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Taxation Laws Amendment Act 1991

Act No. 48 of 1991 as made
An Act to amend the law relating to taxation
Administered by: Treasury
Date of Assent 24 Apr 1991
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016
 

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - TABLE OF PROVISIONS

TABLE OF PROVISIONS

PART 1 - PRELIMINARY
Section
1. Short title
2. Commencement
PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
3. Principal Act
4. Reduction of taxable value - "otherwise deductible" rule
5. Reduction of taxable value - "otherwise deductible" rule
6. Interpretation
7. Application of amendments
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
8. Principal Act
9. Foreign income and foreign tax
10. Exemption of certain pensions
11. Exemption of foreign branch profits of Australian companies
12. Distribution benefits - CFCs
13. Bad debts
14. Insertion of new section:
63D. Bad debts of money-lenders not allowable deductions where
attributable to listed country branches
15. Certain provisions to be disregarded in calculating attributable income
16. Insertion of new section:
102AAZBA. Modified application of Part IIIA - effect of certain
changes of residence
17. Interpretation
18. Exploration and prospecting expenditure
19. Interpretation
20. Exploration and prospecting expenditure
21. Application of Subdivision
22. Application of Subdivision
23. Interpretation
24. Allowable capital expenditure in respect of cash bidding
payments for exploration permits and production licences
25. Exploration and prospecting expenditure
26. Prospecting or mining by contractors, profit-sharing
arrangements etc.
27. Double deductions
28. Interpretation
29. Interpretation
30. Qualifying expenditure
31. Interpretation
32. Rebate for medical expenses
33. Passive income
34. Interpretation
35. Insertion of new section:
160APHB. Life assurance companies - application of rebates
against components of taxable income
36. Insertion of new section:
160APKA. No credits of a mutual life assurance company or SGIO
37. Receipt of franked dividends
38. Receipt of franked dividends through trusts and partnerships
39. Insertion of new sections:
160APVA. Life assurance companies - credit reducing section
160APYA debit
160APVB. Life assurance companies - credit
reducing section 160APYAA debit
160APVC. Life assurance companies - credit reducing section
160APYB debit
160APVD. Life assurance companies - credit reducing section
160APZ debit
160APVE. Life assurance companies - credit reducing section
160AQA debit
40. Insertion of new section:
160APWA. No debits of a mutual life assurance company or SGIO
41. Waiver of franking deficit tax
42. Insertion of new sections:
160AQCD. Life assurance companies - debit reducing section
160APMA credit
160AQCE. Life assurance companies - debit reducing section
160APMB credit
160AQCF. Life assurance companies - debit reducing section
160APN or 160APNA credit
160AQCG. Life assurance companies - debit reducing section
160APR credit
160AQCh. Life assurance companies - debit reducing section
160APT credit
43. Liability to franking deficit tax

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44. Assets to which Part applies
45. Taxpayer
46. Associated persons
47. Resident trust estates and unit trusts
48. Part applies in respect of disposals of assets
49. What constitutes a disposal or acquisition
50. Disposal of taxable Australian assets
51. Capital gains and capital losses
52. Reductions of capital gains where amount otherwise assessable
53. Consideration in respect of disposal
54. Insertion of new section:
160ZFB. Adjustment where change of residence by a company from
unlisted country to listed country
55. Reduction of amounts for purposes of reduced cost base
56. Transfer of assets from company or trust to spouse upon
breakdown of marriage
57. Transfer of asset to wholly-owned company
58. Insertion of new section:
160ZZNA. Transfer of partnership assets to wholly-owned company
59. Transfer of asset between companies in the same group
60. Repeal of section 160ZZOA
61. Insertion of new Division:
DIVISION 19A - TRANSFERS OF ASSETS BETWEEN COMPANIES UNDER
COMMON OWNERSHIP
160ZZRA. Interpretation
160ZZRB. When companies under common ownership
160ZZRC. Underlying interest
160ZZRD. Transfers of assets between companies under common ownership
160ZZRE. Shares in, and loans to, transferor - deemed disposal
and re-acquisition
160ZZRF. First asset acquired before transferor and transferee
came under common ownership - shares in, and loans to,
transferor - reduction in cost base etc.
160ZZRG. Indirect equity or debt interests in transferor -
reduction in cost base etc.
160ZZRH. Equity interests in transferee - compensatory increase
in cost base etc.
62. Transfers of assets between companies under common ownership
63. Shares in, and loans to, transferor - deemed disposal and re-acquisition 64. First asset acquired before transferor and transferee came under
common ownership - shares in, and loans to, transferor -
reduction in cost base etc.
65. Insertion of new section:
160ZZRFA. First asset acquired when transferor and transferee
under common ownership
- shares in, and loans to, transferor
- reduction in cost base etc.
66. Equity interests in transferee - compensatory increase in cost
base etc.
67. Disposal of shares or of interest in trust
68. Keeping of records
69. Effect of incorrect quotation of tax file number
70. Interpretation
71. When income or profits subject to tax in a listed country
72. Exempting receipt of an unlisted country company
73. Certain provisions to be disregarded in calculating attributable income
74. Notional allowable deduction for taxes paid
75. Insertion of new section:
398A. Modified application of Division 3A of Part III
76. Additional notional exempt income - unlisted or listed country CFC
77. Modified application of Part IIIA - general modifications
78. Insertion of new section:
418A. Effect of change of residence from Australia to listed or
unlisted country
79. Repeal of section 420
80. Amounts excluded from active income test
81. Insertion of new section:
456A. Reduction of section 456 assessability where item subject
to foreign accruals tax
82. Insertion of new section:
459A. Assessability where CFC or CFT has interest in certain
attributable taxpayers
83. Only resident partners, beneficiaries etc. liable to be assessed
as a result of attribution
84. Application of amendments - general
85. Application of bad debt amendments
86. Savings - section 159GZZJ of the Principal Act
87. Transitional - cancellation of franking surplus for mutual life
assurance companies and SGIOs
88. Transitional - application of Part IIIA of the Principal Act to

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partnerships
89. Transitional - section 160ZZU of the amended Act
90. Amendment of assessments
PART 4 - AMENDMENT OF THE INCOME TAX RATES ACT 1986
91. Principal Act
92. Interpretation
93. Limitation on tax payable by certain trustees
94. Interpretation
95. Tax cuts for 1990-91
96. Tax cuts for 1991-92 and subsequent years
97. Application of amendments
98. Transitional - provisional tax for 1990-91
99. Amendment of assessments
PART 5 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953
100. Principal Act
101. Repeal of section 8xa and substitution of new section:
8XA. Unauthorised access to taxation records
102. Secrecy
PART 6 - AMENDMENT OF THE TAXATION LAWS AMENDMENT
(FOREIGN INCOME) ACT 1990
103. Principal Act
104. Transitional - section 108 of the amended Act

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - LONG TITLE

An Act to amend the law relating to taxation

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - PART 1
PART 1 - PRELIMINARY

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 1
Short title

(Assented to 24 April 1991)
1. This Act may be cited as the Taxation Laws Amendment Act 1991.

(Minister's second reading and speech made in -
House of Representatives on 6 December 1990
Senate on 20 February 1991

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 2
Commencement

2. (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Sections 9, 15, 33, 70, 81, 82 and 83 and Part 6 are taken to have commenced immediately after the commencement of the Taxation Laws Amendment (Foreign Income) Act 1990.
(3) Paragraph 34 (b) and sections 36, 40 and 87 are taken to have commenced on 21 August 1990.
(4) Section 32, subsections 84 (9) and 93 (2), section 96 and subsection 97 (3) commence on 1 July 1991.
(5) Subsections 51 (2) and 59 (2), sections 62, 63, 64, 65 and 66 and subsections 68 (2) and 84 (12) commence on the day after the day on which this Act receives the Royal Assent.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - PART 2
PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 3
Principal Act

3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment Act 1986.*1*
*1* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112, 1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78, 1988); Nos. 6, 78, 95, 97 and 153, 1988; Nos. 2, 11, 97 and 107, 1989; and Nos. 37, 58, 60 and 135, 1990.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 4
Reduction of taxable value - "otherwise deductible" rule

4. Sections 19, 44 and 52 of the Principal Act are amended by omitting from subparagraph (1) (b) (i) and sub-subparagraph (1) (ba) (ii) (A) "foreign source deduction" and substituting "foreign income deduction".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 5
Reduction of taxable value - "otherwise deductible" rule

5. Section 24 of the Principal Act is amended by omitting from subparagraph (1) (b) (iii) and sub-subparagraph (1) (ba) (ii) (A) "foreign source deduction" and substituting "foreign income deduction".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 6
Interpretation

6. Section 136 of the Principal Act is amended by omitting from subsection (1) the definition of "foreign source deduction" and substituting the following definition:
"`foreign income deduction' has the same meaning as in section 160AFD of the Income Tax Assessment Act 1936;".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 7
Application of amendments

7. The amendments made by this Part apply in relation to foreign income deductions allowable under the Income Tax Assessment Act 1936 for the year of income of the recipient of a fringe benefit commencing on 1 July 1990, or any
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later year of income.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - PART 3
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 8
Principal Act

8. In this Part, "Principal Act" means the Income Tax Assessment Act 1936.*2*
*2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49, 51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984; No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and 174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51, 109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52, 1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141, 1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988); Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70, 73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105, 1989); and Nos. 20, 35, 37, 45, 57, 58, 60, 61, 87, 119 and 135, 1990.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 9
Foreign income and foreign tax

9. Section 6AB of the Principal Act is amended:
(a) by omitting from subsection (1) "or 459" and substituting ", 459 or 459A";
(b) by omitting from paragraph (3A) (a) "or 459" and substituting ", 459 or 459A".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 10
Exemption of certain pensions

10. Section 23AD of the Principal Act is amended:
(a) by omitting "Part VI" from subparagraph (b) (i) of the definition of "excepted payment" in subsection (1) and substituting "VI, section 68";
(b) by inserting "or Schedule 1B" before "of the" in subparagraph (b) (i) of the definition of "excepted payment" in subsection (1);
(c) by omitting paragraph (g) of the definition of "excepted payment" in subsection (1) and substituting the following paragraph:
"(g) a payment under subsection 57A (2) or subparagraph 57A (3) (b) (ii) of the Veterans' Entitlements Act 1986;";
(d) by omitting from paragraph (a) of the definition of "excepted pension" in subsection (1) "or section 237" and substituting "or section 67";
(e) by omitting from paragraph (c) of the definition "excepted pension" in subsection (1) "or the veteran being cared for by a person" and substituting ", the veteran being cared for by a person or the deceased veteran who was being cared for by a person";
(f) by inserting in subsection (1) the following definition:
" `age-pension age' means:
(a) in the case of a woman - 60 years; or
(b) in the case of a man - 65 years;";
(g) by inserting in paragraph (3) (a) "or payments under subsection 57A (2) or subparagraph 57A (3) (b) (ii) of the Veterans' Entitlements Act 1986" after "excepted payments" (first occurring);
(h) by omitting paragraph (3) (aaa);
(j) by omitting from paragraph (3) (c) "subsection 365 (2) of the Imperial Act known as the Income and Corporation Taxes Act 1970" and substituting "subsection 315 (2) of the Income and Corporation Taxes Act 1988 of the United Kingdom";
(k) by inserting in paragraph (3) (d) "or payments under subsection 66 (2) or subparagraph 66 (3) (b) (ii) of the Social Security Act 1947" after "excepted payments";
(m) by omitting "and" from the end of paragraph (3) (d);
(n) by omitting paragraph (3) (e) and substituting the following paragraphs:
"(e) if a payment is made to or in respect of the taxpayer under subsection 66 (2) of the Social Security Act 1947 on a particular pension pay-day and both of the following subparagraphs apply:

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(i) the taxpayer had not attained age-pension age on the pension pay-day;
(ii) no part of the pension or allowance payable to or in respect of the taxpayer immediately before the death of the deceased pensioner concerned was an excepted payment;
so much of that payment under that subsection as represents an amount covered by paragraph (a) of that subsection;
(f) if a payment is made to or in respect of the taxpayer under subsection 66 (2) of the Social Security Act 1947 on a particular pension pay-day and all of the following subparagraphs apply:
(i) the taxpayer had not attained age-pension age on the pension pay-day;
(ii) the whole or a part of the pension or allowance payable to or in respect of the taxpayer immediately before the death of the deceased pensioner concerned (which pension or allowance is in this paragraph called the `original pension or allowance') was an excepted payment;
(iii) the deceased pensioner had attained age-pension age;
(iv) no part of the original pension or allowance would have been an excepted payment if the deceased pensioner had not attained age-pension age before the death;
so much of that payment under that subsection as represents an amount covered by paragraph (a) of that subsection;
(g) if:
(i) a payment is made to or in respect of the taxpayer under subsection 66 (2) of the Social Security Act 1947; and
(ii) neither paragraph (e) nor (f) of this subsection applies to so much of that payment as represents an amount covered by paragraph 66 (2) (a) of that Act (which part of that payment is in this paragraph called the `paragraph 66 (2) (a) amount');
so much of the paragraph 66 (2) (a) amount as does not represent an excepted payment;
(h) so much of a payment under subsection 66 (2) of the Social Security Act 1947 as represents an amount covered by paragraph (b) of that subsection;
(j) in the case of a taxpayer to whom paragraph 66 (3) (a) of the Social Security Act 1947 applies - so much of the total excepted payments made to the taxpayer under that Act on any one of the 7 pension pay-days after the death of the deceased pensioner concerned as exceeds the total excepted payments that would have been payable to or in respect of the taxpayer on that pension pay-day if the deceased pensioner had not died;
(k) if paragraph 66 (3) (b) of the Social Security Act 1947 applies to the taxpayer - so much of the sum of:
(i) the excepted payments made to the taxpayer under that Act:
(A) on the first available pension pay-day after the
notification day referred to in subparagraph 66 (3) (b) (i) of that Act; and
(B) on a subsequent pension pay-day, being one of the 7
pension pay-days after the death of the deceased pensioner concerned; and
(ii) the payment made to the taxpayer under subparagraph 66 (3) (b) (ii) of that Act;
as does not exceed the amount obtained by:
(iii) ascertaining for:
(A) the first available pension pay-day after the
notification day referred to in subparagraph 66 (3) (b) (i) of that Act; and
(B) each subsequent pension pay-day, being one of the 7
pension pay-days after the death of the deceased pensioner concerned;
the amount calculated using the following formula:
Notional CMR - Notional NR
where:
`Notional CMR' (Notional Combined Married Rate) means the sum of:
(C) so much of the amount that would have been payable to
the taxpayer on the pension pay-day if the deceased pensioner had not died as is not an excepted payment; and
(D) the amount that would have been payable to the deceased
pensioner on the pension pay-day if the deceased pensioner had not died;
`Notional NR' (Notional New Rate) means so much of the amount that would have been payable to the taxpayer as an unmarried person on the pension pay-day as is not an excepted payment; and
(iv) aggregating the amounts calculated under subparagraph (iii) of this paragraph;
(m) payments under subsection 66 (4) or section 69 or 70 of the Social Security Act 1947;
(p) if a payment is made to or in respect of the taxpayer under subsection 57A (2) of the Veterans' Entitlements Act 1986 on a particular pension pay-day and both of the following subparagraphs apply:
(i) the taxpayer had not attained age-pension age on the pension pay-day;
(ii) no part of the pension or allowance payable to or in respect of the taxpayer immediately before the death of the deceased pensioner concerned was an excepted payment;
so much of that payment under that subsection as represents an amount covered by paragraph (a) of that subsection;
(q) if a payment is made to or in respect of the taxpayer under subsection 57A (2) of the Veterans' Entitlements Act 1986 on a particular pension pay-day and all of the following subparagraphs apply:

