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Income Tax Assessment Act 1936
No. 27, 1936
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Department of the Treasury
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C2010C00318
13 April 2010
-
02 June 2010
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Volume 1
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Part I—Preliminary
1 Short title [see Note 1]
6 Interpretation
6AA Certain sea installations and offshore areas to be treated as part of Australia
6A Provisions relating to cessation of superannuation benefits
6AB Foreign income and foreign tax
6B Income beneficially derived
6BA Taxation treatment of certain shares
6C Source of royalty income derived by a non-resident
6CA Source of natural resource income derived by a non-resident
6D Some tax offsets under the 1997 Assessment Act are treated as credits
6F Dual resident investment company
6H Recognised small credit unions, recognised medium credit unions and recognised large credit unions
7A Application of Act in relation to certain Territories
7B Application of the Criminal Code
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Part II—Administration
8 Commissioner
14 Annual report
16 Officers to observe secrecy
16A Provisions relating to the Fitzgerald inquiry
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Part III—Liability to taxation
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Division 1—General
18 Accounting period
18A Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs
21 Where consideration not in cash
21A Non-cash business benefits
23AA Income of persons connected with certain projects of United States Government
23AB Income of certain persons serving with an armed force under the control of the United Nations
23AC Exemption of pay and allowances of members of Defence Force serving in operational areas
23AD Exemption of pay and allowances of Defence Force members performing certain overseas duty
23AF Exemption of certain income derived in respect of approved overseas projects
23AG Exemption of income earned in overseas employment
23AH Foreign branch income of Australian companies not assessable
23AI Amounts paid out of attributed income not assessable
23AJ Certain non-portfolio dividends from foreign countries not assessable
23AK Amounts paid out of attributed foreign investment fund income not assessable
23E Redemption of Special Bonds redeemable at a premium
23G Exemption of interest received by credit unions
23J Sale of securities purchased at a discount
23K Substitution of certain securities
23L Certain benefits in the nature of income not assessable
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Division 1AB—Certain State/Territory bodies exempt from income tax
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Subdivision A—Exemption for certain State/Territory bodies
24AK Key principle
24AL Diagram—guide to work out if body is exempt under this Division
24AM Certain STBs exempt from tax
24AN Certain STBs not exempt from tax under this Division
24AO First way in which a body can be an STB
24AP Second way in which a body can be an STB
24AQ Third way in which a body can be an STB
24AR Fourth way in which a body can be an STB
24AS Fifth way in which a body can be an STB
24AT What do excluded STB, government entity and Territory mean?
24AU Governor, Minister and Department Head taken to be a government entity
24AV Regulations prescribing excluded STBs
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Subdivision B—Body ceasing to be an STB
24AW Body ceasing to be an STB
24AX Special provisions relating to capital gains and losses
24AY Losses from STB years not carried forward
24AYA Effect of unfunded superannuation liabilities
24AZ Meaning of period and prescribed excluded STB
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Division 1A—Provisions relating to certain External Territories
24B Interpretation
24C Territory resident
24D Territory company
24E Territory trusts
24F Exemption from tax of certain income derived from sources outside Australia
24G Exemption from tax of certain income derived from sources in a prescribed Territory
24H When income to be taken to be applied for benefit of a person
24J Source of dividends
24K Source of income from employment
24L Source of interest or royalty
24M Certain income deemed not to be derived from sources in a prescribed Territory or outside Australia
24P Transitional capital gains tax provisions for certain Cocos (Keeling) Islands assets
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Division 2—Income
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Subdivision A—Assessable income generally
25A Assessable income to include certain profits
26AB Assessable income—premium for lease
26AF Assessable income to include value of benefits received from or in connection with former paragraph 23(ja) funds or former section 23FB funds
26AFA Assessable income to include value of certain benefits received from or in connection with former section 23F funds
26AG Certain film proceeds included in assessable income
26AH Bonuses and other amounts received in respect of certain short-term life assurance policies
26AJ Investment-related lottery winnings to be included in assessable income
26BB Assessability of gain on disposal or redemption of traditional securities
26BC Securities lending arrangements
26C Disposal of certain securities
26E Income from RSAs
27 Interest on loans raised in Australia by governments outside Australia
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Subdivision AA—Non-superannuation annuities etc.
27H Assessable income to include annuities and superannuation pensions
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Subdivision D—Dividends
43A Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997
43B Application of Subdivision to non-share dividends
44 Dividends
45 Streaming of bonus shares and unfranked dividends
45A Streaming of dividends and capital benefits
45B Schemes to provide certain benefits
45BA Effect of determinations under section 45B for demerger benefits
45C Effect of determinations under sections 45A and 45B for capital benefits
45D Determinations under sections 45A, 45B and 45C
46FA Deduction for dividends on-paid to non-resident owner
46FB Unfranked non-portfolio dividend account
47 Distributions by liquidator
47A Distribution benefits—CFCs
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Division 3—Deductions
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Subdivision A—General
51AAA Deductions not allowable in certain circumstances
51AD Deductions not allowable in respect of property used under certain leveraged arrangements
51AEA Meal entertainment—election under section 37AA of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method
51AEB Meal entertainment—election under section 37CA of Fringe Benefits Tax Assessment Act 1986 to use the 12 week register method
51AEC Entertainment facility—election under section 152B of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method
51AF Car expenses incurred by employee
51AGA No deduction to employee for certain car parking expenses
51AH Deductions not allowable where expenses incurred by employee are reimbursed
51AJ Deductions not allowable for private component of contributions for fringe benefits etc.
51AK Agreements for the provision of non-deductible non-cash business benefits
52 Loss on property acquired for profit-making
52A Certain amounts disregarded in ascertaining taxable income
63 Bad debts
63D Bad debts etc. of money-lenders not allowable deductions where attributable to listed country or unlisted country branches
63E Debt/equity swaps
63F Limit on deductions where debt write offs and debt/equity swaps occur
63G Bad debts etc. of trust not allowable in certain circumstances
65 Payments to associated persons and relatives
70B Deduction for loss on disposal or redemption of traditional securities
73A Expenditure on scientific research
73AA Section 73A roll-over relief in the case of certain CGT roll-overs
73B Certain expenditure on research and development activities
73BAA Effect of consolidation
73BAB Head company treated as registered
73BABA History for purposes of eligibility for tax offset: joining entity
73BAC Expenditure history for purposes of sections 73P to 73Z: joining entity
73BACA History for purposes of eligibility for tax offset: leaving entity
73BAD Expenditure for purposes of sections 73P to 73Z history: leaving entity
73BAE Recoupment where entity leaves group
73BAF Preventing double deductions
73BAG Balancing adjustments for certain assets of consolidated groups
73BA Deduction for certain assets etc. used for the purpose of carrying on research and development activities
73BB Meaning of section 73BA depreciating asset
73BC Meaning of notional Division 40 deduction
73BD Treatment of certain expenditure for the purposes of section 73BC etc.
73BE Treatment of certain partnership expenditure for the purposes of section 73BC etc.
73BF Balancing adjustments: section 73BA depreciating assets
73BG Effective life calculation under Division 40 of Income Tax Assessment Act 1997 to take into account use for purpose of carrying on research and development activities
73BH Deduction for plant etc. used for purpose of carrying on research and development activities
73BI Meaning of section 73BH plant
73BJ Meaning of notional Division 42 deduction
73BK Treatment of certain expenditure for the purposes of section 73BJ etc.
73BL Treatment of certain partnership expenditure for the purposes of section 73BJ etc.
73BM Balancing adjustments: section 73BH plant
73BN Effective life calculation under Division 42 of Income Tax Assessment Act 1997 to take into account use for purpose of carrying on research and development activities
73C Recouped expenditure on research and development activities
73CA Guaranteed returns to investors
73CB Expenditure incurred to tax-exempt bodies
73E Section 73B roll-over relief on disposal of unit of plant to another member of same wholly-owned group
73EA Section 73BF roll-over relief on disposal of asset to another member of wholly-owned group
73EB Section 73BM roll-over relief on disposal of plant to another member of wholly-owned group
73G Section 73B roll-over relief on disposal of item of intellectual property to another member of same wholly-owned group
73H Interpretation
73I Tax offset instead of deduction under section 73B, 73BA, 73BH or 73QA
73IA Objections
73J Eligibility for tax offset
73K Meaning of R&D group turnover
73L Grouped taxpayers
73M Meaning of affiliate
73P Interpretation
73QA Extra deduction for increase in expenditure on Australian owned research and development
73QB Extra deduction for increase in expenditure on foreign owned research and development
73R Group members
73RA Increases in expenditure on Australian owned R&D by eligible companies
73RB Increases in expenditure on foreign owned R&D by eligible companies
73RC Net increase in expenditure on Australian owned R&D by the group
73RD Net increase in expenditure on foreign owned R&D by the group
73RE Adjusted increase in expenditure on R&D by the group
73S Calculating the amounts relevant to the additional deduction
73T Adjustment amounts
73V Adjustment balance
73Z Anti-avoidance
78A Certain gifts not to be allowable deductions
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Volume 2
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Part III—Liability to taxation
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Division 3—Deductions
79A Rebates for residents of isolated areas
79B Rebates for members of Defence Force serving overseas
82 Double deductions
82A Deductions for expenses of self-education
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Subdivision CB—Regional Headquarters (RHQs)
82C Object
82CA Deduction for setup costs of RHQ companies
82CB Interpretation
82CC Associated companies
82CD Application to become an RHQ company
82CE Determination of RHQ companies
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Subdivision D—Losses and outgoings incurred under certain tax avoidance schemes
82KH Interpretation
82KJ Deduction not allowable in respect of certain pre-paid outgoings
82KK Schemes designed to postpone tax liability
82KL Tax benefit not allowable in respect of certain recouped expenditure
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Subdivision H—Period of deductibility of certain advance expenditure
82KZL Interpretation
82KZLA Subdivision does not apply to financial arrangements to which Subdivision 250-E applies
82KZM Expenditure by small business entities and individuals incurring non-business expenditure
82KZMA Application of section 82KZMD
82KZMD Business expenditure and non-business expenditure by non-individual
82KZME Expenditure under some agreements
82KZMF Proportional deduction
82KZMG Deductions for certain forestry expenditure
82KZMGA Deductions for certain forestry expenditure
82KZMGB CGT event in relation to interest in 82KZMG agreement
82KZN Transfer etc. of rights under agreement
82KZO Partnership changes where entire interest in agreement rights is not transferred
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Division 3A—Convertible notes
82LA Application of Division
82L Interpretation
82M New loans and replacement loans
82N Prescribed stock exchanges
82P Bonus share allotments
82Q Classes of shares
82R Interest on certain convertible notes not to be an allowable deduction
82SA Interest on certain convertible notes to be an allowable deduction—where loan made on or after 1 January 1976
82T Value of shares
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Division 5—Partnerships
90 Interpretation
91 Liability of partnerships
92 Income and deductions of partner
92A Deductions in respect of outstanding subsection 92(2AA) amounts
94 Partner not having control and disposal of share in partnership income
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Division 5A—Income of certain limited partnerships
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Subdivision A—Preliminary
94A Object
94B Interpretation
94C Continuity of limited partnership not affected by changes in composition
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Subdivision B—Corporate limited partnerships
94D Corporate limited partnerships
94E Continuity of business test
94F Change in composition of limited partnership—election that partnership not be treated as an eligible limited partnership
94G Continuity of ownership test
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Subdivision C—Corporate tax modifications applicable to corporate limited partnerships
94H Corporate tax modifications applicable to corporate limited partnerships
94J Company includes corporate limited partnership
94K Partnership does not include corporate limited partnership
94L Dividend includes distribution of corporate limited partnership
94M Drawings etc. deemed to be dividends paid out of profits
94N Private company does not include corporate limited partnership
94P Share includes interest in corporate limited partnership
94Q Shareholder includes partner in corporate limited partnership
94R Liquidator may include partner in corporate limited partnership
94S Continuity of corporate limited partnership not affected by changes in composition
94T Residence of corporate limited partnership
94U Incorporation
94V Obligations and offences
94X Modification of loss provisions
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Division 6—Trust income
95 Interpretation
95AA Division does not apply in relation to FHSA trust
95A Special provisions relating to present entitlement
95B Certain beneficiaries deemed not to be under legal disability
96 Trustees
96A Application of Division in respect of interests in non-resident trust estates to which Part XI applies
96B Beneficiary of non-resident trust estate
96C Calculation of beneficiary’s share of net income of non-resident trust estate
97 Beneficiary not under any legal disability
97A Beneficiaries who are owners of farm management deposits
98 Liability of trustee
98A Non-resident beneficiaries assessable in respect of certain income
98B Deduction from beneficiary’s tax
99 Certain trust income to be taxed as income of an individual
99A Certain trust income to be taxed at special rate
99B Receipt of trust income not previously subject to tax
99C Determining whether property is applied for benefit of beneficiary
99D Refund of tax to non-resident beneficiary
99E Later trust not taxed on income already taxed under subsection 98(4)
99G Amounts covered by withholding requirement
99H Late payments
100 Beneficiary assessable in respect of certain trust income
100A Present entitlement arising from reimbursement agreement
101 Discretionary trusts
101A Income of deceased received after death
102 Revocable trusts
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Division 6AAA—Special provisions relating to non-resident trust estates etc.
