 

“sub-section (2a) or (2d) of section 59”

“sub-section 59 (2a) or (2d)”

Sub-section 62 (2)........................

“the last preceding sub-section”

“sub-section (1)”

Sub-section 62aaa (3).................

“the last preceding sub-section”

“sub-section (2)”

Sub-section 62aaa (4).................

“the last preceding sub-section”

“sub-section (3)”

Sub-paragraph 62aaa (5) (b) (i)

“paragraphs (a) to (e), inclusive, of sub-section (3)”

“paragraphs (3) (a) to (e), inclusive,”

Sub-paragraph 62aaa (5) (b) (ii)

“the last preceding sub-paragraph”

“sub-paragraph (i)”

Paragraph 62aaa (6) (b)...............

“the last preceding paragraph”

“paragraph (a)”

Sub-section 62aaa (7).................

“paragraph (b) of sub-section (5)”

“paragraph (5) (b)”

Sub-section 62aa (2)....................

“the next succeeding sub-section”

“sub-section (3)”

Paragraph 62aa (3) (a).................

“paragraph (a) or (b) of the next succeeding sub-section”

“paragraph (4) (a) or (b)”

Sub-section 62aa (4)....................

“the last preceding sub-section”

“sub-section (3)”

Sub-section 62aa (6)....................

“the last preceding sub-section”

“sub-section (5)”

Sub-section 62aa (7)....................

“the next succeeding sub-section”

“sub-section (8)”

Paragraph 62aa (7) (a).................

“7th February, 1962”

“7 February 1962”

Paragraph 62aa (7) (b).................

“7th February, 1962”

“7 February 1962”

Paragraph 62aa (7) (c).................

“7th February, 1962”

“7 February 1962”

Sub-section 62aa (8)....................

“the last preceding sub-section”

“sub-section (7)”

Paragraph 62aa (8) (b).................

“7th February, 1962,”

“7 February 1962”

 

“paragraph (a) of that sub-section”

“paragraph (7) (a)”

Sub-paragraph 62aa (8) (c) (i)

“7th February, 1962,”

“7 February 1962”

Paragraph 62aa (8) (c).................

“paragraph (a) of that sub-section”

“paragraph (7) (a)”

Paragraph 62aa (8) (d).................

“7th February, 1962,”

“7 February 1962”

 

“paragraph (c) of that sub-section”

“paragraph (7) (c)”

Paragraph 62aa (9) (a).................

“7th February, 1962,”

“7 February 1962”

Sub-section 62aa (11)..................

“the last preceding sub-section”

“sub-section (10)”

Sub-section 62aa (13)..................

“3rd February, 1971,”

“3 February 1971”

 

“14th February, 1972,”

“14 February 1972”

Sub-section 62ab (2)....................

“the next succeeding sub-section”

“sub-section (3)”

Paragraph 62ab (3) (i)..................

“paragraph (i) of sub-section (3) of section 62aa”

“paragraph 62aa(3) (i)”

Sub-section 62ab (4)....................

“14th August, 1963”

“14 August 1963”

Paragraph 62ab (5) (a)..................

“14th August, 1963,”

“14 August 1963”

Sub-section 62ab (8)....................

“the last preceding sub-section”

“sub-section (7)”

Sub-section 62a (2)......................

“the last preceding sub-section”

“sub-section (1)”

Paragraph 63a (4) (a)....................

“two”

“2”

Paragraph 63a (4) (b)...................

“two”

“2”


SCHEDULE—continued

Provision Amended

Omit—

Substitute—

Paragraph 63a (4) (c)....................

“two”

“2”

Paragraph 63a (8) (a)....................

“two”

“2”

Paragraph 63a (8) (b)...................

“two”

“2”

Paragraph 63a (8) (c)....................

“two”

“2”

Sub-section 63a (9)......................

“two”

“2”

Paragraph 63a (10) (c)..................

“paragraph (c) of sub-section (5) of that section”

“paragraph 80b (5) (c)”

Paragraph 63b (1) (d)

“sub-section (5) of section 63a”

“sub-section 63a (5)”

Sub-section 63b (2)

“Paragraph (a) of sub-section (1)”

“Paragraph (1) (a)”

Sub-section 63b (3)

“paragraph (b) of sub-section (1)”

“paragraph (1) (b)”

Sub-section 63b (4)

“Paragraph (b) of sub-section (1)”

“Paragraph (1) (b)”

Sub-section 63b (7)......................

“paragraph (c) of sub-section (1)”

“paragraph (1) (c)”

Sub-section 63b (8)......................

“two”

“2”

Sub-section 64a (3)......................

“Fifty dollars”

“$50”