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(i) the taxpayer had not attained age-pension age on the pension pay-day;
(ii) the whole or a part of the pension or allowance payable to or in respect of the taxpayer immediately before the death of the deceased pensioner concerned (which pension or allowance is in this paragraph called the `original pension or allowance') was an excepted payment;
(iii) the deceased pensioner had attained age-pension age;
(iv) no part of the original pension or allowance would have been an excepted payment if the deceased pensioner had not attained age-pension age before the death;
so much of that payment under that subsection as represents an amount covered by paragraph (a) of that subsection;
(r) if:
(i) a payment is made to or in respect of the taxpayer under subsection 57A (2) of the Veterans' Entitlements Act 1986; and
(ii) neither paragraph (p) nor (q) of this subsection applies to so much of that payment as represents an amount covered by paragraph 57A (2) (a) of that Act (which part of that payment is in this paragraph called the `paragraph 57A (2) (a) amount');
so much of the paragraph 57A (2) (a) amount as does not represent an excepted payment;
(s) so much of a payment under subsection 57A (2) of the Veterans' Entitlements Act 1986 as represents an amount covered by paragraph (b) of that subsection;
(t) in the case of a taxpayer to whom paragraph 57A (3) (a) of the Veterans' Entitlements Act 1986 applies - so much of the total excepted payments made to or in respect of the taxpayer under that Act on any one of the 7 pension pay-days after the death of the deceased pensioner concerned as exceeds the total excepted payments that would have been payable to or in respect of the taxpayer on that pension pay-day if the deceased pensioner had not died;
(u) if paragraph 57A (3) (b) of the Veterans' Entitlements Act 1986 applies to the taxpayer - so much of the sum of:
(i) the excepted payments made to the taxpayer under that Act:
(A) on the first available pension pay-day after the
notification day referred to in subparagraph 57A (3) (b) (i) of that Act; and
(B) on a subsequent pension pay-day, being one of the 7
pension pay-days after the death of the deceased pensioner concerned; and
(ii) the payment made to the taxpayer under subparagraph 57A (3) (b) (ii) of that Act;
as does not exceed the amount obtained by:
(iii) ascertaining for:
(A) the first available pension pay-day after the
notification day referred to in subparagraph 57A (3) (b) (i) of that Act; and
(B) each subsequent pension pay-day, being one of the 7
pension pay-days after the death of the deceased pensioner concerned;
the amount calculated using the following formula:
Notional CMR - Notional NR
where:
`Notional CMR' (Notional Combined Married Rate) means the sum of:
(C) so much of the amount that would have been payable to
the taxpayer on the pension pay-day if the deceased pensioner had not died as is not an excepted payment; and
(D) the amount that would have been payable to the deceased
pensioner on the pension pay-day if the deceased pensioner had not died;
`Notional NR' (Notional New Rate) means so much of the amount that would have been payable to the taxpayer as an unmarried person on the pension pay-day as is not an excepted payment; and
(iv) aggregating the amounts calculated under subparagraph (iii) of this paragraph;
(w) payments under subsection 57A (4) or section 57C or 57D of the Veterans' Entitlements Act 1986;
(y) payments under section 98A of the Veterans' Entitlements Act 1986;
(z) payments under section 24B of the Seamen's War Pensions and Allowances Act 1940.";
(p) by inserting after subsection (3) the following subsections:
"(3A) Subsections 66 (6), (12), (13) and (14) of the Social Security Act 1947 apply in working out amounts covered by paragraphs (3) (j) and (k) of this section in a corresponding way to the way in which those subsections apply in working out amounts referred to in section 66 of that Act.
"(3B) Subsections 57A (6), (12), (13) and (14) of the Veterans' Entitlements Act 1986 apply in working out amounts covered by paragraphs (3) (t) and (u) of this section in a corresponding way to the way in which those subsections apply in working out amounts referred to in section 57A of that Act.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 11
Exemption of foreign branch profits of Australian companies

11. Section 23AH of the Principal Act is amended:
(a) by omitting from paragraph (6) (c) "the asset" and substituting "during the period after the start of the year of income immediately preceding the disposal year of income when the asset was owned by the taxpayer, the asset";
(b) by omitting paragraph (6) (d) and substituting the following
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paragraph:
"(d) the disposal is not a disposal of a taxable
Australian asset of the taxpayer;";
(c) by omitting from paragraph (7) (c) "the partnership asset" and substituting "during the period after the start of the year of income immediately preceding the disposal year of income when the partnership asset was a partnership asset of the partnership, the partnership asset";
(d) by omitting paragraph (7) (d) and substituting the following paragraph:
"(d) the disposal of the taxpayer's asset is not a
disposal of a taxable Australian asset of the taxpayer;";
(e) by inserting after subsection (8) the following subsection:
"(8A) Where:
(a) a taxpayer, being a company, disposes of an asset; and
(b) a loss of a capital nature is incurred by the taxpayer in respect of the disposal; and
(c) if, instead, a gain or profit of a capital nature had accrued to the taxpayer in respect of the disposal, that gain or profit would be a foreign branch capital gain;
no capital loss is incurred by the taxpayer under Part IIIA in respect of the disposal of the asset.";
(f) by inserting after subsection (9) the following subsection:
"(9A) Where:
(a) a taxpayer, being the trustee of a trust estate, disposes of an asset; and
(b) a loss of a capital nature is incurred by the taxpayer in respect of the disposal; and
(c) if, instead, a gain or profit of a capital nature had accrued to the taxpayer in respect of the disposal, that gain or profit would be a foreign branch capital gain; and
(d) a capital loss is incurred by the taxpayer under Part IIIA in respect of the disposal of the asset; and
(e) if no capital loss had been incurred by the taxpayer under Part IIIA in respect of the disposal of the asset, the following conditions would have been satisfied in relation to another taxpayer (in this subsection called the `actual taxpayer'):
(i) the actual taxpayer is a company;
(ii) an amount (in this subsection called the `included amount') would have been included in the assessable income of the actual taxpayer of a year of income under subsection 92 (1) or section 97, 98A or 100;
the assessable income of the actual taxpayer of the year of income includes so much of the included amount as is attributable to a period when the actual taxpayer was a resident.";
(g) by omitting from subsection (10) "and (8)" and substituting ", (8), (8A) and (9A)".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 12
Distribution benefits - CFCs

12. Section 47A of the Principal Act is amended:
(a) by omitting from paragraph (2) (a) "either" and substituting "any";
(b) by omitting subparagraph (2) (a) (ii) and substituting the following subparagraphs:
"(ii) by virtue of subsection (1), the whole or a part of the distribution payment would, apart from section 23AI or 23AJ, be included in the assessable income of a taxpayer of the year of income in which the distribution time occurred under section 44;
(iii) by virtue of subsection (1), an amount is included in
the assessable income of a taxpayer of a year of income under section 458 in respect of the distribution payment;
(iv) by virtue of subsection (1), an amount would, apart
from section 365 or Division 6 of Part X, be included in the assessable income of a taxpayer of a year of income under section 458 in respect of the distribution payment; and";
(c) by omitting paragraph (2) (b) and substituting the following paragraph:
"(b) both of the following subparagraphs apply:
(i) the taxpayer's return of income for the year of income was not prepared on the basis that the distribution payment had the consequence specified in subsection (1);
(ii) the taxpayer has not notified the Commissioner, in writing, within 12 months after the end of the year of income, that the distribution payment had the consequence specified in subsection (1);";
(d) by inserting after subsection (18) the following subsections:
"(18A) An assessment may be made of a taxpayer on the assumption that subsection (2) will not be applicable in relation to a particular distribution payment made during a year of income of the taxpayer.
"(18B) Where:
(a) the assessment mentioned in subsection (18A) is made; and
(b) after the making of the assessment, the Commissioner becomes aware that subsection (2) was applicable in relation to the distribution payment concerned;

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then, in spite of anything in section 170, the Commissioner may amend the assessment at any time for the purposes of ensuring that the assessment is made as if subsection (18A) of this section were disregarded.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 13
Bad debts

13. Section 63 of the Principal Act is amended by omitting from subsection (3) "that amount" and substituting "the lesser of:
(a) the amount received; and
(b) the deduction, as reduced by any amount previously included in the taxpayer's assessable income under this subsection in respect of the debt.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 14

14. After section 63C of the Principal Act the following section is inserted:
Bad debts of money-lenders not allowable deductions
where attributable to listed country branches
"63D. (1) Where:
(a) apart from this section, a deduction would be allowable to a taxpayer under section 51 or 63 in respect of the writing off of a debt as bad; and
(b) the debt was created or acquired in the ordinary course of a money-lending business of the taxpayer who carries on that business; and
(c) during any part or parts (which part or the total of which parts is in this subsection called the `listed country branch period') of the period since the debt was so created or acquired (in this subsection called the `debt holding period'), it is the case that, if income had been derived by the taxpayer in respect of the debt, the income would not, because of section 23AH, have been included in the assessable income of the taxpayer;
then only so much of the deduction is allowable as equals the amount calculated using the formula:
Debt holding period - Listed country branch period
Eligible debt term
where:
`Debt holding period' means the number of days in the debt holding period;
`Listed country branch period' means the number of days in the listed country branch period;
`Eligible debt term' means:
(d) where the debt was acquired from a person other than an associate, within the meaning of Part IIIA - the number of days in the debt holding period; or
(e) in any other case - the number of days in the period beginning on the day on which the debt was created (whether by the taxpayer or another person) and ending at the end of the day on which it was written off.
"(2) Where a debt that is written off was acquired from another person, the creation, and any previous acquisition, of the debt is to be disregarded for the purposes of applying subsection (1), other than paragraph (1) (e).".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 15
Certain provisions to be disregarded in calculating attributable income

15. Section 102AAW of the Principal Act is amended by omitting "and 459" and substituting ", 459 and 459A".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 16

16. After section 102AAZB of the Principal Act the following section is inserted:
Modified application of Part IIIA - effect of certain changes of residence
"102AAZBA. For the purposes of applying this Act in calculating the attributable income of a trust estate of a year of income (in this section called the `attributable income year'), where:
(a) disregarding the assumption in paragraph 102AAZB (b), at any time (in this section called the `residence-change time') during the attributable income year or an earlier year of income, the trust estate ceased to be a resident trust estate or a resident unit trust, as the case may be, within the meaning of Part IIIA and became a non-resident trust estate; and
(b) the trust estate owned an asset at the residence-change time; and
(c) the trust estate disposed of the asset during the attributable income year; and
(d) subsection 160M (9) or (10) applies to the asset in respect of the change of residence for the purposes of the application of this Act apart from this Subdivision;
then sections 411 to 417 (inclusive) apply to the asset as if:
(e) those sections had effect for the purposes of calculating attributable income under this Subdivision instead of Part X; and
(f) any reference in those sections to an eligible CFC were a reference to the trust estate; and
(g) any reference in those sections to a 30 June 1990 non-taxable Australian asset were a reference to the asset; and
(h) any reference in those sections relating to 30 June 1990 or 1 July 1990 were a reference relating respectively to the residence-change time or a time immediately after the residence-change time; and
(j) the following provisions were omitted:
(i) sub-subparagraphs 412 (2) (a) (i) (B) and (ii) (B);
(ii) subparagraphs 414 (2) (a) (ii) and (b) (ii);
(iii) subparagraphs 415 (2) (a) (ii) and (b) (ii);

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(iv) subparagraphs 416 (2) (a) (ii) and (b) (ii);
(v) subparagraphs 417 (2) (a) (ii) and (b) (ii).".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 17
Interpretation

17. Section 122 of the Principal Act is amended:
(a) by omitting "in Australia" (wherever occurring) from the definition of "mining or prospecting right" in subsection (1);
(b) by omitting "in Australia" from the definition of "prescribed mining operations" in subsection (1).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 18
Exploration and prospecting expenditure

18. Section 122J of the Principal Act is amended by omitting from subsection (1) and subparagraph (4D) (b) (i) "in Australia".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 19
Interpretation

19. Section 122JB of the Principal Act is amended:
(a) by omitting "in Australia" from the definition of "eligible quarrying operations" in subsection (1);
(b) by omitting "in Australia" (wherever occurring) from the definition of "quarrying or prospecting right" in subsection (1).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 20
Exploration and prospecting expenditure

20. Section 122JF of the Principal Act is amended by omitting from subsection (1) and subparagraph (7) (b) (i) "in Australia".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 21
Application of Subdivision

21. Section 123A of the Principal Act is amended by omitting from subsections (1) and (1A) "in Australia" (wherever occurring).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 22
Application of Subdivision

22. Section 123BD of the Principal Act is amended by omitting from subsection (1) "in Australia".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 23
Interpretation

23. Section 124 of the Principal Act is amended by omitting "in Australia" from the definition of "prescribed petroleum operations" in subsection (1).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 24
Allowable capital expenditure in respect of cash bidding payments for exploration permits and production licences

24. Section 124ABA of the Principal Act is amended by adding at the end the following subsection:
"(7) Where:
(a) a law of a foreign country is declared by the regulations to contain provisions equivalent to those of Divisions 2 and 3 of Part III of the Petroleum Act; and
(b) the Commissioner considers that, if the preceding provisions of this section had applied in relation to the law of the foreign country in the same way, with appropriate modifications, as they apply in relation to Divisions 2 and 3 of Part III of the Petroleum Act, the taxpayer would have been taken by this section to have incurred an amount of expenditure of a capital nature at a particular time;
then the taxpayer is taken by this section to have incurred that amount of expenditure at that time.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 25
Exploration and prospecting expenditure

25. Section 124AH of the Principal Act is amended by omitting from subsection (1) and subparagraph (4C) (b) (i) "in Australia".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 26
Prospecting or mining by contractors, profit-sharing arrangements etc.