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Subdivision A—Preliminary
102AAA Object of Division
102AAB Interpretation
102AAC Each listed country and unlisted country to be treated as a separate foreign country
102AAD Subject to tax—application of subsection 324(2)
102AAE Listed country trust estates
102AAF Public unit trusts
102AAG When entity is in a position to control a trust estate
102AAH Non-resident family trusts
102AAJ Transfer of property or services
102AAK Deemed transfers of property or services to trust estate
102AAL Division not to apply to transfers by trustees of deceased estates
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Subdivision B—Payment of interest by taxpayer on distributions from certain non-resident trust estates
102AAM Payment of interest by taxpayer on distributions from certain non-resident trust estates
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Subdivision D—Accruals system of taxation of certain non-resident trust estates
102AAS Object of Subdivision
102AAT Accruals system of taxation—attributable taxpayer
102AAU Attributable income of a trust estate
102AAV Double tax agreements to be disregarded
102AAW Certain provisions to be disregarded in calculating attributable income
102AAY Modified application of trading stock provisions
102AAZ Modified application of depreciation provisions
102AAZA Modified application of Division 13 of Part III
102AAZB General modifications—CGT
102AAZBA Modified application of CGT—effect of certain changes of residence
102AAZC Modified application of loss provisions—pre-1990-91 losses
102AAZD Assessable income of attributable taxpayer to include attributable income of trust estate to which taxpayer has transferred property or services
102AAZE Accruals system of taxation does not apply to small amounts
102AAZF Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution
102AAZG Keeping of records
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Division 6AA—Income of certain children
102AA Interpretation
102AB Application of Division
102AC Persons to whom Division applies
102AD Taxable income to which Division applies
102AE Eligible assessable income
102AF Employment income and business income
102AG Trust income to which Division applies
102AGA Transfer of property as the result of a family breakdown
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Division 6A—Alienation of income
102A Interpretation
102B Certain income transferred for short periods to be included in assessable income of transferor
102C Effect of certain transfers of rights to receive income from property
102CA Consideration in respect of transfer to be included in assessable income of transferor in certain cases
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Division 6B—Income of certain unit trusts
102D Interpretation
102E Prescribed arrangements
102F Eligible unit trusts
102G Public unit trusts
102H Resident unit trusts
102J Corporate unit trusts
102K Taxation of net income of corporate unit trust
102L Modified application of Act in relation to certain unit trusts
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Division 6C—Income of certain public trading trusts
102M Interpretation
102MA Arrangements not covered
102MB Investing in land
102MC When trading business not carried on
102N Trading trusts
102NA Certain interposed trusts not trading trusts
102P Public unit trusts
102Q Resident unit trusts
102R Public trading trusts
102S Taxation of net income of public trading trust
102T Modified application of Act in relation to certain unit trusts
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Division 6D—Provisions relating to certain closely held trusts
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Subdivision A—Overview
102UA What this Division is about
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Subdivision B—Interpretation
102UB Definitions—general
102UC Closely held trust
102UD Trustee beneficiary
102UE Meaning of untaxed part
102UG Correct TB statement
102UH TB statement period
102UI Tax-preferred amount
102UJ Extended concept of present entitlement to capital of a trust
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Subdivision C—Trustee beneficiary non-disclosure tax on share of net income
102UK Trustee beneficiary non-disclosure tax where no correct TB statement
102UL Exclusion of directors of closely held trust from liability to pay tax
102UM Trustee beneficiary non-disclosure tax where share is distributed to trustee of closely held trust
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Subdivision D—Payment etc. of trustee beneficiary non-disclosure tax
102UN Amount of trustee beneficiary non-disclosure tax reduced by notional tax offset
102UO Payment of trustee beneficiary non-disclosure tax
102UP Late payment of trustee beneficiary non-disclosure tax
102UR Notice of liability
102URA Request for notice of liability
102US Evidentiary effect of notice of liability
102USA Recovery of trustee beneficiary non-disclosure tax from trustee beneficiaries providing incorrect information etc. to head trustee
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Subdivision E—Making correct TB statement about trustee beneficiaries of tax-preferred amounts
102UT Requirement to make correct TB statement about trustee beneficiaries of tax-preferred amounts
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Subdivision F—Special provisions about tax file numbers
102UU Trustee beneficiary may quote tax file number to trustee of closely held trust
102UV Trustee of closely held trust may record etc. tax file number
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Division 7—Private companies
102V Application of Division to non-share dividends
103 Interpretation
103A Private companies
109 Excessive payments to shareholders, directors and associates deemed to be dividends
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Division 7A—Distributions to entities connected with a private company
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Subdivision A—Overview of this Division
109B Simplified outline of this Division
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Subdivision AA—Application of Division to non-share equity interests
109BA Application of Division to non-share dividends
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Subdivision B—Private company payments, loans and debt forgiveness are treated as dividends
109C Payments treated as dividends
109D Loans treated as dividends
109E Amalgamated loan from a previous year treated as dividend if minimum repayment not made
109F Forgiven debts treated as dividends
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Subdivision C—Forgiven debts that are not treated as dividends
109G Debt forgiveness that does not give rise to a dividend
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Subdivision D—Payments and loans that are not treated as dividends
109H Simplified outline of this Subdivision
109J Payments discharging pecuniary obligations not treated as dividends
109K Inter-company payments and loans not treated as dividends
109L Certain payments and loans not treated as dividends
109M Loans made in the ordinary course of business on arm’s length terms not treated as dividends
109N Loans meeting criteria for minimum interest rate and maximum term not treated as dividends
109NA Certain liquidator’s distributions and loans not treated as dividends
109NB Loans to purchase shares under employee share schemes not treated as dividends
109P Amalgamated loans not treated as dividends in the year they are made
109Q Commissioner may allow amalgamated loan not to be treated as dividend
109R Some payments relating to loans not taken into account
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Subdivision DA—Demerger dividends not treated as dividends
109RA Demerger dividends not treated as dividends
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Subdivision DB—Other exceptions
109RB Commissioner may disregard operation of Division or allow dividend to be franked
109RC Dividend may be franked if taken to be paid because of family law obligation
109RD Commissioner may extend period for repayments of amalgamated loan
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Subdivision E—Payments and loans through interposed entities
109S Simplified outline of this Subdivision
109T Payments and loans by a private company to an entity through one or more interposed entities
109U Payments and loans through interposed entities relying on guarantees
109UA Certain liabilities under guarantees treated as payments
109V Amount of private company’s payment to target entity through one or more interposed entities
109W Private company’s loan to target entity through one or more interposed entities
109X Operation of Subdivision D in relation to payment or loan
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Subdivision EA—Unpaid present entitlements
109XA Payments, loans and debt forgiveness by a trustee in favour of a shareholder etc. of a private company with an unpaid present entitlement
109XB Amounts included in assessable income
109XC Modifications
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Subdivision F—General rules applying to all amounts treated as dividends
109Y Proportional reduction of dividends so they do not exceed distributable surplus
109Z Characteristics of dividends taken to be paid under this Division
109ZA No dividend taken to be paid for withholding tax purposes
109ZB Amount treated as dividend is not a fringe benefit
109ZC Treatment of dividend that is reduced on account of an amount taken under this Division to be a dividend
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Subdivision G—Defined terms
109ZD Defined terms
109ZE Interpretation rules about entities
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Division 9—Co-operative and mutual companies
117 Co-operative companies
118 Company not co-operative if less than 90% of business with members
119 Sums received to be taxed
120 Deductions allowable to co-operative company
121 Mutual insurance associations
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Division 9AA—Demutualisation of insurance companies and affiliates
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Subdivision A—What this Division is about
121AA What this Division is about
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Subdivision B—Key concepts and related definitions
121AB Insurance company definitions
121AC Mutual affiliate company
121AD Demutualisation and demutualisation resolution day
121AE Demutualisation methods, the policyholder/member group and the listing period
121AEA Replacement of policyholders by persons exercising certain rights
121AF Demutualisation method 1
121AG Demutualisation method 2
121AH Demutualisation method 3
121AI Demutualisation method 4
121AJ Demutualisation method 5
121AK Demutualisation method 6
121AL Demutualisation method 7
121AM Embedded value of a mutual life insurance company
121AN Net tangible asset value of a general insurance company or mutual affiliate company
121AO Treasury bond rate, capital reserve adequacy level, eligible actuary and security
121AP Subsidiary and wholly-owned subsidiary
121AQ Other definitions
121AR List of definitions
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Subdivision C—Tax consequences of demutualisation
121AS CGT consequences of demutualisation
121AT Other tax consequences of demutualisation
121AU This Subdivision does not apply to demutualisation of friendly society health or life insurers
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Division 9A—Offshore banking units
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Subdivision A—Object and simplified outline
121A Object
121B Simplified outline
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Subdivision B—Interpretation
121C Interpretation
121D Meaning of OB activity
121DA Meaning of expressions relevant to investment activity
121E Meaning of offshore person
121EA OBU requirement
121EB Internal financial dealings of an OBU
121EC Meaning of OBU resident-owner money
121ED Meaning of trade with a person
121EE Definitions relating to assessable income of an OBU
121EF Definitions relating to allowable deductions of an OBU
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Subdivision C—Operative provisions
121EG Reduction of assessable OB income, allowable OB deductions and foreign income tax paid
121EH Loss of special treatment where excessive use of non-OB money
121EJ Source of income derived from OB activities
121EK Deemed interest on 90% of certain OBU resident-owner money
121EL Exemption of income etc. of OBU offshore investment trusts
121ELA Exemption of income etc. of overseas charitable institutions
121ELB Adjustment of capital gains and losses from disposal of units in OBU offshore investment trusts
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Division 9C—Assessable income diverted under certain tax avoidance schemes
121F Interpretation
121G Diverted income and diverted trust income
121H Assessment of diverted income and diverted trust income
121J Ascertainment of diverted income or diverted trust income deemed to be an assessment
121K Application of International Tax Agreements Act
121L Division applies notwithstanding exemption under other laws
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Volume 3
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Part III—Liability to taxation
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Division 10B—Industrial property
124K Interpretation
124KAA Division subject to Division 245 of Schedule 2C
124KA Application of Division where deduction allowable under former section 124ZAF or section 124ZAFA
124L Application
124M Annual deductions
124N Deductions on the disposal or lapse of a unit of industrial property
124P Amount to be included in assessable income on disposal of a unit of industrial property
124PA Roll-over relief
124Q Disposal of part of a unit of industrial property
124R Cost of a unit of industrial property
124S Residual value
124T Consideration receivable on disposal
124UA Effective life of certain units of industrial property
124V Interest by licence in patent etc.