26. Section 124AJ of the Principal Act is amended by omitting from subsections (2) and (3) "in Australia".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 27
Double deductions

27. Section 124AN of the Principal Act is amended by omitting from subsection (2) "in Australia".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 28
Interpretation

28. Section 124K of the Principal Act is amended by omitting from subsection (1) the definition of "unit of industrial property" and substituting the following definition:
"`unit of industrial property' means:
(a) rights possessed by a person under a law of Australia as:
(i) the grantee or proprietor of a patent for an invention;
or
(ii) the owner of a copyright; or
(iii) the owner of a registered design; or
(iv) a licensee under such a patent, copyright or design;
and includes equitable rights in respect of such a patent, copyright or design or in respect of a licence under such a patent, copyright or design; or
(b) rights possessed by a person under a law of a foreign country that are
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equivalent to the rights referred to in paragraph (a).".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 29
Interpretation

29. Section 124ZF of the Principal Act is amended by omitting from subsection (1) the definition of "research and development activities" and substituting the following definition: " `research and development activities' means activities that:
(a) either:
(i) are research and development activities for the purposes of section 73B; or
(ii) would be research and development activities for the purposes of that section if either or both of the following amendments were made:
(A) an amendment of the definition of `research and development activities' in subsection (1) of that section so that references in that definition to activities carried on in Australia included references to activities carried on outside Australia;
(B) an amendment of subsection (2A) of that section so that references in that subsection to an eligible company included references to a person other than an eligible company; and
(b) are carried on by a person in connection with a business carried on by the person for the purposes of gaining or producing assessable income;".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 30
Qualifying expenditure

30. Section 124ZG of the Principal Act is amended by omitting from paragraph (2A) (a) "in Australia" (wherever occurring).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 31
Interpretation

31. Section 159GZZJ of the Principal Act is amended by omitting "or (c)" from paragraph (c) of the definition of "notional writing-down assumptions".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 32
Rebate for medical expenses

32. Section 159P of the Principal Act is amended by omitting from subsection (3A) "21%" and substituting "20%".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 33
Passive income

33. Section 160AEA of the Principal Act is amended by omitting "or 459" from paragraph (n) of the definition of "passive income" in subsection (1) and substituting ", 459 or 459A".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 34
Interpretation

34. Section 160APA of the Principal Act is amended:
(a) by inserting after paragraph (a) of the definition of "applicable general company tax rate" the following paragraph:
"(aa) in relation to an amount calculated for a year of income using the formula in any of the following provisions:
(i) sections 160APVA to 160APVE (inclusive);
(ii) sections 160AQCD to 160AQCH (inclusive);
the general company tax rate for the year of tax to which the year of income relates;";
(b) by inserting the following definitions:
" `AD/RLA component' has the same meaning as in Division 8
of Part III;
`CS/RA component' has the same meaning as in Division 8 of
Part III;
`mutual life assurance company' has the same meaning as in
Division 8 of Part III;
`NCS component' has the same meaning as in Division 8 of
Part III;
`non-fund component' has the same meaning as in Division 8
of Part III;".
35. After section 160APHA of the Principal Act the following section is inserted:
Life assurance companies - application of rebates against
components of taxable income
"160APHB. (1) This section applies in working out any of the following for the purposes of this Part:
(a) how much of the company tax assessed to a life assurance company for a year of income is attributable to the non-fund component;
(b) how much of an amount of a reduction or increase in the company tax of a life assurance company for a year of income is attributable to the non-fund component;
(c) how much of the estimated tax of a life assurance company for a year of income relates to the following components of taxable income:
(i) the CS/RA component;
(ii) the AD/RLA component;
(iii) the NCS component.
"(2) Rebates of tax (other than rebates under section 46 or 46A) are taken to be applied against components of taxable income in the following order:
(a) components other than the non-fund component;
(b) the non-fund component.".

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TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 36

36. After section 160APK of the Principal Act the following section is inserted:
No credits of a mutual life assurance company or SGIO
"160APKA. A franking credit of a mutual life assurance company or SGIO does not arise after 21 August 1990.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 37
Receipt of franked dividends

37. Section 160APP of the Principal Act is amended by omitting from subsection (5) "No franking credit arises" and substituting "The franking credit is to be reduced by 80%".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 38
Receipt of franked dividends through trusts and partnerships

38. Section 160APQ of the Principal Act is amended by omitting from subsection (3) "No franking credit arises" and substituting "The franking credit is to be reduced by 80%".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 39

39. After section 160APV of the Principal Act the following sections are inserted:
Life assurance companies - credit reducing section 160APYA debit
"160APVA. (1) Where, on a particular day, a franking debit of a life assurance company arises under section 160APYA in relation to an initial payment of tax made by the company under section 221AP in respect of a year of income (in this section called the `current year of income') that was applied by the Commissioner, there arises on that day a franking credit of the company worked out under subsection (2) of this section.
"(2) The amount of the franking credit is equal to the adjusted amount in relation to the amount calculated for the current year of income using the formula:
Preceding Non-fund component
Initial year's - of preceding year's
0.8 X payment X company tax company tax
applied
Preceding year's company tax
where:
`Initial payment applied' means the amount of the initial payment of tax that was so applied;
`Preceding year's company tax' means the company tax assessed to the company for the year of income (in this subsection called the `preceding year of income') that immediately preceded the current year of income;
`Non-fund component of preceding year's company tax' means so much of the company tax assessed to the company for the preceding year of income as is attributable to the non-fund component.
Life assurance companies - credit reducing section 160APYAA debit
"160APVB. (1) Where, on a particular day, a franking debit of a life assurance company arises under section 160APYAA in relation to a further payment on account of tax in respect of a year of income (in this section called the `current year of income') that was applied by the Commissioner, there arises on that day a franking credit of the company worked out under subsection (2) of this section.
"(2) The amount of the franking credit is equal to the adjusted amount in relation to the amount calculated for the current year of income using the formula:
Preceding Non-fund component
Further year's - of preceding year's
0.8 X payment X company tax company tax
applied
Preceding year's company tax
where:
`Further payment applied' means the amount of the further payment that was so applied;
`Preceding year's company tax' means the company tax assessed to the company for the year of income (in this subsection called the `preceding year of income') that immediately preceded the current year of income;
`Non-fund component of preceding year's company tax' means so much of the company tax assessed to the company for the preceding year of income as is attributable to the non-fund component.
Life assurance companies - credit reducing section 160APYB debit
"160APVC. (1) Where, on a particular day, a franking debit of a life assurance company arises under section 160APYB in relation to an amount received as a refund in relation to a year of income (in this section called the `current year of income'), there arises on that day a franking credit of the company worked out under subsection (2) of this section.
"(2) The amount of the franking credit is equal to the adjusted amount in relation to the amount calculated for the current year of income using the formula:
Preceding Non-fund component
Refunded year's - of preceding year's
0.8 X amount X company tax company tax
Preceding year's company tax

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where:
`Refunded amount' means the amount received as a refund;
`Preceding year's company tax' means the company tax assessed to the company for the year of income (in this subsection called the `preceding year of income') that immediately preceded the current year of income;
`Non-fund component of preceding year's company tax' means so much of the company tax assessed to the company for the preceding year of income as is attributable to the non-fund component.
Life assurance companies - credit reducing section 160APZ debit
"160APVD. Where, on a particular day, a franking debit of a life assurance company arises under section 160APZ in relation to a reduction in the company tax of the company for a year of income, there arises on that day a franking credit of the company equal to the adjusted amount in relation to the amount calculated using the formula:
0.8 X Overall Non-fund
reduction - component
of reduction
where:
`Overall reduction' means the amount of the reduction;
`Non-fund component of reduction' means so much of the amount of the reduction as is attributable to the non-fund component.
Life assurance companies - credit reducing section 160AQA debit
"160APVE. Where, on a particular day, a franking debit of a life assurance company arises under section 160AQA in relation to a foreign tax credit, or an increase in a foreign tax credit, allowable in relation to a year of income, there arises on that day a franking credit of the company equal to the adjusted amount in relation to the amount calculated using the formula:
Original/increased Non-fund component
0.8 X foreign tax credit - of original/increased
foreign tax credit
where:
`Original/increased foreign tax credit' means the amount of the foreign tax credit or of the increase, as the case requires;
`Non-fund component of original/increased foreign tax credit' means so much of the foreign tax credit or of the increase, as the case requires, as is attributable to the non-fund component.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 40

40. After section 160APW of the Principal Act the following section is inserted:
No debits of a mutual life assurance company or SGIO
"160APWA. A franking debit of a mutual life assurance company or SGIO does not arise after 21 August 1990.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 41
Waiver of franking deficit tax

41. Section 160APYC of the Principal Act is amended:
(a) by inserting in paragraph (a) "or (e)" after "(c)";
(b) by omitting from paragraph (b) "tax." and substituting "tax; or";
(c) by adding at the end the following paragraph:
"(c) if paragraph 160AQJ (2) (f) applies - the adjusted amount in relation to so much of the amount of the relevant franking deficit tax referred to in that paragraph as is equal to the amount calculated using the formula:
Initial payment - (0.8 X Fund component)
where:
`Initial payment' means the amount of the initial payment of tax;
`Fund component' means so much of the initial payment of tax as is attributable to so much of the estimated tax as relates to the following components of taxable income:
(i) the CS/RA component;
(ii) the AD/RLA component;
(iii) the NCS component.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 42

42. After section 160AQCC of the Principal Act the following sections are inserted:
Life assurance companies - debit reducing section 160APMA credit
"160AQCD. (1) Where, on a particular day, a franking credit of a life assurance company arises under section 160APMA in relation to an initial payment of tax that the company is required to make under section 221AP in respect of a year of income (in this section called the `current year of income') there arises on that day a franking debit of the company worked out under subsection (2) of this section.
"(2) The amount of the franking debit is equal to the adjusted amount in relation to the amount calculated for the current year of income using the formula:
Preceding Non-fund component
Initial year's - of preceding year's
0.8 X payment X company tax company tax
Preceding year's company tax
where:
`Initial payment' means the initial payment of tax;
`Preceding year's company tax' means the company tax assessed to the company
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for the year of income (in this subsection called the `preceding year of income') that immediately preceded the current year of income;
`Non-fund component of preceding year's company tax' means so much of the company tax assessed to the company for the preceding year of income as is attributable to the non-fund component.
Life assurance companies - debit reducing section 160APMB credit
"160AQCE. (1) Where, on a particular day, a franking credit of a life assurance company arises under section 160APMB in relation to a further payment on account of tax in respect of a year of income (in this section called the `current year of income'), there arises on that day a franking debit of the company worked out under subsection (2) of this section.
"(2) The amount of the franking debit is equal to the adjusted amount in relation to the amount calculated for the current year of income using the formula:
Preceding Non-fund component
Further year's of preceding year's
0.8 X payment X company tax company tax
Preceding year's company tax
where:
`Further payment' means the amount of the further payment;
`Preceding year's company tax' means the company tax assessed to the company for the year of income (in this subsection called the `preceding year of income') that immediately preceded the current year of income;
`Non-fund component of preceding year's company tax' means so much of the company tax assessed to the company for the preceding year of income as is attributable to the non-fund component.
Life assurance companies - debit reducing section 160APN or 160APNA credit
"160AQCF. Where, on a particular day, a franking credit of a life assurance company arises under section 160APN or 160APNA in relation to an original company tax assessment for a year of income, there arises on that day a franking debit of the company equal to the adjusted amount in relation to the amount calculated using the formula:
Company Non-fund
0.8 X tax - component of
company tax
where:
`Company tax' means the company tax assessed to the company;
`Non-fund component of company tax' means so much of the company tax assessed to the company for the year of income as is attributable to the non-fund component.
Life assurance companies - debit reducing section 160APR credit
"160AQCG. Where, on a particular day, a franking credit of a life assurance company arises under section 160APR in relation to an increase in the company tax of the company for a year of income, there arises on that day a franking debit of the company equal to the adjusted amount in relation to the amount calculated using the formula:
Overall increase Non-fund
0.8 X - component of
increase
where:
`Overall increase' means the amount of the increase;
`Non-fund component of increase' means so much of the increase as is attributable to the non-fund component.
Life assurance companies - debit reducing section 160APT credit
"160AQCH. Where, on a particular day, a franking credit of a life assurance company arises under section 160APT in relation to a reduction of a foreign tax credit allowable in relation to a year of income, there arises on that day a franking debit of the company equal to the adjusted amount in relation to the amount calculated using the formula:
0.8 X Overall reduction Non-fund
- component of
reduction
where:
`Overall reduction' means the amount of the reduction;
`Non-fund component of reduction' means so much of the reduction as is attributable to the non-fund component.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 43
Liability to franking deficit tax

43. Section 160AQJ of the Principal Act is amended:
(a) by inserting in paragraphs (2) (c) and (d) "the company is not a life assurance company and" after "if";
(b) by omitting from paragraph (2) (d) "excess." and substituting "excess; or";
(c) by adding at the end of subsection (2) the following paragraphs:
"(e) if the company is a life assurance company and the amount of the relevant franking deficit tax does not exceed the amount calculated using the formula:
Initial payment - (0.8 X Fund component)
where:
`Initial payment' means the amount of the initial payment

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of tax;
`Fund component' means so much of the initial payment of
tax as is attributable to so much of the estimated tax as relates to the following components of taxable income:
(i) the CS/RA component;
(ii) the AD/RLA component;
(iii) the NCS component;
the company is not liable to pay tax under subsection (1) in respect of that franking year; or
(f) if the company is a life assurance company and the amount of the relevant franking deficit tax exceeds the amount calculated using the formula:
Initial payment - (0.8 X Fund component)
where:
`Initial payment' means the amount of the initial payment
of tax;
`Fund component' means so much of the initial payment of
tax as is attributable to so much of the estimated tax as relates to the following components of taxable income:
(i) the CS/RA component;
(ii) the AD/RLA component;
(iii) the NCS component;
the tax that the company is liable to pay under subsection (1) in respect of that franking year is an amount equal to the excess.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 44
Assets to which Part applies

44. Section 160A of the Principal Act is amended:
(a) by omitting from paragraph (b) "and";
(b) by omitting from paragraph (c) "acquired," and substituting "acquired;";
(c) by inserting after paragraph (c) the following paragraphs:
"(d) a taxpayer's interest in a partnership asset of a
partnership in which the taxpayer is a partner; and
(e) so much of a taxpayer's interest in a partnership as
is not covered by paragraph (d);".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 45
Taxpayer

45. Section 160C of the Principal Act is amended by adding at the end the following subsection:
"(3) In calculating the net income of a partnership, or a partnership loss, in accordance with section 90, the partnership is not taken to be a taxpayer for the purposes of this Part.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 46
Associated persons

46. Section 160E of the Principal Act is amended:
(a) by omitting from subparagraphs (a) (iv), (b) (iii) and (c) (i)", partnerships";
(b) by adding "or" at the end of paragraph (b);
(c) by omitting "or" from the end of paragraph (c);
(d) by omitting paragraph (d).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 47
Resident trust estates and unit trusts

47. Section 160H of the Principal Act is amended by omitting subsection (2).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 48
Part applies in respect of disposals of assets

48. Section 160L of the Principal Act is amended:
(a) by omitting from subsection (5) "an asset of a partnership" and substituting "a taxpayer's interest in a partnership asset of a partnership in which the taxpayer is a partner";
(b) by omitting from paragraph (5) (a) "its disposal, the" and substituting "the disposal, the partnership".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 49
What constitutes a disposal or acquisition

49. Section 160M of the Principal Act is amended:
(a) by omitting subsection (11);
(b) by omitting from subsection (11A) "or (11)";
(c) by omitting from subsection (11A) "or a partnership ceased to be a resident partnership, as the case may be,";
(d) by omitting from paragraph (11B) (a) "or (11)";
(e) by omitting from paragraph (11B) (a) "or a partnership ceased to be a resident partnership, as the case may be";
(f) by omitting from paragraph (11B) (c) "or (11), as the case may be,";
(g) by omitting from paragraph (11B) (d) "or (11)";
(h) by omitting subsection (12A) and substituting the following subsections:
"(12A) Where, at a particular time (in this section called
the `residence-change time'), a company that is a CFC ceases to be a resident of an unlisted country or a listed country and becomes a resident within the meaning of section 6, then:
(a) subsection (12) does not apply; and

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(b) subsections (12AA) and (12AB) apply.
"(12AA) For the purposes of the application of this Part, sections 411 to 417 (inclusive) have, subject to subsection (12AB), the same effect, in relation to every 30 June 1990 non-taxable Australian asset of the company owned by the company at the residence-change time, as they would have if the taxable income, instead of the attributable income, of the company were being calculated under those sections.
"(12AB) If any capital gain on a 30 June 1990 non-taxable Australian asset in respect of the period before the residence-change time was subject to tax in a listed country, then, for the purposes of the application of this Part, sections 411 to 417 (inclusive) have the same effect in relation to the asset as they would have if:
(a) the taxable income, instead of the attributable income, of the company were being calculated under those sections; and
(b) any reference in those sections relating to 30 June 1990 or 1 July 1990 were a reference relating respectively to the residence-change time or a time immediately after the residence-change time.";
(j) by omitting from subsection (12B) "subsection (12A)" and substituting "subsections (12A) to (12AB)";
(k) by inserting before the definition of "CFC" in subsection (12B) the following definitions:
" `30 June 1990 non-taxable Australian asset' has the same meaning as in Part X;
`attributable income' has the same meaning as in Part X;";
(m) by adding at the end of subsection (12B) the following definition:
" `subject to tax' has the same meaning as in Part X.";
(n) by omitting subsection (15).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 50
Disposal of taxable Australian assets

50. Section 160T of the Principal Act is amended:
(a) by omitting paragraph (e);
(b) by inserting in subparagraph (j) (iii) ", 160ZZNA" after "160ZZMN.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 51
Capital gains and capital losses

51. (1) Section 160Z of the Principal Act is amended by inserting in subsection (5) ", subparagraph 160ZZO (1) (g) (iv), subsection 160ZZRE (3) or (4)" after "160ZM (2)".
(2) Section 160Z of the Principal Act is amended by inserting in subsection (5) "or (h) (iv)" after "160ZZO (1) (g) (iv)".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 52
Reductions of capital gains where amount otherwise assessable

52. Section 160ZA of the Principal Act is amended:
(a) by omitting subsections (1), (2) and (3);
(b) by adding at the end the following subsections:
"(5) Where:
(a) apart from this subsection, a capital gain (in this subsection called the `notional capital gain') would be taken for the purposes of this Part to have accrued to a taxpayer during the year of income in respect of the disposal of an asset (in this subsection called the `taxpayer's asset'); and
(b) the taxpayer's asset is the taxpayer's interest in a partnership asset of a partnership in which the taxpayer is a partner; and
(c) as a result of the disposal, an amount or amounts (in this subsection and subsection (6) called the `included amount' or the `included amounts') has or have been, or will be, included in the assessable income of the partnership of any year of income under a provision of this Act other than this Part (not being an amount or amounts so included under a provision having effect where the partnership recoups capital expenditure which was incurred in respect of an asset and in respect of which a deduction has been allowed or is allowable to the partnership);
the following provisions have effect:
(d) if the notional capital gain exceeds the partner's portion of the included amount or included amounts - the amount of the capital gain that is taken for the purposes of this Part to have accrued to the taxpayer during the year of income in respect of the disposal of the taxpayer's asset is an amount equal to the excess;
(e) if the notional capital gain does not exceed the partner's portion of the included amount or included amounts - no capital gain is taken for the purposes of this Part to have accrued to the taxpayer during the year of income in respect of the disposal of the taxpayer's asset.
"(6) A reference in subsection (5) to the partner's portion of the included amount or included amounts is a reference to so much of the individual interest of the partner in the net income, or the partnership loss, of the partnership as is attributable to the included amount or sum of the included amounts.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 53
Consideration in respect of disposal

53. Section 160ZD of the Principal Act is amended:
(a) by omitting from paragraph (5) (a) "of a partnership or";
(b) by omitting from paragraph (5) (b) "in the partnership or".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 54

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54. After section 160ZFA of the Principal Act the following section is inserted:
Adjustment where change of residence by a company from unlisted
country to listed country
"160ZFB. (1) Where:
(a) because a company has, at a particular time (in this section called the `residence-change time'), ceased to be a resident of an unlisted country and become a resident of a listed country, an amount is or has been included in a taxpayer's assessable income under section 457 (including under that section because of paragraph 58 (1) (d) of the Taxation Laws Amendment (Foreign Income) Act 1990); and
(b) the company later disposes (which disposal is in this section called the `actual disposal') of a taxable Australian asset (in this section called the `eligible asset') that it has held since the residence-change time;
then the consideration in respect of the actual disposal of the eligible asset is, for the purposes of this Part, adjusted in accordance with this section.
"(2) Where:
(a) the result of making the assumption, in subparagraph 457 (2) (a) (i) of this Act or in paragraph 58 (2) (a) of the Taxation Laws Amendment (Foreign Income) Act 1990, that all of the company's assets were disposed of at the residence-change time for a consideration equal to their market value was:
(i) to increase, by a particular amount (in this section called the `DP creation/increase amount'), the amount that would otherwise be the distributable profits referred to in that subparagraph or paragraph; or
(ii) to create distributable profits of a particular amount (in this section also called the `DP creation/increase amount') where there would otherwise not be distributable profits; and
(b) if the eligible asset had been disposed of by the company at the residence-change time for its market value at that time, the company would have made a profit (in this section called the `eligible asset profit') on the disposal;
then the consideration in respect of the actual disposal of the eligible asset by the company is reduced by the amount calculated using the formula:
Eligible asset profit X DP creation/increase amount
Total asset profits
where:
`Eligible asset profit' means the amount of the eligible asset profit;
`Total asset profits' means the amount that would result if:
(c) the company disposed of all of its assets at the residence-change time for their market value; and
(d) the total of the profits from only those disposals that would have resulted in a profit to the company were calculated;
`DP creation/increase amount' means the DP creation/increase amount.
"(3) Where:
(a) the result of making the assumption, in subparagraph 457 (2) (a) (i) of this Act or in paragraph 58 (2) (a) of the Taxation Laws Amendment (Foreign Income) Act 1990, that all of the company's assets were disposed of at the residence-change time for a consideration equal to their market value was to reduce (including to nil), by an amount (in this section called the `DP reduction amount'), the amount that would otherwise be the distributable profits referred to in that subparagraph or paragraph; and
(b) if the eligible asset had been disposed of by the company at the residence-change time for its market value at that time, the company would have made a loss (in this section called the `eligible asset loss') on the disposal;
then the consideration in respect of the actual disposal of the eligible asset by the company is increased by the amount calculated using the formula:
Eligible asset loss X DP reduction amount
Total asset losses
where:
`Eligible asset loss' means the amount of the eligible asset loss;
`Total asset losses' means the amount that would result if:
(c) the company disposed of all of its assets at the residence-change time for their market value; and
(d) the total of the losses from only those disposals that would have resulted in a loss to the company were calculated;
`DP reduction amount' means the DP reduction amount.
"(4) In this section:
`resident of a listed country' has the same meaning as in Part X;
`resident of an unlisted country' has the same meaning as in Part X.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 55
Reduction of amounts for purposes of reduced cost base

55. Section 160ZK of the Principal Act is amended:
(a) by inserting in subsection (1) "(other than the taxpayer's interest in a partnership asset of a partnership in which the taxpayer is a partner)" after "asset" (first occurring);
(b) by adding at the end the following subsections:
"(3) A reference in subsection 160ZH (3) to the reduced amount of any consideration, the reduced amount of incidental costs, or the reduced amount of any expenditure, in respect of an asset (in this subsection called the
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`taxpayer's asset'), being a taxpayer's interest in a partnership asset of a partnership in which the taxpayer is a partner, is a reference to the sum of:
(a) the amount of the consideration, the amount of the costs or the amount of the expenditure, as the case may be, reduced by any part of the consideration, of the costs or of the expenditure that has been allowed or is allowable, or would apart from section 61 be allowable, as a deduction to the partnership in respect of any year of income; and
(b) any amount that, as a result of the disposal of the taxpayer's asset by the taxpayer, is included in the assessable income of the partnership of any year of income by virtue of a provision of this Act other than this Part and is attributable to the part of the consideration, the part of the costs or the part of the expenditure, as the case may be, that was allowed or is allowable as a deduction.
"(4) The reference in paragraph (3) (b) to an amount that is included in the assessable income of the partnership includes a reference to an amount that is taken by subsection 60 (1A) to be so included for the purposes of subsection 60 (1).".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 56
Transfer of assets from company or trust to spouse uponl 25310 breakdown of marriage

56. Section 160ZZMA of the Principal Act is amended by omitting from subsection (6) ", partnerships".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 57
Transfer of asset to wholly-owned company

57. Section 160ZZN of the Principal Act is amended:
(a) by omitting paragraph (2) (ca);
(b) by omitting subsections (6) and (6A).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 58