124W Disposal of unit of industrial property on change of partnership etc.
124WA Disposal of unit of industrial property where deduction allowable under former section 124ZAF or section 124ZAFA
124Y Damages for infringement
124Z Benefit from overseas rights
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Division 10BA—Australian films
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Subdivision A—Preliminary
124ZAA Interpretation
124ZAB Provisional certificates
124ZAC Final certificates
124ZAD Determination of content of film
124ZADAA Delegation by Arts Minister
124ZADAB Review of decisions of Arts Minister
124ZADA Declarations
124ZADB Notification regarding non-completion of film
124ZAE Election that Division not apply
124ZAEA Transfer by way of security
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Subdivision B—Deductions for capital expenditure
124ZAFAA Subdivision subject to Division 245 of Schedule 2C
124ZAFA Deductions for capital expenditure under post 12 January 1983 contracts
124ZAG Expenditure of contributions
124ZAGA Satisfaction of Commissioner as to the future application of certain provisions
124ZAH Allocation of contributions expended
124ZAJ Non-arm’s length transactions
124ZAK Amounts expended in acquiring assets
124ZAL Deduction reduced if future copyright assigned
124ZAM No deduction unless expenditure at risk
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Subdivision C—Miscellaneous
124ZAO Limitation on deductibility of revenue expenses
124ZAP Special provisions relating to partnerships
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Division 10E—PDFs (pooled development funds)
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Subdivision A—Shares in PDFs
124ZM Treatment distributions to shareholders in PDF
124ZN Exemption of income from sale of shares in a PDF
124ZO Shares in a PDF are not trading stock
124ZQ Effect of company becoming a PDF
124ZR Effect of company ceasing to be a PDF
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Subdivision B—The taxable income of PDFs
124ZS Definitions
124ZTA Taxable income in first year as PDF if PDF component is nil
124ZT SME assessable income
124ZU SME income component
124ZV Unregulated investment component
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Subdivision C—Adjustments of the tax treatment of capital gains and capital losses of PDFs
124ZW Definitions
124ZX Companies to which this Subdivision applies
124ZY Classes of assessable income
124ZZ Treatment of capital gains
124ZZA Allocation of gain amounts and loss amounts to classes of assessable income
124ZZB Assessable income etc. in relation to capital gains
124ZZD No net capital loss
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Division 11—Interest paid by companies on bearer debentures
126 Interest paid by a company on bearer debentures
127 Credit for tax paid by company
128 Assessments of tax
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Division 11A—Dividends, interest and royalties paid to non-residents and to certain other persons
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Subdivision A—General
128AAA Application of Division to non-share dividends
128A Interpretation
128AA Deemed interest in respect of transfers of certain securities
128AB Certificates relating to issue price of certain securities
128AC Deemed interest in respect of hire-purchase and certain other agreements
128AD Indemnification etc. agreements in relation to bills of exchange and promissory notes
128AE Interpretation provisions relating to offshore banking units
128AF Payments through interposed entities
128B Liability to withholding tax
128C Payment of withholding tax
128D Certain income not assessable
128F Division does not apply to interest on certain publicly offered company debentures or debt interests
128FA Division does not apply to interest on certain publicly offered unit trust debentures or debt interests
128GB Division not to apply to interest payments on offshore borrowings by offshore banking units
128NA Special tax payable in respect of certain securities and agreements
128NB Special tax payable in respect of certain dealings by current and former offshore banking units
128NBA Credits in respect of amounts assessed in relation to certain financial arrangements
128P Objections
128Q Power of Commissioner to obtain information
128R Informal arrangements
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Division 11B—Equity investments in small-medium enterprises
128TG Summary of this Division
128TH When Division applies
128TI Consequences of Division applying
128TJ Acquiring a threshold interest in an SME
128TK SME or small-medium enterprise
128TL Subsidiary and direct ownership group
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Division 11C—Payments in respect of mining operations on Aboriginal land
128U Interpretation
128V Liability to mining withholding tax
128W Payment of mining withholding tax
128X Power of Commissioner to obtain information
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Division 12—Oversea ships
129 Taxable income of ship-owner or charterer
130 Master or agent to make return
131 Determination by Commissioner
132 Assessment of tax
133 Master liable to pay
134 Notice of assessment
135 Clearance of ship
135A Freights payable under certain agreements
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Division 13—International agreements and determination of source of certain income
136AA Interpretation
136AB Operation of Division
136AC International agreements
136AD Arm’s length consideration deemed to be received or given
136AE Determination of source of income etc.
136AF Consequential adjustments to assessable income and allowable deductions
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Division 15—Insurance with non-residents
141 Interpretation
142 Income derived by non-resident insurer
143 Taxable income of non-resident insurer
144 Liability of agents of insurer
145 Deduction of premiums
146 Exporter to furnish information
147 Rate of tax in special circumstances
148 Reinsurance with non-residents
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Division 16—Averaging of incomes
149 Average income
149A Capital gains, abnormal income and certain death benefits to be disregarded
150 First average year
151 First application of Division in relation to a taxpayer
152 Taxpayer not in receipt of assessable income
153 Taxpayer with no taxable income
154 Excess of allowable deductions
155 Permanent reduction of income
156 Rebate of tax for, or complementary tax payable by, certain primary producers
157 Application of Division to primary producers
158 Application of Division
158A Election that Division not apply
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Division 16D—Certain arrangements relating to the use of property
159GE Interpretation
159GEA Division applies to certain State/Territory bodies
159GF Residual amounts
159GG Qualifying arrangements
159GH Application of Division in relation to property
159GJ Effect of application of Division on certain deductions etc.
159GK Effect of application of Division on assessability of arrangement payments
159GL Special provision relating to Division 10C or 10D property
159GM Special provision where cost of plant etc. is also eligible capital expenditure
159GN Effect of use of property under qualifying arrangement for producing assessable income
159GO Special provisions relating to partnerships
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Division 16E—Accruals assessability etc. in respect of certain security payments
159GP Interpretation
159GQ Tax treatment of holder of qualifying security
159GQA Accrual period
159GQB Accrual amount
159GQC Implicit interest rate for fixed return security
159GQD Implicit interest rate for variable return security
159GR Consequences of actual payments
159GS Balancing adjustments on transfer of qualifying security
159GT Tax treatment of issuer of a qualifying security
159GU Effect of Division on certain transfer profits and losses
159GV Consequence of variation of terms of security
159GW Effect of Division in relation to non-residents
159GX Effect of Division where certain payments not assessable
159GY Effect of Division where qualifying security is trading stock
159GZ Stripped securities
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Division 16J—Effect of cancellation of subsidiary’s shares in holding company
159GZZZC Interpretation—general
159GZZZD Meaning of eligible entity, eligible interest and eligible proportion
159GZZZE Share cancellations to which this Division applies
159GZZZF Effect on subsidiary of share cancellations to which this Division applies
159GZZZG Pre-cancellation disposals of eligible interests
159GZZZH Post-cancellation disposals of eligible interests etc.
159GZZZI Additional application of sections 159GZZZG and 159GZZZH to associates
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Division 16K—Effect of buy-backs of shares
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Subdivision AA—Application of Division to non-share equity interests
159GZZZIA Application of Division to non-share dividends
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Subdivision A—Interpretation
159GZZZJ Interpretation
159GZZZK Explanation of terms
159GZZZL Special buy-backs not made in ordinary course of trading on a stock exchange
159GZZZM Purchase price in respect of buy-back
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Subdivision B—Company buying-back shares
159GZZZN Buy-back and cancellation disregarded for certain purposes
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Subdivision C—Off-market purchases
159GZZZP Part of off-market purchase price is a dividend
159GZZZQ Consideration in respect of off-market purchase
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Subdivision D—On-market purchases
159GZZZR No part of on-market purchase price is a dividend
159GZZZS Consideration in respect of on-market purchase
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Division 16L—Tax-exempt infrastructure borrowings
159GZZZZD Interpretation
159GZZZZE Infrastructure borrowings to be non-assessable and non-deductible
159GZZZZF Tax exemption to be disregarded for certain purposes
159GZZZZG Rebate election
159GZZZZH Tax payable where infrastructure borrowing certificate cancelled
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Division 17—Rebates
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Subdivision A—Concessional rebates
159H Application
159HA Indexation of rebate amounts in sections 159J, 159K and 159L
159J Rebates for dependants
159K Sole parent rebate
159L Housekeeper
159M Double concessional rebates
159N Rebate for certain low-income taxpayers
159P Rebate for medical expenses
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Subdivision AB—Lump sum payments in arrears
159ZR Interpretation
159ZRA Eligibility for rebate
159ZRB Calculation of rebate
159ZRC Notional tax amount for recent accrual years
159ZRD Notional tax amount for distant accrual years
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Subdivision B—Miscellaneous
160AAAA Tax rebate for low income aged persons
160AAAB Tax rebate for low income aged persons—trustees assessed under section 98
160AAA Rebate in respect of certain pensions, benefits etc.