58. After section 160ZZN of the Principal Act the following section is inserted:
Transfer of partnership assets to wholly-owned company
"160ZZNA. (1) In this section:
`asset' does not include a personal-use asset.
"(2) This section applies where:
(a) 2 or more taxpayers (in this section called the `ex-partners'), being all of the partners in a partnership, dispose of their interests in a partnership asset of the partnership (which partnership asset is in this section called the `eligible asset') to a company; and
(b) subject to subsection (12), the consideration in respect of the disposal consists only of non-redeemable shares in the company (which shares are in this section called the `replacement shares'); and
(c) the market value of the replacement shares is substantially the same as the market value of the eligible asset, reduced, if the company assumes in connection with the disposal a liability or liabilities in respect of the eligible asset, by the amount of the liability or the total of the amounts of the liabilities; and
(d) immediately after the disposal:
(i) all of the shares in the company are beneficially owned
by the ex-partners; and
(ii) each ex-partner holds the shares in the company in the
same proportions as the ex-partner held the ex-partner's interest in the eligible asset immediately before the disposal; and
(e) in the case of an ex-partner, being a taxpayer other than a taxpayer in the capacity of a trustee - one of the following subparagraphs applies:
(i) both the taxpayer and the company are residents of
Australia at the time of the disposal;
(ii) all of the following conditions are satisfied:
(A) the taxpayer is not a resident of Australia at the time
of the disposal;
(B) the company is a resident of Australia at the time of the
disposal;
(C) the disposal is a disposal of a taxable Australian asset;
(iii) all of the following conditions are satisfied:
(A) the company is not a resident of Australia at the time of
the disposal;
(B) the disposal is a disposal of a taxable Australian asset;
(C) immediately after the disposal, the eligible asset is a
taxable Australian asset of the company; and
(f) in the case of an ex-partner, being a taxpayer in the capacity of a trustee of a trust estate or of a unit trust - one of the following subparagraphs applies:
(i) both of the following conditions are satisfied:
(A) the trust estate or the unit trust is a resident trust
estate or a resident unit trust in relation to the year of income in which the disposal occurred;
(B) the company is a resident of Australia at the time of the disposal;
(ii) all of the following conditions are satisfied:
(A) the company is a resident of Australia at the time of the disposal;
(B) the trust estate or the unit trust is not a resident trust estate or a resident unit trust in relation to the year of income in which the disposal
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occurred;
(C) the disposal is a disposal of a taxable Australian asset of the trust estate or of the unit trust;
(iii) all of the following conditions are satisfied:
(A) the company is not a resident of Australia at the time of the disposal;
(B) the disposal is a disposal of a taxable Australian asset of the trust estate or of the unit trust;
(C) immediately after the disposal, the eligible asset is a taxable Australian asset of the company; and
(g) in the case of an ex-partner, being a taxpayer in the capacity of a trustee - immediately after the disposal, the ex-partner holds the replacement shares upon the same trust as the ex-partner held the ex-partner's interest in the eligible asset; and
(h) all of the ex-partners have elected that this section is to apply in relation to the disposal.
"(3) This Part (other than this section) does not apply in respect of the disposal.
"(4) For the purposes of this section:
(a) an interest in the eligible asset that was acquired by anex-partner before 20 September 1985 is taken to be a pre-20 September 1985 eligible asset interest; and
(b) any other interest in the eligible asset is taken to be a post-20 September 1985 eligible asset interest.
"(5) If an eligible asset relates wholly to pre-20 September 1985 eligible asset interests - the company is taken, for the purposes of this Part, to have acquired the eligible asset before 20 September 1985.
"(6) If an eligible asset relates wholly to post-20 September 1985 eligible asset interests - the eligible asset is taken, for the purposes of this section, to be a post-20 September 1985 eligible asset.
"(7) If an eligible asset relates partly to both of the following:
(a) pre-20 September 1985 eligible asset interests;
(b) post-20 September 1985 eligible asset interests;
the following provisions have effect:
(c) the eligible asset is taken, for the purposes of this Part, to comprise 2 separate assets, as follows:
(i) the eligible asset to the extent to which it relates to pre-20 September 1985 eligible asset interests;
(ii) the eligible asset to the extent to which it relates to post-20 September 1985 eligible asset interests;
(d) the company is to be treated, for the purposes of this Part, as if the company had acquired the eligible asset referred to in subparagraph (c) (i) before 20 September 1985;
(e) the eligible asset referred to in subparagraph (c) (ii) is taken, for the purposes of this section, to be a post-20 September 1985 eligible asset;
(f) on the disposal of the actual eligible asset, the consideration in respect of the disposal of the actual eligible asset is to be apportioned between the separate assets.
"(8) The company is taken to have paid or given as consideration in respect of the acquisition of a post-20 September 1985 eligible asset:
(a) for the purposes of ascertaining whether a capital gain accrued to the company in the event of a subsequent disposal of the eligible asset by the company - the sum of the amounts that would have been the indexed cost bases to the ex-partners of post-20 September 1985 eligible asset interests for the purposes of this Part if this Part had applied in respect of the disposal of those interests to the company; or
(b) for the purposes of ascertaining whether the company incurred a capital loss in the event of a subsequent disposal of the eligible asset by the company - the sum of the amounts that would have been the reduced cost bases to the ex-partners of post-20 September 1985 eligible asset interests for the purposes of this Part if this Part had applied in respect of the disposal of those interests to the company.
"(9) If a post-20 September 1985 eligible asset is disposed of by the company within 12 months after the earliest day, being a day after19 September 1985, on which any post-20 September 1985 eligible asset interest was acquired by an ex-partner, the reference in paragraph (8) (a) to the indexed cost bases to the ex-partner of post-20 September 1985 eligible asset interests is a reference to the cost bases to theex-partner of the post-20 September 1985 eligible asset interests.
"(10) In the case of a particular taxpayer, being an ex-partner:
(a) if all of the interests in the eligible asset held by the taxpayer were pre-20 September 1985 eligible asset interests - the taxpayer is taken, for the purposes of this Part, to have acquired the replacement shares concerned before 20 September 1985; and
(b) if:
(i) some, but not all, of the interests in the eligible asset held by the taxpayer were pre-20 September 1985 eligible asset interests; and
(ii) the taxpayer, in the notice of election, nominates, as pre-CGT shares, such of the replacement shares acquired by the taxpayer as are specified in the notice; and

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(iii) the number of replacement shares nominated by the taxpayer does not exceed the number calculated using the formula:
MV of pre-CGT interests
Shares X MV of total interests
where:
`Shares' means the number of replacement shares owned by the `MV of pre-CGT interests' means the number of dollars in the `MV of total interests' means the number of dollars in the taxpayer immediately after the disposal;
market value of the pre-20 September 1985 eligible asset interests immediately before the disposal;
market value of the interest in the eligible asset held by the taxpayer immediately before the disposal;
the taxpayer is taken, for the purposes of this Part, to have acquired the nominated shares before 20 September 1985; and
(c) each replacement share acquired by the taxpayer that is nottaken by paragraph (a) or (b) to have been acquired by the taxpayer before 20 September 1985 is taken to be a post-20 September 1985 replacement share for the purposes of this section; and
(d) in the case of a post-20 September 1985 replacement share - the taxpayer is taken to have paid or given as consideration in respect of the acquisition of the share an amount equal to:
(i) for the purpose of ascertaining whether a capital gain accrued to the taxpayer in the event of a subsequent disposal of the share by the taxpayer - the amount calculated using the formula:
ICB of post-CGT interests
Post-CGT shares
where:
`ICB of post-CGT interests' means the sum of the amounts that `Post-CGT shares' means the number of post-20 September 1985 would have been the indexed cost bases to the taxpayer of post-20 September 1985 eligible asset interests for the purposes of this Part if this Part had applied in respect of the disposal of the interests by the taxpayer to the company;
replacement shares owned by the taxpayer immediately after the disposal; or
(ii) for the purposes of ascertaining whether the taxpayer incurred a capital loss in the event of a subsequent disposal of the share by the taxpayer - the amount calculated using the formula:
RCB of post-CGT interests
Post-CGT shares
where:
`RCB of post-CGT interests' means the sum of the amounts that `Post-CGT shares' means the number of post-20 September 1985 would have been the reduced cost bases to the taxpayer of post-20 September 1985 eligible asset interests for the purposes of this Part if this Part had applied in respect of the disposal of the interests by the taxpayer to the company;
replacement shares owned by the taxpayer immediately after the disposal.
"(11) If a post-20 September 1985 replacement share is disposed of by a taxpayer within 12 months after the earliest day, being a day after 19 September 1985, on which any partnership asset interest was acquired by the taxpayer, the reference in paragraph (10) (d) to the indexed cost bases to the taxpayer of interests is a reference to the cost bases to the taxpayer of the interests.
"(12) The consideration in respect of the disposal mentioned in subsection (2) is not taken not to consist only of non-redeemable shares in the company merely because the company assumes in connection with the disposal a liability or liabilities in respect of the eligible asset but, if the company so assumes such a liability or liabilities, this section does not apply in relation to the disposal unless:
(a) in the case of a pre-20 September 1985 eligible asset interest - the amount of the liability or the total of the amounts of the liabilities does not exceed the market value of the interest at the time of the disposal; or
(b) in the case of a post-20 September 1985 eligible asset interest - the amount of the liability or the total of the amounts of the liabilities does not exceed the amount that, if this Part had applied in respect of the disposal of the interest by the ex-partner to the company, would have been:
(i) if the interest was disposed of within the period of 12 months after the day in which the interest was acquired by the ex-partner - the cost base to the ex-partner of the interest; or
(ii) if the interest was disposed of after that period - the indexed cost base to the ex-partner of the interest.
"(13) An election under this subsection by a taxpayer, being an ex-partner, must be made by notice in writing given to the Commissioner on or before the date of lodgment of the return of income of the taxpayer for the year of income in which the disposal took place, or within such further period as the Commissioner allows.
"(14) A reference in this section to an interest in the eligible asset that was acquired by an ex-partner at a particular time includes a reference to an interest in the eligible asset that was acquired by the ex-partner at a time when the eligible asset was a partnership asset of a partnership that was a predecessor (whether immediate or not) of the partnership mentioned in subsection (2).".

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TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 59
Transfer of asset between companies in the same group

59. (1) Section 160ZZO of the Principal Act is amended:
(a) by omitting paragraphs (1) (aa), (ab) and (ac);
(b) by inserting in subsection (1) "and Division 19A" after "other than this section";
(c) by omitting from paragraph (1) (e) "or" and substituting "and";
(d) by adding at the end of subsection (1) the following word and paragraph:
"; and (g) if, at a particular time (in this paragraph
called the `cessation time') after the time of the disposal:
(i) the transferee ceased, or first ceased, to be a group
company in relation to the transferor (otherwise than because of the dissolution of the transferor); and
(ii) the transferee had not disposed of the asset;
the transferee is taken:
(iii) to have disposed of the asset at the cessation time
for a consideration equal to the market value of the asset at the cessation time; and
(iv) to have immediately re-acquired the asset for a
consideration equal to the market value of the asset at the cessation time.";
(e) by omitting subsections (2A), (2B) and (2C);
(f) by omitting from subsection (3) all the words after paragraph (b) and substituting "at all times during the year of income when both companies were in existence.";
(g) by inserting after subsection (3) the following subsection:
"(3A) For the purposes of this section, a company is taken to be a group company in relation to another company at a particular time if, at that time:
(a) one of the companies was a subsidiary of the other company; or
(b) each of the companies was a subsidiary of the same company.";
(h) by omitting from subsection (4) "during a period (in this subsection referred to as the `relevant period'), being the whole or a part of a year of income" and substituting "at a particular time";
(j) by omitting from paragraph (4) (a) "at all times during the relevant period" and substituting "at that time";
(k) by omitting from paragraph (4) (b) "during any part of the relevant period" and substituting "at that time";
(m) by omitting from paragraph (4) (b) "after the relevant period" and substituting "after that time";
(n) by omitting from subsection (6) "during a year of income, or a part of a year of income" and substituting "at a particular time";
(p) by omitting from subsection (6) "during the year of income, or that part of the year of income" and substituting "at that time";
(q) by omitting subsection (10).
(2) Section 160zzo of the Principal Act is amended by adding at the end of subsection (1) the following word and paragraph:
"; and (h) if:
(i) the transferor is dissolved after the time of the disposal; and
(ii) at a particular time (in this paragraph called the `trigger time') after the time of the dissolution the transferee had not disposed of the asset and:
(A) a company that, at the time of the disposal, was a group company in relation to the transferee disposes of a share in the transferee; or
(B) the transferee issues a share to a person who was not, at the time of the disposal, a group company in relation to the transferee;
the transferee is taken:
(iii) to have disposed of the asset at, or at the earlier or earliest, trigger time for a consideration equal to the market value of the asset at, or at the earlier or earliest, trigger time; and
(iv) to have immediately re-acquired the asset for a consideration equal to the market value of the asset at, or at the earlier or earliest, trigger time.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 60
Repeal of section 160ZZOA

60. Section 160ZZOA of the Principal Act is repealed.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 61

2222After section 160ZZR of the Principal Act the following Division is inserted:
"Division 19A - Transfers of Assets between Companies
under Common Ownership
Interpretation
"160ZZRA. (1) In this Division, unless the contrary intention appears:
`eligible debt interest', in relation to a company, means:
(a) a loan to the company; or
(b) an underlying interest in a loan to the company;
`eligible equity interest', in relation to a company, means:
(a) a share in the company; or
(b) an underlying interest in a share in the company;
`first asset' has the meaning given by section 160ZZRD;
`first asset disposal time' has the meaning given by section 160ZZRD;