160AAB Rebate in respect of amounts assessable under section 26AH
160AD Maximum amount of rebates
160ADA Most tax offsets under the 1997 Assessment Act are treated as rebates
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Part IIIB—Australian branches of foreign banks
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Division 1—Preliminary
160ZZVA Object
160ZZVB Application
160ZZV Definitions
160ZZW Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity
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Division 2—Provisions relating to income tax
160ZZX Income of branch to have Australian source
160ZZZ Notional borrowing by branch from bank
160ZZZA Notional payment of interest by branch to bank
160ZZZC Offshore banking units
160ZZZE Notional derivative transactions between branch and bank
160ZZZF Notional foreign exchange transactions between branch and bank
160ZZZG Losses
160ZZZH Net capital losses
160ZZZI Certain transactions to be disregarded
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Division 3—Provisions relating to withholding tax
160ZZZJ Withholding tax on interest paid by branch to bank
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Division 4—Extension of Part to Australian branches of foreign financial entities
160ZZZK Treatment like Australian branches of foreign banks
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Part IV—Returns and assessments
161 Annual returns
161A Form and content of returns
161AA Contents of returns of full self-assessment taxpayers
161G Tax agent to give taxpayer copy of notice of assessment
162 Further returns and information
163 Special returns
163A Late lodgement penalty—relevant entities, instalment taxpayers and full self-assessment taxpayers
163AA General interest charge on unpaid penalty
163B Late lodgment of returns by persons other than relevant entities, instalment taxpayers and full self-assessment taxpayers
164 Returns deemed to be duly made
166 Assessment
166A Deemed assessment
167 Default assessment
168 Special assessment
169 Assessments on all persons liable to tax
169A Reliance by Commissioner on returns and statements
170 Amendment of assessments
170C Power of Commissioner to reduce amount of tax payable in certain cases
171 Where no notice of assessment served
171A Limited period to make assessments for nil liability returns for the 2003-04 year of income or earlier
172 Refunds of amounts overpaid
173 Amended assessment to be an assessment
174 Notice of assessment
175 Validity of assessment
175A Objections against assessments
176 Judicial notice of signature
177 Evidence
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Part IVA—Schemes to reduce income tax
177A Interpretation
177B Operation of Part
177C Tax benefits
177CA Withholding tax avoidance
177D Schemes to which Part applies
177E Stripping of company profits
177EA Creation of franking debit or cancellation of franking credits
177EB Cancellation of franking credits—consolidated groups
177F Cancellation of tax benefits etc.
177G Amendment of assessments
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Part VA—Tax file numbers
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Division 1—Preliminary
202 Objects of this Part
202A Interpretation
202AA Definition of eligible PAYG payment
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Division 2—Issuing of tax file numbers
202B Application for tax file number
202BA Issuing of tax file numbers
202BB Current tax file number
202BC Deemed refusal by Commissioner
202BD Interim notices
202BE Cancellation of tax file numbers
202BF Alteration of tax file numbers
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Division 3—Quotation of tax file numbers by recipients of eligible PAYG payments
202C TFN declarations by recipients of eligible PAYG payments
202CA Operation of TFN declaration
202CB Quotation of tax file number in TFN declaration
202CC Making a replacement TFN declaration in place of an ineffective declaration
202CD Sending of TFN declaration to Commissioner
202CE Effect of incorrect quotation of tax file number
202CF Payer must notify Commissioner if no TFN declaration by recipient
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Division 4—Quotation of tax file numbers in connection with certain investments
202D Explanation of terms: investment, investor, investment body
202DA Phasing-in period for Division
202DB Quotation of tax file numbers in connection with investments
202DC Method of quoting tax file number
202DD Investor excused from quoting tax file number in certain circumstances
202DDB Quotation of tax file number in connection with indirectly held investment
202DE Securities dealer to inform the investment body of tax file number
202DF Effect of incorrect quotation of tax file number
202DG Investments held jointly
202DH Tax file number quoted for superannuation or surcharge purposes taken to be quoted for purposes of the taxation of eligible termination payments
202DHA Tax file number quoted for Division 3 purposes taken to have been quoted for superannuation purposes
202DI Tax file number quoted for RSA purposes taken to be quoted for purposes of the taxation of superannuation benefits
202DJ Tax file number quoted for purposes of taxation of superannuation benefits taken to be quoted for surcharge purposes
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Division 4A—Quotation of tax file numbers in connection with farm management deposits
202DK Interpretation
202DL Quotation of tax file number
202DM Effect of incorrect quotation of tax file number
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Division 5—Exemptions
202EA Persons receiving certain pensions etc.—employment
202EB Persons receiving certain pensions etc.—investments
202EC Entities not required to lodge income tax returns
202EE Non-residents
202EF Territory residents etc.
202EG Manner of completing declarations
202EH Declarations under this Division to be retained in certain circumstances
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Division 6—Review of decisions
202F Review of decisions
202FA Statements to accompany notification of decisions
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Division 7—Manner of providing information
202G Transmission of information in accordance with specifications
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Volume 4
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Part VI—Collection and recovery of tax
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Division 1—General
204 When tax payable
213 Temporary business
219 Consolidated assessments
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Division 8—Prompt recovery, through estimates and payment agreements, of certain amounts not remitted
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Subdivision A—Object and interpretation
222AFA Object and outline
222AFB Interpretation
222AFC Unpaid amount
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Subdivision B—Making, reducing and revoking estimates
222AGA When Commissioner may make estimate
222AGB Notice to person liable
222AGC Reducing amount of estimate
222AGD Revoking estimate
222AGE Matters for Commissioner to consider under sections 222AGC and 222AGD
222AGF Requirements for statutory declaration under section 222AGC or 222AGD
222AGG Further estimate after previous estimate revoked or discharged
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Subdivision C—Recovering unpaid amount of estimate
222AHA Nature of liability created by notice
222AHB Refund if estimate exceeds underlying liability
222AHC Defences in recovery proceedings
222AHD Effect of affidavit on estimate
222AHE Requirements for affidavit under section 222AHC
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Subdivision D—Insolvency proceedings
222AIA Effect on statutory demand if estimate reduced or revoked
222AIB Defences on winding up application
222AIC Effect of affidavit on estimate
222AID Requirements for affidavit under section 222AIB
222AIE Defences under section 222AIB not available on application to set aside statutory demand
222AIF Estimate provable in bankruptcy or winding up
222AIG Rejection of proof of debt relating to estimate
222AIH Requirements for statutory declaration under section 222AIG
222AII Provisions altering effect of Corporations Act
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Subdivision E—Late payment of estimate
222AJA Liability to the general interest charge
222AJB Effect of paying the general interest charge
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Subdivision F—Effect on liabilities under this and other Divisions if estimate reduced or revoked
222AKA Liabilities adjusted with effect from when they arose
222AKB Reduction or revocation does not prejudice Commissioner’s rights in relation to underlying liability
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Subdivision G—Payment agreements
222ALA Commissioner may make agreement
222ALB Effect of certain payments
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Subdivision H—Miscellaneous
222AMA Effect of judgment on liability on which it is based
222AMB Notices under this Division where trustee has control of affairs of person liable
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Division 9—Penalties for directors of non-remitting companies
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Subdivision A—Object and interpretation
222ANA Object and outline
222ANB Interpretation
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Subdivision B—Company failing to remit deductions, amounts withheld etc.
222AOA Application
222AOB Directors to cause company to remit or to go into voluntary administration or liquidation—deductions and amounts withheld
222AOBAA Directors to cause company to remit or to go into voluntary administration or liquidation—alienated personal services payments
222AOBA Directors to cause company to remit or to go into voluntary administration or liquidation—non-cash benefits
222AOC Penalty for directors in office on or before due date
222AOD Penalty for new directors
222AOE Commissioner must give 14 days’ notice before recovering penalty
222AOF How notice may be given
222AOG Remission of penalty if section 222AOB, 222AOBAA or 222AOBA complied with before notice period ends
222AOH Effect of director paying penalty or company discharging underlying liability
222AOI Director’s rights of indemnity and contribution
222AOJ Defences
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Subdivision C—Company failing to pay estimate under Division 8
222APA Application
222APB Directors to cause company to pay estimate or to go into voluntary administration or liquidation
222APC Penalty for directors in office within 14 days after notice of estimate
222APD Penalty for new directors
222APE Commissioner must give 14 days’ notice before recovering penalty
222APF Remission of penalty if section 222APB complied with before notice period ends
222APG Effect of director paying penalty or company discharging liability in respect of estimate
222APH Director’s rights of indemnity and contribution
222API Defences
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Subdivision D—Company contravening payment agreement under Division 8
222AQA Directors to ensure that company complies with payment agreement
222AQB Effect of director paying penalty or company discharging liability
222AQC Director’s rights of indemnity and contribution
222AQD Defences
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Division 10—Miscellaneous
222ARA This Part not to limit or exclude Chapter 5 of the Corporations Act
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Part VIIB—Medicare levy and Medicare levy surcharge
251R Interpretation
251S Medicare levy
251T Levy (other than certain levy increases) not payable by prescribed persons or by certain trustees
251U Prescribed persons
251V Subsections 251R(4), (5), (6B), (6C) and (6D) not to apply to certain medicare levy increases
251VA Subsection 251U(3) not to apply for certain medicare levy increases
251W Regulations
251X Notice of assessment to set out Medicare levy and surcharge
251Z Administration of Medicare levy surcharge Act
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Part VIII—Miscellaneous
252 Public officer of company
252A Public officer of trust estate
254 Agents and trustees
255 Person in receipt or control of money from non-resident
257 Payment of tax by banker
260 Contracts to evade tax void
262 Periodical payments in the nature of income
262A Keeping of records
263 Access to books etc.
264 Commissioner may require information and evidence
264AA Reporting to Agriculture Secretary
264A Offshore information notices
264BB Commissioner may require private health insurers to provide information
265A Release of liability of members of the Defence Force on death
265B Notices in relation to certain securities
266 Regulations
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Part X—Attribution of income in respect of controlled foreign companies
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Division 1—Preliminary
316 Object of Part
317 Interpretation
318 Associates
319 Statutory accounting period of a company
320 Listed countries and unlisted countries
321 Each listed country and each unlisted country to be treated as a separate foreign country
322 Meaning of entitled to acquire
323 State foreign taxes may be treated as federal foreign taxes
324 When income or profits subject to tax in a listed country
325 When dividends etc. taxed in a country at normal company tax rate
326 AFI subsidiary
327 Eligible finance shares
327A Widely distributed finance shares
327B Transitional finance shares
328 Non-resident family trusts
329 Public unit trusts
330 Tax detriment
331 Company deemed to be treated as a resident of a listed country or an unlisted country for the purposes of the tax law of that country
332 Companies that are residents of listed countries
332A Companies that are residents of section 404 countries
333 Companies that are residents of unlisted countries
334A Voting interests in companies
335 References extend to pre-commencement matters and things
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Division 2—Types of entity
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Subdivision A—Australian entities
336 Australian entity
337 Australian partnership
338 Australian trust
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Subdivision B—Controlled foreign entities (CFEs)
339 Controlled foreign entity (CFE)
340 Controlled foreign company (CFC)
341 Controlled foreign partnership (CFP)
342 Controlled foreign trust (CFT)
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Subdivision C—Eligible transferors in relation to trusts
343 Interpretation
344 References to transfer of property or services
345 Deemed transfers of property or services
346 Circumstances in which a transfer of property or services is an eligible business transaction
347 Eligible transferor in relation to a discretionary trust
348 Eligible transferor in relation to a non-discretionary trust or a public unit trust
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Division 3—Control interests, attribution interests, attributable taxpayers and attribution percentages
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Subdivision A—Control interests
349 Associate-inclusive control interest in a company or trust
350 Direct control interest in a company
351 Direct control interest in a trust
352 Indirect control interest in a company or trust
353 Control tracing interest in a company
354 Control tracing interest in a CFP
355 Control tracing interest in a CFT
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Subdivision B—Attribution interests
356 Direct attribution interest in a CFC or CFT
357 Indirect attribution interest in a CFC or CFT
358 Attribution tracing interest in a CFC
359 Attribution tracing interest in a CFP
360 Attribution tracing interest in a CFT
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Subdivision C—Attributable taxpayers and attribution percentages
361 Attributable taxpayer in relation to a CFC or a CFT
362 Attribution percentage of an attributable taxpayer
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Division 4—Attribution accounts
363 Attribution account entity
364 Attribution account percentage
365 Attribution account payment
366 Direct attribution account interest in a company
367 Direct attribution account interest in a partnership
368 Direct attribution account interest in a trust
369 Indirect attribution account interest in an entity
370 Attribution surplus
371 Attribution credit
372 Attribution debit
373 Grossed-up amount of an attribution debit
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Division 7—Calculation of attributable income of CFC
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Subdivision A—Basic principles
381 Separate attributable income for each attributable taxpayer
382 Attributable income is taxable income calculated on certain assumptions
383 Basic assumptions
384 Additional assumption for unlisted country CFC
385 Additional assumption for listed country CFC
386 Adjusted tainted income
387 Reduction of attributable income because of interim dividends
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Subdivision B—General modifications of Australian tax law
388 Double tax agreements to be disregarded
389 Certain provisions to be disregarded in calculating attributable income
389A Other provisions to be disregarded in calculating attributable income
390 Elections to be made by eligible taxpayer
392 Notional assessable amounts are to be pre-tax
393 Notional allowable deduction for taxes paid
394 Notional allowable deduction for eligible finance share dividends, widely distributed finance share dividends and transitional finance share dividends
395 Expenditure incurred to produce income or profits in later statutory accounting periods
396 Modified application of sections 25A and 52
397 Modified application of trading stock provisions
398 Modified application of depreciation provisions
398A Application of Division 3A of Part III
399 Modifications of net income of partnerships and trusts
399A Modified application of bad debt etc. provisions
400 Modified application of Division 13 of Part III
401 Reduction of capital proceeds where attributed income not distributed
402 Additional notional exempt income—unlisted or listed country CFC
403 Additional notional exempt income—unlisted country CFC
404 Additional notional exempt income—listed or section 404 country CFC
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Subdivision C—Modifications relating to Australian capital gains tax
405 Interpretation
406 Meaning of commencing day and commencing day asset
408 Certain capital gains and losses disregarded
408A Certain events before commencing day ignored
409 Losses before 30 June 1990 to be disregarded
410 General modifications—CGT
411 Commencing day assets taken to have been acquired on commencing day
412 Cost base of commencing day asset
413 Adjustment of cost base as at commencing day—return of capital
414 Exercise of rights
418 Options
418A Effect of change of residence from Australia to listed or unlisted country
419 Modified application of Subdivision 126-B of the Income Tax Assessment Act 1997
421 Elections under CGT roll-over provisions
422 Adjustment of capital proceeds where change of residence by eligible CFC from unlisted to listed country
423 Adjustment of capital proceeds where section 47A applies to rolled-over assets
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Subdivision D—Modifications relating to losses
425 Sometimes-exempt income etc.
426 Creation of loss
427 Certain provisions to be disregarded
428 Subdivision to apply as if there were always a requirement to calculate attributable income
429 Notional allowable deduction for (sometimes-exempt income) loss
431 Deduction etc. for previous period loss
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Subdivision E—Modifications relating to application of Part XI
431A Exemption of attributable taxpayer from Part XI
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Division 8—Active income test
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Subdivision A—Basic conditions for passing the active income test
432 Active income test
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Subdivision B—Tainted income ratio
433 Tainted income ratio
434 Gross turnover
435 Gross tainted turnover
436 Amounts excluded from active income test
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Subdivision C—Treatment of partnership income
437 Treatment of partnership income
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Subdivision D—General interpretive provisions
438 Roll-overs—asset disposals
439 When currency exchange gains or losses relate to active income transactions
440 Asset disposals—revaluations and arm’s length amounts
441 Hire-purchase and other property financing transactions
442 Assumption of rights of lender under a loan
443 Net tainted commodity gains
444 Net tainted currency exchange gains
445 Net gains—disposal of tainted assets
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Subdivision E—Passive income, tainted sales income and tainted services income
446 Passive income
447 Tainted sales income
448 Tainted services income
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Subdivision F—Special rules relating to AFI subsidiaries carrying on financial intermediary business
449 AFI subsidiaries—interest income
450 AFI subsidiaries—asset disposals and currency transactions
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Subdivision G—Substantiation requirements
451 Active income test—substantiation requirements for company
452 Active income test—substantiation requirements for partnership
453 Active income test—substantiation requirements for attributable taxpayer
454 Assessment on assumption—retention of accounts etc. and compliance with information notices
455 Amendment of assessments
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Division 9—Attribution of attributable income and other amounts
456 Assessability in respect of CFC’s attributable income
456A Reduction of section 456 assessability where item subject to foreign accruals tax
457 Assessability where CFC changes residence from unlisted country to listed country or to Australia
459A Assessability where CFC or CFT has interest in certain attributable taxpayers
460 Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution
460A Effect of reducing section CGT event J1 amount
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Division 10—Post-attribution asset disposals
461 Reduction of capital proceeds where attributed income not distributed
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Division 11—Keeping of records
462 Keeping of records—section 456
462A Keeping of records—section 457
464A Keeping of records—section 459A
465 Offence of failing to keep records
466 Manner in which records required to be kept
467 Circumstances where records not required to be kept—reasonable excuse etc.
468 Treatment of partnerships
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Part XI—Foreign investment funds and foreign life assurance policies
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Division 1—Preliminary
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Subdivision A—Application of Part
469 Taxpayers to be taxed on share of income of certain foreign investment funds and foreign life assurance policies
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Subdivision B—Meaning of certain expressions used in this Part
470 Definitions
471 Australian entity
472 Australian partnership
473 Australian trust
474 Distributions by a FIF or a FLP
475 Entitlement to acquire
476 Quoted price
477 Resident superannuation entity
478 Tax detriment
479 Wholly-owned subsidiary
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Subdivision C—Key concepts
480 Outline of Subdivision
481 What is a FIF
482 What is a FLP
483 What is an interest in a FIF or a FLP
484 Bare trustee’s interest to be attributed to beneficiary
485 Taxpayers to whose interests in FIFs and FLPs this Part applies
485AA Election to exclude interests in foreign hybrids from operation of this Part
485A Applying operative provision in working out net income of partnership or trust estate
486 Notional accounting period of a FIF
487 Notional accounting period of a FLP
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Subdivision D—The disposal and acquisition of interests
488 What is a disposal or acquisition of an interest in a FIF or a FLP
489 Time of disposal or acquisition of interest
490 Consideration for disposal or acquisition
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Subdivision E—Associates
491 Associates of an entity to be determined in accordance with section 318 as modified
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Division 2—Exemption of attributable taxpayers for interests in certain FIFs
492 Object of Division
493 Exemption of attributable taxpayer in relation to certain trusts
494 Exemption of attributable taxpayer referred to in section 456
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Division 3—Exemption for interest in foreign company that is designated as engaging, or whose assets are principally for use, in certain activities
495 Object of Division
496 Interpretation
497 Exemption
498 How to determine whether a foreign company is taken to have been principally engaged in eligible activities
499 Stock exchange listing method
500 Balance-sheet method
501 Indirect ownership of paid-up share capital of company
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Division 4—Exemption for interest in foreign bank or holding company of foreign bank
502 Object of Division
503 Exemption for interest in foreign bank
504 Exemption for interest in foreign holding company of foreign bank
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Division 5—Exemption for interest in foreign company whose assets are principally for use in carrying on life insurance business
505 Object of Division
506 Exemption for interest in foreign life insurance company
507 How to determine whether a foreign company was principally engaged in carrying on life insurance business
507A Exemption for interest in foreign holding company of foreign life insurance company
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Division 6—Exemption for interest in foreign general insurance company
508 Object of Division
509 Exemption for interest in foreign general insurance company
509A Exemption for interest in foreign holding company of foreign general insurance company
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Division 7—Exemption for interest in foreign company engaged in certain activities connected with real property
510 Object of Division
511 Exemption
511A Exemption for interest in foreign holding company of foreign real property company
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Division 8—Exemption for interests in certain US entities
512 Object of Division
512A Division does not apply to interests in CFTs
513 Exemptions
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Division 9—Exemption for interests of less than $50,000
514 Object of Division
515 Exemption
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Division 11—Exemption for interest in an employer-sponsored superannuation fund
518 Object of Division
519 Interests of employees and former employees to be exempt
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Division 11A—Exemption for complying superannuation/FHSA assets, segregated exempt assets and interests held by complying superannuation entities etc.