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`indexed threshold amount' has the meaning given by section 160ZZRD;
`non-finance shares' means shares other than shares where, having regard to:
(a) the manner in which the amount of dividends in respect of the share is to be calculated; and
(b) the conditions applicable to the payment of dividends in respect of the share; and
(c) any other relevant matters;
the payment of dividends in respect of the share may reasonably be regarded as equivalent to the payment of interest on a loan;
`total underlying share interests', in relation to particular shares in a company, means all of the beneficial interests held by natural persons (whether directly or through one or more interposed companies or trusts) in the shares;
`transferee' has the meaning given by section 160ZZRD;
`transferor' has the meaning given by section 160ZZRD;
`under common ownership' has the meaning given by section 160ZZRB;
`underlying interest' has the meaning given by section 160ZZRC.
When companies under common ownership
"160ZZRB. For the purposes of this Division, a company (in this section called the `first company') and another company (in this section called the `second company') are under common ownership at a particular time if, and only if:
(a) the first company was a group company (within the meaning of section 160ZZO) in relation to the second company at that time; or
(b) at that time:
(i) the total underlying share interests in the non-finance shares in the first company were held by natural persons who, at that time, held the total underlying share interests in the non-finance shares in the second company; and
(ii) the proportion of the total underlying share interests in the non-finance shares in the first company held by each natural person was the same as the proportion of the total underlying share interests in the non-finance shares in the second company held by that person.
Underlying interest
"160ZZRC. For the purposes of this Division, an asset held by a taxpayer is taken to be an underlying interest in particular property if, because of the holding of that asset, the taxpayer holds an interest (whether directly or through one or more interposed companies or trusts) in the property.
Transfers of assets between companies under common ownership
"160ZZRD. (1) This Division applies where:
(a) at a particular time (in this Division called the `first asset disposal time'), a company (in this Division called the `transferor') disposes of an asset (in this Division called the `first asset') to another company (in this Division called the `transferee'); and
(b) the first asset was acquired by the transferor on or after 20 September 1985; and
(c) at the first asset disposal time, the transferor and the transferee are under common ownership; and
(d) subject to subsection (2), the consideration in respect of the disposal of the first asset is less than whichever is the lesser of the following amounts:
(i) whichever of the following is applicable:
(A) the indexed cost base to the transferor of the first asset;
(B) the amount that would have been the indexed cost base to the transferor of the first asset for the purposes of this Part if this Part had applied in respect of the disposal of the first asset;
(ii) the market value, immediately before the first asset disposal time, of the first asset;
(which lesser amount is in this Division called the `indexed threshold amount').
"(2) Paragraph (1) (d) is to be disregarded in applying section 160ZZRF.
Shares in, and loans to, transferor - deemed disposal and re-acquisition
"160ZZRE. (1) This section only applies to a share in, or a loan to, the transferor acquired by a taxpayer if no reduction to the cost base, the indexed cost base or the reduced cost base of the share or the loan to the taxpayer is made under section 160ZZRF.
"(2) This section only applies to a loan to the transferor if:
(a) the parties to the loan were not dealing with each other at arm's length in relation to the loan; or
(b) the value of the loan was reduced as a result of the disposal of the first asset.
"(3) If, at the first asset disposal time, a taxpayer (in this subsection called the `second taxpayer') held a share in the transferor that was acquired by the second taxpayer on or after 20 September 1985, the second taxpayer is taken:
(a) to have disposed of the share at the first asset disposal time for a consideration equal to the indexed cost base to the second taxpayer of the share; and
(b) for the purpose of ascertaining whether a capital gain accrued to the second taxpayer in the event of a subsequent disposal of the share by the
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second taxpayer - to have immediately re-acquired the share for a consideration equal to the indexed cost base to the second taxpayer of the share, reduced by the amount (in this section called the `indexed share reduction amount') calculated using the formula:
Share MV Indexed First
Total post-CGT X threshold - asset
share MV amount consideration
where:
`Share MV' means the market value of the share immediately before the first asset disposal time;
`Total post-CGT share MV' means the total market value, immediately before the first asset disposal time, of all of the shares in the transferor that were acquired (by the second taxpayer or otherwise) on or after 20 September 1985;
`Indexed threshold amount' means the indexed threshold amount;
`First asset consideration' means the amount of the consideration in respect of the disposal of the first asset; and
(c) for the purpose of ascertaining whether the second taxpayer incurred a capital loss in the event of a subsequent disposal of the share by the second taxpayer - to have immediately re-acquired the share for a consideration equal to:
(i) if the consideration in respect of the disposal of the first asset is less than the lesser of the following amounts:
(A) the reduced cost base to the transferor of the first asset;
(B) the amount that would have been the reduced cost base to the transferor of the first asset for the purposes of this Part if this Part had applied in respect of the disposal of the first asset;
(C) the market value, immediately before the first asset (which lesser amount is in this paragraph called the `reduced disposal time, of the first asset;
threshold amount') - the reduced cost base to the second taxpayer of the share, reduced by the amount (in this section called the `reduced share reduction amount') calculated using the formula:
Share MV reduced First
Total post-CGT X threshold - asset
share MV amount consideration
where:
`Share MV' means the market value of the share immediately before the first asset disposal time;
`Total post-CGT share MV' means the total market value,
immediately before the first asset disposal time, of all of the shares in the transferor that were acquired (by the second `Reduced threshold amount' means the reduced threshold amount;
`First asset consideration' means the amount of the taxpayer or otherwise) on or after 20 September 1985;
consideration in respect of the disposal of the first asset; or
(ii) in any other case - the reduced cost base to the second
taxpayer of the share.
"(4) If:
(a) at the first asset disposal time, a taxpayer (in this subsection called the `second taxpayer') held a loan to the transferor, being a loan that was acquired by the second taxpayer on or after 20 September 1985; and
(b) either of the following conditions is satisfied:
(i) one or more shares in the transferor (in this subsection called the `excess shares') are taken, because of paragraph (3) (b) or (c), to have been re-acquired, by the second taxpayer or by another taxpayer, at the first asset disposal time, for nil consideration;
(ii) at the first asset disposal time, there were no shares in the transferor that were acquired (by the second taxpayer or otherwise) on or after 20 September 1985;
the second taxpayer is taken:
(c) to have disposed of the loan at the first asset disposal time for a consideration equal to the indexed cost base to the second taxpayer of the loan; and
(d) for the purpose of ascertaining whether a capital gain accrued to the second taxpayer in the event of a subsequent disposal of the loan by the second taxpayer - to have immediately re-acquired the loan for a consideration equal to the indexed cost base to the second taxpayer of the loan, reduced by the amount calculated using the formula:
Loan MV
Total post-CGT X Total excess share
loan MV reduction amount
where:
`Loan MV' means the market value of the loan immediately before the first asset disposal time;
`Total post-CGT loan MV' means the total market value, immediately before the first asset disposal time, of all the loans to the transferor that were acquired (by the second taxpayer or otherwise) on or after 20 September 1985;
`Total excess share reduction amount' means: (i) if subparagraph (b) (i) of this subsection applies - so
much of the total indexed share reduction amounts for the excess

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shares as was not applied in making reductions to the indexed
cost bases of the excess shares in accordance with paragraph (3)
(b); or
(ii) if subparagraph (b) (ii) of this subsection applies -
the amount calculated using the formula:
Indexed First
threshold - asset
amount consideration
where:
`Indexed threshold amount' means the indexed threshold amount;
`First asset consideration' means the amount of the
consideration in respect of the disposal of the first asset; and
(e) for the purpose of ascertaining whether the second
taxpayer incurred a capital loss in the event of a subsequent
disposal of the loan by the second taxpayer - to have
immediately re-acquired the loan for a consideration equal to
the reduced cost base to the second taxpayer of the loan,
reduced by the amount calculated using the formula:
Loan MV
Total post-CGT X Total excess share
loan MV reduction amount
where:
`Loan MV' means the market value of the loan immediately before
the first asset disposal time;
`Total post-CGT loan MV' means the total market value,
immediately before the first asset disposal time, of all the
loans to the transferor that were acquired (by the second
taxpayer or otherwise) on or after 20 September 1985;
`Total excess share reduction amount' means:
(i) if subparagraph (b) (i) of this subsection applies - so much of the total reduced share reduction amounts for the excess shares as was not applied in making reductions to the reduced cost bases of the excess shares in accordance with paragraph (3) (c); or
(ii) if subparagraph (b) (ii) of this subsection applies:
(A) if the reduced cost base to the transferor of the first asset, or the amount that would have been the reduced cost base to the transferor of the first asset for the purposes of this Part if this Part had applied in respect of the disposal of the first asset, as the case may be, exceeds the consideration in respect of the disposal of the first asset - the amount of the excess; or
(B) in any other case - 0.
"(5) If the second taxpayer or another taxpayer disposed of a share or loan (otherwise than because of the application of this section) within 12 months after the taxpayer acquired the share or loan (otherwise than because of the application of this section), subsections (3) and (4) have effect as if the references in the subsection concerned to the indexed cost base to the taxpayer in respect of the share or loan were a reference to the cost base to the taxpayer in respect of the share or loan.
First asset acquired before transferor and transferee came under common ownership - shares in, and loans to, transferor - reduction
in cost base etc.
"160ZZRF. (1) This section applies where the transferor acquired the first asset before the latest time (in this section called the `common ownership time'):
(a) earlier than the first asset disposal time; and
(b) at which the transferor and the transferee came under common ownership.
"(2) If:
(a) at the first asset disposal time, a taxpayer (in this section called the `second taxpayer') held an asset, being:
(i) a share in the transferor that was acquired by the second taxpayer on or after 20 September 1985; or
(ii) a loan to the transferor that was acquired by the second taxpayer on or after 20 September 1985; and
(b) at the common ownership time, the market value of the assets of the transferor substantially exceeded the total indexed cost bases to the transferor of those assets;
the cost base, the indexed cost base or the reduced cost base of the share or the loan to the second taxpayer is reduced by such amount (if any) as is reasonable having regard to:
(c) the circumstances in which the share or the loan was acquired by the second taxpayer; and
(d) the total market value, as at the first asset disposal time, of:
(i) the first asset; and
(ii) any other assets that were:
(A) held by the transferor at the first asset disposal time; and
(B) acquired by the transferor before the common ownership time; and
(e) the amount of the consideration in respect of the disposal of the first asset to the transferee.
Indirect equity or debt interests in transferor - reduction

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in cost base etc.
"160ZZRG. If:
(a) at the first asset disposal time, a taxpayer (in this section called the `second taxpayer') held an asset, being:
(i) an eligible equity interest (other than a share) in the transferor that was acquired by the second taxpayer on or after 20 September 1985; or
(ii) an eligible debt interest (other than a loan) in the transferor that was acquired by the second taxpayer on or after 20 September 1985; and
(b) the second taxpayer disposes of that asset;
the cost base, the indexed cost base or the reduced cost base of the asset to the second taxpayer is reduced by such amount as is reasonable having regard to the reduction in value of the asset resulting from the disposal of the first asset.
Equity interests in transferee - compensatory increase in cost
base etc.
"160ZZRH. If:
(a) at the first asset disposal time, a taxpayer (in this section called the `third taxpayer') (who may be the second taxpayer mentioned in section 160ZZRE, 160ZZRF or 160ZZRG) holds an eligible equity interest in the transferee that was acquired by the third taxpayer on or after 20 September 1985; and
(b) the third taxpayer disposes of the eligible equity interest;
the cost base, the indexed cost base or the reduced cost base of the eligible equity interest to the third taxpayer is increased by such amount (if any) as is reasonable having regard to:
(c) the increase in the value of the interest resulting from the acquisition of the first asset; and
(d) the amount of any relevant reductions made under paragraph 160ZZRE (3) (b) or (c) or (4) (d) or (e) or subsection 160ZZRF (2); and
(e) in the case of the indexed cost base - inflation as measured using the method in section 160Q.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 62
Transfers of assets between companies under common ownership

62. Section 160ZZRD of the Principal Act is amended:
(a) by omitting from subsection (1) "This" and substituting "Subject to this section, this";
(b) by omitting paragraphs (1) (b), (c) and (d) and substituting the following paragraphs:
"(b) at the first asset disposal time, the transferor and
the transferee are under common ownership; and
(c) the transferee is not a subsidiary of the
transferor.";
(c) by omitting subsection (2) and substituting the following subsection:
"(2) Sections 160ZZRE, 160ZZRG and 160ZZRH only apply in relation to the disposal of the first asset if:
(a) in a case where the first asset was acquired by the transferor before 20 September 1985 - the consideration in respect of the disposal of the first asset is less than the market value of the first asset immediately before the first asset disposal time; or
(b) in a case where the first asset was acquired by the transferor on or after 20 September 1985 - the consideration in respect of the disposal of the first asset is less than whichever is the lesser of the following amounts:
(i) whichever of the following is applicable:
(A) the indexed cost base to the transferor of the first
asset;
(B) the amount that would have been the indexed cost base
to the transferor of the first asset for the purposes of this Part if this Part had applied in respect of the disposal of the first asset;
(ii) the market value of the first asset immediately before the first asset disposal time;
(which lesser amount is in this Division called the `indexed threshold amount').".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 63
Shares in, and loans to, transferor - deemed disposal and re-acquisition

63. Section 160ZZRE of the Principal Act is amended by inserting after subsection (1) the following subsection:
"(1A) This section only applies in relation to the disposal of the first asset if the first asset was acquired by the transferor on or after 20 September 1985.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 64
First asset acquired before transferor and transferee came under common ownership - shares in, and loans to, transferor - reduction in cost base etc.

64. Section 160ZZRF of the Principal Act is amended:
(a) by inserting before paragraph (2) (a) the following paragraph:
"(aa) the first asset was acquired by the transferor on or after 20 September 1985 (otherwise than because of section 160ZZS); and";
(b) by omitting from paragraph (2) (a) "section" and substituting "subsection";
(c) by adding at the end the following subsection:
"(3) If:

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(a) either of the following conditions is satisfied:
(i) the first asset was acquired by the transferor before 20 September 1985;
(ii) the first asset was acquired by the transferor on or after 20 September 1985 because of section 160zzs; and
(b) at the first asset disposal time, a taxpayer (in this subsection called the `second taxpayer') held an asset, being:
(i) a share in the transferor that was acquired by the second taxpayer on or after 20 September 1985; or
(ii) a loan to the transferor that was acquired by the second taxpayer on or after 20 September 1985;
the cost base, the indexed cost base or the reduced cost base of the share or the loan to the second taxpayer is reduced by such amount (if any) as is reasonable having regard to:
(c) the circumstances in which the share or the loan was acquired by the second taxpayer; and
(d) the extent (if any) to which the market value of the share or the loan was reduced as a result of the disposal of the first asset at the first asset disposal time; and
(e) the extent (if any) to which any consideration paid or given by the second taxpayer for the acquisition of the share or the loan was attributable to the first asset.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 65

65. After section 160ZZRF of the Principal Act the following section is inserted:
First asset acquired when transferor and transferee under common ownership - shares in, and loans to, transferor - reduction in cost base etc.
"160ZZRFA. (1) This section applies where the transferor acquired the first asset at or after the latest time (in this section called the `common ownership time'):
(a) earlier than the first asset disposal time; and
(b) at which the transferor and the transferee came under common ownership.
"(2) If:
(a) the first asset was acquired by the transferor before 20 September 1985; and
(b) at the first asset disposal time, a taxpayer (in this subsection called the `second taxpayer') held an asset, being:
(i) a share in the transferor that was acquired by the second taxpayer on or after 20 September 1985; or
(ii) a loan to the transferor that was acquired by the second taxpayer on or after 20 September 1985;
the cost base, the indexed cost base or the reduced cost base of the share or the loan to the second taxpayer is reduced by such amount (if any) as is reasonable having regard to:
(c) the circumstances in which the share or the loan was acquired by the second taxpayer; and
(d) the extent (if any) to which the market value of the share or the loan was reduced as a result of the disposal of the first asset at the first asset disposal time.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 66
Equity interests in transferee - compensatory increase in cost base etc.