519A Objects of Division
519B Exemption
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Division 12—Exemption for certain interests that are trading stock
520 Object of Division
521 Exemption
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Division 13—Exemption for interest in foreign company principally engaged in several activities
522 Object of Division
523 Exemption
523A Exemption for interest in foreign holding company of foreign mixed activity company
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Division 14—Exemption for interests in FIFs the value of which is not more than 10% of the value of all taxpayers’ interests in FIFs
524 Object of Division
525 Exemption
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Division 15—Exemption for certain interests of underwriting members of Lloyd’s
526 Object of Division
527 Exemption
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Division 16—Assessable income to include foreign investment fund income
528 Object of Division
529 Foreign investment fund income to be included in assessable income
530 Reduction of foreign investment fund income because of interim dividend or interim distribution of trust income
530A Reduction of foreign investment fund income because of employee share scheme
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Division 17—Foreign Investment Fund losses resulting from application of market value method or cash surrender value method to be allowable deductions
531 Object of Division
532 Foreign investment fund loss from FIF under market value method to be allowable deduction
533 Foreign investment fund loss from FLP under cash surrender value method to be allowable deduction
533A Foreign investment fund losses to be expressed in Australian currency
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Division 17A—Deduction for overseas superannuation transfers
533B Deduction for overseas superannuation transfers
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Division 18—How to determine whether Foreign Investment Fund income accrued to a taxpayer from a FIF or a FLP
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Subdivision A—Preliminary
534 Object of Division
535 Methods applicable in relation to a FIF
536 Methods applicable in relation to FLP
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Subdivision B—Market value method for FIFs
537 Procedure for determining foreign investment fund income by market value method
538 Step 1—calculation of foreign investment fund amount
539 How market value is ascertained
540 Gross foreign investment fund income
541 Foreign investment fund loss
542 Step 2—Calculation of foreign investment fund income
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Subdivision C—Deemed rate of return method for FIFs
543 Procedure for determining foreign investment fund income from a FIF by deemed rate of return method
544 Step 1—groups of interests
545 Step 2—determination of opening value of interests
550 If relevant period starts after 1 January 1993
551 Value of interests at start of relevant period (being later than 1 January 1993)—deemed rate of return method applied for previous period
552 Value of interests at start of relevant period (being later than 1 January 1993)—calculation method applied, or interests exempt, for previous period
553 Value of interests at start of relevant period (being later than 1 January 1993)—market value method applied for previous period
554 Value of interests at time of acquisition (after start of relevant period)
555 Step 3—determination of foreign investment fund amount
556 Step 4—conversion of foreign investment fund amount to Australian currency
557 Foreign investment fund income
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Subdivision D—Calculation method for FIFs
557A Certain other provisions to be disregarded in applying this Subdivision
558 Procedure for determining foreign investment fund income by calculation method
559 Determination of calculated profit or calculated loss of FIF
559A Choice to work out notional income and notional deductions under Part X
560 Notional income—general provision
561 Section 560 to be subject to following provisions
562 Notional income—discounted securities
563 Notional income—interest in net income from partnership
564 Notional income—exclusion of certain dividends and trust distributions
565 Derivation of income, profits or gains
566 Notional income to be pre-tax
567 Notional deductions—general provision
567A Notional deductions: net capital losses
568 Notional deductions—expenditure in acquiring trading stock
569 Notional deductions—exclusion of expenditure in acquiring securities or partnership interest
570 Notional deductions—amortisation of expenditure in acquiring property
571 Notional deductions—interest in partnership loss
572 Notional deductions—past calculated losses
573 Notional deductions—taxes
574 Notional deductions—certain amounts to be excluded
575 Application
576 Notional income of FIF to include foreign investment fund income from second tier FIF or from FLP
577 How to determine whether foreign investment fund income accrued from second tier FIF or from FLP
578 What happens if there is a calculated loss in respect of second tier FIF
579 If second tier FIF has interest in a third tier FIF or in a FLP
580 Procedure to be followed
581 How to work out attribution percentage applicable to taxpayer in respect of interest or interests in foreign company
582 Procedure to be followed
583 Foreign investment fund income
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Subdivision E—Deemed rate of return method for FLPs
584 Procedure for determining foreign investment fund income from FLP by deemed rate of return method
585 Step 1—interests in a FLP
586 Step 2—determination of opening value
589 If relevant period starts after 1 January 1993
590 Value at start of relevant period (being later than 1 January 1993)
591 Value at time of acquisition (after start of relevant period)
592 Step 3—determination of foreign investment fund amount
593 Step 4—conversion of foreign investment fund amount to Australian currency
594 Foreign investment fund income
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Subdivision F—Cash surrender value method for FLPs
595 Procedure for determining foreign investment fund income by cash surrender value method
596 Step 1—calculation of foreign investment fund amount
598 Gross foreign investment fund income
599 Foreign investment fund loss
600 Step 2—Calculation of foreign investment fund income
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Division 19—FIF attribution accounts
601 FIF attribution account entity
602 FIF attribution account percentage
603 FIF attribution account payments
604 FIF attribution surplus
605 FIF attribution credit
606 FIF attribution debit
607 Additional FIF attribution debit
607AA Additional FIF attribution debit—deduction for overseas superannuation transfers
607A Grossed-up amount of a FIF attribution debit
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Division 21—Post-attribution asset disposals
613 Reduction of capital proceeds if FIF attributed income not distributed
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Division 22—Keeping of records
614 Application of Division
615 Records of acts, transactions etc.
616 Interest in FIF—if market value method was applied
617 Interest in FIF—if deemed rate of return method was applied
618 Interest in FIF—if calculation method was applied
619 Interest in FLP
620 Interest in FIF or FLP—if exemption applied
621 Offence of failing to keep records
622 Manner in which records required to be kept
623 If calculation method was applied—defence for failing to keep records if information unobtainable
624 Treatment of partnerships
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Volume 5
Schedule 2
Part I
Part II
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Schedule 2C—Forgiveness of commercial debts
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Division 245—Forgiveness of commercial debts
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Guide to Division 245
245-1 What this Division is about
245-2 Simplified outline of this Division
245-3 Map of this Division
Subdivision 245-A—Debts to which this Division applies
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Guide to Subdivision 245-A
245-5 What this Subdivision is about
245-6 Map of this Subdivision
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Operative provisions
245-10 Application of this Division
245-15 What is a debt
245-20 Debt includes accrued interest
245-25 What constitutes a commercial debt
245-26 Application to trustees
Subdivision 245-B—What constitutes forgiveness of a debt
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Guide to Subdivision 245-B
245-30 What this Subdivision is about
245-31 Map of this Subdivision
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Operative provisions
245-35 What constitutes forgiveness of a debt
245-40 Forgivenesses to which this Division does not apply
Subdivision 245-C—Calculation of gross forgiven amount of a debt
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Guide to Subdivision 245-C
245-45 What this Subdivision is about
245-46 Simplified outline of this Subdivision
245-47 Map of this Subdivision
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Operative provisions
245-50 What constitutes a forgiven debt if consideration is given in respect of the forgiveness
245-55 Working out notional value of a debt other than a non-recourse debt
245-60 Special rule for working out notional value of a non-recourse debt
245-61 Special rule for working out notional value of parked debt
245-65 The consideration in respect of forgiveness of a debt
245-70 Money or other property applied for benefit of creditor
245-75 Gross forgiven amount of a debt
Subdivision 245-D—Calculation of net forgiven amount of a debt
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Guide to Subdivision 245-D
245-80 What this Subdivision is about
245-81 Map of this Subdivision
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Operative provisions
245-85 Reduction of gross forgiven amount
245-90 Agreement between companies under common ownership for creditor to forgo capital loss or revenue deduction
Subdivision 245-E—Application of net forgiven amounts
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Guide to Subdivision 245-E
245-95 What this Subdivision is about
245-96 Map of this Subdivision
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General operative provisions
245-100 Subdivision not to apply to calculation of attributable income
245-105 How total net forgiven amount is to be applied
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Operative provisions relating to reduction of revenue losses
245-110 Definitions applicable to provisions reducing revenue losses
245-115 Total net forgiven amount to be applied in reduction of revenue losses
245-120 Allocation of total net forgiven amount in respect of deductible revenue losses
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Operative provisions relating to reduction of net capital losses
245-125 Definitions applicable to provisions reducing net capital losses
245-130 Residual forgiven amount to be applied in reduction of net capital losses
245-135 Allocation of residual forgiven amount in respect of deductible net capital losses
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Operative provisions relating to reduction of deductible expenditure
245-140 Definitions applicable to provisions reducing deductible expenditure
245-145 Residual forgiven amount to be applied in reduction of deductible expenditures
245-150 Allocation of residual forgiven amount in respect of deductible expenditures
245-155 How a reduction of a deductible expenditure is to be effected
245-160 Amount applied in reduction of deductible expenditure to be included in assessable income in certain circumstances
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Operative provisions relating to reduction of cost bases of assets
245-165 Definitions applicable to provisions reducing cost bases
245-170 Excluded assets
245-175 Residual forgiven amount to be applied in reduction of cost bases of assets
245-180 Allocation of residual forgiven amount among relevant cost bases of assets
245-185 Relevant cost bases of investments in associated entities to be reduced last
245-190 How a reduction of the relevant cost bases of an asset is to be effected
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Operative provision relating to unapplied total net forgiven amount
245-195 No further consequences if there is any remaining unapplied total net forgiven amount
Subdivision 245-F—Special rules relating to partnerships
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Guide to Subdivision 245-F
245-200 What this Subdivision is about
245-201 Map of this Subdivision
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Operative provisions
245-205 This Subdivision does not apply to corporate limited partnerships
245-210 Subdivisions 245-A to 245-E to apply to partnerships
245-215 Unapplied total net forgiven amount of a partnership to be transferred to partners
Subdivision 245-G—Special rules affecting related companies
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Guide to Subdivision 245-G
245-220 What this Subdivision is about
245-221 Map of this Subdivision
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Operative provisions
245-225 Application of Subdivision
245-230 If any non-debtor companies in a group of related companies have deductible revenue losses
245-235 If any non-debtor companies in a group of related companies have deductible net capital losses
245-240 If neither section 245-230 nor 245-235 applies
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Subdivision 245-H—General
245-245 Definitions
245-250 Companies under common ownership
245-255 Controller of company
245-260 Time of incurring debt
245-265 Keeping and retention of records
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Schedule 2D—Tax exempt entities that become taxable [see Note 2]
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Division 57—Tax exempt entities that become taxable
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Guide to Division 57
57-1 What this Division is about
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Subdivision 57-A—Key concepts
57-5 Entities to which this Division applies
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Subdivision 57-B—Predecessors of the transition taxpayer
57-10 Activities of transition taxpayer’s predecessor attributed to transition taxpayer
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Subdivision 57-C—Time when income derived
57-15 Time when income derived
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Subdivision 57-D—Time when losses and outgoings incurred
57-20 Time when losses and outgoings incurred
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Subdivision 57-E—Assets and liabilities
57-25 Deemed disposal and re-acquisition of assets
57-30 Deemed cessation and re-assumption of liabilities
57-35 Interpretation
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Subdivision 57-F—Superannuation deductions
57-40 Contributions under defined benefit superannuation schemes
57-45 Deduction for surplus to meet defined benefit superannuation scheme liabilities
57-50 Contributions generally
57-52 Section 57-50 does not apply if there is a surplus at transition time
57-55 Deductions reduced under both sections 57-40 and 57-50
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Subdivision 57-G—Denial of certain deductions
57-60 Effect of pre-transition time accrued leave entitlements
57-65 Treatment of bad debts
57-70 Treatment of superannuation lump sums and employment termination payments
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Subdivision 57-H—Domestic losses
57-75 Domestic losses
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Subdivision 57-J—Capital allowances and certain other deductions
57-85 What are the modified deduction rules and corresponding deduction provisions?