66. Section 160ZZRH of the Principal Act is amended:
(a) by inserting in paragraph (a) ", 160ZZRFA" after "160ZZRF";
(b) by inserting in paragraph (d) "or (3) or 160ZZRFA (2)" after "160ZZRF (2)".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 67
Disposal of shares or of interest in trust

67. Section 160ZZT of the Principal Act is amended:
(a) by adding "or" at the end of subparagraph (1) (a) (i);
(b) by omitting subparagraph (1) (a) (ii);
(c) by omitting from subparagraph (1) (c) (ii) ", partnership" (wherever occurring);
(d) by omitting from subparagraph (1) (c) (ii) ", partnerships";
(e) by omitting from paragraph (1) (d) ", partnership";
(f) by omitting from subsection (1) ", partnership" (last occurring);
(g) by omitting from subsection (3) ", partnership".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 68
Keeping of records

68. (1) Section 160ZZU of the Principal Act is amended:
(a) by omitting from subsection (1) "$2,000" and substituting "$3,000";
(b) by omitting subsection (3) and substituting the following subsections:
"(3) A transferee (within the meaning of section 160zzo) who acquires, or after 6 December 1990 has acquired, an asset (other than an excepted asset) as a result of a disposal mentioned in paragraph 160ZZO (1) (a) to which section 160ZZO applies, must keep such records in the English language as are necessary to enable the ready ascertainment of:
(a) the acts, transactions and other circumstances (including the identity of the transferor concerned) that resulted in section 160ZZO applying in relation to the disposal; and

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(b) the transferee's status as a group company (within the meaning of section 160ZZO) in relation to the transferor at a time before the earlier of the following:
(i) the cessation time mentioned in paragraph 160ZZO (1) (g);
(ii) the time when the asset was disposed of by the transferee; and
(c) the earlier of the times mentioned in paragraph (b) of this subsection.
Penalty: $3,000.
"(4) Paragraphs (3) (b) and (c) do not require a person to keep a record of information if the person did not know, and made all reasonable efforts to obtain, the information.
"(5) For the purpose of the application of subsection (3) in relation to a person, an asset is an excepted asset if this Part would not, in the event of the disposal of the asset by the person, apply in respect of the disposal.
"(6) A person who has possession of any records kept under this section must retain those records until:
(a) if subsection (1) applies - the end of 5 years after the asset to which the records relate was disposed of by the person; or
(b) if subsection (3) applies - the end of 5 years after the earlier of the times mentioned in paragraph (3) (b).
Penalty: $3,000.
"(7) Subsection (6) does not require a person to retain records where:
(a) the Commissioner has notified the person that retention of the records is not required; or
(b) the person is a company that has gone into liquidation and been finally dissolved.
"(8) Subsections 262A (4) and (5) do not apply in relation to records kept under this section.".
(2) Section 160ZZU of the Principal Act is amended:
(a) by inserting after subsection (3) the following subsection:
"(3A) A transferee (within the meaning of section 160ZZO)
who acquires, or after 13 February 1991 has acquired, an asset (other than an excepted asset) as a result of a disposal mentioned in paragraph 160ZZO (1) (a) to which section 160ZZO applies, must keep such records in the English language as are necessary to enable the ascertainment of:
(a) the acts, transactions and other circumstances
(including the identity of the transferor concerned) that resulted in section 160ZZO applying in relation to the disposal; and
(b) the transferee's status as a group company (within the
meaning of section 160ZZO) in relation to each company (being a company that was a shareholder in the transferee at the time of the disposal mentioned in paragraph 160ZZO (1) (a)) at a time before the earlier of the following:
(i) the trigger time, or the earlier or earliest trigger
time, mentioned in paragraph 160ZZO (1) (h);
(ii) the time when the asset was disposed of by the
transferee; and
(c) the earlier of the times mentioned in subparagraph (b)
(i) or (ii) of this subsection.
Penalty: $3,000.";
(b) by inserting in subsection (4) "and paragraphs (3A) (b) and (c)" before "do not";
(c) by inserting in subsection (5) "or (3A)" after "(3)";
(d) by omitting from paragraph (6) (b) "(3) (b)." and substituting "(3) (b); and";
(e) by inserting after paragraph (6) (b) the following paragraph:
"(c) if subsection (3A) applies - the end of 5 years after
the earlier of the times mentioned in subparagraph (3A) (b) (i) or (ii).".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 69
Effect of incorrect quotation of tax file number

69. Section 202DF of the Principal Act is amended by omitting subsection (7).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 70
Interpretation

70. Section 317 of the Principal Act is amended by inserting the following definition:
"`accruals tax law', in relation to a listed country, means a law of the listed country that is declared by regulations for the purposes of this definition to be an accruals tax law;".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 71
When income or profits subject to tax in a listed country

71. Section 324 of the Principal Act is amended:
(a) by omitting from subsection (1) "Subject to subsection (2)" and substituting "Subject to this section";
(b) by inserting in paragraph (2) (a) "and subsections (3) and (4)" after "apart from this subsection";
(c) by adding at the end the following subsections:
"(3) Where:
(a) an entity becomes a resident of a particular listed country (in this section called the `current listed country') at a particular time (in this section called the `residence-change time'); and

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(b) the entity owns an asset at the residence-change time; and
(c) the entity disposes of the asset while a resident of the current listed country;
then, for the purposes of this Part:
(d) if, apart from this paragraph, the only part of a capital gain on the disposal of the asset that is subject to tax in the listed country is the part that relates to the period after the residence-change time - the whole of the capital gain, whether it relates to the period before or after the residence-change time, is, subject to subsection (4), taken to be subject to tax in the current listed country; and
(e) subsection (4) applies.
"(4) Where:
(a) a capital gain on the disposal of the asset would, apart from this subsection and whether or not paragraph (3) (d) applies, be subject to tax in the current listed country; and
(b) at a time or times when it owned the asset before the residence-change time (but disregarding any time or times before a change of residence from an unlisted country to a listed country), the entity was a resident of one or more listed countries (each of which is in this subsection called a `previous listed country'); and
(c) if the entity had disposed of the asset when it ceased to be a resident of a particular previous listed country (in this subsection called the `non-taxing listed country'), any capital gain on the disposal would not have been subject to tax in that country; and
(d) if the entity had disposed of the asset when it ceased to be a resident of another previous listed country after the non-taxing listed country, any capital gain on the disposal would not have been subject to tax in that other previous listed country to the extent that it relates to the period of residence by the entity in the non-taxing listed country;
then, for the purposes of this Part, so much of the gain as relates to the period of residence in the non-taxing listed country is taken not to be subject to tax in the current listed country.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 72
Exempting receipt of an unlisted country company

72. Section 377 of the Principal Act is amended:
(a) by adding at the end of paragraph (1) (b) "other than under section 143 (where the proviso to that section does not apply)";
(b) by adding at the end of subsection (1) the following paragraph:
"; (h) a premium paid or credited to the company in the
qualifying period where, because of the application of subsection 148 (1), the premium is not allowable as a deduction to the person referred to in subparagraph 148 (1) (a) (i) and is not included in the assessable income of the company.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 73
Certain provisions to be disregarded in calculating attributable income

73. Section 389 of the Principal Act is amended:
(a) by omitting from paragraph (a) "and sections 136A," and substituting ", section 136A, Division 15 of Part III (other than subsection 148 (1)) and sections";
(b) by inserting in paragraph (a) ", 459A" after "459".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 74
Notional allowable deduction for taxes paid

74. Section 393 of the Principal Act is amended by adding at the end the following subsection:
"(4) Where a person pays an amount of tax that the person is liable to pay under subsection 148 (3) of this Act, in its application apart from this Part, in respect of premiums paid or credited to the eligible CFC, then, for the purposes of subsection (1), the amount is taken to be Australian tax paid by the eligible CFC in respect of the premiums.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 75

75. After section 398 of the Principal Act the following section is inserted:
Modified application of Division 3A of Part III
"398A. (1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, section 82R does not apply, subject to subsection (2), to outgoings during the eligible period under a convertible note where:
(a) the note was issued by the eligible CFC (whether or not the company concerned was a CFC at the time):
(i) before 1 July 1990; or
(ii) on or after 1 July 1990 and before 1 July 1992, where:
(A) the terms of the issue of the note were publicly announced by the eligible CFC before 1 July 1990; or
(B) the eligible CFC was, under a contract entered into before 1 July 1990, obliged to issue the note; and
(b) at the end of each statutory accounting period of the eligible CFC preceding the eligible period and ending after 30 June 1990, the eligible taxpayer was an attributable taxpayer in relation to the eligible CFC; and
(c) the eligible period begins before 1 July 2000.
"(2) Where:

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(a) the terms of a note to which subsection (1) would, apart from this subsection, apply are varied (otherwise than because of a compromise or arrangement approved by a court); and
(b) the Commissioner considers that the variation is substantial enough to represent a new loan;
subsection (1) does not apply to outgoings under the note after the time at which the variation takes place.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 76
Additional notional exempt income - unlisted or listed country
CFC

76. Section 402 of the Principal Act is amended:
(a) by adding at the end of paragraph (2) (a) ", other than amounts that are so included under section 143 (where the proviso to that section does not apply)";
(b) by adding at the end of subsection (2) the following paragraph:
"; (e) a premium paid or credited to the eligible CFC in
the eligible period, where, because of the application of subsection 148 (1) for the purposes of this Act apart from this Part, the premium is not, for those purposes, allowable as a deduction to the person referred to in subparagraph 148 (1) (a) (i) and is not included in the assessable income of the eligible CFC.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 77
Modified application of Part IIIA - general modifications

77. Section 410 of the Principal Act is amended:
(a) by omitting paragraph (a) and substituting the following paragraph:
"(a) subsections 160M (12) to (12ab) (inclusive);";
(b) by inserting after paragraph (c) the following paragraph:
"(ca) section 160ZFB;".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 78

78. After section 418 of the Principal Act the following section is inserted:
Effect of change of residence from Australia to listed or unlisted country
"418A. (1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, where:
(a) disregarding the residency assumption, at any time (in this section called the `residence-change time') during the eligible period or an earlier statutory accounting period beginning on or after 1 July 1990, the eligible CFC ceased to be a resident within the meaning of section 6 and became a resident of a listed or an unlisted country; and
(b) the eligible CFC owned an asset at the residence-change time; and
(c) the eligible CFC disposed of the asset during the eligible period;
then sections 411 to 417 (inclusive) apply, in addition to any application apart from this section but subject to subsection (2) of this section, to the asset as if:
(d) any reference in those sections to a 30 June 1990 non-taxable Australian asset were a reference to the asset; and
(e) any reference in those sections relating to 30 June 1990 or1 July 1990 were a reference relating respectively to the residence-change time or a time immediately after the residence-change time; and
(f) where subsection 160M (8) applies to the asset in respect of the change of residence for the purposes of the application of this Act apart from this Part - the following provisions were omitted:
(i) sub-subparagraphs 412 (2) (a) (i) (B) and (ii) (B);
(ii) subparagraphs 414 (2) (a) (ii) and (b) (ii);
(iii) subparagraphs 415 (2) (a) (ii) and (b) (ii);
(iv) subparagraphs 416 (2) (a) (ii) and (b) (ii);
(v) subparagraphs 417 (2) (a) (ii) and (b) (ii).
"(2) Where the asset is a 30 June 1990 non-taxable Australian asset, sections 411 to 417 (inclusive) do not apply, in spite of anything contained in those sections, to the asset except in accordance with subsection (1) of this section.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 79
Repeal of section 420

79. Section 420 of the Principal Act is repealed.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 80
Amounts excluded from active income test

80. Section 436 of the Principal Act is amended:
(a) by adding at the end of paragraph (1) (a) "other than under section 143 (where the proviso to that section does not apply)";
(b) by adding at the end of subsection (1) the following paragraph:
"; (g) a premium paid or credited to the company where,
because of the application of subsection 148 (1), the premium is not allowable as a deduction to the person referred to in subparagraph 148 (1) (a) (i) and is not included in the assessable income of the company.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 81

81. After section 456 of the Principal Act the following section is inserted:
Reduction of section 456 assessability where item subject to foreign accruals tax
"456A. (1) Where:

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(a) apart from this section, an amount (in this section called the `otherwise assessable section 456 amount') is included in the assessable income of a year of income of an attributable taxpayer in relation to a CFC under section 456, in relation to the attributable income of the CFC of a statutory accounting period; and
(b) an attribution tracing interest of the attributable taxpayer, or of an interposed entity, in a CFE was taken into account in calculating the attributable taxpayer's attribution percentage for the CFC; and
(c) foreign tax is payable by the CFE under an accruals tax law of a listed country in respect of an amount that is calculated by reference to an item of net income or net profit of the CFC, where the amount is taxed in the listed country:
(i) at or above that country's normal company tax rate; and
(ii) in a tax accounting period commencing or ending:
(A) in the year of income of the attributable taxpayer; or
(B) in the statutory accounting period of the CFC; and
(d) the item constitutes the whole or part (which whole or part is in this section called the `foreign accruals-taxed attributable income') of the attributable income of the CFC of the statutory accounting period;
then the otherwise assessable section 456 amount is reduced by the amount calculated using the formula:
Indirect attribution Foreign accurals-taxed
interests via CFE X attributable income
where:
`Indirect attribution interests via CFE' means the total of the attributable taxpayer's indirect attribution interests in the CFC that are held through the CFE;
`Foreign accruals-taxed attributable income' means the amount of the foreign accruals-taxed attributable income.
"(2) Where:
(a) apart from this subsection, subsection (1) would reduce the otherwise assessable section 456 amount of the attributable taxpayer in relation to the CFC in a case where foreign tax is payable by 2 or more CFEs under accruals tax laws; and
(b) any indirect attribution interest referred to in the formula component "Indirect attribution interests via CFE" in subsection (1) is held through any 2 or more of the CFEs;
then that indirect attribution interest is only to be taken into account once in applying the subsection.
"(3) Where, because of any of subsections 362 (2) to (5), the amount that would otherwise be the attribution percentage of the attributable taxpayer for the CFC is reduced, then the Commissioner may, for the purposes of this section, make such consequential reduction as the Commissioner considers reasonable in the circumstances to any indirect attribution interest in the CFC held by the attributable taxpayer.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 82

82. After section 459 of the Principal Act the following section is inserted:
Assessability where CFC or CFT has interest in certain attributable taxpayers
"459A. (1) Where:
(a) an amount (in this subsection called the `section 456 to 459A amount') is included in the assessable income of an Australian partnership or of an Australian trust of a year of income under section 456, 457, 458 or 459 or under this section (apart from subsection (2)); and
(b) a CFC or CFT has an individual interest in the net income of the Australian partnership, or a present entitlement to a share of the net income of the Australian trust, being an interest or entitlement held either directly or indirectly through interposed Australian partnerships, CFPs or Australian trusts (or any combination thereof); and
(c) a taxpayer is an attributable taxpayer in relation to the CFC or CFT:
(i) where the section 456 to 459A amount is included in assessable income under section 456 - at the end of the statutory accounting period referred to in that section; or
(ii) where the amount is included under section 457 - at the residence-change time referred to in that section; or
(iii) where the amount is included under section 458 - when the dividend referred to in that section is paid; or
(iv) where the amount is included under section 459 - at the distribution time referred to in that section; or
(v) where the amount is included under this section - at the time referred to in whichever subparagraph of this paragraph applied for the purposes of so including the amount;
then, subject to subsection (2), the assessable income of the attributable taxpayer of the year of income includes an amount calculated using the formula:
AP X Interest/Entitlement X Section 456 to 459A amount
where:
`AP' (Attribution Percentage) means the taxpayer's attribution percentage, at the time referred to in paragraph (c), for the CFC or CFT;
`Interest/Entitlement' means the percentage of the net income of the
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Australian partnership or Australian trust represented by the sum of the direct and indirect interests or present entitlements of the CFC or CFT;
`Section 456 to 459A amount' means the section 456 to 459A amount.
"(2) Where:
(a) apart from this subsection, an amount (in this subsection called the `subsection (1) amount') is included under subsection (1) in the assessable income of an attributable taxpayer in relation to a CFT; and
(b) the following conditions are satisfied in respect of one or more other amounts (each of which is in this subsection called an `assessed attributable amount');
(i) each is:
(A) apart from this subsection, included in the assessable income of a taxpayer (whether or not the attributable taxpayer), other than a trust or partnership; or
(B) assessed to a trustee under section 98, 99 or 99A;
(ii) each is attributable directly through the CFT, or indirectly through the CFT and any interposed partnerships or trusts (or any combination thereof), to the section 456 to 459A amount referred to in subsection (1);
then the subsection (1) amount is reduced to the extent that the Commissioner considers it represents an assessed attributable amount or assessed attributable amounts.
"(3) A reference in subsection (1) to an Australian trust or in subsection (2) to a trust does not include a reference respectively to an Australian trust or a trust that is, in relation to the year of income concerned:
(a) a corporate unit trust within the meaning of Division 6B of Part III; or
(b) a public trading trust within the meaning of Division 6C of that Part; or
(c) an eligible entity within the meaning of Part IX.".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 83
Only resident partners, beneficiaries etc. liable to be assessed
as a result of attribution

83. Section 460 of the Principal Act is amended:
(a) by omitting from subsection (1) "or 459" and substituting", 459 or 459A";
(b) by omitting subsection (5).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 84
Application of amendments - general

84. (1) In this section:
"amended Act" means the Principal Act as amended by this Part.
(2) Subject to this section, the amendments made by section 10 (other than paragraphs (b) and (j)) apply to payments made in relation to deaths occurring on or after 1 January 1990.
(3) The amendments made by paragraph 10 (j) apply to pensions paid during the year 1988-89 and subsequent years of assessment (within the meaning of the Income and Corporation Taxes Act 1988 of the United Kingdom).
(4) Paragraphs 23AD (3) (y) and (z) of the amended Act apply in relation to deaths occurring on or after 19 December 1989.
(5) The amendments made by section 11 apply in relation to asset disposals during the year of income commencing on 1 July 1990 or a subsequent year of income.
(6) The amendments made by section 12 apply in relation to dividends paid after 3 June 1990.
(7) The amendment made by section 16 applies in relation to the calculation of attributable income of any year of income, whether commencing before or after the commencement of that section.
(8) The amendments made by sections 17 to 30 (inclusive) apply to expenditure incurred after 7.30 p.m., by standard time in the Australian Capital Territory, on 21 August 1990.
(9) The amendments made by section 32 apply to assessments in respect of income of the year of income commencing on 1 July 1991 and of all subsequent years of income.
(10) The amendments made by paragraph 34 (a) and sections 35, 37, 38, 39, 41, 42 and 43 apply in relation to the first franking year of a company that commences after 6 December 1990 and all subsequent franking years.
(11) The amendments made by sections 44, 45, 46, 47 and 48, paragraphs 49 (a) to (g) (inclusive) and (n), section 50, subsection 51 (1), sections 52, 53, 55, 56, 57 and 58, subsection 59 (1) and sections 60, 61, 67 and 79 apply in relation to disposals of assets after 6 December 1990.
(12) The amendments made by subsections 51 (2) and 59 (2) and sections 62, 63, 64, 65 and 66 apply in relation to disposals of assets after 13 February 1991.
(13) The amendments made by paragraphs 49 (h), (j), (k) and (m) and 77 (a) apply to a company that becomes a resident, within the meaning of section 6 of the amended Act, after 6 December 1990.
(14) The amendments made by section 54 and paragraph 77 (b) apply to changes of residence taking place on or after 1 July 1989.
(15) The amendment made by section 71 applies to disposals of assets taking place after 6 December 1990.
(16) The amendment made by section 72 applies to amounts derived by, or
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dividends paid to, a company during accounting periods of the company that end after 30 June 1990.
(17) The amendments made by sections 73, 74, 75, 76, 78 and 80 apply in relation to the calculation of attributable income of any eligible period, whether beginning before or after the commencement of those sections.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 85
Application of bad debt amendments

85. (1) The amendments made by sections 13 and 14 apply to debts created or acquired (whichever is the later) after the earlier of:
(a) the commencement of the year of income of the taxpayer commencing on 1 July 1990; and
(b) 7.30 p.m., by standard time in the Australian Capital Territory, on 21 August 1990.
(2) Where, after the time (in this subsection called the "application time") that is the earlier of the times referred to in subsection (1):
(a) a debt (in this subsection called the "post-application time debt") is created under a contract entered into before the application time; or
(b) a debt (in this subsection also called the "post-application time debt") is created by rolling-over or extending the term of a debt existing at the application time, in a case where, at the time at which the latter debt was created, it would have been reasonable to expect that it would be so rolled-over or its term would be so extended;
then the amendments referred to in subsection (1) do not apply to the post-application time debt.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 86
Savings - section 159GZZJ of the Principal Act

86. Even though an amendment of the Principal Act has been made under section 31, if a particular assessment would be affected by the amendment, the amendment is to be disregarded in making the assessment.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 87
Transitional - cancellation of franking surplus for mutual life
assurance companies and SGIOs

87. In spite of anything in Part IIIaa of the Principal Act as amended by this Act, for the purposes of that Part of that Act, where a mutual life assurance company or an SGIO has a franking surplus at the end of 21 August 1990, there arises at the beginning of the next day a franking debit of the company or SGIO equal to that franking surplus.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 88
Transitional - application of Part IIIA of the Principal Act to partnerships

88. The amendments made by sections 44, 45, 46, 47 and 48, paragraphs 49 (a) to (g) (inclusive) and (n) and sections 50, 52, 53, 55, 56, 57, 58 and 67 are to be disregarded in determining the meaning that an expression in Part IIIA of the Principal Act had when used in relation to disposals of assets before 7 December 1990.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 89
Transitional - section 160zzu of the amended Act

89. Where the Commissioner has notified a person under paragraph 160ZZU (3) (b) of the Principal Act that the person is not required to keep records, the Commissioner is taken to have notified the person under paragraph 160ZZU (7) (a) of the Principal Act as amended by this Act that the person is not required to retain those records.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 90
Amendment of assessments

90. Section 170 of the Principal Act does not prevent the amendment of an assessment made before the commencement of this section for the purpose of giving effect to this Part.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - PART 4
PART 4 - AMENDMENT OF THE INCOME TAX RATES ACT 1986

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 91
Principal Act

91. In this Part, "Principal Act" means the Income Tax Rates Act 1986.*3*
*3* No. 107, 1986, as amended. For previous amendments, see Nos. 60 and 138, 1987; and Nos. 11, 78 and 118, 1988; Nos. 98 and 106, 1989; and No. 87, 1990.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 92
Interpretation

92. Section 3 of the Principal Act is amended:
(a) by adding at the end of paragraph (b) of the definition of "prescribed non-resident" in subsection (1) "or";
(b) by omitting "or" from paragraph (c) of the definition of "prescribed non-resident" in subsection (1);
(c) by omitting paragraph (d) of the definition of "prescribed non-resident" in subsection (1).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 93
Limitation on tax payable by certain trustees

93. (1) Section 14 of the Principal Act is amended by omitting from paragraph (2) (c) "$717" and substituting "$705".
(2) Section 14 of the Principal Act is amended by omitting from paragraph (2) (c) "$705" and substituting "$693".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 94
Interpretation

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94. Section 16 of the Principal Act is amended:
(a) by adding at the end of paragraph (b) of the definition of "eligible pensioner" in subsection (1) "or";
(b) by omitting "or" from paragraph (c) of the definition of "eligible pensioner" in subsection (1);
(c) by omitting paragraph (d) of the definition of "eligible pensioner" in subsection (1).

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 95
Tax cuts for 1990-91

95. Schedule 7 to the Principal Act is amended by omitting from the table in Part I "21%", "25%" and "30%" and substituting "20.5%", "24.5%" and "29.5%" respectively.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 96
Tax cuts for 1991-92 and subsequent years

96. Schedule 7 to the Principal Act is amended by omitting from the table in Part I "21%" and substituting "20%".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 97
Application of amendments

97. (1) The amendments made by sections 92 and 94 apply to assessments in respect of income of the year of income commencing on 1 July 1990 and of all subsequent years of income.
(2) The amendments made by subsection 93 (1) and section 95 apply to assessments in respect of income of the year of income commencing on 1 July 1990.
(3) The amendments made by subsection 93 (2) and section 96 apply to assessments in respect of income of the year of income commencing on 1 July 1991 and of all subsequent years of income.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 98
Transitional - provisional tax for 1990-91

98. In ascertaining the provisional tax (including instalments) payable for the year of income commencing on 1 July 1990, the amendments made by subsection 93 (1) and section 95 are to be disregarded.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 99
Amendment of assessments

99. Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment made before the commencement of this section for the purposes of giving effect to this Part.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - PART 5
PART 5 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 100
Principal Act

100. In this Part, "Principal Act" means the Taxation Administration Act 1953.*4*

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 101

101. Section 8XA of the Principal Act is repealed and the following section is substituted:
Unauthorised access to taxation records
"8XA. A person must not knowingly take action for the purpose of obtaining information about another person's affairs that:
(a) is contained in records in the possession of the Commissioner; and
(b) is held or was obtained by the Commissioner under or for the purposes of a taxation law;
unless the person takes the action:
(c) under the Freedom of Information Act 1982; or
(d) in accordance with the processes of a court or the Tribunal; or
(e) in the course of exercising powers or performing functions under or in relation to a taxation law. Penalty: $10,000 or imprisonment for 2 years, or both.".
*4* No. 1, 1953, as amended. For previous amendments, see Nos. 28, 39, 40 and 52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75, 1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133, 1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123, 1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and 168, 1985; Nos. 41, 46, 48, 112, 144 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); Nos. 120 and 145, 1987; No. 62, 1987 (as amended by No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as amended by No. 11, 1988); Nos. 95 and 97, 1988; Nos. 97, 105, 107, 124, 163 and 167, 1989; and No. 20, 1990.

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 102
Secrecy

102. Section 8XB of the Principal Act is amended:
(a) by adding at the end of paragraph (1) (b) "or";
(b) by inserting after paragraph (1) (b) the following paragraph:
"(c) otherwise make use of any taxation information relating to another person;".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - PART 6
PART 6 - AMENDMENT OF THE TAXATION LAWS AMENDMENT (FOREIGN INCOME) ACT 1990

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 103
Principal Act

103. In this Part, "Principal Act" means the Taxation Laws Amendment (Foreign Income) Act 1990.*5*
*5* No. 5, 1991.
NOTE ABOUT SECTION HEADING
On the commencement of the amendments of the Income Tax Assessment Act 1936 made by section 16, the heading to section 102AAZB of that Act is altered by adding at its end " - general modifications".

TAXATION LAWS AMENDMENT ACT 1991
No. 48, 1991 - SECT 104
Transitional - section 108 of the amended Act

104. Section 52 of the Principal Act is amended by omitting all the words after paragraph (2) (b) and substituting the following:
"then:
(c) an amount equal to the amount that would have been included if the dividend had been a non-portfolio dividend is included in the taxpayer's assessable income of the year of income; and
(d) for the purposes of the amended Act, the amount is taken to be included in the taxpayer's assessable income under section 459 of that Act.".