57-90 Post-transition deductions—assume that the transition taxpayer had never been exempt
57-95 Amount of deduction not allowable for transition year
57-100 No elections etc. before transition time
57-105 Special rules for mining and quarrying
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Subdivision 57-K—Balancing adjustments
57-110 Apportionment of balancing adjustments
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Subdivision 57-L—Trading stock
57-115 Modification of trading stock provisions
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Subdivision 57-M—Imputation
57-120 Cancellation of franking surplus, credit or debit
57-125 Subsidiary
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Subdivision 57-N—Division not applicable in respect of certain plant
57-130 Plant or depreciating assets covered by Subdivision 58-B of the Income Tax Assessment Act 1997
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Schedule 2E—Leases of luxury cars [see Note 2]
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Division 42A—Leases of luxury cars
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Guide to Division 42A
42A-1 What this Division is about
Subdivision 42A-A—Notional sale of car, and notional loan, to lessee
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Guide to Subdivision 42A-A
42A-5 What this Subdivision is about
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Operative provisions
42A-10 Application of this Division
42A-15 Notional sale of car by lessor and notional acquisition of car by lessee
42A-20 Consideration for notional sale, cost of notional acquisition, and depreciated value, of car
42A-25 Notional loan by lessor to lessee
Subdivision 42A-B—Amounts to be included in lessor’s assessable income
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Guide to Subdivision 42A-B
42A-30 What this Subdivision is about
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Operative provisions
42A-35 Amounts to be included in lessor’s assessable income
42A-40 Treatment of lease payments
Subdivision 42A-C—Deductions allowable to lessee
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Guide to Subdivision 42A-C
42A-45 What this Subdivision is about
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Operative provisions
42A-50 Extent to which deductions are allowable to lessee
42A-55 Lease payments not to be allowable deductions
Subdivision 42A-D—Adjustments if total amount assessed to lessor differs from amount of finance charge
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Guide to Subdivision 42A-D
42A-60 What this Subdivision is about
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Operative provisions
42A-65 Adjustments for lessor
42A-70 Adjustments for lessee
Subdivision 42A-E—What happens when the lease expires
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Guide to Subdivision 42A-E
42A-75 What this Subdivision is about
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Operative provisions
42A-80 What happens if the lease term is extended or the lease is renewed
42A-85 What happens if an amount is paid by or on behalf of the lessee to acquire the car
42A-90 What happens if the lessee ceases to have the right to use the car
Subdivision 42A-F—What happens if the lease is terminated before the end of the lease term
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Guide to Subdivision 42A-F
42A-95 What this Subdivision is about
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Operative provisions
42A-100 What happens if an amount is paid by or on behalf of the lessee to acquire the car
42A-105 What happens if the lessee ceases to have the right to use the car
Subdivision 42A-G—Interpretation
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Guide to Subdivision 42A-G
42A-110 What this Subdivision is about
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Operative provisions
42A-115 General definitions
42A-120 Luxury car
42A-125 Consecutive short-term hiring agreements
42A-130 Finance charge
42A-135 Lease payment periods
42A-140 Accrual periods and accrual amounts
42A-145 Outstanding notional loan principal
42A-150 Implicit interest rate
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Schedule 2F—Trust losses and other deductions
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Division 265—Overview of Schedule
265-5 What this Schedule is about
265-10 Diagram giving overview of Schedule
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Division 266—Income tax consequences for fixed trusts of abnormal trading or change in ownership
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Subdivision 266-A—Overview of this Division
266-5 What this Division is about
266-10 Diagram giving overview of this Division
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Subdivision 266-B—Effect of change in ownership of fixed trust
266-15 What this Subdivision is about
266-20 Diagram giving overview of this Subdivision
266-25 Fixed trust may be denied tax loss deduction
266-30 Fixed trust may be required to work out its net income and tax loss in a special way
266-35 Fixed trust may be denied debt deduction
266-40 The trust must pass 50% stake test
266-45 The trust must meet non-fixed trust stake test
266-50 Deducting part of a tax loss
266-55 Information about non-fixed trusts with interests in fixed trust
266-60 Notices where requirements of section 266-55 are met
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Subdivision 266-C—Effect of change in ownership of unlisted widely held trust
266-65 What this Subdivision is about
266-70 Diagram giving overview of this Subdivision
266-75 Unlisted widely held trust may be denied tax loss deduction
266-80 Unlisted widely held trust may be required to work out its net income and tax loss in a special way
266-85 Unlisted widely held trust may be denied debt deduction
266-90 If abnormal trading or end of income year, trust must pass the 50% stake test
266-95 Deducting part of a tax loss
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Subdivision 266-D—Effect of abnormal trading on listed widely held trust
266-100 What this Subdivision is about
266-105 Diagram giving overview of this Subdivision
266-110 Listed widely held trust may be denied tax loss deduction
266-115 Listed widely held trust may be required to work out its net income and tax loss in a special way
266-120 Listed widely held trust may be denied debt deduction
266-125 There must be no abnormal trading (subject to 50% stake or same business exceptions)
266-130 Deducting part of a tax loss
266-135 Listed widely held unit trust may be denied tax loss deduction otherwise allowable
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Subdivision 266-E—Effect of abnormal trading on unlisted very widely held trust or wholesale widely held trust
266-140 What this Subdivision is about
266-145 Diagram giving overview of this Subdivision
266-150 Unlisted very widely held trust or wholesale widely held trust may be denied tax loss deduction
266-155 Unlisted very widely held trust or wholesale widely held trust may be required to work out its net income and tax loss in a special way
266-160 Unlisted very widely held trust or wholesale widely held trust may be denied debt deduction
266-165 There must be no abnormal trading (subject to 50% stake exception)
266-170 Deducting part of a tax loss
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Subdivision 266-F—Information about family trusts with interests in other trusts
266-175 What this Subdivision is about
266-180 Information about family trusts with interests in other trusts
266-185 Notices where requirements of section 266-180 are met
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Division 267—Income tax consequences for non-fixed trusts of change in ownership or control
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Subdivision 267-A—Overview of this Division
267-5 What this Division is about
267-10 Diagram giving overview of this Division
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Subdivision 267-B—Deducting tax losses, and certain amounts in respect of debts, from earlier years
267-15 What this Subdivision is about
267-20 Non-fixed trust may be denied tax loss deduction
267-25 Non-fixed trust may be denied debt deduction
267-30 If certain distributions are made, the trust must pass the pattern of distributions test
267-35 The trust must not have previously failed to meet the condition in subsection 267-30(2)
267-40 If there are individuals with more than a 50% stake in income or capital, more than a 50% stake in income or capital must be maintained
267-45 Group must not begin to control the trust
267-50 Deducting part of a tax loss
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Subdivision 267-C—Current year net income and tax loss, and certain debts incurred in current year
267-55 What this Subdivision is about
267-60 Trust may be required to work out its net income and tax loss in a special way
267-65 Non-fixed trust may be denied debt deduction
267-70 If there are individuals with more than a 50% stake in income or capital, more than a 50% stake in income or capital must be maintained
267-75 Group must not begin to control trust
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Subdivision 267-D—Information about family trusts with interests in other trusts
267-80 What this Subdivision is about
267-85 Information about family trusts with interests in other trusts
267-90 Notices where requirements of section 267-85 are met
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Division 268—How to work out a trust’s net income and tax loss for the income year
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Subdivision 268-A—Overview of Division
268-5 What this Division is about
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Subdivision 268-B—Dividing the income year into periods
268-10 Income year of fixed trust to be divided into periods—first case
268-15 Income year of fixed trust to be divided into periods—second case
268-20 Income year of widely held unit trust to be divided into periods
268-25 Income year of non-fixed trust to be divided into periods
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Subdivision 268-C—Other steps in working out the net income and tax loss
268-30 Calculate the notional loss or net income for each period
268-35 How to attribute deductions to periods
268-40 How to attribute assessable income to periods
268-45 How to calculate the trust’s net income for the income year
268-60 How to work out the trust’s section 36-10 tax loss for the income year
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Subdivision 268-D—Rules that supplement Subdivision 268-C if the trust is in partnership
268-70 How to calculate the trust’s notional loss or net income for a period when the trust was a partner
268-75 How to calculate the trust’s share of a partnership’s notional loss or notional net income for a period if both entities have the same income year
268-80 How to calculate the trust’s share of a partnership’s notional loss or notional net income for a period if the entities have different income years
268-85 Trust’s full year deductions include a share of partnership’s full year deductions
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Division 269—Concepts and tests applied in Divisions 266 and 267
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Subdivision 269-A—Overview of Division
269-5 What this Division is about
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Subdivision 269-B—Abnormal trading
269-10 Trading
269-15 Abnormal trading—general
269-20 Abnormal trading—suspected acquisition or merger
269-25 Abnormal trading—5% of units in a single transaction
269-30 Abnormal trading—suspected 5% of units in a series of transactions
269-35 Abnormal trading—20% of units traded, issued or redeemed over 60 day period
269-40 Abnormal trading—50% stake not maintained
269-45 Time at which trustee to have knowledge or suspicion
269-47 Abnormal trading where holding trust
269-49 No abnormal trading where proportionate issue of units
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Subdivision 269-C—Passing the 50% stake test etc.
269-50 More than a 50% stake in income or capital
269-55 Passing the 50% stake test
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Subdivision 269-D—Pattern of distributions test
269-60 Pattern of distributions test
269-65 Test year distribution of income or capital
269-70 When individual receives different percentages
269-75 Incomplete distributions
269-80 Where individual’s death or breakdown of marriage or relationship
269-85 Arrangements to pass pattern of distributions test
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Subdivision 269-E—Control a non-fixed trust
269-95 Control a non-fixed trust
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Subdivision 269-F—Same business test
269-100 Passing the same business test
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Division 270—Schemes to take advantage of deductions
270-5 What this Division is about
270-10 Schemes to take advantage of deductions
270-15 Tax consequences of schemes
270-20 Benefit
270-25 Outsider to trust
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Division 271—Family trust distribution tax
271-5 What this Division is about
271-10 Family trust distribution tax
271-15 Tax liability where family trust makes distribution etc. outside family group
271-20 Tax liability where interposed trust makes distribution etc. outside family group
271-25 Tax liability where interposed partnership makes distribution etc. outside family group
271-30 Tax liability where interposed company makes distribution outside family group
271-35 Avoidance of double-counting
271-40 Exclusion of directors from liability to pay tax
271-45 Requirements for section 271-55 notice to family trust
271-50 Requirements for section 271-55 notice to interposed entity
271-55 Notice requiring information about non-resident distributions etc.
271-60 Tax liability where non-resident family trust’s tax unpaid
271-65 Tax liability where non-resident interposed entity’s tax unpaid
271-70 Reduction of liability where tax paid
271-75 Payment of family trust distribution tax
271-80 Late payment of family trust distribution tax
271-90 Notice of liability
271-95 Request for notice of liability
271-100 Evidentiary effect of notice of liability
271-105 Amounts subject to family trust distribution tax not assessable
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Division 272—Interpretation
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Subdivision 272-A—Fixed entitlement to share of income or capital
272-5 Fixed entitlement to share of income or capital of a trust
272-10 Fixed entitlement to share of income or capital of a company
272-15 Fixed entitlement to share of income or capital of a partnership
272-20 Fixed entitlement to share of income or capital held indirectly
272-25 Special cases of fixed entitlements held directly or indirectly
272-30 Additional special cases of fixed entitlements held directly or indirectly
272-35 Arrangements to pass fixed entitlement tests
272-40 Continued holding of fixed entitlement where death occurs
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Subdivision 272-B—Distribution of income or capital
272-45 Trust distribution to beneficiary
272-50 Company distribution to shareholder
272-55 Partnership distribution to partner
272-60 Other distributions of income and capital
272-63 Distribute indirectly
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Subdivision 272-C—Fixed trusts and non-fixed trusts
272-65 Fixed trust
272-70 Non-fixed trust
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Subdivision 272-D—Family trust etc.
272-75 Family trust
272-80 Family trust election
272-85 Interposed entity election
272-87 Passing the family control test
272-90 Family group
272-95 Family
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Subdivision 272-E—Excepted trust
272-100 Excepted trust
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Subdivision 272-F—Widely held unit trust
272-105 Widely held unit trust
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Subdivision 272-G—Unlisted widely held trust and listed widely held trust
272-110 Unlisted widely held trust
272-115 Listed widely held trust
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Subdivision 272-H—Unlisted very widely held trust
272-120 Unlisted very widely held trust
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Subdivision 272-I—Wholesale widely held trust
272-125 Wholesale widely held trust
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Subdivision 272-J—Kind of trust can be affected by ownership by higher level trust
272-127 Kind of trust can be affected by ownership by higher level trust
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Subdivision 272-K—Trusts beginning or ceasing to exist
272-130 Trusts beginning or ceasing to exist
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Subdivision 272-L—Listed public company
272-135 Listed public company
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Subdivision 272-M—Various definitions
272-140 Definitions
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Schedule 2G—Farm management deposits [see Note 2]
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Division 393—Farm management deposits
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Guide to Division 393
393-1 What this Division is about
Subdivision 393-A—Tax consequences of farm management deposits
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Guide to Subdivision
393-5 What this Subdivision is about
393-7 Definitions of terms
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Operative provisions
393-10 Deduction for making farm management deposit
393-15 Assessability on repayment of deposit
Subdivision 393-B—Farm management deposit and related terms
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Guide to Subdivision 393-B
393-20 What this Subdivision is about
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Operative provisions
393-25 Various definitions
393-30 Requirements for a farm management deposit
393-35 Requirements whose contravention causes a loss of farm management deposit status
393-37 Withdrawal of deposit within first 12 months
393-40 Other requirements of agreement
393-45 Contraventions that deprive a deposit of its status as a farm management deposit
393-50 Making and repaying etc. deposits
393-52 Certain entities taken to be financial institutions for pre-1 July 2003 deposits and transfers
Subdivision 393-C—How to work out your taxable primary production income and your taxable non-primary production income
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Guide to Subdivision 393-C
393-55 What this Subdivision is about
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Operative provisions
393-60 Working out your taxable primary production income
393-65 Working out your taxable non-primary production income
Subdivision 393-D—Special rules relating to financial claims scheme for account-holders with insolvent ADIs
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Guide to Subdivision 393-D
393-75 What this Subdivision is about
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Operative provisions
393-80 Farm management deposits arising from farm management deposits with ADIs subject to financial claims scheme
393-85 Repayment if owner of farm management deposit with insolvent ADI dies, is bankrupt or ceases to be a primary producer
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Schedule 2H—Demutualisation of mutual entities other than insurance companies and health insurers [see Note 2]
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Division 326—Demutualisation
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Guide to Division 326
326-1 What this Division is about
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Subdivision 326-A—Application, key concepts and related expressions
326-5 Application
326-10 Mutual entity and demutualisation
326-15 Provisions relating to listing on a stock exchange
326-20 Demutualisation resolutions etc.
326-25 Demutualisation shares
326-30 Existing members and new members
326-35 Pre-CGT members and post-CGT members
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Subdivision 326-B—How demutualisation is to be effected
326-40 Methods of demutualisation
326-45 Direct method
326-50 Holding company method
326-52 Combined direct and holding company method
326-55 Distributing trust method
326-60 Continuity of beneficial interest test
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Subdivision 326-C—CGT consequences of extinguishment of membership rights in mutual entity
326-65 Extinguishment of membership rights
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Subdivision 326-D—CGT consequences of disposal of demutualisation shares or an interest in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a listed public company
326-70 Application of Subdivision
326-75 Capital losses made from certain disposals to be disregarded
326-80 Disposal by pre-CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326-85 Disposal by pre-CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326-90 Disposal by pre-CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity
326-95 Disposal by post-CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share
326-100 Disposal by pre-CGT member of a demutualisation original share or a non-demutualisation bonus share, or an interest in such a share, before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326-105 Disposal by pre-CGT member of a demutualisation original share or a non-demutualisation bonus share, or an interest in such a share, on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326-110 Disposal by pre-CGT member of a demutualisation original share or a non-demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity
326-115 Disposal by post-CGT member of a demutualisation original share or a non-demutualisation bonus share or an interest in such a share
326-120 Adjusted market value
326-125 Undeducted membership costs
326-130 Adjusted first day trading price of demutualisation shares
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Subdivision 326-E—CGT consequences of disposal of demutualisation shares or interests in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a company that is not a listed public company
326-135 Application of Subdivision
326-140 Disposal by pre-CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where a member did not acquire membership rights by disposing of membership rights in another mutual entity
326-145 Disposal by pre-CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity
326-150 Disposal by post-CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share
326-155 Disposal by pre-CGT member of a demutualisation original share or a non-demutualisation bonus share, or an interest in such a share, where member did not acquire membership rights by disposing of membership rights in another mutual entity
326-160 Disposal by pre-CGT member of a demutualisation original share or a non-demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity
326-165 Disposal by post-CGT member of a demutualisation original share or a non-demutualisation bonus share, or an interest in such a share
326-170 Various adjusted market values
326-175 Undeducted membership costs
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Subdivision 326-F—Variation of amount taken to be paid for shares or an interest in shares by a member of a mutual entity who made a capital gain or capital loss from disposal of membership rights in another mutual entity
326-180 Amount taken to be paid for acquisition of shares or interest by member to be increased by capital gain or reduced by capital loss
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Subdivision 326-G—CGT consequences of disposal of rights or interests resulting from extinguishment of membership rights
326-185 Disposal of right to receive shares in demutualised entity
326-190 Extinguishment of right to shares in demutualised entity by the issue of the shares
326-195 Disposal of right to receive shares in holding company
326-200 Disposal of interest in trust that holds shares in demutualised entity
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Subdivision 326-H—CGT consequences of transfer of ordinary shares
326-205 Transfer of share or distribution of proceeds of sale of share not to have any CGT consequences
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Subdivision 326-I—CGT consequences of disposal of demutualisation shares or an interest in such shares by a trustee on behalf of a member
326-210 Disposal by a trustee
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Subdivision 326-J—CGT consequences of change in rights attaching to special shares or replacement of special shares by ordinary shares
326-215 Change of rights to, and replacement of, special shares
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Subdivision 326-K—CGT consequences of disposal of shares or an interest in shares acquired under a roll-over provision
326-220 Disposal of shares or interest in shares
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Subdivision 326-L—CGT consequences of payment to member of demutualised entity out of accumulated surplus of the entity
326-225 Payment out of assets of demutualised entity that is not included in assessable income is taken not to be a dividend
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Subdivision 326-M—Indexation
326-230 Indexing of amounts
326-235 Indexation factor
326-240 Index number
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Subdivision 326-N—Non-CGT consequences of issue of demutualisation shares
326-245 General taxation consequences of issue of demutualisation shares
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Schedule 2J—General insurance
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Division 321—General insurance companies
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Guide to Division 321
321-1 What this Division is about
Subdivision 321-A—Provision for or payment of claims
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Guide to Subdivision 321-A
321-5 What this Subdivision is about
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Operative provisions
321-10 Amount to be included in assessable income for outstanding claims liability
321-15 Deduction for outstanding claims liability
321-20 How value of outstanding claims liability is worked out
321-25 Deduction for claims paid during year of income
321-30 Application: insurance business other than reinsurance business
321-35 Application: reinsurance business
Subdivision 321-B—Premium income
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Guide to Subdivision 321-B
321-40 What this Subdivision is about
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Operative provisions
321-45 Assessable income to include gross premiums
321-50 Amount to be included in assessable income for reduction in value of unearned premium reserve
321-55 Deduction for increase in value of unearned premium reserve
321-60 How value of unearned premium reserve is worked out
321-65 Application
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Division 323—Companies that are not required by law to insure in respect of workers’ compensation liabilities
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Guide to Division 323
323-1 What this Division is about
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Operative provisions
323-5 Amount to be included in assessable income for outstanding claims liability
323-10 Deduction for outstanding claims liability
323-15 How value of outstanding claims liability is worked out
323-20 Deductions for claims paid during year of income
323-25 Application
Schedule 3—Approved stock exchanges for the purposes of Part XI
Schedule 4—Business activities that are not eligible activities for the purposes of Division 3 of Part XI
Schedule 5—Approved international sectoral classification systems for purposes of Part XI
Volume 6
Volume 7
